The Cape Cod Five Cents Savings Bank has reported net income of $3.2 million for the six months ended June 30, down 32.1 percent compared to the $4.8 million in net income for the comparable period last year.

The bank said that the earnings for first six months of 2009 were a result of increased expense of $3.8 million for loan loss reserves and $2.1 million in increased FDIC premiums.

The bank’s capital grew to $177.4 million, an $8.3 million and 4.9 percent increase compared to June 30, 2008. The bank said it continues to be well capitalized under the regulatory definitions.

The loan loss provision for the six-month period was $4.3 million as the bank increased the loan loss reserve to more than $15.7 million or 1.15 percent of loans up from 0.86 percent at June 30, 2008.

The bank reports that total assets increased $176.1 million for the 12 months ended June 30 to end the period at $1.92 billion, up 10.1 percent compared to the same period a year ago. 

Deposits grew to $1.65 billion for the first-half of the year, an increase of $182.8 million or 12.5 percent from June 30, 2008. 

 "Overall, we are quite pleased with our financial results and the ability of our earnings to add to our reserves and capital," said Dorothy A. Savarese, president and CEO. "As we reflect on the first half of 2009, the impacts of the 18-month economic recession continue. While we have seen some signs of stabilization with improvements in the credit markets and stock market gains from the lows of earlier this year, spending remains constrained and unemployment continues to increase. We feel privileged that in these times there is a growing recognition of the value of doing business with a locally managed community bank and are proud of the continuing success of our business lines in serving our customers on Cape Cod."