Cambridge Bancorp has reported a $3.45 million profit for the second quarter of 2012 compared to $3.17 million for the same quarter in 2011.

The $275,000, or 8.7 percent, increase in earnings was primarily attributable to growth in both net interest income and noninterest income, the bank said in a statement.

The extended low interest environment continues to negatively impact the bank’s net interest margin, which decreased by 43 basis points to 3.59 percent for the second quarter, compared to the same quarter in 2011; and by 30 basis points for the comparable six month period. Deposit growth has accelerated, with total deposits increasing by $77.3 million, a 7 percent increase, since year-end 2011.

For the second quarter of 2012, noninterest expense totaled $11.1 million, an increase of $525,000, or about 5 percent, compared to the same quarter in 2011.

Noninterest income for the second quarter was $4.8 million compared to $4.5 million for the same quarter in 2011.

"While the ongoing low interest rate environment presents challenges, the bank is prepared to compete in this environment and is positioned to capitalize on new business opportunities," said Joseph Roller II, president and CEO, in a statement.

The bank recently received permission from the state Division of Banks to open a branch in Boston’s South End.