Cambridge Bancorp, the parent company of Cambridge Trust, saw a slight increase in its net income for the second quarter of 2013, to $3.475 million from $3.451 million for the same period last year.

In a statement announcing its second quarter earnings, the company attributed this small increase mainly to growth in noninterest income, offset by a decrease in net interest income.

"Our second quarter results this year were in line with our expectations. Despite solid loan growth, we anticipated lower net interest income compared to last year due to continued pressure on our net interest margin," Joseph Roller, president and CEO, said in the statement. "While the low interest rate environment continues to present challenges, the bank remains focused on executing its growth strategy."

Net interest income for the quarter ended June 30 declined 3.9 percent from the same period last year, to $11.1 million. Noninterest income across all categories increased 14.4 percent to $5.5 million from $4.8 million during the same quarter last year.

The bank’s net interest margin decreased by 28 basis points to 3.31 percent for the second quarter of 2013 compared with the same quarter in 2012. There was a decrease of 34 basis points for the comparable six month period, which the company attributed to the extended low interest environment.

Since year-end 2012, total loans outstanding have increased by $89.7 million, or 12.1 percent, to $831.9 million. The company attributed that increase to residential loan growth of $57.9 million, or 16.6 percent, and commercial mortgage loan growth of $29 million, or 10.5 percent, as low interest rates provide an attractive environment for qualified households and businesses looking to purchase or refinance properties.

Non-performing loans as a percentage of total loans stood at 0.17 percent at June 30, a slight decrease from 0.21 percent at Dec. 31, 2012. Allowance for loan losses stood at $11.4 million, or 1.36 percent, of total loans outstanding at June 30, compared with $10.9 million, or 1.47 percent, of total loans outstanding at the end of 2012. Primarily in response to continued loan growth, the provision for loan losses was $200,000 for the current quarter.

Total deposits decreased by $34.4 million, or 2.7 percent, since year-end 2012 and increased by $44 million, or 3.7 percent, over last year. Total assets remained relatively flat since year-end 2012 at $1.4 billion.