Cambridge Bancorp Reports Solid Second Quarter Results

Business Wire, July 22, 2008

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $2,531,000 for the second quarter of 2008, or $0.67 per diluted share, compared to $2,335,000, or $0.60 per diluted share, for the same quarter in 2007. For the first six months of 2008, unaudited net income was $4,842,000 representing a 5.8% increase compared to the first half of 2007.

"We are pleased to report sustained earnings growth for the quarter, with a notable increase in net interest income of $844,000 (11.0%) over the same quarter in 2007" notes Joseph V. Roller II, president and CEO. "The continued uptrend in net interest income was driven primarily by loan growth. In this changing financial market, we continue to be active while maintaining our vigorous credit underwriting standards. Moreover, since December 2007, loan growth has been funded by a comparable increase in deposits. In addition, the Bank's net interest margin of 4.05% for the current quarter, while slightly lower than the same quarter in 2007, was 10 basis points higher than the first quarter of 2008."

Since June 2007 loan outstandings have increased $69 million. Half of the growth originated in the commercial real estate sector with the remainder coming from a combination of residential mortgages and home equity loans.

Non-performing loans as a percentage of total loans stood at 0.23% at June 30, 2008, a decline from 0.27% at December 31, 2007. Loan quality remains strong and the Allowance for Loan Losses stood at $7.2 million or 1.60% of total loans outstanding at June 30, 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.

Total assets at period end were $894 million versus $799 million one year ago and $850 million at the end of 2007.

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 $894 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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