Cambridge Bancorp Reports Earnings Growth for Full-Year 2008

Business Wire, Jan 27, 2009

CAMBRIDGE, Mass. -- Cambridge Bancorp (OTCBB: CATC) today reported unaudited net income for 2008 of $9.6 million, representing an increase of $370,000 or 4.0% over 2007. Diluted earnings per share (EPS) were $2.56, a 6.2% increase over diluted earnings per share for the prior year.

In the fourth quarter of 2008 unaudited net income was flat at $2.2 million compared to the same quarter in 2007.

"Our fourth quarter results were adversely impacted by the decline in the equity markets, which resulted in a decrease of $480,000 or 15.7% in wealth management fees compared to the fourth quarter of 2007," noted Joseph V. Roller II, president and CEO. "In addition, non-interest expenses trended higher as the Bank filled key positions in wealth management and commercial services, made additional investments in marketing, and opened a new branch in Belmont. These important investments helped to position the Bank well for long term growth."

"We are pleased to report sustained earnings growth for 2008," said Mr. Roller. "The key contributor to the increase in 2008 performance was solid growth in net interest income of $3.7 million or 12.2%, driven primarily by loan growth coupled with a reduction in interest expense on deposits. While we fully expect to continue to face headwinds during this economic downturn, we are intensely focused on managing through this difficult period. The overall strength of our company will allow us to execute on prudent, long term opportunities for future growth."

Total deposits at year-end 2008 were $768 million, an increase of $69.0 million or 9.9%, compared to $699 million at year-end 2007.

Total loans outstanding for year-end 2008 were $472 million compared to $419 million at year-end 2007, an increase of $53.1 million or 12.7%. Loan quality remained strong with non-performing loans totaling $1.6 million at December 31, 2008 compared to $1.1 million at the end of 2007. The Allowance for Loan Losses was $7.7 million or 1.63% of total loans outstanding at year-end 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 of $1.0 million during the year 2008 was primarily in response to the overall growth in the loan portfolio and recognition of current market conditions.

Total assets at year-end 2008 were $917 million versus $850 million year-end 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 $917 million in total assets and ten Massachusetts locations in Cambridge, Beacon Hill, Belmont, Concord, Lincoln, and Weston. Cambridge Trust Company is one of New England's leaders in wealth management with $1.2 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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