Growth in lending and wealth management drove up Cambridge Bancorp’s net income in the second quarter.
Net income for the quarter ended June 30 totaled $3.7 million, compared with $3.6 million in the year-ago period, representing an increase of $95,000 or 2 percent.
“We are pleased to report the bank continues to achieve consistent performance quarter-over-quarter,” President and CEO Denis K. Sheahan said in a statement. “The bank sustained the trend of growth in loans, and wealth management continues to make a significant contribution to noninterest income.”
Wealth management income increased $448,000, or 10.3 percent, over the year-ago period. Assets under management totaled $2.3 billion at the end of the second quarter. Noninterest income on the whole increased by $410,000, or 6.7 percent, to $6.5 million, from $6.1 million in the year-ago quarter.
The bank also posted increases in gains on loans held for sale ($143,000) and bank-owned life insurance ($21,000). Those were offset by declines in gains on disposition of investment securities ($137,000), ATM and debit card income ($17,000), deposit account fees ($14,000) and other income ($34,000).
Net interest income increased year-over-year $951,000, or 8.1 percent, to $12.8 million in the second quarter.
Total loans outstanding increased by $76.5 million, or 7.1 percent, to $1.2 billion from year-end 2014. The parent company for Cambridge Trust Co. attributed that to residential mortgage and home equity loan growth of $33.4 million, or 5.9 percent, and commercial mortgage loan growth of $44.6 million, or 10.1 percent.
Nonperforming loans represented 0.11 percent of total loans at June 30, down from 0.15 percent at year-end 2014. The allowance for loan losses totaled $15.2 million, or 1.31 percent of total loans outstanding, compared with $14.3 million and 1.32 percent at Dec. 31. In the second quarter, the company set aside $625,000 in provision for loan losses.
Total deposits increased $20.2 million, or 1.5 percent, since year-end 2014 and by $80.4 million, or 6.1 percent, year-over-year.
Total assets increased $91.5 million, or 5.8 percent, from Dec. 31 to $1.7 billion.
