Cambridge Bancorp, parent of Cambridge Trust Co., has reported almost $3.7 million in net income for the third quarter, up from $3.3 for the same quarter in 2011.
"The bank had a strong third quarter with sustained balance sheet growth. Our noninterest income growth of 21 percent over the same quarter last year is especially important as net margins are under continued pressure," said Joseph V. Roller II, the bank’s president and CEO.
For the nine months ending Sept. 30, 2012, unaudited net income was $10.4 million, compared to $9.6 million for the same period in 2011.
Net interest income grew slightly to $11.2 million for the third quarter of 2012, an increase of $230,000 (2.1 percent) over the third quarter of 2011. For the nine months ending Sept. 30, 2012, net interest income was $34.3 million, compared to $32.5 million for the same period in 2011. The increase of $1,749,000 (5.4 percent) in net interest income for the first nine months of 2012 versus the same period in 2011 was primarily a function of continued growth in the loan portfolio and a reduction in the cost for deposits, the company said.
Noninterest income of $5.6 million for the third quarter was up $975,000 (21 percent) compared to the same quarter in 2011. The bank continued to generate growth in wealth management income, which increased by $388,000 (11.2 percent) compared to the third quarter of 2011. Gains on loans sold resulted in $200,000 of noninterest income for the quarter ended Sept. 30. This is the second quarter the bank sold 30-year conforming loans to the secondary market. The bank maintains servicing rights on these loans. Additionally, the third quarter of 2012 contained a $324,000 gain on disposition of investment securities, an increase of $220,000 compared to the same quarter in 2011.
Non-performing loans as a percentage of total loans stood at 22 basis points at Sept. 30, a modest increase from 18 basis points at year-end 2011. Allowance for loan losses stood at $11 million, or 1.51 percent of total loans outstanding at Sept. 30.
Deposits continued to grow in the third quarter. Since year-end 2011, deposits have increased $93.6 million (8.3 percent). Total deposits stood at $1.2 billion at period-end compared to $1.1 billion at Dec. 31, 2011. Total assets at period-end were $1.4 billion compared to $1.3 billion at the end of 2011.
