Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $3,105,000 for the first quarter of 2011, or $0.82 per diluted share, compared to $2,746,000, or $0.73 per diluted share, for the same quarter in 2010. The quarter-over-quarter earnings increase of $359,000 (13.1%) was attributable to a combination of solid growth in wealth management income and interest income on loans.
“I am proud to report a solid first quarter performance,” noted Joseph V. Roller II, president and CEO. “The results reflect the benefits of our steady focus and continued execution of our business plans.”
“Noninterest income provided a nice lift to first quarter earnings,” said Roller. Total noninterest income of $4.6 million for the first quarter of 2011 was $522,000 (12.7%) higher than the same period in 2010. The Bank continued to build momentum in generating wealth management income, which increased $383,000 (13.3%) between the comparable periods, from new account growth and a favorable equity market. In addition, gains taken on investment securities were $268,000 in the most recent quarter compared to $138,000 in the first quarter of 2010.
“We were pleased by the healthy rate of growth in both loans and deposits during the first quarter of 2011. This performance however should be viewed in the context of sustained pressure on our net interest margin,” added Roller.
Total loans outstanding increased by $38.1 million (6.7%) to $606.7 million since year-end 2010 and by $62.1 million (11.4%) over March 31, 2010. The loan growth in the first quarter of 2011 was primarily attributable to an increase in residential mortgages of $28.0 million (10.3%) and commercial mortgages of $15.0 million (8.4%).
Non-performing loans as a percentage of total loans stood at 0.15% at March 31, 2011, a decrease compared to 0.20% at December 31, 2010. Loan quality remains sound and the Allowance for Loan Losses stood at $9.4 million or 1.55% of total loans outstanding at March 31, 2011. At December 31, 2010, the Allowance for Loan Losses was $8.9 million or 1.56% of total loans outstanding. The Bank experienced a net recovery during the first quarter of 2011, which increased the Allowance for Loan Losses above the $250,000 Provision for Loan Losses made during the period.