Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $2,746,000 for the first quarter of 2010, or $0.73 per diluted share, compared to $2,006,000, or $0.54 per diluted share, for the same quarter in 2009. The quarter-over-quarter earnings increase of $740,000 (36.9%) was attributable to a combination of higher net interest income and a rebound in non-interest income for the period.
“We are pleased to report another solid quarter,” noted Joseph V. Roller II, president and CEO, “The Bank continued to build momentum as we targeted opportunities for growth. Loan growth, particularly residential mortgages which increased by $12.0 million for the quarter, and wealth management income were key contributors to the sustained earnings increase.”
The Bank had a strong performance in net interest income which increased $1.4 million (15.0%) in the first quarter 2010 compared to the first quarter in 2009. The Bank’s net interest margin of 4.32% for the three months ended March 31, 2010 compared favorably to 4.20% for the first quarter of 2009. Total deposits increased by $6.8 million to $880 million since year-end 2009 and by $77.5 million (9.7%) over the same quarter in 2009.
Non-interest income for the first quarter of 2010 was $477,000 higher than the same quarter in 2009. Fees from wealth management improved with the equity market and were $409,000 higher in the first quarter of 2010 versus 2009. In addition, gains taken on investment securities were $138,000 in the most recent quarter compared to a negligible amount in the first quarter of 2009.
Non-interest expenses increased by $528,000 in the first quarter of 2010 compared to the same quarter in 2009. The primary factor of higher non-interest expenses were salaries and benefits, due to merit increases as well as larger expense accruals for the Bank’s defined benefit retirement plan.
Non-performing loans as a percentage of total loans stood at 0.21% at March 31, 2010, a slight increase compared to 0.20% at December 31, 2009. Loan quality remains sound and the Allowance for Loan Losses stood at $9.1 million or 1.67% of total loans outstanding at March 31, 2010. At December 31, 2009, the Allowance for Loan Losses was $8.7 million or 1.62% of total loans outstanding.