Cambridge Bancorp and its subsidiary, Cambridge Trust Co., have reported unaudited net income of $3.2 million for the second quarter, a drop from $4.7 million during the same period in 2010.

The key factor driving the decrease in net income was the sale of the bank’s Merchant Services portfolio during the second quarter of 2010. The after tax impact on earnings of that sale was $1.6 million or 42-cents per diluted share, according to a statement.

For the six months ended June 30, unaudited net income was $6.28 million compared to $7.4 million for the first half of 2010.

"We are pleased to report continued solid earnings through the second quarter of the year. Our performance was driven primarily by robust growth in commercial and residential mortgage loans coupled with a healthy increase in wealth management income. Although economic growth is disappointingly slow, the bank is positioned to capitalize on new business opportunities," said Joseph V. Roller II, president and CEO.