2022 Annual Report

Here for You

Message from the CEO

2022 brought many new and unexpected challenges, affecting all of us. Throughout the year, we at Cape Cod 5 have continued to respond to the needs of communities, always guided by our mission of enriching lives to assist those we serve.

The year started with a sense of optimism that the world was returning to some semblance of normalcy. Instead, it brought a war in Ukraine, further global supply chain disruption, global energy challenges and the realization that inflation was here to stay. Inflation and the subsequent rapid rise in borrowing costs driven by the Federal Reserve’s actions to curb price increases led to a spend down of excess savings amongst consumers and businesses and exacerbated existing home affordability pressures. All the while, the financial markets have taken us on a wild ride.

In our communities on Cape Cod, the Islands and in Southeastern Massachusetts, there are additional dynamics that must be addressed through collaborative and innovative approaches. The lack of accessible housing continues to be a critical issue impacting individuals and families, as well as businesses looking for staff. In our seasonal economies, an influx of more year-round and shortterm residents over the past few years, which has helped to strengthen the local economy, has also amplified the need for improved infrastructure relating to transportation, wastewater and early childhood education resources.

At Cape Cod 5, we act with our values of integrity, respect, collaboration, inclusivity and care always at the forefront. Our business is centered around

Matthew S. Burke CEO, Cape

doing what is right and supporting the wellbeing of our customers, community members and team of employees: providing actionable and objective advice, tools and services to empower our customers on their financial journeys both digitally and in person; contributing to the vibrancy and vitality of our communities and neighbors; and creating a top workplace that is supportive of our employees’ personal and professional obligations.

In the middle of the year, after months of planning and preparation, Cape Cod 5 experienced a significant leadership change when Dorothy Savarese, who has been a great mentor of mine, stepped back from the role of CEO, and with the full support of the Board, named me as her successor in the role of Chief Executive Officer and Bert Talerman as President. Our dedicated team of 577 talented professionals carried on working together as One Bank without missing a beat.

Our team of employees has always been the key to carrying out the Bank’s mission, caring for our customers, positively impacting our communities and being there for one another. We consistently strive to provide best-in-class benefits to ensure they can balance each area of their lives; foster a culture where innovation, respect and celebration of differences are

Cod 5

encouraged; create opportunities for development; and recognize personal and team achievements.

Through our collective efforts and despite some economic headwinds, we accomplished significant strategic and financial milestones. As a mutual institution, our financial strength underpins our ability to reinvest in our technology, our service offerings, our employees and our ability to give back in our communities. Below are some of these highlights from 2022:

• Achieved net income of $39.5 million, our second highest earnings level on record, providing for a return on average assets of 0.81%.

• Total assets grew to $5.3 billion, a 14.2% increase from 2021.

• Strengthened asset quality over the course of the year, with non-performing assets remaining near record lows at just 0.26% of total assets, a 0.13% improvement from 2021.

• Exceeded $1.5 billion total residential and consumer lending for the second consecutive year, achieving the top purchase mortgage market share in Barnstable, Nantucket and Dukes County, as well as the towns of Plymouth and Wareham. In 2022, the Bank was the second largest originator of single-family homes in Massachusetts, as reported by Banker & Tradesman.

• Core commercial loan portfolio growth, which excludes PPP loan balances, totaled 4.6%.

• Achieved #1 deposit market share, accounting for more than 25% of area FDIC insured deposits.

• Maintained a strong deposit base, which facilitated the Bank’s financial capacity to eliminate all overdraft fees for consumers and businesses — one of the first banks in our area to make this move.

• Wealth Management Services assets totaled $1.8 billion on a combined basis, including assets under management, custody assets and brokerage.

• Enhanced employee time off with vacation, sick and personal time converted to Paid Time Off, with all employees receiving an equal amount.

• Recognized for the fifth straight year as a top workplace nationally and in the state.

• Continued to enhance and grow the Bank’s physical presence, completing significant renovations to the East Harwich and Yarmouth banking centers while breaking ground on two new banking centers in Plymouth, continuing our expansion in Southeastern Massachusetts.

• Focused on further developing our digital offerings to enable customer convenience from anywhere, while continuing to bolster our security and put in place technological efficiencies.

• Contributed more than $1.7 million to nonprofit organizations and community partners across our region.

Throughout this report, we have highlighted examples of the many ways that we at Cape Cod 5 are here to help. It is an honor to write my first letter as CEO of this long-standing institution. I am grateful to have the opportunity to do what I love, at a company whose values I’ve always shared and admired, and with people whom I greatly respect. Thank you to our customers and community members for continuing to place your trust in us, and to my colleagues for your partnership in our mission.

If we can be of assistance, please don’t hesitate to reach out. We are here for you.

At Cape Cod 5, we act with our values of integrity, respect, collaboration, inclusivity and care always at the forefront. Our business is centered around doing what is right and supporting the wellbeing of our customers, community members and team of employees.

— MATT BURKE, CEO

“ ”

Message from the Executive Chair

When I chose to join Cape Cod 5 as a part-time commercial lender over three decades ago, I was sure of two things: that Cape Cod 5 was an organization that shared my values and that they shared my goal to make a positive impact on our customers and members of the community. Through the ensuing years, and all the changes in our world, our communities and our customers’ lives, these things have remained constant.

And I would go so far as to say we are passionate about that, as we at Cape Cod 5 have rigorously pursued continuously evolving ways we can support each other and those whom we serve. We’ve expanded the breadth of our services to meet the needs of individuals, families and businesses in our region to include everything from accessible bank accounts for the underbanked to wealth management and trust and investment services. As the leading residential lender in our region, we have received

state and national recognition for continuing to ensure that we provide solutions for all people in the community to achieve the goal of home ownership. We’ve innovated and adapted our way from introducing “Internet Banking” before any other bank in our market (way back in the 1990s) to creating and launching a digital portal to support small businesses through the Paycheck Protection Program, and continue to develop more convenient ways for our customers to work with us from anywhere. Our community engagement has evolved from a primary focus on philanthropy to also include our operations as a responsible business, advancement of financial know-how and the talents and time of all of our employees in giving back. And we’ve been proud to become one of the largest employers and top nationally recognized workplaces in the region.

As a steward of this 168-year-old institution, I have long known that my primary role was to ensure that this high performing, values-based culture of service would continue well into the future. I have been privileged to work with a remarkable team that enabled the Bank to take an important next step during 2022, with Matt Burke stepping into the role of CEO and Bert Talerman becoming President in May. As Matt and Bert have been part of my executive team, actively involved in every area of our operations and service, our customers, employees and community members can be very confident about the future of this institution. During my year as Executive Chair, I have clearly seen that, with their leadership, along with senior management and the entire team of dedicated and talented employees, Cape Cod 5 will continue to pursue its mission of enriching lives.

Dorothy A. Savarese, Executive Chair, Cape Cod 5

As I prepare for my official retirement in the coming months, I want to thank all of our customers and community members for the trust that you’ve placed with us. I often hear from individuals about the ways that Cape Cod 5 and our team have made a positive impact in their lives — whether it is having guidance to be able to purchase their perfect ‘forever home’ or receiving comfort and empathy in dealing with the tragedy of losing a loved one. We are grateful that you turn to us every day, and especially during those difficult moments when you most need guidance and someone that you can rely upon. Cape Cod 5 will always continue to be here for you.

Finally, to my Cape Cod 5 family of colleagues, Trustees and Corporators: it has been my honor to share these past years with you. I am so grateful to have had the opportunity to work with so many fine people. We’ve shared many laughs and stood shoulder to shoulder through some very challenging times. You’ve touched my life and taught me so much, and I’m so proud to have you all carry on our mission for our customers, community members and one another.

With gratitude and warm thoughts,

As a steward of this 168-year-old institution, I have long known that my primary role was to ensure that this high performing, values-based culture of service would continue well into the future. During my year as Executive Chair, I have clearly seen that, with the leadership team and the entire team of dedicated and talented employees, Cape Cod 5 will continue to pursue its mission of enriching lives.

— DOROTHY A. SAVARESE, EXECUTIVE CHAIR

“ ”

L-R: Joel Brickman, General Counsel and Board Clerk; Tom Evans, Vice Chair; Dorothy Savarese, Executive Chair; Matt Burke, CEO; Bert Talerman, President

OUR MISSION

Enriching Lives

Our mission is simply stated, but there’s so much meaning behind it. We work each day to enrich the lives of those we serve — from supporting the financial health of our customers to helping to sustain the vibrancy and vitality of our communities to creating meaningful opportunities for our employees. OUR

VALUES

As we carry out our mission, Cape Cod 5’s values are ingrained in every aspect of our business and guide us in each interaction we have with our customers, employees and communities.

Here for your financial needs

#1 Deposit Market Share, accounting for MORE THAN

25% of area FDIC insured deposits, more than double that of the next closest competitor

At Cape Cod 5, we’re here to empower each individual and family on their unique financial journey. Whether you’re ready to buy your first or forever home, saving for a rainy day or preparing for retirement, Cape Cod 5 has the expertise, tools, products and services to help you achieve your goals, and are happy to help whichever way you prefer — digitally, in person or a mix of both.

#1 Residential Mortgage Lender in Every Market We Serve*

$1.79 Billion Wealth Assets Serviced

* In 2022, Cape Cod 5 held the #1 purchase mortgage market share position in the counties of Barnstable, Nantucket and Dukes, and the towns of Plymouth and Wareham.

We appreciate how you listen to our goals and expenses and clearly show us how to achieve them. You are always well prepared, never make us feel awkward about our lack of knowledge, you give sound advice and always maintain a great sense of humor. You give us great peace of mind financially, and to me that is priceless.

Cape Cod 5 helped us obtain a mortgage and a land loan. Not only that, they helped us through the entire process and made it stress-free. There’s something special about working with a community bank like Cape Cod 5 that you won’t find anywhere else. They’re really a part of the family.

— HEATHER RICCIARDI, MORTGAGE CUSTOMER

Eliminated Overdraft Fees

Cape Cod 5 eliminated all fees associated with overdrafts so that customers keep more of their money, especially when life happens!

Provided Peace of Mind with Additional FDIC Insurance Through IntraFi

In 2022, Cape Cod 5 offered customers the opportunity to access full FDIC insurance on all balances above the automatic FDIC insurance limit of $250,000.

Improved Digital Loan Experience

We’ve enhanced our digital mortgage, home equity and personal loan application process so customers can work with Cape Cod 5 from anywhere.

Continued to Expand our Services in Plymouth

We announced plans for two new Banking Centers in Plymouth at The Pinehills and on Commerce Way.

Renovated Banking Centers

Our full-service Banking Centers in Yarmouth and East Harwich underwent extensive interior renovations to improve the customer experience.

Here for your business

We continue to choose Cape Cod 5 as our primary bank for many reasons: they are an incredibly understanding bank for small businesses; they recognize the aspects of real estate and development of properties and create long lasting relationships with their customers. Their professionalism is central and is admirable, and the friendliness and support of the staff overall is stupendous.

— BARRY TASSINARI, TASSINARI CONSTRUCTION INC.

When it comes to managing your business, you need a financial partner that you can turn to for advice during good times and challenges. Cape Cod 5’s team of experienced professionals will be there with you each step of the way. From just starting out to handling your day-to-day finances to growing your business, we make it smoother with commercial loan options, treasury management services and business banking accounts.

Prioritizing Efficiency, Security and Convenience

We’ve made enhancements to our business banking and Treasury Management services to better support you, so that you can work with us when and where you want.

Making it Easier to Manage Your Business Finances

Integrated Autobooks (a payment and account product suite designed for small and micro-businesses) into digital banking channels for business customers.

MORE THAN

99% of PPP Loans Received Forgiveness in 2022

#9 Largest SBA Lender in Massachusetts in 2022

Tammy Photo

Our Monomoy Relationship Team, one of 10 hyperlocal teams serving businesses and consumers across our region

I cannot say enough about the professionalism and true caring that every single member of the Cape Cod 5 team has for me, my business, my needs and those of others. It is a pleasure collaborating with them in helping our clients and community meet their needs, achieve their goals and reap the benefits of their hard work. Cape Cod 5 helps make dreams come true.

— TAMMY SABEN, GLIVINSKI & ASSOCIATES, INC.

Here for our employees

Cape Cod 5 continues to foster a caring and inclusive work environment where each employee can grow and develop and feels supported professionally and personally. Our team of 577 dedicated employees work collaboratively in service to our customers, communities and one another. For the last five years, Cape Cod 5 has been recognized nationally and locally as a top workplace.

2022 EMPLOYER AWARDS & DESIGNATIONS

Continued Focus on Wellness

We expanded the range of benefits and programs offered that support our employees’ mental and physical health and contribute to their overall wellbeing.

Increased Employee Paid Time Off

Beginning in 2022, all employees were offered four weeks of Paid Time Off, regardless of tenure or role. Cape Cod 5 believes that all employees deserve flexibility and time for themselves.

39 Interns Employed in Various Roles Across the Bank in 2022

~ In memory of our two dear colleagues: Rich DeWitt and Ed Rubel ~

2022 Summer Interns

It is extremely comforting to know that the Bank truly cares about their employees, their families and their health and safety.

— TIM CABRAL, CAPE COD 5 EMPLOYEE

“ ”

Annual Employee Celebration Event

Here for our community

At Cape Cod 5, our community engagement is foundational to who we are. We’re committed to working collaboratively with others to continue to build vital, vibrant and sustainable communities. We’ve identified five areas to focus our resources and capabilities, where we consider ourselves well positioned to make a positive impact. We’ve outlined here some of our efforts in these areas.

5 WAYS OF ENGAGEMENT

We have focused our efforts in the following areas of need:

• Accessible Housing

• Education & Enrichment

• Economic Sustainability

• Environmental Stewardship

• Community Health, Human Need and Active Service Members’ and Veterans’ Needs

2,239 Hours of Employee Community Service

$1.71 Million in Philanthropic Giving through Bank Sponsorships and Foundation Grants

We truly are blessed to include the Cape Cod 5 among our community supporters. Without question, the challenges of homelessness, affordable housing and food insecurity seem insurmountable. That said, I am confident that with dear friends and partners like you, and the growth of programs to provide education and skills to those in need, we will break the cycle of poverty.

— SUZANNE GIOVANETTI, PLYMOUTH AREA COALITION FOR THE HOMELESS

Corporate Responsibility & Sustainability is the lens through which we look at everything that we do at Cape Cod 5 to put care for people and our planet first and has long been part of how we conduct our business. Our efforts to always do what is right fall into five broad areas: our people; environmental sustainability; economic vitality; access and inclusion; and innovative & responsible business. In addition to many shared throughout this report, we’ve highlighted a few recent examples here.

Focus on Renewable Energy Sources

In 2022, we expanded our pursuit of renewable energy through the installation of a solar canopy over our parking garage at our headquarters, HQ5. Between both the new canopy and our existing solar array over HQ5, by our estimates, we will provide enough green energy to power 75% of the building’s annual usage.

Here to help create a more inclusive and sustainable tomorrow

Helping Our Customers Protect Their Information

We educate our customers in data privacy and information security best practices by offering seminars, webinars and articles on our website Security Center about Fraud Awareness and Prevention, so that our customers can protect themselves from scams.

In 2022, Cape Cod 5 was highlighted by AARP for our employees’ efforts to protect customers from financial abuse, and the Bank maintained its BankSafe certification.

DIVERSITY & INCLUSION STATEMENT

Our differences make us stronger.

As part of our mission of enriching lives, Cape Cod 5 recognizes that each financial journey is as unique as the individual making it. Our goal is to help empower everyone along the way. Cape Cod 5 is committed to inclusivity and we celebrate diversity of all kinds — age, race, ethnicity, gender, sexual orientation, religion, veteran status, education, occupation, financial know-how, neurodiversity and physical abilities, lived experiences and backgrounds. We encourage our employees to bring their authentic selves to everything they

We’re proud to learn from one another, our customers and our community members, and hope that you’ll join us in listening to understand and create a more equitable and inclusive world.

do and we will continue to work to foster a respectful environment.

We uphold these principles in our relationships with business and community partners, as well.

Here for the future because of our strength and stability

2022 FINANCIALS

Consolidated

ASSETS

Cash

Investment

Net

Total assets

LIABILITIES

Deposits

Wholesale funding

Subordinated debt

Other liabilities

Total liabilities

Retained earnings

Total liabilities

retained earnings

* Unaudited; Includes The Cape Cod Five Cents Savings Bank and the Cape Cod Five Mutual Company.

At Cape Cod 5, we’re always looking toward the future. Our financial strength and mutuality (no stockholders) mean that earnings remain local and are reinvested into our technology, physical facilities and ability to serve customers, employees and communities.

— BERT TALERMAN, PRESIDENT, CAPE COD 5

Consolidated Income Statements*

Cape Cod 5 has received the “Best of Bauer” Award in recognition of its superior 5-star rating for 31 years running.

Performance Ratios*

Trustees/Directors

Senior Leadership Team

Emilie L. Bajorek Paul R. Bernier Liam Cahill

Stephanie M. Dennehy

Vanessa L. Greene Elizabeth S. Hammann

Matthew S. Burke Robert A. Talerman

Joel J. Brickman

Laura E. Newstead Christopher E. Richards

Dorothy A. Savarese Executive Chair Thomas M. Evans Vice Chair Matthew S. Burke Jane M. Coderre John C. Dawley Darren J. Donovan

Karen L. Gardner

Paul E. Grover John J. Judge Chester N. Lay Bruce D. Miller James A. Peterson

Paul Rumul Tammy A. Saben Robert A. Talerman

Denise M. Toomey Daniel A. Wolf

Stephen H. Johannessen

Timothy F. Kelleher III Jason R. Lilly Christina L. Mallard

Kevin A. Mooney James C. O’Conor

Andrea L. Ponte Christopher W. Raber Adrian M. Sullivan

Angelique K. Viamari

Top row: Executive Management Team

Corporators

Shawn J. Almeida

Barbara Stone Amidon

Paul B. Bergquist

Anne Bailey Berman

Karen L. Bissonnette

Jitka Borowick

Patricia M. Bridier

David A. Brown

Christine L. Bruno

Matthew S. Burke*

Lyle B. Butts

Douglas M. Cabral

Howard C. Cahoon, Jr.

F. Timothy Carroll

Carl F. Cavossa, Jr.

Robert C. Chamberlain

Olive M. Chase

Jay H. Coburn

Jane M. Coderre*

Lynn Comandich

Geoghan Coogan

Paul Covell

Robert J. Crane, Jr.

John C. Dawley*

Shawn DeLude

Benjamin W. deRuyter

Penelope Dey

David H. Doherty

William A. Doherty, Jr.

Darren J. Donovan*

Stephen L. Doyle

Michael A. Dunning

Charles E. Eastman, Jr.

Sheila O’Brien Egan

Thomas A. Eldredge

Thomas M. Evans*

Diane Falla

John P. Farrell

Steven R. Fedele

Melinda S. Gallant

Karen L. Gardner*

Margaret A. Geist

Paul E. Grover*

Lisa C. Guyon

Wendy Harman

Frank J. Harrison

G. Howard Hayes

Joseph C. Jasie

Christopher J. Joyce

John J. Judge*

Peter Karlson

Chester N. Lay*

Eileen Leary

James F. Leighton

Jo-Ann M. LeMoine

Geoffrey F. Lenk

Richard J. Leonard

William G. Litchfield

Nancy S. Lowery

J. Bruce MacGregor

Robert A. Maffei

George W. Malloy

Linda Ann Markham

Brian C. McGrath

Christopher J. Megan

Bruce D. Miller*

Lida N. Miner

Carey M. Murphy

Lester J. Murphy, Jr.

Susan L. Nickerson

Virginia Nickerson

Joshua A. Nickerson, Jr.

Mark J. Novota

David I. Oppenheim

Paulo Vitor P. Paraguay

Katherine Fulham Parcels

Joseph A. Pellegrino

James A. Peterson*

Laura Lorusso Peterson

Wayne D. Petty

Melissa D. Philbrick*

John E. Pina

Diana C. Pisciotta

Frederic B. Presbrey

Melanie M. Rabeni

Kurt E. Raber

Penelope Frances Randolph

John C. Ricotta

John A. Roberts, III

David T. Robinson

Mark H. Robinson

Paul Rumul*

Tammy A. Saben*

Brett A. Sanidas

Dorothy A. Savarese*

Judy Walden Scarafile

Lisa F. Sherman

Carol W. Sim

John P. Simison

Andrew L. Singer

Patti Smith

Robert C. Smith

Sidney H. Snow

Lawrence O. Spaulding, Jr.

Robert A. Talerman*

Harry S. Terkanian

Todd G. Thayer

Denise M. Toomey*

James F. Trainor

Christopher J. Ward

Richard Waystack

John L. Whelan

Seth Wilkinson

Daniel A. Wolf*

Benjamin E. Zehnder

George Zografos

Thank You, Dorothy

After 30 years at Cape Cod 5, our Executive Chair and former Chief Executive Officer Dorothy Savarese will be retiring in May 2023. We wanted to take a quick look back at some of the highlights of her years with the Bank and service to our customers, communities and the banking industry.

Dorothy, on behalf of everyone here at Cape Cod 5, you’ve touched the lives of so many through your leadership. Thank you!

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