Press Releases

Chesapeake Financial Shares Third Quarter Earnings

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

The Chesapeake Financial Shares (CFS) Board of Directors announced third quarter earnings of $1,401,417 representing a 17.6% increase over the third quarter of 2006. The year-to-date after-tax earnings for 2007 of $3,450,382 represented a 19.9% increase over 2006. From an earnings per share basis, the company earned $.47 per share for the quarter compared with $.40 for the third quarter of 2006. On a year-to-date basis, the company earned $1.17 per share through September 30, 2007 compared to $.96 for the comparable period in 2006. This represents a 21.7% increase. The above per share data incorporates the 20% stock dividend which became effective to shareholders of record on October 1, 2007.

In making the announcement for the Board of Directors, Jeffrey M. Szyperski, President, noted that Chesapeake's performance was contrary to most other financial institutions. “Most of our competitors have shown decreases in net income due to very aggressive competition for deposits as well as rate reductions by the Federal Reserve Open Market Committee. Our increase is largely attributable to our long-term commitment to growing noninterest income through our fee-based product lines such as Cash Flow, Chesapeake Payment Systems, as well as Chesapeake Investment Group.” Noninterest income increased 18.4% for the first nine months of 2007 as compared to the first nine months of 2006. Noninterest expense, comparatively, only increased 10.4% for the same period. Additionally, total assets increased to $479,215,030 as of September 30, 2007. This compares to $418,090,509 as of September 30, 2006.

With its offices in both the New Town section of Williamsburg as well as in Kilmarnock, Chesapeake Investment Group's assets under management increased over 32% from the prior year September 30 amount. Mark Monroe, Managing Director of Chesapeake Investment Group, stated, “The primary driver for our growth is the high level of expertise we bring to our wealth management clients at the local level. We've spent the last several years strengthening our financial planning and investment skills, and we're just starting to reap the dividends of those investments.”

While Chesapeake Financial Shares' stock is not listed through the Securities & Exchange Commission, it is publicly traded and is available through local stockbrokers. The ticker symbol, CPKF, can also be tracked online. Complete financial information is available to the public through Chesapeake Financial Shares' website, www.chesbank.com, under the pull-down menu “Investor Relations.”

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