Cambridge Bancorp Reports First Quarter Results

Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $3,511,000 for the first quarter of 2014 compared to $3,331,000 for the same quarter in 2013. The earnings increase of $180,000 (5.4%) was attributable to a combination of solid growth in net interest income and a modest increase in noninterest income partially offset by higher noninterest expense for the quarter ended March 31, 2014. Diluted earnings per share were $0.89 for the first quarter of 2014 versus $0.85 for the same period in 2013.

“We are pleased to report another strong quarter,” noted Joseph V. Roller II, president and CEO. “The Bank continues to build off last year’s momentum with growth across all areas of the Company.”

Net interest income for the quarter ended March 31, 2014 was $11.8 million compared to $11.0 million in the first quarter of 2013. The quarter-over-quarter net interest income increase of $859,000 (7.8%) was driven by robust loan growth in 2013. Interest on loans for the first quarter of 2014 was $9.7 million, an increase of $1.3 million (15.6%) compared to the same quarter in 2013. This increase was offset by lower interest on taxable investment securities of $661,000 (24.5%) as the Bank has been shifting earning assets from investment securities to loans. This shift has benefitted the Bank’s net interest margin, which overall increased by 5 basis points to 3.36% for the quarter compared to 3.31% for the quarter ended March 31, 2013.

Noninterest income of $6.0 million for the March 2014 quarter was up $156,000 (2.6%) compared to the same quarter in 2013. The Bank continued to grow Wealth Management income, which increased $440,000 (11.7%) between the comparable periods, from new account growth and market appreciation. Assets under management grew to $2.2 billion at the end of the first quarter 2014 from $2.1 billion at year-end 2013. The healthy increase in Wealth Management income was offset by a considerable reduction in gains on loans held for sale, which dropped from $298,000 to $25,000 quarter-over-quarter. Similar to the industry, the Bank experienced a precipitous drop in mortgage refinance activity compared to the first quarter of 2013.

The Bank sustained the trend of growth in loans during the first quarter of 2014. Total loans outstanding increased by $4.8 million to $947.2 million since year-end 2013 and by $173.5 million (22.4%) in comparison to March 31, 2013.

Non-performing loans as a percentage of total loans stood at 0.18% at March 31, 2014, unchanged from December 31, 2013. Loan quality remains sound and the Allowance for Loan Losses stood at $13.1 million or 1.38% of total loans outstanding at March 31, 2014. At December 31, 2013, the Allowance for Loan Losses was $12.7 million or 1.35% of total loans outstanding. In response to continued loan growth, the provision for loan losses was $375,000 for the current quarter.

Noninterest expense in the first quarter of 2014 totaled $12.3 million, an increase of $598,000 (5.1%) over the first quarter of 2013. Salaries and employee benefits, data processing costs and marketing contributed to the increase for the comparable periods.

Total deposits decreased by $104.1 million (7.4%) since year-end 2013, yet increased by $74.7 million (6.1%) over March 31, 2013.

Total assets at March 31, 2014 were $1.5 billion, relatively unchanged from year-end 2013.

About Cambridge Bancorp

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 124-year-old Massachusetts chartered commercial bank with $1.5 billion in total assets and 12 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, Lincoln, and Weston. Cambridge Trust Company is one of New England’s leaders in wealth management with $2.2 billion in client assets under management. The Wealth Management group maintains offices in Boston, Massachusetts, and Concord and Portsmouth, New Hampshire.

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 2013 Annual Report, which is posted in the investor relations section of our website at cambridgetrust.com/annualreport. We will also post supplemental financial information for first quarter of 2014 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, 2014
Dollar amounts in thousands (except share data)
 
 
Quarter Ended
March 31,
2014 2013
 
Interest Income $ 12,337 $ 11,585
Interest Expense   516     623  
Net Interest Income 11,821 10,962
Provision for Loan Losses 375 200
Non-Interest Income 6,045 5,889
Non-Interest Expense   12,267     11,669  
Income Before Taxes 5,224 4,982
Income Taxes   1,713     1,651  
Net Income $ 3,511   $ 3,331  
 

Data Per Common Share:
 
Basic Earnings Per Share $ 0.90 $ 0.86
Diluted Earnings Per Share $ 0.89 $ 0.85
Dividends Declared Per Share $ 0.42 $ 0.39
 
Avg. Common Shares Outstanding:
Basic 3,859,424 3,855,467
Diluted 3,939,980 3,918,832
 

Selected Operating Ratios:
 
Net Interest Margin 3.36 % 3.31 %
Return on Average Assets 0.94 % 0.96 %
Return on Average Equity 12.62 % 12.83 %
 
 
March 31, December 31, March 31,
2014   2013   2013  
 
Total Assets $ 1,482,814 $ 1,533,710 $ 1,365,658
Total Loans 947,247 942,451 773,723
Non-Performing Loans 1,702 1,703 1,460
Allowance for Loan Losses 13,086 12,708 11,146
Allowance to Non-Performing Loans 768.80 % 746.11 % 763.27 %
Allowance to Total Loans 1.38 % 1.35 % 1.44 %
Total Deposits 1,304,971 1,409,047 1,230,304
Total Stockholders' Equity 112,564 109,283 104,796
 
Book Value Per Share $ 28.79 $ 28.13 $ 27.18
Tangible Book Value Per Share $ 28.59 $ 27.93 $ 26.98
     

CAMBRIDGE BANCORP

UNAUDITED CONSOLIDATED BALANCE SHEETS
 
 
March 31, December 31,
2014 2013
(In thousands)

ASSETS
 
Cash and cash equivalents $ 25,056 $ 88,107
 
Investment securities:
Available for sale, at fair value 380,361 388,793
Held to maturity, at amortized cost 74,916 59,181
Total investment securities 455,277 447,974
 
Loans held for sale, at lower of cost or fair value 416 403
 
Loans:
Residential mortgage 464,429 458,176
Commercial mortgage 365,115 363,294
Home equity 43,710 46,635
Commercial 51,328 50,758
Consumer 22,665 23,588
Total loans 947,247 942,451
Allowance for loan losses (13,086) (12,708)
Net loans 934,161 929,743
         
Stock in FHLB of Boston, at cost 6,231 6,231
Bank owned life insurance 23,719 23,555
Banking premises and equipment, net 9,482 9,951
Accrued interest receivable 3,610 3,626
Other assets 24,862 24,120
Total assets $ 1,482,814 $ 1,533,710
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 
Deposits:
Demand $ 354,747 $ 382,255
Interest bearing checking 318,412 335,010
Money market 84,407 78,410
Savings 423,770 489,160
Certificates of deposit 123,635 124,212
Total deposits 1,304,971 1,409,047

 
Short-term borrowings 50,000
Long-term borrowings
Other liabilities 15,279 15,380
Total liabilities 1,370,250 1,424,427
Stockholders' equity:
Common stock, par value $1.00; Authorized
10,000,000 shares; Outstanding: 3,910,240 and
3,884,851 shares, respectively 3,910 3,885
Additional paid-in capital 26,847 26,027
Retained earnings 84,926 83,479
Accumulated other comprehensive income/(loss) (3,119) (4,108)
Total stockholders’ equity 112,564 109,283
Total liabilities and stockholders’ equity $ 1,482,814 $ 1,533,710
     

CAMBRIDGE BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 
         
Quarter Ended March 31,
2014 2013
(In thousands, except per share data)
 
Interest income:
Interest on loans $ 9,666 $ 8,365
Interest on taxable investment securities 2,033 2,694
Interest on tax exempt investment securities 602 507
Dividends on FHLB of Boston stock 23 5
Interest on overnight investments 13 14
Total interest income 12,337 11,585
 
Interest expense:
Interest on deposits 495 494
Interest on borrowed funds 21 129
Total interest expense 516 623
 
Net interest income 11,821 10,962
 
Provision for loan losses 375 200
 
Net interest income after provision for loan losses 11,446 10,762
 
Noninterest income:
Wealth management income 4,185 3,745
Deposit account fees 633 648
ATM/Debit card income 277 256
Bank owned life insurance income 164 176
Gain on disposition of investment securities 522 600
Gain on loans held for sale 25 298
Other income 239 166
Total noninterest income 6,045 5,889
 
Noninterest expense:
Salaries and employee benefits 7,093 6,769
Occupancy and equipment 2,097 2,064
Data processing 1,131 983
Professional services 554 512
Marketing 529 465
FDIC Insurance 194 181
Other expenses 669 695
Total noninterest expense 12,267 11,669
 
Income before income taxes 5,224 4,982
 
Income tax expense 1,713 1,651
   
Net income $ 3,511 $ 3,331
 
Per share data:
 
Basic earnings per common share $ 0.90 $ 0.86
Diluted earnings per common share $ 0.89 $ 0.85
 
Average shares outstanding - basic 3,859,424 3,855,467
Average shares outstanding - diluted 3,939,980 3,918,832
     
CAMBRIDGE BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
       
Quarter Ended March 31,
2014 2013
(In thousands)
 
 
Net income $ 3,511 $ 3,331
 
Other comprehensive income/(loss), net of tax:
Defined benefit retirement plans:
Change in unfunded retirement liability (2) (85)
Unrealized gains/(losses) on Available for
Sale securities:
Unrealized holding gains/(losses) arising
during the period 1,326 (1,593)
Less: reclassification adjustment for gains
recognized in net income (335) (385)
   
Other comprehensive income/(loss) 989 (2,063)
   
Comprehensive income $ 4,500 $ 1,268
 
 
CAMBRIDGE BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
               
 
Quarter Ended March 31,
2014 2013
(In thousands)
Cash flows provided by operating activities:
Net income $ 3,511 $ 3,331
Adjustments to arrive at net cash provided by operating activities:
Provision for loan losses 375 200
Amortization of deferred charges/(income), net 153 343
Depreciation and amortization 461 386
Bank owned life insurance income (164) (176)
Gain on disposition of investment securities (522) (600)
Compensation expense from stock option
and restricted stock grants 139 114
Change in loans held for sale (13) 485
Change in accrued interest receivable, deferred taxes,
other assets and other liabilities (1,360) 709
Other, net 11 20
Net cash provided by operating activities 2,591 4,812
Cash flows used by investing activities:
Origination of loans (41,988) (65,027)
Purchase of:
Investment securities - AFS (16,747) (21,456)
Investment securities - HTM (17,336) (497)
Maturities, calls and principal payments of:
Loans 37,101 33,467
Investment securities - AFS 11,137 30,659
Investment securities - HTM 1,589 5,510
Proceeds from sale of investment securities - AFS 16,028 24,119
Decrease in FHLB of Boston stock 183
Purchase of banking premises and equipment 8 (656)
Net cash provided/(used) by investing activities (10,208) 6,302
Cash flows provided by financing activities:
Net decrease in deposits (104,076) (51,029)
Net increase in short-term borrowings 50,000 18,000
Repayment of long-term borrowings (20,000)
Proceeds from issuance of common stock 784 27
Repurchase of common stock (503)
Cash dividends paid on common stock (1,639) (1,504)
Net cash used by financing activities (55,434) (54,506)
Net decrease in cash and cash equivalents (63,051) (43,392)
Cash and cash equivalents at beginning of period 88,107 59,923
Cash and cash equivalents at end of period $ 25,056 $ 16,531
 
Supplemental disclosure of cash flow information:
Cash paid for interest $ 517 $ 623
Cash paid for income taxes 955 20
Non-cash transactions:
Change in accumulated other comprehensive income, net of taxes 989 (2,063)
 

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX