Cambridge Bancorp posted a 6.3 percent increase in net income for the third quarter this year, coming in at $3.9 million compared with $3.7 million in the year-ago period.
"We are pleased to report another solid increase in the bank’s quarter-over-quarter performance," President and CEO Joseph V. Roller II said in a statement. "The bank sustained the trend of growth in loans, which have increased by $90.9 million through the third quarter of 2014. Additionally, wealth management continues to make a significant contribution to the bank’s noninterest income."
Year-over-year, net interest income increased $579,000, or 5 percent, to $12.1 million for the third quarter. For the nine-month period ended Sept. 30, the bank posted a $2.2 million, or 6.4 percent, increase in net interest income, largely a function of higher interest on loans that was offset by a decrease in the bank’s smaller investment portfolio and lower yields.
Noninterest income increased $596,000, or 10.1 percent, compared with the year-ago period, boosted by a $617,000, or 14.2 percent, increase in wealth management income. The bank’s assets under management totaled $2.3 billion at the third quarter’s end, compared with $2.1 billion at year-end 2013.
Noninterest expenses increased $960,000, or 8.5 percent, to $12.3 million in the third quarter, mainly due to higher salaries and benefits, increased occupancy and equipment expenses and other unspecified expenses.
Total loans outstanding inched up to $1 billion at Sept. 30 compared with $942.5 million at the year’s end. That represents an 11.6 percent increase from $896.4 million for the year-ago period. Most of the growth in the bank’s loan portfolio this year happened in residential mortgages, which grew 6.5 percent, and commercial mortgages, which grew 14.1 percent. The bank’s home equity portfolio also increased by $8.6 million, or 18.4 percent since year-end 2013.
Nonperforming loans as a percentage of total loans declined from 18 basis points at year-end 2013 to 16 basis points at the end of the third quarter. The bank’s allowance for loan losses totaled $13.7 million, or 1.33 percent or total loans outstanding, compared with $12.7 million, or 1.35 percent of total loans, at Dec. 31.
From year-end 2013, deposits decreased by $100.1 million, or 7.1 percent, to $1.3 billion. Total assets increased to $1.6 billion from $1.4 billion in the year-ago period.
