Press Releases

Chesapeake Financial Shares Second Quarter Earnings

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

The Board of Directors of Chesapeake Financial Shares announced second quarter earnings of $1,081,924, representing a 20% increase over the second quarter of 2006. The year-to-date earnings for 2007 are $2,048,965 as compared to $1,686,517 in the first half of 2006. In addition, the Board declared the regular dividend of $.10 per share to be paid on or before September 15 to shareholders of record August 30, 2007.

In making the announcement for the Board of Directors, Douglas D. Monroe, Jr., Chairman & CEO, announced that the company will grant a 6-share-for-5-share stock dividend to all shareholders of record as of October 15, 2007. This stock dividend will be distributed on October 31, 2007. Monroe noted, “This earnings growth was accomplished in the face of a very difficult deposit market and interest rate environment. This is truly a testament to the diversification of Chesapeake Financial Shares' earnings. We feel this 20% stock dividend is warranted given our organization's continued growth in both assets and earnings.”

Total assets increased to $442,527,371 at June 30, 2007, as compared to $418,561,784 at June 30, 2006. This 5.7% growth comes from all of the markets in which Chesapeake serves.

In the past quarter, Chesapeake has launched their Easy Deposit product whereby business owners are able to scan checks and make deposits without having to go to the bank. Jeffrey M. Szyperski, President of Chesapeake Financial Shares, noted that this greatly broadens the potential for Chesapeake Bank to serve businesses both within the community as well as those that have subsidiaries outside of the bank's current trade area. Mr. Szyperski noted, “The pricing of the product is currently such that the breakeven point for a business to utilize this service is extremely low.”

“Under the leadership of Mark Monroe, Greg Powell, and Trudy Quinto, Chesapeake Investment Group continues to experience strong growth,” noted Mr. Szyperski. “Assets under management for Chesapeake Investment Group are currently growing at an annualized rate of 19% so far in 2007. The emphasis we have put upon our professional designations in our areas of wealth management have helped us experience such strong growth,” Szyperski commented.

Chesapeake Financial Shares stock, though not listed with the Securities & Exchange Commission, is publicly traded and is available through local stockbrokers. The stock trades under the ticker symbol CPKF, and up-to-date financial information is available at Chesapeake's website, chesbank.com, under the pull-down menu “Who We Are” and then under the menu “Financial Releases.”

* * * * * *