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Cambridge Bancorp (OTCBB: CATC) today announced unaudited net income of $12,477,000 for the year ended December 31, 2011, compared to net income of $13,254,000 for the year ended December 31, 2010. It should be noted the Bank sold its Merchant Services portfolio during the second quarter of 2010. The after tax impact of that sale was $1,591,000 or $0.42 per diluted share. Excluding that sale, unaudited net income of $12,477,000 for the year ended December 31, 2011 compared favorably by 7.0% to $11,663,000 for the year ended December 31, 2010.
Diluted earnings per share (EPS) were $3.25 for the year ended December 31, 2011 compared to $3.51 diluted earnings per share for the prior year. Excluding the Merchant Services portfolio sale, diluted earnings per share for the year ended December 31, 2010 were $3.09.
“We are pleased to report continued core earnings growth for the full year of 2011,” noted Joseph V. Roller II, president and CEO. “Our 2011 results are evidence that we continue to execute our business plans and remain focused on providing exceptional service to our customers.”
“The Bank experienced another historic year for deposit growth with an increase of $131.8 million (13.3%) as consumers and businesses gravitated to more community-oriented institutions. Loan growth achieved similar success with a $58.0 million (21.3%) increase in residential mortgages and a $53.7 million (30.2%) increase in commercial mortgage loans. While we expect the industry will continue to face the challenges of modest economic growth, a low interest rate environment, and increasing regulatory burden in 2012, we are confident in our ability to execute on our strategies to be the compelling choice for consumers and businesses in our markets,” added Mr. Roller.
For the year ended December 31, 2011 net interest income increased $1,982,000, or 4.7%, to $43.7 million compared to $41.8 million for 2010. The increase in net interest income for the year was driven primarily by sustained deposit and loan growth, as well as a reduction in interest paid on deposits. Lower yields earned on investment securities was the principal cause for the decrease in the Bank’s net interest margin of 25 basis points to 3.90% for the year compared to 4.15% for the year ended December 31, 2010.