Cambridge Bancorp Announces Third Quarter Results

Business Wire, Oct 21, 2008

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income of $2.5 million for the third quarter, representing an increase of $104,000 or 4.3%, over the same quarter in 2007. Diluted earnings per share (EPS) of $0.68 compare with $0.64 a year earlier. For the nine months ending September 30, 2008, unaudited net income was $7.4 million versus $7.0 million for the same period in 2007 - an increase of 5.3%.

"Given the current challenges in the financial markets, we are pleased to report earnings growth for the quarter, with a sustained improvement in net interest income" notes Joseph V. Roller II, the Bank's president and CEO. "We have been able to continue to achieve growth in both deposit and loan relationships as consumers and businesses value the safety and reliability of our services coupled with an unwavering commitment to customer service. Loan delinquencies continue to be low which is attributable to maintaining our high credit quality standards. There continues to be a market for conservative underwriting, which has served the Bank well in today's turbulent environment."

Net interest income of $8.9 million for the September 2008 quarter was $1.2 million, or 14.9% higher than the same quarter in 2007. For the nine months ending September 30, 2008, net interest income of $25.4 million was 10.5% higher than the same period in 2007. The Bank's net interest margin improved to 4.21% during the quarter, an increase of 21 basis points over the same quarter in 2007.

Non-interest income of $4.5 million for the September 2008 quarter was flat to the same quarter in 2007. Wealth Management income grew slightly to $3.3 million for the quarter, offset by a downward trend in deposit account fees and merchant card services.

Total loans outstanding at the September quarter end were $463 million compared to $419 million at end of last year and $407 million in September 2007. Since the beginning of 2008, total loans outstanding have increased $44.2 million (10.6%). Non-performing loans as a percentage of total loans stood at 0.31% at September 31, 2008. Loan quality remains strong and the Allowance for Loan Losses stood at $7.5 million or 1.61% of total loans outstanding at September 30, 2008. At December 31, 2007, the Allowance for Loan Losses was $6.7 million or 1.59% of total loans outstanding. The higher provision for loan losses ($750,000 versus $500,000) for the nine months ended September 30, 2008 is primarily in response to the overall growth in the loan portfolio.

Total deposits stood at $748 million at period end compared to $699 million at December 31, 2007, an increase of 7.0%. Total assets at period end were $897 million compared to $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 118-year-old Massachusetts chartered commercial bank with $897 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:

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