Cape Cod Five releases Annual Report
Cape Cod Five Cents Savings Bank reported another year of profitablity at its Annual Meeting last week. Dororthy Savarese, President and CEO, addressed the assembly of corporators, bank trustees and officers at the meeting at the Wequassett Resort and Golf Club, and reported that throughout 2007 the bank made significant progress despite a year filled with economic challenges. The bank maintained its position as the No. 1 purchase mortgage lender in Barnstable County and strengthened its position as the county's leader in deposit market share with 25.7%. The bank recorded net income of $9.1 million, allowing the bank's capital to grow 6.9% to $165 million, and the capital-to-asset ration to improve to 9.9% as compared to 9.7% the prior year.
As detailed in the Annual Report, net income of $9.1 million was 7% below the prior year due to the challenges created by a flat and at times inverted yield curve, increases in non-interest expense attributed to expansion costs and normal infllationary increases, and increased provision for loan losses due to growth in the loan protfolio and a rise in net charge-offs. The bank experienced strong net loan growth in 2007 with net loans increasing $86 million to $1.3 billion. Commercial loans grew 15.2% to $348 million and increased to 28.6% of total loans. Residential loans grew by $41 million. Total assets grew $73 million to finish the year at $1.65 billion, up 4.6% from Dec. 31, 2006. Deposits exceeded $1.4 billion at year end, an increase of $64 million or 4.8% over the prior year. Trust and Asset Management exceeded $500 million in assets under management and contributed $3 million in total fee income during 2007.
Savarese spoke on the many factors influencing the challenges present in today's economy, noting "the human toll this downturn has taken" and expressed cautious optimism by saying that "there will be an end to this cycle."
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