Chesapeake Financial Shares Inc. (OTCQX:CPKF), the parent company of Chesapeake Bank and Chesapeake Wealth Management, told shareholders that the stabilization and slight decline in interest rates has helped the bank to steady its net interest margin.
The company reported a 5% rise in earnings for the third quarter of 2024, totaling $2.6 million, up from the $2.5 million reported in the same period last year.
Earnings per share for Q3 came in at $0.55 on a fully diluted basis, compared to $0.53 a year earlier.
The company’s total assets grew 8% year-to-date, ending the quarter at $1.59 billion, an increase of $118 million since year-end 2023, while nonperforming assets stood at 0.42%, up slightly from 0.38% in Q3 2023.
“The leveling off and slight decrease in interest rates has helped stabilize our net interest margin,” CEO Jeffrey Szyperski said in a statement accompanying the results.
“Our lending remains above peer with an 8.1% annualized increase year-to-date in 2024. Both Chesapeake Payment Systems and Flexent continue to have strong years.”
At its October 18 meeting, Chesapeake’s board of directors approved a $0.05 increase to the quarterly dividend, raising it to $0.16 per share. The new dividend will be effective on December 1, 2024, with payment due on or before December 15 and marks the 32nd consecutive year of dividend increases.
Chesapeake’s stock currently offers a 3.26% dividend yield and trades at a price-to-earnings ratio of 9.79.