Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $3,285,000 for the first quarter of 2012, or $0.85 per diluted share, compared to $3,105,000, or $0.82 per diluted share, for the same quarter in 2011. The quarter-over-quarter earnings increase of $180,000 (5.8%) was attributable to a combination of solid growth in net interest income and a modest increase in wealth management income.
“I am pleased to report an increase in the Bank’s quarter-over-quarter performance,” noted Joseph V. Roller II, president and CEO. “We remain focused on delivering value for our customers.”
“Net interest income provided a nice lift to first quarter earnings,” said Roller. Total net interest income of $11.5 million for the first quarter of 2012 was $974,000 (9.2%) higher than the same period in 2011. The Bank continued to grow Wealth Management income, which increased $83,000 (2.5%) between the comparable periods, from new account growth and market appreciation. Assets under management grew to $1.7 billion at the end of the first quarter 2012 from $1.5 billion at year-end 2011.
“The Bank sustained the trend of growth in both loans and deposits during the first quarter of 2012. This positive performance however should be viewed in the context of persistent pressure on our net interest margin,” added Roller.Total loans outstanding increased by $18.1 million (2.7%) to $691.4 million since year-end 2011 and by $84.7 million (14.0%) over March 31, 2011. The loan growth in the first quarter of 2012 was primarily attributable to an increase in commercial mortgages of $12.5 million (5.4%) and to a lesser extent, residential mortgages of $5.2 million (1.6%). Non-performing loans as a percentage of total loans stood at 0.17% at March 31, 2012, basically unchanged compared to 0.18% at December 31, 2011. Loan quality remains sound and the Allowance for Loan Losses stood at $10.5 million or 1.51% of total loans outstanding at March 31, 2012. At December 31, 2011, the Allowance for Loan Losses was $10.2 million or 1.51% of total loans outstanding. In response to continued loan growth, the provision for loan losses was $300,000 for the current quarter.