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Annual Report

Letter from the President and CEO

To Our Community:

By their very nature, with a charter that is void of stockholders looking for a return, mutual banks exist only to serve the communities. 166 years ago, David Fairbanks and a group of concerned citizens met to organize Seamen’s Bank as a mutual bank to serve the fishermen and other workers who lacked access to financial services. The Provincetown community of 1851 had a large immigrant population of fishermen as well as an established mercantile base. In its purpose and location on Freeman’s Wharf, the Bank was a reflection of the time and the populace. Diversity, cultural differences, and a sense of community were the strengths that provided a solid foundation for the Bank’s success. That is as true now as it was then. It is who we are.

I am pleased to report that March 31st ended another successful year for Seamen’s Bank. Our loan portfolio grew by over 5% and the growth in net interest income was sufficient to maintain a robust capital ratio of over 11.5% far exceeding supervisory standards for a “well-capitalized” Bank. Going forward, our challenges include the regulatory costs that remain a serious burden for community banks but on that front, there is at least some talk — if not action — of easing the burden. Even the Vice Chairman of the FDIC acknowledges that “excessive regulatory burdens have exacerbated the dangerous consolidation of the banking industry” and he has proposed a new partitioning of regulatory requirements for the “big” banks. The unpredictability of Federal Reserve action on interest rates also remains a challenge to budgetary planning but despite these challenges, we remain confident in our strengths and abilities and I am very optimistic about the future of Seamen’s Bank.

Our Community Involvement Team continues its outstanding work through its participation in events and representation on non-profit boards all across the Mid and Lower Cape. The Seamen’s Bank Charitable Foundation provided nearly $130,000 in grants and donations to local causes and its Employee Matching Donation Program has increased annually since its inception in 2013. The Bank’s active outreach and monetary commitments continue to surpass expectations. We live here, we work here, and our money supports the local economy.

As President of Cape Cod’s First Community Bank, I am grateful for the support of our Corporators, Trustees, Employees, and the Community at large. Our principal and long-term goal is to preserve and strengthen Seamen’s Bank as a mutually chartered, socially responsive, and fully independent bank.

This year’s Annual Report celebrates Cape Cod as a haven and a “good place to live.” Today’s world has grown smaller and we have become a more diverse community. 166 years in business probably now qualifies Seamen’s Bank as an “institution” and throughout its history, community has been our hallmark and purpose. It is who we are.

Respectfully,

Signature
John K. Roderick
President and CEO

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Consolidated Statements of Income

Year ended March 31

2017

2016

Interest Income
Loans

9,583,000

9,361,000

Securities and Investments

1,318,000

1,316,000

Federal Funds Sold

99,000

64,000

Total Interest Income

11,000,000

10,741,000

Interest Expense
Interest on Deposits

991,000

956,000

Other Interest

16,000

20,000

Total Interest Expense

1,007,000

976,000

Net Interest Income

9,993,000

 9,765,000

Provision for Loan Losses

40,000

Non-Interest Income
Fees on Deposits

 187,000

202,000

Other Service Charges

455,000

437,000

Gain (Loss) on Security Sales

589,000

51,000

Other Gains and Losses

92,000

51,000

Other Non-Interest Income

 104,000

 117,000

Total Non-Interest Income

1,427,000

858,000

Non-Interest Expense
Salaries and Bennefits

5,342,000

4,986,000

Premises and Equipment

1,106,000

922,000

Other Non-Interest Expense

3,651,000

3,416,000

Total Non-Interest Expense

10,099,000

9,324,000

Income Before Taxes

1,321,000

1,259,000

State and Federal Taxes

396,000

414,000

Net Income

925,000

845,000

This statement has not been reviewed, or confirmed for accuracy, by the
Federal Deposit Insurance Corporation.