Tue, 24 Nov 2020

A 'Top 200 Community Bank' in the U.S. for the thirteenth consecutive year

KILMARNOCK, VA / ACCESSWIRE / October 20, 2020 / On behalf of Chesapeake Financial Shares, Inc. (parent company of both Chesapeake Bank and Chesapeake Wealth Management), Jeffrey M. Szyperski, Chairman of the Board & CEO, reported earnings for the third quarter of 2020 of $3.38 million, a 4.8% increase over the third quarter of 2019. The reported earnings per share were $0.692 fully diluted compared to $0.649 fully diluted for the third quarter of 2019. Total assets ended the quarter at $1.17 billion, a 24.2% increase over September 30, 2019.

'We have had a good 2020 thus far,' stated Szyperski. 'Through September 30 we've recognized net income of $8.80 million representing a 7.2% decrease from the first nine months of 2019. Coming off of a record year in 2019, we are very pleased to be where we are at this point in 2020, considering the international effects of COVID-19.' Nonperforming assets were 0.868% of total gross loans at September 30, 2020 compared to 0.983% at September 30, 2019. 'We have been rigorously reviewing our loan portfolio since March 2020 and have been closely monitoring the effect the pandemic has had on our customers. We have also been adding to our loan loss reserve during 2020. At September 30, 2020 our loan loss reserve was 1.40% of total loans (excluding $76.88 million in Paycheck Protection Program loans) as compared to 0.97% for the previous year. For the year we have provided $1.77 million to the provision for loan losses as compared to $0.96 million for the same period in 2019.'

Overall 2020 net income has been supported by a 10.2% increase in net interest income and a 66.1% increase in other income primarily driven by strong mortgage loan origination. This increase has offset COVID-related decreases in both merchant services income and cash management fees.

Earlier this year Chesapeake Bank was recognized for the thirteenth consecutive year by American Banker magazine as a 'Top 200 Community Bank' in the nation based on a three-year average return on equity. Additionally the bank was recognized for the eighth consecutive year by the same publication as one of the 'Best Banks to Work For.'

At their October 15, 2020 meeting, the Chesapeake Financial Shares Board of Directors declared a $0.125 per share dividend, payable on or about December 15, 2020, to shareholders of record at December 1, 2020. 'We feel this is a very strong dividend given the current market price of our stock. This translates into an approximate 2.46% dividend yield on the current stock price. 'This is the fourth consecutive quarter at this dividend rate. Given the increase in total assets and the pending Paycheck Protection Program forgiveness anticipated, we felt holding the dividend constant was prudent,' commented Szyperski.

For more information about Chesapeake Financial Shares stock (OTCQX:CPKF), or to receive daily e-mail alerts of our stock price, see www.chesapeakefinancialshares.com. The company is followed by Zacks Investment Research, and a copy of their report can also be found on this site or at www.zacks.com. Chesapeake Financial Shares is an over-the-counter, publicly traded stock. 'Like' Chesapeake Bank on Facebook and follow us on LinkedIn, Twitter, and Instagram.

CONTACT:

Jeffrey M. Szyperski
804-435-4249
1-800-434-1181

SOURCE: Chesapeake Financial Shares Inc.



View source version on accesswire.com:
https://www.accesswire.com/611343/Chesapeake-Financial-Shares-Reports-Third-Quarter-Earnings

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