Cape Cod Five- September 30, 2009 Financial Results
Financial performance continues to be solid given the constraints of the economy.
The Cape Cod Five Cents Savings Bank reports that for the nine months ending September 30, 2009 it posted strong core earnings that enabled it to add significantly to loan loss reserves and absorb increased FDIC premiums. The Bank's net income of $5.7 million for the nine months ended September 30, 2009 was down 22.0% compared to the $7.3 million in net income for the comparable period last year, but the first nine months of 2009 results are after increased expense of $4.7 million for loan loss reserves and $2.4 million in increased FDIC premiums. The solid core earnings enabled the Bank's capital to grow to $180.6 million, a $10.2 million or 6.0% increase compared to September 30, 2008. The Bank continues to be well capitalized under regulatory definitions.
The total loan loss provision for the nine month period was $5.8 million as the Bank increased the loan loss reserve to $16.9 million or 1.27% of loans up from 0.88% at September 30, 2008 in recognition of the difficult economy.
The Bank reports that total assets increased $140.1 million for the twelve months ended September 30, 2009 to end the period at $1.91 billion, up 7.9% compared to September 30, 2008. Deposits grew to $1.64 billion as of September 30, 2009, an increase of $148.7 million or 10.0% from September 30, 2008. The Bank experienced very strong residential loan activity closing $635.0 million in loans during the nine months ended September 30, 2009, for both its portfolio and the secondary market, representing a 103.2% increase in volume over the same period in 2008. The Bank's gross loan portfolio of $1.33 billion contracted 2.0% compared to September 30, 2008. Shrinkage in the residential portfolio (down 6.3%) due to customers seeking sold fixed rate loans in the low rate environment was not exceeded by growth in home equity loans (up 11.5%) or modest growth in commercial loan volume (up 3.3%).
Trust and Asset Management had $611.8 million in assets as of September 30, 2009, a 17.6% increase compared to September 30, 2008, which is reflective of increased new account activity as people reassess their financial relationships as well as asset growth due to the improvements in the equity markets.
Dorothy A. Savarese, President and CEO, noted: "The economic environment remains somewhat tenuous. There are signs of improvement in the macro economy, but high levels of unemployment continue and we are heading into the winter which is traditionally more challenging in our region. As far as the Bank's financial performance, it continues to be solid given the constraints of the economy and we are fortunate that our earnings continue to add to our reserves and capital. On the regulatory side, we will continue to support efforts that enable community banks like the Cape Cod Five to pursue their mission of responsibly providing financial products and services in their communities."
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