CAMBRIDGE, Mass.--(BUSINESS WIRE)--Cambridge Bancorp (OTCQB: CATC) (the “Company”), the parent of Cambridge Trust Company, today announced unaudited net income of $4,514,000 for the second quarter of 2017, representing an increase of $494,000, or 12.3%, compared to net income of $4,020,000 for the same quarter in 2016. Diluted earnings per share were $1.10 for the second quarter of 2017, representing a 10.0% increase over diluted earnings per share of $1.00 for the same quarter in 2016.
For the six months ended June 30, 2017, unaudited net income was $8,842,000, an increase of $944,000, or 12.0%, compared to net income of $7,898,000 for the six months ended June 30, 2016. Diluted earnings per share were $2.16 for the first six months of 2017, representing a 10.2% increase over diluted earnings per share of $1.96 for the same period in 2016.
Second quarter 2017 highlights as compared to the second quarter of 2016:
- Wealth Management Assets under Management now at $2.8 billion, an increase of 11.9%
- Revenue of $21,575,000, an increase of 6.7%
- Loan growth of $57,130,000, or 4.5%
- Deposit growth of $14,744,000, or 0.9%
“We are pleased to report the Company delivered robust earnings during the second quarter despite continued intense competition within our markets,” noted Denis K. Sheahan, President and CEO. “Wealth Assets under Management, a primary focus for the institution, continue to grow and helped Cambridge Bancorp post strong profitability metrics for the quarter with annualized return on average assets of 0.97% and annualized return on average shareholders’ equity of 12.94%.”
Balance Sheet
Total assets increased $46.2 million, or 2.5%, from December 31, 2016 and stood at $1.9 billion as of June 30, 2017.
Total loans increased $8.3 million, or 0.6%, from December 31, 2016 and stood at $1.3 billion as of June 30, 2017. Despite aggressive pricing for loans and the increased cost of acquisition within our markets, new loan originations have exceeded payoffs through the first six months of 2017.
The Company’s total investment securities portfolio increased by $60.8 million, or 14.9%, from $408.1 million at December 31, 2016 to $469.0 million at June 30, 2017.
Core deposits, which we define as all deposits other than certificates of deposit, decreased by $69.9 million, or 4.6%, from December 31, 2016 as customers utilized funds to pay down loans and to invest in their businesses. The cost of total deposits for the six months ended June 30, 2017 was 0.17% as compared to 0.22% for the six months ended June 30, 2016. Total deposits at June 30, 2017 were $1.6 billion, and remained relatively unchanged compared to June 30, 2016.
Short term borrowings increased to $109.0 million as of June 30, 2017 from zero at December 31, 2016. The Bank utilized short term borrowings to fulfill our funding needs during the quarter.
Net Interest and Dividend Income
For the quarter ended June 30, 2017, net interest and dividend income after provision for loan losses increased by $1.2 million, or 9.6%, to $14.2 million as compared to $13.0 million for the quarter ended June 30, 2016. Interest on loans increased by $813 thousand, or 6.8%, driven by the impact of strong loan growth during 2016. The Company’s net interest margin, on a fully tax equivalent basis, increased eight basis points to 3.25% for the current quarter compared to 3.17% for the quarter ended June 30, 2016.
For the six months ended June 30, 2017, net interest and dividend income after provision for loan losses, increased by $2.1 million, or 8.1%, to $28.1 million as compared to $26.0 million for the six months ended June 30, 2016. Interest on loans increased by $1.5 million, or 6.5%, driven by the impact of strong loan growth during 2016. The Company’s net interest margin, on a fully tax equivalent basis, increased four basis points to 3.25% for the six months ended June 30, 2017 compared to 3.21% for the six months ended June 30, 2016.
Noninterest Income
Noninterest income totaled $7.3 million for the quarter ended June 30, 2017 as compared to $7.1 million for the quarter ended June 30, 2016. The Company’s Wealth Management revenue, which totaled $5.6 million for the current quarter, is the largest component of noninterest income. Wealth Management revenue increased by $641 thousand, or 13.0%, for the second quarter of 2017 as compared to the second quarter of 2016 due to new business development and market appreciation. Wealth Management Assets under Management increased by $178 million, or 6.9%, to $2.8 billion as of June 30, 2017, as compared to $2.6 billion as of December 31, 2016.
Deposit account fee income was $806 thousand for the quarter ended June 30, 2017, an increase of $83 thousand, or 11.5%, from the quarter ended June 30, 2016, mainly due to greater commercial cash management income.
Noninterest income increases were partially offset by lower loan related derivative income, lower secondary market loan gain on sales and lower gains on disposition of investment securities of $254 thousand, $175 thousand and $92 thousand respectively, for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016.
Noninterest Expense
Noninterest expense increased by $731 thousand, or 5.2%, to $14.7 million for the quarter ended June 30, 2017 as compared to $14.0 million for the quarter ended June 30, 2016. The increase in salaries and benefits of $515 thousand is primarily due to annual merit increases and the impact of new strategic hires to support business initiatives for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016. The increase of $185 thousand in professional services is primarily due to consulting services for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016. The increase of $165 thousand in data processing is primarily due to annual increases from our primary core processor and investments in technology, for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016.
Noninterest expense increases were partially offset by decreases in occupancy and equipment expenses and lower FDIC insurance costs of $77 thousand and $76 thousand, respectively, for the quarter ended June 30, 2017 as compared to June 30, 2016.
Asset Quality
Loan quality remained sound with non-performing loans totaling $2.1 million, or 0.16%, of total loans outstanding as of June 30, 2017. Net charge-offs for the quarter ended June 30, 2017 were $6 thousand as compared to $2 thousand in net recoveries for the second quarter of 2016. The allowance for loan losses was $15.3 million, or 1.15%, of total loans outstanding at June 30, 2017 as compared to $15.3 million, or 1.16%, of total loans outstanding at year end 2016.
Income Taxes
The effective tax rate was 33.8% for the quarter ended June 30, 2017 as compared to 33.7% for June 30, 2016. For the six months ended June 30, 2017, the effective tax rate was 32.7% as compared to 33.1% for the six months ended June 30, 2016. During the current year, the Company recognized $219 thousand of tax benefit resulting from the adoption of new accounting guidance for share-based payments.
Dividend
On July 17, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.47 per share, which is payable on August 17, 2017 to shareholders of record as of the close of business on August 3, 2017. This represents an increase of $0.01 as compared to $0.46 paid during the second quarter of 2017.
About Cambridge Bancorp
Cambridge Bancorp, the parent company of Cambridge Trust Company, is based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 127-year-old Massachusetts chartered commercial bank with 11 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston. Cambridge Trust Company is one of New England’s leaders in wealth management with $2.8 billion in client assets under management. The Wealth Management group maintains offices in Boston, Massachusetts, and Concord, Manchester, and Portsmouth, New Hampshire.
The accompanying unaudited condensed interim and annual consolidated financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Cambridge Bancorp 2016 Annual Report, which is posted in the investor relations section of our website at www.cambridgetrust.com.
Forward-looking Statements
Certain statements herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are intended to take advantage of the “safe harbor” provisions of the PSLRA. These statements are based on the beliefs and assumptions of management of the Company and its subsidiaries and on the information available to management at the time that these statements were made. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Such statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “forecast”, “estimate,” “intend”, “will,” “would,” “should,” “could”, “may” or similar words. There are a number of factors, many of which are beyond the Company’s control that could cause actual conditions, events or results to differ materially from those in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, changes in the interest rate environment, unfavorable or less than favorable changes in general economic conditions (nationally or regionally), our ability to continue to increase loans and deposit growth, increased competitive pressures among depository and other financial institutions, legislative and regulatory changes that adversely affect the businesses in which the Company is engaged, changes in the securities market, and other factors that are described in the Company’s annual report. Readers should not place undue reliance on these forward-looking statements, which speak only as of the date of the date they are made. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise, except as may be required by law.
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CAMBRIDGE BANCORP AND SUBSIDIARIES |
||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (dollar amounts in thousands except share data) | ||||||||||||||||
| Interest and Dividend Income | $ | 15,101 | $ | 13,989 | $ | 29,774 | $ | 28,050 | ||||||||
| Interest Expense | 871 | 872 | 1,583 | 1,797 | ||||||||||||
| Net Interest and Dividend Income | 14,230 | 13,117 | 28,191 | 26,253 | ||||||||||||
| Provision for Loan Losses | 20 | 150 | 50 | 225 | ||||||||||||
| Noninterest Income | 7,345 | 7,100 | 14,672 | 13,768 | ||||||||||||
| Noninterest Expense | 14,732 | 14,001 | 29,678 | 27,992 | ||||||||||||
| Income Before Taxes | 6,823 | 6,066 | 13,135 | 11,804 | ||||||||||||
| Income Taxes | 2,309 | 2,046 | 4,293 | 3,906 | ||||||||||||
| Net Income | $ | 4,514 | $ | 4,020 | $ | 8,842 | $ | 7,898 | ||||||||
|
Data Per Common Share: |
||||||||||||||||
| Basic Earnings Per Share | $ | 1.11 | $ | 1.00 | $ | 2.17 | $ | 1.96 | ||||||||
| Diluted Earnings Per Share | $ | 1.10 | $ | 1.00 | $ | 2.16 | $ | 1.96 | ||||||||
| Dividends Declared Per Share | $ | 0.46 | $ | 0.46 | $ | 0.92 | $ | 0.92 | ||||||||
| Avg. Common Shares Outstanding: | ||||||||||||||||
| Basic | 4,034,397 | 3,987,696 | 4,024,877 | 3,975,624 | ||||||||||||
| Diluted | 4,068,360 | 4,037,522 | 4,061,286 | 4,022,005 | ||||||||||||
|
Selected Operating Ratios: |
||||||||||||||||
| Net Interest Margin, FTE | 3.25% | 3.17% | 3.25% | 3.21% | ||||||||||||
| Cost of Funds | 0.19% | 0.20% | 0.18% | 0.21% | ||||||||||||
| Cost of Interest Bearing Liabilities | 0.28% | 0.30% | 0.26% | 0.31% | ||||||||||||
| Cost of Deposits | 0.17% | 0.21% | 0.17% | 0.22% | ||||||||||||
| Return on Average Assets | 0.97% | 0.91% | 0.96% | 0.91% | ||||||||||||
| Return on Average Equity | 12.94% | 12.35% | 12.93% | 12.30% | ||||||||||||
| Efficiency Ratio | 68.29% | 69.25% | 69.24% | 69.94% | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||
| Total Assets | $ | 1,895,219 | $ | 1,848,999 | $ | 1,773,753 | ||||||||||
| Total Loans | 1,328,473 | 1,320,154 | 1,271,343 | |||||||||||||
| Non-Performing Loans | 2,129 | 1,676 | 1,481 | |||||||||||||
| Allowance for Loan Losses | 15,303 | 15,261 | 15,411 | |||||||||||||
| Allowance to Total Loans | 1.15% | 1.16% | 1.21% | |||||||||||||
| Total Deposits | 1,615,981 | 1,686,038 | 1,601,237 | |||||||||||||
| Total Shareholders' Equity | 142,298 | 134,671 | 134,049 | |||||||||||||
| Wealth Management AUM | $ | 2,751,000 | $ | 2,573,000 | $ | 2,459,000 | ||||||||||
| Book Value Per Share | $ | 34.88 | $ | 33.36 | $ | 33.16 | ||||||||||
| Tangible Book Value Per Share | $ | 34.57 | $ | 33.06 | $ | 32.94 | ||||||||||
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CAMBRIDGE BANCORP AND SUBSIDIARIES |
||||||||
| June 30, 2017 | December 31, 2016 | |||||||
| (dollars in thousands) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 33,089 | $ | 54,050 | ||||
| Investment securities | ||||||||
| Securities available for sale, amortized cost $231,601 and $329,726, respectively | 228,591 | 325,641 | ||||||
| Securities held to maturity, fair value $242,798 and $83,755, respectively | 240,380 | 82,502 | ||||||
| Total investment securities | 468,971 | 408,143 | ||||||
| Loans held for sale, at lower of cost or fair value | 424 | 6,506 | ||||||
| Loans | ||||||||
| Residential mortgage | 539,668 | 534,404 | ||||||
| Commercial mortgage | 616,221 | 616,140 | ||||||
| Home equity | 73,250 | 75,051 | ||||||
| Commercial & Industrial | 57,838 | 59,706 | ||||||
| Consumer | 41,496 | 34,853 | ||||||
| Total loans | 1,328,473 | 1,320,154 | ||||||
| Less: allowance for loan losses | (15,303) | (15,261) | ||||||
| Net loans | 1,313,170 | 1,304,893 | ||||||
| Stock in FHLB of Boston, at cost | 8,159 | 4,098 | ||||||
| Bank owned life insurance | 30,808 | 30,499 | ||||||
| Banking premises and equipment, net | 9,952 | 10,451 | ||||||
| Deferred income taxes, net | 13,001 | 13,693 | ||||||
| Accrued interest receivable | 4,594 | 4,627 | ||||||
| Other assets | 13,051 | 12,039 | ||||||
| Total assets | $ | 1,895,219 | $ | 1,848,999 | ||||
| Liabilities | ||||||||
| Deposits | ||||||||
| Demand | $ | 457,120 | $ | 472,923 | ||||
| Interest bearing checking | 383,008 | 430,706 | ||||||
| Money market | 66,260 | 72,057 | ||||||
| Savings | 538,586 | 539,190 | ||||||
| Certificates of deposit | 171,007 | 171,162 | ||||||
| Total deposits | 1,615,981 | 1,686,038 | ||||||
| Short-term borrowings | 109,000 | — | ||||||
| Long-term borrowings | 3,663 | 3,746 | ||||||
| Other liabilities | 24,277 | 24,544 | ||||||
| Total liabilities | 1,752,921 | 1,714,328 | ||||||
| Shareholders’ Equity | ||||||||
|
Common stock, par value $1.00; Authorized 10,000,000 shares; Outstanding: 4,079,784 |
||||||||
| shares and 4,036,879 shares, respectively | 4,080 | 4,037 | ||||||
| Additional paid-in capital | 35,195 | 33,253 | ||||||
| Retained earnings | 111,956 | 107,262 | ||||||
| Accumulated other comprehensive loss | (8,933) | (9,881) | ||||||
| Total shareholders’ equity | 142,298 | 134,671 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,895,219 | $ | 1,848,999 | ||||
|
CAMBRIDGE BANCORP AND SUBSIDIARIES |
||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (dollars in thousands, except share data) | ||||||||||||||||
| Interest and dividend income | ||||||||||||||||
| Interest on taxable loans | $ | 12,555 | $ | 11,786 | $ | 24,928 | $ | 23,475 | ||||||||
| Interest on tax exempt loans | 139 | 95 | 270 | 176 | ||||||||||||
| Interest on taxable investment securities | 1,656 | 1,360 | 3,050 | 2,864 | ||||||||||||
| Interest on tax exempt investment securities | 660 | 677 | 1,325 | 1,383 | ||||||||||||
| Dividends on FHLB of Boston stock | 43 | 30 | 85 | 80 | ||||||||||||
| Interest on overnight investments | 48 | 41 | 116 | 72 | ||||||||||||
| Total interest and dividend income | 15,101 | 13,989 | 29,774 | 28,050 | ||||||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 683 | 851 | 1,374 | 1,757 | ||||||||||||
| Interest on borrowed funds | 188 | 21 | 209 | 40 | ||||||||||||
| Total interest expense | 871 | 872 | 1,583 | 1,797 | ||||||||||||
| Net interest and dividend income | 14,230 | 13,117 | 28,191 | 26,253 | ||||||||||||
| Provision for loan losses | 20 | 150 | 50 | 225 | ||||||||||||
| Net interest and dividend income after provision for loan losses | 14,210 | 12,967 | 28,141 | 26,028 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Wealth management income | 5,584 | 4,943 | 10,946 | 9,545 | ||||||||||||
| Deposit account fees | 806 | 723 | 1,619 | 1,368 | ||||||||||||
| ATM/Debit card income | 286 | 297 | 545 | 567 | ||||||||||||
| Bank owned life insurance income | 147 | 152 | 309 | 325 | ||||||||||||
| (Loss) gain on disposition of investment securities | (1 | ) | 91 | (3 | ) | 435 | ||||||||||
| Gain on loans held for sale | 50 | 225 | 285 | 286 | ||||||||||||
| Loan related derivative income | 175 | 429 | 363 | 799 | ||||||||||||
| Other income | 298 | 240 | 608 | 443 | ||||||||||||
| Total noninterest income | 7,345 | 7,100 | 14,672 | 13,768 | ||||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 8,933 | 8,418 | 18,145 | 16,811 | ||||||||||||
| Occupancy and equipment | 2,325 | 2,402 | 4,578 | 4,751 | ||||||||||||
| Data processing | 1,396 | 1,231 | 2,719 | 2,465 | ||||||||||||
| Professional services | 826 | 641 | 1,696 | 1,203 | ||||||||||||
| Marketing | 473 | 462 | 743 | 925 | ||||||||||||
| FDIC Insurance | 151 | 227 | 312 | 452 | ||||||||||||
| Other expenses | 628 | 620 | 1,485 | 1,385 | ||||||||||||
| Total noninterest expense | 14,732 | 14,001 | 29,678 | 27,992 | ||||||||||||
| Income before income taxes | 6,823 | 6,066 | 13,135 | 11,804 | ||||||||||||
| Income tax expense | 2,309 | 2,046 | 4,293 | 3,906 | ||||||||||||
| Net income | $ | 4,514 | $ | 4,020 | $ | 8,842 | $ | 7,898 | ||||||||
| Share data | ||||||||||||||||
| Weighted average number of shares outstanding, basic | 4,034,397 | 3,987,696 | 4,024,877 | 3,975,624 | ||||||||||||
| Weighted average number of shares outstanding, diluted | 4,068,360 | 4,037,522 | 4,061,286 | 4,022,005 | ||||||||||||
| Basic earnings per share | $ | 1.11 | $ | 1.00 | $ | 2.17 | $ | 1.96 | ||||||||
| Diluted earnings per share | $ | 1.10 | $ | 1.00 | $ | 2.16 | $ | 1.96 | ||||||||
|
CAMBRIDGE BANCORP AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||||||||||||
|
Average |
Interest |
Rate |
Average |
Interest |
Rate |
|||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||
| Loans (2) | ||||||||||||||||||||||||||||||||||
| Taxable | $ | 1,303,998 | $ | 12,555 | 3.86 | % | $ | 1,218,971 | $ | 11,786 | 3.89 | % | ||||||||||||||||||||||
| Tax-exempt | 16,027 | 213 | 5.33 | 14,442 | 146 | 4.07 | ||||||||||||||||||||||||||||
| Securities available for sale (3) | ||||||||||||||||||||||||||||||||||
| Taxable | 243,315 | 984 | 1.62 | 353,813 | 1,348 | 1.53 | ||||||||||||||||||||||||||||
| Securities held to maturity | ||||||||||||||||||||||||||||||||||
| Taxable | 128,115 | 672 | 2.10 | 1,045 | 12 | 4.62 | ||||||||||||||||||||||||||||
| Tax-exempt | 82,649 | 1,016 | 4.93 | 81,409 | 1,041 | 5.14 | ||||||||||||||||||||||||||||
| Cash and due from banks | 32,142 | 48 | 0.60 | 41,488 | 41 | 0.40 | ||||||||||||||||||||||||||||
| Total interest-earning assets (4) | 1,806,246 | 15,488 | 3.44 | % | 1,711,168 | 14,374 | 3.38 | % | ||||||||||||||||||||||||||
| Non interest-earning assets | 73,947 | 72,554 | ||||||||||||||||||||||||||||||||
| Allowance for loan losses | (15,354 | ) | (15,285 | ) | ||||||||||||||||||||||||||||||
| Total assets | $ | 1,864,839 | $ | 1,768,437 | ||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||||
| Checking accounts | $ | 385,384 | $ | 20 | 0.02 | % | $ | 367,747 | $ | 21 | 0.02 | % | ||||||||||||||||||||||
| Savings accounts | 542,124 | 281 | 0.21 | 532,968 | 433 | 0.33 | ||||||||||||||||||||||||||||
| Money market accounts | 73,261 | 27 | 0.15 | 75,626 | 31 | 0.16 | ||||||||||||||||||||||||||||
| Time deposits | 169,587 | 355 | 0.84 | 175,882 | 366 | 0.84 | ||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,170,356 | 683 | 0.23 | 1,152,223 | 851 | 0.30 | ||||||||||||||||||||||||||||
| Other borrowed funds | 65,183 | 188 | 1.16 | 6,006 | 21 | 1.41 | ||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,235,539 | 871 | 0.28 | % | 1,158,229 | 872 | 0.30 | % | ||||||||||||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||||||||||||||
| Demand deposits | 464,851 | 458,605 | ||||||||||||||||||||||||||||||||
| Other liabilities | 24,602 | 20,661 | ||||||||||||||||||||||||||||||||
| Total liabilities | 1,724,992 | 1,637,495 | ||||||||||||||||||||||||||||||||
| Shareholders’ equity | 139,847 | 130,942 | ||||||||||||||||||||||||||||||||
| Total liabilities & shareholders’ equity | $ | 1,864,839 | $ | 1,768,437 | ||||||||||||||||||||||||||||||
| Net interest income on a fully taxable equivalent basis | 14,617 | 13,502 | ||||||||||||||||||||||||||||||||
| Less taxable equivalent adjustment | (430 | ) | (415 | ) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 14,187 | $ | 13,087 | ||||||||||||||||||||||||||||||
| Net interest spread (5) | 3.16 | % | 3.08 | % | ||||||||||||||||||||||||||||||
| Net interest margin (6) | 3.25 | % | 3.17 | % | ||||||||||||||||||||||||||||||
(1) Annualized on a fully taxable equivalent basis calculated using a
federal tax rate of 35%.
(2) Nonaccrual loans are included in
average amounts outstanding.
(3) Average balances of securities
available-for-sale calculated utilizing amortized cost.
(4) Federal
Home Loan Bank stock balance and dividend income is excluded from
interest-earning assets.
(5) Interest rate spread represents the
difference between the weighted average yield on interest-earning assets
and the weighted average cost of interest-bearing liabilities.
(6)
Net interest margin represents net interest income on a fully tax
equivalent basis as a percentage of average interest-earning assets.
|
CAMBRIDGE BANCORP AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||||||||||||
|
Average |
Interest |
Rate |
Average |
Interest |
Rate |
|||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||
| Loans (2) | ||||||||||||||||||||||||||||||||||
| Taxable | $ | 1,303,303 | $ | 24,928 | 3.86 | % | $ | 1,205,860 | $ | 23,475 | 3.91 | % | ||||||||||||||||||||||
| Tax-exempt | 16,409 | 415 | 5.10 | 13,301 | 271 | 4.10 | ||||||||||||||||||||||||||||
| Securities available for sale (3) | ||||||||||||||||||||||||||||||||||
| Taxable | 278,867 | 2,256 | 1.63 | 349,616 | 2,838 | 1.63 | ||||||||||||||||||||||||||||
| Securities held to maturity | ||||||||||||||||||||||||||||||||||
| Taxable | 75,230 | 794 | 2.13 | 1,121 | 26 | 4.66 | ||||||||||||||||||||||||||||
| Tax-exempt | 82,687 | 2,038 | 4.97 | 82,019 | 2,128 | 5.22 | ||||||||||||||||||||||||||||
| Cash and due from banks | 39,245 | 116 | 0.60 | 41,870 | 72 | 0.35 | ||||||||||||||||||||||||||||
| Total interest-earning assets (4) | 1,795,741 | 30,547 | 3.43 | % | 1,693,787 | 28,810 | 3.42 | % | ||||||||||||||||||||||||||
| Non interest-earning assets | 72,705 | 73,089 | ||||||||||||||||||||||||||||||||
| Allowance for loan losses | (15,301 |
) |
|
(15,252 | ) | |||||||||||||||||||||||||||||
| Total assets | $ | 1,853,145 | $ | 1,751,624 | ||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||||
| Checking accounts | $ | 402,929 | $ | 37 | 0.02 | % | $ | 361,039 | $ | 51 | 0.03 | % | ||||||||||||||||||||||
| Savings accounts | 549,365 | 576 | 0.21 | 532,700 | 906 | 0.34 | ||||||||||||||||||||||||||||
| Money market accounts | 71,860 | 53 | 0.15 | 74,546 | 68 | 0.18 | ||||||||||||||||||||||||||||
| Time deposits | 169,960 | 708 | 0.84 | 175,976 | 732 | 0.84 | ||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,194,114 | 1,374 | 0.23 | 1,144,261 | 1,757 | 0.31 | ||||||||||||||||||||||||||||
| Other borrowed funds | 35,217 | 209 | 1.20 | 5,027 | 40 | 1.60 | ||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,229,331 | 1,583 | 0.26 | % | 1,149,288 | 1,797 | 0.31 | % | ||||||||||||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||||||||||||||
| Demand deposits | 461,269 | 452,182 | ||||||||||||||||||||||||||||||||
| Other liabilities | 24,655 | 20,979 | ||||||||||||||||||||||||||||||||
| Total liabilities | 1,715,255 | 1,622,449 | ||||||||||||||||||||||||||||||||
| Shareholders’ equity | 137,890 | 129,175 | ||||||||||||||||||||||||||||||||
| Total liabilities & shareholders’ equity | $ | 1,853,145 | $ | 1,751,624 | ||||||||||||||||||||||||||||||
| Net interest income on a fully taxable equivalent basis | 28,964 | 27,013 | ||||||||||||||||||||||||||||||||
| Less taxable equivalent adjustment | (858 |
) |
|
(840 | ) | |||||||||||||||||||||||||||||
| Net interest income | $ | 28,106 | $ | 26,173 | ||||||||||||||||||||||||||||||
| Net interest spread (5) | 3.17 | % | 3.11 | % | ||||||||||||||||||||||||||||||
| Net interest margin (6) | 3.25 | % | 3.21 | % | ||||||||||||||||||||||||||||||
(1) Annualized on a fully taxable equivalent basis calculated using a
federal tax rate of 35%.
(2) Nonaccrual loans are included in
average amounts outstanding.
(3) Average balances of securities
available-for-sale calculated utilizing amortized cost.
(4) Federal
Home Loan Bank stock balance and dividend income is excluded from
interest-earning assets.
(5) Interest rate spread represents the
difference between the weighted average yield on interest-earning assets
and the weighted average cost of interest-bearing liabilities.
(6)
Net interest margin represents net interest income on a fully tax
equivalent basis as a percentage of average interest-earning assets.
