Cambridge Bancorp Reports Solid Second Quarter Results

CAMBRIDGE, Mass.--(Business Wire)--
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.

Financial Highlights:

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CAMBRIDGE BANCORP
QUARTERLY UNAUDITED RESULTS
June 30, 2008
----------------------------------------------------------------------
Dollar amounts in thousands (except share data)

Quarter Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------

Interest Income $ 11,085 $ 10,471 $ 22,006 $ 20,634
Interest Expense 2,567 2,797 5,572 5,452
----------- ----------- ----------- -----------
Net Interest Income 8,518 7,674 16,434 15,182
Provision for Loan
Losses 250 100 500 200
Non-Interest Income 4,289 4,210 8,561 8,200
Non-Interest Expense 8,914 8,324 17,562 16,490
----------- ----------- ----------- -----------
Income Before Taxes 3,643 3,460 6,933 6,692
Income Taxes 1,112 1,125 2,091 2,114
----------- ----------- ----------- -----------
Net Income $ 2,531 $ 2,335 $ 4,842 $ 4,578
=========== =========== =========== ===========

Data Per Common Share:
-----------------------

Basic Earnings Per
Share $ 0.68 $ 0.61 $ 1.29 $ 1.19
Diluted Earnings Per
Share $ 0.67 $ 0.60 $ 1.28 $ 1.18
Dividends Declared Per
Share $ 0.31 $ 0.28 $ 0.62 $ 0.56

Avg. Common Shares
Outstanding:
Basic 3,766,038 3,837,731 3,765,584 3,844,806
Diluted 3,779,243 3,859,815 3,779,272 3,872,271

Selected Operating
Ratios:
-----------------------

Net Interest Margin 4.05% 4.06% 4.00% 4.05%
Return on Average
Assets, after taxes 1.14% 1.18% 1.12% 1.17%
Return on Average
Equity, after taxes 14.07% 14.43% 13.53% 14.25%

June 30, December June 30,
31,
2008 2007 2007
----------- ----------- -----------

Total Assets $ 893,546 $ 849,808 $ 799,390
Total Loans 448,790 418,748 379,916
Non-Performing Loans 1,043 1,129 1,036
Allowance for Loan
Losses 7,201 6,659 6,152
Allowance to Non-
Performing Loans 690.63% 589.74% 593.55%
Allowance to Total
Loans 1.60% 1.59% 1.62%
Total Deposits 738,238 698,625 678,907
Total Stockholders'
Equity 70,325 69,912 63,885

Book Value Per Share $ 18.63 $ 18.49 $ 16.67
Tangible Book Value Per
Share $ 18.23 $ 18.04 $ 16.17
*T

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CAMBRIDGE BANCORP
UNAUDITED BALANCE SHEETS

June 30, December
31,
2008 2007
-------- --------
(In thousands)
ASSETS

Cash and due from banks $ 22,260 $ 18,715
Federal funds sold 704 10,128
-------- --------
Total cash and cash equivalents 22,964 28,843
Investment securities:
Available for sale, at fair value 275,841 218,579
Held-to-maturity, at amortized cost 120,186 158,818
-------- --------
Total investment securities 396,027 377,397
Loans:
Residential mortgage 188,129 174,100
Commercial mortgage 145,937 128,764
Home equity 65,176 66,994
Commercial 32,654 36,249
Consumer 16,894 12,641
-------- --------
Total loans 448,790 418,748
Allowance for loan losses (7,201) (6,659)
-------- --------
Net loans 441,589 412,089

Bank owned life insurance 11,089 10,841
Banking premises and equipment, net 5,173 5,195
Accrued interest receivable 4,468 4,953
Other assets 12,236 10,490
-------- --------
Total assets $893,546 $849,808
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
Demand $190,739 $189,034
Interest bearing checking 203,051 221,715
Money market 57,892 47,230
Savings 141,627 91,761
Certificates of deposit 144,929 148,885
-------- --------
Total deposits 738,238 698,625

Short-term borrowings 19,022 35,540
Long-term borrowings 55,000 35,000
Other liabilities 10,961 10,731
-------- --------
Total liabilities 823,221 779,896
-------- --------
Stockholders' equity:
Common stock, par value $1.00; Authorized
5,000,000 shares; Outstanding: 3,774,575 and
3,768,397 shares, respectively 3,775 3,768
Additional paid-in capital 19,728 19,202
Retained earnings 47,644 46,132
Accumulated other comprehensive income (loss) (822) 810
-------- --------
Total stockholders' equity 70,325 69,912
-------- --------
Total liabilities and stockholders'
equity $893,546 $849,808
======== ========
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CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME

Quarter Ended June
30,
--------------------
2008 2007
--------- ---------
(In thousands,
except per share
data)

Interest income:
Interest on loans $ 6,571 $ 5,996
Interest on investment securities 4,403 4,418
Interest on federal funds sold 111 57
--------- ---------
Total interest income 11,085 10,471
--------- ---------

Interest expense:
Interest on deposits 1,935 2,324
Interest on borrowed funds 632 473
--------- ---------
Total interest expense 2,567 2,797
--------- ---------

Net interest income 8,518 7,674

Provision for loan losses 250 100
--------- ---------

Net interest income after provision for loan
losses 8,268 7,574
--------- ---------

Noninterest income:
Wealth management income 2,920 2,946
Deposit account fees 576 633
ATM/Debit card income 220 214
Merchant card services 146 259
Bank owned life insurance income 131 --
Gain on disposition of investment securities 87 --
Other income 209 158
--------- ---------
Total noninterest income 4,289 4,210
--------- ---------

Noninterest expense:
Salaries and employee benefits 5,059 4,686
Occupancy and equipment 1,636 1,529
Data processing 698 687
Professional services 432 379
Marketing 372 305
Other expenses 717 738
--------- ---------
Total noninterest expense 8,914 8,324
--------- ---------

Income before income taxes 3,643 3,460

Income tax expense 1,112 1,125

--------- ---------
Net income $ 2,531 $ 2,335
========= =========

Per share data:

Basic earnings per common share $ 0.68 $ 0.61
Diluted earnings per common share $ 0.67 $ 0.60

Average shares outstanding - basic 3,766,038 3,837,731
Average shares outstanding - diluted 3,779,243 3,859,815
*T

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CAMBRIDGE BANCORP
UNAUDITED STATEMENTS OF INCOME

Six Months Ended
June 30,
--------------------
2008 2007
--------- ---------
(In thousands,
except per share
data)

Interest income:
Interest on loans $ 13,182 $ 11,794
Interest on investment securities 8,703 8,769
Interest on federal funds sold 121 71
--------- ---------
Total interest income 22,006 20,634
--------- ---------

Interest expense:
Interest on deposits 4,190 4,471
Interest on borrowed funds 1,382 981
--------- ---------
Total interest expense 5,572 5,452
--------- ---------

Net interest income 16,434 15,182

Provision for loan losses 500 200
--------- ---------

Net interest income after provision for loan
losses 15,934 14,982
--------- ---------

Noninterest income:
Wealth management income 5,872 5,660
Deposit account fees 1,166 1,251
ATM/Debit card income 415 405
Merchant card services 262 437
Bank owned life insurance income 249 --
Gain on disposition of investment securities 245 119
Other income 352 328
--------- ---------
Total noninterest income 8,561 8,200
--------- ---------

Noninterest expense:
Salaries and employee benefits 10,061 9,280
Occupancy and equipment 3,190 3,068
Data processing 1,425 1,345
Professional services 794 832
Marketing 685 570
Other expenses 1,407 1,395
--------- ---------
Total noninterest expense 17,562 16,490
--------- ---------

Income before income taxes 6,933 6,692

Income tax expense 2,091 2,114

--------- ---------
Net income $ 4,842 $ 4,578
========= =========

Per share data:

Basic earnings per common share $ 1.29 $ 1.19
Diluted earnings per common share $ 1.28 $ 1.18

Average shares outstanding - basic 3,765,584 3,844,806
Average shares outstanding - diluted 3,779,272 3,872,271
*T

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

Copyright Business Wire 2008