CPKF's 2024 fourth quarter net earnings increased $2.1 million, or 236%, to $3.0 million year over year, while diluted EPS rose $0.45, or 235%, to $0.64. This was better than our estimate, which had called for a $1.6 million increase in net earnings to $2.5 million and a $0.35 increase in diluted EPS to $0.54. We are increasing our diluted EPS estimate for 2025 by a nickel from $2.45 to $2.50, representing a 3% gain over 2024's actual EPS of $2.42. We expect good gains in net interest income in 2025 as solid loan growth will be aided by better prospects for CPKF's net interest margin. We also expect continuing growth in the contribution to revenues and earnings of CPKF's specialty lines of business. Merchant services income should benefit as CPKF expands its footprint in this business, while cash management should profit from the addition of a new sales person. Higher compensation costs due to increases in full-time equivalent employees will be a headwind, but well-controlled non-compensation costs should provide a partial offset. CPKF raised the quarterly dividend by 3% to $0.16 per share and has raised its annual dividend payment every year for the past thirty-two years since 1991. In 2024 for the seventeenth consecutive year, CPKF was included in the American Banker magazine list of the "Top 100 Community Banks". Chesapeake Bank again garnered a top ranking in the American Banker's list of "Best Banks to Work for", and had a #41 spot in 2024, out of the 90 banks listed.
