Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $4,678,000 for the second quarter of 2010 compared to $2,479,000 for the same quarter in 2009. Diluted earnings per share were $1.24 for the second quarter of 2010 versus $0.67 for the same quarter in 2009. Key factors driving the $2,199,000 or 89% increase in net income were the sale of the Bank’s Merchant Services portfolio and continued growth in net interest income.
During the quarter, the Bank sold its Merchant Services portfolio to Elavon, Inc., a wholly owned subsidiary of U.S. Bancorp. The after tax impact on earnings of that sale was $1,591,000 or $0.42 per diluted share.
For the first six months ended June 30, 2010, unaudited net income was $7,424,000 compared to $4,485,000 for the first half of 2009. Diluted earnings per share were $1.97 for the first six months of 2010 versus $1.21 for the same period in 2009.
“Our second quarter results are evidence that we continue to build on the momentum of our customer relationship strategy. We are encouraged that as the economy begins to gain traction, we will capitalize on opportunities for growth and remain focused on executing the Bank’s business strategies across all business lines,” notes Joseph V. Roller II, president and CEO.
The Bank continued to experience strong growth in net interest income. The solid increase of $1,024,000 or 10.8% in net interest income for the second quarter of 2010 versus the same quarter in 2009 was a function of growth in loans to consumers and businesses funded by lower cost deposits. Since year-end 2009, total deposits have grown $49.8 million or 5.7% as consumers and businesses sought stable, service-oriented banks for their checking and savings accounts and certificates of deposit. Together these factors produced a net interest margin for the second quarter of 2010 of 4.30%; a slight improvement compared to the 4.26% margin for the quarter ended June 30, 2009.