Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $3,286,000 for the third quarter compared to $3,176,000 for the same quarter in 2010. Diluted earnings per share (EPS) increased to $0.85 for the third quarter of 2011 versus $0.84 for the same quarter in 2010.
For the nine months ending September 30, 2011, unaudited net income was $9,567,000 versus $10,600,000 for the same period in 2010. Diluted earnings per share were $2.49 for the nine month period versus $2.81 for the same period in 2010. The key factor driving the decrease in net income was the sale of the Bank’s Merchant Services portfolio during the second quarter of 2010. The after tax impact on earnings of that sale was $1,591,000 or $0.42 per diluted share. Excluding that sale, unaudited net income of $9,567,000 for the 2011 nine month period compared favorably to $9,009,000 for the same period in 2010.
“Our third quarter performance was solid with a modest increase in earnings over the same period in 2010. While prevailing conditions continue to constrain overall economic growth, the Bank is well positioned to build, preserve and strengthen customer relationships,” notes Joseph V. Roller II, the Bank’s president and CEO.
Net interest income grew to $11.0 million for the third quarter of 2011, an increase of $478,000 (4.6%) over the third quarter of 2010. For the nine months ending September 30, 2011, net interest income of $32.5 million compared to $31.4 million for the same period in 2010. The increase of $1,156,000 (3.7%) in net interest income for the nine month period of 2011 versus the same period in 2010 was primarily a function of continued growth in the loan portfolio and a reduction in the cost for deposits.
The protracted low interest rate environment continues to put pressure on the Bank’s net interest margin. The Bank’s net interest margin decreased by 18 basis points to 3.94% for the third quarter of 2011 compared to the same quarter in 2010; and by 29 basis points for the comparable nine month periods.