Chesapeake Financial Shares Inc, the parent company of Chesapeake Bank and Chesapeake Wealth Management, released second-quarter results that saw earnings rise 2.4% year-over-year on strong asset quality .
For the period ended June 30, 2022, the Kilmarnock, Va.-based community bank reported earnings of $4,063,623, or earnings per share of $0.861 fully diluted, compared to $0.818 fully diluted for the second quarter of 2021. The second quarter of 2021 was also boosted by $660,000 of one-time Paycheck Protection Program charges.
The bank’s total assets at the end of the quarter were $1,346,135,792.
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“Asset quality is stronger than ever as we navigate potentially tumultuous times,” Chesapeake Bank CEO Jeffrey Szyperski said in a statement.
The bank’s non-performing assets were at 0.460% as of June 30, 2022, from 0.815% as of June 30, 2021.
“The specialist lines of business continued their recovery during the second quarter, and they are expected to continue this same trend. Mortgage originations still have a solid and constant flow, although at a lower level than that of 2021. We expect this slowdown in the second half of 2022. Net interest margin was 3.74% for the three months ended June 30, 2022.”
At Chesapeake’s financial meeting on July 15, 2022, the Board of Directors declared a quarterly dividend of $0.150 per share effective September 1, 2022, payable no later than September 15, 2022.
The company noted that this represents a 7.1% increase from the previous quarter. Currently, Chesapeake stock has a dividend yield of 2.24%. Significantly, the company has had 29 consecutive years of dividend increases.
Chesapeake Bank has been recognized for the 15th consecutive year by American Banker magazine as one of the nation’s “Top 200 Community Banks” based on three-year average return on equity.
Founded in 1900, Chesapeake Bank is a small business lender. Based in Kilmarnock, Va., it operates 16 community banks in the Northern Neck, Middle Peninsula, Williamsburg and Richmond area.
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