Press Releases

Chesapeake Financial Shares Reports First-Quarter Earnings

Press release -- for immediate release
For additional information please contact
Jeffrey M. Szyperski -- 804-435-1181; 1-800-434-1181

Chesapeake Financial Shares reported first-quarter earnings of $931,985 for the period ended March 31, 2009. This compares to $989,480 in the first quarter of 2008. The first-quarter fully-diluted earnings per share was $.33 per share as compared to $.34 in the first quarter of 2008. “Given the current turmoil in the economy and the accrual of an additional FDIC insurance premium in March, we are very pleased with our first-quarter results. The 3% decrease quarter-over-quarter in earnings per share is a very strong performance in the current market," commented Jeffrey M. Szyperski, Chairman & CEO.

In the first quarter of 2009, the FDIC announced an additional deposit insurance assessment in an effort to bolster the FDIC insurance fund. The initial proposal was 20 basis points, though it is anticipated that this will be somewhat reduced by the time the final determination is made. In an effort to be conservative, Chesapeake accrued a proportionate share of that 20-basis-point assessment in the last month of the quarter.

Chesapeake closed March 31, 2009 with total assets of $598,204,887, representing an 11% increase in the first three months of the year. The large growth was due to many customers bringing their deposits back into the banking system as a safe place for their money. Additionally, Chesapeake has had large growth in its Clear Sky online banking branch accounts. It is not anticipated that this level of growth will continue throughout 2009.

Chesapeake Financial Shares' wealth management subsidiary, Chesapeake Investment Group, had great success in the first quarter, bringing in over $30 million in new asset management business. The primary reasons for this increase in new business are strong asset management performance combined with a personalized approach to each individual client. Mark Monroe, President of Chesapeake Investment Group, stated, “Our clients' ability to meet directly with our portfolio managers has allowed us to effectively manage portfolios that meet our clients' needs in a volatile market. We are very optimistic about our ability to compete in this arena.”

For more information about Chesapeake Financial Shares stock (CPKF), please go to Chesapeake Bank's website at www.chesbank.com. Chesapeake Financial Shares remains a publicly traded company and is traded on the over-the-counter market.

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