Cambridge Bancorp Announces First Quarter Results

Business Wire, April 25, 2005

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported that unaudited net income for the first three months of 2005 was $1,711,000, representing a $63,000 (3.5%) decline from the comparable quarter last year. The principal reasons for the decline were lower non-interest revenue from Trust, MasterCard and other activities, as well as a non-recurring expense item of $200,000. It should also be noted that the Bank had gains from the sale of securities of $179,000 in Q1 2004 versus $2,000 in Q1 2005.

The Bank has experienced a continued uptrend in net interest income. While some of the $640,000 increase this quarter compared to the same quarter last year may be attributed to rising interest rates, the key driver is overall growth in the loan portfolio. Despite higher rates, which can dampen the demand for residential mortgages, branches and lenders generated more volume in the first quarter of 2005 than in last year's first quarter.

"We anticipate a more intense competitive environment as we move into the second quarter," notes Joseph V. Roller II, president and chief executive officer. "Our dedicated employees are well prepared to meet the challenge and agile in their response to changing market dynamics."

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
                            March 31, 2005
                   ----------------------------------
                            Financial Data
                   ----------------------------------
          Dollar amounts in thousands (except per share data)

FIRST QUARTER                       1Q 2005     1Q 2004      Change
                                    -------     -------     -------
Net Income                          $ 1,711     $ 1,774       $ (63)
Basic Earnings per Share               0.43        0.45       (0.02)
Diluted Earnings per Share             0.43        0.44       (0.01)
Dividends Declared per Share           0.25        0.22        0.03

Return on Average Assets               0.97%       1.05%      (0.08)
Return on Average Equity              11.10%      11.75%      (0.65)
Net Interest Margin                    4.37%       4.18%       0.19

Net Interest Income                 $ 7,398     $ 6,758       $ 640
Non Interest Income                   4,050       4,439        (389)
Security Gains                            2         179        (177)
Non Interest Expense                  8,766       8,472        (294)
Provision for Credit Losses              40         175         135

BALANCE SHEET                       3/31/05     3/31/04    12/31/04
                                    -------     -------     -------

Total Assets                       $720,760    $704,977    $723,195
Total Deposits                      649,929     631,777     648,741
Total Loans                         299,553     288,195     292,789
Allowance for Loan Loss              (5,643)     (5,610)     (5,532)
Shareholders' Equity               $ 60,646    $ 63,053    $ 61,525
Diluted Shares Outstanding        3,995,610   3,972,332   3,986,997