EXHIBIT 99.1

PRESS RELEASE
NASDAQ:	CHFC
FOR RELEASE:	IMMEDIATE
DATE:	January 20, 2004
CONTACT:	DAVID B. RAMAKER	LORI A. GWIZDALA
	(989) 839-5269	(989) 839-5358

CHEMICAL FINANCIAL CORPORATION ANNOUNCES 2003
FOURTH QUARTER AND ANNUAL OPERATING RESULTS

          Midland, MI - Aloysius J. Oliver, Chairman of Chemical Financial Corporation, announced December 31, 2003 fourth quarter and year end net income of $13.56 million, or $.57 per diluted share and $55.72 million, or $2.35 per diluted share, respectively, compared to fourth quarter and year end 2002 net income of $13.68 million, or $.57 per diluted share and $54.95 million, or $2.31 per diluted share. Return on average assets in the fourth quarter and year end 2003 was 1.50% and 1.56%, respectively, compared to 1.52% and 1.55%, respectively, in the fourth quarter and year end 2002. Comparing net income in 2003 to net income in 2002, net income was up 1.4%.

          The Corporation completed the acquisition of Caledonia Financial Corporation ("Caledonia"), a one-bank holding company headquartered in Caledonia, Michigan, on December 1, 2003. Shareholders of Caledonia received $39.00 cash for each share of Caledonia common stock in a taxable transaction. The total value of the transaction was approximately $55.3 million. The results of operations of State Bank of Caledonia are included in the Corporation's 2003 earnings from the date of acquisition.

          Net income in the fourth quarter of 2003 was down $119,000, or .9% as compared to the fourth quarter of 2002. The decrease in fourth quarter earnings was attributed to lower net interest income and mortgage banking revenue. These decreases were partially offset by investment securities gains, a lower provision for loan losses and lower operating expenses.

PRESS RELEASE
January 20, 2004
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          Net income for 2003 was up $771,000, or 1.4% as compared to 2002. The increase was attributed to higher noninterest income, a lower provision for loan losses and lower operating expenses. These amounts were partially offset by lower net interest income.

          Net interest income decreased $5.9 million, or 4.1% in 2003 as compared to 2002. The decrease was due to a lower net interest margin of 4.18% in 2003 compared to 4.44% in 2002. The lower net interest margin was due to a decrease in the yield on both loans and investment securities outpacing the decrease in the cost of funds.

          Total noninterest income increased $4.6 million, or 13.2% in 2003 as compared to 2002. The increase was primarily due to an increase in service charges on deposit accounts of $2.9 million and an increase in investment securities gains of $2.1 million. Total operating expenses decreased $1.6 million, or 1.7% in 2003 compared to 2002. The decrease was primarily due to lower Michigan Single Business tax and various other operating expenses.

          Total assets of the Corporation at December 31, 2003 were $3.71 billion, up 3.9% over the $3.57 billion in total assets reported at December 31, 2002. Total deposits at December 31, 2003 were $2.97 billion, up 4.2% over total deposits of $2.85 billion at December 31, 2002. Total loans were $2.48 billion at December 31, 2003, up $406 million, or 19.6%, from total loans at December 31, 2002 of $2.07 billion. The increase in loans was primarily attributable to an increase in residential and commercial real estate loans. The State Bank of Caledonia purchase on December 1, 2003 accounted for approximately $253 million of the increase in total assets, $185 million of the increase in loans and $176 million of the increase in deposits during 2003.

          The Corporation's provision for loan losses for the three and twelve months ended December 31, 2003 was $.73 million and $2.83 million, respectively, as compared to net loan losses during the same periods in 2003 of $.99 million and $3.35 million, respectively.

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January 20, 2004
Page 3

Approximately $.26 million of the net loan losses in the fourth quarter were attributable to the State Bank of Caledonia. As of December 31, 2003, the allowance for loan losses was $33.18 million, or 1.34% of total loans, while nonperforming loans were $11.35 million, or .46% of total loans. Nonperforming loans are up $4.1 million, or 56% from December 31, 2002. The Caledonia acquisition added $1.9 million in nonperforming loans. As of December 31, 2003, the allowance for loan losses as a percentage of non-performing loans was 292%.

          Shareholders' equity at December 31, 2003 was $458 million, or $19.25 per share, and represented 12.4% of total assets. The Corporation's tangible equity to asset ratio was 10.5% at the end of the year. The Corporation's return on average equity in the fourth quarter and year-end 2003 was 12.3% and 12.7%, respectively, compared to 12.8% and 13.5%, respectively, during the same periods in 2002.

          Chemical Financial Corporation is the fourth largest bank holding company headquartered in Michigan. The Company's four subsidiary banks operate 133 branch offices and 2 loan production offices spread over 33 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.

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 interests rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements 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 Fourth Quarter Operating Results

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

(In thousands)	December 31, 2003		December 31, 2002
Assets:
Cash and demand deposits due from banks	$	131,184	$	148,112
Federal funds sold		25,900		69,900
Interest-bearing deposits with unaffiliated banks		5,107		53,135
Investment securities taxable		876,806		1,076,292
Investment securities nontaxable		45,056		51,690
Total Investment Securities		921,862		1,127,982
Commercial loans		389,324		327,438
Real estate construction loans		107,046		108,589
Real estate commercial loans		669,486		481,084
Real estate residential loans		775,821		648,042
Consumer loans		539,598		509,789
Total Loans		2,481,275		2,074,942
Less: Allowance for loan losses		33,179		30,672
Net Loans		2,448,096		2,044,270
Premises and equipment		49,616		42,767
Intangible assets		76,846		40,489
Other assets		50,277		41,994
Total Assets	$	3,708,888	$	3,568,649
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits	$	532,752	$	475,933
Interest-bearing deposits		2,434,484		2,371,339
Total Deposits		2,967,236		2,847,272
FHLB borrowings		155,373		157,393
Other borrowings - short term		91,524		104,212
Interest payable and other liabilities		36,706		29,433
Total Liabilities		3,250,839		3,138,310
Shareholders' Equity:
Common stock, $1 par value		23,801		23,684
Surplus		328,774		325,149
Retained earnings		94,746		62,721
Accumulated other comprehensive income		10,728		18,785
Total Shareholders' Equity		458,049		430,339
Total Liabilities and Shareholders' Equity	$	3,708,888	$	3,568,649

Chemical Financial Corporation Announces Fourth Quarter Operating Results

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

	Three Months Ended December 31,					Twelve Months Ended December 31,
(In thousands, except per share data)	2003		2002			2003		2002
Interest Income:
Interest and fees on loans	$	36,046	$	37,745		$	144,835	$	155,803
Interest on investment securities:
Taxable		8,029		12,045			36,700		49,554
Nontaxable		590		678			2,518		2,911
Total Interest on Investment Securities		8,619		12,723			39,218		52,465
Interest on federal funds sold		137		385			749		2,000
Interest on deposits with unaffiliated banks		55		183			235		776
Total Interest Income		44,857		51,036			185,037		211,044
Interest Expense:
Interest on deposits		7,790		12,263			36,345		55,536
Interest on FHLB borrowings		2,108		2,200			8,381		8,848
Interest on other borrowings - short term		104		210			539		968
Total Interest Expense		10,002		14,673			45,265		65,352
Net Interest Income		34,855		36,363			139,772		145,692
Provision for loan losses		727		1,013			2,834		3,765
Net Interest Income after
Provision for Loan Losses		34,128		35,350			136,938		141,927
Noninterest Income:
Service charges on deposit accounts		4,601		4,400			16,935		14,002
Other charges and fees for customer services		1,233		1,783			6,605		7,131
Mortgage banking revenue		1,238		2,007			6,954		7,513
Trust services revenue		1,671		1,633			6,794		6,405
Investment securities gains (losses)		387		(584	)		1,296		(768	)
Other		290		36			510		251
Total Noninterest Income		9,420		9,275			39,094		34,534
Operating Expenses:
Salaries and employee benefits		13,910		13,430			54,480		54,168
Occupancy		2,039		1,926			7,921		7,590
Equipment		1,840		2,228			8,045		8,391
Other		5,225		6,108			21,477		23,377
Total Operating Expenses		23,014		23,692			91,923		93,526
Income Before Income Taxes		20,534		20,933			84,109		82,935
Federal income taxes		6,971		7,251			28,393		27,990
Net Income	$	13,563	$	13,682		$	55,716	$	54,945
Net income per share:
Basic	$	0.57	$	0.58		$	2.35	$	2.32
Diluted		0.57		0.57			2.35		2.31
Cash dividends per share		0.25		0.23			1.00		0.91
Average shares outstanding:
Basic		23,718		23,683			23,693		23,677
Diluted		23,813		23,757			23,756		23,742

Chemical Financial Corporation Announces Fourth Quarter Operating Results

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

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2003		2002		2003		2002
Average Balances
Total assets	$	3,585,924	$	3,560,130	$	3,578,678	$	3,538,599
Total interest-earning assets		3,372,706		3,363,068		3,381,083		3,325,572
Total loans		2,352,269		2,067,623		2,222,704		2,088,395
Total deposits		2,883,412		2,842,417		2,868,180		2,825,975
Total shareholders' equity		436,855		424,421		439,178		406,762

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2003		2002		2003		2002
Key Ratios (annualized where applicable)
Net interest margin		4.15%		4.34%		4.18%		4.44%
Efficiency ratio		51.5%		51.3%		50.9%		51.3%
Return on average assets		1.50%		1.52%		1.56%		1.55%
Return on average shareholders' equity		12.3%		12.8%		12.7%		13.5%
Average shareholders' equity as a
percent of average assets		12.2%		11.9%		12.3%		11.5%
Tangible shareholders' equity as a
percent of total assets						10.5%		11.0%
Total risk-based capital ratio						16.6%		18.6%

	December 31,
	2003		2002
Credit Quality Statistics
Nonaccrual loans	$	6,691	$	4,859
Loans 90 or more days past due
and still accruing interest		4,656		2,422
Total nonperforming loans		11,347		7,281
Repossessed assets acquired (RAA)		6,002		4,298
Total nonperforming assets		17,349		11,579
Net loan charge-offs		3,352		4,087
Allowance for loan losses as a
percent of total loans		1.34%		1.48%
Allowance for loan losses as a
percent of nonperforming loans		292%		421%
Nonperforming loans as a
percent of total loans		0.46%		0.35%
Nonperforming assets as a
percent of total loans plus RAA		0.70%		0.56%
Net loan charge-offs as a
percent of average loans		0.15%		0.20%

	December 31,
	2003		2002
Additional Data
Goodwill	$	63,405	$	27,940
Core deposit and other intangibles		10,177		10,054
Mortgage servicing rights		3,264		2,495
Amortization of intangibles		3,718		4,642

Chemical Financial Corporation Announces Fourth Quarter Operating Results

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

	4th Qtr. 2003		3rd Qtr. 2003		2nd Qtr. 2003		1st Qtr. 2003		4th Qtr. 2002		3rd Qtr. 2002		2nd Qtr. 2002		1st Qtr. 2002
Summary of Operations
Interest income	$	44,857	$	45,237	$	46,697	$	48,246	$	51,036	$	52,475	$	53,292	$	54,241
Interest expense		10,002		10,473		11,668		13,122		14,673		16,076		16,585		18,018
Net interest income		34,855		34,764		35,029		35,124		36,363		36,399		36,707		36,223
Provision for loan losses		727		540		1,272		295		1,013		747		1,352		653
Net interest income after provision
for loan losses		34,128		34,224		33,757		34,829		35,350		35,652		35,355		35,570
Noninterest income		9,420		10,274		10,086		9,314		9,275		8,588		8,000		8,671
Noninterest expense		23,014		22,701		23,182		23,026		23,692		23,134		23,021		23,679
Income taxes		6,971		7,328		6,991		7,103		7,251		7,088		6,799		6,852
Net income		13,563		14,469		13,670		14,014		13,682		14,018		13,535		13,710
Per Common Share Data
Net income:
Basic	$	0.57	$	0.61	$	0.58	$	0.59	$	0.58	$	0.59	$	0.57	$	0.58
Diluted		0.57		0.61		0.58		0.59		0.57		0.59		0.57		0.58
Cash dividends		0.25		0.25		0.25		0.25		0.23		0.23		0.23		0.23
Book value		19.25		18.94		18.73		18.45		18.17		17.78		17.19		16.57