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Cape Cod Five - June 30, 2010 Financial Results

Strong earnings and solid capital ratios.

Cape Cod Five’s net income for the first half of 2010 was $5.6 million which exceeded last year’s comparable period results of $3.2 million by $2.3 million or 71.6%. Return on average assets for the first half of 2010 was 58 basis points, a solid improvement when compared with the 35 basis points recorded for the comparable prior year period. Increased net interest income and a decrease in both loan loss provision and operating expenses were the primary drivers for the improvement in net income. With growth in earning assets and higher interest margins, net interest income increased $2.7 million or 10.5% to $28.1 million in the first half of 2010. Management’s assessment of the possibility of future losses in its loan portfolio supported a year-to-date loan loss provision of $3.0 million which was down from last year’s level of $4.3 million. The Bank’s loan loss reserve stands at $19.8 million and provides for a gross loan coverage ratio of 1.41%, up from 1.15% a year ago June 30, 2009.

The Bank’s total assets were $1.96 billion increasing $44.4 million or 2.3% for the six month period since December 31, 2009 as deposits and borrowings increased $24.1 and $15.0 million, respectively. Capital has grown to $188.5 million increasing from $182.4 million at December 31, 2009; the Bank continues to be categorized as well capitalized under all quantitative regulatory definitions. During the first half of 2010, the Bank’s investments increased $9.7 million. Cape Cod Five continues its commitment to lending to credit-worthy consumers and businesses as net loans increased $40.5 million from $1.34 billion to $1.38 billion with residential mortgage, commercial and home equity loans each contributing. As the leading mortgage lender on the Cape, the Bank closed $275.4 million in residential mortgage loans during the six months ended June 30, 2010, for both its portfolio and the secondary market. The commercial and industrial and commercial mortgage loan portfolios increased $16.0 million or 4.1% from $395.2 million to $411.3 million during the first six months of 2010.

The Bank’s Trust and Asset Management Department had $641.1 million in total assets as of June 30, 2010, up 1.5% and 15.4% when compared to December 31, 2009 and June 30, 2009, respectively, reflective of the addition of new clients and the recovering market environment over the measured periods. Trust and Asset Management earned $2.3 million in total revenue for the six months ended June 30, 2010, up 37.7% from the $1.7 million in the comparable period last year.

Dorothy A. Savarese, President and CEO, noted: “Bank results for the first six months of 2010 were substantially better than the comparable period last year as the Bank was able to produce strong earnings arising from good residential lending volume, modest increases in commercial and industrial lending, continued growth in our wealth management services income, and lower expenses. As always, we appreciate the confidence that our customers and the community places in us, a locally managed, conservative community bank."