Cambridge Bancorp Reports First Quarter Results

Business Wire, April 28, 2008

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $2,311,000 for the first quarter of 2008, or $0.61 per diluted share, compared with $2,243,000, or $0.58 per diluted share, for the same quarter in 2007. The quarter-over-quarter earnings increase of $68,000 (3.0%) was achieved by continued growth in both net interest income and non-interest income.

The Bank's net interest margin was 3.95% for the three months ended March 31, 2008, compared to 4.04% for the first quarter of 2007. 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 twelve months has come from relatively more expensive savings and time deposits.

Joseph V. Roller II, president and CEO, noted "In 2008, we continue to build on the successes achieved in 2007. In particular, we remain focused on executing new plans to deepen relationships with the Bank's customers and attract new clients who value the Bank's personalized approach."

The Bank's commercial real estate lending continued to produce solid growth during the first quarter, as total commercial mortgages increased by $13.1 million or 10.2%. Total loans outstanding grew by $10.1 million to $429 million at quarter end, representing a 2.4% increase over year-end in 2007.

Non-performing loans as a percentage of total loans stood at 0.25% at March 31, 2008, a decline from 0.27% at December 31, 2007. Loan quality remains strong and the Allowance for Loan Losses stood at $6.9 million or 1.62% of total loans outstanding at March 31, 2008. At December 31, 2007, the Allowance for Loan Losses was $6.7 million or 1.59% of total loans outstanding. In response to continued commercial loan growth, the provision for loan losses was $250,000 for the current quarter, an increase of $150,000 over the comparable 2007 quarter.

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 117-year-old Massachusetts chartered commercial bank with $865 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 $1.5 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.

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