Chesapeake Financial Shares Inc, the parent company of Chesapeake Bank and Chesapeake Wealth Management, indicated that its shareholders will receive their fourth-quarter $0.15 per share dividend well before Christmas.
With increased fears of a possible recession, investors seeking steady income have increasingly turned to stocks paying quarterly dividends. And, Kilmarnock, Virginia-based community bank Chesapeake has a long history of paying dividends.
The 4Q dividend furthers the bank's 29-year history of consecutive dividend increases. Significantly, the Chesapeake stock has a 2.63% dividend yield.
READ: Chesapeake Financial sees 3Q earnings jump 58%, reports robust assets
“Chesapeake’s fourth-quarter dividend of $0.15 per share is payable on or before December 15, 2022,” Chesapeake Bank CEO Jeffrey Szyperski said in a letter to shareholders.
“As 2023 approaches we are optimistic about what it holds for us as we execute against our strategic plan,” he added.
Szyperski’s letter to shareholders also included a rundown of the company’s third-quarter financial results. The group posted earnings of more than $5.9 million ($1.26 per diluted share), a 58% increase year-over-year.
Included in the earnings was a one-time $2.2 million gain from the sale of a partial interest in an investment brokerage firm. Significantly, the company ended the quarter with more than $1.3 billion in assets.
Meanwhile, Pat Lewis, who is Chesapeake’s EVP and director of human resources is retiring after 50 years of service.
“She has been instrumental in establishing successful employee training programs and in making Chesapeake a great place to work. Though we have a solid succession in place, she will be missed,” said Szyperski.
“As a testament to what Pat and others have done, for 10 consecutive years American Banker magazine has ranked Chesapeake one of the 'Best Banks to Work For.' This year we placed 32nd of the 90 banks that were ranked nationally and we placed No 1 in Virginia for the tenth year in a row.”
Chesapeake Bank was also recognized for the fifteenth consecutive year by American Banker magazine as a "Top 200 Community Bank" in the nation based on a three-year average return on equity.
Founded in 1900, Chesapeake Bank is a lender to small businesses. Headquartered in Kilmarnock, Virginia, it operates 16 community banks in the Northern Neck, Middle Peninsula, Williamsburg and Richmond region.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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