Cambridge Bancorp and its subsidiary, Cambridge Trust Co., have reported unaudited net income of $3.1 million for the first quarter 2011, up from $2.7 million for the same quarter in 2010. The quarter-over-quarter earnings increase of $359,000 (13.1 percent) was attributable to a combination of solid growth in wealth management income and interest income on loans.

"I am proud to report a solid first quarter performance," said Joseph V. Roller II, president and CEO. "The results reflect the benefits of our steady focus and continued execution of our business plans."

He added: "We were pleased by the healthy rate of growth in both loans and deposits during the first quarter of 2011. This performance however should be viewed in the context of sustained pressure on our net interest margin."

Total loans outstanding increased by $38.1 million (6.7 percent) to $606.7 million since year-end 2010 and by $62.1 million (11.4 percent) over March 31, 2010. The loan growth in the first quarter of 2011 was primarily attributable to an increase in residential mortgages of $28 million (10.3 percent) and commercial mortgages of $15 million (8.4 percent).