CAMBRIDGE, Mass., Oct. 17,
2023 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC)
(the "Company"), the parent company of Cambridge Trust Company (the
"Bank"), today announced unaudited net income of $6.5 million for the three months ended
September 30, 2023, a decrease of $571,000, or 8.0%, as compared to net income of
$7.1 million for the three months
ended June 30, 2023. Diluted earnings
per share were $0.83 for the three
months ended September 30, 2023, representing an 8.8% decrease
as compared to $0.91 for the three
months ended June 30, 2023.
For the nine months ended September 30, 2023, unaudited net
income was $26.1 million,
representing a decrease of $15.5
million, or 37.3%, as compared to net income of $41.6 million for the nine months ended
September 30, 2022. Diluted earnings per share were
$3.32 for the nine months ended
September 30, 2023, representing a 43.7% decrease as compared
to diluted earnings per share of $5.90 for the nine months ended
September 30, 2022.
Operating net income, which excludes 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, was $9.1 million for the
three months ended September 30, 2023, a decrease of
$575,000, or 6.0%, as compared to
operating net income of $9.6 million
for the three months ended June 30,
2023. Operating diluted earnings per share were $1.15 for the three months ended
September 30, 2023, representing a decrease of $0.08, or 6.5%, as compared to operating diluted
earnings per share of $1.23 for the
three months ended June 30, 2023.
Operating net income was $31.4
million for the nine months ended September 30, 2023, a
decrease of $10.1 million, or 24.3%,
as compared to operating net income of $41.5
million for the nine months ended September 30, 2022.
Operating diluted earnings per share were $4.00 for the nine months ended
September 30, 2023, representing a decrease of
$1.89, or 32.1%, as compared to
operating diluted earnings per share of $5.89 for the nine months ended
September 30, 2022.
Merger with Eastern Bankshares, Inc.
On September 19, 2023, the Company
and Eastern Bankshares, Inc. ("Eastern") announced that they have
entered into an Agreement and Plan of Merger (the "Merger
Agreement") pursuant to which the Company will merge with and into
Eastern in an all-stock transaction (the "Eastern merger") that is
anticipated to close during the first quarter of 2024. The Eastern
merger is subject to regulatory approval, approval by the Company's
and Eastern's shareholders, and the completion of other customary
closing conditions. Under the terms of the Merger Agreement, each
share of the Company's common stock will be exchanged for 4.956
shares of Eastern common stock and Denis K.
Sheahan will assume the role of Chief Executive Officer of
Eastern Bank.
"We are pleased to announce our plans to merge with Eastern Bank
given our shared focus on delivering exceptional service to clients
and the opportunity this combination brings for the employees and
shareholders of both companies," said Mr. Sheahan.
Third Quarter 2023 Highlights:
- Financial performance ratios for the three months ended
September 30, 2023 were as follows:
- Return on Average Assets ("ROA") of 0.48% and Operating ROA of
0.66%.
- Return on Average Equity of 4.93% and Operating Return on
Tangible Common Shareholders' Equity ("ROTCE") of 7.88%.
- Deposits, excluding wholesale funds, remained flat and totaled
$4.08 billion at September 30, 2023 as compared to $4.09 billion at June 30,
2023.
- Asset quality at September 30,
2023 remained excellent with ratios of non-performing loans
to total loans and non-performing assets to total assets at 0.19%
and 0.14%, respectively.
- The common equity to assets ratio increased to 9.65% at
September 30, 2023 from 9.60% at
June 30, 2023. The tangible common
equity to tangible assets ratio increased to 8.45% at September 30, 2023 from 8.41% at June 30, 2023.
- Available sources of liquidity at September 30, 2023 totaled approximately
$2.6 billion. This is approximately
two times the amount of uninsured deposits at September 30, 2023.
Balance Sheet
Total assets decreased by $37.6
million, or 0.7%, from $5.49
billion at June 30, 2023 to
$5.45 billion at September 30,
2023.
Total loans were flat and totaled $4.03
billion for both June 30, 2023
and September 30, 2023.
- Residential real estate loans increased by $10.3 million, from $1.62
billion at June 30, 2023 to
$1.63 billion at September 30, 2023.
- Commercial real estate loans increased by $6.3 million, to $1.92
billion at September 30,
2023.
- Home equity loans decreased by $2.6
million, from $96.0 million at
June 30, 2023 to $93.4 million at September
30, 2023.
- Commercial and industrial loans decreased by $11.6 million, or 3.2%, from $367.4 million at June 30,
2023 to $355.8 million at
September 30, 2023, primarily due to
paydowns within the asset-backed loan portfolio, partially offset
by growth in the Innovation Banking loan portfolio.
The Company's total investment securities portfolio decreased by
$34.9 million, or 3.0%, from
$1.15 billion at June 30, 2023 to $1.12
billion at September 30, 2023, primarily due to
paydowns during the period.
Total deposits, inclusive of wholesale deposits, increased by
$123.3 million, or 2.8%, to
$4.57 billion at September 30,
2023, as compared to $4.44 billion at
June 30, 2023, primarily due to
higher wholesale deposit balances combined with higher certificates
of deposit and higher money market balances. At September 30,
2023, excluding wholesale deposits, total deposits stood at
$4.08 billion and remained flat as
compared to June 30, 2023.
- Certificates of deposit totaled $828.4
million at September 30, 2023,
representing an increase of $191.0
million, or 30.0%, from $637.3
million at June 30, 2023,
primarily driven by higher wholesale deposit balances. Total
wholesale certificates of deposit, which are included within
certificates of deposit, were $483.3
million and $356.3 million at
September 30, 2023 and June 30, 2023, respectively.
- The cost of total deposits was 2.09% for the three months ended
September 30, 2023, as compared to
1.78% for the three months ended June 30,
2023. The cost of total deposits excluding wholesale
deposits was 1.74% for the three months ended September 30, 2023, as compared to 1.52% for the
three months ended June 30, 2023. At
September 30, 2023, the spot cost of
non-wholesale deposits was 1.82%, as compared to 1.66% at
June 30, 2023.
Borrowings totaled $233.9 million
at September 30, 2023, representing a $175.0 million decrease from $408.9 million at June 30,
2023, as the Company utilized lower cost funding sources
during the quarter.
Net Interest and Dividend Income
Net interest and dividend income, before the provision for
credit losses, decreased by $1.1
million, or 3.7%, to $28.6
million for the three months ended September 30, 2023,
from $29.8 million for the three
months ended June 30, 2023. This was
primarily due to higher cost of funds, partially offset by an
increase in higher yields on earning assets.
The Company's net interest margin on a fully taxable equivalent
basis decreased by eight basis points to 2.18% for the three
months ended September 30, 2023, as compared to 2.26% for
the three months ended June 30, 2023,
as a result of higher funding costs.
Net interest and dividend income, before the provision for
credit losses, decreased by $9.7
million, or 9.5%, to $92.7
million for the nine months ended September 30, 2023,
from $102.3 million for the nine
months ended September 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 49 basis points to 2.36% for the nine months
ended September 30, 2023, as compared to 2.85% for the
nine months ended September 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 September 30,
2023, was 2.13%, representing an eight basis point decrease
from the adjusted net interest margin, on a fully taxable
equivalent basis, of 2.21% for the three months ended June 30, 2023.
|
|
Three Months
Ended
|
|
|
|
September 30,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,219,071
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
28,642
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.18
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(649)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,219,071
|
|
|
$
|
27,993
|
|
|
|
2.13
|
%
|
Excluding the impact of merger related loan accretion, the
adjusted net interest margin, on a fully taxable equivalent basis,
for the nine months ended September 30, 2023, was
2.31%, representing a 49 basis point decrease from the
adjusted net interest margin, on a fully taxable equivalent basis,
of 2.80% for the nine months ended September 30, 2022.
|
|
Nine Months
Ended
|
|
|
|
September 30,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,264,539
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
92,749
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.36
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(1,961)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,264,539
|
|
|
$
|
90,788
|
|
|
|
2.31
|
%
|
Provision for (Release of) Credit Losses
During the three months ended September 30, 2023, the
Company recorded a provision for credit losses of $195,000, as compared to a provision for credit
losses of $80,000 for the three
months ended June 30, 2023.
For the nine months ended September 30, 2023, the Company
recorded a provision for credit losses of $335,000, as compared to a $200,000 provision for credit losses for the nine
months ended September 30, 2022.
Noninterest Income
Total noninterest income increased by $520,000, or 5.2%, to $10.5 million for the three months ended
September 30, 2023, as compared to $10.0 million for the three months ended
June 30, 2023. This change was
primarily the result of higher wealth management revenue and higher
loan related derivative income. Noninterest income was 26.9% of
total revenue for the three months ended September 30,
2023.
- Wealth management revenue increased by $437,000, or 5.4%, to $8.5
million for the three months ended September 30, 2023, as compared to $8.1 million for the three months ended
June 30, 2023, primarily due to the
seasonal impact of $413,000 in tax
preparation fees recognized for the quarter. Wealth Management
Assets under Management and Administration were $4.27 billion at September
30, 2023, a decrease of $90.9
million, or 2.1%, from $4.36
billion at June 30, 2023,
primarily due to decline in the equity and bond markets, partially
offset by net client asset inflows.
- Loan related derivative income increased by $65,000, to $58,000
for the three months ended September 30,
2023, as compared to a loss of $7,000 for the three months ended June 30, 2023, primarily as a result of higher
volume of loan related derivative transactions.
Total noninterest income decreased by $1.7 million, or 5.0%, to $31.3 million for the nine months ended
September 30, 2023, as compared to $32.9 million for the nine months ended
September 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 25.2% of total
revenue for the nine months ended September 30, 2023.
- BOLI income decreased by $1.1
million, or 65.6%, to $576,000
for the nine months ended September 30,
2023, as compared to $1.7
million for the nine months ended September 30, 2022, primarily due to a gain
related to a death benefit claim and a policy surrender that
occurred during the nine months ended September 30, 2022, while no such benefit claims
or policy surrenders occurred during the nine months ended
September 30, 2023.
- Wealth management revenue decreased by $409,000, or 1.6%, to $24.5 million for the nine months ended
September 30, 2023, as compared to
$24.9 million for the nine months
ended September 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
$4.3 billion at September 30, 2023, an increase of $208.6 million, or 5.1%, from $4.1 billion at December
31, 2022, primarily due to positive returns in the equity
markets.
- Other income decreased by $448,000, or 18.8%, to $1.9 million for the nine months ended
September 30, 2023, as compared to
$2.4 million for the nine months
ended September 30, 2022, primarily
due to lower income associated with success fees of Innovation
Banking loans recognized during the nine months ended September 30, 2023 as compared to the nine months
ended September 30, 2022.
- Deposit account fees increased by $520,000, or 25.0%, to $2.6 million for the nine months ended
September 30, 2023, as compared to
$2.1 million for the nine months
ended September 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 decreased by $696,000, or 2.3%, to $29.6 million for the three months ended
September 30, 2023, as compared to $30.3 million for the three months ended
June 30, 2023. During the three
months ended September 30, 2023, there was a decrease in
non-operating expenses, partially offset by an increase in salary
and benefits expense, as compared to the three months ended
June 30, 2023.
- Non-operating expense decreased by $924,000, to $2.6
million for the three months ended September 30, 2023, from $3.5 million for the three months ended
June 30, 2023. The Company recorded
$2.6 million of merger related
expenses associated with the Eastern merger during the three months
ended September 30, 2023. The Company
recorded $3.5 million for the
Northmark Bank ("Northmark") merger ("Northmark merger") related
expenses associated with the systems conversion that occurred
during the second quarter of 2023.
- Salary and employee benefits expense increased by $288,000, or 1.7%, to $17.3 million for the three months ended
September 30, 2023, from $17.0 million for the three months ended
June 30, 2023, primarily due to
higher variable based compensation expense for the period.
Total noninterest expense increased by $9.8 million, or 12.5%, to $88.3 million for the nine months ended
September 30, 2023, as compared to $78.5 million for the nine months ended
September 30, 2022, primarily driven by an increase in
non-operating expenses, salary and benefits expense, FDIC insurance
expense, and marketing expenses as compared to the nine months
ended September 30, 2022.
- Non-operating expense increased by $6.1
million to $6.5 million for
the nine months ended September 30,
2023, from $396,000 for the
nine months ended September 30, 2022,
primarily due to merger expenses associated with the Eastern and
Northmark mergers.
- Salary and employee benefits expense increased by $1.0 million, or 1.9%, to $52.7 million for the nine months ended
September 30, 2023, from $51.8 million for the nine months ended
September 30, 2022, primarily due to
higher overall staffing levels associated with the Northmark
merger, normal merit increases, and increases in employee benefit
costs, partially offset by savings from a reduction in head count
during the year.
- Marketing expense increased by $446,000, or 38.0%, to $1.6 million for the nine months ended
September 30, 2023, from $1.2 million for the nine months ended
September 30, 2022, primarily due to
increased deposit campaigns during the period.
Asset Quality
Non-performing loans totaled $7.8
million, or 0.19% of total loans outstanding at
September 30, 2023, consistent with the level seen at
June 30, 2023. The allowance for
credit losses was $38.2 million, or
0.95% of total loans outstanding at September 30, 2023, as
compared to $38.1 million, or 0.95%
of total loans outstanding at June 30,
2023.
The Company recorded net loan charge-offs of $74,000, or 0.01% of total loans (annualized),
for the three months ended September 30, 2023, as compared to
net loan charge-offs of $12,000, or
0.00% of total loans (annualized), for the three months ended
June 30, 2023.
The Company recorded net loan charge-offs of $80,000, or 0.00% of total loans (annualized),
for the nine months ended September 30, 2023, as compared to
net loan recoveries of $37,000, or
0.00% of total loans (annualized), for the nine months ended
September 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
|
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
September 30,
2022
|
|
|
|
(dollars in
thousands)
|
|
Non-performing
assets
|
|
$
|
7,778
|
|
|
$
|
7,199
|
|
|
$
|
6,542
|
|
$
|
6,383
|
|
Non-performing
loans/total loans
|
|
|
0.19
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
0.18
|
%
|
Non-performing
assets/total assets
|
|
|
0.14
|
%
|
|
|
0.13
|
%
|
|
|
0.12
|
%
|
|
0.12
|
%
|
|
|
Additional Asset
Quality Indicators
|
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans 30-89
days past due/total loans
|
|
|
0.58
|
%
|
|
|
0.51
|
%
|
|
|
0.36
|
%
|
|
0.38
|
%
|
Quarterly net
recoveries (charge-offs)/total loans
(annualized)
|
|
|
(0.01)
|
%
|
|
|
(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
|
|
|
491.05
|
%
|
|
|
528.86
|
%
|
|
|
577.41
|
%
|
|
544.38
|
%
|
Allowance for credit
losses/total loans
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
0.96
|
%
|
Income Taxes
The Company's effective tax rate was 30.0% for the three months
ended September 30, 2023, representing an increase of 25.0%,
as compared to an effective tax rate of 24.0% for the three months
ended June 30, 2023, primarily due to
the impact of non-deductible merger related expenses recorded
during the period. For the nine months ended September 30,
2023, the Company's effective tax rate was 26.1%, as compared to
26.5% for the nine months ended September 30, 2022.
Dividend and Capital
On October 16, 2023, the Company's
Board of Directors declared a quarterly cash dividend of
$0.67 per share, which is payable on
November 16, 2023, to shareholders of
record as of the close of business on November 2, 2023. The Company did not repurchase
any shares under its previously announced share repurchase program
during the three and nine months ended September 30, 2023.
The Company's common equity to assets ratio increased to 9.65%
at September 30, 2023, from 9.60% at June 30, 2023. The ratio of tangible common
equity to tangible assets increased to 8.45% at September 30,
2023 from 8.41% at June 30, 2023.
Book value per share at September 30, 2023 decreased to
$67.04 from $67.17 at June 30,
2023. Tangible book value per share at September 30,
2023 decreased to $57.96 from
$58.05 at June
30, 2023.
Supplemental Earnings Release Information:
For
additional details on the Company's loan portfolio, Click here to
download
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 $5.45 billion
in assets at September 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 $4.3 billion in client assets under management
and administration at September 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 failure
to complete the proposed merger of the Company and the Bank with
Eastern, imposition of adverse regulatory conditions in connection
with regulatory approval of the Eastern merger, disruption to the
parties' businesses as a result of the announcement and pendency of
the Eastern merger, the inability to realize expected cost savings
or to implement integration plans and other adverse consequences
associated with the Eastern merger; 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 Northmark merger may not be fully realized or may
take longer to realize than expected; operating costs, customer
loss and business disruption following the Northmark 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
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
June
30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share data)
|
|
Interest and Dividend
Income
|
|
$
|
55,698
|
|
|
$
|
54,144
|
|
|
$
|
40,272
|
|
|
$
|
161,584
|
|
|
$
|
110,449
|
|
Interest
Expense
|
|
|
27,051
|
|
|
|
24,383
|
|
|
|
3,994
|
|
|
|
68,928
|
|
|
|
8,121
|
|
Net Interest and
Dividend Income
|
|
|
28,647
|
|
|
|
29,761
|
|
|
|
36,278
|
|
|
|
92,656
|
|
|
|
102,328
|
|
Provision for (Release
of) Credit Losses
|
|
|
195
|
|
|
|
80
|
|
|
|
612
|
|
|
|
335
|
|
|
|
200
|
|
Noninterest
Income
|
|
|
10,549
|
|
|
|
10,029
|
|
|
|
10,443
|
|
|
|
31,293
|
|
|
|
32,946
|
|
Noninterest
Expense
|
|
|
29,649
|
|
|
|
30,345
|
|
|
|
26,341
|
|
|
|
88,322
|
|
|
|
78,513
|
|
Income Before Income
Taxes
|
|
|
9,352
|
|
|
|
9,365
|
|
|
|
19,768
|
|
|
|
35,292
|
|
|
|
56,561
|
|
Income Tax
Expense
|
|
|
2,808
|
|
|
|
2,250
|
|
|
|
5,152
|
|
|
|
9,217
|
|
|
|
14,971
|
|
Net
Income
|
|
$
|
6,544
|
|
|
$
|
7,115
|
|
|
$
|
14,616
|
|
|
$
|
26,075
|
|
|
$
|
41,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net
Income*
|
|
$
|
9,055
|
|
|
$
|
9,630
|
|
|
$
|
14,728
|
|
|
$
|
31,407
|
|
|
$
|
41,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share
|
|
$
|
0.83
|
|
|
$
|
0.91
|
|
|
$
|
2.09
|
|
|
$
|
3.33
|
|
|
$
|
5.94
|
|
Diluted Earnings
Per Share
|
|
|
0.83
|
|
|
|
0.91
|
|
|
|
2.07
|
|
|
|
3.32
|
|
|
|
5.90
|
|
Operating Diluted
Earnings Per Share*
|
|
|
1.15
|
|
|
|
1.23
|
|
|
|
2.09
|
|
|
|
4.00
|
|
|
|
5.89
|
|
Dividends
Declared Per Share
|
|
|
0.67
|
|
|
|
0.67
|
|
|
|
0.64
|
|
|
|
2.01
|
|
|
|
1.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,840,197
|
|
|
|
7,837,708
|
|
|
|
6,971,583
|
|
|
|
7,825,195
|
|
|
|
6,961,833
|
|
Diluted
|
|
|
7,862,584
|
|
|
|
7,854,955
|
|
|
|
7,018,832
|
|
|
|
7,848,061
|
|
|
|
7,010,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin, FTE
|
|
|
2.18
|
%
|
|
|
2.26
|
%
|
|
|
2.95
|
%
|
|
|
2.36
|
%
|
|
|
2.85
|
%
|
Adjusted Net
Interest Margin, FTE
|
|
|
2.13
|
%
|
|
|
2.21
|
%
|
|
|
2.93
|
%
|
|
|
2.31
|
%
|
|
|
2.80
|
%
|
Cost of
Funds
|
|
|
2.06
|
%
|
|
|
1.86
|
%
|
|
|
0.32
|
%
|
|
|
1.75
|
%
|
|
|
0.23
|
%
|
Cost of
Interest-Bearing Liabilities
|
|
|
2.87
|
%
|
|
|
2.62
|
%
|
|
|
0.51
|
%
|
|
|
2.50
|
%
|
|
|
0.35
|
%
|
Cost of
Deposits
|
|
|
2.09
|
%
|
|
|
1.78
|
%
|
|
|
0.26
|
%
|
|
|
1.74
|
%
|
|
|
0.20
|
%
|
Cost of Deposits
excluding Wholesale Deposits
|
|
|
1.74
|
%
|
|
|
1.52
|
%
|
|
|
0.24
|
%
|
|
|
1.42
|
%
|
|
|
0.19
|
%
|
Return on Average
Assets
|
|
|
0.48
|
%
|
|
|
0.52
|
%
|
|
|
1.14
|
%
|
|
|
0.63
|
%
|
|
|
1.11
|
%
|
Return on Average
Equity
|
|
|
4.93
|
%
|
|
|
5.43
|
%
|
|
|
13.02
|
%
|
|
|
6.65
|
%
|
|
|
12.65
|
%
|
Efficiency
Ratio*
|
|
|
75.64
|
%
|
|
|
76.26
|
%
|
|
|
56.38
|
%
|
|
|
71.26
|
%
|
|
|
58.04
|
%
|
Operating Return
on Average Assets*
|
|
|
0.66
|
%
|
|
|
0.70
|
%
|
|
|
1.15
|
%
|
|
|
0.76
|
%
|
|
|
1.10
|
%
|
Operating Return
on Tangible Common Equity*
|
|
|
7.88
|
%
|
|
|
8.51
|
%
|
|
|
14.94
|
%
|
|
|
9.28
|
%
|
|
|
14.39
|
%
|
Operating
Efficiency Ratio*
|
|
|
69.09
|
%
|
|
|
67.49
|
%
|
|
|
56.06
|
%
|
|
|
66.03
|
%
|
|
|
58.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
|
|
(dollars in
thousands, except per share data)
|
|
|
|
|
Total Assets
|
|
$
|
5,452,030
|
|
|
$
|
5,489,622
|
|
|
$
|
5,559,737
|
|
|
$
|
5,143,359
|
|
|
|
|
Total Loans
|
|
$
|
4,027,967
|
|
|
$
|
4,025,226
|
|
|
|
4,062,856
|
|
|
$
|
3,628,608
|
|
|
|
|
Total
Deposits
|
|
$
|
4,565,926
|
|
|
$
|
4,442,590
|
|
|
|
4,815,376
|
|
|
$
|
4,281,422
|
|
|
|
|
Allowance for Credit
Losses
|
|
$
|
38,194
|
|
|
$
|
38,073
|
|
|
|
37,774
|
|
|
$
|
34,748
|
|
|
|
|
Allowance to Total
Loans
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
0.96
|
%
|
|
|
|
Non-Performing
Loans
|
|
$
|
7,778
|
|
|
$
|
7,199
|
|
|
$
|
6,542
|
|
|
$
|
6,383
|
|
|
|
|
Non-Performing
Loans/Total Loans
|
|
|
0.19
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.18
|
%
|
|
|
|
QTD Net Recoveries
(Charge-offs) to Total Loans
(annualized)
|
|
|
(0.01)
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
|
Tangible Common Equity
Ratio*
|
|
|
8.45
|
%
|
|
|
8.41
|
%
|
|
|
8.12
|
%
|
|
|
7.70
|
%
|
|
|
|
Book Value Per
Share
|
|
$
|
67.04
|
|
|
$
|
67.17
|
|
|
$
|
66.38
|
|
|
$
|
63.69
|
|
|
|
|
Tangible Book Value Per
Share*
|
|
$
|
57.96
|
|
|
$
|
58.05
|
|
|
$
|
57.15
|
|
|
$
|
55.95
|
|
|
|
|
Wealth Management
AUM
|
|
$
|
4,010,956
|
|
|
$
|
4,099,169
|
|
|
|
3,875,747
|
|
|
$
|
3,663,034
|
|
|
|
|
Wealth Management AUM
& AUA
|
|
$
|
4,268,394
|
|
|
$
|
4,359,335
|
|
|
|
4,059,819
|
|
|
$
|
3,837,035
|
|
|
|
|
* See GAAP to
Non-GAAP Reconciliations
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
CAMBRIDGE BANCORP AND
SUBSIDIARIES
UNAUDITED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands, except share information)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25,353
|
|
|
$
|
33,398
|
|
|
$
|
30,719
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
Available for sale, at
fair value (amortized cost $167,903, $172,568,
and $182,027, respectively)
|
|
|
136,253
|
|
|
|
144,306
|
|
|
|
153,416
|
|
Held to maturity, at
amortized cost (fair value $784,636, $839,025,
and $885,586, respectively)
|
|
|
980,591
|
|
|
|
1,007,471
|
|
|
|
1,051,997
|
|
Total investment
securities
|
|
|
1,116,844
|
|
|
|
1,151,777
|
|
|
|
1,205,413
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale, at
lower of cost or fair value
|
|
|
614
|
|
|
|
—
|
|
|
|
—
|
|
Loans
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
1,627,460
|
|
|
|
1,617,194
|
|
|
|
1,648,838
|
|
Commercial
mortgage
|
|
|
1,922,455
|
|
|
|
1,916,159
|
|
|
|
1,914,423
|
|
Home equity
|
|
|
93,364
|
|
|
|
95,975
|
|
|
|
111,351
|
|
Commercial and
industrial
|
|
|
355,796
|
|
|
|
367,403
|
|
|
|
350,650
|
|
Consumer
|
|
|
28,892
|
|
|
|
28,495
|
|
|
|
37,594
|
|
Total loans
|
|
|
4,027,967
|
|
|
|
4,025,226
|
|
|
|
4,062,856
|
|
Less: allowance for
credit losses on loans
|
|
|
(38,194)
|
|
|
|
(38,073)
|
|
|
|
(37,774)
|
|
Net loans
|
|
|
3,989,773
|
|
|
|
3,987,153
|
|
|
|
4,025,082
|
|
Federal Home Loan Bank
of Boston Stock, at cost
|
|
|
12,321
|
|
|
|
20,247
|
|
|
|
6,264
|
|
Bank owned life
insurance
|
|
|
35,063
|
|
|
|
34,866
|
|
|
|
34,484
|
|
Banking premises and
equipment, net
|
|
|
22,297
|
|
|
|
22,654
|
|
|
|
23,297
|
|
Right-of-use asset
operating leases
|
|
|
22,095
|
|
|
|
23,111
|
|
|
|
25,098
|
|
Deferred income taxes,
net
|
|
|
16,495
|
|
|
|
15,841
|
|
|
|
17,990
|
|
Accrued interest
receivable
|
|
|
15,255
|
|
|
|
14,573
|
|
|
|
14,118
|
|
Goodwill
|
|
|
64,539
|
|
|
|
64,539
|
|
|
|
64,539
|
|
Merger-related
intangibles, net
|
|
|
6,773
|
|
|
|
6,996
|
|
|
|
7,443
|
|
Other assets
|
|
|
124,608
|
|
|
|
114,467
|
|
|
|
105,290
|
|
Total
assets
|
|
$
|
5,452,030
|
|
|
$
|
5,489,622
|
|
|
$
|
5,559,737
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
1,036,849
|
|
|
$
|
1,059,563
|
|
|
$
|
1,366,395
|
|
Interest-bearing
checking
|
|
|
1,134,270
|
|
|
|
1,171,164
|
|
|
|
908,961
|
|
Money
market
|
|
|
1,005,820
|
|
|
|
981,304
|
|
|
|
1,162,773
|
|
Savings
|
|
|
560,597
|
|
|
|
593,210
|
|
|
|
790,628
|
|
Certificates of
deposit
|
|
|
828,390
|
|
|
|
637,349
|
|
|
|
586,619
|
|
Total
deposits
|
|
|
4,565,926
|
|
|
|
4,442,590
|
|
|
|
4,815,376
|
|
Borrowings
|
|
|
233,905
|
|
|
|
408,926
|
|
|
|
105,212
|
|
Operating lease
liabilities
|
|
|
24,196
|
|
|
|
25,376
|
|
|
|
27,413
|
|
Other
liabilities
|
|
|
101,972
|
|
|
|
85,726
|
|
|
|
94,184
|
|
Total
liabilities
|
|
|
4,925,999
|
|
|
|
4,962,618
|
|
|
|
5,042,185
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Common stock, par value
$1.00; Authorized: 10,000,000 shares;
Outstanding: 7,846,041 shares, 7,845,868 shares, and 7,796,440
shares, respectively
|
|
|
7,846
|
|
|
|
7,846
|
|
|
|
7,796
|
|
Additional paid-in
capital
|
|
|
294,025
|
|
|
|
293,500
|
|
|
|
293,186
|
|
Retained
earnings
|
|
|
247,714
|
|
|
|
246,428
|
|
|
|
237,369
|
|
Accumulated other
comprehensive loss
|
|
|
(23,554)
|
|
|
|
(20,770)
|
|
|
|
(20,799)
|
|
Total shareholders'
equity
|
|
|
526,031
|
|
|
|
527,004
|
|
|
|
517,552
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,452,030
|
|
|
$
|
5,489,622
|
|
|
$
|
5,559,737
|
|
CAMBRIDGE BANCORP AND
SUBSIDIARIES
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
June
30,
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share amounts)
|
|
Interest and dividend
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on taxable
loans
|
|
$
|
49,535
|
|
|
$
|
47,731
|
|
|
$
|
34,056
|
|
|
|
$
|
142,599
|
|
|
$
|
92,695
|
|
Interest on tax-exempt
loans
|
|
|
398
|
|
|
|
382
|
|
|
|
367
|
|
|
|
|
1,156
|
|
|
|
1,071
|
|
Interest on taxable
investment securities
|
|
|
4,837
|
|
|
|
4,957
|
|
|
|
5,101
|
|
|
|
|
14,844
|
|
|
|
14,501
|
|
Interest on tax-exempt
investment securities
|
|
|
541
|
|
|
|
570
|
|
|
|
601
|
|
|
|
|
1,696
|
|
|
|
1,882
|
|
Dividends on FHLB of
Boston stock
|
|
|
254
|
|
|
|
340
|
|
|
|
106
|
|
|
|
|
666
|
|
|
|
163
|
|
Interest on overnight
investments
|
|
|
133
|
|
|
|
164
|
|
|
|
41
|
|
|
|
|
623
|
|
|
|
137
|
|
Total interest and
dividend income
|
|
|
55,698
|
|
|
|
54,144
|
|
|
|
40,272
|
|
|
|
|
161,584
|
|
|
|
110,449
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
24,164
|
|
|
|
20,040
|
|
|
|
2,846
|
|
|
|
|
60,148
|
|
|
|
6,586
|
|
Interest on borrowed
funds
|
|
|
2,887
|
|
|
|
4,343
|
|
|
|
1,148
|
|
|
|
|
8,780
|
|
|
|
1,535
|
|
Total interest
expense
|
|
|
27,051
|
|
|
|
24,383
|
|
|
|
3,994
|
|
|
|
|
68,928
|
|
|
|
8,121
|
|
Net interest and
dividend income
|
|
|
28,647
|
|
|
|
29,761
|
|
|
|
36,278
|
|
|
|
|
92,656
|
|
|
|
102,328
|
|
Provision for (Release
of) credit losses
|
|
|
195
|
|
|
|
80
|
|
|
|
612
|
|
|
|
|
335
|
|
|
|
200
|
|
Net interest and
dividend income after provision
for (release of) credit losses
|
|
|
28,452
|
|
|
|
29,681
|
|
|
|
35,666
|
|
|
|
|
92,321
|
|
|
|
102,128
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
revenue
|
|
|
8,513
|
|
|
|
8,076
|
|
|
|
8,239
|
|
|
|
|
24,526
|
|
|
|
24,935
|
|
Deposit account
fees
|
|
|
852
|
|
|
|
878
|
|
|
|
841
|
|
|
|
|
2,599
|
|
|
|
2,079
|
|
ATM/Debit card
income
|
|
|
403
|
|
|
|
414
|
|
|
|
413
|
|
|
|
|
1,328
|
|
|
|
1,219
|
|
Bank owned life
insurance income
|
|
|
197
|
|
|
|
192
|
|
|
|
144
|
|
|
|
|
576
|
|
|
|
1,674
|
|
Gain on loans sold,
net
|
|
|
27
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
40
|
|
|
|
98
|
|
Loan related
derivative income (loss)
|
|
|
58
|
|
|
|
(7)
|
|
|
|
213
|
|
|
|
|
285
|
|
|
|
554
|
|
Other
income
|
|
|
499
|
|
|
|
476
|
|
|
|
593
|
|
|
|
|
1,939
|
|
|
|
2,387
|
|
Total noninterest
income
|
|
|
10,549
|
|
|
|
10,029
|
|
|
|
10,443
|
|
|
|
|
31,293
|
|
|
|
32,946
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
17,272
|
|
|
|
16,984
|
|
|
|
17,341
|
|
|
|
|
52,744
|
|
|
|
51,780
|
|
Occupancy and
equipment
|
|
|
3,602
|
|
|
|
3,571
|
|
|
|
3,511
|
|
|
|
|
10,920
|
|
|
|
10,666
|
|
Data
processing
|
|
|
2,485
|
|
|
|
2,602
|
|
|
|
2,592
|
|
|
|
|
7,728
|
|
|
|
7,838
|
|
Professional
services
|
|
|
1,089
|
|
|
|
863
|
|
|
|
749
|
|
|
|
|
3,075
|
|
|
|
2,883
|
|
Marketing
|
|
|
535
|
|
|
|
658
|
|
|
|
731
|
|
|
|
|
1,619
|
|
|
|
1,173
|
|
FDIC
insurance
|
|
|
770
|
|
|
|
768
|
|
|
|
453
|
|
|
|
|
1,917
|
|
|
|
1,380
|
|
Non-operating
expenses
|
|
|
2,567
|
|
|
|
3,491
|
|
|
|
150
|
|
|
|
|
6,482
|
|
|
|
396
|
|
Other
expenses
|
|
|
1,329
|
|
|
|
1,408
|
|
|
|
814
|
|
|
|
|
3,837
|
|
|
|
2,397
|
|
Total noninterest
expense
|
|
|
29,649
|
|
|
|
30,345
|
|
|
|
26,341
|
|
|
|
|
88,322
|
|
|
|
78,513
|
|
Income before income
taxes
|
|
|
9,352
|
|
|
|
9,365
|
|
|
|
19,768
|
|
|
|
|
35,292
|
|
|
|
56,561
|
|
Income tax
expense
|
|
|
2,808
|
|
|
|
2,250
|
|
|
|
5,152
|
|
|
|
|
9,217
|
|
|
|
14,971
|
|
Net income
|
|
$
|
6,544
|
|
|
$
|
7,115
|
|
|
$
|
14,616
|
|
|
|
$
|
26,075
|
|
|
$
|
41,590
|
|
Share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
7,840,197
|
|
|
|
7,837,708
|
|
|
|
6,971,583
|
|
|
|
|
7,825,195
|
|
|
|
6,961,833
|
|
Weighted average
shares outstanding, diluted
|
|
|
7,862,584
|
|
|
|
7,854,955
|
|
|
|
7,018,832
|
|
|
|
|
7,848,061
|
|
|
|
7,010,197
|
|
Basic earnings per
share
|
|
$
|
0.83
|
|
|
$
|
0.91
|
|
|
$
|
2.09
|
|
|
|
$
|
3.33
|
|
|
$
|
5.94
|
|
Diluted earnings per
share
|
|
$
|
0.83
|
|
|
$
|
0.91
|
|
|
$
|
2.07
|
|
|
|
$
|
3.32
|
|
|
$
|
5.90
|
|
CAMBRIDGE BANCORP AND
SUBSIDIARIES
MARGIN & YIELD
ANALYSIS
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
September 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
|
|
$
|
3,967,048
|
|
|
$
|
49,535
|
|
|
|
4.95
|
%
|
|
$
|
3,978,078
|
|
|
$
|
47,731
|
|
|
|
4.81
|
%
|
|
$
|
3,537,808
|
|
|
$
|
34,056
|
|
|
|
3.82
|
%
|
Tax-exempt
|
|
|
53,012
|
|
|
|
503
|
|
|
|
3.76
|
|
|
|
51,359
|
|
|
|
484
|
|
|
|
3.78
|
|
|
|
48,235
|
|
|
|
464
|
|
|
|
3.82
|
|
Securities available
for
sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
170,451
|
|
|
|
682
|
|
|
|
1.59
|
|
|
|
175,361
|
|
|
|
693
|
|
|
|
1.59
|
|
|
|
191,050
|
|
|
|
677
|
|
|
|
1.41
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
907,447
|
|
|
|
4,155
|
|
|
|
1.82
|
|
|
|
927,768
|
|
|
|
4,264
|
|
|
|
1.84
|
|
|
|
994,790
|
|
|
|
4,424
|
|
|
|
1.76
|
|
Tax-exempt
|
|
|
87,961
|
|
|
|
685
|
|
|
|
3.09
|
|
|
|
93,420
|
|
|
|
721
|
|
|
|
3.10
|
|
|
|
97,618
|
|
|
|
760
|
|
|
|
3.09
|
|
Cash and cash
equivalents
|
|
|
33,152
|
|
|
|
133
|
|
|
|
1.59
|
|
|
|
37,391
|
|
|
|
164
|
|
|
|
1.76
|
|
|
|
25,095
|
|
|
|
41
|
|
|
|
0.65
|
|
Total
interest-earning
assets (4)
|
|
|
5,219,071
|
|
|
|
55,693
|
|
|
|
4.23
|
%
|
|
|
5,263,377
|
|
|
|
54,057
|
|
|
|
4.12
|
%
|
|
|
4,894,596
|
|
|
|
40,422
|
|
|
|
3.28
|
%
|
Non-interest-earning
assets
|
|
|
279,306
|
|
|
|
|
|
|
|
|
|
270,384
|
|
|
|
|
|
|
|
|
|
237,087
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(38,044)
|
|
|
|
|
|
|
|
|
|
(38,099)
|
|
|
|
|
|
|
|
|
|
(34,517)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,460,333
|
|
|
|
|
|
|
|
|
$
|
5,495,662
|
|
|
|
|
|
|
|
|
$
|
5,097,166
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,166,179
|
|
|
$
|
5,694
|
|
|
|
1.94
|
%
|
|
$
|
1,150,334
|
|
|
$
|
4,985
|
|
|
|
1.74
|
%
|
|
$
|
701,729
|
|
|
$
|
141
|
|
|
|
0.08
|
%
|
Savings
accounts
|
|
|
584,638
|
|
|
|
1,532
|
|
|
|
1.04
|
|
|
|
624,749
|
|
|
|
1,469
|
|
|
|
0.94
|
|
|
|
887,404
|
|
|
|
385
|
|
|
|
0.17
|
|
Money market
accounts
|
|
|
986,619
|
|
|
|
8,088
|
|
|
|
3.25
|
|
|
|
970,828
|
|
|
|
7,292
|
|
|
|
3.01
|
|
|
|
1,184,081
|
|
|
|
2,003
|
|
|
|
0.67
|
|
Certificates of
deposit
|
|
|
771,237
|
|
|
|
8,850
|
|
|
|
4.55
|
|
|
|
633,722
|
|
|
|
6,294
|
|
|
|
3.98
|
|
|
|
157,622
|
|
|
|
317
|
|
|
|
0.80
|
|
Total
interest-bearing
deposits
|
|
|
3,508,673
|
|
|
|
24,164
|
|
|
|
2.73
|
|
|
|
3,379,633
|
|
|
|
20,040
|
|
|
|
2.38
|
|
|
|
2,930,836
|
|
|
|
2,846
|
|
|
|
0.39
|
|
Other borrowed
funds
|
|
|
229,005
|
|
|
|
2,887
|
|
|
|
5.00
|
|
|
|
346,755
|
|
|
|
4,343
|
|
|
|
5.02
|
|
|
|
190,543
|
|
|
|
1,148
|
|
|
|
2.39
|
|
Total
interest-bearing
liabilities
|
|
|
3,737,678
|
|
|
|
27,051
|
|
|
|
2.87
|
%
|
|
|
3,726,388
|
|
|
|
24,383
|
|
|
|
2.62
|
%
|
|
|
3,121,379
|
|
|
|
3,994
|
|
|
|
0.51
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,078,554
|
|
|
|
|
|
|
|
|
|
1,138,259
|
|
|
|
|
|
|
|
|
|
1,429,649
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
117,042
|
|
|
|
|
|
|
|
|
|
105,249
|
|
|
|
|
|
|
|
|
|
100,651
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,933,274
|
|
|
|
|
|
|
|
|
|
4,969,896
|
|
|
|
|
|
|
|
|
|
4,651,679
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
527,059
|
|
|
|
|
|
|
|
|
|
525,766
|
|
|
|
|
|
|
|
|
|
445,487
|
|
|
|
|
|
|
|
Total liabilities
&
shareholders'
equity
|
|
$
|
5,460,333
|
|
|
|
|
|
|
|
|
$
|
5,495,662
|
|
|
|
|
|
|
|
|
$
|
5,097,166
|
|
|
|
|
|
|
|
Net interest income on
a
fully taxable equivalent
basis
|
|
|
|
|
|
28,642
|
|
|
|
|
|
|
|
|
|
29,674
|
|
|
|
|
|
|
|
|
|
36,428
|
|
|
|
|
Less taxable
equivalent
adjustment
|
|
|
|
|
|
(249)
|
|
|
|
|
|
|
|
|
|
(253)
|
|
|
|
|
|
|
|
|
|
(256)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
28,393
|
|
|
|
|
|
|
|
|
$
|
29,421
|
|
|
|
|
|
|
|
|
$
|
36,172
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.36
|
%
|
|
|
|
|
|
|
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
2.77
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.18
|
%
|
|
|
|
|
|
|
|
|
2.26
|
%
|
|
|
|
|
|
|
|
|
2.95
|
%
|
|
|
(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
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2023
|
|
|
September 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
|
|
$
|
3,977,097
|
|
|
$
|
142,599
|
|
|
|
4.79
|
%
|
|
$
|
3,421,389
|
|
|
$
|
92,695
|
|
|
|
3.62
|
%
|
Tax-exempt
|
|
|
51,807
|
|
|
|
1,463
|
|
|
|
3.78
|
|
|
|
47,241
|
|
|
|
1,356
|
|
|
|
3.84
|
|
Securities available
for sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
175,404
|
|
|
|
2,089
|
|
|
|
1.59
|
|
|
|
197,698
|
|
|
|
1,998
|
|
|
|
1.35
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
927,667
|
|
|
|
12,755
|
|
|
|
1.84
|
|
|
|
981,692
|
|
|
|
12,503
|
|
|
|
1.70
|
|
Tax-exempt
|
|
|
92,171
|
|
|
|
2,147
|
|
|
|
3.11
|
|
|
|
101,135
|
|
|
|
2,383
|
|
|
|
3.15
|
|
Cash and cash
equivalents
|
|
|
40,393
|
|
|
|
624
|
|
|
|
2.07
|
|
|
|
73,306
|
|
|
|
137
|
|
|
|
0.25
|
|
Total interest-earning
assets (4)
|
|
|
5,264,539
|
|
|
|
161,677
|
|
|
|
4.11
|
%
|
|
|
4,822,461
|
|
|
|
111,072
|
|
|
|
3.08
|
%
|
Non-interest-earning
assets
|
|
|
272,826
|
|
|
|
|
|
|
|
|
|
236,034
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(37,976)
|
|
|
|
|
|
|
|
|
|
(34,554)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,499,389
|
|
|
|
|
|
|
|
|
$
|
5,023,941
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,066,566
|
|
|
$
|
12,705
|
|
|
|
1.59
|
%
|
|
$
|
736,257
|
|
|
$
|
234
|
|
|
|
0.04
|
%
|
Savings
accounts
|
|
|
659,518
|
|
|
|
4,358
|
|
|
|
0.88
|
|
|
|
903,333
|
|
|
|
744
|
|
|
|
0.11
|
|
Money market
accounts
|
|
|
1,028,602
|
|
|
|
21,841
|
|
|
|
2.84
|
|
|
|
1,191,414
|
|
|
|
5,104
|
|
|
|
0.57
|
|
Certificates of
deposit
|
|
|
699,489
|
|
|
|
21,244
|
|
|
|
4.06
|
|
|
|
143,648
|
|
|
|
504
|
|
|
|
0.47
|
|
Total interest-bearing
deposits
|
|
|
3,454,175
|
|
|
|
60,148
|
|
|
|
2.33
|
%
|
|
|
2,974,652
|
|
|
|
6,586
|
|
|
|
0.30
|
%
|
Other borrowed
funds
|
|
|
238,093
|
|
|
|
8,780
|
|
|
|
4.93
|
|
|
|
88,520
|
|
|
|
1,535
|
|
|
|
2.32
|
|
Total interest-bearing
liabilities
|
|
|
3,692,268
|
|
|
|
68,928
|
|
|
|
2.50
|
%
|
|
|
3,063,172
|
|
|
|
8,121
|
|
|
|
0.35
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,168,468
|
|
|
|
|
|
|
|
|
|
1,423,808
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
114,376
|
|
|
|
|
|
|
|
|
|
97,350
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,975,112
|
|
|
|
|
|
|
|
|
|
4,584,330
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
524,277
|
|
|
|
|
|
|
|
|
|
439,611
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,499,389
|
|
|
|
|
|
|
|
|
$
|
5,023,941
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent
basis
|
|
|
|
|
|
92,749
|
|
|
|
|
|
|
|
|
|
102,951
|
|
|
|
|
Less taxable equivalent
adjustment
|
|
|
|
|
|
(759)
|
|
|
|
|
|
|
|
|
|
(786)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
91,990
|
|
|
|
|
|
|
|
|
$
|
102,165
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
2.72
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.36
|
%
|
|
|
|
|
|
|
|
|
2.85
|
%
|
|
|
(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
|
|
|
Nine Months
Ended
|
|
Operating Net Income
/ Operating Diluted Earnings Per Share
|
|
September 30,
|
|
|
June
30,
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (a GAAP
measure)
|
|
$
|
6,544
|
|
|
$
|
7,115
|
|
|
|
$
|
14,616
|
|
|
$
|
26,075
|
|
|
$
|
41,590
|
|
Less: Death benefits
on bank owned life insurance
("BOLI") and policy surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Add: Mergers and
contractual termination expenses (1)
|
|
|
2,567
|
|
|
|
3,491
|
|
|
|
|
150
|
|
|
|
6,482
|
|
|
|
396
|
|
Less: Tax effect of
BOLI surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
736
|
|
Less: Tax effect of
non-operating expenses (2)
|
`
|
|
(56)
|
|
|
|
(976)
|
|
|
|
|
(38)
|
|
|
|
(1,150)
|
|
|
|
(101)
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,055
|
|
|
$
|
9,630
|
|
|
|
$
|
14,728
|
|
|
$
|
31,407
|
|
|
$
|
41,464
|
|
Less: Dividends and
Undistributed Earnings
Allocated to Participating Securities (a non-GAAP
measure)
|
|
|
(7)
|
|
|
|
(3)
|
|
|
|
|
(74)
|
|
|
|
(26)
|
|
|
|
(206)
|
|
Operating Net Income
Applicable to Common
Shareholders (a non-GAAP measure)
|
|
$
|
9,048
|
|
|
$
|
9,627
|
|
|
|
$
|
14,654
|
|
|
$
|
31,381
|
|
|
$
|
41,258
|
|
Weighted Average
Diluted Shares
|
|
|
7,862,584
|
|
|
|
7,854,955
|
|
|
|
|
7,018,832
|
|
|
|
7,848,061
|
|
|
|
7,010,197
|
|
Operating Diluted
Earnings Per Share
(a non-GAAP measure)
|
|
$
|
1.15
|
|
|
$
|
1.23
|
|
|
|
$
|
2.09
|
|
|
$
|
4.00
|
|
|
$
|
5.89
|
|
|
|
(1)
|
The Company recorded
merger expenses of $2.6 million associated with the Eastern merger
for the three and nine months ended September 30, 2023, and $3.6
million of merger expenses for the nine months ended September 30,
2023 associated with the Northmark merger.
|
(2)
|
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.
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
|
September 30,
2022
|
|
|
|
(dollars in
thousands)
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
|
526,031
|
|
|
$
|
527,004
|
|
|
$
|
517,552
|
|
|
$
|
446,290
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,312)
|
|
|
|
(71,535)
|
|
|
|
(71,982)
|
|
|
|
(54,258)
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
454,719
|
|
|
$
|
455,469
|
|
|
$
|
445,570
|
|
|
$
|
392,032
|
|
Total assets
(GAAP)
|
|
$
|
5,452,030
|
|
|
$
|
5,489,622
|
|
|
$
|
5,559,737
|
|
|
$
|
5,143,359
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,312)
|
|
|
|
(71,535)
|
|
|
|
(71,982)
|
|
|
|
(54,258)
|
|
Tangible assets (a
non-GAAP measure)
|
|
$
|
5,380,718
|
|
|
$
|
5,418,087
|
|
|
$
|
5,487,755
|
|
|
$
|
5,089,101
|
|
Tangible Common Equity
Ratio (a non-GAAP
measure)
|
|
|
8.45
|
%
|
|
|
8.41
|
%
|
|
|
8.12
|
%
|
|
|
7.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
454,719
|
|
|
$
|
455,469
|
|
|
$
|
445,570
|
|
|
$
|
392,032
|
|
Common shares
outstanding
|
|
|
7,846,041
|
|
|
|
7,845,868
|
|
|
|
7,796,440
|
|
|
|
7,007,113
|
|
Tangible Book Value
Per Share (a non-GAAP measure)
|
|
$
|
57.96
|
|
|
$
|
58.05
|
|
|
$
|
57.15
|
|
|
$
|
55.95
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
June
30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Efficiency Ratio:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
29,649
|
|
|
$
|
30,345
|
|
|
$
|
26,341
|
|
|
$
|
88,322
|
|
|
$
|
78,513
|
|
Net interest and
dividend income
|
|
$
|
28,647
|
|
|
$
|
29,761
|
|
|
$
|
36,278
|
|
|
$
|
92,656
|
|
|
$
|
102,328
|
|
Total noninterest
income
|
|
|
10,549
|
|
|
|
10,029
|
|
|
|
10,443
|
|
|
|
31,293
|
|
|
|
32,946
|
|
Total
revenue
|
|
$
|
39,196
|
|
|
$
|
39,790
|
|
|
$
|
46,721
|
|
|
$
|
123,949
|
|
|
$
|
135,274
|
|
Efficiency
Ratio
|
|
|
75.64
|
%
|
|
|
76.26
|
%
|
|
|
56.38
|
%
|
|
|
71.26
|
%
|
|
|
58.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency
Ratio: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
29,649
|
|
|
$
|
30,345
|
|
|
$
|
26,341
|
|
|
$
|
88,322
|
|
|
$
|
78,513
|
|
Mergers and contractual
termination expenses
(Pretax)
|
|
|
(2,567)
|
|
|
|
(3,491)
|
|
|
|
(150)
|
|
|
|
(6,482)
|
|
|
|
(396)
|
|
Operating expense (a
non-GAAP measure)
|
|
$
|
27,082
|
|
|
$
|
26,854
|
|
|
$
|
26,191
|
|
|
$
|
81,840
|
|
|
$
|
78,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
39,196
|
|
|
$
|
39,790
|
|
|
$
|
46,721
|
|
|
$
|
123,949
|
|
|
$
|
135,274
|
|
Death benefit on bank
owned life insurance
("BOLI") and policy
surrender (Pretax)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Operating revenue (a
non-GAAP measure)
|
|
$
|
39,196
|
|
|
$
|
39,790
|
|
|
$
|
46,721
|
|
|
$
|
123,949
|
|
|
$
|
134,117
|
|
Operating Efficiency
Ratio (a non-GAAP measure)
|
|
|
69.09
|
%
|
|
|
67.49
|
%
|
|
|
56.06
|
%
|
|
|
66.03
|
%
|
|
|
58.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
June
30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Operating Return on
Tangible Common Equity: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,055
|
|
|
$
|
9,630
|
|
|
$
|
14,728
|
|
|
$
|
31,407
|
|
|
$
|
41,464
|
|
Average common
equity
|
|
$
|
527,059
|
|
|
$
|
525,766
|
|
|
$
|
445,487
|
|
|
$
|
524,277
|
|
|
$
|
439,611
|
|
Average goodwill and
merger related intangibles
|
|
|
(71,432)
|
|
|
|
(71,646)
|
|
|
|
(54,304)
|
|
|
|
(71,650)
|
|
|
|
(54,394)
|
|
Average tangible common
equity (a non-GAAP
measure)
|
|
$
|
455,627
|
|
|
$
|
454,120
|
|
|
$
|
391,183
|
|
|
$
|
452,627
|
|
|
$
|
385,217
|
|
Operating Return on
Tangible Common Equity (a
non-GAAP measure)
|
|
|
7.88
|
%
|
|
|
8.51
|
%
|
|
|
14.94
|
%
|
|
|
9.28
|
%
|
|
|
14.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return on
Average Assets: (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
9,055
|
|
|
$
|
9,630
|
|
|
$
|
14,728
|
|
|
$
|
31,407
|
|
|
$
|
41,464
|
|
Average
assets
|
|
$
|
5,460,333
|
|
|
$
|
5,495,662
|
|
|
$
|
5,097,166
|
|
|
$
|
5,499,389
|
|
|
$
|
5,023,941
|
|
Operating Return on
Average Assets (a non-GAAP
measure)
|
|
|
0.66
|
%
|
|
|
0.70
|
%
|
|
|
1.15
|
%
|
|
|
0.76
|
%
|
|
1.10 %
|
|
|
|
(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