Cambridge Bancorp, the holding company for Cambridge Trust Co., has reported unaudited net income of $4.7 million for the second quarter, compared to $2.5 million for the same period last year.

Key factors driving the $2.2 million, or 88 percent, increase in net income were the sale of the bank’s Merchant Services portfolio and continued growth in net interest income, according to a statement.

During the quarter, the bank sold its Merchant Services portfolio to Elavon Inc., a wholly owned subsidiary of U.S. Bancorp. The after tax impact on earnings of that sale was $1.6 million.

For the six months ended June 30, unaudited net income was $7.4 million compared to $4.5 million for the first half of 2009. Diluted earnings per share were $1.97 for the first six months of 2010 versus $1.21 for the same period in 2009.

"Our second quarter results are evidence that we continue to build on the momentum of our customer relationship strategy. We are encouraged that as the economy begins to gain traction, we will capitalize on opportunities for growth and remain focused on executing the bank’s business strategies across all business lines," said Joseph V. Roller II, president and CEO.