Cambridge Bancorp, the holding company for Cambridge Trust Co., booked a slight increase in its net income for the quarter ended June 30, rising to $3.6 million from $3.5 million in the year-ago period.
The $166,000, or 4.8 percent, increase in earnings was attributable to growth in both net interest income and noninterest income, and offset by an increase in noninterest expense.
"We are pleased to report favorable results in an environment characterized by continued low interest rates and intense competition," Joseph V. Roller II, president and CEO, said in a statement. "While the pace of economic growth has been moderate, the bank continues to build momentum across all business lines, especially lending and wealth management."
Since year-end 2013, total loans outstanding have increased by $44.6 million, or 4.7 percent, to $987 million. That increase broke down into $20.2 million, or 4 percent, in residential mortgage and home equity loans and $18.7 million, or 5.1 percent, in commercial mortgages.
Non-performing loans as a percentage of total loans stood at 0.14 percent at June 30, down slightly from 0.18 percent at Dec. 31. The company’s allowance for loan losses stood at $13.2 million or 1.34 percent of total loans outstanding at June 30, compared with $12.7 million, or 1.35 percent of total loans, at year-end 2013. During the second quarter, the provision for loan losses totaled $150,000.
Net interest income increased $720,000, or 6.5 percent, year-over-year to $11.8 million in the second quarter. Noninterest income increased $571,000, or 10.3 percent, to $6.1 million over the same time period. Wealth management income in particular increased $473,000, or 12.2 percent, year-over-year.
Assets under management grew to $2.3 billion at June 30, compared with $2.1 billion at year-end 2013. Noninterest income was also boosted by the disposition of investment securities ($151,000), debit card income ($33,000) and other income ($68,000). Those gains were offset by lower income produced from gains on loans sold of $105,000, bank-owned life insurance of $25,000, and deposit account fees of $24,000.
The bank’s net interest margin stabilized at 3.32 percent in the second quarter this year, compared with 3.31 percent for the same period last year. There was an increase of three basis points for the comparable six-month period.
Total deposits experienced a seasonal drop of $98.7 million, or 7 percent, since year-end 2013, yet increased by $63.4 million, or 5.1 percent, from the same time last year.
Total assets on June 30 remained flat from year-end 2013 at $1.5 billion.
