Chesapeake Financial Shares, Inc.
Consolidated Statements of Earnings

Three Months Ended December 31, 2002

Interest Income		2002		2001
		(Unaudited)
Interest and Fees on loans		$3,553,296		$3,517,309
Interest on federal funds sold		47,346		23,771
Interest on time deposits with banks		1,426		1,613
Interest on obligations of U.S. Agency Obligations		122,196		323849
Interest on obligations of state and political subs		336,168		222,602
Total interest income		4,060,432		4,089,144
		---------------		---------------
Interest Expense
Interest on savings and interest bearing deposits		311,773		352,507
Interest on certificates of deposit		946,434		1,110,807
Interest on federal funds purchased		60,267		56,011
Other interest expense		26,529		10,959
Total interest expense		1,345,003		1,530,284
Net interest income		2,715,429		2,558,860
Provision for loan losses		163,334		259,499
Net interest income after provision for loan losses		2,552,095		2,299,361
Noninterest Income
Income from fiduciary activities		210,138		227,594
Service charges on deposit accounts		260,173		199,044
Securities gains (losses)-net		0		0
Merchant card income		345,609		266,341
ATM income		95,030		75,547
Business manager income		664,180		568,604
Other income		204,403		202,704
Total noninterest income		1,779,533		1,539,834
Noninterest Expense
Salaries		1,109,003		1,062,944
Employee benefits		185,034		217,287
Occupancy expenses		406,652		483,525
Merchant card expense		298,213		242,721
ATM expense		89,537		63,975
Business manager expense		334,083		157,166
Other expenses		864,904		682,019
Total noninterest expense		3,287,426		2,909,637
Income before income taxes		1,044,202		929,558
Income taxes		263,485		244,847
Net income		780,717		684,711
		========		========
Earnings per share, primary		0.61		0.55
Earnings per share, assuming dilution		0.59		0.53
Dividends per share		0.13		0.12