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Cambridge Trust Co. said Tuesday morning that its $7.1 million unaudited net income for the second quarter went down by 42.7 percent, or $5.3 million, from the $12.4 million it recorded the same time last year. Diluted earnings per share was at $0.91 from April to June, which also decreased by 42.4 percent or $0.67 compared to the $1.58 figure from January to March.

The second quarter result was influenced by one-time, non-operating factors, the bank said in an earnings announcement Tuesday morning, mainly by the $3.1 million expense that come with the Northmark Bank merger and systems conversion. If not for the one-off expense, the company said its operating net income would have decreased by 24.3 percent, or $3.1 million, amounting to $9.6 million compared to the $12.7 million in the first quarter of 2023.

Many banks are facing significant year-over-year drops in income this quarter thanks to a slowing economy and higher interest rates that have reduced loan demand and, in some cases, driven banks to tighten lending standards.

For the first half of the year, Cambridge’s net income was at $19.5 million, a 27.6 percent or $7.4 million decline compared to the $27 million the same six months last year. Diluted earnings per share was at $2.49, which was a 35 percent slide from the $3.83 in the first six months of 2022.

“Following the industry turmoil earlier this year, we are now focused on benefiting from the disruption in the markets by acquiring new clients and talent. Specifically, we have hired four skilled relationship bankers to focus on acquiring deposits in Massachusetts and New Hampshire,” Denis K. Sheahan, the company’s Chairman, President and CEO, said in a statement. “In addition, I am pleased to welcome Jeffrey Smith, who is experienced in growing and developing wealth management businesses, to lead the Wealth Management division of Cambridge Trust.”

In a past release, the firm said Jeffrey Smith, a former wealth management executive at Rockland Trust Co., will help grow the bank’s wealth management operations in Massachusetts and New Hampshire.

Cambridge’s return on average assets was at 0.52 percent in the second quarter, while return on average equity ended at 5.43 percent. Adjusted net interest margin in the second quarter was at 2.21 percent, excluding the impact of its merger with Andover-based Northmark Bank.

As the economy slowed during the second quarter, the bank also saw its net interest margin shrink by another 40 basis points. Sheehan told analysts that the measure was likely to shrink to the lower 2 percent range in the quarters ahead. Despite slow loan demand from commercial real estate developers and landlords, the bank reported some growth in its C&I loan portfolio, which closed out June as 9 percent of the bank’s total loan book. Sheehan added that the bank sees continued opportunities to grow this type of lending, particularly among Boston-area startups with its existing, specialized “innovation baking” unit.

Deposits, excluding wholesale deposits, totaled to $4.09 billion as of June 30, which was slightly lower than the $4.13 billion the same time last year. The company reported its wholesale deposits were lower quarter on quarter, as total deposits decreased slightly by 4.6 percent or $214.2 million to $4.44 billion by June 30, compared to $4.66 billion by March 31. The bank didn’t specify year on year comparison for total deposits including wholesale deposits.

Total assets dipped by 0.7 percent or $39 million to $5.49 billion in the second quarter versus the $5.53 billion in the first quarter of 2023. Total loans slightly went up by 0.2 percent or $7.1 million to $4.03 billion by June 30 from the $4.02 billion reported as of March 31.

The company is also declaring a quarterly cash dividend of $0.67 per share.

Cambridge Trust stated in a slide deck presented to investors and analysts Tuesday morning that it plans to focus its efforts on: expanding its client base and deepening existing relationships to grow its deposit base; increasing brand awareness; expanding assets under management in its wealth management division; and growing and diversifying commercial banking relationships.