Chesapeake Financial Shares Inc. (OTCQX:CPKF), the parent company of Chesapeake Bank and Chesapeake Wealth Management, announced its earnings for the first quarter of 2024, along with a dividend declaration.
The US community bank recorded earnings of $2.75 million for the first quarter, marking a significant 303.9% increase from the previous quarter.
Earnings per share stood at $0.583 fully diluted, compared to $0.192 in the fourth quarter of 2023.
Total assets for the quarter reached $1.51 million, a $40.8 million increase from year-end.
Notably, nonperforming assets decreased to 0.187% as of March 31, 2024, down from 0.255% in the fourth quarter of 2023.
CEO Jeffrey Szyperski attributed the strong performance to the success of the bank's specialty lines of business.
"Our specialty lines of business, Chesapeake Payment Systems and Flexent, continue to provide solid noninterest income strength to our earnings," Szyperski noted.
"Coupled with 15.2% annualized net loan growth in the first quarter, we feel we have started 2024 on strong footing. The efforts we made in 2023 to strengthen our balance sheet and provide greater stability to our earnings are also now yielding benefits."
During the Chesapeake Financial Shares Board of Directors meeting on April 19, the Board declared a quarterly dividend of $0.155 per share, effective June 1, 2024.
The announcement marks the 31st consecutive year of dividend increases for the company. Currently, the stock boasts a 3.76% dividend yield.
Chesapeake Financial Shares continues to maintain its standing as a Top 200 Community Bank in the United States, a recognition it has achieved for the 16th consecutive year.