2007 Annual Report
A MESSAGE FROM THE PRESIDENT
While the national crises of sub-prime lending, liquidity and confidence in financial markets played out as headlines in 2007, The Cape Cod Five Cents Savings Bank derived no satisfaction from having foreseen the inevitability of the outcomes, but worked very hard to continue its supportive role in the community. And although Cape Cod Five's responsible lending standards were never compromised, we actively participated in efforts to help head off some of the damage.
We have worked vigorously at the federal, state and local level to encourage efforts to assist those negatively impacted by these macro trends. We continue to caution those involved in addressing this situation to focus on root causes and avoid creating solutions that will actually inhibit the capability of conscientious lenders to provide appropriate financing for legitimate requests.
Throughout this period influenced by irresponsible and inappropriate lending across the country, Cape Cod Five remained uniquely positioned and was able to continue its lending unabated. As a result, I am pleased to report that the Bank experienced a good 2007 in both residential and commercial mortgage lending.
Focusing on the Cape Cod economy as a whole, the Bank also recognized the particular trends that are negatively impacting the sustainability of our community. The Bank took a leadership position in sponsoring the Economic Summit coordinated by the Cape Cod Chamber of Commerce to identify and discuss the critical demographic and economic trends that will impact the quality of life here on the Cape. The Bank also co-sponsored a follow up session.
We recognize that many indicators are making it quite clear that the Nation, State and region are entering challenging economic times. However, we see inherent strengths in our economy and our Nation that with the combined efforts of the Federal, State and local governments, as well as those of the financial and business community, will enable us to weather this maelstrom. We feel that we will emerge stronger and hopefully wiser, and in the meantime, we will work collaboratively with others to help mitigate the human toll.
One way we can help is by continuing to work to succeed so that we remain a strong independent source of financial services and community support for all who call this wonderful peninsula home.
Looking back on the year, the Bank made significant progress toward many of its strategic milestones despite the economic environment.
2007 Accomplishments
CARE (Consult, Advise, Relate and Enrich)
• The Bank undertook an organization-wide effort to increase skills in understanding customers' needs and improving our ability to respond to them, always with our customers' best interests in mind.
Residential Lending
• For the 17th consecutive year, Cape Cod Five was number one in purchase mortgage loans made in Barnstable County.
• The Bank maintained its number two position in non-purchase mortgage loans made in the County.
• The Bank remains the number one lender in Barnstable County for MassHousing's affordable/workforce housing loans.
• The Bank closed 1,222 residential loans totaling $349 million.
• A responsible Reverse Mortgage advisory service and program was introduced.
Deposits and Branches
• The Bank's share of deposits in Barnstable County grew again, strengthening its position as the County's market share leader.
• The Bank added 1,715 new Consumer Households with checking accounts.
• The Bank broke ground on its 17th Branch in Dennis, slated to open April 2008.
Business Banking
• The Bank added 472 new Business relationships with checking accounts.
• "Getting to Know You" events, with many of the Bank's officers visiting local businesses, were held in Falmouth, Chatham and Sandwich.
Government Banking
• This department's business grew to 41 clients and, for the first time, peaked during the year at over $150 million in deposits.
Retirement Center
• Because retirement needs extend across multiple product, service and customer touch-points, the Bank devised a more integrated approach to serving this growing customer segment.
Wealth Management
• Trust and Asset Management exceeded $500 million in total assets and $3 million in total fee income.
• Cape Cod Five Investment Services exceeded $310 million in total assets under custody.
Commercial Lending
• The Commercial Loan portfolio grew to $348 million.
• Credit Quality remains strong.
Operational Efficiency and Improved Service
• The Bank undertook a Technology Assessment to map out its strategy for utilizing technology more effectively to deliver products and services to customers and to improve efficiencies in the organization.
• The Bank also worked on improving expense management, including renegotiations with key technology providers.
Community Involvement and Charitable Giving
• Support of the Cape Cod community will always be a priority as demonstrated in 2007 by donations of over $860 thousand to over 150 local organizations and individuals, including schools and scholarships. This is through the combined giving of The Cape Cod Five Cents Savings Bank Charitable Foundation Trust and the Bank.
• In addition, officers and employees at every level of the organization donate their time and talents to a wide variety of community organizations.
We have been privileged to serve the Cape Cod community, its residents and its businesses, and look forward to facing new challenges and opportunities as we continue our service in 2008 and beyond.
Dorothy A. Savarese
President and Chief Executive Officer
Treasurer's Message - Phillip W. Wong, Chief Financial Officer
Equal Housing Lender. Member 
