Photo by James Sanna | Banker & Tradesman Staff

Cambridge Trust Co. saw core deposits increase 32 percent in 2021, driven in part by a marketing campaign that the bank said took advantage of the disruption caused by the region’s merger activity.

The Cambridge-based bank saw total deposits increase by 27.3 percent in 2021 and by 10 percent in the fourth quarter. The bank had $4.33 billion in total deposits at the end of 2021.

Core deposits, which exclude certificates of deposit, increased by $1.02 billion in 2021 to $4.17 billion.

“The majority of this growth was from existing clients deepening their relationship,” Denis Sheahan, Cambridge Trust’s chairman, president and CEO, said Tuesday during the bank’s fourth quarter earnings call. “It was buttressed by a more aggressive marketing and money market campaign to take advantage of the merger noise in the marketplace – and it worked.”

Sheahan said more than one-third of the deposit growth came from new customers.

The campaign promoting money market accounts took place during the fourth quarter. The bank’s money market deposits increased by 31 percent since the end of the third quarter and more than doubled year-over-year, according to the bank’s earnings statement. Citing business strategy, Sheahan declined to discuss the rate offered on the money market accounts when questioned by an analyst.

Sheahan acknowledged that the core deposit growth had added significant liquidity to the bank’s balance sheet, both in cash and securities. He said the bank planned to use the excess liquidity for loans, adding that “it will take some time to deploy this level of liquidity into loans, and we’re working on it.”

Cambridge Trust has forecast loan growth of 6 percent to 8 percent in 2022, and Sheahan said he hopes to exceed that growth. Michael Carotenuto, Cambridge Trust’s chief financial officer, said the bank has a current pipeline of about $60 million in commercial loans and $83 million in residential loans.

Sheahan said he was optimistic about loan growth in the bank’s Greater Boston and New Hampshire markets as economic conditions improved. He noted that the region’s life sciences, technology and innovation economies provide lending opportunities in sectors the bank emphasizes, including housing, multi-family residences, industrial, lab space and construction.

He also sees growth opportunities in the market disruption caused by mergers and acquisitions.

“Recent bank consolidation should provide opportunity as we are an alternative to the larger merged companies for both talent and clients,” Sheahan said.

Cambridge Trust Co. had fourth quarter net income of $13.3 million, or diluted earnings per share of $1.88, compared to $13 million, or diluted earnings per share of $1.86, in the fourth quarter of 2020. The bank’s full-year 2021 net income was $54 million, or diluted earnings per share of $7.69, compared to $32 million, or diluted earnings per share of $5.03, in 2020.