EXHIBIT 99.1

For further information:
David B. Ramaker, CEO
Lori A. Gwizdala, CFO
989-839-5350

Chemical Financial Corporation Reports Second Quarter 2012 Results

MIDLAND, MI, July 23, 2012 -- -- Chemical Financial Corporation (NASDAQ:CHFC) today announced 2012 second quarter net income of $13.9 million, or $0.50 per diluted share, compared to 2012 first quarter net income of $12.4 million, or $0.45 per diluted share, and 2011 second quarter net income of $11.0 million, or $0.40 per diluted share.

"Chemical Financial's strong operating performance is translating into continued improved financial results. Second quarter 2012 earnings reflect positive growth in net interest income and noninterest income, coupled with a lower loan loss provision due to continued improvement in credit quality. In fact, our 2012 second quarter earnings of $0.50 per share were 25 percent higher than 2011 second quarter earnings per share, and represent the highest level of quarterly earnings per share Chemical Financial has reported since the fourth quarter of 2005" said David B. Ramaker, Chairman, Chief Executive Officer and President of the Corporation.

"Our financial strength is facilitating Chemical Financial's ability to execute on our long-term growth strategy. In May, we announced an agreement to acquire 21 branch offices from Independent Bank, which will bolster our footprint in northeast Michigan and provide entry into a new market in Battle Creek. Chemical Bank will assume approximately $420 million in customer deposits, acquire approximately $40 million of loans and recognize approximately $7 million of goodwill in this transaction. The acquisition, excluding $2.6 million of estimated transaction-related expenses, is anticipated to be accretive to earnings upon closing, which we anticipate will occur in the third quarter of 2012. We remain uniquely positioned among Michigan banks to continue our pattern of long-term growth both organically and via acquisition opportunities that we believe will arise as our state's banking industry consolidates," said Ramaker.

The increases in net income in the second quarter of 2012 over both the first quarter of 2012 and the second quarter of 2011 were largely attributable to increases in net interest income and noninterest income and a decrease in the provision for loan losses. Operating expenses in the second quarter of 2012 were lower than the first quarter of 2012, although higher than the second quarter of 2011.

The Corporation's return on average assets during the second quarter of 2012 was 1.04 percent, up from 0.92 percent in the first quarter of 2012 and 0.84 percent in the second quarter of 2011. The Corporation's return on average equity was 9.6 percent in the second quarter of 2012, up from 8.7 percent in the first quarter of 2012 and 7.8 percent in the second quarter of 2011.

Net interest income was $46.4 million in the second quarter of 2012, up $0.3 million, or 0.5 percent, from the first quarter of 2012 and up $1.2 million, or 2.5 percent, from the second quarter of 2011. The net interest margin (on a tax-equivalent basis) in the second quarter of 2012 was 3.80 percent, compared to 3.76 percent in the first quarter of 2012 and 3.78 percent in the second quarter of 2011.

The Corporation's net interest income in the second quarter of 2012, as compared to the first quarter of 2012, was positively impacted by an increase in average loans of $77 million, or 2.0 percent, that was offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the second quarter of 2012. The increase in net interest income of $1.2 million in the second quarter of 2012 over the second quarter of 2011 was primarily attributable to an increase in average loans of $194 million, or 5.2 percent, between these two quarters that was partially offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the twelve months ended June 30, 2012.

The provision for loan losses was $4.0 million in the second quarter of 2012, compared to $5.0 million in the first quarter of 2012 and $7.0 million in the second quarter of 2011. Net loan charge-offs were $5.1 million in the second quarter of 2012, compared to $5.5 million in the first quarter of 2012 and $6.9 million in the second quarter of 2011.

Noninterest income was $13.3 million in the second quarter of 2012, compared to $12.6 million in the first quarter of 2012 and $10.9 million in the second quarter of 2011. Noninterest income in the second quarter of 2012 included nonrecurring income of $0.6 million from the partial insurance recovery of a 2008 branch cash loss, while noninterest income in the first quarter of 2012 included nonrecurring income of $1.3 million attributable to a gain from the sale of the Corporation's merchant card servicing business. Excluding this nonrecurring income, noninterest income in the second quarter of 2012 was $1.4 million higher than the first quarter of 2012 and $1.8 million higher than the second quarter of 2011. The $1.4 million increase in noninterest income over the first quarter of 2012 was primarily attributable to an increase of $0.5 million in service charges and fees on deposit accounts and increases of approximately $0.3 million, each, in wealth management revenue, mortgage banking revenue and other charges and fees for services. The $1.8 million increase in noninterest income over the second quarter of 2011 was primarily attributable to an increase of $0.9 million in mortgage banking revenue and an increase of $0.4 million in service charges and fees on deposit accounts.

Operating expenses were $35.5 million in the second quarter of 2012, compared to $36.3 million in the first quarter of 2012 and $33.4 million in the second quarter of 2011. Operating expenses in the second quarter of 2012 included $0.5 million of acquisition-related expenses applicable to the pending acquisition of branches from Independent Bank, while operating expenses in the second quarter of 2011 included a reversal of a $1.2 million state tax accrual as a result of the elimination of a state tax contingent liability. Excluding the acquisition-related expenses and the

reversal of the state tax accrual, operating expenses in the second quarter of 2012 were $1.3 million lower than the first quarter of 2012, but were $0.4 million higher than the second quarter of 2011. The decline in operating expenses between the first and second quarters of 2012 was largely attributable to a $0.7 million reduction in credit-related operating expenses. The increase in operating expenses over the second quarter of 2011 was attributable to higher compensation costs that were partially offset by lower credit-related operating expenses, consulting expenses and outside process/service fee expenses. The Corporation's efficiency ratio was 58.3 percent in the second quarter of 2012, compared to 60.4 percent in the first quarter of 2012 and 58.2 percent in the second quarter of 2011.

Total assets were $5.35 billion at June 30, 2012, down from $5.45 billion at March 31, 2012 and up from $5.20 billion at June 30, 2011. The decrease in total assets during the second quarter of 2012 was largely attributable to a decrease in interest-bearing balances held at the Federal Reserve Bank (FRB). The Corporation continues to maintain significant amounts of funds at the FRB with $120 million in balances held at the FRB at June 30, 2012, compared to $348 million at March 31, 2012 and $265 million at June 30, 2011. The decline in funds at the FRB during the second quarter of 2012 was due to loan growth and a seasonal decrease in customer deposits.

Total loans were $3.96 billion at June 30, 2012, compared to $3.84 billion at March 31, 2012 and $3.75 billion at June 30, 2011. Total loans increased $119 million, or 3.1%, in the second quarter of 2012. This increase was largely driven by a consumer loan promotion during the quarter that resulted in an increase in the Corporation's consumer loan portfolio of $79 million, or 9.0%. The Corporation experienced growth in all loan categories, except real estate construction and land development, during the quarter. Total loans increased $214 million, or 5.7 percent, during the twelve months ended June 30, 2012, with commercial loans increasing $73 million, or 8.7 percent, real estate commercial loans increasing $54 million, or 5.1 percent, real estate residential loans increasing $47 million, or 5.7 percent, and consumer installment and home equity loans increasing $88 million, or 10.1 percent, while real estate construction and land development loans decreased $48 million, or 34 percent. The increases in loans during the three and twelve months ended June 30, 2012 were attributable to a combination of improving economic conditions and higher loan demand, as well as the Corporation increasing its market share. The average yield on the loan portfolio was 4.96 percent in the second quarter of 2012, compared to 5.10 percent in the first quarter of 2012 and 5.37 percent in the second quarter of 2011.

Investment securities were $893 million at June 30, 2012, compared to $867 million at March 31, 2012 and $802 million at June 30, 2011.

Total deposits were $4.38 billion at June 30, 2012, compared to $4.46 billion at March 31, 2012 and $4.25 billion at June 30, 2011. The Corporation experienced a decrease in total deposits of $78 million, or 1.7 percent, during the second quarter of 2012, primarily attributable to a seasonal decrease in deposits of municipal customers. Federal Home Loan Bank (FHLB) advances totaled $38.2 million at June 30, 2012, compared to $42.1 million at March 31, 2012 and $71.9 million at June 30, 2011. Brokered deposits totaled $84 million at June 30, 2012, compared to $94 million at March 31, 2012 and $110 million at June 30, 2011. The repricing of matured customer certificates of deposit and various interest-bearing deposit accounts resulted in

the Corporation's average cost of funds declining to 0.63 percent in the second quarter of 2012 from 0.67 percent in the first quarter of 2012 and 0.85 percent in the second quarter of 2011.

At June 30, 2012, the Corporation's tangible equity to assets ratio and total risk-based capital ratio were 9.0 percent and 13.6 percent, respectively, compared to 8.7 percent and 13.7 percent, respectively, at March 31, 2012 and 8.9 percent and 13.0 percent, respectively, at June 30, 2011. At June 30, 2012, the Corporation's book value was $21.42 per share, compared to $21.10 per share at March 31, 2012 and $20.78 per share at June 30, 2011.

The credit quality of the Corporation's loan portfolio continued to show further improvement during the second quarter of 2012. At June 30, 2012, the Corporation's nonperforming loans, consisting of nonaccrual loans, accruing loans past due 90 days or more as to principal or interest and nonperforming troubled debt restructurings, totaled $92.8 million, compared to $98.5 million at March 31, 2012 and $135.9 million at June 30, 2011, representing declines of 5.8 percent and 31.7 percent, respectively.

Other real estate and repossessed assets totaled $23.5 million at June 30, 2012, compared to $25.9 million at March 31, 2012 and $24.6 million at June 30, 2011.

At June 30, 2012, the allowance for loan losses of the originated portfolio was $84.5 million, or 2.40 percent of originated loans, compared to 2.54 percent at March 31, 2012 and 2.78 percent at June 30, 2011. The allowance for loan losses of the originated portfolio as a percentage of nonperforming loans was 91 percent at June 30, 2012, compared to 87 percent at March 31, 2012 and 66 percent at June 30, 2011. At June 30, 2012, nonperforming loans as a percentage of total loans were 2.34 percent, down from 2.56 percent at March 31, 2012 and 3.63 percent at June 30, 2011. The allowance for loan losses of the acquired portfolio was $2.2 million at both June 30, 2012 and March 31, 2012. At June 30, 2012, the Corporation's $447 million acquired loan portfolio was overall performing better than expected since the acquisition date.

Chemical Financial Corporation is the second-largest bank holding company headquartered and operating branch offices in Michigan. The Corporation operates through a single subsidiary bank, Chemical Bank, with 142 banking offices spread over 32 counties in the lower peninsula of Michigan. At June 30, 2012, the Corporation had total assets of $5.4 billion. Chemical Financial Corporation's common stock trades on The NASDAQ Stock Market under the symbol CHFC and is one of the issues comprising The NASDAQ Global Select Market. More information about the Corporation is available by visiting the investor relations section of its website at www.chemicalbankmi.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and Chemical Financial Corporation. Words such as "anticipated," "believe," "continue," "estimated," "further," "improving," "opportunities," "strategies," "trends," "will" and variations of such words and similar expressions are intended to identify

such forward-looking statements. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to the credit quality of the loan portfolio, future levels of nonperforming loans, future economic trends and conditions, anticipated consolidation opportunities in Michigan's banking industry, future income levels, and our ability to grow our loan portfolio, improve credit quality and control operating costs. All statements referencing future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the carrying value of acquired loans, goodwill, mortgage servicing rights and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involve judgments that are inherently forward-looking. Management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated or that other real estate owned can be sold for its carrying value or at all. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and on the Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") 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. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

This press release contains forward-looking statements regarding the Corporation's outlook or expectations with respect to the planned acquisition of branches from Independent Bank, the expected costs to be incurred in connection with the acquisition, the future performance of the branches to be acquired, the consequences of their integration into Chemical Bank, and the impact of the transaction on the Corporation's future performance. Completion of the transaction is dependent on, among other things, receipt of regulatory approvals, the timing of which cannot be predicted with precision and which may not be received at all. The impact of the completion of the transaction on the Corporation's financial statements will be affected by the timing of the transaction, including, in particular, the ability to complete the acquisition in the third quarter of 2012. The transaction may be more expensive to complete and the anticipated benefits, including anticipated strategic gains, may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety or at all as a result of unexpected factors or events.

Risk factors include, but are not limited to, the risk factors described in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.