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Cape Cod Five September 30, 2011 Financial Results

Improved earnings and solid capital ratios

Cape Cod Five’s net income for the first nine months of 2011 was $9.5 million exceeding last year’s comparable period results of $9.0 million by $560,000 or 6.3%. Return on average assets for the first nine months of 2011 was 64 basis points up from the 62 basis points recorded for the comparable prior year period. Increases in net interest income and a decrease in loan loss provision of $1.4 and $2.0 million, respectively, more than offset the modest decrease of $199,000 in non-interest income and the $2.2 million rise in operating expenses. With growth in average earning assets and stable interest margins, net interest income increased to $43.7 million in the first nine months of 2011 up from $42.2 million last year. The loan loss reserve calculation methodology supported a year-to-date loan loss provision of $1.0 million down from the $3.0 million for the comparable period last year. The loan loss reserve stands at $17.8 million and provides a gross loan coverage ratio of 1.16%. The modest decrease in non-interest income resulted from a decrease in net gain on sale of mortgage loans more than offsetting the strong growth in Trust & Asset Management revenue. Operating expenses were up $2.2 million or 5.7% driven principally by increases in staff and costs related to the Nantucket initiative and increasing regulatory compliance.

The Bank’s total assets were $2.08 billion up $101.7 million or 5.1% for the nine month period since December 31, 2010 primarily as deposits increased $91.8 million. Capital has grown to $204.6 million increasing from $194.9 million at December 31, 2010; the Bank continues to be categorized as well capitalized under all quantitative regulatory definitions. With the growth in deposits and capital during the first nine months of 2011, investments increased $8.2 million and Cape Cod Five continued its commitment to lending on the Cape and Islands as net loans increased $91.2 million to $1.52 billion with commercial and residential mortgage loans each contributing. The commercial and industrial and commercial mortgage loan portfolios increased $43.4 million or 10.9% from $397.1 million to $440.5 million during the first nine months of 2011. The Bank’s residential mortgage portfolio increased $47.9 million while closing $416.0 million in residential mortgage loans during the nine months ended September 30, 2011, for both its portfolio and the secondary market.

The Bank’s Trust and Asset Management Department had $720 million in total assets as of September 30, 2011 as compared with $728 million at December 31, 2010. Trust and Asset Management earned $4.0 million in total revenue for the nine months ended September 30, 2011, up 17.6% from the $3.4 million in the comparable period last year.

Dorothy A. Savarese, President and CEO, noted: “While we are pleased with our year to date financial results, the increased concern about international economic stability and sovereign debt issues makes us very cautious in regard to the economic situation. We probably face a long slog through this recovery. As always, we appreciate the confidence that our customers and communities place in us, a locally managed, conservative community bank.”