TO OUR SHAREHOLDERS:

At their meeting on August 17, 2000, your Board of Directors declared a quarterly cash dividend of $.15. Accordingly, the enclosed check represents $.15 per share on your Shoreline Financial Corporation common stock. This dividend is payable today to holders of record on September 1, 2000. If you selected the direct deposit option, there is no dividend check attached. By leaving the cash dividend rate at $.15 per share, following distribution of the 5% stock dividend in July, cash dividends have effectively been increased by 5%.

On August 22, 2000, we announced the signing of a definitive agreement under which Shoreline Financial Corporation would merge into Chemical Financial Corporation of Midland, Michigan. We view this transaction as a unique opportunity for our shareholders to acquire ownership in a growing organization with a twenty-five year history of consecutive increases in both annual per share operating earnings and dividends. During the fourth quarter, you will be receiving a prospectus and proxy statement regarding a special meeting of shareholders which we anticipate holding before year-end. The purpose of that meeting will be to seek shareholder approval for the proposed transaction. Shareholders are advised to read the prospectus and proxy statement regarding this transaction as it will contain important information. The merger is subject to approval by Shoreline and Chemical shareholders, approval by banking regulators, and other customary conditions. We presently expect to complete the merger during the first quarter of 2001.

Please feel free to contact our President, Jim Milroy, our Chief Financial Officer, Wayne Koebel, or me to discuss any questions you may have about this agreement.

Sincerely,

/s/ Dan L. Smith

Dan L. Smith
Chairman of the Board
     and CEO