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"Deposit and loan growth trends that developed in the early part of 2009 continued in the third quarter" notes Joseph V. Roller II, the Bank's president and CEO. "Our balance sheet growth clearly drove the significant revenue upswing. However, also noteworthy was the rebound in Wealth Management income. Certainly some of this improvement was attributed to a recovery in equity markets. More importantly, Wealth Management revenues are benefitting from a period of robust new account growth since the beginning of 2009."
Net interest income of $10.0 million for the September 2009 quarter was $1.0 million or 11.4% higher than the same quarter in 2008. For the nine months ending September 30, 2009, net interest income of $28.5 million was $3.1 million or 12.1% higher than the same period in 2008. The Bank's net interest margin improved to 4.27% during the quarter, an increase of 6 basis points over the same quarter in 2008.
Non-interest income of $4.6 million for the September 2009 quarter was up $104,000 compared to the same quarter in 2008. Wealth Management income remained relatively flat at $3.3 million for the quarter as did most other items, with gains on the disposition of investment securities of $148,000 accounting for the increase in non-interest income.
Total loans outstanding as of September 30, 2009 were $514 million compared to $472 million at the end of last year and $463 million at September 30, 2008. Since the beginning of 2009, total loans outstanding have increased $42.2 million (8.9%). The majority of loan growth ($34.1 million) is attributable to an active residential mortgage market, with commercial lending also experiencing a $9.2 million increase in loans outstanding.
Non-performing loans as a percentage of total loans stood at 0.29% at September 30, 2009, a slight decrease from year-end 2008. Loan quality remains strong and the Allowance for Loan Losses stood at $8.5 million or 1.65% of total loans outstanding at September 30, 2009. At December 31, 2008, the Allowance for Loan Losses was $7.7 million or 1.63% of total loans outstanding. The higher provision for loan losses for the nine month periods ($900,000 in 2009 versus $750,000 in 2008) is primarily in response to the overall growth in the loan portfolio.
Total deposits stood at $847 million at period-end compared to $768 million at December 31, 2008, an increase of 10.3%. Total assets at period-end were $998 million compared to $917 million at the end of 2008.
Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 119-year-old Massachusetts chartered commercial bank with $998 million in total assets and ten Massachusetts locations in Cambridge, Beacon Hill, Belmont, Concord, Lincoln and Weston. Cambridge Trust Company is one of New England's leaders in wealth management with $1.4 billion in client assets under management. In addition, Cambridge Trust Company of New Hampshire offers wealth management services at two New Hampshire locations, Concord and Exeter.
Financial Highlights:
CAMBRIDGE BANCORP
QUARTERLY UNAUDITED RESULTS
September 30, 2009
Dollar amounts in thousands (except share data)
Quarter Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Interest Income $ 11,604 $ 11,450 $ 34,076 $ 33,456
Interest Expense 1,641 2,506 5,619 8,078
Net Interest Income 9,963 8,944 28,457 25,378
Provision for Loan Losses 300 250 900 750
Non-Interest Income 4,635 4,531 12,520 13,092
Non-Interest Expense 9,704 9,411 29,237 26,973
Income Before Taxes 4,594 3,814 10,840 10,747
Income Taxes 1,433 1,283 3,194 3,374
Net Income $ 3,161 $ 2,531 $ 7,646 $ 7,373
Data Per Common Share:
Basic Earnings Per Share $ 0.85 $ 0.68 $ 2.05 $ 1.96
Diluted Earnings Per Share $ 0.84 $ 0.68 $ 2.04 $ 1.96
Dividends Declared Per Share $ 0.33 $ 0.33 $ 0.99 $ 0.95
Avg. Common Shares Outstanding:
Basic 3,740,168 3,736,690 3,737,586 3,755,882
Diluted 3,743,814 3,745,144 3,739,819 3,766,447
Selected Operating Ratios:
Net Interest Margin 4.27 % 4.21 % 4.24 % 4.07 %
Return on Average Assets, after taxes 1.28 % 1.13 % 1.07 % 1.13 %
Return on Average Equity, after taxes 16.07 % 14.44 % 13.21 % 13.83 %
September 30, December 31, September 30,
2009 2008 2008
Total Assets $ 997,855 $ 917,212 $ 896,628
Total Loans 514,002 471,814 462,966
Non-Performing Loans 1,479 1,602 1,447
Allowance for Loan Losses 8,502 7,696 7,475
Allowance to Non-Performing Loans 574.84 % 480.35 % 516.56 %
Allowance to Total Loans 1.65 % 1.63 % 1.61 %
Total Deposits 846,923 767,654 747,695
Total Stockholders' Equity 81,802 76,044 71,977
Book Value Per Share $ 21.87 $ 20.29 $ 19.17
Tangible Book Value Per Share $ 21.59 $ 19.93 $ 18.80
CAMBRIDGE BANCORP
UNAUDITED BALANCE SHEETS
September 30, December 31,
2009 2008
(In thousands)
ASSETS
Cash and due from banks $ 14,345 $ 13,472
Federal funds sold -- 26,179
Total cash and cash equivalents 14,345 39,651
Investment securities:
Available for sale, at fair value 360,861 271,905
Held-to-maturity, at amortized cost 82,851 105,785
Stock in FHLB of Boston, at cost 4,806 4,806
Total investment securities 448,518 382,496
Loans:
Residential mortgage 229,649 195,510
Commercial mortgage 156,420 157,787
Home equity 68,004 68,419
Commercial 46,054 36,842
Consumer 13,875 13,256
Total loans 514,002 471,814
Allowance for loan losses (8,502 ) (7,696 )
Net loans 505,500 464,118
Bank owned life insurance 11,589 11,310
Banking premises and equipment, net 5,655 5,979
Accrued interest receivable 3,962 4,391
Other assets 8,286 9,267
Total assets $ 997,855 $ 917,212
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand $ 202,949 $ 200,877
Interest bearing checking 209,382 212,053
Money market 56,836 51,537
Savings 217,632 140,285
Certificates of deposit 160,124 162,902
Total deposits 846,923 767,654
Short-term borrowings 14,798 3,019
Long-term borrowings 38,000 55,000
Other liabilities 16,332 15,495
Total liabilities 916,053 841,168
Stockholders' equity:
Common stock, par value $1.00; Authorized
5,000,000 shares; Outstanding: 3,740,652 and
3,748,642 shares, respectively 3,741 3,749
Additional paid-in capital 20,443 19,749
Retained earnings 52,738 49,384
Accumulated other comprehensive income 4,880 3,162
Total stockholders' equity 81,802 76,044
Total liabilities and stockholders' equity $ 997,855 $ 917,212
CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME
Quarter Ended September 30,
2009 2008
(In thousands, except per share data)
Interest income:
Interest on loans $ 6,978 $ 6,818
Interest on taxable investment securities 4,205 4,239
Interest on tax exempt investment securities 401 391
Interest on overnight investments 20 2
Total interest income 11,604 11,450
Interest expense:
Interest on deposits 1,244 1,753
Interest on borrowed funds 397 753
Total interest expense 1,641 2,506
Net interest income 9,963 8,944
Provision for loan losses 300 250
Net interest income after provision for loan losses 9,663 8,694
Noninterest income:
Wealth management income 3,276 3,303
Deposit account fees 570 592
ATM/Debit card income 229 218
Merchant card services 173 157
Bank owned life insurance income 83 113
Gain on disposition of investment securities 148 1
Other income 156 147
Total noninterest income 4,635 4,531
Noninterest expense:
Salaries and employee benefits 5,630 5,395
Occupancy and equipment 1,627 1,655
Data processing 787 792
Professional services 361 404
Marketing 350 403
FDIC Insurance 293 43
Other expenses 656 719
Total noninterest expense 9,704 9,411
Income before income taxes 4,594 3,814
Income tax expense 1,433 1,283
Net income $ 3,161 $ 2,531
Per share data:
Basic earnings per common share $ 0.85 $ 0.68
Diluted earnings per common share $ 0.84 $ 0.68
Average shares outstanding - basic 3,740,168 3,736,690
Average shares outstanding - diluted 3,743,814 3,745,144
CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME
Nine Months Ended September 30,
2009 2008
(In thousands, except per share data)
Interest income:
Interest on loans $ 20,241 $ 20,000
Interest on taxable investment securities 12,589 12,184
Interest on tax exempt investment securities 1,196 1,149
Interest on overnight investments 50 123
Total interest income 34,076 33,456
Interest expense:
Interest on deposits 4,309 5,943
Interest on borrowed funds 1,310 2,135
Total interest expense 5,619 8,078
Net interest income 28,457 25,378
Provision for loan losses 900 750
Net interest income after provision for loan losses 27,557 24,628
Noninterest income:
Wealth management income 8,437 9,175
Deposit account fees 1,794 1,758
ATM/Debit card income 634 633
Merchant card services 465 419
Bank owned life insurance income 280 362
Gain on disposition of investment securities 382 246
Other income 528 499
Total noninterest income 12,520 13,092
Noninterest expense:
Salaries and employee benefits 16,393 15,456
Occupancy and equipment 4,969 4,845
Data processing 2,379 2,217
Professional services 1,020 1,198
Marketing 1,050 1,088
FDIC Insurance 1,414 92
Other expenses 2,012 2,077
Total noninterest expense 29,237 26,973
Income before income taxes 10,840 10,747
Income tax expense 3,194 3,374
Net income $ 7,646 $ 7,373
Per share data:
Basic earnings per common share $ 2.05 $ 1.96
Diluted earnings per common share $ 2.04 $ 1.96
Average shares outstanding - basic 3,737,586 3,755,882
Average shares outstanding - diluted 3,739,819 3,766,447
SOURCE: Cambridge Bancorp
Cambridge Bancorp Albert R. Rietheimer, 617-441-1516 Chief Financial Officer & Treasurer
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