Press Releases

Chesapeake Financial Shares reports record earnings

For additional information please contact
Jeffrey M. Szyperski, President & CEO
Chesapeake Financial Shares, Inc.
804-435-4249 or 1-800-434-1181

On behalf of Chesapeake Financial Shares, Inc., Jeffrey M. Szyperski, Chairman of the Board & CEO, reported earnings for calendar year 2008 of $4,600,907, representing a 5.9% increase over 2007 earnings. Chesapeake Financial Shares is the parent company of both Chesapeake Bank and Chesapeake Investment Group. The reported earnings per share were $1.60 fully diluted as compared to $1.49 in 2007--a 7.4% increase. “Given the current economic environment and the troubles many large institutions are having, we are extremely pleased to be able to report these earnings,” stated Szyperski. “Many of the issues that have caused the pervasive repercussions in our financial system mainly occurred at the national and international levels. As a community bank that has stuck true to its mission and purpose, our ability to thrive is a direct result of the strength of the communities in which we serve.”

“CFS ended the year December 31, 2008 with total assets of $537,874,027, an increase of 11% over 2007. Despite continuous media reports to the contrary, we still have strong loan demand and are lending money. We actually had an increase in net loans of 9% over 2007, ending with $363,632,894 at December 31, 2008,” Szyperski commented. “In addition to the net overall growth in loans, the loan portfolio remains strong, with a loan loss reserve of 1.3% of total loans at yearend.”

In addition to increased earnings, CFS was able to increase dividends paid to shareholders by 16% over 2007. During 2008 CFS paid $.405 per share as compared to $.35 per share in 2007.

CFS has opted not to even apply for federal bailout funds under the Troubled Asset Relief Program (TARP). Szyperski noted that the bank, given its profitability and strong balance sheet, did not need any government funds, nor did he feel it is in the best interests of the shareholders to participate in that program.

The other subsidiary of Chesapeake Financial Shares, Chesapeake Investment Group, also had a strong year. “Given the high level of volatility in the stock market, CIG was able to bring in over $40 million of new wealth management business as investors sought the safety of bringing their money management closer to home. Investors were also edified by the high-level investment expertise brought to the table by CIG.

“Though 2008 was a record breaking year, we by no means take for granted the current economic environment and how 2009 looks. We feel as though we are in a strong position going into this recession to be able to weather the current economic storm. It is clearly something that we do not want to underestimate and are taking very seriously,” Szyperski continued.

For more information about Chesapeake Financial Shares stock (CPKF), please go to Chesapeake Bank’s website at www.chesbank.com. Chesapeake Financial Shares remains a publicly traded company and is traded on the over-the-counter market.
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