Cambridge Bancorp Reports First Quarter Results

Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $3,105,000 for the first quarter of 2011, or $0.82 per diluted share, compared to $2,746,000, or $0.73 per diluted share, for the same quarter in 2010. The quarter-over-quarter earnings increase of $359,000 (13.1%) was attributable to a combination of solid growth in wealth management income and interest income on loans.

“I am proud to report a solid first quarter performance,” noted Joseph V. Roller II, president and CEO. “The results reflect the benefits of our steady focus and continued execution of our business plans.”

“Noninterest income provided a nice lift to first quarter earnings,” said Roller. Total noninterest income of $4.6 million for the first quarter of 2011 was $522,000 (12.7%) higher than the same period in 2010. The Bank continued to build momentum in generating wealth management income, which increased $383,000 (13.3%) between the comparable periods, from new account growth and a favorable equity market. In addition, gains taken on investment securities were $268,000 in the most recent quarter compared to $138,000 in the first quarter of 2010.

“We were pleased by the healthy rate of growth in both loans and deposits during the first quarter of 2011. This performance however should be viewed in the context of sustained pressure on our net interest margin,” added Roller.

Total loans outstanding increased by $38.1 million (6.7%) to $606.7 million since year-end 2010 and by $62.1 million (11.4%) over March 31, 2010. The loan growth in the first quarter of 2011 was primarily attributable to an increase in residential mortgages of $28.0 million (10.3%) and commercial mortgages of $15.0 million (8.4%).

Non-performing loans as a percentage of total loans stood at 0.15% at March 31, 2011, a decrease compared to 0.20% at December 31, 2010. Loan quality remains sound and the Allowance for Loan Losses stood at $9.4 million or 1.55% of total loans outstanding at March 31, 2011. At December 31, 2010, the Allowance for Loan Losses was $8.9 million or 1.56% of total loans outstanding. The Bank experienced a net recovery during the first quarter of 2011, which increased the Allowance for Loan Losses above the $250,000 Provision for Loan Losses made during the period.

Total deposits increased by $15.8 million to a record $1.0 billion since year-end 2010 and by $130.1 million (14.8%) over March 31, 2010.

The Bank’s net interest margin was 3.89% for the three months ended March 31, 2011 compared to 4.32% for the first quarter of 2010. The net interest margin decrease of 43 basis points for the comparable periods is primarily attributed to lower yields earned on the Bank’s investment securities.

Noninterest expense in the first quarter of 2011 totaled $10.4 million, an increase of $324,000 (3.2%) over the first quarter of 2010. The increase in noninterest expense was spread across multiple areas, with the largest being $184,000 (11.2%) in occupancy and equipment, principally due to branch expansion and technology-related investments.

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 121-year-old Massachusetts chartered commercial bank with $1.1 billion in total assets and 11 Massachusetts locations in Cambridge, Beacon Hill, Belmont, Concord, Lexington, Lincoln, and Weston. Cambridge Trust Company is one of New England’s leaders in wealth management with $1.5 billion in client assets under management. In addition, Cambridge Trust Company of New Hampshire offers wealth management services at two New Hampshire locations, Concord and Exeter.

The accompanying unaudited condensed interim consolidated financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Cambridge Bancorp 2010 Annual Report, which is posted in the investor relations section of our website at www.cambridgetrust.com/annualreport. We will also post supplemental financial information for first quarter of 2011 at the same site later this month. Interim results are not necessarily reflective of the results for the entire year.

 

Financial Highlights:
CAMBRIDGE BANCORP
QUARTERLY UNAUDITED RESULTS
March 31, 2011
Dollar amounts in thousands (except share data)
           
Quarter Ended
March 31,
  2011     2010  
 
Interest Income $ 11,601 $ 11,684
Interest Expense   1,038     1,311  
Net Interest Income 10,563 10,373
Provision for Loan Losses 250 300
Non-Interest Income 4,642 4,120
Non-Interest Expense   10,414     10,090  
Income Before Taxes 4,541 4,103
Income Taxes   1,436     1,357  
Net Income $ 3,105   $ 2,746  
 

Data Per Common Share:
 
Basic Earnings Per Share $ 0.82 $ 0.74
Diluted Earnings Per Share $ 0.82 $ 0.73
Dividends Declared Per Share $ 0.35 $ 0.35
 
Avg. Common Shares Outstanding:
Basic 3,764,423 3,724,353
Diluted 3,809,299 3,736,468
 

Selected Operating Ratios:
 
Net Interest Margin 3.89 % 4.32 %
Return on Average Assets, after taxes 1.09 % 1.09 %
Return on Average Equity, after taxes 13.90 % 12.90 %
 
 
March 31, December 31, March 31,
  2011     2010     2010  
 
Total Assets $ 1,147,143 $ 1,130,988 $ 1,020,840
Total Loans 606,680 568,568 544,601
Non-Performing Loans 884 1,147 1,122
Allowance for Loan Losses 9,379 8,885 9,101
Allowance to Non-Performing Loans 1060.97 % 774.31 % 810.81 %
Allowance to Total Loans 1.55 % 1.56 % 1.67 %
Total Deposits 1,009,625 993,809 879,521
Total Stockholders' Equity 90,234 89,218 84,155
 
Book Value Per Share $ 23.90 $ 23.73 $ 22.53
Tangible Book Value Per Share $ 23.75 $ 23.58 $ 22.30
     
CAMBRIDGE BANCORP
UNAUDITED CONSOLIDATED BALANCE SHEETS
   
March 31, December 31,
2011 2010
(In thousands)
ASSETS
 
Cash and due from banks $ 46,720 $ 15,756
Overnight investments    
Total cash and cash equivalents 46,720 15,756
Investment securities:
Available for sale, at fair value 383,698 434,829
Held-to-maturity, at amortized cost 75,081   81,272  
Total investment securities 458,779 516,101
Loans:
Residential mortgage 300,961 272,928
Commercial mortgage 192,950 177,943
Home equity 62,700 66,170
Commercial 36,393 38,258
Consumer 13,676   13,269  
Total loans 606,680 568,568
Allowance for loan losses (9,379 ) (8,885 )
Net loans 597,301 559,683
 
Stock in FHLB of Boston, at cost 4,806 4,806
Bank owned life insurance 16,926 11,811
Banking premises and equipment, net 5,885 6,043
Other real estate owned
Accrued interest receivable 4,067 4,478
Other assets 12,659   12,310  
Total assets $ 1,147,143   $ 1,130,988  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Deposits:
Demand $ 246,521 $ 233,199
Interest bearing checking 272,448 280,060
Money market 60,260 55,026
Savings 298,868 287,785
Certificates of deposit 131,528   137,739  
Total deposits 1,009,625 993,809
 
Short-term borrowings 449 1,902
Long-term borrowings 30,000 30,000
Other liabilities 16,835   16,059  
Total liabilities 1,056,909   1,041,770  
Stockholders' equity:
Common stock, par value $1.00; Authorized
5,000,000 shares; Outstanding: 3,776,175 and
3,759,891 shares, respectively 3,776 3,760
Additional paid-in capital 21,946 21,456
Retained earnings 63,074 61,375
Accumulated other comprehensive income 1,438   2,627  
Total stockholders’ equity 90,234   89,218  
Total liabilities and stockholders’ equity $ 1,147,143   $ 1,130,988  
   
CAMBRIDGE BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
       
Quarter Ended March 31,
2011 2010
(In thousands, except per share data)
 
Interest income:
Interest on loans $ 7,609 $ 7,367
Interest on taxable investment securities 3,498 3,865
Interest on tax exempt investment securities 491 447
Interest on overnight investments 3 5
Total interest income 11,601 11,684
 
Interest expense:
Interest on deposits 743 956
Interest on borrowed funds 295 355
Total interest expense 1,038 1,311
 
Net interest income 10,563 10,373
 
Provision for loan losses 250 300
 
Net interest income after provision for loan losses 10,313 10,073
 
Noninterest income:
Wealth management income 3,260 2,877
Deposit account fees 538 502
ATM/Debit card income 228 218
Merchant card services 138
Bank owned life insurance income 114 87
Gain on disposition of investment securities 268 138
Other income 234 160
Total noninterest income 4,642 4,120
 
Noninterest expense:
Salaries and employee benefits 5,902 5,818
Occupancy and equipment 1,827 1,643
Data processing 895 812
Professional services 444 384
Marketing 438 375
FDIC Insurance 312 292
Other expenses 596 766
Total noninterest expense 10,414 10,090
 
Income before income taxes 4,541 4,103
 
Income tax expense 1,436 1,357
   
Net income $ 3,105 $ 2,746
 
Per share data:
 
Basic earnings per common share $ 0.82 $ 0.74
Diluted earnings per common share $ 0.82 $ 0.73
 
Average shares outstanding - basic 3,764,423 3,724,353
Average shares outstanding - diluted 3,809,299 3,736,468
   
CAMBRIDGE BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Three Months Ended March 31,
2011 2010
(In thousands)
Cash flows provided by operating activities:
Net income $ 3,105 $ 2,746
Adjustments to arrive at net cash provided by operating activities:
Provision for loan losses 250 300
Amortization of deferred charges/(income), net 84 125
Depreciation and amortization 367 355
Bank owned life insurance income (114 ) (87 )
Gain on disposition of investment securities (268 ) (138 )
Compensation expense from stock option
and restricted stock grants 91 75
Change in accrued interest receivable, deferred
taxes, other assets and other liabilities 1,473 540
Other, net 248   96  
Net cash provided by operating activities 5,236   4,012  
Cash flows used by investing activities:
Origination of loans (66,199 ) (31,371 )
Purchase of:
Investment securities - AFS (10,310 ) (39,493 )
Investment securities - HTM (3,143 )
Maturities, calls and principal payments of:
Loans 27,996 24,602
Investment securities - AFS 34,640 30,665
Investment securities - HTM 6,181 1,418
Proceeds from sale of investment securities - AFS 25,258 28,994
Purchase of bank owned life insurance (5,001 )
Purchase of banking premises and equipment (209 ) (227 )
Net cash used by investing activities 12,356   11,445  
Cash flows provided by financing activities:
Net increase in deposits 15,817 6,754
Net increase/(decrease) in short-term borrowings (1,453 ) 738
Repayment of long-term borrowings (8,000 )
Proceeds from issuance of common stock 436 375
Repurchase of common stock (109 )
Cash dividends paid on common stock (1,319 ) (1,304 )
Net cash provided by financing activities 13,372   (1,437 )
Net increase (decrease) in cash and cash equivalents 30,964 14,020
Cash and cash equivalents at beginning of period 15,756   26,174  
Cash and cash equivalents at end of period $ 46,720   $ 40,194  
 
Supplemental disclosure of cash flow information:
Cash paid for interest $ 1,045 $ 1,319
Cash paid for income taxes 145 550
Non-cash transactions:
Change in accumulated other comprehensive income, net of taxes (1,189 ) 555

Copyright Business Wire 2010

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