Cambridge Bancorp, and its subsidiary, Cambridge Trust Co., have reported unaudited net income of $3.3 million for the third quarter, a slight increase compared to $3.2 million for the same quarter in 2010.

Diluted earnings per share (EPS) increased to 85-cents for the third quarter of 2011 versus 84-cents for the same quarter in 2010.

For the nine months ending Sept. 30, unaudited net income was $9.6 million, a slight drop from $10.6 million for the same period in 2010. Diluted earnings per share were $2.49 for the nine month period versus $2.81 for 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.

"Our third quarter performance was solid with a modest increase in earnings over the same period in 2010. While prevailing conditions continue to constrain overall economic growth, the bank is well positioned to build, preserve and strengthen customer relationships," said Joseph V. Roller II, the bank’s president and CEO.

Total loans outstanding as of Sept. 30, 2011 were $649.9 million compared to $568.6 million at the end of last year and $547.9 million at Sept. 30, 2010. Since the beginning of 2011, total loans outstanding have increased $81.3 million, with the robust growth attributable to the residential and commercial mortgage loan portfolios.

Deposits continued to grow in the third quarter. Since year-end 2010, deposits have increased $63.5 million (6.4 percent). Total deposits stood at $1.1 billion at period-end compared to $994 million at Dec. 31, 2010. Total assets at period-end were $1.2 billion compared to $1.1 billion at the end of 2010.