Chesapeake Financial Shares Inc, the parent company of Chesapeake Bank and Chesapeake Wealth Management, posted second-quarter results that saw its earnings increase 2.4% year-over-year on the back of strong asset quality.
For the period ended June 30, 2022, the Kilmarnock, Virginia-based community bank reported earnings of $4,063,623, or earnings per share of $0.861 fully diluted, compared to $0.818 fully diluted for the second quarter of 2021. The second quarter of 2021 was also boosted by $660,000 of nonrecurring Paycheck Protection Program fees.
The bank’s total assets at the end of the quarter stood at $1,346,135,792.
"Asset quality is as strong as it has ever been as we proceed into potentially tumultuous times," Chesapeake Bank CEO Jeffrey Szyperski said in a statement.
The bank’s nonperforming assets were at 0.460% on June 30, 2022, compared to 0.815% on June 30, 2021.
"Specialty lines of business have continued their recovery through the second quarter, and it is anticipated they will continue this same trend. Mortgage originations still have a strong, consistent flow though at a lower level than 2021. We anticipate this slowing in the second half of 2022. The net interest margin was 3.74% for the quarter ended June 30, 2022."
At the July 15, 2022, Chesapeake Financial meeting, the board declared a quarterly dividend of $0.150 per share effective September 1, 2022, payable on or before September 15, 2022.
The company noted that this represents a 7.1% increase over the previous quarter. Currently, the Chesapeake stock has a 2.24% dividend yield. Significantly, the company has had 29 consecutive years of dividend increases.
Chesapeake Bank was recognized for the 15th consecutive year by American Banker magazine as a "Top 200 Community Bank" in the nation based on a three-year average return on equity.
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.
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