Chesapeake Financial Shares Reports First Quarter Financials and Declares Dividend

Rhea-AI Summary

Chesapeake Financial Shares reported a net loss of $4.45 million in Q1 2025, with earnings per share at $(0.942) compared to $0.583 in Q1 2024. The company's total assets grew 5.4% to $1.61 billion, while nonperforming assets increased to 0.472% from 0.328%.

The quarterly loss was a strategic decision to reposition approximately $75 million of investment securities into higher yields, resulting in a one-time loss of about $8 million post-tax. The company also secured $25 million in subordinated debt to boost earnings and support a $4 million stock buy-back initiative.

Key highlights:

• Declared quarterly dividend of $0.16 per share, payable June 15, 2025
• Maintained status as "Top Performing Community Bank" for 17th consecutive year
• Extended dividend increase streak to 32 years
• Current dividend yield: 3.33%

Positive

• 32 consecutive years of dividend increases, showing strong dividend history
• 5.4% increase in total assets from year-end, reaching $1.6B
• Current dividend yield of 3.33%
• Strategic repositioning of $75M investment securities for higher yields
• Secured $25M in subordinated debt for earnings enhancement
• Announced stock buyback program up to $4M

Negative

• Net loss of $4.45M in Q1 2025 vs profit in Q1 2024
• Negative EPS of $(0.942) vs $0.583 in Q1 2024
• Increase in nonperforming assets to 0.472% from 0.328% at year-end
• $8M post-tax loss from investment securities repositioning

A "Top Performing Community Bank" in the U.S. for the seventeenth consecutive year

KILMARNOCK, VA / ACCESS Newswire / April 29, 2025 / On behalf of Chesapeake Financial Shares, Inc. (parent company of both Chesapeake Bank and Chesapeake Wealth Management), Jeffrey M. Szyperski, Chairman of the Board and CEO, reported financial results for the first quarter of 2025, reporting a net loss of $4,450,120. The reported earnings per share were $(0.942) fully diluted as compared to $0.583 for the first quarter of 2024. Total assets ended the quarter at $1,607,182,875, a 5.4% increase from year-end. Nonperforming assets were 0.472% as of March 31, 2025 compared to 0.328% at year-end.

"The first quarter loss was a proactive move by us to reposition approximately $75 million of investment securities into much higher yields. This is a one-time loss of approximately $8 million (post tax) in order to enhance the long-term yield of our investment portfolio. Additionally, we closed on $25 million in subordinated debt as part of a strategy to increase earnings as well as provide additional capital to support a stock buy-back initiative of up to $4 million. We strongly feel these moves will greatly enhance long-term shareholder value," said Szyperski.

At the April 18, 2025 Chesapeake Financial Shares Board of Directors meeting, the Board declared a quarterly dividend of $0.16 per share effective June 1, 2025, payable on or before June 15, 2025. The company has increased its dividend for 32 consecutive years. The stock currently has a 3.33% dividend yield.

For more information about Chesapeake Financial Shares stock (CPKF), or to receive daily e-mail alerts of our stock price, see www.chesapeakefinancialshares.com. The company is followed by Zacks Investment Research, and a copy of their report can also be found on this site or at www.zacks.com. Chesapeake Financial Shares is an over-the-counter, publicly traded stock. Follow Chesapeake Bank on Facebook, Instagram, Threads, X, LinkedIn, and YouTube.

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Contact: Jeffrey M. Szyperski 1-800-434-1181

SOURCE: Chesapeake Financial Shares Inc.

View the original press release on ACCESS Newswire

FAQ

Why did Chesapeake Financial (CPKF) report a loss in Q1 2025?

Chesapeake Financial reported a Q1 2025 loss due to a strategic repositioning of $75 million in investment securities to achieve higher yields. This one-time loss of approximately $8 million (post-tax) was made to enhance long-term investment portfolio performance.

What is CPKF's dividend payment for Q2 2025?

Chesapeake Financial declared a quarterly dividend of $0.16 per share, payable on or before June 15, 2025, with an effective date of June 1, 2025. The stock currently offers a 3.33% dividend yield.

How will CPKF's $25 million subordinated debt impact shareholders?

The $25 million subordinated debt is part of a strategy to increase earnings and provide capital for a $4 million stock buy-back program, aimed at enhancing long-term shareholder value.

What are CPKF's key financial metrics for Q1 2025?

In Q1 2025, CPKF reported total assets of $1.6 billion (up 5.4% from year-end), nonperforming assets of 0.472%, and earnings per share of -$0.942 compared to $0.583 in Q1 2024.

How long has CPKF increased its dividend payments?

Chesapeake Financial has consistently increased its dividend for 32 consecutive years, demonstrating a strong track record of growing shareholder returns.