CATC Cambridge Bancorp Dashboard

Management Discussion

• General. Net income increased $6.3 million, or 86.7%, to $13.5 million for the quarter ended March 31, 2021, as compared to net income of $7.2 million for the quarter ended March 31, 2020, primarily due to a $11.2 million increase in net interest and dividend income after the provision (release) for credit losses, and a $2.0 million increase in noninterest income, which were partially offset by a $4.3 million increase in noninterest expenses, and higher income tax expense of $2.7 million. Diluted earnings per share were $1.92 for the first quarter of 2021, representing a 44.4% increase over diluted earnings per share of $1.33 for the same quarter last year.
• Net Interest and Dividend Income. Net interest and dividend income before the provision (release) for credit losses increased by $9.0 million, or 40.2%, to $31.4 million, as compared to $22.4 million for the quarter ended March 31, 2020, primarily due to loan growth (both organic and as a result of the merger with Wellesley), lower cost of funds, interest income on PPP loans, and loan accretion associated with merger accounting.
• Total average interest-earning assets increased by $1.15 billion, or 43.2%, to $3.83 billion as of the quarter ended March 31, 2021, from $2.67 billion for the quarter ended March 31, 2020, primarily due to the merger with Wellesley in 2020 and organic loan growth. The Company’s net interest margin, on a fully taxable equivalent basis, decreased four basis points to 3.35% for the quarter ended March 31, 2021, as compared to 3.39% for the quarter ended March 31, 2020, and decreased 32 basis points as compared to 3.67% for the quarter ended December 31, 2020.