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 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.