CATC.. $30.00
Cambridge Bancorp Announces Record Earnings for Full-Year 2009
Business Wire - Jan 26 at 11:32 NONE
Company Symbols: NASDAQ-OTCBB:CATC
CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Cambridge Bancorp (OTCBB: CATC) today announced unaudited net income of $10,277,000 for the year ended December 31, 2009, representing an increase of $664,000 or 6.9% compared to net income of $9,613,000 for the year ended December 31, 2008. Diluted earnings per share (EPS) were $2.75, a 7.4% increase over diluted earnings per share for the prior year.
In the fourth quarter of 2009 unaudited net income was $2,631,000, an increase of $391,000, or 17.5% compared to the same quarter in 2008.
"Our fourth quarter results were positively impacted by a continuing trend of strong net interest income and a rebound in wealth management fees. Net interest income for the fourth quarter 2009 increased by $1.6 million, or 17.8%, while wealth management fees increased by 13.3% compared to the fourth quarter of 2008," noted Joseph V. Roller II, president and CEO.
"We are pleased to report sustained earnings growth for the full year of 2009," said Mr. Roller. "Cambridge Trust Company continued to achieve strong business volume growth, with $105.1 million (13.7%) in deposit growth, $46.1 million (23.6%) increase in residential mortgage loans, and $15.7 million (8.0%) increase in combined commercial and commercial real estate loans. Credit quality across our consumer and corporate customer bases continued to be solid. While we expect to continue to face headwinds into 2010, we are intensely focused on managing through these conditions. The overall strength of our company will allow us to execute on prudent, long term opportunities for future growth."
For the year ended December 31, 2009 net interest income totaled $39.0 million compared to $34.3 million for 2008. The 13.6% increase in net interest income for the year was driven primarily by sustained loan growth, which was funded with core deposit inflows, coupled with a reduction in interest expense on deposits. The Bank's net interest margin of 4.27% for the year compared favorably to 4.11% for the year ended December 31, 2008.
Non-interest income totaled $16.6 million for the year 2009 compared to $16.8 million for 2008. Reduced fees for wealth management due to the equity market conditions earlier in the year, as well as reduced income from bank owned life insurance, contributed to the slight decrease in non-interest income. Gains on disposition of investment securities offset a portion of the decrease in non-interest income.
Non-interest expense increased by $3.4 million for the year ended December 31, 2009, driven primarily by two factors. FDIC premiums increased by $1.5 million, which included a special assessment of $450,000. A special assessment was applied to all FDIC-insured banks in the industry. The second factor was an increase in salaries and benefits of $1.7 million.
Total deposits at year-end 2009 were $873 million, an increase of $105.1 million or 13.7% compared to $768 million at year-end 2008.
Total loans outstanding for year-end 2009 were $538 million compared to $472 million at year-end 2008, an increase of $66.1 million or 14.0%. Loan quality remained sound with non-performing loans totaling $1.1 million at December 31, 2009 compared to $1.6 million at the end of 2008. The Allowance for Loan Losses was $8.7 million or 1.62% of total loans outstanding at year-end 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 of $1.2 million during the year 2009 was primarily in response to growth in the loan portfolio and recognition of current market conditions.
Total assets at year-end 2009 were $1.0 billion versus $917 million year-end 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 120-year-old Massachusetts chartered commercial bank with $1.0 billion 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
December 31, 2009
Dollar amounts in thousands (except share data)
Quarter Ended Year Ended
December 31, December 31,
2009 2008 2009 2008
Interest Income $ 12,082 $ 11,327 $ 46,158 $ 44,783
Interest Expense 1,530 2,369 7,149 10,447
Net Interest 10,552 8,958 39,009 34,336
Income
Provision for 300 250 1,200 1,000
Loan Losses
Non-Interest 4,098 3,756 16,618 16,848
Income
Non-Interest 10,390 9,294 39,627 36,267
Expense
Income Before 3,960 3,170 14,800 13,917
Taxes
Income Taxes 1,329 930 4,523 4,304
Net Income $ 2,631 $ 2,240 $ 10,277 $ 9,613
Data Per Common
Share:
Basic Earnings $ 0.71 $ 0.60 $ 2.75 $ 2.56
Per Share
Diluted Earnings $ 0.70 $ 0.60 $ 2.75 $ 2.56
Per Share
Dividends
Declared Per $ 0.35 $ 0.33 $ 1.34 $ 1.28
Share
Avg. Common
Shares
Outstanding:
Basic 3,730,439 3,726,701 3,735,784 3,748,547
Diluted 3,740,118 3,734,998 3,739,287 3,758,352
Selected
Operating
Ratios:
Net Interest 4.35 % 4.23 % 4.27 % 4.11 %
Margin
Return on
Average Assets, 1.04 % 1.00 % 1.06 % 1.09 %
after taxes
Return on
Average Equity, 12.78 % 12.37 % 13.09 % 13.46 %
after taxes
December 31, December 31,
2009 2008
Total Assets $ 1,018,949 $ 917,212
Total Loans 537,933 471,814
Non-Performing 1,092 1,602
Loans
Allowance for 8,729 7,696
Loan Losses
Allowance to
Non-Performing 799.72 % 480.35 %
Loans
Allowance to 1.62 % 1.63 %
Total Loans
Total Deposits 872,767 767,654
Total
Stockholders' 81,708 76,044
Equity
Book Value Per $ 21.95 $ 20.29
Share
Tangible Book $ 21.69 $ 19.93
Value Per Share
CAMBRIDGE BANCORP
UNAUDITED BALANCE SHEETS
December 31, December 31,
2009 2008
(In thousands)
ASSETS
Cash and due from banks $ 12,762 $ 13,472
Federal funds sold 13,412 26,179
Total cash and cash equivalents 26,174 39,651
Investment securities:
Available for sale, at fair value 339,833 271,905
Held-to-maturity, at amortized cost 84,073 105,785
Stock in FHLB of Boston, at cost 4,806 4,806
Total investment securities 428,712 382,496
Loans:
Residential mortgage 241,564 195,510
Commercial mortgage 162,002 157,787
Home equity 69,212 68,419
Commercial 48,291 36,842
Consumer 16,864 13,256
Total loans 537,933 471,814
Allowance for loan losses (8,729 ) (7,696 )
Net loans 529,204 464,118
Bank owned life insurance 11,672 11,310
Banking premises and equipment, net 5,562 5,979
Other real estate owned 696 --
Accrued interest receivable 4,470 4,391
Other assets 12,459 9,267
Total assets $ 1,018,949 $ 917,212
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand $ 204,335 $ 200,877
Interest bearing checking 238,152 212,053
Money market 53,099 51,537
Savings 224,360 140,285
Certificates of deposit 152,821 162,902
Total deposits 872,767 767,654
Short-term borrowings 11,441 3,019
Long-term borrowings 38,000 55,000
Other liabilities 15,033 15,495
Total liabilities 937,241 841,168
Stockholders' equity:
Common stock, par value $1.00;
Authorized 5,000,000 shares; 3,723 3,749
Outstanding: 3,722,726 and 3,748,642 shares,
respectively
Additional paid-in capital 20,431 19,749
Retained earnings 53,676 49,384
Accumulated other comprehensive income 3,878 3,162
Total stockholders' equity 81,708 76,044
Total liabilities and stockholders' equity $ 1,018,949 $ 917,212
CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME
Quarter Ended December 31,
2009 2008
(In thousands, except per share data)
Interest income:
Interest on loans $ 7,433 $ 6,808
Interest on taxable investment 4,235 4,126
securities
Interest on tax exempt investment 411 393
securities
Interest on overnight investments 3 --
Total interest income 12,082 11,327
Interest expense:
Interest on deposits 1,128 1,726
Interest on borrowed funds 402 643
Total interest expense 1,530 2,369
Net interest income 10,552 8,958
Provision for loan losses 300 250
Net interest income after provision for 10,252 8,708
loan losses
Noninterest income:
Wealth management income 2,916 2,574
Deposit account fees 543 613
ATM/Debit card income 239 211
Merchant card services 175 145
Bank owned life insurance income 83 107
Gain on disposition of investment -- 5
securities
Other income 142 101
Total noninterest income 4,098 3,756
Noninterest expense:
Salaries and employee benefits 6,328 5,548
Occupancy and equipment 1,618 1,582
Data processing 793 695
Professional services 373 264
Marketing 296 333
FDIC Insurance 289 115
Other expenses 693 757
Total noninterest expense 10,390 9,294
Income before income taxes 3,960 3,170
Income tax expense 1,329 930
Net income $ 2,631 $ 2,240
Per share data:
Basic earnings per common share $ 0.71 $ 0.60
Diluted earnings per common share $ 0.70 $ 0.60
Average shares outstanding - basic 3,730,439 3,726,701
Average shares outstanding - diluted 3,740,118 3,734,998
CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME
Year Ended December 31,
2009 2008
(In thousands, except per share data)
Interest income:
Interest on loans $ 27,674 $ 26,808
Interest on taxable investment 16,824 16,310
securities
Interest on tax exempt investment 1,607 1,542
securities
Interest on overnight investments 53 123
Total interest income 46,158 44,783
Interest expense:
Interest on deposits 5,437 7,669
Interest on borrowed funds 1,712 2,778
Total interest expense 7,149 10,447
Net interest income 39,009 34,336
Provision for loan losses 1,200 1,000
Net interest income after provision for 37,809 33,336
loan losses
Noninterest income:
Wealth management income 11,353 11,749
Deposit account fees 2,337 2,371
ATM/Debit card income 873 844
Merchant card services 640 564
Bank owned life insurance income 363 469
Gain on disposition of investment 382 251
securities
Other income 670 600
Total noninterest income 16,618 16,848
Noninterest expense:
Salaries and employee benefits 22,721 21,004
Occupancy and equipment 6,587 6,427
Data processing 3,172 2,912
Professional services 1,393 1,462
Marketing 1,346 1,421
FDIC Insurance 1,703 208
Other expenses 2,705 2,833
Total noninterest expense 39,627 36,267
Income before income taxes 14,800 13,917
Income tax expense 4,523 4,304
Net income $ 10,277 $ 9,613
Per share data:
Basic earnings per common share $ 2.75 $ 2.56
Diluted earnings per common share $ 2.75 $ 2.56
Average shares outstanding - basic 3,735,784 3,748,547
Average shares outstanding - diluted 3,739,287 3,758,352
Source: Cambridge Bancorp
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