Chesapeake Financial Shares Inc. (OTCQX:CPKF), the parent company of Chesapeake Bank and Chesapeake Wealth Management, told investors that its deposit base has held firm in the wake of the Silicon Valley Bank (SVB) failure.
Announcing first-quarter results, Chesapeake Bank CEO Jeffrey Szyperski commented: “The circumstances related to that failure were idiosyncratic to them and not correlated to what we do as an institution.”
"Asset quality remains extremely good," Szyperski added. “Two of our divisions, Flexent and Chesapeake Payment Systems, both had an excellent quarter and have rebounded strongly from the pandemic dip."
For the period ended March 31, 2023, the Kilmarnock, Virginia-based community bank reported a 13.5% decrease in earnings to $3,694,765, resulting in fully-diluted earnings per share of $0.780 compared to $0.902 in 1Q 2022. It ended the quarter with total assets of $1.33 billion, a slight increase from December 31, 2022.
Non-performing assets reached 0.535% at quarter end compared to 0.457% a year earlier. It reported net year-over-year loan growth of 10.4% to $744,786,042, while a net interest margin of 3.58% was slightly higher than 3.53% for 1Q 2022.
“The banking industry is in a strong position. With the rapid increase in rates over the past year, we anticipate continued pressure on our margin and active management of both our loan and deposit rates,” Szyperski concluded.
Continuing its 30-year record of consecutive dividend increases, the company said its board of directors has declared a quarterly dividend of $0.15 per share.
Contact the author at stephen.gunnion@proactiveinvestors.com