Cambridge Bancorp Announces Record Earnings For Full-Year 2012

Cambridge Bancorp (OTCBB: CATC) today announced unaudited net income of $13,403,000 for the year ended December 31, 2012, representing an increase of $926,000, or 7.4%, compared to net income of $12,477,000 for the year ended December 31, 2011. Diluted earnings per share (EPS) were $3.45, a 6.2% increase over diluted earnings per share for the prior year.

“We are pleased to report solid financial performance for the year of 2012,” noted Joseph V. Roller II, president and CEO. “Our across-the-board balance sheet growth and steady increase in noninterest income demonstrate that we continue to achieve our goals throughout the Bank while offering a customer-centric banking experience.”

The Bank experienced another historic year for deposit growth with an increase of $155.7 million, or 13.8%, as consumers and businesses continued to place their liquid funds with sound financial institutions. Loan growth achieved similar success with an overall increase of $69.0 million, or 10.2%, for the year. Both residential and commercial mortgages showed solid growth for the year, with increases of $17.0 million (5.1%) and $44.8 million (19.4%), respectively. Home equity loans were down by $10.7 million for the year ending December 31, 2012 as many consumers elected to refinance second mortgages into first mortgages due to favorable interest rates.

For the year ended December 31, 2012 net interest income increased $2,143,000, or 4.9%, to $45.9 million compared to $43.7 million for 2011. The increase in net interest income for the year was driven primarily by loan growth, as well as a reduction in deposit costs.

The sustained low interest rate environment resulted in lower yields earned on investment securities and continued to place further pressure on loan pricing. These were the principal causes for the decrease in the Bank’s net interest margin of 32 basis points to 3.58% for the year compared to 3.90% for the year ended December 31, 2011.

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