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Cape Cod Five June 30, 2011 Financial Results 

August 4, 2011

Improved earnings and solid capital ratios

Cape Cod Five’s net income for the first half of 2011 was $6.7 million exceeding last year’s comparable period results of $5.6 million by $1.1 million or 20.7%. Return on average assets for the first half of 2011 was 69 basis points up from the 58 basis points recorded for the comparable prior year period. Increases in net interest income and non-interest income combined with a decrease in loan loss provision were the primary drivers for the improvement and more than offset the rise in operating expenses. With growth in average earning assets and stable interest margins, net interest income increased to $28.9 million in the first half of 2011. Strong growth in Trust & Asset Management revenue contributed to the increase in non-interest income. Operating expenses were up $2.1 million or 8.4% driven principally by increases in staff, the Nantucket initiative and increasing costs of regulatory compliance. The loan loss reserve calculation methodology supported a year-to-date loan loss provision of $250,000 down significantly from the $3.0 million for the comparable period last year. The loan loss reserve stands at $17.6 million and provides a gross loan coverage ratio of 1.16%.

The Bank’s total assets were $2.0 billion up $45.9 million or 2.3% for the six month period since December 31, 2010 primarily as deposits increased $46.7 million. Capital has grown to $201.6 million increasing from $194.9 million at December 31, 2010; the Bank continues to be categorized as well capitalized under all quantitative regulatory definitions. During the first half of 2011, the Bank’s investments decreased $27.7 million. With the growth in deposits and capital and proceeds from the decrease in investments, Cape Cod Five continued its commitment to lending on the Cape and Islands as net loans increased $72.3 million to $1.50 billion with commercial and residential mortgage loans each contributing. The commercial and industrial and commercial mortgage loan portfolios increased $59.3 million or 14.9% from $397.1 million to $456.4 million during the first six months of 2011. The Bank’s residential mortgage portfolio increased $13.5 million while closing $257.7 million in residential mortgage loans during the six months ended June 30, 2011, for both its portfolio and the secondary market.

The Bank’s Trust and Asset Management Department had $762.1 million in total assets as of June 30, 2011, up 4.7% when compared with $727.8 million at December 31, 2010. Trust and Asset Management earned $2.7 million in total revenue for the six months ended June 30, 2011, up 17.8% from the $2.3 million in the comparable period last year.

Dorothy A. Savarese, President and CEO, noted: “We are pleased with our improved financial results, but we remain very cautious in regard to the fragile economic recovery. As we have said for some time, job growth, housing, and government debt levels still need to find long term solutions to create a stable environment that promotes a healthy economy. As always, we appreciate the confidence that our customers and communities places in us, a locally managed, conservative community bank.”