Chesapeake Financial Shares : Nd Qtr. 2022 Financials

Consolidated Balance Sheet

	Unaudited
			June 30, 2022	June 30, 2021
Assets
Cash and due from banks			$31,233,814	$34,021,036
Interest-bearing deposits in banks and federal funds sold			3,344,365	19,616,888
Securities available for sale, at fair value			501,860,558	542,890,782
Other investments, at cost			3,384,600	3,710,100
Loans held for sale			195,000	1,067,297
Small Business Administration Payroll Protection Program loans receivable, net of fees	9,545	32,314,532
Loans, net of allowance for loan losses of $7,226,323 as of June 30, 2022
and $7,700,738 as of June 30, 2021			689,836,686	575,845,497
Cash management accounts, net of allowance of $1,721,467 as of June 30, 2022
and $1,994,995 as of June 30, 2021			27,401,928	15,959,573
Commercial mortgage loan repurchase facilities			7,624,600	2,896,333
Premises and equipment, net			23,716,411	22,630,844
Accrued interest receivable			6,082,115	6,084,490
Bank-owned life insurance			17,579,856	17,158,938
Bank-owned annuity contract			3,587,528	3,585,893
Foreclosed assets			1,111,812	2,711,862
Other assets			25,080,374	12,236,608
Total assets			$1,342,049,192	$1,292,730,673
Liabilities and Shareholders' Equity
Deposits
Demand accounts			$332,949,958	$289,875,912
Savings and interest-bearing demand deposits			745,718,575	624,994,544
Certificates of deposits			112,666,334	164,849,862
Total deposits			$1,191,334,867	$1,079,720,318
Short-term debt			30,269,000	50,000,000
Trust preferred capital notes			5,155,000	5,155,000
Subordinated notes			20,000,000	20,000,000
Accrued interest payable			83,666	181,302
Other liabilities			9,975,057	7,998,601
Total liabilities			$1,256,817,590	$1,163,055,221
Shareholders' equity
Preferred stock, par value $1 per share; authorized
50,000 shares; none outstanding			$0	$0
Common stock, par value $5 per share, voting	June 2022	June 2021
Shares authorized	5,760,000	5,760,000
Shares outstanding	4,717,086	4,841,820	23,423,090	24,046,025
Common stock, par value $5 per share, non-voting;
authorized 635,000 shares; none outstanding			0	0
Additional paid-in capital			13,887,757	17,426,654
Retained earnings			83,829,898	72,328,725
Accumulated other comprehensive (loss) income			(35,909,143)	15,874,048
Total shareholders' equity			$85,231,602	$129,675,452
Total liabilities and shareholders' equity			$1,342,049,192	$1,292,730,673

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Consolidated Balance Sheet

			Unaudited
					June 30, 2022	December 31, 2021
Assets
Cash and due from banks				$31,233,814	$18,600,125
Interest-bearing deposits in banks and federal funds sold			3,344,365	2,189,615
Securities available for sale, at fair value				501,860,558	600,644,067
Other investments, at cost				3,384,600	5,547,600
Loans held for sale				195,000	618,000
Small Business Administration Payroll Protection Program loans receivable, net of fees	9,545	2,642,603
Loans, net of allowance for loan losses of $7,226,323 as of June 30, 2022
and $6,793,400 as of December 31, 2021				689,836,686	656,785,773
Cash management accounts, net of allowance of $1,721,467 as of June 30, 2022
and $1,426,204 as of December 31, 2021				27,401,928	26,377,378
Commercial mortgage loan repurchase facilities				7,624,600	5,084,305
Premises and equipment, net				23,716,411	22,779,715
Accrued interest receivable				6,082,115	6,253,845
Bank-owned life insurance				17,579,856	17,331,209
Bank-owned annuity contract				3,587,528	3,616,990
Foreclosed assets				1,111,812	1,278,062
Other assets				25,080,374	16,066,888
Total assets				$1,342,049,192	$1,385,816,175
Liabilities and Shareholders' Equity
Deposits
Demand accounts				$332,949,958	$313,857,448
Savings and interest-bearing demand deposits				745,718,575	671,804,955
Certificates of deposits				112,666,334	139,309,104
Total deposits				$1,191,334,867	$1,124,971,507
Short-term debt				30,269,000	99,046,000
Trust preferred capital notes				5,155,000	5,155,000
Subordinated notes				20,000,000	20,000,000
Accrued interest payable				83,666	112,818
Other liabilities				9,975,057	10,393,963
Total liabilities				$1,256,817,590	$1,259,679,288
Shareholders' equity
Preferred stock, par value $1 per share; authorized
50,000 shares; none outstanding				$0	$0
Common stock, par value $5 per share, voting	June 2022	December 2021
Shares authorized	5,760,000	5,760,000
Shares outstanding	4,717,086	4,729,475		23,423,090	23,484,300
Common stock, par value $5 per share, non-voting;
authorized 635,000 shares; none outstanding				0	0
Additional paid-in capital				13,887,757	14,806,975
Retained earnings				83,829,898	76,815,064
Accumulated other comprehensive (loss) income				(35,909,143)	11,030,548
Total shareholders' equity				$85,231,602	$126,136,887
Total liabilities and shareholders' equity				$1,342,049,192	$1,385,816,175

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Consolidated Statements of Income
Unaudited
	Three Months Ended
		June 30,
	2022	2021
Interest and Dividend Income
Interest and fees on loans	$7,841,108	$7,570,386
Interest on interest-bearing deposits and federal funds sold	9,313	8,527
Interest and dividends on securities available for sale	3,359,851	2,915,165
Total interest and dividend income	$11,210,272	$10,494,078
Interest Expense
Savings and interest-bearing demand deposits	$150,281	$142,466
Certificates of deposit	113,436	546,039
Short-term debt	8,016	8,692
Long-term debt and trust preferred capital notes	114,532	99,600
Total interest expense	$386,265	$796,797
Net interest income	$10,824,007	$9,697,281
Provision for loan losses	174,999	174,999
Net interest income after provision for loan losses	$10,649,008	$9,522,282
Noninterest Income
Trust and wealth management income	$1,067,018	$1,170,803
Service charges	229,693	176,411
Net gain on sales of securities available for sale	43,899	730,035
Mortgage banking income	476,896	574,590
Merchant services income, net	1,346,057	1,123,603
Cash management fee income	780,006	486,671
Other income	1,225,806	1,322,456
Total noninterest income	$5,169,375	$5,584,569
Noninterest Expense
Salaries	$5,215,639	$4,535,797
Employee benefits	1,316,064	1,225,778
Occupancy expense	819,305	822,294
Net loss on foreclosed assets	0	9,266
Provision for cash management account losses	60,000	30,000
Other expense	3,556,649	3,316,850
Total noninterest expense	$10,967,657	$9,939,985
Income before income taxes	$4,850,726	$5,166,866
Income tax expense	787,103	1,198,986
Net income	$4,063,623	$3,967,880

Earnings per share, basic	$0.861	$0.820
Earnings per share, diluted	$0.861	$0.818
Dividends per share	$0.140	$0.125

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Consolidated Statements of Income
Unaudited
	Six Months Ended
		June 30,
	2022	2021
Interest and Dividend Income
Interest and fees on loans	$15,818,774	$16,495,941
Interest on interest-bearing deposits and federal funds sold	12,254	21,287
Interest and dividends on securities available for sale	6,599,685	5,626,981
Total interest and dividend income	$22,430,713	$22,144,209
Interest Expense
Savings and interest-bearing demand deposits	$267,147	$327,323
Certificates of deposit	367,112	1,127,098
Short-term debt	156,613	71,868
Long-term debt and trust preferred capital notes	394,817	152,541
Total interest expense	$1,185,689	$1,678,830
Net interest income	$21,245,024	$20,465,379
Provision for loan losses	349,998	349,998
Net interest income after provision for loan losses	$20,895,026	$20,115,381
Noninterest Income
Trust and wealth management income	$2,201,729	$2,246,912
Service charges	457,042	343,057
Net (loss) gain on sales of securities available for sale	(3,420,785)	730,035
Mortgage banking income	1,093,259	1,420,384
Merchant services income, net	2,333,691	2,159,889
Cash management fee income	1,482,794	935,284
Other income	6,087,185	2,670,729
Total noninterest income	$10,234,915	$10,506,288
Noninterest Expense
Salaries	$9,538,260	$8,587,379
Employee benefits	2,698,140	2,419,937
Occupancy expense	1,686,360	1,627,103
Net loss on foreclosed assets	24,994	179,266
Provision for cash management account losses	120,000	60,000
Other expense	7,222,396	6,273,478
Total noninterest expense	$21,290,150	$19,147,163
Income before income taxes	$9,839,791	$11,474,506
Income tax expense	1,502,710	2,243,747
Net income	$8,337,081	$9,230,759

Earnings per share, basic	$1.765	$1.909
Earnings per share, diluted	$1.762	$1.903
Dividends per share	$0.280	$0.260

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