Cambridge Bancorp (NASDAQ:CATC) Q1 2022 Earnings Conference Call April 20, 2022 11:00 AM ET
Company Participants
Denis Sheahan - Chairman, President and Chief Executive Officer
Mike Carotenuto - Chief Financial Officer
Conference Call Participants
Mark Fitzgibbon - Piper Sandler
Chris O'Connell - KBW
William Wallace - Raymond James
Bernard Horn - Polaris Capital Management
Operator
Welcome to the Cambridge Bancorp First Quarter Earnings Conference Call.
We will be making forward-looking statements during this call and actual results may differ materially. We encourage you to review the disclaimer in our earnings release dealing with forward-looking information, which applies to statements made in this call. In addition, some of our discussion may include references to non-GAAP financial measures. Information about those measures, including reconciliation to GAAP measures maybe found in our SEC filings and in our earnings release. All participants will be in listen-only mode [Operator Instructions]. Please note this event is being recorded.
I would now like to turn the conference over to Mr. Denis Sheehan, Chairman, President and Chief Executive Officer. Please go ahead, sir.
Denis Sheahan
Thank you, Joe. Good morning everyone, and thank you all for joining our earnings conference call today. I'll be brief in my comments assuming you have seen the earnings release. I'm joined as always today by our Chief Financial Officer, Mike Carotenuto, who will provide commentary regarding estimates for the remainder of this year and in particular the impact of rising rates as well as loan pipelines. I'm pleased to report another good quarter of earnings and growth at Cambridge Bancorp. Net income was $13.3 million for the quarter, resulting in diluted earnings per share of $1.89. Core deposit growth was again solid with growth of 4% from the previous quarter or 16% annualized. Loan growth gained nicely in the first quarter in both commercial and residential lending with 3% linked quarter growth or 12% annualized.
Looking ahead, we expect residential lending to slow due to higher rates but feel good about prospects for continued growth in commercial lending. Why? Though inflation is evident, the conditions I referenced in prior earnings calls remain in effect. Economic conditions are good, strong innovation economy, life sciences and technology innovation is rampant in our market, benefiting the lending sectors we emphasize, housing, especially multifamily housing, light industrial, lab space and construction. Unemployment levels are low in Massachusetts and New Hampshire. Recent banking consolidation provides opportunity as we are an alternative to the larger merge companies for both talent and clients. Demand continues to exceed supply for housing in both Massachusetts and New Hampshire. And finally, our team has a reputation of being responsive, stable and dependable in the marketplace with a proven ability to deliver.