Chesapeake Bank, a subsidiary of Chesapeake Financial Shares Inc, plays a critical role in the growth of the communities it serves

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  • The company has increased its dividends for 29 consecutive years
  • American Banker named Chesapeake one of the “200 Best Community Banks” in the United States
  • Processed $ 77 Million in Paycheck Protection Program’s First Loan Wave

What Chesapeake Bank does:

Chesapeake Financial Shares Inc (OTCQX: CPKF) is the banking holding company of Chesapeake Bank and is also the parent company of Chesapeake Wealth Management Inc.

Founded in 1900, Chesapeake Bank is a small business lender. Based in Kilmarnock, Virginia, it operates 16 community banks in the Northern Neck, Middle Peninsula, Williamsburg and Richmond areas.

Chesapeake Bank offers checks, savings, mortgages, lines of credit, business loans, mobile and online banking, corporate cash management, brokerage, wealth management, trust and property management.

Meanwhile, Chesapeake Wealth Management is an independent wealth management company offering brokerage, trust and property management services. It has an in-house team of professionals, portfolio managers and trust agents under one roof. It provides top-quality trust and estate services, including an in-depth, no-obligation review of an individual’s current estate plan.

Jeffrey M. Szyperski is Chairman of the Board and CEO of Chesapeake Financial Shares and Chesapeake Bank. Szyperski, a banker for three decades, is also the chairman of Chesapeake Wealth Management. A thoughtful risk-taker who is bullish on the banking industry, Szyperski was the former president of the American Bankers Association and the Virginia Bankers Association.

How are you :

At the start of 2021, Chesapeake Bank was on a path of rapid growth. Despite the challenges of the coronavirus pandemic (COVID-19), the company just posted a stellar profit for the first quarter of 2021 of $ 5,262,879, an increase of 56.3% from the first quarter of 2020. Reported earnings per share were $ 1.085 fully diluted, compared to $ 0.679 fully diluted for the first quarter of 2020. Total assets ended the quarter at $ 1,238,292,086, an increase of 30.2% over the previous quarter. March 31, 2020.

The company said the large increases in net income and total assets from the previous year were largely due to government programs – both the Paycheck Protection Program (PPP) and other stimulus payments. federal. The lion’s share of the first wave of PPP loans, around 60%, went through US community banks. The PPP program, the US government’s small business coronavirus bailout, brought new customers to community banks like Chesapeake and kept current customers in business. Stimulus and unemployment checks also boosted deposits and kept borrowers from falling behind on their loans.

Non-performing assets also fell to 1.026% as of March 31, 2021, from 1.034% as of December 31, 2020. Chesapeake CEO Jeffrey M. Szyperski said asset quality remains “extremely good, especially as we are slowly coming out of the pandemic and stops. He added that mortgage operations are continuing at “near full capacity and have generated strong fee income.”

At a meeting on April 16, 2021, the board of directors of Chesapeake Financial declared a quarterly dividend of $ 0.130 per share effective June 1, 2021, payable no later than June 15, 2021. Currently, the stock has a dividend yield of 2.14%. With an increase of $ 0.005 last quarter, the company continued a 29-year tradition of increasing dividends each year.

In January, Szyperski told Proactive in an interview that the bank adopted a new workflow tool, along with “flexibility, resilience and teamwork” to process $ 77 million in the first wave of PPP loans last year, producing $ 3 million in fees. Of those three million, the bank said it recognized $ 777,000 in 2020 revenue, with the remainder being postponed to 2021 pending requests for forgiveness from borrowers.

American Banker had previously named Chesapeake one of the “200 Best Community Banks” in the United States for the thirteenth consecutive year and one of the “Best Banks to work for” for the eighth consecutive year.

Chesapeake Bank recently implemented best-in-class commercial banking technology from Texas-based Q2 Holdings Inc (NYSE: QTWO) to improve the banking experience for its commercial customers. The bank is chairing a digital transformation and said it sees its digital assessment as “an opportunity” to refine its “go-to-market strategy”, focusing its digital investments in areas that are “most important” for the company. growth. As a result, the bank strives to provide its customers with “a complete, user-friendly and easy-to-use digital banking experience”.

Meanwhile, Chesapeake Bank has revealed that it has joined the Real-Time Payments (RTP) network developed by The Clearing House. With the RTP network, Chesapeake Bank customers can now receive payments directly to their accounts with real-time receipt confirmation and instant availability, while providing advanced messaging capabilities.

Inflection points:

  • Participate in the next paycheque protection program cycle
  • Leverage the bank’s overall digital strategy
  • Continued stimulation of the strong mortgage market as well as asset growth

What the boss says:

“Much of the growth can be attributed to federal funds flowing into our community through stimulus payments as well as P3 loans. A smaller amount that we attribute to an overall increase in our clients’ savings, ”said Jeffrey M. Szyperski, CEO of Chesapeake Bank, in a recent interview with Proactive.

“Thanks to our specialized business lines as well as our strong retail market share in each of our markets, we are well prepared for the future, even in a low interest rate environment. We are serious about supporting our communities, and we feel a certain reciprocity there. Ultimately, we and our customers are looking for the same thing – improving our communities for the long term. With this as a benchmark, we are confident in our long-term success and therefore as a good investment. “

Contact author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive


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