Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $3,451,000 for the second quarter of 2012 compared to $3,176,000 for the same quarter in 2011. The $275,000 (8.7%) increase in earnings was primarily attributable to growth in both net interest income and noninterest income. Diluted earnings per share were $0.89 for the second quarter of 2012 versus $0.83 for the same quarter in 2011. For the six months ended June 30, 2012, unaudited net income was $6,736,000 compared to $6,281,000 for the first half of 2011. Diluted earnings per share were $1.74 for the first six months of 2012 versus $1.64 for the same period in 2011.
“We are pleased to report continued solid earnings through the second quarter of 2012. A sustained increase in deposits and loans drove core earnings, complemented by an upswing in Wealth Management’s assets under management, which has grown by $238 million to $1.7 billion since year-end 2011. While the ongoing low interest rate environment presents challenges, the Bank is prepared to compete in this environment and is positioned to capitalize on new business opportunities. We are also pleased to announce that the Bank received approval to open a branch in Boston’s South End,” notes Joseph V. Roller II, president and CEO.
Net interest income of $11.5 million for the second quarter of 2012 was $545,000 (5.0%) higher than the same quarter in 2011. For the six months ended June 30, 2012, net interest income of $23.1 million was $1.5 million (7.0%) higher than the same period in 2011.
Noninterest income for the second quarter of 2012 was $4.8 million compared to $4.5 million for the same quarter in 2011. The Bank continued to build momentum by generating an additional $77,000 (9.7%) in activity fee income and increasing wealth management income by $56,000 (1.7%) between the comparable periods. Gains on loans sold resulted in $76,000 of noninterest income for the quarter ended June 30, 2012. This is the first quarter the Bank sold 30-year conforming loans to the secondary market. The Bank maintains servicing rights on these loans. Additionally, the second quarter of 2012 contained $172,000 of gains on disposition of investment securities, an increase of $79,000 as compared to the same quarter in 2011.