By a News Reporter-Staff News Editor at Investment Weekly News -- Cambridge Bancorp (OTCBB: CATC) reported unaudited net income of $3,511,000 for the first quarter of 2014 compared to $3,331,000 for the same quarter in 2013. The earnings increase of $180,000 (5.4%) was attributable to a combination of solid growth in net interest income and a modest increase in noninterest income partially offset by higher noninterest expense for the quarter ended March 31, 2014. Diluted earnings per share were $0.89 for the first quarter of 2014 versus $0.85 for the same period in 2013.
"We are pleased to report another strong quarter," noted Joseph V. Roller II, president and CEO. "The Bank continues to build off last year's momentum with growth across all areas of the Company."
Net interest income for the quarter ended March 31, 2014 was $11.8 million compared to $11.0 million in the first quarter of 2013. The quarter-over-quarter net interest income increase of $859,000 (7.8%) was driven by robust loan growth in 2013. Interest on loans for the first quarter of 2014 was $9.7 million, an increase of $1.3 million (15.6%) compared to the same quarter in 2013. This increase was offset by lower interest on taxable investment securities of $661,000 (24.5%) as the Bank has been shifting earning assets from investment securities to loans. This shift has benefitted the Bank's net interest margin, which overall increased by 5 basis points to 3.36% for the quarter compared to 3.31% for the quarter ended March 31, 2013.
Noninterest income of $6.0 million for the March 2014 quarter was up $156,000 (2.6%) compared to the same quarter in 2013. The Bank continued to grow Wealth Management income, which increased $440,000 (11.7%) between the comparable periods, from new account growth and market appreciation. Assets under management grew to $2.2 billion at the end of the first quarter 2014 from $2.1 billion at year-end 2013. The healthy increase in Wealth Management income was offset by a considerable reduction in gains on loans held for sale, which dropped from $298,000 to $25,000 quarter-over-quarter. Similar to the industry, the Bank experienced a precipitous drop in mortgage refinance activity compared to the first quarter of 2013.
The Bank sustained the trend of growth in loans during the first quarter of 2014. Total loans outstanding increased by $4.8 million to $947.2 million since year-end 2013 and by $173.5 million (22.4%) in comparison to March 31, 2013.
Non-performing loans as a percentage of total loans stood at 0.18% at March 31, 2014, unchanged from December 31, 2013. Loan quality remains sound and the Allowance for Loan Losses stood at $13.1 million or 1.38% of total loans outstanding at March 31, 2014. At December 31, 2013, the Allowance for Loan Losses was $12.7 million or 1.35% of total loans outstanding. In response to continued loan growth, the provision for loan losses was $375,000 for the current quarter.
Noninterest expense in the first quarter of 2014 totaled $12.3 million, an increase of $598,000 (5.1%) over the first quarter of 2013. Salaries and employee benefits, data processing costs and marketing contributed to the increase for the comparable periods.
Total deposits decreased by $104.1 million (7.4%) since year-end 2013, yet increased by $74.7 million (6.1%) over March 31, 2013.
Total assets at March 31, 2014 were $1.5 billion, relatively unchanged from year-end 2013. About Cambridge Bancorp Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 124-year-old Massachusetts chartered commercial bank with $1.5 billion in total assets and 12 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, Lincoln, and Weston. Cambridge Trust Company is one of New England's leaders in wealth management with $2.2 billion in client assets under management. The Wealth Management group maintains offices in Boston, Massachusetts, and Concord and Portsmouth, New Hampshire.
The accompanying unaudited condensed interim consolidated financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Cambridge Bancorp 2013 Annual Report, which is posted in the investor relations section of our website at cambridgetrust.com/annualreport. We will also post supplemental financial information for first quarter of 2014 at the same site later this month. Interim results are not necessarily reflective of the results for the entire year.
Keywords for this news article include: Cambridge Bancorp, Finance and Investment, Investment and Finance.
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