Press Releases

Chesapeake Financial Shares reports second quarter earnings

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, parent company of Chesapeake Bank and Chesapeake Investment Group, reports a net income increase of 17% over the first half of 2007. This represents net income of $2,395,147 as compared to $2,048,965 in the first six months of 2007. Jeffrey M. Szyperski, Chairman, President & CEO, commented, “Our strong loan growth in the current economic environment is very encouraging. As many regional institutions pull back from lending, especially in certain sectors, we feel we have a huge opportunity going forward to filling that void with quality credits.”

“Under the leadership of John Hunt, Chesapeake’s Chief Financial Officer, we have been able to selectively engage in a ‘buyer’s market’ for investments,” Szyperski continued. “Many of the larger entities have flooded the market with a supply of good quality bonds. We have seen this as a buying opportunity.” Over the past eight years, Chesapeake Bank has consistently remained in the top 10% of all banks in the country for investment performance.

The fully diluted earnings per share for the first six months was $.832 as compared to $.701 for the first six months of 2007. This represents a 19% increase over the prior year. Szyperski added, “Our long-term investments into Chesapeake Investment Group, Chesapeake Payment Systems, and Cash Flow continue to keep us well-positioned in the current economic environment. We anticipate each of these three significant segments of our business to continue to provide strong earnings for us from now through the end of 2008. Specifically regarding our Cash Flow division, Larry Lawrence and his staff have been able to grow this receivables financing division with good quality credits in the current economic environment.” The Cash Flow service is provided to growing businesses with a trade area east of the Mississippi River. From an asset perspective, the segment has grown 24% since December 31, 2007.

“Despite the current media reports, banking is very sound in the State of Virginia, especially community banking,” Szyperski said. “Our ability to show record earnings in the current economic environment is a key indicator that those who stay engaged in fostering business development and growth in their communities will continue to prosper.”

Chesapeake Financial Shares stock is traded under the symbol CPKF.

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