Chesapeake Financial Shares Inc. (OTCQX:CPKF), the parent company of Chesapeake Bank and Chesapeake Wealth Management, has reported another quarter of “extremely good” asset quality when handing down its third quarter earnings.
The company exited the 3Q with total assets of $1,382,205,095, up slightly from the year-end.
Nonperforming assets were at 0.376% on September 30, 2023 compared to 0.431% the comparable year-ago period, Chesapeake Financial CEO Jeffrey Szyperski noted. Net interest margin was 3.366% for the quarter ended September 30, 2023.
Szyperski heralded the continued strengths of the company’s Flexent and Chesapeake Payment Systems divisions which are keeping its non-interest income strong in the current inverted yield curve environment.
“The acquisition of the assets of a smaller factoring firm effective May 1st has bolstered Flexent net income 73% over the third quarter of last year,” he said. “We anticipate a continued strong contribution from this division going forward.”
The company noted that its third quarter results included a non-recurring pre-tax gain of $2.2 million from the sale of a partial interest in an investment brokerage firm.
Earnings for the quarter were $2,477,896, a 58% decrease from the year-ago quarter. Earnings per share were $0.526, compared to $1.261 for the third quarter of 2022.
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