Cape Cod Five - December 31, 2010 Financial Results
Solid net income results continued to grow capital and reserves
The Cape Cod Five Cents Savings Bank reports that solid net income results allowed for the continued growth in capital and loan loss reserve levels. Net income of $12.6 million was recorded for the year-ended December 31, 2010 which was 52.7% ahead of the $8.2 million reported last year; with an annualized return on average assets of 65 basis points. The 2010 net income allowed the Bank’s capital to grow to $194.9 million, a $12.5 million or 6.9% increase compared to December 31, 2009 continuing the Bank’s well capitalized position under all regulatory definitions. The loan loss reserve increased to $19.3 million providing for a coverage ratio of 1.34% of loans at December 31, 2009 up from $18.0 million or 1.32% of loans at December 31, 2009. The Bank recorded a loan loss provision for the year-ended 2010 of $3.3 million, down from $7.3 million in 2009.
Total assets ended the year at $1.97 billion, an increase of $56.8 million or 3.0% for the year-ended December 31, 2010 as compared to December 31, 2009. Deposits grew to $1.70 billion at December 31, 2010, an increase of $41.5 million or 2.5% from December 31, 2009. The Bank completed another year of strong residential loan activity closing $705.0 million in loans in the year-ended December 31, 2010, for both its portfolio and the secondary market, a $95.0 million decline from the historic volume recorded in 2009. The Bank’s gross loan portfolio of $1.45 billion increased $84.4 million or 6.2% compared to December 31, 2009. This growth was principally the result of the $51.6 million or 6.6% increase in the residential portfolio. This increase was also aided by modest growth in outstanding commercial loans and partially offset by a modest decline in home equity loans.
Trust and Asset Management had $727.8 million in assets as of December 31, 2010, a 15.2% increase compared to the December 31, 2009 level of $631.6 million, a reflection of the increase in new account activity as well as asset appreciation resulting from the continuation of the recovery in the equity markets.
Dorothy A. Savarese, President and CEO, noted: “There was success across all business lines. The Bank continued in its commitment to serve its communities, making a total of $804 million in loans to consumers and businesses, growing its Trust assets under management and maintaining its number one position in deposit market share in Barnstable County. The increase in customers and revenue made it possible for the Bank to add 13 new job positions over the past year. In addition, between the Bank and its Charitable Foundation, over $750,000 was donated to non-profits on the Cape and Islands. In a new initiative, the Bank opened a Representative Office on Nantucket and secured regulatory approval to open a branch there. The Bank, like individuals and other businesses, continues to adjust to a world with constrained economic growth and much more regulation. This is a time for the careful balancing of risk and growth. However our mission of providing responsible financial products to our customers, making a positive impact on our community, and carefully managing our risk profile remains unchanged.”
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