2019 ANNUAL REPORT
562
$3.6 Billion
Employees
Assets
$1.2 Billion
26
Assets Under Management
165
Years Serving the Community
Locations
$1.5 Million Annual Charitable Giving
Data as of 12/31/2019
MESSAGE FROM THE CHAIR AND CEO
For Cape Cod 5, 2019 was a year marked by adapting,
FINANCIAL STRENGTH & ACCOMPLISHMENTS
embracing change and
driven by the strong earnings, and the Bank remains well
innovation, and being willing
The Bank achieved record
capitalized according to all
to learn and try new things.
earnings with net income of
regulatory definitions.
We also made it clear what will
$26.9 million, representing a
always remain the same: our
9.5% increase over the prior
core values of fairness, mutual
year. This equated to a return
respect and the highest ethical
on average assets of 0.76%,
standards and trustworthiness.
which marks a 13-year high
GROWTH & INVESTMENTS IN THE FUTURE
for the Bank. This was driven
We started 2019 by cutting the
Never did we imagine that
by strong business line results
ribbon on our new Banking
those two elements—adapting
as our employees worked
Center at The Pinehills in
to change and standing firmly
together to serve the needs of
Plymouth and ended the
on our core values—would be
our customers while leveraging
year with the opening of our
drawn on in such a dramatic
the important advancements
Hyannis Route 132 Banking
way as they have been for the
we’ve made in digital
Center. We also announced
last several months. 2020 has,
technologies and processes.
plans for a full-service location
so far, been a year like no other.
2
increased to $355.7 million,
in Provincetown, scheduled to
Therefore, we feel compelled to
Total assets grew by 6.5%,
include the first quarter of this
ending the year over $3.6
year in this first-ever digital-
billion, driven by strong growth
One of the more visible
only Annual Report.
in both loans and deposits.
strategic accomplishments for
Residential and consumer
Cape Cod 5 in 2019 was the
While it may feel like anything
loan volume of $1.1 billion
completion of HQ5—our new
from 2019 might be a lifetime
marked an all-time high, and
headquarters in Hyannis—which
ago given the dramatic and
the commercial loan portfolio
will enable us to advance all
unwelcome change that has
totaled $816 million at year
of our strategic goals and
upended our world, from our
end, up 8.3% for the year.
support our customers and
perspective, our financial
Deposits increased 8.1% for the
community for decades to
strength and progress toward
year, representing our highest
come, and stands as a pillar of
goals within that prior time
deposit growth rate since 2012
our environmental stewardship.
strengthened our ability to
as we gained market share in
address the challenges we are
virtually every market in which
Throughout the year, the Bank
now facing and support our
we have a Banking Center.
continued to expand its ability
customers, communities and
Assets under management
to serve as our customers’
employees during this time. So
totaled $1.2 billion, up 16.4%
trusted advisor through
there is merit in touching on
year-over-year as a result of
the expansion of our digital
some of the highlights.
strong market performance
capabilities and offerings. We
and new business. Capital
worked to further enhance
open this year.
While it may feel like anything from 2019 was a lifetime ago given the dramatic and unwelcome change that has upended our world, from our perspective, our financial strength and progress toward goals within that prior time strengthened our ability to address the challenges we are now facing and support our customers, communities and employees during this time.
the Bank’s culture and were
many alternate methods of
our region and its residents—
proud to once again be named
banking with us—online, via
as well as the 560 innovative
one of the Boston Globe’s Top
mobile and through our new
and committed employees of
Places to Work and one of
fleet of ATMs—has empowered
Cape Cod 5. And it reminds us
American Banker’s Best Banks
our customers to continue to
of the fact that the only way
to Work For.
carry out most of their banking
that we get through this is
needs safely from their home
together. Our promise is that
or office or by visiting us at a
we will continue to be here
drive-up.
for you today, tomorrow and
LOOKING AHEAD The current economic, societal
every day. Just as we have been
and public health stresses
We are committed to
throughout our 165 year history.
make us feel even more
continually looking for
committed to our mission as a
opportunities that have and will
responsible employer, trusted
arise to carry out and expand
financial partner and corporate
our mission. As challenging and
citizen. All the effort that has
difficult this time is for so many,
been invested over the last
it has shone a bright light on
Dorothy A. Savarese
several years into providing
the strength and resilience of
Chair & CEO, Cape Cod 5
With gratitude,
3
201 9 COM M U N IT Y IM PAC T Cape Cod 5’s accomplishments in 2019 strengthened our ability to address the challenges we are now facing—as a community and a nation—and expanded the foundation upon which we are building our forward-leaning efforts. The advancements in technology and
Our financial strength, long-standing
investments in the future made during
resiliency and the tireless dedication of
the previous year have allowed us to very
our employees will continue to enable us
quickly adapt and evolve to meet our
to stand by you as we navigate through
customers’ and communities’ needs during
this difficult time together.
the COVID-19 pandemic and its impact.
4
Community Commitment
Community Commitment Community Commitment
NGK I N G B A NBKA IN
Community Banking
5 WAYS OF ENGAGEMENT BANKING
BUSINESS BANKING
LEADERSHIP BUSINESS
LE
Community Commitment
NEES SS S BUSINESS BBUUSSI IN
Responsible Business Practices
E D U C AT I O N P HLIE LA AN Y DTEHRRSO HPI P
ONLINE
PHILANTHROPY
N LIIO NN E E D UO C AT
LEADERSHIP
Corporate Leadership and Volunteerism
BUSINESS
E D U C AT I O N
Community Commitment
Advancement of Financial Know-How
PSHI INLE ASNST H R O P Y BU
P H I LOANNLTIH NR EO PY
PHI
Philanthropy
PHILANTHROPY
5
2019 COMMUNITY IMPACT IN EACH OF OUR 5 AREAS OF FOCUS
Accessible Housing
$163,265
Donated to Accessible Housing supporting…
15
Education & Enrichment
3,891
Community members reached through Financial Education Initiatives
Organizations
14 2,500
Credit for Life Fairs serving…
14 17
MassHousing financed loans for a total of…
$3 Million
Years in a row Cape Cod 5 has been the leading producer of loan volume for MassHousing in Barnstable County
4 Years Cape Cod 5 has been the leading producer of loan volume for MassHousing in Nantucket County
21 336 People reached by First Time Homebuyer workshops
267 6
Number of employees serving on boards for local housing organizations
Affordable and Sustainable home loans closed
students
14,500 students reached since program inception in 2011
64 Financial Calculators on the Cape Cod 5 website…
$209,585 Value of student loans paid back through Employee Student Loan Repayment Assistance Program
used by over
39,000
51
people to date
Financial Education events held
$200,822 83 donated to support…
organizations
MINI-GRANTS
$493,985 87
GIVEN in Mini-Grants since program inception
Mini-Grants AWARDED in 2019
23,970
STUDENTS impacted by funding received through Mini-Grants
47
SCHOOLS across Cape Cod, the Islands & Southeastern Massachusetts represented
Community Commitment
Economic Sustainability
Environmental Stewardship PHILANTHROPY
BUSINESS
$14.3 Million approved in SBA loans
$77,236 494 commercial loans closed
33 $127,031 $73,228
supporting
24
square feet
of solar panels at HQ5 generating
in donations
300,000
for childcare
watts of electricity
13
$509,717
employees serving on boards for local Environmental Stewardship Organizations
in donations to
69
organizations
32
Green certified Banking Centers
15,000
organizations specific to workforce development supported through…
including
11
organizations
New workforce housing units created as a result of Cape Cod 5 lending activity
Support and attend major local events such as NetZero Conference and Electric Car Show/ Home Energy Showcase
Solar Loan Program rolled out Bank wide
Community Health, Human Need & Active Service Members’/Veterans’ Needs
89
employees serving on local boards
$1.51 Million in total donations in 2019
$556,488
100 organizations supported by additional corporate leadership of employees
2,574
donated to support local community organizations
987
employee volunteer hours
hours of additional corporate leadership by employees
7
WO R KING TOG E TH ER AS ON E
8
BAN K WH ILE WE’ R E APART
9
OK
BUSINESS
COVID -1 9 R ESPO NSE & R ELIEF EFFO RTS Community Banking
RCIAL
DEBIT CARD
MORTGAGE RELIEF
ACCOMMODATIONS & RELIEF OPTIONS FOR CUSTOMERS ⊲ Waiver of overdraft & uncollected funds fees ⊲ Waiver of CD early withdrawal penalties on withdrawals
MENTS
HOME SEARCH
1,000+ customers helped with mortgage payment modification options
of up to $20,000 ⊲ Increase in consumer mobile deposit limits
" Just a note to say thank you for the kind, delightful, ready-to-help customer service. You have been one of the best banks I've ever dealt with. I appreciate all you do. You really do take care of your customers. Cheers. Stay healthy in these different times." —Thank you note from customer
PAYCHECK PROTECTION PROGRAM
Community Commitment
SBA LOANS
RELIEF FOR SMALL BUSINESSES ⊲ 500+ business customers assisted with loan modification options ⊲ 100% of completed applications have received authorization from SBA ⊲ 10,000+ estimated workers retained and
2,100+
continued to be paid
businesses helped through PPP
$195 Million+ BANKING
in loans approved
" As a small business owner, I have found myself, as so many others, in uncharted waters. Yet, in you and your colleagues, we have been given a compass. We would have been unable to navigate, without Cape Cod 5, the PPP process in order to secure the much needed funds for our business." —CEO, Professional Services Agency E D U C AT I O N
10
Philanthropy ⊲ $250,000 disbursed from Cape Cod 5 Foundation to
COVID-19 RELIEF
4 area crisis relief funds to assist with immediate response efforts and 12 local food pantries to address food insecurity ⊲ $125,000 committed as a challenge match to community and Cape Cod 5 employee support of 7 local healthcare providers ⊲ Nearly $300,000 raised through COVID-19 Healthcare Support Challenge donations and Cape Cod 5 match ⊲ $35,000 given to local area economic development entities to provide support for our communities and businesses as they work through the severe economic slowdown caused by COVID-19
" We would like to thank Cape Cod 5 for mitment
$500,000 committed to supporting COVID-19 relief efforts
" Thank you for Cape Cod 5's very generous
your recent donation to assist us in the
support of BID-Plymouth and your
fight against the dreaded coronavirus.
continued partnership. It means a great
We are so grateful to have your support at
deal in this extraordinarily difficult time."
this most difficult time for so many."
—Beth Israel Deaconess Hospital-Plymouth
—The Family Pantry, Damien's Place
BUSINESS
PPP WEBINAR
Financial Know-How LEADERSHIP ⊲ Co-hosted webinar on PPP Loan Forgiveness for customers. 1,000+ borrowers registered ⊲ Built COVID-19 and CARES Act Security Center
650
ONLINE
virtual live webinar attendees
Resources with information PHILANTHROPY
on emerging scams, what to look for and how consumers can protect themselves 11
FINANCIAL S - 201 9 Consolidated Balance Sheets* At December 31, $4,000,000
TOTAL ASSETS AT DECEMBER 31 (IN THOUSANDS)
$2,000,000 $1,000,000
Cash and cash equivalents
$71 ,793
$53,964
Investment securities
381 ,856
421 ,24 1
2,201 ,770
2,032, 588
Commercial real estate
660,226
600,544
Commercial and industrial
1 55,523
1 52,987
22,995
20,204
3,040,5 1 4
2,806,323
Loans: 2015
2016
2017
2018
2019
LOANS AT DECEMBER 31 (IN THOUSANDS)
Residential real estate
Gross loans Allowance for loan losses
$5,000,000 $4,000,000
Net loans
$3,000,000 $2,000,000 $1,000,000 $0
2015
2016
2017
Portfolio
2018
(18,362) 3,022, 1 52
2,788,585
1 81 ,849
1 60, 1 08
Total assets
$3,657,650
$3,423,898
2019
Investors
LIABILITIES AND RETAINED EARNINGS Wholesale funding
DEPOSITS AT DECEMBER 31 (IN THOUSANDS)
Other liabilities Total liabilities Retained earnings
$3,043,403
$2,8 1 6,097
228,975
262,758
29,538
24,437
3,301 ,9 1 6
3, 1 03,292
355,734
320,606
$3,657,650
$3,423,898
Total liabilities and retained earnings 2015
2016
2017
2018
2019
* Includes The Cape Cod Five Cents Savings Bank and the Cape Cod Five Mutual Company.
12
(1 7, 738)
Other assets
Deposits
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
2018
($ In Thousands)
Consumer $6,000,000
2019
ASSETS
$3,000,000
$0
Consolidated Income Statements* Years Ended December 31, 2019
($ In Thousands) Interest income
$133,063
Interest expense Net interest income Provision for loan losses
$1 1 9,563
(29,352)
(20,373)
103,7 1 1
99, 1 90
(225)
(750)
Net interest income after provision for loan losses
NET INCOME YEARS ENDED DECEMBER 31 (IN THOUSANDS)
2018
103,486
98,440
Non-interest income
30,655
25,400
Operating expenses
(99,1 69)
(91 ,295)
34,972
32,545
(8, 1 1 9)
(8,01 4)
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
Income before provision for income taxes Provision for income taxes
Net Income
$26,853
$24,531
Selected Financial Data*
$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0
2015
2016
2017
2018
2019
CAPITAL AT DECEMBER 31 (IN THOUSANDS)
2015
2016
2017
2018
2019
At and for the Years Ended December 31, 2019
2018
($ In Thousands) Return on average assets
0.76%
$1,500,000
0.74%
$1,250,000 $1,000,000
Net interest margin
3. 1 5%
3.16%
Non-performing loans to net loans
0.57%
0.57%
Tier 1 leverage ratio
9.74%
9.61%
Loans serviced for others
$2,255,934
$2,1 28,3 1 4
Trust assets under management
$1 ,231 ,505
$ 1 ,057,779
TRUST AND ASSET MANAGEMENT AT DECEMBER 31 (IN THOUSANDS)
$750,000 $500,000 $250,000 $0
2015
2016
Assets Under Management
2017
2018
2019
Assets Under Custody
13
FINANCIAL S - Q1 2020 Consolidated Balance Sheets* At March 31, $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
TOTAL ASSETS AT MARCH 31 (IN THOUSANDS)
ASSETS Cash and cash equivalents
$27,434
$27,205
Investment securities
386,072
4 1 9,745
2,274,883
2,077,86 1
Commercial real estate
672,023
608,622
Commercial and industrial
1 7 1 ,46 1
1 65, 124
23,266
20,085
3,1 4 1 ,633
2,8 7 1 ,692
Loans: 2016
2017
2018
2019
2020
LOANS AT MARCH 31 (IN THOUSANDS)
Residential real estate
Gross loans Allowance for loan losses
$5,000,000 $4,000,000 $2,000,000 $1,000,000 2016
2017
2018
Portfolio
2019
2,853,7 1 1
1 9 1 ,769
1 64,953
Total assets
$3,726,575
$3,465,614
2020
Investors
LIABILITIES AND RETAINED EARNINGS Wholesale funding Other liabilities
DEPOSITS AT MARCH 31 (IN THOUSANDS)
Total liabilities Retained earnings
$3,090, 1 94
$2,845,030
249,601
272,855
25,380
1 6,957
3,365, 1 75
3, 1 34,842
36 1 ,400
330,772
$3,726,575
$3,465,614
Total liabilities and retained earnings 2016
2017
2018
2019
2020
* Includes The Cape Cod Five Cents Savings Bank and the Cape Cod Five Mutual Company.
14
(1 7,981)
3,1 2 1 ,300
Deposits
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
(20,333)
Other assets
Net loans
$3,000,000
$0
2019
($ In Thousands)
Consumer $6,000,000
2020
Consolidated Income Statements* Year to Date March 31, 2020
($ In Thousands) Interest income
$33,567
Interest expense Net interest income Provision for loan losses
$8,000
$32,258
(6,956)
(6,909)
26,6 1 1
25,349 (225)
(2,000)
Net interest income after
$6,000 $4,000 $2,000 $0
provision for loan losses
24,6 1 1
Non-interest income
25, 1 24
8, 1 94
Operating expenses
YEAR TO DATE NET INCOME MARCH 31 (IN THOUSANDS)
2019
2016
Provision for income taxes
6,8 1 1
Net Income
(1 ,589) $5,222
2019
2020
(23, 1 22)
(25,994)
2018
6,279
Income before provision for income taxes
2017
8,281
(1 ,956) $6,325
Selected Financial Data*
$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0
CAPITAL AT MARCH 31 (IN THOUSANDS)
2016
2017
2018
2019
2020
At and Year to Date March 31, 2020
2019
($ In Thousands)
$1,250,000
Return on average assets
0.57%
0.74%
Net interest margin
3. 1 2%
3.1 5%
Non-performing loans to net loans
0.57%
0.56%
Tier 1 leverage ratio
9.75%
9.65%
Loans serviced for others
$2,252,01 3
$2,130,044
Trust assets under management
$ 1,073,522
$ 1 ,135,078
TRUST AND ASSET MANAGEMENT AT MARCH 31 (IN THOUSANDS)
$1,000,000
$750,000
2016
2017
Assets Under Management
2018
2019
2020
Assets Under Custody
15
SENIOR LEADERSHIP TEAM
L
E
A
D
TRUSTEES & DIRECTORS Dorothy A. Savarese,
Anne Bailey Berman
Chester N. Lay
Paul Rumul
Chair
John C. Dawley
Bruce D. Miller
Daniel A. Wolf
Thomas M. Evans,
Karen L. Gardner
Katherine Fulham Parcels
Paul E. Grover
James A. Peterson
Vice Chair
16
CORPORATORS Shawn J. Almeida
Penelope Dey
William G. Litchfield
Kurt E. Raber
Barbara Stone Amidon
David H. Doherty
Alan R. Long
Francie Randolph
Charles L. Bardelis, Jr.
William A. Doherty, Jr.
Nancy S. Lowery
John C. Ricotta
Richmond R. Bell
Stephen L. Doyle
J. Bruce MacGregor
John A. Roberts, III
Paul B. Bergquist
Michael A. Dunning
Robert A. Maffei
Mark H. Robinson
Anne Bailey Berman
Charles E. Eastman, Jr.
George W. Malloy
Paul Rumul
Karen L. Bissonnette
Sheila O’Brien Egan
Linda Ann Markham
Brett A. Sanidas
Jitka Borowick
Thomas A. Eldredge
Brian C. McGrath
Dorothy A. Savarese
Patricia M. Bridier
Thomas M. Evans
Christopher J. Megan
Judy Walden Scarafile
David A. Brown
Diane Falla
Bruce D. Miller
Lisa F. Sherman
Christine L. Bruno
John P. Farrell
Lida N. Miner
Carol W. Sim
Lyle B. Butts
Steven R. Fedele
Carey M. Murphy
John P. Simison
Douglas M. Cabral
Melinda S. Gallant
Lester J. Murphy, Jr.
Andrew L. Singer
Howard C. Cahoon, Jr.
Karen L. Gardner
Susan L. Nickerson
Patti Smith
Craig A. Canning
Margaret A. Geist
Virginia Nickerson
Robert C. Smith
F. Timothy Carroll
Paul E. Grover
Joshua A. Nickerson, Jr.
Sidney H. Snow
Carl F. Cavossa, Jr.
Wendy Harman
Mark J. Novota
Lawrence O. Spaulding, Jr.
Robert C. Chamberlain
Frank J. Harrison
Stephen B. O’Brien, Jr.
Harry S. Terkanian
Olive M. Chase
G. Howard Hayes
David I. Oppenheim
Todd G. Thayer
Jay H. Coburn
William P. Hourihan, Jr.
Katherine Fulham Parcels
James F. Trainor
Lynn Comandich
Joseph C. Jasie
Joseph A. Pellegrino
Christopher J. Ward
Geoghan Coogan
Christopher J. Joyce
James A. Peterson
Richard Waystack
Paul Covell
John J. Judge
Laura Lorusso Peterson
John L. Whelan
Robert J. Crane, Jr.
Peter Karlson
Wayne D. Petty
Seth Wilkinson
John C. Dawley
Chester N. Lay
Melissa D. Philbrick
Daniel A. Wolf
Richard F. Delaney
James F. Leighton
John E. Pina
William Zammer, Jr.
Shawn DeLude
Jo-Ann M. LeMoine
Jane Mello Pineau
Benjamin E. Zehnder
Benjamin W. deRuyter
Geoffrey F. Lenk
Frederic B. Presbrey
George Zografos
17
BANKING CENTERS & ATMS Brewster 2745 Main St. Centerville 1620 Falmouth Rd. Chatham 548 Main St. Dennis 688 Main St. (off Route 134) East Harwich 129 Route 137 Eastham 75 Brackett Rd. Edgartown 238 EdgartownVineyard Haven Rd. Falmouth 668 Main St. Harwich Port 532 Main St.
CONTACT US Customer Service Center: 888-225-4636 customerservice@capecodfive.com
Hyannis Route 28 171 Falmouth Rd. Route 132 1550 Iyannough Rd.
Location details & hours are available at capecodfive.com/locations
Mashpee 10 North Market St. Nantucket Downtown Zero Main St. Mid Island 112 Pleasant St. Orleans 97 Cranberry Hwy.
LENDING & WEALTH MANAGEMENT OFFICES
TRUST & ASSET MANAGEMENT OFFICE
Marion 163 Front St.
Orleans 20 West Rd.
Plymouth 6 Resnik Rd., Ste. 115 Vineyard Haven 13 Beach St. Ext.
NMLS #401717
CORPORATE HEADQUARTERS Hyannis 1500 Iyannough Rd.
ADDITIONAL ATM LOCATIONS Barnstable Village 3239 Main St. North Falmouth 580B N. Falmouth Hwy. Plymouth The Pinehills 6 Purchase St.
Plymouth The Pinehills One Village Green North, Ste. 111R Provincetown 137 Bradford St. Sandwich 85 Route 6A Vineyard Haven 412 State Rd.
Yarmouth Port 918 Route 6A
Wareham 10 Rosebrook Pl.
Steamship Authority Terminals Hyannis & Nantucket
Wellfleet 345 Main St. Yarmouth 514 Station Ave.