Cape Cod Five 2011 Financial Results

Published on Monday, February 06, 2012

Average annual assets grew 6.7 percent to over $2.1 billion; average annual gross loans surpassed $1.5 billion; capital level exceeded $200 million

The Cape Cod Five Cents Savings Bank announced its financial results for the full year of 2011. The results showed continued growth and steady profitability. Assets increased 6.7 percent to $2.11 billion, gross loans outstanding grew 9.5 percent to $1.58 billion and the capital level was increased by $13.1 million (6.7 percent) to $208.0 million. The Bank continues to be categorized as well capitalized under all quantitative regulatory definitions.

Net income for the year was $13.0 million, a 3.1 percent increase from 2010. Return on average assets for 2011 held essentially steady at 64 basis points compared with the 65 basis points recorded in 2010. To achieve these results a $1.1 million decrease in non-interest income, due mainly to lower gains on sale of mortgage loans, and a $2.8 million increase in operating expense, principally driven by higher costs of regulatory compliance, staff increases, and costs related to the bank’s expansion initiative on Nantucket, were more than offset by an increase in net interest income and a decrease in the loan loss provision as loan quality continued to be high. Net interest income increased $2.4 million to $58.8 million as average earning assets grew and interest margins were stable. The loan loss provision was decreased by $2.1 million and the loan loss reserve stood at $17.9 million, for a gross loan coverage ratio of 1.13 percent, at December 31, 2011.

Dorothy A. Savarese, President and CEO, noted: "We are obviously pleased that through hard work and a focus on customer service by our employees, the Bank was able to increase its customer base and generate good results despite these times of economic and regulatory uncertainty.”

Growth in deposits (up 7.4 percent, or $126.7 million) and proceeds from a decrease in investments of $9.9 million, funded the Cape Cod Five’s continued commitment to lending on the Cape and Islands, as net loans increased $138.3 million to $1.56 billion. Commercial mortgage and industrial loans increased 12.6 percent from $397.1 million to $447.2 million. The bank funded a total of $641.1 million in residential mortgage loans during the year ended December 31, 2011, for both its portfolio and sale on the secondary market. The Bank’s residential mortgage portfolio increased $90.3 million to $997.9 million. The Bank’s Trust and Asset Management Department continued to serve the community’s investment management needs, ending the year with $760 million in total assets managed, a 4.4 percent increase from $728 million at December 31, 2010.

President and CEO Savarese adds, “We are pleased to announce these results which reflect our commitment to our customers and the community as we make more loans, take more deposits and help more people manage their investments. We continued to invest in the infrastructure and people we need to offer the top-notch service our customers expect. Furthermore, we added significantly to our capital level, solidifying our position as a strong local bank that is ready, willing and able to serve our communities.”


Founded in 1855, The Cape Cod Five Cents Savings Bank (www.capecodfive.com) is an independent, state-chartered mutual savings bank with over $2 billion in assets. Through its 20 offices, The Cape Cod Five offers a broad range of financial products and services to customers living on Cape Cod and the surrounding areas. Services include consumer and commercial banking products; residential mortgages; investment management and trust services.