Cambridge Bancorp(US:CATC)2022-05-05 12:02Financial Performance - Net income decreased by $183,000, or 1.4%, to $13.3 million for the quarter ended March 31, 2022, compared to $13.5 million for the same quarter in 2021[155]. - Total interest and dividend income rose by $1.1 million, or 3.3%, to $33.9 million for the quarter ended March 31, 2022, from $32.8 million in the prior year[160]. - Net interest income for the quarter ended March 31, 2022, was $31.844 million, compared to $31.746 million for the same period in 2021[240]. - The net interest margin for the quarter ended March 31, 2022, was 2.74%, a decrease from 2.84% in the previous quarter[240]. - Total noninterest income increased by $505,000, or 4.7%, to $11.4 million for the quarter ended March 31, 2022, from $10.8 million in the prior year[165]. Interest Income and Expense - Net interest and dividend income before the release of credit losses increased by $463,000, or 1.5%, to $31.9 million for the quarter ended March 31, 2022, compared to $31.4 million for the same quarter in 2021[156]. - Interest on loans decreased by $1.8 million, or 5.9%, due to lower Paycheck Protection Program loan-related income and lower loan yields[158]. - Interest on investment securities increased by $2.8 million, or 125.8%, primarily due to growth in the investment portfolio[158]. - Interest on deposits increased by $621,000, or 48.7%, due to deposit growth[158]. - Interest expense increased by $614,000, or 43.4%, to $2.0 million for the quarter ended March 31, 2022, compared to $1.4 million for the same quarter in 2021[161]. Assets and Liabilities - The Company had total assets of approximately $5.0 billion as of March 31, 2022[143]. - Total assets increased by $126.8 million, or 2.6%, from $4.89 billion at December 31, 2021, to $5.02 billion at March 31, 2022[170]. - Total average interest-earning assets increased by $925.0 million, or 24.2%, to $4.75 billion for the quarter ended March 31, 2022, compared to $3.83 billion for the same quarter in 2021[159]. - Total deposits grew by $142.6 million, or 3.3%, to $4.47 billion at March 31, 2022, from $4.33 billion at December 31, 2021[177]. - Total borrowings decreased to $16.1 million as of March 31, 2022, down from $16.5 million at December 31, 2021, a reduction of $370,000[237]. Equity and Capital - The Company's effective tax rate was 25.0% for the quarter ended March 31, 2022, down from 26.0% for the same quarter in 2021[169]. - Total shareholders' equity decreased to $436.2 million from $437.8 million, primarily due to unrealized losses and dividend payments[268]. - The ratio of tangible common equity to tangible assets decreased 23 basis points to 7.69% at March 31, 2022, from 7.92% at December 31, 2021[181]. - Tangible Common Equity as of March 31, 2022, is $381.727 million, a slight decrease from $383.308 million on December 31, 2021, and an increase from $352.874 million on March 31, 2021[185]. - The Company exceeded regulatory minimum levels to be considered "well-capitalized" as of March 31, 2022[269]. Loan Portfolio - The total loans outstanding were $3.42 billion as of March 31, 2022, compared to $3.32 billion at December 31, 2021[196]. - The residential mortgage portfolio was $1.45 billion as of March 31, 2022, an increase of $32.1 million, or 2.3%, from $1.42 billion at December 31, 2021, representing 43% of total loans[196]. - Commercial real estate (CRE) loans totaled $1.58 billion as of March 31, 2022, an increase of $68.5 million, or 4.5%, from $1.51 billion at December 31, 2021, representing 46% of total loans[208]. - The commercial and industrial (C&I) portfolio totaled $262.8 million at March 31, 2022, down from $269.4 million at December 31, 2021, representing 8% of total loans[217]. - Non-performing loans increased by $557,000, or 10.3%, to $5,943,000 as of March 31, 2022, compared to $5,386,000 as of December 31, 2021[224]. Risk Management and Liquidity - The Company actively manages interest rate risk through various tools, including interest rate sensitivity analysis and gap analysis[252]. - The Company’s liquidity management includes core deposits, selling investment securities, and borrowing from the FHLB of Boston[265]. - The Company had access to funds totaling $1.85 billion as of March 31, 2022, to manage liquidity needs[265]. - The economic value of equity ratio was estimated at 12.9% with a 200 basis point increase in interest rates, and 9.9% with a 100 basis point decrease[260]. - A 300 basis point parallel rate shock is projected to decrease net interest income by 1.2% in Year 1 and increase it by 14.4% in Year 2[255].