Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $3,475,000 for the second quarter of 2013 compared to $3,451,000 for the same quarter in 2012. The slight increase in earnings was primarily attributable to growth in noninterest income, offset by a decrease in net interest income. Diluted earnings per share were $0.89 for the second quarter of 2013, unchanged versus for the same quarter in 2012. For the six months ended June 30, 2013, unaudited net income was $6,806,000 compared to $6,736,000 for the first half of 2012. Diluted earnings per share were $1.75 for the first six months of 2013 versus $1.74 for the same period in 2012.
“Our second quarter results this year were in line with our expectations. Despite solid loan growth, we anticipated lower net interest income compared to last year due to continued pressure on our net interest margin,” notes Joseph V. Roller II, president and CEO. “While the low interest rate environment continues to present challenges, the Bank remains focused on executing its growth strategy,” said Roller.
Net interest income of $11.1 million for the second quarter of 2013 was $451,000 (3.9%) lower than the same quarter in 2012. For the six months ended June 30, 2013, net interest income of $22.0 million was $1.0 million (4.4%) lower than the same period in 2012.
Noninterest income increased across all categories by a total of $696,000 (14.4%) to $5.5 million for the second quarter of 2013 compared to $4.8 million for the same quarter in 2012. The Bank continued to build momentum generating wealth management income, which increased by $509,000 (15.1%) compared to the same quarter in 2012. Assets under management grew to $2.0 billion at the end of the second quarter 2013 from $1.8 billion at year-end 2012. Other notable contributors to the noninterest income increase for the second quarter of 2013 were income produced from gains on loans sold of $61,000, debit card income of $36,000, and gains from the disposition of investment securities of $33,000 as compared to the same quarter in 2012.