Cambridge Bancorp Reports First Quarter Results

Business Wire, April 23, 2007

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $2,244,000 for the first quarter of 2007, or $0.58 per diluted share, compared with $2,158,000, or $0.55 per diluted share, for the same quarter in 2006. The quarter-over-quarter earnings increase of $86,000 (4.0%) was achieved by continued growth in non-interest income from Wealth Management fees and Deposit Account fees, tight management of non-interest expenses and a reduction in our effective income tax rate.

Consistent with the industry experience, Cambridge Trust Company continues to face the challenge of pressure on its net interest margin, which for the current quarter stood at 4.04% compared to 4.38% for the first quarter of 2006. Although the Bank enjoys a strong mix of lower cost core deposits from consumer and commercial customers, most of the deposit growth over the past year has come from more expensive time deposits.

"We expect that the economic and competitive challenges we faced throughout 2006 will be similar for most of 2007" notes Joseph V. Roller II, president and CEO. "We remain focused on executing our business plans, serving our customers at the highest level, and being flexible and responsive to changing business conditions and opportunities."

Total loans outstanding grew by $26 million to $363 million at quarter end, representing a 7.7% increase over the comparable quarter end in 2006. Commercial real estate loans had continued solid growth as did residential mortgage lending.

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 116-year-old Massachusetts chartered commercial bank with $794 million in total assets and nine Massachusetts locations in Cambridge, Concord, Lincoln, Weston, and Beacon Hill. Cambridge Trust Company is one of New England's leaders in wealth management with $1.4 billion in client assets under management. In addition, Cambridge Trust Company of New Hampshire offers wealth management services at two New Hampshire locations, Concord and Exeter.

Financial Highlights:

[TABLE OMITTED]
                                   >             >     March 31,  >
December 31,

March 31,
                                   >             >          2007  >
2006

2006
                                   >             >                >



Total Assets                       >             >     $ 793,510  >
$ 773,013

$ 746,414
Total Loans                        >             >       363,220  >
356,074

337,257
Non-Performing Loans               >             >           968  >
1,688

607
Allowance for Loan Losses          >             >         6,200  >
6,065

5,958
Allowance to Non-Performing Loans  >             >       640.72%  >
359.26%

981.59%
Allowance to Total Loans           >             >         1.71%  >
1.70%

1.77%
Total Deposits                     >             >       689,175  >
663,437

665,979
Total Stockholders' Equity         >             >        64,778  >
63,253

60,186
                                   >             >                >



Book Value Per Share               >             >       $ 16.86  >
$ 16.44

$ 15.61
Tangible Book Value Per Share      >             >       $ 16.34  >
$ 15.89

$ 14.99