Press Releases

Chesapeake Financial Shares will not apply for TCPP money

For additional information please contact
Jeffrey M. Szyperski, President & CEO
Chesapeake Financial Shares, Inc.
804-435-4249 or 1-800-434-1181

Chesapeake Financial Shares, the parent company of Chesapeake Bank and Chesapeake Investment Group, announced that it does not intend to apply for an investment from the U. S. Treasury under the Treasury Capital Purchase Program (TCPP). The program was designed to “encourage U. S. financial institutions to build capital to increase the flow of financing to U. S. businesses and consumers to support the U. S. economy.” Chairman & CEO Jeffrey M. Szyperski commented, “We have chosen not to apply for the TCPP dollars, frankly, because we don't need them. We have had and still have money to lend to serve the credit needs of our community. Obtaining additional funds in the form of preferred stock from the Treasury would not increase our lending. It is not a supply side issue at this point in time, it's a demand side issue.”

Further commenting, Szyperski noted, “In addition to the fact that we currently have a very strong capital position, very strong loan loss reserve, and are approaching a year with record earnings, we do not feel that taking these funds from the TARP bailout is in the best interests of our shareholders. The strings attached to the TCPP money allowing the Treasury to issue common stock warrants as well as the ability to unilaterally change the agreement at any time, was of great concern to us.”

“We will continue to serve the credit needs of our communities as we always have,” commented Szyperski. “Though the TCPP does serve a need in the overall financial services industry and can be used by other financial institutions, we do not feel it is in the best interests of our shareholders nor our communities. We continue to stand on solid ground with respect to our capitalization, asset quality, earnings, and core banking operations. We are successfully weathering the current downturn in the economy and are well-positioned for the continued growth throughout our market.”

Chesapeake Financial Shares' stock is traded under the symbol of CPKF. Information on how to purchase Chesapeake Financial Shares stock is available on Chesapeake Bank's website at www.chesbank.com.

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