Cambridge Bancorp Announces Strong Third Quarter Results

• Press Release
• Source: Cambridge Bancorp
• On 12:34 pm EDT, Tuesday October 20, 2009

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Cambridge Bancorp (OTCBB: CATC - News) today reported unaudited net income of $3.2 million for the third quarter, representing an increase of $630,000 or 24.9% over the same quarter in 2008. Diluted earnings per share (EPS) of $0.84 compare with $0.68 a year earlier. For the nine months ending September 30, 2009, unaudited net income was $7.6 million versus $7.4 million for the same period in 2008 – an increase of 3.7%.

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Symbol	Price	Change
CATC.OB	30.00	+0.25

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“Deposit and loan growth trends that developed in the early part of 2009 continued in the third quarter” notes Joseph V. Roller II, the Bank’s president and CEO. "Our balance sheet growth clearly drove the significant revenue upswing. However, also noteworthy was the rebound in Wealth Management income. Certainly some of this improvement was attributed to a recovery in equity markets. More importantly, Wealth Management revenues are benefitting from a period of robust new account growth since the beginning of 2009."

Net interest income of $10.0 million for the September 2009 quarter was $1.0 million or 11.4% higher than the same quarter in 2008. For the nine months ending September 30, 2009, net interest income of $28.5 million was $3.1 million or 12.1% higher than the same period in 2008. The Bank’s net interest margin improved to 4.27% during the quarter, an increase of 6 basis points over the same quarter in 2008.

Non-interest income of $4.6 million for the September 2009 quarter was up $104,000 compared to the same quarter in 2008. Wealth Management income remained relatively flat at $3.3 million for the quarter as did most other items, with gains on the disposition of investment securities of $148,000 accounting for the increase in non-interest income.

Total loans outstanding as of September 30, 2009 were $514 million compared to $472 million at the end of last year and $463 million at September 30, 2008. Since the beginning of 2009, total loans outstanding have increased $42.2 million (8.9%). The majority of loan growth ($34.1 million) is attributable to an active residential mortgage market, with commercial lending also experiencing a $9.2 million increase in loans outstanding.

Non-performing loans as a percentage of total loans stood at 0.29% at September 30, 2009, a slight decrease from year-end 2008. Loan quality remains strong and the Allowance for Loan Losses stood at $8.5 million or 1.65% of total loans outstanding at September 30, 2009. At December 31, 2008, the Allowance for Loan Losses was $7.7 million or 1.63% of total loans outstanding. The higher provision for loan losses for the nine month periods ($900,000 in 2009 versus $750,000 in 2008) is primarily in response to the overall growth in the loan portfolio.

Total deposits stood at $847 million at period-end compared to $768 million at December 31, 2008, an increase of 10.3%. Total assets at period-end were $998 million compared to $917 million at the end of 2008.

Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 119-year-old Massachusetts chartered commercial bank with $998 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 $1.4 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:

Cambridge Bancorp
Albert R. Rietheimer, 617-441-1516
Chief Financial Officer & Treasurer