Hyannis-based Bank of Cape Cod has reported profits of $414,000 in 2010, a significant increase from the $773,000 deficit reported during 2009.

The bank, which has only been open for three full years, said 2009’s deficit contained $715,000 of provision loan losses. Bank of Cape Cod only began making money in July 2010, according to a statement.

"We projected to lose money for the first three years," President and CEO Tim Telman told Banker & Tradesman.

He added: "2010 was a challenging year for the local economy, but we were able to grow the bank by continuing to provide capital to qualified, local businesses and we added three new jobs as a result of that growth. We are very pleased to have established core profitability after just over four years of operation during a period of the most turbulent economic times in decades."

The 2010 reorganization into a bank holding company is providing flexibility for continued growth for the financial institution, according to a statement. The bank is investigating expansion opportunities including new branches, mortgage lending and asset management.

"We remain optimistic about our commitment for a true, local community bank to make a positive impact for businesses and residents of Cape Cod," Telman added.

John H. MacKinnon and John C. Mechem were also recently re-elected as directors of the bank.