Cape Cod Five - March 31, 2009 Financial Results
Strong deposit growth, busy lending areas
and grew reserve for loan losses and capital.
The Cape Cod Five Cents Savings Bank reported that total assets increased $37.3 million during the quarter to end the period at $1.82 billion, up 2.1% compared to December 31, 2008. Deposits grew to $1.55 billion as of March 31, 2009, an increase of $44.2 million or 2.9% from December 31, 2008. On the loan side, the Bank continued to experience strong net loan growth on the consumer (up 4.7%) and commercial (up 3.9%) side, while the residential portfolio (down 2.6%) shrunk slightly as more customers elected to refinance to fixed rate secondary market loans. As a result, net total loans decreased nominally from $1.37 billion to $1.36 billion during the quarter. The residential lending area closed $204.6 million in loans during the three months ended March 31, 2009, for both its portfolio and the secondary market, representing a 74.9% increase in volume over the same period in 2008.
The Bank reported that for the three months ending March 31, 2009 it delivered solid core earnings that enabled it to be profitable while adding significantly to loan loss reserves and incurring increased FDIC premiums. The Bank's net income of $1.6 million for the three months ended March 31, 2009 was down 31.5% compared to the $2.4 million in net income for the comparable period last year, but the first quarter 2009 results are after increased expense of $2.1 million for loan loss reserves and $0.8 million in in FDIC premiums. The Bank's capital grew to $175.1 million, at March 31, 2009. The Bank continues to be well capitalized under all regulatory definitions.
The loan loss provision for the three month period was $2.3 million as the Bank increased the loan loss reserve to over $14.8 million based on management's assessment of its loan portfolio quality in the current challenging economic environment. With increasing unemployment and a contraction in consumer spending, even the most carefully underwritten loan portfolio comes under strain over time.
Trust and Asset Management had $494.2 million in total assets as of March 31, 2009, a 2.0% decrease compared to December 31, 2008, which is reflective of the challenging market environment of the past several months. Trust and Asset Management earned $0.8 million in total revenue for the three months ended March 31, 2009, up nominally from the comparable period last year.
Dorothy A. Savarese, President and CEO, noted: "We all know that these are challenging times and continuing to strengthen the Bank's balance sheet is of the highest importance so that we can continue to support our customers and our community. Simply put, the Bank is well capitalized and highly liquid."
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