Press Releases

Chesapeake Financial Shares Reports Record Earnings

For additional information please contact
Douglas D. Monroe, Jr.
804-435-1181; 1-800-434-1181

On behalf of Chesapeake Financial Shares, Douglas D. Monroe, Jr., Chairman and CEO, today reported earnings for the calendar year 2006 of $3,950,544, representing a 7.6% increase over 2005 earnings. The reported earnings per share were $1.61 fully diluted as compared to $1.47 for 2005 - an 8.8% increase.

“We are very proud of the earnings increase we had organizationally in 2006. The current highly competitive nature of the deposit market coupled with the inverted yield curve has made this increase one that we had to fight for. With loan and deposit growth in all three peninsulas coupled with solid growth in our Chesapeake Investment Group assets under management, we feel the core operations of Chesapeake Financial Shares are very strong,” Monroe stated.

The bank's performance of its investment portfolio was in the 94th percentile on a 3-year rolling average as compared to almost 7,000 other commercial banks in the United States. This is measured quarterly by the Investment Performance Digest published by IDC Financial Publishing, Inc. “John Hunt is responsible for the bank's investment portfolio and does an incredible job,” commented Jeffrey M. Szyperski, President of Chesapeake Financial Shares. “He has consistently kept us over the past 5 years in the top 10 to 15% of all commercial banks in the United States.”

CFS had 9.4% growth in total assets for yearend 2006 as compared to 2005. The company had total assets of $418,783,000 as of yearend 2006. Net loans increased 7.1% to $297,202,000. Deposits increased 9.3% year over year to $359,272,000. Total non-interest income increased 17% over 2005 to $11,613,396. Non-interest income is made up of fiduciary activities, service charges, securities gains and losses, Merchant Card income, ATM income, Cash Flow (accounts receivable financing program) and other income.

Jeffrey M. Szyperski, President, reported to the Board of Directors that deposit acquisition continues to be very competitive, especially in light of the rapid growth of the credit union industry in several of the bank's markets. He additionally reported that a new office currently under construction for the Merchant Card operations and commercial lending in Williamsburg should be open by the beginning of March. This expansion was necessary for the growth that those two areas have experienced in the Williamsburg and James City County markets.

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