Cambridge Bancorp Announces Strong Third Quarter Results

Business Wire, Oct 27, 2004

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $2,080,000 for the third quarter, up 34 percent from the same quarter in 2003. For the first nine months of 2004, unaudited net income was $5,618,000, up 28 percent from the first nine months of 2003, and diluted earnings per share were $1.40, up 31 percent from the first nine months of 2003.

"We are pleased to report another strong quarter at Cambridge Bancorp," notes Joseph V. Roller II, president and chief executive officer. "We continue to make good progress executing our strategy, which is demonstrated by solid loan and deposit growth as well as an increase in non-interest income."

Total assets at period end were $741 million versus $679 million one year ago, and $693 million at the end of 2003. Deposit growth has been strong with an increase of $61.4 million, up 10 percent from year-end.

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 114-year-old Massachusetts chartered commercial bank with nine Massachusetts locations in Cambridge, Concord, Lincoln, Weston, and Beacon Hill. Cambridge Trust Company operates one of New England's leading trust and investment management operations with nearly $1.3 billion in assets under management. In addition, Cambridge Trust Company of New Hampshire offers trust and investment management services at three locations: Concord, Exeter, and Peterborough. White Mountain Investment, a division of Cambridge Trust Company, is also based in Concord, New Hampshire.

Financial Highlights:

CAMBRIDGE BANCORP
                       INTERIM UNAUDITED RESULTS
                          September 30, 2004

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                            Financial Data
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          Dollar amounts in thousands (except per share data)

THIRD QUARTER                         3Q 2004     3Q 2003      Change
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Net Income                             $2,080      $1,551        $529
Basic Earnings per Share                 0.52        0.40        0.12
Diluted Earnings per Share               0.51        0.38        0.13
Dividends declared  per Share            0.25        0.22        0.03

Return on Average Assets                 1.16%       0.92%       0.24
Return on Average Equity                13.93%      10.55%       3.38
Net Interest Margin                      4.25%       4.14%       0.11

Net Interest Income                    $7,291      $6,634        $657
Non Interest Income                     4,693       4,485         208
Security Gains                             34          18          16
Non Interest Expense                    8,694       8,704         (10)
Provision for Credit Losses                75         150         (75)

NINE MONTHS                              2004        2003      Change
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Net Income                             $5,618      $4,382      $1,236
Basic Earnings per share                 1.42        1.12        0.30
Diluted Earnings per share               1.40        1.07        0.33
Dividends declared per share             0.69        0.66        0.03

Return on Average Assets                 1.07%       0.88%       0.19
Return on Average Equity                12.50%       9.80%       2.70
Net Interest Margin                      4.19%       4.20%      (0.01)

Net Interest Income                   $21,041     $19,992      $1,049
Non Interest Income                    13,625      12,691         934
Security Gains                            294          38         256
Non Interest Expense                   25,822      25,805          17
Provision for Credit Losses               400         610        (210)

BALANCE SHEET                        09/30/04    09/30/03    12/31/03
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Total Assets                         $741,381    $678,753    $693,187
Total Deposits                        668,058     590,592     606,648
Total Loans                           294,011     281,111     287,744
Allowance for Loan Loss                (5,788)     (5,734)     (5,759)
Shareholders' Equity                  $60,205     $60,201     $59,605
Diluted Shares outstanding          3,993,224   4,109,718   4,107,178