mine does the same. Large payees who receive checks will have the payee noted after the check number, probably because of the electronic process they use when they deposit the check. Others just have the check number. Shows the same on the statement.
Cheque reading hardware can only read the MICR encoding on the bottom of the cheque, so handwriting or even typing on cheques is invisible to it. So any cheques processed in this way have limited available information, basically just processed date, CHQ #, amount ,and bank/branch/account # it is drawn on.
I really cannot see any bank ever trying to decrypt the writing on cheques, given a cheque is basically just an image in this context it would have to be some sort of character recognition and trying to do that with handwriting is pretty error prone.
True, but somewhere in the chain of events there is likely an electronic record of the payee's name who cashed the check. Be nice if that could be fed back to the check writer's bank. Although it's probably not that simple, but maybe someday they can figure it out.