Chesapeake Financial Shares Inc, the parent company of both Chesapeake Bank and Chesapeake Wealth Management, told shareholders that it grew third-quarter earnings as it increased assets and improved on its non-performing loans after reviewing its loan portfolio.
At the end of the third quarter ended September 30, 2021, the community bank reported earnings of $3,771,100, an 11.5% increase from the third quarter a year earlier. The reported earnings per share (EPS) was $0.778 fully diluted, compared to $0.692 in 3Q, 2020.
Total assets at the end of the quarter stood at $1.33 billion, a 10.3% increase over September 30, 2020. Non-performing loans were 0.776% of total gross loans as of September 30 compared to 0.868% a year earlier.
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"We have been rigorously reviewing our loan portfolio since March 2020 and have been closely monitoring the effect the pandemic has had on our customers,” chairman and CEO Jeffrey Szyperski said in a statement. “Our loan customers have weathered all challenges well."
Earlier this year, Chesapeake Bank was recognized for the 14th consecutive year by American Banker magazine as a "Top 200 Community Bank" in the nation based on a three-year average return on equity.
"We are rooted in the communities we serve - this is one of the keys to our success,” said Szyperski. “The interconnectedness our organization feels with the community drives our mission,” he added.
The company said that at an October 14 meeting its board of directors had approved a dividend of $0.14 per share to shareholders of record as of December 1, 2021, payable on or before December 15, 2021.
"We feel this is a very strong dividend given the current market price of our stock,” Szyperski concluded. “This translates into an approximate 1.89% dividend yield on the current stock price.”
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 at stephen.gunnion@proactiveinvestors.com