CAMBRIDGE, Mass., July 18,
2023 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC)
(the "Company"), the parent company of Cambridge Trust Company (the
"Bank"), today announced unaudited net income of $7.1 million for the three months ended
June 30, 2023, a decrease of $5.3
million, or 42.7%, as compared to net income of $12.4 million for the three months ended
March 31, 2023. Diluted earnings per
share were $0.91 for the three months
ended June 30, 2023, representing a decrease of $0.67, or 42.4%, as compared to diluted earnings
per share of $1.58 for the three
months ended March 31, 2023.
The results for the three months ended June 30, 2023
include non-operating items, namely merger related charges and as
detailed in the accounting principles generally accepted in
the United States of America
("GAAP") to non-GAAP reconciliations within this release. Excluding
these items, operating net income was $9.6
million for the three months ended June 30, 2023, a
decrease of $3.1 million, or 24.3%,
as compared to operating net income of $12.7
million for the three months ended March 31, 2023. Operating diluted earnings per
share were $1.23 for the three months
ended June 30, 2023, representing a decrease of $0.39, or 24.1%, as compared to operating diluted
earnings per share of $1.62 for the
three months ended March 31,
2023.
For the six months ended June 30, 2023, unaudited net
income was $19.5 million,
representing a decrease of $7.4
million, or 27.6%, as compared to net income of $27.0 million for the six months ended
June 30, 2022. Diluted earnings per share were $2.49 for the six months ended June 30,
2023, representing a 35.0% decrease as compared to diluted earnings
per share of $3.83 for the six months
ended June 30, 2022.
Operating net income was $22.4
million for the six months ended June 30, 2023, a
decrease of $4.4 million, or 16.4%,
as compared to operating net income of $26.7
million for the six months ended June 30, 2022.
Operating diluted earnings per share were $2.85 for the six months ended June 30,
2023, representing a 24.8% decrease as compared to operating
diluted earnings per share of $3.79
for the six months ended June 30, 2022.
"Following the industry turmoil earlier this year, we are now
focused on benefiting from the disruption in the markets by
acquiring new clients and talent. Specifically, we have hired four
skilled relationship bankers to focus on acquiring deposits in
Massachusetts and New Hampshire," noted Denis K. Sheahan, Chairman, President and CEO.
"In addition, I am pleased to welcome Jeffrey Smith, who is experienced in growing and
developing wealth management businesses, to lead the Wealth
Management division of Cambridge Trust."
Second Quarter 2023 Highlights:
- Financial performance ratios for the three months ended
June 30, 2023 were as follows:
-
- Return on Average Assets ("ROA") of 0.52% and Operating ROA of
0.70%.
- Return on Average Equity of 5.43% and Operating Return on
Tangible Common Shareholders' Equity ("ROTCE") of 8.51%.
- Deposits, excluding wholesale funds, totaled $4.09 billion at June 30,
2023 as compared to $4.13
billion at March 31,
2023.
- Asset quality at June 30, 2023
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.
- The common equity to assets ratio increased to 9.60% at
June 30, 2023 from 9.51% at
March 31, 2023. The tangible common
equity to tangible assets ratio increased to 8.41% at June 30, 2023 from 8.32% at March 31, 2023.
- Book value per share at June 30,
2023 increased to $67.17 from
$67.14 at March 31, 2023. Tangible book value per share at
June 30, 2023 increased to
$58.05 from $57.98 at March 31,
2023.
- Available sources of liquidity at June
30, 2023 totaled approximately $2.6
billion. This is approximately two times the amount of
uninsured deposits at June 30,
2023.
Balance Sheet
Total assets decreased by $39.0
million, or 0.7%, from $5.53
billion at March 31, 2023 to
$5.49 billion at June 30,
2023.
Total loans increased by $7.1
million, or 0.2%, from $4.02
billion at March 31, 2023 to
$4.03 billion at June 30,
2023.
- Residential real estate loans decreased by $14.6 million, from $1.63
billion at March 31, 2023 to
$1.62 billion at June 30, 2023.
- Commercial real estate loans increased by $10.1 million, from $1.91
billion at March 31, 2023 to
$1.92 billion at June 30, 2023.
- Home equity loans decreased by $5.7
million, from $101.7 million
at March 31, 2023 to $96.0 million at June 30,
2023.
- Commercial and industrial loans increased by $23.7 million, or 6.9%, from $343.7 million at March
31, 2023 to $367.4 million at
June 30, 2023, primarily due to
growth in Innovation Banking loans.
The Company's total investment securities portfolio decreased by
$31.3 million, or 2.6%, from
$1.18 billion at March 31, 2023 to $1.15
billion at June 30, 2023.
Total deposits, inclusive of wholesale deposits, decreased by
$214.2 million, or 4.6%, to
$4.44 billion at June 30, 2023,
as compared to $4.66 billion at
March 31, 2023, primarily due to
lower wholesale deposits. At June 30, 2023, excluding
wholesale deposits, total deposits decreased by $47.3 million, or 1.1%, from March 31, 2023.
- Total demand and interest-bearing checking on a combined basis
decreased by approximately $7.1
million, or less than 1%. The remaining decrease in
deposits, excluding wholesale deposits, was the result of lower
savings account balances.
- Certificates of deposit totaled $637.3
million at June 30, 2023,
representing a decrease of $114.8
million, or 15.3%, from $752.1
million at March 31, 2023, due
to lower wholesale certificates of deposit. Total wholesale
certificates of deposit, which are included within certificates of
deposit, were $356.3 million and
$523.2 million at June 30, 2023 and March
31, 2023, respectively.
- The cost of total deposits was 1.78% for the three months ended
June 30, 2023, as compared to 1.36%
for the three months ended March 31,
2023. The cost of total deposits excluding wholesale
deposits was 1.52% for the three months ended June 30, 2023, as compared to 1.01% for the three
months ended March 31, 2023. At
June 30, 2023, the spot cost of
non-wholesale deposits was 1.66%, as compared to 1.28% at
March 31, 2023.
Borrowings totaled $408.9 million
at June 30, 2023, representing a $167.9
million increase from $241.0
million at March 31, 2023, as
the Company utilized Federal Home Loan Bank of Boston advances instead of wholesale
certificates of deposit during the quarter.
Net Interest and Dividend Income
Net interest and dividend income, before the provision for
credit losses, decreased by $4.5
million, or 13.1%, to $29.8
million for the three months ended June 30, 2023, from
$34.2 million for the three months
ended March 31, 2023. This was
primarily due to higher cost of funds, partially offset by an
increase in average earning assets and higher yields on earning
assets.
The Company's net interest margin on a fully taxable equivalent
basis decreased by 37 basis points to 2.26% for the three
months ended June 30, 2023, as compared to 2.63% for the
three months ended March 31, 2023, as
a result of higher funding costs.
Net interest and dividend income, before the provision for
credit losses, decreased by $2.0
million, or 3.1%, to $64.0
million for the six months ended June 30, 2023, from
$66.1 million for the six months
ended June 30, 2022. This was primarily due to higher cost of
funds, partially offset by an increase in average earning assets
and higher yields on earning assets.
The Company's net interest margin on a fully taxable equivalent
basis decreased by 36 basis points to 2.44% for the six months
ended June 30, 2023, as compared to 2.80% for the six
months ended June 30, 2022.
In order to provide greater disclosure of the impact of loan
related merger accounting, 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, the adjusted net interest margin, on a fully taxable
equivalent basis, for the three months ended June 30, 2023, was 2.21%, representing a 37 basis
point decrease from the adjusted net interest margin, on a fully
taxable equivalent basis, of 2.58% for the three months ended
March 31, 2023.
|
|
Three Months
Ended
|
|
|
|
June 30,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,263,377
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
29,674
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.26
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(670)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,263,377
|
|
|
$
|
29,004
|
|
|
|
2.21
|
%
|
Excluding the impact of merger related loan accretion, the
adjusted net interest margin, on a fully taxable equivalent basis,
for the six months ended June 30,
2023, was 2.39%, representing a 35 basis point decrease from
the adjusted net interest margin, on a fully taxable equivalent
basis, of 2.74% for the six months ended June 30, 2022.
|
|
Six Months
Ended
|
|
|
|
June 30,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,287,651
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
64,106
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.44
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(1,313)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,287,651
|
|
|
$
|
62,793
|
|
|
|
2.39
|
%
|
Provision for (Release of) Credit Losses
During the three months ended June 30, 2023, the Company
recorded a provision for credit losses of $80,000, as compared to a provision for credit
losses of $60,000 for the three
months ended March 31, 2023.
For the six months ended June 30, 2023, the Company
recorded a provision for credit losses of $140,000, as compared to a $412,000 release of credit losses for the six
months ended June 30, 2022.
Noninterest Income
Total noninterest income decreased by $686,000, or 6.4%, to $10.0 million for the three months ended
June 30, 2023, as compared to $10.7
million for the three months ended March 31, 2023. This change was primarily the
result of lower other income and lower loan related derivative
income, partially offset by higher wealth management revenue.
Noninterest income was 25.2% of total revenue for the three months
ended June 30, 2023.
- Other income decreased by $488,000, or 50.6%, to $476,000 for the three months ended June 30, 2023, as compared to $964,000 for the three months ended March 31, 2023, primarily due to income
associated with success fees of Innovation Banking loans and gains
recognized during the quarter ended March
31, 2023 on a community development fund investment, while
no such income was recognized during the quarter ended June 30, 2023.
- Loan related derivative income decreased by $241,000, to a loss of $7,000 for the three months ended June 30, 2023, as compared to $234,000 for the three months ended March 31, 2023, primarily as a result of lower
volume of loan related derivative transactions.
- Wealth management revenue increased by $139,000, or 1.8%, to $8.1
million for the three months ended June 30, 2023, as compared to $7.9 million for the three months ended
March 31, 2023. Wealth Management
Assets under Management and Administration were $4.4 billion at June 30,
2023, an increase of $92.0
million, or 2.2%, from $4.27
billion at March 31, 2023,
primarily due to positive returns in both the bond and equity
markets.
Total noninterest income decreased by $1.8 million, or 7.8%, to $20.7 million for the six months ended
June 30, 2023, as compared to $22.5
million for the six months ended June 30, 2022. This
change was primarily the result of lower bank owned life insurance
("BOLI") income, lower wealth management revenue, and lower other
income, partially offset by higher deposit account fees.
Noninterest income was 24.5% of total revenue for the six months
ended June 30, 2023.
- BOLI income decreased by $1.2
million, or 75.2%, to $379,000
for the six months ended June 30,
2023, as compared to $1.5
million for the six months ended June
30, 2022, primarily due to a gain related to a death benefit
claim and a policy surrender that occurred during the six months
ended June 30, 2022, while no such
benefit claims or policy surrenders occurred during the six months
ended June 30, 2023.
- Wealth management revenue decreased by $683,000, or 4.1%, to $16.0 million for the six months ended
June 30, 2023, as compared to
$16.7 million for the six months
ended June 30, 2022, primarily due to
the effect of lower wealth management assets in the first half of
2023 as compared to the comparative period in 2022. Wealth
Management Assets under Management and Administration were
$4.4 billion at June 30, 2023, an increase of $299.5 million, or 7.4%, from $4.1 billion at December
31, 2022, primarily due to positive returns in both the bond
and equity markets.
- Other income decreased by $354,000, or 19.7%, to $1.4 million for the six months ended
June 30, 2023, as compared to
$1.8 million for the six months ended
June 30, 2022, primarily due to lower
income associated with success fees of Innovation Banking loans
recognized during the six months ended June
30, 2023 as compared to the six months ended June 30, 2022.
- Deposit account fees increased by $509,000, or 41.1%, to $1.7 million for the six months ended
June 30, 2023, as compared to
$1.2 million for the six months ended
June 30, 2022, primarily due to
increased fee revenue from commercial deposit sweep products as a
result of higher interest rates.
Noninterest Expense
Total noninterest expense increased by $2.0 million, or 7.1%, to $30.3 million for the three months ended
June 30, 2023, as compared to $28.3
million for the three months ended March 31, 2023. During the three months
ended June 30, 2023, there was an increase in non-operating
expenses and FDIC insurance, partially offset by a decrease in
salary and benefits expense and professional fees, as compared to
the three months ended March 31,
2023.
- Non-operating expense increased by $3.1
million, to $3.5 million for
the three months ended June 30, 2023,
from $424,000 for the three months
ended March 31, 2023, primarily due
to Northmark Bank ("Northmark") merger related expenses associated
with the systems conversion that occurred during the second quarter
of 2023.
- Salary and employee benefits expense decreased by $1.5 million, or 8.1%, to $17.0 million for the three months ended
June 30, 2023, from $18.5 million for the three months ended
March 31, 2023, primarily due to
lower variable based compensation and lower staffing levels
combined with the seasonality of employee benefits expenses.
- Professional fees decreased by $260,000, or 23.2%, to $863,000 for the three months ended June 30, 2023, from $1.1
million for the three months ended March 31, 2023, primarily due to lower legal fees
and employment agency fees.
Total noninterest expense increased by $6.5 million, or 12.5%, to $58.7 million for the six months ended
June 30, 2023, as compared to $52.2
million for the six months ended June 30, 2022,
primarily driven by an increase in non-operating expenses, salary
and benefits expense, and marketing expenses as compared to the six
months ended June 30, 2022.
- Non-operating expense increased by $3.7
million to $3.9 million for
the six months ended June 30, 2023,
from $246,000 for the six months
ended June 30, 2022, primarily due to
merger related expenses associated with the Northmark systems
conversion.
- Salary and employee benefits expense increased by $1.0 million, or 3.0%, to $35.5 million for the six months ended
June 30, 2023, from $34.4 million for the six months ended
June 30, 2022, primarily due to
higher overall staffing levels associated with the Northmark
merger, normal merit increases, and increases in employee benefit
costs.
- Marketing expense increased by $642,000, or 145.2%, to $1.1 million for the six months ended
June 30, 2023, from $442,000 for the six months ended June 30, 2022, primarily due to the timing of
marketing spend.
Asset Quality
Non-performing loans totaled $7.2
million, or 0.18% of total loans outstanding at
June 30, 2023, consistent with the level seen as of
March 31, 2023. The allowance for
credit losses was $38.1 million, or
0.95% of total loans outstanding at June 30, 2023, as compared
to $38.0 million, or 0.95% of total
loans outstanding at March 31,
2023.
The Company recorded net loan charge-offs of $12,000, or 0.00% of total loans (annualized),
for the three months ended June 30, 2023, as compared to net
loan recoveries of $6,000, or 0.00%
of total loans (annualized), for the three months ended
March 31, 2023.
The Company recorded net loan charge-offs of $6,000, or 0.00% of total loans (annualized), for
the six months ended June 30, 2023, as compared to net loan
recoveries of $27,000, or 0.00% of
total loans (annualized), for the six months ended June 30,
2022.
The following table shows additional and historical information
regarding non-performing assets and early-stage delinquency (30-89
days delinquent):
|
|
Non-performing
Assets
|
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
June 30,
2022
|
|
|
|
(dollars in
thousands)
|
|
Non-performing
assets
|
|
$
|
7,199
|
|
|
$
|
7,262
|
|
|
$
|
6,542
|
|
$
|
12,421
|
|
Non-performing
loans/total loans
|
|
|
0.18
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
0.35
|
%
|
Non-performing
assets/total assets
|
|
|
0.13
|
%
|
|
|
0.13
|
%
|
|
|
0.12
|
%
|
|
0.12
|
%
|
|
|
Additional Asset
Quality Indicators
|
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans 30-89
days past due/total loans
|
|
|
0.51
|
%
|
|
|
0.39
|
%
|
|
|
0.36
|
%
|
|
0.19
|
%
|
Quarterly net
recoveries (charge-offs)/total loans (annualized)
|
|
|
(0.00)
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
0.00
|
%
|
Year to date net
recoveries (charge-offs)/total loans
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
0.00
|
%
|
Allowance for credit
losses/nonperforming loans
|
|
|
528.86
|
%
|
|
|
523.35
|
%
|
|
|
577.41
|
%
|
|
274.73
|
%
|
Allowance for credit
losses/total loans
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
0.97
|
%
|
Income Taxes
The Company's effective tax rate was 24.0% for the three months
ended June 30, 2023, as compared to 25.1% for the three months
ended March 31, 2023. For the six
months ended June 30, 2023, the Company's effective tax rate
was 24.7%, as compared to 26.7% for the six months ended
June 30, 2022.
Dividend and Capital
On July 17, 2023, the Company's
Board of Directors declared a quarterly cash dividend of
$0.67 per share, which is payable on
August 17, 2023, to shareholders of
record as of the close of business on August
3, 2023. The Company did not repurchase any shares under its
previously announced share repurchase program during the three and
six months ended June 30, 2023.
The Company's common equity to assets ratio increased to 9.60%
at June 30, 2023, from 9.51% at March
31, 2023. The ratio of tangible common equity to tangible
assets increased to 8.41% at June 30, 2023 from 8.32% at
March 31, 2023.
Book value per share at June 30, 2023 increased to
$67.17 from $67.14 at March 31,
2023. Tangible book value per share at June 30, 2023
increased to $58.05 from $57.98 at March 31,
2023.
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 details regarding the Company's loan portfolio,
liquidity position, and other financial disclosures. Click here to
download.
The Company will also conduct a conference call/webcast at
11:00 a.m. Eastern Time on Tuesday,
July 18, 2023, 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/10178703/f95c2786ad.
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 the
Company's investor relations website at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=xSN1RhIq.
About Cambridge Bancorp
Cambridge Bancorp, the parent company of Cambridge Trust
Company, is based in Cambridge,
Massachusetts. Cambridge Trust Company is a 133-year-old
Massachusetts chartered commercial
bank with approximately $5.49 billion
in assets at June 30, 2023, and a total of 22 Massachusetts
and New Hampshire locations.
Cambridge Trust Company is one of New England's leaders in private
banking and wealth management with $4.4
billion in client assets under management and administration
at June 30, 2023. 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, and the impact of any laws or regulations
applicable to the Company. 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 businesses of
Cambridge Bancorp and Northmark may not be combined successfully,
or such combination may take longer to accomplish than expected;
the cost savings from the merger may not be fully realized or may
take longer to realize than expected; operating costs, customer
loss and business disruption following the merger, including
adverse effects on relationships with employees, may be greater
than expected; changes to interest rates; the ability to control
costs and expenses; 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
impact of the COVID-19 pandemic and actions taken in response to
the pandemic on consumer confidence and 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; disruptions in the Company's ability to access the
capital markets; effects of changes in amounts of deposits on the
Company's funding costs and net interest margin; changes in
non-performing assets; future provisions for credit losses; 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,
2022, which the Company filed on March 16, 2023. 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 GAAP. This information
includes operating net income and operating diluted earnings per
share, tangible book value per share and the tangible common equity
ratio, operating return on average assets, operating return on
tangible common equity, and operating efficiency ratio.
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, and 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). 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
accordance with generally accepted 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
Joseph P. Sapienza
Interim Chief Financial Officer
617-520-5520
CAMBRIDGE BANCORP
AND SUBSIDIARIES
QUARTERLY UNAUDITED
RESULTS
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
March
31,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share data)
|
|
Interest and Dividend
Income
|
|
$
|
54,144
|
|
|
$
|
51,742
|
|
|
$
|
36,279
|
|
|
$
|
105,886
|
|
|
$
|
70,177
|
|
Interest
Expense
|
|
|
24,383
|
|
|
|
17,494
|
|
|
|
2,098
|
|
|
|
41,877
|
|
|
|
4,127
|
|
Net Interest and
Dividend Income
|
|
|
29,761
|
|
|
|
34,248
|
|
|
|
34,181
|
|
|
|
64,009
|
|
|
|
66,050
|
|
Provision for (Release
of) Credit Losses
|
|
|
80
|
|
|
|
60
|
|
|
|
—
|
|
|
|
140
|
|
|
|
(412)
|
|
Noninterest
Income
|
|
|
10,029
|
|
|
|
10,715
|
|
|
|
11,149
|
|
|
|
20,744
|
|
|
|
22,503
|
|
Noninterest
Expense
|
|
|
30,345
|
|
|
|
28,328
|
|
|
|
26,297
|
|
|
|
58,673
|
|
|
|
52,172
|
|
Income Before Income
Taxes
|
|
|
9,365
|
|
|
|
16,575
|
|
|
|
19,033
|
|
|
|
25,940
|
|
|
|
36,793
|
|
Income Tax
Expense
|
|
|
2,250
|
|
|
|
4,159
|
|
|
|
5,375
|
|
|
|
6,409
|
|
|
|
9,819
|
|
Net
Income
|
|
$
|
7,115
|
|
|
$
|
12,416
|
|
|
$
|
13,658
|
|
|
$
|
19,531
|
|
|
$
|
26,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net
Income*
|
|
$
|
9,630
|
|
|
$
|
12,722
|
|
|
$
|
13,420
|
|
|
$
|
22,352
|
|
|
$
|
26,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share
|
|
$
|
0.91
|
|
|
$
|
1.59
|
|
|
$
|
1.95
|
|
|
$
|
2.50
|
|
|
$
|
3.86
|
|
Diluted Earnings
Per Share
|
|
|
0.91
|
|
|
|
1.58
|
|
|
|
1.94
|
|
|
|
2.49
|
|
|
|
3.83
|
|
Operating Diluted
Earnings Per Share*
|
|
|
1.23
|
|
|
|
1.62
|
|
|
|
1.90
|
|
|
|
2.85
|
|
|
|
3.79
|
|
Dividends
Declared Per Share
|
|
|
0.67
|
|
|
|
0.67
|
|
|
|
0.64
|
|
|
|
1.34
|
|
|
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,837,708
|
|
|
|
7,792,474
|
|
|
|
6,981,907
|
|
|
|
7,816,611
|
|
|
|
6,959,856
|
|
Diluted
|
|
|
7,854,955
|
|
|
|
7,826,162
|
|
|
|
7,026,807
|
|
|
|
7,842,106
|
|
|
|
7,013,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin, FTE
|
|
|
2.26
|
%
|
|
|
2.63
|
%
|
|
|
2.86
|
%
|
|
|
2.44
|
%
|
|
|
2.80
|
%
|
Adjusted Net
Interest Margin, FTE
|
|
|
2.21
|
%
|
|
|
2.58
|
%
|
|
|
2.81
|
%
|
|
|
2.39
|
%
|
|
|
2.74
|
%
|
Cost of
Funds
|
|
|
1.86
|
%
|
|
|
1.34
|
%
|
|
|
0.17
|
%
|
|
|
1.60
|
%
|
|
|
0.17
|
%
|
Cost of
Interest-Bearing Liabilities
|
|
|
2.62
|
%
|
|
|
1.96
|
%
|
|
|
0.28
|
%
|
|
|
2.30
|
%
|
|
|
0.27
|
%
|
Cost of
Deposits
|
|
|
1.78
|
%
|
|
|
1.36
|
%
|
|
|
0.17
|
%
|
|
|
1.56
|
%
|
|
|
0.17
|
%
|
Cost of Deposits
excluding Wholesale Deposits
|
|
|
1.52
|
%
|
|
|
1.01
|
%
|
|
|
0.17
|
%
|
|
|
1.26
|
%
|
|
|
0.17
|
%
|
Return on Average
Assets
|
|
|
0.52
|
%
|
|
|
0.91
|
%
|
|
|
1.09
|
%
|
|
|
0.71
|
%
|
|
|
1.09
|
%
|
Return on Average
Equity
|
|
|
5.43
|
%
|
|
|
9.68
|
%
|
|
|
12.55
|
%
|
|
|
7.53
|
%
|
|
|
12.46
|
%
|
Efficiency
Ratio*
|
|
|
76.26
|
%
|
|
|
63.00
|
%
|
|
|
58.01
|
%
|
|
|
69.23
|
%
|
|
|
58.92
|
%
|
Operating Return
on Average Assets*
|
|
|
0.70
|
%
|
|
|
0.93
|
%
|
|
|
1.07
|
%
|
|
|
0.82
|
%
|
|
|
1.08
|
%
|
Operating Return
on Tangible Common Equity*
|
|
|
8.51
|
%
|
|
|
11.52
|
%
|
|
|
14.08
|
%
|
|
|
9.99
|
%
|
|
|
14.11
|
%
|
Operating
Efficiency Ratio*
|
|
|
67.49
|
%
|
|
|
62.06
|
%
|
|
|
58.97
|
%
|
|
|
64.61
|
%
|
|
|
59.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
June
30,
|
|
|
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
|
|
(dollars in
thousands, except per share data)
|
|
|
|
|
Total Assets
|
|
$
|
5,489,622
|
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
|
$
|
5,057,935
|
|
|
|
|
Total Loans
|
|
$
|
4,025,226
|
|
|
$
|
4,018,082
|
|
|
|
4,062,856
|
|
|
$
|
3,523,492
|
|
|
|
|
Total
Deposits
|
|
$
|
4,442,590
|
|
|
$
|
4,656,776
|
|
|
|
4,815,376
|
|
|
$
|
4,264,057
|
|
|
|
|
Allowance for Credit
Losses
|
|
$
|
38,073
|
|
|
$
|
38,005
|
|
|
|
37,774
|
|
|
$
|
34,124
|
|
|
|
|
Allowance to Total
Loans
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
0.97
|
%
|
|
|
|
Non-Performing
Loans
|
|
$
|
7,199
|
|
|
$
|
7,262
|
|
|
$
|
6,542
|
|
|
$
|
5,879
|
|
|
|
|
Non-Performing
Loans/Total Loans
|
|
|
0.18
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.17
|
%
|
|
|
|
QTD Net Recoveries
(Charge-offs) to Total Loans (annualized)
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
|
Tangible Common Equity
Ratio*
|
|
|
8.41
|
%
|
|
|
8.32
|
%
|
|
|
8.12
|
%
|
|
|
7.75
|
%
|
|
|
|
Book Value Per
Share
|
|
$
|
67.17
|
|
|
$
|
67.14
|
|
|
$
|
66.38
|
|
|
$
|
63.09
|
|
|
|
|
Tangible Book Value Per
Share*
|
|
$
|
58.05
|
|
|
$
|
57.98
|
|
|
$
|
57.15
|
|
|
$
|
55.33
|
|
|
|
|
Wealth Management
AUM
|
|
$
|
4,099,169
|
|
|
$
|
4,005,805
|
|
|
|
3,875,747
|
|
|
$
|
3,844,993
|
|
|
|
|
Wealth Management AUM
& AUA
|
|
$
|
4,359,335
|
|
|
$
|
4,267,343
|
|
|
|
4,059,819
|
|
|
$
|
4,016,328
|
|
|
|
|
* See GAAP to
Non-GAAP Reconciliations
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
UNAUDITED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands, except share information)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
33,398
|
|
|
$
|
70,766
|
|
|
$
|
30,719
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
Available for sale, at
fair value (amortized cost $172,568, 178,183 and $182,027,
respectively)
|
|
|
144,306
|
|
|
|
152,183
|
|
|
|
153,416
|
|
Held to maturity, at
amortized cost (fair value $839,025, 879,323 and $885,586,
respectively)
|
|
|
1,007,471
|
|
|
|
1,030,858
|
|
|
|
1,051,997
|
|
Total investment
securities
|
|
|
1,151,777
|
|
|
|
1,183,041
|
|
|
|
1,205,413
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
1,617,194
|
|
|
|
1,631,751
|
|
|
|
1,648,838
|
|
Commercial
mortgage
|
|
|
1,916,159
|
|
|
|
1,906,018
|
|
|
|
1,914,423
|
|
Home equity
|
|
|
95,975
|
|
|
|
101,715
|
|
|
|
111,351
|
|
Commercial and
industrial
|
|
|
367,403
|
|
|
|
343,686
|
|
|
|
350,650
|
|
Consumer
|
|
|
28,495
|
|
|
|
34,912
|
|
|
|
37,594
|
|
Total loans
|
|
|
4,025,226
|
|
|
|
4,018,082
|
|
|
|
4,062,856
|
|
Less: allowance for
credit losses on loans
|
|
|
(38,073)
|
|
|
|
(38,005)
|
|
|
|
(37,774)
|
|
Net loans
|
|
|
3,987,153
|
|
|
|
3,980,077
|
|
|
|
4,025,082
|
|
Federal Home Loan Bank
of Boston Stock, at cost
|
|
|
20,247
|
|
|
|
12,172
|
|
|
|
6,264
|
|
Bank owned life
insurance
|
|
|
34,866
|
|
|
|
34,674
|
|
|
|
34,484
|
|
Banking premises and
equipment, net
|
|
|
22,654
|
|
|
|
22,941
|
|
|
|
23,297
|
|
Right-of-use asset
operating leases
|
|
|
23,111
|
|
|
|
23,855
|
|
|
|
25,098
|
|
Deferred income taxes,
net
|
|
|
15,841
|
|
|
|
14,598
|
|
|
|
17,990
|
|
Accrued interest
receivable
|
|
|
14,573
|
|
|
|
14,129
|
|
|
|
14,118
|
|
Goodwill
|
|
|
64,539
|
|
|
|
64,539
|
|
|
|
64,539
|
|
Merger-related
intangibles, net
|
|
|
6,996
|
|
|
|
7,219
|
|
|
|
7,443
|
|
Other assets
|
|
|
114,467
|
|
|
|
100,573
|
|
|
|
105,290
|
|
Total
assets
|
|
$
|
5,489,622
|
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
1,059,563
|
|
|
$
|
1,166,643
|
|
|
$
|
1,366,395
|
|
Interest-bearing
checking
|
|
|
1,171,164
|
|
|
|
1,071,165
|
|
|
|
908,961
|
|
Money
market
|
|
|
981,304
|
|
|
|
998,465
|
|
|
|
1,162,773
|
|
Savings
|
|
|
593,210
|
|
|
|
668,385
|
|
|
|
790,628
|
|
Certificates of
deposit
|
|
|
637,349
|
|
|
|
752,118
|
|
|
|
586,619
|
|
Total
deposits
|
|
|
4,442,590
|
|
|
|
4,656,776
|
|
|
|
4,815,376
|
|
Borrowings
|
|
|
408,926
|
|
|
|
240,997
|
|
|
|
105,212
|
|
Operating lease
liabilities
|
|
|
25,376
|
|
|
|
26,082
|
|
|
|
27,413
|
|
Other
liabilities
|
|
|
85,726
|
|
|
|
78,780
|
|
|
|
94,184
|
|
Total
liabilities
|
|
|
4,962,618
|
|
|
|
5,002,635
|
|
|
|
5,042,185
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Common stock, par value
$1.00; Authorized: 10,000,000 shares; Outstanding: 7,845,868
shares, 7,833,997 shares and 7,796,440 shares,
respectively
|
|
|
7,846
|
|
|
|
7,834
|
|
|
|
7,796
|
|
Additional paid-in
capital
|
|
|
293,500
|
|
|
|
292,250
|
|
|
|
293,186
|
|
Retained
earnings
|
|
|
246,428
|
|
|
|
244,561
|
|
|
|
237,369
|
|
Accumulated other
comprehensive loss
|
|
|
(20,770)
|
|
|
|
(18,696)
|
|
|
|
(20,799)
|
|
Total shareholders'
equity
|
|
|
527,004
|
|
|
|
525,949
|
|
|
|
517,552
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,489,622
|
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
March
31,
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share amounts)
|
|
Interest and dividend
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on taxable
loans
|
|
$
|
47,731
|
|
|
$
|
45,333
|
|
|
$
|
30,235
|
|
|
|
$
|
93,064
|
|
|
$
|
58,639
|
|
Interest on tax-exempt
loans
|
|
|
382
|
|
|
|
376
|
|
|
|
354
|
|
|
|
|
758
|
|
|
|
704
|
|
Interest on taxable
investment securities
|
|
|
4,957
|
|
|
|
5,050
|
|
|
|
4,989
|
|
|
|
|
10,007
|
|
|
|
9,400
|
|
Interest on tax-exempt
investment securities
|
|
|
570
|
|
|
|
585
|
|
|
|
627
|
|
|
|
|
1,155
|
|
|
|
1,281
|
|
Dividends on FHLB of
Boston stock
|
|
|
340
|
|
|
|
72
|
|
|
|
32
|
|
|
|
|
412
|
|
|
|
57
|
|
Interest on overnight
investments
|
|
|
164
|
|
|
|
326
|
|
|
|
42
|
|
|
|
|
490
|
|
|
|
96
|
|
Total interest and
dividend income
|
|
|
54,144
|
|
|
|
51,742
|
|
|
|
36,279
|
|
|
|
|
105,886
|
|
|
|
70,177
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
20,040
|
|
|
|
15,944
|
|
|
|
1,844
|
|
|
|
|
35,984
|
|
|
|
3,740
|
|
Interest on borrowed
funds
|
|
|
4,343
|
|
|
|
1,550
|
|
|
|
254
|
|
|
|
|
5,893
|
|
|
|
387
|
|
Total interest
expense
|
|
|
24,383
|
|
|
|
17,494
|
|
|
|
2,098
|
|
|
|
|
41,877
|
|
|
|
4,127
|
|
Net interest and
dividend income
|
|
|
29,761
|
|
|
|
34,248
|
|
|
|
34,181
|
|
|
|
|
64,009
|
|
|
|
66,050
|
|
Provision for (Release
of) credit losses
|
|
|
80
|
|
|
|
60
|
|
|
|
—
|
|
|
|
|
140
|
|
|
|
(412)
|
|
Net interest and
dividend income after provision for (release of) credit
losses
|
|
|
29,681
|
|
|
|
34,188
|
|
|
|
34,181
|
|
|
|
|
63,869
|
|
|
|
66,462
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
revenue
|
|
|
8,076
|
|
|
|
7,937
|
|
|
|
8,122
|
|
|
|
|
16,013
|
|
|
|
16,696
|
|
Deposit account
fees
|
|
|
878
|
|
|
|
869
|
|
|
|
732
|
|
|
|
|
1,747
|
|
|
|
1,238
|
|
ATM/Debit card
income
|
|
|
414
|
|
|
|
511
|
|
|
|
427
|
|
|
|
|
925
|
|
|
|
806
|
|
Bank owned life
insurance income
|
|
|
192
|
|
|
|
187
|
|
|
|
1,343
|
|
|
|
|
379
|
|
|
|
1,530
|
|
Gain on loans sold,
net
|
|
|
—
|
|
|
|
13
|
|
|
|
4
|
|
|
|
|
13
|
|
|
|
98
|
|
Loan related
derivative income (loss)
|
|
|
(7)
|
|
|
|
234
|
|
|
|
45
|
|
|
|
|
227
|
|
|
|
341
|
|
Other
income
|
|
|
476
|
|
|
|
964
|
|
|
|
476
|
|
|
|
|
1,440
|
|
|
|
1,794
|
|
Total noninterest
income
|
|
|
10,029
|
|
|
|
10,715
|
|
|
|
11,149
|
|
|
|
|
20,744
|
|
|
|
22,503
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
16,984
|
|
|
|
18,488
|
|
|
|
17,048
|
|
|
|
|
35,472
|
|
|
|
34,439
|
|
Occupancy and
equipment
|
|
|
3,571
|
|
|
|
3,747
|
|
|
|
3,613
|
|
|
|
|
7,318
|
|
|
|
7,155
|
|
Data
processing
|
|
|
2,602
|
|
|
|
2,641
|
|
|
|
2,601
|
|
|
|
|
5,243
|
|
|
|
5,246
|
|
Professional
services
|
|
|
863
|
|
|
|
1,123
|
|
|
|
1,070
|
|
|
|
|
1,986
|
|
|
|
2,134
|
|
Marketing
|
|
|
658
|
|
|
|
426
|
|
|
|
218
|
|
|
|
|
1,084
|
|
|
|
442
|
|
FDIC
insurance
|
|
|
768
|
|
|
|
379
|
|
|
|
472
|
|
|
|
|
1,147
|
|
|
|
927
|
|
Non-operating
expenses
|
|
|
3,491
|
|
|
|
424
|
|
|
|
246
|
|
|
|
|
3,915
|
|
|
|
246
|
|
Other
expenses
|
|
|
1,408
|
|
|
|
1,100
|
|
|
|
1,029
|
|
|
|
|
2,508
|
|
|
|
1,583
|
|
Total noninterest
expense
|
|
|
30,345
|
|
|
|
28,328
|
|
|
|
26,297
|
|
|
|
|
58,673
|
|
|
|
52,172
|
|
Income before income
taxes
|
|
|
9,365
|
|
|
|
16,575
|
|
|
|
19,033
|
|
|
|
|
25,940
|
|
|
|
36,793
|
|
Income tax
expense
|
|
|
2,250
|
|
|
|
4,159
|
|
|
|
5,375
|
|
|
|
|
6,409
|
|
|
|
9,819
|
|
Net income
|
|
$
|
7,115
|
|
|
$
|
12,416
|
|
|
$
|
13,658
|
|
|
|
$
|
19,531
|
|
|
$
|
26,974
|
|
Share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
7,837,708
|
|
|
|
7,792,474
|
|
|
|
6,981,907
|
|
|
|
|
7,816,611
|
|
|
|
6,959,856
|
|
Weighted average
shares outstanding, diluted
|
|
|
7,854,955
|
|
|
|
7,826,162
|
|
|
|
7,026,807
|
|
|
|
|
7,842,106
|
|
|
|
7,013,538
|
|
Basic earnings per
share
|
|
$
|
0.91
|
|
|
$
|
1.59
|
|
|
$
|
1.95
|
|
|
|
$
|
2.50
|
|
|
$
|
3.86
|
|
Diluted earnings per
share
|
|
$
|
0.91
|
|
|
$
|
1.58
|
|
|
$
|
1.94
|
|
|
|
$
|
2.49
|
|
|
$
|
3.83
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
MARGIN & YIELD
ANALYSIS
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
|
|
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
|
|
$
|
3,978,078
|
|
|
$
|
47,731
|
|
|
|
4.81
|
%
|
|
$
|
3,986,380
|
|
|
$
|
45,333
|
|
|
|
4.61
|
%
|
|
$
|
3,409,819
|
|
|
$
|
30,235
|
|
|
|
3.56
|
%
|
Tax-exempt
|
|
|
51,359
|
|
|
|
484
|
|
|
|
3.78
|
|
|
|
51,028
|
|
|
|
476
|
|
|
|
3.78
|
|
|
|
46,771
|
|
|
|
448
|
|
|
|
3.84
|
|
Securities available
for
sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
175,361
|
|
|
|
693
|
|
|
|
1.59
|
|
|
|
180,510
|
|
|
|
713
|
|
|
|
1.60
|
|
|
|
198,985
|
|
|
|
671
|
|
|
|
1.35
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
927,768
|
|
|
|
4,264
|
|
|
|
1.84
|
|
|
|
948,233
|
|
|
|
4,337
|
|
|
|
1.85
|
|
|
|
1,012,604
|
|
|
|
4,318
|
|
|
|
1.71
|
|
Tax-exempt
|
|
|
93,420
|
|
|
|
721
|
|
|
|
3.10
|
|
|
|
95,212
|
|
|
|
740
|
|
|
|
3.15
|
|
|
|
101,029
|
|
|
|
794
|
|
|
|
3.15
|
|
Cash and cash
equivalents
|
|
|
37,391
|
|
|
|
164
|
|
|
|
1.76
|
|
|
|
50,831
|
|
|
|
326
|
|
|
|
2.60
|
|
|
|
48,197
|
|
|
|
42
|
|
|
|
0.35
|
|
Total
interest-earning
assets (4)
|
|
|
5,263,377
|
|
|
|
54,057
|
|
|
|
4.12
|
%
|
|
|
5,312,194
|
|
|
|
51,925
|
|
|
|
3.96
|
%
|
|
|
4,817,405
|
|
|
|
36,508
|
|
|
|
3.04
|
%
|
Non-interest-earning
assets
|
|
|
270,384
|
|
|
|
|
|
|
|
|
|
268,670
|
|
|
|
|
|
|
|
|
|
232,165
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(38,099)
|
|
|
|
|
|
|
|
|
|
(37,784)
|
|
|
|
|
|
|
|
|
|
(34,368)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,495,662
|
|
|
|
|
|
|
|
|
$
|
5,543,080
|
|
|
|
|
|
|
|
|
$
|
5,015,202
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,150,334
|
|
|
$
|
4,985
|
|
|
|
1.74
|
%
|
|
$
|
880,040
|
|
|
$
|
2,025
|
|
|
|
0.93
|
%
|
|
$
|
743,030
|
|
|
$
|
50
|
|
|
|
0.03
|
%
|
Savings
accounts
|
|
|
624,749
|
|
|
|
1,469
|
|
|
|
0.94
|
|
|
|
771,219
|
|
|
|
1,357
|
|
|
|
0.71
|
|
|
|
899,820
|
|
|
|
181
|
|
|
|
0.08
|
|
Money market
accounts
|
|
|
970,828
|
|
|
|
7,292
|
|
|
|
3.01
|
|
|
|
1,129,934
|
|
|
|
6,462
|
|
|
|
2.32
|
|
|
|
1,203,020
|
|
|
|
1,531
|
|
|
|
0.51
|
|
Certificates of
deposit
|
|
|
633,722
|
|
|
|
6,294
|
|
|
|
3.98
|
|
|
|
692,644
|
|
|
|
6,100
|
|
|
|
3.57
|
|
|
|
129,060
|
|
|
|
82
|
|
|
|
0.25
|
|
Total
interest-bearing
deposits
|
|
|
3,379,633
|
|
|
|
20,040
|
|
|
|
2.38
|
|
|
|
3,473,837
|
|
|
|
15,944
|
|
|
|
1.86
|
|
|
|
2,974,930
|
|
|
|
1,844
|
|
|
|
0.25
|
|
Other borrowed
funds
|
|
|
346,755
|
|
|
|
4,343
|
|
|
|
5.02
|
|
|
|
137,516
|
|
|
|
1,550
|
|
|
|
4.57
|
|
|
|
56,734
|
|
|
|
254
|
|
|
|
1.80
|
|
Total
interest-bearing
liabilities
|
|
|
3,726,388
|
|
|
|
24,383
|
|
|
|
2.62
|
%
|
|
|
3,611,353
|
|
|
|
17,494
|
|
|
|
1.96
|
%
|
|
|
3,031,664
|
|
|
|
2,098
|
|
|
|
0.28
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,138,259
|
|
|
|
|
|
|
|
|
|
1,290,924
|
|
|
|
|
|
|
|
|
|
1,452,911
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
105,249
|
|
|
|
|
|
|
|
|
|
120,877
|
|
|
|
|
|
|
|
|
|
93,966
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,969,896
|
|
|
|
|
|
|
|
|
|
5,023,154
|
|
|
|
|
|
|
|
|
|
4,578,541
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
525,766
|
|
|
|
|
|
|
|
|
|
519,926
|
|
|
|
|
|
|
|
|
|
436,661
|
|
|
|
|
|
|
|
Total liabilities
&
shareholders'
equity
|
|
$
|
5,495,662
|
|
|
|
|
|
|
|
|
$
|
5,543,080
|
|
|
|
|
|
|
|
|
$
|
5,015,202
|
|
|
|
|
|
|
|
Net interest income on
a
fully taxable equivalent
basis
|
|
|
|
|
|
29,674
|
|
|
|
|
|
|
|
|
|
34,431
|
|
|
|
|
|
|
|
|
|
34,410
|
|
|
|
|
Less taxable
equivalent
adjustment
|
|
|
|
|
|
(253)
|
|
|
|
|
|
|
|
|
|
(255)
|
|
|
|
|
|
|
|
|
|
(261)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
29,421
|
|
|
|
|
|
|
|
|
$
|
34,176
|
|
|
|
|
|
|
|
|
$
|
34,149
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
2.00
|
%
|
|
|
|
|
|
|
|
|
2.76
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.26
|
%
|
|
|
|
|
|
|
|
|
2.63
|
%
|
|
|
|
|
|
|
|
|
2.86
|
%
|
(1)
|
Annualized on a fully
taxable equivalent basis calculated using a federal tax rate of 21%
in 2023 and 2022.
|
(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 Paycheck Protection Program
("PPP") loans outstanding during 2023 and 2022, 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 outstanding during 2023 and 2022.
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
MARGIN & YIELD
ANALYSIS
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
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
|
|
$
|
3,982,206
|
|
|
$
|
93,064
|
|
|
|
4.71
|
%
|
|
$
|
3,362,216
|
|
|
$
|
58,639
|
|
|
|
3.52
|
%
|
Tax-exempt
|
|
|
51,195
|
|
|
|
960
|
|
|
|
3.78
|
|
|
|
46,736
|
|
|
|
891
|
|
|
|
3.84
|
|
Securities available
for sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
177,921
|
|
|
|
1,407
|
|
|
|
1.59
|
|
|
|
201,078
|
|
|
|
1,321
|
|
|
|
1.32
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
937,944
|
|
|
|
8,600
|
|
|
|
1.85
|
|
|
|
975,034
|
|
|
|
8,079
|
|
|
|
1.67
|
|
Tax-exempt
|
|
|
94,311
|
|
|
|
1,462
|
|
|
|
3.13
|
|
|
|
102,922
|
|
|
|
1,622
|
|
|
|
3.18
|
|
Cash and cash
equivalents
|
|
|
44,074
|
|
|
|
490
|
|
|
|
2.24
|
|
|
|
97,811
|
|
|
|
96
|
|
|
|
0.20
|
|
Total interest-earning
assets (4)
|
|
|
5,287,651
|
|
|
|
105,983
|
|
|
|
4.04
|
%
|
|
|
4,785,797
|
|
|
|
70,648
|
|
|
|
2.98
|
%
|
Non-interest-earning
assets
|
|
|
269,531
|
|
|
|
|
|
|
|
|
|
235,499
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(37,943)
|
|
|
|
|
|
|
|
|
|
(34,573)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,519,239
|
|
|
|
|
|
|
|
|
$
|
4,986,723
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,015,934
|
|
|
$
|
7,011
|
|
|
|
1.39
|
%
|
|
$
|
753,808
|
|
|
$
|
94
|
|
|
|
0.03
|
%
|
Savings
accounts
|
|
|
697,579
|
|
|
|
2,826
|
|
|
|
0.82
|
|
|
|
911,430
|
|
|
|
358
|
|
|
|
0.08
|
|
Money market
accounts
|
|
|
1,049,941
|
|
|
|
13,753
|
|
|
|
2.64
|
|
|
|
1,195,141
|
|
|
|
3,101
|
|
|
|
0.52
|
|
Certificates of
deposit
|
|
|
663,020
|
|
|
|
12,394
|
|
|
|
3.77
|
|
|
|
136,545
|
|
|
|
187
|
|
|
|
0.28
|
|
Total interest-bearing
deposits
|
|
|
3,426,474
|
|
|
|
35,984
|
|
|
|
2.12
|
%
|
|
|
2,996,924
|
|
|
|
3,740
|
|
|
|
0.25
|
%
|
Other borrowed
funds
|
|
|
242,713
|
|
|
|
5,893
|
|
|
|
4.90
|
|
|
|
36,663
|
|
|
|
387
|
|
|
|
2.13
|
|
Total interest-bearing
liabilities
|
|
|
3,669,187
|
|
|
|
41,877
|
|
|
|
2.30
|
%
|
|
|
3,033,587
|
|
|
|
4,127
|
|
|
|
0.27
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,214,170
|
|
|
|
|
|
|
|
|
|
1,420,839
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
113,020
|
|
|
|
|
|
|
|
|
|
95,661
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,996,377
|
|
|
|
|
|
|
|
|
|
4,550,087
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
522,862
|
|
|
|
|
|
|
|
|
|
436,636
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,519,239
|
|
|
|
|
|
|
|
|
$
|
4,986,723
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent
basis
|
|
|
|
|
|
64,106
|
|
|
|
|
|
|
|
|
|
66,521
|
|
|
|
|
Less taxable equivalent
adjustment
|
|
|
|
|
|
(509)
|
|
|
|
|
|
|
|
|
|
(528)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
63,597
|
|
|
|
|
|
|
|
|
$
|
65,993
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.74
|
%
|
|
|
|
|
|
|
|
|
2.70
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.44
|
%
|
|
|
|
|
|
|
|
|
2.80
|
%
|
(1)
|
Annualized on a fully
taxable equivalent basis calculated using a federal tax rate of 21%
in 2023 and 2022.
|
(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 outstanding during
2023 and 2022, 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 outstanding during 2023 and 2022.
|
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
|
|
|
Six Months
Ended
|
|
Operating Net Income
/ Operating Diluted Earnings Per Share
|
|
June 30,
|
|
|
March
31,
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (a GAAP
measure)
|
|
$
|
7,115
|
|
|
$
|
12,416
|
|
|
|
$
|
13,658
|
|
|
$
|
19,531
|
|
|
$
|
26,974
|
|
Less: Death benefits
on bank owned life insurance ("BOLI") and policy
surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(1,157)
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Add: Merger and
contractual termination expenses
|
|
|
3,491
|
|
|
|
424
|
|
|
|
|
246
|
|
|
|
3,915
|
|
|
|
246
|
|
Less: Tax effect of
BOLI surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
|
736
|
|
|
|
—
|
|
|
|
736
|
|
Less: Tax effect of
non-operating expenses (1)
|
`
|
|
(976)
|
|
|
|
(118)
|
|
|
|
|
(63)
|
|
|
|
(1,094)
|
|
|
|
(63)
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,630
|
|
|
$
|
12,722
|
|
|
|
$
|
13,420
|
|
|
$
|
22,352
|
|
|
$
|
26,736
|
|
Less: Dividends and
Undistributed Earnings
Allocated to Participating Securities (a non-GAAP
measure)
|
|
|
(3)
|
|
|
|
(26)
|
|
|
|
|
(42)
|
|
|
|
(23)
|
|
|
|
(120)
|
|
Operating Net Income
Applicable to Common
Shareholders (a non-GAAP measure)
|
|
$
|
9,627
|
|
|
$
|
12,696
|
|
|
|
$
|
13,378
|
|
|
$
|
22,329
|
|
|
$
|
26,616
|
|
Weighted Average
Diluted Shares
|
|
|
7,854,955
|
|
|
|
7,826,162
|
|
|
|
|
7,026,807
|
|
|
|
7,842,106
|
|
|
|
7,013,538
|
|
Operating Diluted
Earnings Per Share
(a non-GAAP measure)
|
|
$
|
1.23
|
|
|
$
|
1.62
|
|
|
|
$
|
1.90
|
|
|
$
|
2.85
|
|
|
$
|
3.79
|
|
(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.
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
June 30,
2022
|
|
|
|
(dollars in
thousands)
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
|
527,004
|
|
|
$
|
525,949
|
|
|
$
|
517,552
|
|
|
$
|
442,051
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,535)
|
|
|
|
(71,758)
|
|
|
|
(71,982)
|
|
|
|
(54,348)
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
455,469
|
|
|
$
|
454,191
|
|
|
$
|
445,570
|
|
|
$
|
387,703
|
|
Total assets
(GAAP)
|
|
$
|
5,489,622
|
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
|
$
|
5,057,935
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,535)
|
|
|
|
(71,758)
|
|
|
|
(71,982)
|
|
|
|
(54,348)
|
|
Tangible assets (a
non-GAAP measure)
|
|
$
|
5,418,087
|
|
|
$
|
5,456,826
|
|
|
$
|
5,487,755
|
|
|
$
|
5,003,587
|
|
Tangible Common Equity
Ratio (a non-GAAP
measure)
|
|
|
8.41
|
%
|
|
|
8.32
|
%
|
|
|
8.12
|
%
|
|
|
7.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
455,469
|
|
|
$
|
454,191
|
|
|
$
|
445,570
|
|
|
$
|
387,703
|
|
Common shares
outstanding
|
|
|
7,845,868
|
|
|
|
7,833,997
|
|
|
|
7,796,440
|
|
|
|
7,007,063
|
|
Tangible Book Value
Per Share (a non-GAAP measure)
|
|
$
|
58.05
|
|
|
$
|
57.98
|
|
|
$
|
57.15
|
|
|
$
|
55.33
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
March
31,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Efficiency Ratio:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
30,345
|
|
|
$
|
28,328
|
|
|
$
|
26,297
|
|
|
$
|
58,673
|
|
|
$
|
52,172
|
|
Net interest and
dividend income
|
|
$
|
29,761
|
|
|
$
|
34,248
|
|
|
$
|
34,181
|
|
|
$
|
64,009
|
|
|
$
|
66,050
|
|
Total noninterest
income
|
|
|
10,029
|
|
|
|
10,715
|
|
|
|
11,149
|
|
|
|
20,744
|
|
|
|
22,503
|
|
Total
revenue
|
|
$
|
39,790
|
|
|
$
|
44,963
|
|
|
$
|
45,330
|
|
|
$
|
84,753
|
|
|
$
|
88,553
|
|
Efficiency
Ratio
|
|
|
76.26
|
%
|
|
|
63.00
|
%
|
|
|
58.01
|
%
|
|
|
69.23
|
%
|
|
|
58.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency
Ratio: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
30,345
|
|
|
$
|
28,328
|
|
|
$
|
26,297
|
|
|
$
|
58,673
|
|
|
$
|
52,172
|
|
Merger and contractual
termination expenses (Pretax)
|
|
|
(3,491)
|
|
|
|
(424)
|
|
|
|
(246)
|
|
|
|
(3,915)
|
|
|
|
(246)
|
|
Operating expense (a
non-GAAP measure)
|
|
$
|
26,854
|
|
|
$
|
27,904
|
|
|
$
|
26,051
|
|
|
$
|
54,758
|
|
|
$
|
51,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
39,790
|
|
|
$
|
44,963
|
|
|
$
|
45,330
|
|
|
$
|
84,753
|
|
|
$
|
88,553
|
|
Death benefit on bank
owned life insurance ("BOLI") and policy
surrender (Pretax)
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,157)
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Operating revenue (a
non-GAAP measure)
|
|
$
|
39,790
|
|
|
$
|
44,963
|
|
|
$
|
44,173
|
|
|
$
|
84,753
|
|
|
$
|
87,396
|
|
Operating Efficiency
Ratio (a non-GAAP measure)
|
|
|
67.49
|
%
|
|
|
62.06
|
%
|
|
|
58.97
|
%
|
|
|
64.61
|
%
|
|
|
59.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
March
31,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Operating Return on
Tangible Common Equity: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,630
|
|
|
$
|
12,722
|
|
|
$
|
13,420
|
|
|
$
|
22,352
|
|
|
$
|
26,736
|
|
Average common
equity
|
|
$
|
525,766
|
|
|
$
|
519,926
|
|
|
$
|
436,661
|
|
|
$
|
522,862
|
|
|
$
|
436,636
|
|
Average goodwill and
merger related intangibles
|
|
|
(71,646)
|
|
|
|
(71,876)
|
|
|
|
(54,397)
|
|
|
|
(71,761)
|
|
|
|
(54,440)
|
|
Average tangible common
equity (a non-GAAP measure)
|
|
$
|
454,120
|
|
|
$
|
448,050
|
|
|
$
|
382,264
|
|
|
$
|
451,101
|
|
|
$
|
382,196
|
|
Operating Return on
Tangible Common Equity (a non-GAAP measure)
|
|
|
8.51
|
%
|
|
|
11.52
|
%
|
|
|
14.08
|
%
|
|
|
9.99
|
%
|
|
|
14.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return on
Average Assets: (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,630
|
|
|
$
|
12,722
|
|
|
$
|
13,420
|
|
|
$
|
22,352
|
|
|
$
|
26,736
|
|
Average
assets
|
|
$
|
5,495,662
|
|
|
$
|
5,543,080
|
|
|
$
|
5,015,202
|
|
|
$
|
5,519,239
|
|
|
$
|
4,989,723
|
|
Operating Return on
Average Assets (a non-GAAP measure)
|
|
|
0.70
|
%
|
|
|
0.93
|
%
|
|
|
1.07
|
%
|
|
|
0.82
|
%
|
|
|
1.08
|
%
|
(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 total
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.
|
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SOURCE Cambridge Bancorp