Cambridge Bancorp(US:CATC)2023-08-03 11:02Financial Performance - Net income decreased by $7.4 million, or 27.6%, to $19.5 million for the six months ended June 30, 2023, compared to $27.0 million for the same period in 2022[269] - Net income for 2023 was $7.115 billion, a decrease from $13.658 billion in 2022, representing a decline of approximately 48.9%[308] - Operating net income applicable to common shareholders was $9.627 billion for 2023, down from $22.329 billion in 2022, reflecting a decrease of about 56.9%[308] Interest Income and Margin - The Company's net interest margin decreased by 60 basis points to 2.26% for the three months ended June 30, 2023, from 2.86% for the same period in 2022[261] - Net interest income for the six months ended June 30, 2023, was $54,057 thousand, with a net interest margin of 4.12%, compared to 3.96% for the previous quarter[366] - The adjusted net interest margin for the six months ended June 30, 2023, was 2.39%, a decrease of 35 basis points from 2.74% in the same period of 2022[370] - The average rate earned on loans was 4.71%, with interest income of $93,064,000 for the period ending June 30, 2023[338] Interest Expense - Interest expense increased by $22.3 million to $24.4 million for the three months ended June 30, 2023, compared to $2.1 million for the same period in 2022[262] - Interest expense increased by $37.8 million, or 914.7%, to $41.9 million for the six months ended June 30, 2023, compared to $4.1 million for the same period in 2022[300] Assets and Liabilities - Total average interest-earning assets increased by $446.0 million, or 9.3%, to $5.26 billion for the three months ended June 30, 2023, compared to $4.82 billion for the same period in 2022[261] - Total assets decreased by $70.1 million, or 1.3%, from $5.56 billion at December 31, 2022, to $5.49 billion at June 30, 2023[277] - Total liabilities increased to $4,996,377 from $4,550,087, marking an increase of 9.8%[395] Deposits - Total deposits decreased by $372.8 million, or 7.7%, to $4.44 billion at June 30, 2023, from $4.82 billion at December 31, 2022[278] - Demand deposits (non-interest bearing) decreased to $1,059,563 thousand, representing 25.1% of total deposits, down from 28.4%[363] - The average cost of deposits increased to 1.56% for the six months ended June 30, 2023, from 0.17% for the same period in 2022[272] Noninterest Income and Expense - Total noninterest income decreased by $1.8 million, or 7.8%, to $20.7 million for the six months ended June 30, 2023, compared to $22.5 million for the same period in 2022[273] - Total noninterest expense increased by $4.0 million, or 15.4%, to $30.3 million for the three months ended June 30, 2023, compared to $26.3 million for the same period in 2022[267] - Total noninterest expense increased by $6.5 million, or 12.5%, to $58.7 million for the six months ended June 30, 2023, compared to $52.2 million for the same period in 2022[304] Credit Quality - The Company recorded a provision for credit losses of $140,000 for the six months ended June 30, 2023, compared to a release of provision for credit losses of $412,000 for the same period in 2022[301] - Total non-performing loans increased by $657,000, or 10%, as of June 30, 2023, compared to December 31, 2022[327] - The total allowance for credit losses on loans was $38,073,000, representing 100% of the total loans as of June 30, 2023[332] Equity and Capital - Tangible Common Equity increased to $455,469 thousand as of June 30, 2023, compared to $454,191 thousand on March 31, 2023, reflecting a tangible common equity ratio of 8.41%[340] - The company exceeded regulatory minimum levels to be considered "well-capitalized" as of June 30, 2023[406] Borrowings - Total borrowings increased by $303.7 million, or 288.7%, to $408.9 million at June 30, 2023, from $105.2 million at December 31, 2022[307] - The company's remaining borrowing capacity at the FHLB of Boston was approximately $575.5 million as of June 30, 2023[392] Loan Portfolio - Residential mortgage loans held in portfolio were $1.62 billion at June 30, 2023, a decrease of $31.6 million or 1.9% from $1.65 billion at December 31, 2022[314] - The commercial and industrial (C&I) portfolio increased to $367.4 million at June 30, 2023, up from $350.7 million at December 31, 2022, reflecting an increase of about 4.8%[323] - The company originated $420,000 in residential real estate loans for the six months ended June 30, 2023, compared to $5.834 million for the same period in 2022[319]