Cambridge Bancorp Announces Operating Results for the Third Quarter and Declares Dividend

Rhea-AI Summary

Cambridge Bancorp (NASDAQ: CATC) reported a net income of $13.3 million for Q3 2021, marking a 4.5% decline from Q2 2021. Diluted EPS decreased to $1.89. For the nine months ended September 30, net income surged 115.2% year-over-year to $40.8 million, with diluted EPS rising to $5.80. The company closed two branches and incurred $787,000 in associated expenses. Key highlights include a 2.2% loan increase to $3.24 billion and strong asset quality. The total asset climbed 13.5% to $4.48 billion. The net interest margin fell to 3.10% for Q3 2021.

Positive

• 115.2% increase in net income to $40.8 million for the nine months ended September 30, 2021.
• Diluted EPS rose to $5.80, an increase of 87.7% year-over-year.
• Strong asset quality with non-performing loans at 0.18% of total loans.
• Total assets increased by 13.5% to $4.48 billion.
• Core deposit growth of $193.1 million, or 5.4% from the previous quarter.

Negative

• Net income decreased by 4.5% to $13.3 million compared to the prior quarter.
• Diluted EPS dropped to $1.89, a 4.5% decline from Q2 2021.
• Incurred $787,000 in non-operating expenses due to branch closures.

CAMBRIDGE, Mass., Oct. 19, 2021 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC) (the "Company"), the parent company of Cambridge Trust Company (the "Bank"), today announced unaudited net income of $13.3 million for the quarter ended September 30, 2021, a decrease of $625,000, or 4.5%, as compared to net income of $13.9 million for the quarter ended June 30, 2021. Diluted earnings per share were $1.89 for the quarter ended September 30, 2021, representing a 4.5% decrease as compared to diluted earnings per share of $1.98 for the quarter ended June 30, 2021, primarily as result of non-operating expenses and lower loan fair value accretion between the periods.  

For the nine months ended September 30, 2021, unaudited net income was $40.8 million, representing an increase of $21.8 million, or 115.2%, as compared to net income of $18.9 million for the nine months ended September 30, 2020. Diluted earnings per share were $5.80 for the nine months ended September 30, 2021, representing an 87.7% increase as compared to diluted earnings per share of $3.09 for the nine months ended September 30, 2020. Net income for the nine months ended September 30, 2020, was impacted by various items resulting from the Company's merger with Wellesley Bancorp Inc. ("Wellesley") on June 1, 2020, and the effect of the COVID-19 pandemic on the Company's allowance for credit losses.

During the third quarter of 2021, the Company closed its Wellesley Square, Massachusetts and Pease Tradeport, New Hampshire branch locations and relocated its Concord, New Hampshire wealth management location. The Company recorded $787,000 of expenses associated with the branch closures and relocation within non-operating expenses during the third quarter of 2021. 

Operating net income for both quarters ended September 30, 2021, and June 30, 2021, which exclude non-operating expenses was $13.9 million. Operating diluted earnings per share were $1.97 for the quarter ended September 30, 2021, representing a 0.5% decrease as compared to operating diluted earnings per share of $1.98 for the quarter ended June 30, 2021.

Operating net income was $41.3 million for the nine months ended September 30, 2021, an increase of $11.8 million, or 40.0%, as compared to operating net income of $29.5 million for the nine months ended September 30, 2020. Operating diluted earnings per share were $5.89 for the nine months ended September 30, 2021, representing a 21.9% increase as compared to operating diluted earnings per share of $4.83 for the nine months ended September 30, 2020.

Third quarter 2021 highlights:

• Financial performance ratios for the quarter ended September 30, 2021, were strong with Operating Return on Average Assets ("ROA") of 1.25% and Operating Return on Tangible Common Shareholders' Equity ("ROTCE") of 14.92%.
• Total loans, excluding loans under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), increased by $68.6 million, or 2.2%, from June 30, 2021, to $3.24 billion at September 30, 2021.
• Core deposit growth of $193.1 million, or 5.4%, from the quarter ended June 30, 2021.
• Asset quality at September 30, 2021, remained excellent with ratios of non-performing loans to total loans and non-performing assets to total assets at 0.18% and 0.13%, respectively.
• Tangible book value per share at September 30, 2021 has increased to $53.54.

"During the third quarter, the Company continued to capitalize on the market opportunity in front of us. We saw growth within core deposits, loans, and wealth assets while maintaining strong asset quality," noted Denis K. Sheahan, Chairman and CEO. "Financial results were solid and I am pleased to see continued strength in our new business pipelines."

Balance Sheet

Total assets increased by $534.3 million, or 13.5%, from $3.95 billion at December 31, 2020 to $4.48 billion at September 30, 2021.

Total loans increased by $147.3 million, or 4.7%, from $3.15 billion at December 31, 2020 to $3.30 billion at September 30, 2021. Excluding PPP loans, total loans increased by $212.7 million, or 7.0%, from December 31, 2020.

• Residential real estate loans increased by $82.5 million, from $1.30 billion at December 31, 2020, to $1.38 billion at September 30, 2021.
• Commercial real estate loans increased by $115.7 million, from $1.36 billion at December 31, 2020, to $1.47 billion at September 30, 2021.
• Commercial and industrial loans, excluding PPP loans, increased by $33.5 million, from $223.7 million at December 31, 2020, to $257.1 million at September 30, 2021.
• PPP loans were $58.8 million at September 30, 2021, and are included in commercial and industrial loans on the consolidated balance sheets. Approximately 98.6% of first round and 43.8% of second round PPP loans have been or are in the process of being forgiven. 

The Company's total investment securities portfolio increased by $392.6 million, or 81.0%, from $484.7 million at December 31, 2020, to $877.3 million at September 30, 2021, as the Company invested excess cash.

Total deposits increased by $531.8 million, or 15.6%, to $3.93 billion at September 30, 2021, from $3.40 billion at December 31, 2020.  

• Core deposits, which the Company defines as all deposits other than certificates of deposit, increased by $595.5 million, or 18.9%, to $3.74 billion at September 30, 2021, as a result of growth from new and existing client relationships.
• The cost of total deposits was 0.11% for both the quarters ended September 30, 2021, and June 30, 2021. The cost of total deposits for the nine months ended September 30, 2021, was 0.12%, as compared to 0.28% for the nine months ended September 30, 2020, a reduction of 16 basis points.  At September 30, 2021, the spot cost of deposits was 0.13%.

Net Interest and Dividend Income

Net interest and dividend income, before the provision for (release of) credit losses, was essentially unchanged at  $32.4 million for the quarters ended September 30, 2021, and June 30, 2021. 

For the nine months ended September 30, 2021, net interest and dividend income before the provision for (release of) credit losses increased by $10.1 million, or 11.7%, to $96.2 million as compared to $86.2 million for the nine months ended September 30, 2020. This increase was primarily due to higher deferred PPP loan income recognized on PPP loans forgiven by the SBA during the period and a lower cost of funds, partially offset by lower loan accretion associated with merger accounting and lower yields on interest-earning assets during the period.  

The Company's net interest margin on a fully taxable equivalent basis decreased by 15 basis points to 3.10% for the quarter ended September 30, 2021, as compared to 3.25% for the quarter ended June 30, 2021.

The Company's net interest margin on a fully taxable equivalent basis decreased by 42 basis points to 3.23% for the nine months ended September 30, 2021, as compared to 3.65% for nine months ended September 30, 2020.

In order to provide greater disclosure of the impact of loan related merger accounting and the impact of the SBA's PPP loan program, a reconciliation of the Company's net interest margin, on a fully taxable equivalent basis, to an adjusted net interest margin, on a fully taxable equivalent basis, is shown below. Excluding the impact of merger related loan accretion and the impact of PPP loans, the adjusted net interest margin, on a fully taxable equivalent basis, for the quarter ended September 30, 2021, was 2.92%, representing a nine basis point decrease from the adjusted net interest margin, on a fully taxable equivalent basis, of 3.01% for the quarter ended June 30, 2021.

		Three Months Ended
		September 30, 2021
		Average Balance				Interest Income/ Expenses				Rate Earned/ Paid
		(dollars in thousands)
Total interest-earning assets (GAAP)		$	4,180,369
Net interest income on a fully taxable equivalent basis (GAAP)						$	32,688
Net interest margin on a fully taxable equivalent basis (GAAP)											3.10	%
Less: Paycheck Protection Program loan impact			(81,880)				(1,558)				-0.09	%
Less: Accretion of loan fair value adjustments							(1,014)				-0.09	%
Adjusted net interest margin on a fully taxable equivalent basis		$	4,098,489			$	30,116				2.92	%
Less: Excess cash impact (1)			(60,884)				(23)				0.04	%
Normalized adjusted net interest margin on a fully taxable equivalent basis		$	4,037,605			$	30,093				2.96	%
(1) Excess cash represents the estimated amount of average cash on the balance sheet that is above normal levels.

Excluding the impact of merger related loan accretion and the impact of PPP loans, the adjusted net interest margin, on a fully taxable equivalent basis, for the nine months ended September 30, 2021, was 3.02%, representing a 37 basis point decrease from the adjusted net interest margin, on a fully taxable equivalent basis, of 3.39% for the nine months ended September 30, 2020.

		Nine Months Ended
		September 30, 2021
		Average Balance				Interest Income/ Expenses				Rate Earned/ Paid
		(dollars in thousands)
Total interest-earning assets (GAAP)		$	4,012,805
Net interest income on a fully taxable equivalent basis (GAAP)						$	96,938
Net interest margin on a fully taxable equivalent basis (GAAP)											3.23	%
Less: Paycheck Protection Program loan impact			(125,006)				(4,876)				-0.06	%
Less: Accretion of loan fair value adjustments							(4,142)				-0.15	%
Adjusted net interest margin on a fully taxable equivalent basis		$	3,887,799			$	87,920				3.02	%
Less: Excess cash impact (1)			(77,594)				(87)				0.06	%
Normalized adjusted net interest margin on a fully taxable equivalent    basis		$	3,810,205			$	87,833				3.08	%
(1) Excess cash represents the estimated amount of average cash on the balance sheet that is above normal levels.

Provision for Credit Losses

During the three months ended September 30, 2021, the Company recorded a provision for credit losses of $86,000 as a result of the Company's loan growth during the quarter, partially offset by improving forward-looking economic assumptions and the resulting decrease in loss expectations in the Company's allowance for credit losses modeling. For the nine months ended September 30, 2021, the Company recorded a release of the provision for credit losses of $1.0 million, as compared to a $18.4 million provision for credit losses for the nine months ended September 30, 2020, which included $9.3 million associated with the expected impact of the COVID-19 pandemic on future loan losses and $8.6 million for the recognition of the non-operating impact of merger related CECL accounting.

Noninterest Income

Total noninterest income increased by $209,000, or 1.9%, to $11.1 million for the quarter ended September 30, 2021, as compared to $10.9 million for the quarter ended June 30, 2021. This change was primarily the result of an increase in wealth management revenue, partially offset by a decrease in gain on loans sold and lower loan related derivative income. Noninterest income was 25.5% of total revenue for the quarter ended September 30, 2021.

• Wealth management revenue increased by $615,000, or 7.1%, to $9.2 million for the third quarter of 2021, as compared to $8.6 million for the second quarter of 2021, primarily due to the seasonal impact of $450,000 in tax preparation fees recognized for the quarter. Wealth Management Assets under Management and Administration were $4.5 billion at September 30, 2021, an increase of 1%, from June 30, 2021, primarily due to appreciation within the equity markets.
• Gain on loans sold decreased by $120,000, or 72.7%, to $45,000 for the third quarter of 2021, as compared to $165,000 for the second quarter of 2021 due to decreased sales of residential mortgages.
• Loan related derivative income decreased by $177,000, or 31.2%, to $390,000 for the third quarter of 2021 as compared to $567,000 for the second quarter of 2021.

Total noninterest income increased by $4.1 million, or 14.4%, to $32.9 million for the nine months ended September 30, 2021, as compared to $28.7 million for the nine months ended September 30, 2020. This change was primarily a result of increases in wealth management revenue and loan related derivative income partially offset by decreases in deposit account fees and gain on loans sold. Noninterest income was 25.5% of total revenue for the nine months ended September 30, 2021.

• Wealth management revenue increased by $4.3 million, or 19.9%, to $26.0 million for the nine months ended September 30, 2021, as compared to $21.7 million for the nine months ended September 30, 2020, primarily due to appreciation within the equity market.
• Loan related derivative income increased by $491,000, or 43.2%, to $1.6 million for the nine months ended September 30, 2021, as compared to $1.1 million for the nine months ended September 30, 2020, due to increased loan volume combined with fair value adjustments.
• Deposit account fees decreased by $669,000, or 32.0%, to $1.4 million for the nine months ended September 30, 2021, as compared to $2.1 million for the nine months ended September 30, 2020, primarily due to a decrease in fee revenue from commercial deposit sweep products as a result of lower  interest rates.
• Gain on loans sold decreased by $406,000, or 34.3%, to $779,000 for the nine months ended September 30, 2021, as compared to $1.2 million for the nine months ended September 30, 2020 due to decreased sales of residential mortgages.

Noninterest Expense

Total noninterest expense increased by $251,000, or 1.0%, to $25.5 million for the quarter ended September 30, 2021, as compared to $25.3 million for the quarter ended June 30, 2021, primarily driven by an increase in non-operating expenses, partially offset by marketing expenses.

• Non-operating expenses of $787,000 during the quarter were primarily the result of branch closures and relocation expenses associated with the locations discussed above. The Company did not record any non-operating expenses during the quarter ended June 30, 2021.
• Marketing expense decreased by $345,000, or 36.2%, to $608,000 for the quarter ended September 30, 2021, as compared to $953,000 for the quarter ended June 30, 2021, primarily driven by the timing of the Company's marketing campaigns.

Total noninterest expense increased by $4.1 million, or 5.7%, to $75.0 million for the nine months ended September 30, 2021, as compared to $71.0 million for the nine months ended September 30, 2020, primarily driven by increases in salaries and employee benefits expense, occupancy and equipment expense, and professional fees, partially offset by a decrease in non-operating expenses.

• Salaries and employee benefits expense increased by $6.6 million, or 15.6%, primarily related to the merger with Wellesley in the second quarter of 2020, additions to support business initiatives, normal merit increases, and increases in employee benefit costs.
• Occupancy and equipment expense increased by $961,000, or 10.2%, primarily as a result of additional branches and office space arising from the merger with Wellesley.
• Professional services increased by $929,000, or 29.9%, primarily due to increased consulting fees associated with the wealth management system conversion anticipated in the fourth quarter of 2021 and employment agency costs.
• Non-operating expenses decreased by $5.0 million, or 86.4% primarily due to one-time non-operating costs associated with the Wellesley merger that were incurred in 2020.

Asset Quality

Non-performing loans totaled $5.9 million, or 0.18% of total loans outstanding, at September 30, 2021. The allowance for credit losses was $35.2 million, or 1.09% of total loans outstanding excluding PPP loans, at September 30, 2021, as compared to $35.0 million, or 1.10% of total loans outstanding excluding PPP loans, at June 30, 2021.

The Company recorded net loan recoveries of $76,000, or 0.01% of total loans (annualized), for the quarter ended September 30, 2021, as compared to net loan recoveries of $46,000, or 0.01% of total loans (annualized), for the quarter ended June 30, 2021.

Net loan recoveries were $142,000, or 0.00% of total loans, for the nine months ended September 30, 2021, as compared to net charge-offs of $613,000, or 0.02% of total loans, for the nine months ended September 30, 2020.

The following table shows additional and historical information regarding non-performing assets, early-stage delinquency (30-89 days delinquent), and troubled debt restructurings:

		Nonperforming Assets
		September 30, 2021				June 30, 2021				December 31, 2020				September 30, 2020
		(dollars in thousands)
Total nonperforming loans		$	5,851			$	5,463			$	8,962			$	9,189
Other real estate owned			—				—				1,820				1,820
Total nonperforming assets		$	5,851			$	5,463			$	10,782			$	11,009
Troubled debt restructurings ("TDRs"):
Non-performing (included in total non-performing loans above)		$	767			$	782			$	811			$	811
Performing			—				—				—				—
Total troubled debt restructurings		$	767			$	782			$	811			$	811
Nonperforming loans/total loans			0.18	%			0.17	%			0.28	%			0.28	%
Nonperforming assets/total assets			0.13	%			0.13	%			0.27	%			0.28	%
TDRs/total loans			0.02	%			0.02	%			0.03	%			0.02	%
		Additional Asset Quality Indicators
		September 30, 2021				June 30, 2021				December 31, 2020				September 30, 2020
Delinquent loans 30-89 days past due/total loans			0.54	%			0.39	%			0.72	%			0.40	%
Quarterly net recoveries (charge-offs)/total loans (annualized)			0.01	%			0.01	%			0.02	%			(0.03)	%
Year to date net recoveries (charge-offs)/total loans			0.00	%			0.00	%			(0.01)	%			(0.02)	%
Allowance for credit losses/nonperforming loans			602.14	%			641.21	%			401.88	%			390.90	%
Allowance for credit losses/total loans ex. PPP loans			1.09	%			1.10	%			1.19	%			1.16	%

Forbearance/Modifications

The Company instituted payment deferral programs to aid borrowers with payment forbearance during the pandemic. For commercial and consumer borrowers, the Company provided payment relief for those who were impacted by the COVID-19 pandemic and had requested payment assistance. The Company had four loans totaling $4.3 million on deferral, or 0.13% of total loans outstanding, at September 30, 2021.  

Income Taxes

The Company's effective tax rate was 25.7% for the quarter ended September 30, 2021, as compared to 26.3% for the quarter ended June 30, 2021. For the nine months ended September 30, 2021, the Company's effective tax rate was 26.0%, as compared to 25.7% for the nine months ended September 30, 2020.

Dividend and Capital

On October 18, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.61 per share, which is payable on November 18, 2021, to shareholders of record as of the close of business on November 4, 2021. The Company did not repurchase any shares under its previously announced share repurchase program during the three and nine months ended September 30, 2021.

The Company's ratio of tangible common equity to tangible assets decreased to 8.42% at September 30, 2021, from 8.59% at June 30, 2021, primarily due to strong asset growth during the quarter ended September 30, 2021. Tangible common equity to tangible assets, excluding PPP loans, decreased to 8.53% at September 30, 2021, as compared to 8.81% at June 30, 2021. Tangible book value per share grew by $1.17, or 2.2%, to $53.54 at September 30, 2021, as compared to $52.37 at June 30, 2021. 

Investor Conference Call and Investor Presentation

An investor presentation is available on the investor relations section of the Company's website: http://ir.cambridgetrust.com or within the hyperlink provided below.  This presentation includes additional detail regarding the Company's loan portfolio, liquidity position, and other financial disclosures.  Click here to download.

Cambridge Bancorp will also conduct a conference call/webcast at 11:00 a.m. Eastern Time on Tuesday, October 19, 2021, to discuss the results for the quarter.  Participants are encouraged to pre-register for the conference call using the following link: https://dpregister.com/sreg/10159311/ec0eae866c. 

Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the call.  Participants may pre-register at any time prior to the call and will immediately receive simple instructions via email. Additionally, participants may reach the registration link and access the webcast by logging in through the investor section of the Company's website at http://ir.cambridgetrust.com.

Those parties who do not have Internet access, or are otherwise unable to pre-register for this event, may still participate at the above time by dialing 1-866-777-2509 and asking the operator to join the Cambridge Bancorp (CATC) earnings call. Participants are requested to dial-in a few minutes before the scheduled start of the call. The webcast will be archived for three months on our investor relations website at https://ir.cambridgetrust.com/news-market-information/presentations/default.aspx.

About Cambridge Bancorp

Cambridge Bancorp, the parent company of Cambridge Trust Company, is based in Cambridge, Massachusetts. Cambridge Trust Company is a 131-year-old Massachusetts chartered commercial bank with approximately $4.5 billion in assets at September 30, 2021, and a total of 19 Massachusetts and New Hampshire locations. Cambridge Trust Company is one of New England's leaders in private banking and wealth management with $4.5 billion in client assets under management and administration at September 30, 2021. The Wealth Management group maintains offices in Boston and Wellesley, Massachusetts and Concord, Manchester, and Portsmouth, New Hampshire.

The accompanying unaudited condensed interim and annual consolidated financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K, which is posted in the investor relations section of the Company's website at http://ir.cambridgetrust.com.

Forward-looking Statements

Certain statements herein may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements about the Company and its industry involve substantial risks and uncertainties. Statements other than statements of current or historical fact, including statements regarding the Company's future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, the impact of any laws or regulations applicable to the Company, and measures being taken in response to the COVID-19 pandemic and the impact of the COVID-19 pandemic on the Company's business are forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions are intended to identify these forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Such factors include, but are not limited to, the following: the current global economic uncertainty and economic conditions being less favorable than expected; disruptions to the credit and financial markets; changes in the Company's accounting policies or in accounting standards; weakness in the real estate market; legislative, regulatory, or accounting changes that adversely affect the Company's business and/or competitive position; the Dodd-Frank Act's consumer protection regulations; the duration and scope of the COVID-19 pandemic and its impact on levels of consumer confidence; actions  that governments, businesses and individuals take in response to the COVID-19 pandemic; the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; a prolonged resurgence in the severity of the COVID-19 pandemic due to variants and mutations of the virus; the pace of recovery when the COVID-19 pandemic subsides; challenges from the integration of the Company and Wellesley resulting in the combined business not operating as effectively as expected; disruptions in the Company's ability to access the capital markets; the cost savings of the merger with Wellesley may not be fully realized or may take longer to realize than expected; operating costs, customer loss, and business disruption following the merger with Wellesley, including adverse effects on relationships with employees, may be greater than expected; and other factors that are described in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year end December 31, 2020, which the Company filed on March 15, 2021. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. You are cautioned not to place undue reliance on these forward-looking statements.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This information includes operating net income and operating diluted earnings per share, tangible book value per share and the tangible common equity ratio (including and excluding PPP loans), operating return on average assets, operating return on tangible common equity, operating efficiency ratio, and operating pre-tax pre-provision income and operating return on average assets.

Operating net income and operating diluted earnings per share exclude items that management believes are unrelated to its core banking business such as merger and acquisition expenses, gain (loss) on disposition of investment securities, and other items. The Company's management uses operating net income and operating diluted earnings per share to measure the strength of the Company's core banking business and to identify trends that may to some extent be obscured by such excluded gains or losses.

Management also supplements its evaluation of financial performance with an analysis of tangible book value per share (which is computed by dividing shareholders' equity less goodwill and acquisition related intangible assets, or "tangible common equity," by common shares outstanding), the tangible common equity ratio (which is computed by dividing tangible common equity by tangible assets, defined as total assets less goodwill and acquisition related intangibles), return on average assets and return on tangible common equity on an operating basis, the operating efficiency ratio (which is computed by dividing noninterest expense adjusted for non-operating expenses and total revenue adjusted for gain/(loss) on disposition of investment securities), operating pre-tax pre-provision income over average assets (which is computed by dividing income before taxes adjusted for the provision for (release of) credit losses, non-operating expenses, and gain/(loss) on disposition of investment securities over average assets). The Company has included information on these non-GAAP financial measures because the Company believes that investors may find it useful to have access to the same analytical tool used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.

These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management deems to be non-operating and excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP performance measures are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented under "GAAP to Non-GAAP Reconciliations."

CONTACT:
Cambridge Bancorp
Michael F. Carotenuto
Chief Financial Officer
617-520-5520

 

 

CAMBRIDGE BANCORP AND SUBSIDIARIES QUARTERLY UNAUDITED RESULTS
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2021				2021				2020				2021				2020
		(dollars in thousands, except per share data)
Interest and Dividend Income		$	33,654			$	33,528			$	36,881			$	100,003			$	93,506
Interest Expense			1,233				1,147				1,919				3,795				7,355
Net Interest and Dividend Income			32,421				32,381				34,962				96,208				86,151
Provision for (Release of) for Credit Losses			86				(901)				2,000				(1,021)				18,430
Noninterest Income			11,115				10,906				10,933				32,870				28,723
Noninterest Expense			25,524				25,273				25,445				75,016				70,958
Income Before Income Taxes			17,926				18,915				18,450				55,083				25,486
Income Tax Expense			4,607				4,971				5,021				14,321				6,542
Net Income		$	13,319			$	13,944			$	13,429			$	40,762			$	18,944
Operating Net Income*		$	13,887			$	13,944			$	14,317			$	41,330			$	29,528
Data Per Common Share:
Basic Earnings Per Share		$	1.91			$	2.00			$	1.94			$	5.86			$	3.11
Diluted Earnings Per Share			1.89				1.98				1.93				5.80				3.09
Operating Diluted Earnings Per Share*			1.97				1.98				2.06				5.89				4.83
Dividends Declared Per Share			0.61				0.61				0.53				1.77				1.59
Average Common Shares Outstanding:
Basic			6,932,882				6,930,268				6,918,692				6,924,168				6,078,586
Diluted			6,999,773				6,998,936				6,954,324				6,991,175				6,113,828
Selected Performance Ratios:
Net Interest Margin, FTE			3.10	%			3.25	%			3.73	%			3.23	%			3.65	%
Adjusted Net Interest Margin, FTE			2.92	%			3.01	%			3.41	%			3.02	%			3.39	%
Cost of Funds			0.12	%			0.11	%			0.20	%			0.13	%			0.31	%
Cost of Interest-Bearing Liabilities			0.18	%			0.18	%			0.31	%			0.20	%			0.46	%
Cost of Deposits			0.11	%			0.11	%			0.16	%			0.12	%			0.28	%
Cost of Deposits excluding Wholesale Deposits			0.11	%			0.11	%			0.14	%			0.12	%			0.26	%
Return on Average Assets			1.20	%			1.32	%			1.34	%			1.29	%			0.75	%
Return on Average Equity			12.47	%			13.57	%			13.78	%			13.17	%			7.53	%
Efficiency Ratio*			58.63	%			58.38	%			55.44	%			58.12	%			61.77	%
Operating Return on Average Assets*			1.25	%			1.32	%			1.43	%			1.31	%			1.17	%
Operating Return on Tangible Common Equity*			14.92	%			15.64	%			17.12	%			15.40	%			13.48	%
Operating Efficiency Ratio*			56.82	%			58.38	%			52.90	%			57.51	%			56.77	%
		September 30,				June 30,				December 31,				September 30,
		2021				2021				2020				2020
		(dollars in thousands, except per share data)
Total Assets		$	4,483,567			$	4,303,287			$	3,949,297			$	3,987,109
Total Loans			3,300,918				3,281,149				3,153,648				3,284,286
Total Deposits			3,934,846				3,764,558				3,403,083				3,331,942
Allowance for Credit Losses			35,231				35,029				36,016				35,920
Allowance to Total Loans (ex. PPP)			1.09	%			1.10	%			1.19	%			1.16	%
Non-Performing Loans			5,851				5,463				8,962				9,189
Non-Performing Loans/Total loans			0.18	%			0.17	%			0.28	%			0.28	%
QTD Net Recoveries (Charge-offs) to Total Loans (annualized)			0.01	%			0.01	%			0.02	%		(0.03)		%
Tangible Common Equity Ratio*			8.42	%			8.59	%			8.91	%			8.60	%
Tangible Common Equity Ratio (ex. PPP)*			8.53	%			8.81	%			9.20	%			9.03	%
Book Value Per Share		$	61.38			$	60.23			$	58.00			$	56.73
Tangible Book Value Per Share*		$	53.54			$	52.37			$	50.07			$	48.80
Wealth Management AUM		$	4,324,400			$	4,282,204			$	3,994,152			$	3,791,064
Wealth Management AUM & AUA		$	4,506,174			$	4,471,157			$	4,167,903			$	3,948,478
* See GAAP to Non-GAAP Reconciliations

 

 

CAMBRIDGE BANCORP AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS
		September 30, 2021				December 31, 2020
		(dollars in thousands, except par value)
Assets
Cash and cash equivalents		$	93,477			$	75,785
Investment securities
Available for sale, at fair value (amortized cost $211,900 and $234,252, respectively)			210,993				237,030
Held to maturity, at amortized cost (fair value $668,640 and $260,139, respectively)			666,322				247,672
Total investment securities			877,315				484,702
Loans held for sale, at lower of cost or fair value			—				6,909
Loans
Residential mortgage			1,381,413				1,298,868
Commercial mortgage			1,474,694				1,358,962
Home equity			90,697				106,194
Commercial and industrial			315,904				347,855
Consumer			38,210				41,769
Total loans			3,300,918				3,153,648
Less: allowance for credit losses on loans			(35,231)				(36,016)
Net loans			3,265,687				3,117,632
Federal Home Loan Bank of Boston Stock, at cost			4,816				5,734
Bank owned life insurance			46,773				46,169
Banking premises and equipment, net			17,266				18,158
Right-of-use asset operating leases			31,639				34,927
Deferred income taxes, net			10,834				11,639
Accrued interest receivable			8,895				9,514
Goodwill			51,912				51,912
Merger-related intangibles, net			2,707				2,977
Other assets			72,246				83,239
Total assets		$	4,483,567			$	3,949,297
Liabilities
Deposits
Demand		$	1,281,881			$	1,006,132
Interest-bearing checking			682,675				625,650
Money market			841,641				532,218
Savings			937,565				984,262
Certificates of deposit			191,084				254,821
Total deposits			3,934,846				3,403,083
Borrowings			16,878				32,992
Operating lease liabilities			34,341				37,448
Other liabilities			69,925				74,042
Total liabilities			4,055,990				3,547,565
Shareholders' Equity
Common stock, par value $1.00; Authorized: 10,000,000 shares; Outstanding: 6,965,871 shares and 6,926,728 shares, respectively			6,966				6,927
Additional paid-in capital			228,694				226,967
Retained earnings			193,861				165,404
Accumulated other comprehensive income (loss)			(1,944)				2,434
Total shareholders' equity			427,577				401,732
Total liabilities and shareholders' equity		$	4,483,567			$	3,949,297

 

 

CAMBRIDGE BANCORP AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended													Nine Months Ended
		September 30, 2021				June 30, 2021				September 30, 2020					September 30, 2021				September 30, 2020
		(dollars in thousands, except share data)
Interest and dividend income
Interest on taxable loans		$	30,093			$	30,557			$	34,468				$	90,975			$	85,936
Interest on tax-exempt loans			353				275				243					850				652
Interest on taxable investment securities			2,502				2,023				1,404					6,110				4,648
Interest on tax-exempt investment securities			671				633				631					1,962				1,827
Dividends on FHLB of Boston stock			7				12				127					19				280
Interest on overnight investments			28				28				8					87				163
Total interest and dividend income			33,654				33,528				36,881					100,003				93,506
Interest expense
Interest on deposits			1,086				1,006				1,354					3,367				5,879
Interest on borrowed funds			147				141				376					428				1,223
Interest on subordinated debt			—				—				189					—				253
Total interest expense			1,233				1,147				1,919					3,795				7,355
Net interest and dividend income			32,421				32,381				34,962					96,208				86,151
Provision for (release of) credit losses			86				(901)				2,000					(1,021)				18,430
Net interest and dividend income after provision for (release of) credit losses			32,335				33,282				32,962					97,229				67,721
Noninterest income
Wealth management revenue			9,238				8,623				8,025					26,012				21,686
Deposit account fees			462				484				603					1,420				2,089
ATM/Debit card income			406				405				349					1,144				946
Bank owned life insurance income			199				209				201					604				526
Gain on disposition of investment securities			—				—				—					—				69
Gain on loans sold			45				165				873					779				1,185
Loan related derivative income			390				567				292					1,628				1,137
Other income			375				453				590					1,283				1,085
Total noninterest income			11,115				10,906				10,933					32,870				28,723
Noninterest expense
Salaries and employee benefits			16,404				16,462				15,744					48,912				42,302
Occupancy and equipment			3,303				3,503				3,676					10,382				9,421
Data processing			2,052				2,179				2,084					6,265				5,601
Professional services			1,468				1,297				1,151					4,037				3,108
Marketing			608				953				420					2,024				1,162
FDIC insurance			305				261				313					902				810
Non-operating expenses			787				—				1,168					787				5,787
Other expenses			597				618				889					1,707				2,767
Total noninterest expense			25,524				25,273				25,445					75,016				70,958
Income before income taxes			17,926				18,915				18,450					55,083				25,486
Income tax expense			4,607				4,971				5,021					14,321				6,542
Net income		$	13,319				13,944				13,429				$	40,762			$	18,944
Share data:
Weighted average shares outstanding, basic			6,932,882				6,930,268				6,918,692					6,924,168				6,078,586
Weighted average shares outstanding, diluted			6,999,773				6,998,936				6,954,324					6,991,175				6,113,828
Basic earnings per share		$	1.91			$	2.00			$	1.94				$	5.86			$	3.11
Diluted earnings per share		$	1.89			$	1.98			$	1.93				$	5.80			$	3.09

 

 

CAMBRIDGE BANCORP AND SUBSIDIARIES MARGIN & YIELD ANALYSIS
		Three Months Ended
		September 30, 2021												June 30, 2021												September 30, 2020
		Average Balance				Interest Income/ Expenses (1)				Rate Earned/ Paid (1)				Average Balance				Interest Income/ Expenses (1)				Rate Earned/ Paid (1)				Average Balance				Interest Income/ Expenses (1)				Rate Earned/ Paid (1)
		(dollars in thousands)
ASSETS
Interest-earning assets
Loans (2)
Taxable		$	3,242,476			$	30,093				3.68	%		$	3,195,077			$	30,557				3.84	%		$	3,288,304			$	34,468				4.17	%
Tax-exempt			45,228				448				3.93				33,039				348				4.22				18,940				307				6.45
Securities available for    sale (3)
Taxable			213,542				660				1.23				218,230				651				1.20				129,957				524				1.60
Securities held to maturity
Taxable			459,940				1,842				1.59				343,380				1,372				1.60				147,771				880				2.37
Tax-exempt			105,672				850				3.19				102,650				801				3.13				90,698				799				3.50
Cash and cash equivalents			113,511				28				0.10				132,964				28				0.08				67,056				8				0.05
Total interest-earning    assets (4)			4,180,369				33,921				3.22	%			4,025,340				33,757				3.36	%			3,742,726				36,986				3.93	%
Non-interest-earning    assets			252,201												251,641												281,910
Allowance for credit losses			(35,302)												(36,183)												(33,872)
Total assets		$	4,397,268											$	4,240,798											$	3,990,764
LIABILITIES AND    SHAREHOLDERS'    EQUITY
Interest-bearing deposits
Checking accounts		$	685,731			$	63				0.04	%		$	671,424			$	51				0.03	%		$	577,294			$	164				0.11	%
Savings accounts			949,487				198				0.08				959,606				174				0.07				963,253				565				0.23
Money market accounts			794,081				613				0.31				706,100				467				0.27				435,417				245				0.22
Certificates of deposit			201,944				212				0.42				218,738				314				0.58				333,366				380				0.45
Total interest-bearing    deposits			2,631,243				1,086				0.16				2,555,868				1,006				0.16				2,309,330				1,354				0.23
Subordinated debt			—				—				—				—				—				—				9,936				189				7.57
Other borrowed funds			17,005				147				3.43				18,288				141				3.09				177,423				376				0.84
Total interest-bearing    liabilities			2,648,248				1,233				0.18	%			2,574,156				1,147				0.18	%			2,496,689				1,919				0.31	%
Non-interest-bearing    liabilities
Demand deposits			1,219,288												1,156,854												986,590
Other liabilities			105,846												97,515												119,762
Total liabilities			3,973,382												3,828,525												3,603,041
Shareholders' equity			423,886												412,273												387,723
Total liabilities &    shareholders'    equity		$	4,397,268											$	4,240,798											$	3,990,764
Net interest income on a    fully taxable equivalent    basis							32,688												32,610												35,067
Less taxable equivalent    adjustment							(274)												(241)												(232)
Net interest income						$	32,414											$	32,369											$	34,835
Net interest spread (5)											3.03	%											3.18	%											3.63	%
Net interest margin (6)											3.10	%											3.25	%											3.73	%

(1)	Annualized on a fully taxable equivalent basis calculated using a federal tax rate of 21% in 2021 and 2020.
(2)	Nonaccrual loans are included in average amounts outstanding.
(3)	Average balances of securities available for sale calculated utilizing amortized cost.
(4)	Federal Home Loan Bank stock balance is excluded from interest-earning assets and associated dividend income is excluded from interest income.
(5)	Net interest spread represents the difference between the weighted average yield on interest-earning assets, inclusive of PPP loans originated during 2020 and 2021, and the weighted average cost of interest-bearing liabilities.
(6)	Net interest margin represents net interest income on a fully tax equivalent basis as a percentage of average interest-earning assets, inclusive of PPP loans originated during 2020 and 2021.

 

 

CAMBRIDGE BANCORP AND SUBSIDIARIES MARGIN & YIELD ANALYSIS
		Nine Months Ended
		September 30, 2021												September 30, 2020
		Average Balance				Interest Income/ Expenses (1)				Rate Earned/ Paid (1)				Average Balance				Interest Income/ Expenses (1)				Rate Earned/ Paid (1)
		(dollars in thousands)
ASSETS
Interest-earning assets
Loans (2)
Taxable		$	3,193,657			$	90,975				3.81	%		$	2,719,965			$	85,936				4.22	%
Tax-exempt			34,918				1,077				4.12				21,175				825				5.20
Securities available for sale (3)
Taxable			220,429				2,004				1.22				126,433				1,742				1.84
Securities held to maturity
Taxable			330,011				4,106				1.66				158,506				2,906				2.45
Tax-exempt			103,569				2,484				3.21				86,275				2,313				3.58
Cash and cash equivalents			130,221				87				0.09				57,472				163				0.38
Total interest-earning assets (4)			4,012,805				100,733				3.36	%			3,169,826				93,885				3.96	%
Non-interest-earning assets			254,351												236,346
Allowance for credit losses			(35,822)												(25,221)
Total assets		$	4,231,334											$	3,380,951
LIABILITIES AND SHAREHOLDERS'    EQUITY
Interest-bearing deposits
Checking accounts		$	663,497			$	198				0.04	%		$	525,511			$	532				0.14	%
Savings accounts			962,067				644				0.09				922,835				2,797				0.40
Money market accounts			696,203				1,617				0.31				300,300				834				0.37
Certificates of deposit			219,876				908				0.55				250,796				1,716				0.91
Total interest-bearing deposits			2,541,643				3,367				0.18	%			1,999,442				5,879				0.39	%
Subordinated debt			—				—				—				4,421				253				7.64
Other borrowed funds			19,082				428				3.00				147,730				1,223				1.11
Total interest-bearing liabilities			2,560,725				3,795				0.20	%			2,151,593				7,355				0.46	%
Non-interest-bearing liabilities
Demand deposits			1,154,222												793,934
Other liabilities			102,705												99,168
Total liabilities			3,817,652												3,044,695
Shareholders' equity			413,682												336,256
Total liabilities & shareholders' equity		$	4,231,334											$	3,380,951
Net interest income on a fully taxable equivalent    basis							96,938												86,530
Less taxable equivalent adjustment							(749)												(659)
Net interest income						$	96,189											$	85,871
Net interest spread (5)											3.16	%											3.50	%
Net interest margin (6)											3.23	%											3.65	%

(1)	Annualized on a fully taxable equivalent basis calculated using a federal tax rate of 21% in 2021 and 2020.
(2)	Nonaccrual loans are included in average amounts outstanding.
(3)	Average balances of securities available for sale calculated utilizing amortized cost.
(4)	Federal Home Loan Bank stock balance is excluded from interest-earning assets and associated dividend income is excluded from interest income.
(5)	Net interest spread represents the difference between the weighted average yield on interest-earning assets, inclusive of PPP loans originated during 2020 and 2021, and the weighted average cost of interest-bearing liabilities.
(6)	Net interest margin represents net interest income on a fully tax equivalent basis as a percentage of average interest-earning assets, inclusive of PPP loans originated during 2020 and 2021.

 

GAAP to Non-GAAP Reconciliations (dollars in thousands except per share data)

Statement on Non-GAAP Measures: The Company believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations and financial condition of the Company. Management uses non-GAAP financial measures in its analysis of the Company's performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

		Three Months Ended												Nine Months Ended
Operating Net Income / Operating Diluted Earnings Per Share		September 30, 2021				June 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
		(dollars in thousands, except share data)
Net Income (a GAAP measure)		$	13,319			$	13,944			$	13,429			$	40,762			$	18,944
Add: Merger expenses			—				—				1,168				—				5,787
Add: Gain on disposition of investment    securities			—				—				—				—				(69)
Add: Provision established for acquired    Wellesley loans			—				—				—				—				8,638
Add: Branch and office closure expenses			787				—				—				787				—
Tax effect of non-operating adjustments (1)			(219)				—				(280)				(219)				(3,772)
Operating Net Income (a non-GAAP    measure)		$	13,887			$	13,944			$	14,317			$	41,330			$	29,528
Less: Dividends and Undistributed Earnings    Allocated to Participating Securities (GAAP)			(65)				(67)				(19)				(186)				(22)
Operating Income Applicable to Common    Shareholders (a non-GAAP measure)		$	13,822			$	13,877			$	14,298			$	41,144			$	29,506
Weighted Average Diluted Shares			6,999,773				6,998,936				6,954,324				6,991,175				6,113,828
Operating Diluted Earnings Per Share    (a non-GAAP measure)		$	1.97			$	1.98			$	2.06			$	5.89			$	4.83

(1)	The net tax benefit associated with non-operating items is determined by assessing whether each non-operating item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.  The tax effect for prior quarters may have been updated to reflect the final tax deductibility.

 

 

		September 30, 2021				June 30, 2021				December 31, 2020				September 30, 2020
		(dollars in thousands)
Tangible Common Equity:
Shareholders' equity (GAAP)		$	427,577			$	419,501			$	401,732			$	393,073
Less: Goodwill and acquisition related intangibles (GAAP)			(54,619)				(54,709)				(54,889)				(54,980)
Tangible Common Equity (a non-GAAP measure)		$	372,958			$	364,792			$	346,843			$	338,093
Total assets (GAAP)		$	4,483,567			$	4,303,287			$	3,949,297			$	3,987,109
Less: Goodwill and acquisition related intangibles (GAAP)			(54,619)				(54,709)				(54,889)				(54,980)
Tangible assets (a non-GAAP measure)		$	4,428,948			$	4,248,578			$	3,894,408			$	3,932,129
Tangible Common Equity Ratio (a non-GAAP    measure)			8.42	%			8.59	%			8.91	%			8.60	%
Tangible Common Equity (excluding PPP loans):
Tangible Common Equity (a non-GAAP measure)		$	372,958			$	364,792			$	346,843			$	338,093
Tangible assets (a non-GAAP measure)		$	4,428,948			$	4,248,578			$	3,894,408			$	3,932,129
Less: PPP loans			(58,767)				(107,638)				(124,201)				(189,916)
Tangible assets (excluding PPP Loans) (a non-GAAP    measure)		$	4,370,181			$	4,140,940			$	3,770,207			$	3,742,213
Tangible Common Equity Ratio (excluding PPP Loans)    (a non-GAAP measure)			8.53	%			8.81	%			9.20	%			9.03	%
Tangible Book Value Per Share:
Tangible Common Equity (a non-GAAP measure)		$	372,958			$	364,792			$	346,843			$	338,093
Common shares outstanding			6,965,871				6,965,557				6,926,728				6,928,288
Tangible Book Value Per Share (a non-GAAP measure)		$	53.54			$	52.37			$	50.07			$	48.80

 

 

		Three Months Ended												Nine Months Ended
		September 30, 2021				June 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
		(dollars in thousands)
Efficiency Ratio: (1)
Noninterest expense		$	25,524			$	25,273			$	25,445			$	75,016			$	70,958
Net interest and dividend income		$	32,421			$	32,381			$	34,962			$	96,208			$	86,151
Total noninterest income			11,115				10,906				10,933				32,870				28,723
Total revenue		$	43,536			$	43,287			$	45,895			$	129,078			$	114,874
Efficiency Ratio			58.63	%			58.38	%			55.44	%			58.12	%			61.77	%
Operating Efficiency Ratio: (2)
Noninterest expense		$	25,524			$	25,273			$	25,445			$	75,016			$	70,958
Merger expenses (Pretax)			—				—				(1,168)				—				(5,787)
Branch and office closure expenses (Pretax)			(787)				—				—				(787)				—
Operating expense (a non-GAAP measure)		$	24,737			$	25,273			$	24,277			$	74,229			$	65,171
Total revenue		$	43,536			$	43,287			$	45,895			$	129,078			$	114,874
Add: Gain on disposition of investment    securities			—				—				—				—				(69)
Operating revenue (a non-GAAP measure)		$	43,536			$	43,287			$	45,895			$	129,078			$	114,805
Operating Efficiency Ratio (a non-GAAP measure)			56.82	%			58.38	%			52.90	%			57.51	%			56.77	%
		Three Months Ended												Nine Months Ended
		September 30, 2021				June 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
		(dollars in thousands)
Operating Return on Tangible Common Equity: (3)
Operating Net Income (a non-GAAP measure)		$	13,887			$	13,944			$	14,319			$	41,330			$	29,528
Average common equity		$	423,886			$	412,273			$	387,723			$	413,682			$	336,256
Average goodwill and merger related intangibles			(54,659)				(54,752)				(55,030)				(54,752)				(43,634)
Average tangible common equity (a non-GAAP measure)		$	369,227			$	357,521			$	332,693			$	358,930			$	292,622
Operating Return on Tangible Common Equity (a non-GAAP measure)			14.92	%			15.64	%			17.12	%			15.40	%			13.48	%
Operating Return on Average Assets: (4)
Operating Net Income (a non-GAAP measure)		$	13,887			$	13,944			$	14,319			$	41,330			$	29,528
Average assets		$	4,397,268			$	4,240,798			$	3,990,764			$	4,231,334			$	3,380,951
Operating Return on Average Assets (a non-GAAP measure)			1.25	%			1.32	%			1.43	%			1.31	%			1.17	%

 

 

		Three Months Ended												Nine Months Ended
		September 30, 2021				June 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
		(dollars in thousands)
Operating Pre-Tax Pre-Provision (PTPP) Income (5)
Income before income taxes (GAAP)		$	17,926			$	18,915			$	18,450			$	55,083			$	25,486
Add: Provision (Release) for Credit Losses (GAAP)			86				(901)				2,000				(1,021)				18,430
Add: Non-operating expenses (GAAP)			787				—				1,168				787				5,787
Add: Gain on disposition of investment securities (GAAP)			—				—				—				—				(69)
Operating PTPP Income (a non-GAAP measure)		$	18,799			$	18,014			$	21,618			$	54,849			$	49,634
Average assets			4,397,268				4,240,798				3,990,764				4,231,334				3,380,951
Operating PTPP Return on Average Assets (a non- GAAP measure)			1.70	%			1.70	%			2.16	%			1.73	%			1.96	%

(1)	The efficiency ratio represents noninterest expense as a percentage of the sum of net interest and dividend income and noninterest income.
(2)	Operating efficiency ratio represents operating expense as a percentage of operating revenue.
(3)	Operating return on tangible common equity represents operating net income as a percentage of average tangible common equity.
(4)	Operating return on average assets represents operating net income as a percentage of average assets.
(5)	Operating Pre-Tax Pre-Provision ("PTPP") Income represents income before income taxes adjusted for the provision for (release of) credit losses, non-operating expenses, and gain on disposition of investment securities as a percentage of average assets.

 

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SOURCE Cambridge Bancorp

FAQ

What is the net income reported by Cambridge Bancorp for Q3 2021?

Cambridge Bancorp reported a net income of $13.3 million for Q3 2021.

How much did diluted EPS change for CATC in Q3 2021?

Diluted EPS for CATC decreased to $1.89 in Q3 2021, down 4.5% from the previous quarter.

What was the net income for CATC for the nine months ended September 30, 2021?

The net income for CATC for the nine months ended September 30, 2021 was $40.8 million, an increase of 115.2% year-over-year.

How many branches did CATC close recently and what was the expense incurred?

CATC closed two branches and incurred $787,000 in expenses related to these closures.

What is the current net interest margin for CATC?

The net interest margin for CATC decreased to 3.10% for Q3 2021.