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Chesapeake Financial reports $4.27 million in earnings in 1Q with extremely good asset quality

Chesapeake Financial Shares Inc (OTCQX:CPKF), the parent company of Chesapeake Bank and Chesapeake Wealth Management, posted first-quarter earnings of $4.27 million that showed asset quality remains strong. When adjusted for Paycheck Protection Program fees taken in the 1Q of 2021, this represents a 13.6% increase over the 1Q of 2021, noted the company. For the period ended March 31, 2022, the Kilmarnock, Virginia-based community bank reported earnings per share of $0.902 fully diluted, compared to earnings per share of $1.085 fully diluted for the 1Q of 2021. READ: Chesapeake Financial reports record earnings for 2021 The bank’s total assets at end of the quarter stood at $1,346,135,792. “Asset quality remains extremely good especially as we slowly come out of the pandemic and related shutdowns,” Chesapeake Bank CEO Jeffrey Szyperski said in a statement. The bank’s nonperforming assets were at 0.457% on March 31, 2022, compared to 1.026% on March 31, 2021. “Specialty lines of business have continued their recovery through the first quarter, and it is anticipated they will continue this same trend,” added Szyperski. “Mortgage originations still have a strong, consistent flow though at a lower level than 2021. The net interest margin was 3.53% for the quarter ended March 31, 2022.” At the April 15, 2022, Chesapeake Financial meeting, the Board declared a quarterly dividend of $0.140 per share effective June 1, 2022, payable on or before June 15, 2022. Currently, the Chesapeake stock has a 1.92% dividend yield. Significantly, the company has had 29 consecutive years of dividend increases. 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 Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive