8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2005

Chemical Financial Corporation
(Exact Name of Registrant as
Specified in its Charter)

Michigan
(State or Other Jurisdiction
of Incorporation) 000-08185
(Commission
File Number) 38-2022454
(IRS Employer
Identification No.)

333 E. Main Street
Midland, Michigan
(Address of Principal Executive Offices)
48640
(Zip Code)

Registrant's telephone number, including area code:  (989) 839-5350

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

                    On July 25, 2005, Chemical Financial Corporation issued the press release attached as Exhibit 99.1 to this Form 8-K, which is here incorporated by reference. This Report and the Exhibit are furnished to, and not filed with, the Commission.

Item 9.01	Financial Statements and Exhibits.
	(c)	Exhibits:
		99.1	Press Release dated July 25, 2005. This Exhibit is furnished to, and not filed with, the Commission.

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SIGNATURES

                    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:	July 25, 2005	CHEMICAL FINANCIAL CORPORATION (Registrant)
		/s/ Lori A. Gwizdala
		Lori A. Gwizdala      Executive Vice President, Chief Financial      Officer and Treasurer

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EXHIBIT INDEX

Exhibit Number	Document
99.1	Chemical Financial Corporation Press Release dated July 25, 2005. This Exhibit is furnished to, and not filed with, the Commission.

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EX-99.1

EXHIBIT 99.1

PRESS RELEASE

NASDAQ:	CHFC
FOR RELEASE:	IMMEDIATE
DATE:	July 25, 2005
CONTACT:	David B. Ramaker President & Chief Executive Officer Chemical Financial Corporation 989/839-5269
	Lori A. Gwizdala Executive Vice President & Chief Financial Officer Chemical Financial Corporation 989/839-5358

CHEMICAL FINANCIAL CORPORATION
ANNOUNCES
SECOND QUARTER 2005 OPERATING RESULTS

          Midland, Michigan - Chemical Financial Corporation's Board of Directors today announced 2005 second quarter net income of $13.22 million, or $0.53 per diluted share, down $0.65 million, or $0.02 per diluted share, as compared with net income of $13.87 million, or $0.55 per diluted share, in the second quarter of 2004.

          Net income was $26.72 million or $1.06 per share in the first six months of 2005, compared to net income of $27.99 million, or $1.11 per share in the first six months of 2004. This represented a decrease of 4.5% in both net income and earnings per share for the first six months of 2005, compared to the prior year. The returns on average assets and average equity during the first six months of 2005 were 1.42% and 11.0%, respectively, as compared to 1.45% and 12.1%, respectively, for the first six months of 2004.

          Second Quarter Operating Results

          Net income and earnings per share in the second quarter of 2005 decreased 4.7% and 3.6%, respectively, from the second quarter of 2004. The decreases in net income and earnings per share were attributable to lower net interest income, a modest increase in the provision for

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loan losses and slightly lower noninterest income. These decreases were partially offset by a slight decrease in operating expenses.

          Net interest income of $35.70 million in the second quarter of 2005 was $0.71 million, or 2.0%, lower than the second quarter of 2004. The decrease in net interest income was attributable to a decrease in average interest-earning assets that was partially offset by a modest increase in the net interest margin.

          Average interest-earning assets were $3.53 billion in the second quarter of 2005, down $106 million, or 2.9% from the second quarter of 2004. The decrease in average interest-earning assets between the second quarter of 2005 and the second quarter of 2004 was primarily the result of a decline in deposits, including brokered deposits. Average loans were $2.60 billion in the second quarter of 2005, up $45 million, or 1.8% from average loans in the second quarter of 2004.

          The net interest margin was 4.10% in the second quarter of 2005, compared to 4.07% in the second quarter of 2004. The modest increase in net interest margin was primarily attributable to a positive change in the mix of interest-earning assets and liabilities in the second quarter of 2005, as compared to the prior year quarter. In the second quarter of 2005, the average yield on interest-earning assets was 5.62%, compared to the average cost of interest-bearing liabilities of 1.98%. The average yield on interest-earning assets increased 42 basis points in the second quarter of 2005, as compared to the prior year quarter, while the average cost of interest-bearing liabilities increased 54 basis points during the same period. The increase in the average yield on interest-earning assets was primarily driven by the increase in the interest yield on variable rate commercial loans and home equity lines of credit tied to prime. The increase in the average cost of interest-bearin g liabilities continued to result from rising deposit interest rates, which have been driven by the overall rise in short-term market interest rates and increased competition for deposits.

          The provision for loan losses in the second quarter of 2005 was $0.73 million, the same as in the first quarter of 2005, although slightly higher than the $0.66 million recorded in the second quarter of 2004. Net loan charge-offs were $1.079 million in the second quarter of 2005,

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compared to $0.725 million in the first quarter of 2005 and $0.60 million in the second quarter of 2004.

          Total noninterest income was $9.75 million in the second quarter of 2005, down $0.25 million or 2.5% from the second quarter of 2004. The Corporation experienced slight increases in a number of noninterest income categories, including trust and investment management services revenue, service charges on deposit accounts, and ATM and debit card revenue, although these increases were more than offset by a decrease in investment securities gains and a continued reduction in mortgage banking revenue. Mortgage banking revenue of $0.48 million in the second quarter of 2005 was approximately the same as the first quarter of 2005, although down $0.60 million, or 55%, from the second quarter of 2004.

          Operating expenses were $24.76 million in the second quarter of 2005, down $0.16 million, or 0.6%, from the second quarter of 2004, and down $0.22 million, or 0.9%, from the first quarter of 2005.

          The returns on average assets and average equity during the second quarter of 2005 were 1.41% and 10.8%, respectively, as compared to 1.44% and 11.9%, respectively, for the second quarter of 2004.

          Balance Sheet and Capital Position

          Total assets of the Corporation at June 30, 2005 were $3.722 billion, down $42 million or 1.1% from the $3.764 billion in total assets reported at December 31, 2004. Total deposits at June 30, 2005 were $2.824 billion, down $39 million, or 1.4% from the total deposits of $2.863 billion at December 31, 2004.

          Total loans were $2.654 billion at June 30, 2005, up $68 million, or 2.6% from total loans of $2.586 billion at December 31, 2004. The Corporation achieved a $39.6 million or 3.4% increase in commercial and commercial real estate loans, an $8.2 million or 6.8% increase in real estate construction loans, a $5.6 million or 0.7% increase in real estate residential loans and a $15.0 million or 2.8% increase in consumer loans during the six months ended June 30, 2005.

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          As of June 30, 2005, the allowance for loan losses was $33.82 million or 1.27% of total loans, while nonperforming loans were $16.1 million or 0.61% of total loans. Net loan losses as a percentage of average total loans were 0.14% on an annualized basis during the six months ended June 30, 2005; slightly higher than the percentage for the twelve months ended December 31, 2004 of 0.11%. Nonperforming assets of $21.9 million at June 30, 2005, were up $5.06 million or 30% from December 31, 2004. The increase in nonperforming assets was largely attributable to two commercial real estate loans totaling $3.7 million. The Corporation does not expect any loss on these credits based on the collateral evaluation of these loans as of June 30, 2005. Nonperforming assets as a percentage of total assets were 0.59% as of June 30, 2005 compared to 0.45% as of December 31, 2004.

          Shareholders' equity at June 30, 2005 was $495 million or $19.68 per share and represented 13.3% of total assets. The Corporation's total risk-based capital and tangible equity to asset ratios were 17.7% and 11.6%, respectively, as of June 30, 2005.

          Chemical Financial Corporation is the fourth largest bank holding company headquartered in Michigan. The Company's three subsidiary banks operate banking offices spread over 32 counties in the lower peninsula of Michigan.

          Chemical Financial Corporation common stock trades on The Nasdaq Stock Market under the symbol CHFC and is one of the issues comprising the Nasdaq Financial 100 index.

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Forward Looking Statements

This press release contains forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates and banking laws and regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhanceme nts from mergers and acquisitions and bank consolidations may not be fully realized at all or within the expected time frames. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. Chemical undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

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Chemical Financial Corporation Announces Second Quarter Operating Results

Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation and Subsidiaries

(In thousands)	June 30, 2005			December 31, 2004		June 30, 2004
Assets:
Cash and demand deposits due from banks	$	105,261		$	106,565	$	114,743
Federal funds sold		5,000			34,500		60,700
Interest-bearing deposits with unaffiliated banks		5,804			5,869		9,931
Investment securities - available for sale		679,646			716,757		768,228
Investment securities - held to maturity		139,934			176,517		156,362
Total Investment Securities		819,580			893,274		924,590
Commercial loans		491,919			468,970		466,666
Real estate construction loans		129,144			120,900		132,956
Real estate commercial loans		714,393			697,779		655,053
Real estate residential loans		766,447			760,834		781,062
Consumer loans		552,100			537,102		553,237
Total Loans		2,654,003			2,585,585		2,588,974
Less: Allowance for loan losses		33,822			34,166		33,552
Net Loans		2,620,181			2,551,419		2,555,422
Premises and equipment		46,165			47,577		48,077
Intangible assets		73,031			74,421		75,683
Other assets		47,078			50,500		52,593
Total Assets	$	3,722,100		$	3,764,125	$	3,841,739
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits	$	531,667		$	555,287	$	551,087
Interest-bearing deposits		2,292,512			2,308,186		2,408,162
Total Deposits		2,824,179			2,863,473		2,959,249
Other borrowings - short term		106,781			101,834		95,371
Interest payable and other liabilities		27,526			28,986		33,569
FHLB borrowings		268,959			284,996		285,191
Total Liabilities		3,227,445			3,279,289		3,373,380
Shareholders' Equity:
Common stock, $1 par value		25,138			25,169		23,944
Surplus		377,854			378,694		333,475
Retained earnings		93,650			80,266		110,054
Accumulated other comprehensive income/(loss)		(1,987	)		707		886
Total Shareholders' Equity		494,655			484,836		468,359
Total Liabilities and Shareholders' Equity	$	3,722,100		$	3,764,125	$	3,841,739

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Chemical Financial Corporation Announces Second Quarter Operating Results

Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries

	Quarter Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2005		2004		2005		2004
Interest Income:
Interest and fees on loans	$	40,221	$	37,481	$	79,032	$	74,959
Interest on investment securities:
Taxable		7,728		8,276		15,509		17,152
Nontaxable		522		526		1,012		1,091
Total Interest on Investment Securities		8,250		8,802		16,521		18,243
Interest on federal funds sold		251		202		904		403
Interest on deposits with unaffiliated banks		290		98		515		163
Total Interest Income		49,012		46,583		96,972		93,768
Interest Expense:
Interest on deposits		10,478		7,523		19,671		15,214
Interest on other borrowings - short term		445		103		793		199
Interest on FHLB borrowings		2,391		2,548		4,863		5,124
Total Interest Expense		13,314		10,174		25,327		20,537
Net Interest Income		35,698		36,409		71,645		73,231
Provision for loan losses		730		661		1,460		1,407
Net Interest Income after
Provision for Loan Losses		34,968		35,748		70,185		71,824
Noninterest Income:
Service charges on deposit accounts		5,014		4,757		9,730		9,311
Trust & investment management services revenue		2,055		1,871		4,072		3,780
Other charges and fees for customer services		1,908		1,806		3,596		3,354
Mortgage banking revenue		481		1,080		970		1,860
Investment securities gains		82		267		1,171		1,250
Other		213		224		394		412
Total Noninterest Income		9,753		10,005		19,933		19,967
Operating Expenses:
Salaries and employee benefits		14,658		14,693		29,238		29,494
Occupancy and equipment		4,517		4,440		9,273		9,284
Other		5,588		5,787		11,235		11,302
Total Operating Expenses		24,763		24,920		49,746		50,080
Income Before Income Taxes		19,958		20,833		40,372		41,711
Federal income taxes		6,743		6,967		13,653		13,726
Net Income	$	13,215	$	13,866	$	26,719	$	27,985
Net income per share:
Basic	$	0.53	$	0.55	$	1.06	$	1.11
Diluted		0.53		0.55		1.06		1.11
Cash dividends per share	$	0.265	$	0.252	$	0.530	$	0.505
Average shares outstanding:
Basic		25,152		25,131		25,167		25,109
Diluted		25,200		25,209		25,224		25,198

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Chemical Financial Corporation Announces Second Quarter Operating Results

Financial Summary (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)

	Quarter Ended June 30,				Six Months Ended June 30,
	2005		2004		2005		2004
Average Balances
Total assets	$	3,760,798	$	3,876,665	$	3,791,253	$	3,877,963
Total interest-earning assets		3,527,087		3,632,968		3,556,211		3,628,558
Total loans		2,604,615		2,559,608		2,590,054		2,538,344
Total deposits		2,892,240		3,001,871		2,910,691		3,009,285
Total shareholders' equity		490,813		469,366		489,194		466,317

	Quarter Ended June 30,				Six Months Ended June 30,
	2005		2004		2005		2004
Key Ratios (annualized where applicable)
Net interest margin		4.10%		4.07%		4.11%		4.09%
Efficiency ratio		54.0%		53.3%		54.4%		53.6%
Return on average assets		1.41%		1.44%		1.42%		1.45%
Return on average shareholders' equity		10.8%		11.9%		11.0%		12.1%
Average shareholders' equity as a
percent of average assets		13.1%		12.1%		12.9%		12.0%
Tangible shareholders' equity as a
percent of total assets						11.6%		10.4%
Total risk-based capital ratio						17.7%		16.9%

	June 30, 2005		March 31, 2005		December 31, 2004		September 30, 2004		June 30, 2004
Credit Quality Statistics
Nonaccrual loans	$	8,639	$	7,823	$	8,397	$	5,787	$	5,413
Loans 90 or more days past due
and still accruing		7,426		2,914		1,653		5,914		5,488
Total nonperforming loans		16,065		10,737		10,050		11,701		10,901
Repossessed assets acquired (RAA)		5,848		6,544		6,799		6,924		7,344
Total nonperforming assets		21,913		17,281		16,849		18,625		18,245
Net loan charge offs - year-to-date		1,804		725		2,832		1,658		1,034
Allowance for loan losses as a
percent of total loans		1.27%		1.33%		1.32%		1.29%		1.30%
Allowance for loan losses as a
percent of nonperforming loans		211%		318%		340%		288%		308%
Nonperforming loans as a
percent of total loans		0.61%		0.42%		0.39%		0.45%		0.42%
Nonperforming assets as a
percent of total loans plus RAA		0.82%		0.67%		0.65%		0.71%		0.70%
Net loan charge-offs as a percent of
average loans - year-to-date (annualized)		0.14%		0.11%		0.11%		0.09%		0.08%

	June 30, 2005		March 31, 2005		December 31, 2004		September 30, 2004		June 30, 2004
Additional Data
Goodwill	$	63,293	$	63,293	$	63,293	$	63,293	$	63,293
Core deposits and other intangibles		6,797		7,324		7,931		8,572		9,138
Mortgage servicing rights (MSR),
net of MSR impairment reserve		2,941		3,111		3,197		3,441		3,252
MSR impairment reserve		-		-		-		-		443
Amortization of intangibles		793		800		948		931		1,079

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Chemical Financial Corporation Announces Second Quarter Operating Results

Selected Quarterly Information (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)

	2nd Qtr. 2005	1st Qtr. 2005	4th Qtr. 2004	3rd Qtr. 2004	2nd Qtr. 2004
Summary of Operations
Interest income	$49,012	$47,960	$48,164	$47,318	$46,583
Interest expense	13,314	12,013	10,914	10,165	10,174
Net interest income	35,698	35,947	37,250	37,153	36,409
Provision for loan losses	730	730	1,711	701	661
Net interest income after provision
for loan losses	34,968	35,217	35,539	36,452	35,748
Noninterest income	9,753	10,180	9,739	9,623	10,005
Noninterest expense	24,763	24,983	23,890	24,499	24,920
Income taxes	6,743	6,910	6,987	7,280	6,967
Net income	13,215	13,504	14,401	14,296	13,866
Per Common Share Data
Net income:
Basic	$0.53	$0.54	$0.57	$0.58	$0.55
Diluted	0.53	0.53	0.57	0.57	0.55
Cash dividends	0.265	0.265	0.252	0.252	0.252
Book value	19.68	19.32	19.26	19.04	18.63

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