Press Releases

Chesapeake Financial Shares reports second quarter earnings

Press release -- for immediate release
For additional information please contact
Jeffrey M. Szyperski -804-435-4249 or 1-800-434-1181

Chesapeake Financial Shares, parent of Chesapeake Bank and Chesapeake Investment Group, reports net income of $2,091,066 for the first half of 2009. This represents a 12.7% decrease over the first six months of 2008. Since December 31, 2008, total assets of Chesapeake Financial Shares have increased 4.8% to $563,519,650 from $537,951,790.

Jeffrey M. Szyperski, Chairman, President & CEO, commented, “Our growth in the first six months has been mostly in deposits as customers continue to have a flight to quality for their money. During this same period of time, our aggregate loan balances outstanding have dropped approximately 1%. Though we have money to lend, we have found a marked slowdown in loan requests from new and existing customers. Of great importance to us is the continuing performance of our loan portfolio. Our asset quality remains strong despite these tight economic times.”

Fully diluted earnings per share for the first six months was $.74 as compared to $.83 for the first six months of 2008. This represents an 11% decrease from the prior year. Absorption of the additional FDIC insurance premium assessment in the second quarter was the most significant contributor to this decline. Dividends for the first six months are $.21 per share as compared to $.20 per share for the first six months of last year, representing a 5% increase.

Chesapeake Investment Group, the wealth management subsidiary of Chesapeake Financial Shares, has had a very strong first six months of the year, growing assets under management by over 16% for that period. Mark Monroe, President of Chesapeake Investment Group, stated, “Our conservative money management combined with local and responsive decision makers have been real advantages to us in the wealth management market. The vast majority of our large new business increase this year has been higher wealth individuals wanting more personalized service for their large accounts and a better understanding of why their money is being invested the way it is.”

“We are optimistic about the remainder of 2009. Our net interest margin remains strong in this low interest rate environment. That combined with strong asset quality are key factors positioning us well for the future,” said Szyperski.

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

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