CAMBRIDGE, Mass., April 25,
2023 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC)
(the "Company"), the parent company of Cambridge Trust Company (the
"Bank"), today announced unaudited net income of $12.4 million for the quarter ended
March 31, 2023, an increase of $1.1
million, or 9.7%, as compared to net income of $11.3 million for the quarter ended December 31, 2022. Diluted earnings per share
were $1.58 for the quarter ended
March 31, 2023, representing an increase of $0.14, or 9.7%, as compared to diluted earnings
per share of $1.44 for the quarter
ended December 31, 2022.
The results for the quarter ended March 31, 2023 include
non-operating items, 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
$12.7 million for the quarter ended
March 31, 2023, a decrease of $2.3
million, or 15.4%, as compared to operating net income of
$15.0 million for the quarter ended
December 31, 2022. Operating diluted
earnings per share were $1.62 for the
quarter ended March 31, 2023, representing a decrease of
$0.30, or 15.6%, as compared to
operating diluted earnings per share of $1.92 for the quarter ended December 31,
2022.
First Quarter 2023 Highlights:
- Financial performance ratios for the quarter ended March 31, 2023 were as follows:
-
- Return on Average Assets ("ROA") of 0.91% and Operating Return
on Average Assets of 0.93%.
- Return on Average Equity of 9.68% and Operating Return on
Tangible Common Shareholders' Equity ("ROTCE") of 11.52%.
- Asset quality at March 31, 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 9.51% at
March 31, 2023, from 9.31% at
December 31, 2022. The tangible
common equity to tangible assets ratio increased to 8.32% at
March 31, 2023, from 8.12% at
December 31, 2022.
- Book value per share at March 31,
2023 increased to $67.14 from
$66.38 at December 31, 2022. Tangible book value per share
at March 31, 2023 increased to
$57.98 from $57.15 at December 31,
2022.
- Available sources of liquidity at March
31, 2023 totaled approximately $2.7
billion. This is approximately two times the amount of
uninsured deposits at March 31,
2023.
Balance Sheet
Total assets decreased by $31.2
million, or 0.6%, from $5.56
billion at December 31, 2022 to $5.53 billion at March 31, 2023.
Total loans decreased by $44.8
million, or 1.1%, from $4.06
billion at December 31, 2022 to $4.02 billion at March 31, 2023.
- Residential real estate loans decreased by $17.1 million, from $1.65
billion at December 31, 2022
to $1.63 billion at March 31, 2023.
- Home Equity loans decreased by $9.6
million, from $111.4 million
at December 31, 2022 to $101.7 million at March
31, 2023.
- Commercial real estate loans decreased by $8.4 million, from $1.91
billion at December 31, 2022
to $1.91 billion at March 31, 2023.
- Commercial and industrial loans decreased by $7.0 million, from $350.7
million at December 31, 2022
to $343.7 million at March 31, 2023.
The Company's total investment securities portfolio decreased by
$22.4 million, or 1.9%, from
$1.21 billion at December 31,
2022 to $1.18 billion at
March 31, 2023.
Total deposits decreased by $158.6
million, or 3.3%, to $4.66
billion at March 31, 2023, as compared to $4.82 billion at December 31, 2022.
Excluding wholesale deposits, total deposits decreased by
$300.2 million, or 6.8% at
March 31, 2023 from December 31, 2022.
- The majority of the decrease in non-wholesale deposits in the
first quarter occurred in the first two months through February,
totaling $218.9 million, or 4.9%, as
clients moved funds to take advantage of higher yields following
recent rate increases. The month of March saw net non-wholesale
deposit outflows of $81.1 million, or
1.9%, due to the banking industry challenges. Almost half of this
amount ($38.0 million) moved to the
Bank's Wealth Management division.
- Certificates of deposit totaled $752.1
million at March 31, 2023, an
increase of $165.5 million from
$586.6 million at December 31, 2022, primarily due to increases in
wholesale certificates of deposit. Total wholesale certificates of
deposit, which are included within certificates of deposit, were
$523.2 million and $381.6 million at March
31, 2023 and December 31,
2022, respectively.
- The cost of total deposits was 1.36% for the quarter ended
March 31, 2023, as compared to 0.66%
for the quarter ended December 31,
2022. The cost of total deposits excluding wholesale
deposits was 1.01% for the quarter ended March 31, 2023, as compared to 0.45% for the
quarter ended December 31, 2022. At
March 31, 2023, the spot cost of
non-wholesale deposits was 1.28%, as compared 0.80% at the quarter
ended December 31, 2022.
- The estimated level of uninsured deposits was 33.1% of total
deposits at March 31, 2023, as
compared to 51.8% of total deposits at December 31, 2022.
Borrowings totaled $241.0 million
at March 31, 2023, representing a $135.8 million increase from $105.2 million at December 31, 2022, due to
fluctuations in liquidity as a result of reduced deposit funding
and an increase in cash balances.
Net Interest and Dividend Income
Net interest and dividend income, before the provision for
credit losses, decreased by $6.6
million, or 16.2%, to $34.2
million for the quarter ended March 31, 2023, from
$40.9 million for the quarter ended
December 31, 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 45 basis points to 2.63% for the quarter
ended March 31, 2023, as compared to 3.08% for the quarter
ended December 31, 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 quarter ended March 31, 2023, was
2.58%, representing a 43 basis point decrease from the adjusted net
interest margin, on a fully taxable equivalent basis, of 3.01% for
the quarter ended December 31,
2022.
|
|
Three Months
Ended
|
|
|
|
March 31,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,312,194
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
34,431
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.63
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(643)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis
(non-GAAP)
|
|
$
|
5,312,194
|
|
|
$
|
33,788
|
|
|
|
2.58
|
%
|
Provision for Credit Losses
During the quarter ended March 31, 2023 the Company
recorded a provision for credit losses of $60,000, as compared to a provision for credit
losses of $3.7 million for the
quarter ended December 31, 2022.
The provision for credit losses during the quarter ended
December 31, 2022 included the impact
of the merger with Northmark Bank on the Company's allowance for
credit losses under the current expected credit loss ("CECL")
accounting standard. CECL requires the removal of Northmark Bank's
prior allowance for loan losses through the balance sheet as
goodwill and re-establishment of a new allowance for credit losses
through the income statement within the provision for credit
losses.
Noninterest Income
Total noninterest income increased by $652,000, or 6.5%, to $10.7 million for the quarter ended
March 31, 2023, as compared to $10.1
million for the quarter ended December 31, 2022. This change was primarily the
result of higher other income and higher loan related
derivative income, partially offset by lower wealth management
revenue. Noninterest income was 23.8% of total revenue for the
quarter ended March 31, 2023.
- Other income increased by $483,000, or 100.4%, to $964,000 for the quarter ended March 31, 2023, as compared to $481,000 for the quarter ended December 31, 2022, primarily due to success fees
associated with Innovation Banking loans in addition to gains
recognized on a community development fund investment.
- Loan related derivative income increased by $163,000, or 229.6%, to $234,000 for the quarter ended March 31, 2023, as compared to $71,000 for the quarter ended December 31, 2022, primarily as a result of
higher volume of loan related derivative transactions.
- Wealth management revenue decreased by $162,000, or 2.0%, to $7.9
million for the quarter ended March
31, 2023, as compared to $8.1
million for the quarter ended December 31, 2022. Wealth Management Assets under
Management and Administration were $4.3
billion at March 31, 2023, an
increase of $207.5 million, or 5.1%,
from $4.1 billion at December 31, 2022, primarily due to positive
returns in both the bond and equity markets.
Noninterest Expense
Total noninterest expense decreased by $3.5 million, or 11.1%, to $28.3 million for the quarter ended
March 31, 2023, as compared to $31.9
million for the quarter ended December 31, 2022. During the quarter ended
March 31, 2023, there was a decrease in non-operating
expenses, professional services, and marketing expense, partially
offset by an increase in salary and benefits expense, as compared
to the quarter ended December 31,
2022.
- Non-operating expense decreased by $2.2
million, or 84.1%, to $424,000
for the quarter ended March 31, 2023,
from $2.7 million for the quarter
ended December 31, 2022, primarily
due to lower merger related expenses and contractual termination
costs that were expensed during the quarter ended December 31, 2022.
- Professional fees decreased by $722,000, or 39.1%, to $1.1 million for the quarter ended March 31, 2023, from $1.8
million for the quarter ended December 31, 2022, primarily due to lower
consulting fees associated with vendor contract negotiations and
lower legal expenses associated with contract reviews and
regulatory filings that were expensed during the quarter ended
December 31, 2022.
- Marketing expense decreased by $702,000, or 62.2%, to $426,000 for the quarter ended March 31, 2023, from $1.1
million for the quarter ended December 31, 2022, primarily due to the timing of
marketing spend.
- Salary and employee benefits expense increased by $159,000, or 0.9%, to $18.5 million for the quarter ended March 31, 2023, from $18.3
million for the quarter ended December 31, 2022, primarily due to the
seasonality of higher employee benefit costs during the first
quarter combined with regular merit increases, partially offset by
lower variable compensation expenses and reductions in positions
within the residential lending group as a result of lower loan
volume.
Asset Quality
Non-performing loans totaled $7.3
million, or 0.18% of total loans outstanding at
March 31, 2023. The allowance for credit losses was
$38.0 million, or 0.95% of total
loans outstanding at March 31, 2023, as compared to
$37.8 million, or 0.93% of total
loans outstanding at December 31,
2022.
The Company recorded net loan recoveries of $6,000, or 0.00% of total loans (annualized), for
the quarter ended March 31, 2023, as compared to net loan
recoveries of $16,000, or 0.00% of
total loans (annualized), for the quarter ended December 31, 2022.
The following table shows additional and historical information
regarding non-performing assets and early-stage delinquency (30-89
days delinquent):
|
|
Non-performing
Assets
|
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
March 31,
2022
|
|
|
|
(dollars in
thousands)
|
|
Non-performing
assets
|
|
$
|
7,262
|
|
|
$
|
6,542
|
|
|
$
|
5,943
|
|
Non-performing
loans/total loans
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.17
|
%
|
Non-performing
assets/total assets
|
|
|
0.13
|
%
|
|
|
0.12
|
%
|
|
|
0.12
|
%
|
|
|
Additional Asset
Quality Indicators
|
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
March 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans 30-89
days past due/total loans
|
|
|
0.39
|
%
|
|
|
0.36
|
%
|
|
|
0.41
|
%
|
Quarterly net
recoveries (charge-offs)/total loans (annualized)
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Year to date net
recoveries (charge-offs)/total loans
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Allowance for credit
losses/nonperforming loans
|
|
|
523.35
|
%
|
|
|
577.41
|
%
|
|
|
573.95
|
%
|
Allowance for credit
losses/total loans
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
1.00
|
%
|
Income Taxes
The Company's effective tax rate was 25.1% for the quarter ended
March 31, 2023 as compared to 26.5% for the quarter ended
December 31, 2022.
Dividend and Capital
On April 24, 2023, the Company's
Board of Directors declared a quarterly cash dividend of
$0.67 per share, which is payable on
May 25, 2023, to shareholders of
record as of the close of business on May
11, 2023. The Company did not repurchase any shares under
its previously announced share repurchase program during the three
months ended March 31, 2023.
The Company's common equity to assets ratio increased to 9.51%
at March 31, 2023, from 9.31% at December 31, 2022. The ratio of tangible common
equity to tangible assets increased to 8.32% at March 31, 2023
from 8.12% at December 31, 2022.
Book value per share at March 31, 2023 increased to
$67.14 from $66.38 at December 31,
2022. Tangible book value per share increased by
$0.83, or 1.5%, to $57.98 at March 31, 2023, as compared to
$57.15 at December 31, 2022, primarily as a result of
increased earnings during the quarter ended 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,
April 25, 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/10175579/f5e1013342.
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://ir.cambridgetrust.com/news-market-information/event-calendar/default.aspx.
About Cambridge Bancorp
Cambridge Bancorp, the parent company of Cambridge Trust
Company, is based in Cambridge,
Massachusetts. Cambridge Trust Company is a 132-year-old
Massachusetts chartered commercial
bank with approximately $5.5 billion
in assets at March 31, 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 March 31, 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 and Northmark Bank 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 nonperforming 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
Michael F. Carotenuto
Chief Financial Officer
617-520-5520
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
QUARTERLY UNAUDITED
RESULTS
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
March 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
(dollars in
thousands, except per share data)
|
Interest and Dividend
Income
|
|
$
|
51,742
|
|
|
$
|
49,544
|
|
|
$
|
33,898
|
|
|
Interest
Expense
|
|
|
17,494
|
|
|
|
8,657
|
|
|
|
2,029
|
|
|
Net Interest and
Dividend Income
|
|
|
34,248
|
|
|
|
40,887
|
|
|
|
31,869
|
|
|
Provision for (Release
of) Credit Losses
|
|
|
60
|
|
|
|
3,681
|
|
|
|
(412)
|
|
|
Noninterest
Income
|
|
|
10,715
|
|
|
|
10,063
|
|
|
|
11,354
|
|
|
Noninterest
Expense
|
|
|
28,328
|
|
|
|
31,869
|
|
|
|
25,875
|
|
|
Income Before Income
Taxes
|
|
|
16,575
|
|
|
|
15,400
|
|
|
|
17,760
|
|
|
Income Tax
Expense
|
|
|
4,159
|
|
|
|
4,081
|
|
|
|
4,444
|
|
|
Net
Income
|
|
$
|
12,416
|
|
|
$
|
11,319
|
|
|
$
|
13,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net
Income*
|
|
$
|
12,722
|
|
|
$
|
15,045
|
|
|
$
|
13,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share
|
|
$
|
1.59
|
|
|
$
|
1.45
|
|
|
$
|
1.91
|
|
|
Diluted Earnings
Per Share
|
|
|
1.58
|
|
|
|
1.44
|
|
|
|
1.89
|
|
|
Operating Diluted
Earnings Per Share*
|
|
|
1.62
|
|
|
|
1.92
|
|
|
|
1.89
|
|
|
Dividends
Declared Per Share
|
|
|
0.67
|
|
|
|
0.64
|
|
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,792,474
|
|
|
|
7,761,193
|
|
|
|
6,948,040
|
|
|
Diluted
|
|
|
7,826,162
|
|
|
|
7,819,574
|
|
|
|
7,010,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin, FTE
|
|
|
2.63
|
%
|
|
|
3.08
|
%
|
|
|
2.74
|
%
|
|
Adjusted Net
Interest Margin, FTE
|
|
|
2.58
|
%
|
|
|
3.01
|
%
|
|
|
2.67
|
%
|
|
Cost of
Funds
|
|
|
1.34
|
%
|
|
|
0.65
|
%
|
|
|
0.17
|
%
|
|
Cost of
Interest-Bearing Liabilities
|
|
|
1.96
|
%
|
|
|
1.02
|
%
|
|
|
0.27
|
%
|
|
Cost of
Deposits
|
|
|
1.36
|
%
|
|
|
0.66
|
%
|
|
|
0.17
|
%
|
|
Cost of Deposits
excluding Wholesale Deposits
|
|
|
1.01
|
%
|
|
|
0.45
|
%
|
|
|
0.17
|
%
|
|
Return on Average
Assets
|
|
|
0.91
|
%
|
|
|
0.81
|
%
|
|
|
1.09
|
%
|
|
Return on Average
Equity
|
|
|
9.68
|
%
|
|
|
8.79
|
%
|
|
|
12.37
|
%
|
|
Efficiency
Ratio*
|
|
|
63.00
|
%
|
|
|
62.55
|
%
|
|
|
59.86
|
%
|
|
Operating Return
on Average Assets*
|
|
|
0.93
|
%
|
|
|
1.08
|
%
|
|
|
1.09
|
%
|
|
Operating Return
on Tangible Common Equity*
|
|
|
11.52
|
%
|
|
|
13.61
|
%
|
|
|
14.13
|
%
|
|
Operating
Efficiency Ratio*
|
|
|
62.06
|
%
|
|
|
57.32
|
%
|
|
|
59.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
(dollars in
thousands, except per share data)
|
|
|
Total Assets
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
|
$
|
5,018,379
|
|
|
Total Loans
|
|
$
|
4,018,082
|
|
|
$
|
4,062,856
|
|
|
$
|
3,417,213
|
|
|
Total
Deposits
|
|
$
|
4,656,776
|
|
|
$
|
4,815,376
|
|
|
$
|
4,473,735
|
|
|
Allowance for Credit
Losses
|
|
$
|
38,005
|
|
|
$
|
37,774
|
|
|
$
|
34,110
|
|
|
Allowance to Total
Loans
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
1.00
|
%
|
|
Non-Performing
Loans
|
|
$
|
7,262
|
|
|
$
|
6,542
|
|
|
$
|
5,943
|
|
|
Non-Performing
Loans/Total Loans
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.17
|
%
|
|
QTD Net Recoveries
(Charge-offs) to Total Loans (annualized)
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
Tangible Common Equity
Ratio*
|
|
|
8.32
|
%
|
|
|
8.12
|
%
|
|
|
7.69
|
%
|
|
Book Value Per
Share
|
|
$
|
67.14
|
|
|
$
|
66.38
|
|
|
$
|
62.30
|
|
|
Tangible Book Value Per
Share*
|
|
$
|
57.98
|
|
|
$
|
57.15
|
|
|
$
|
54.52
|
|
|
Wealth Management
AUM
|
|
$
|
4,005,805
|
|
|
$
|
3,875,747
|
|
|
$
|
4,464,512
|
|
|
Wealth Management AUM
& AUA
|
|
$
|
4,267,343
|
|
|
$
|
4,059,819
|
|
|
$
|
4,659,297
|
|
|
* See GAAP to
Non-GAAP Reconciliations
|
|
|
|
|
|
|
|
|
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands, except share information)
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
70,766
|
|
|
$
|
30,719
|
|
Investment
securities
|
|
|
|
|
|
|
Available for sale, at
fair value (amortized cost $178,186 and $182,027,
respectively)
|
|
|
152,183
|
|
|
|
153,416
|
|
Held to maturity, at
amortized cost (fair value $879,323 and $885,586,
respectively)
|
|
|
1,030,858
|
|
|
|
1,051,997
|
|
Total investment
securities
|
|
|
1,183,041
|
|
|
|
1,205,413
|
|
Loans
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
1,631,751
|
|
|
|
1,648,838
|
|
Commercial
mortgage
|
|
|
1,906,018
|
|
|
|
1,914,423
|
|
Home equity
|
|
|
101,715
|
|
|
|
111,351
|
|
Commercial and
industrial
|
|
|
343,686
|
|
|
|
350,650
|
|
Consumer
|
|
|
34,912
|
|
|
|
37,594
|
|
Total loans
|
|
|
4,018,082
|
|
|
|
4,062,856
|
|
Less: allowance for
credit losses on loans
|
|
|
(38,005)
|
|
|
|
(37,774)
|
|
Net loans
|
|
|
3,980,077
|
|
|
|
4,025,082
|
|
Federal Home Loan Bank
of Boston Stock, at cost
|
|
|
12,172
|
|
|
|
6,264
|
|
Bank owned life
insurance
|
|
|
34,674
|
|
|
|
34,484
|
|
Banking premises and
equipment, net
|
|
|
22,941
|
|
|
|
23,297
|
|
Right-of-use asset
operating leases
|
|
|
23,855
|
|
|
|
25,098
|
|
Deferred income taxes,
net
|
|
|
14,598
|
|
|
|
17,990
|
|
Accrued interest
receivable
|
|
|
14,129
|
|
|
|
14,118
|
|
Goodwill
|
|
|
64,539
|
|
|
|
64,539
|
|
Merger-related
intangibles, net
|
|
|
7,219
|
|
|
|
7,443
|
|
Other assets
|
|
|
100,573
|
|
|
|
105,290
|
|
Total
assets
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
Liabilities
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Demand
|
|
$
|
1,166,643
|
|
|
$
|
1,366,395
|
|
Interest-bearing
checking
|
|
|
1,071,165
|
|
|
|
908,961
|
|
Money
market
|
|
|
998,465
|
|
|
|
1,162,773
|
|
Savings
|
|
|
668,385
|
|
|
|
790,628
|
|
Certificates of
deposit
|
|
|
752,118
|
|
|
|
586,619
|
|
Total
deposits
|
|
|
4,656,776
|
|
|
|
4,815,376
|
|
Borrowings
|
|
|
240,997
|
|
|
|
105,212
|
|
Operating lease
liabilities
|
|
|
26,082
|
|
|
|
27,413
|
|
Other
liabilities
|
|
|
78,780
|
|
|
|
94,184
|
|
Total
liabilities
|
|
|
5,002,635
|
|
|
|
5,042,185
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
Common stock, par value
$1.00; Authorized: 10,000,000 shares; Outstanding: 7,833,997 shares
and 7,796,440 shares, respectively
|
|
|
7,834
|
|
|
|
7,796
|
|
Additional paid-in
capital
|
|
|
292,250
|
|
|
|
293,186
|
|
Retained
earnings
|
|
|
244,561
|
|
|
|
237,369
|
|
Accumulated other
comprehensive loss
|
|
|
(18,696)
|
|
|
|
(20,799)
|
|
Total shareholders'
equity
|
|
|
525,949
|
|
|
|
517,552
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share amounts)
|
|
Interest and dividend
income
|
|
|
|
|
|
|
|
|
|
Interest on taxable
loans
|
|
$
|
45,333
|
|
|
$
|
43,270
|
|
|
$
|
28,404
|
|
Interest on tax-exempt
loans
|
|
|
376
|
|
|
|
376
|
|
|
|
350
|
|
Interest on taxable
investment securities
|
|
|
5,050
|
|
|
|
5,054
|
|
|
|
4,411
|
|
Interest on tax-exempt
investment securities
|
|
|
585
|
|
|
|
595
|
|
|
|
654
|
|
Dividends on FHLB of
Boston stock
|
|
|
72
|
|
|
|
124
|
|
|
|
25
|
|
Interest on overnight
investments
|
|
|
326
|
|
|
|
125
|
|
|
|
54
|
|
Total interest and
dividend income
|
|
|
51,742
|
|
|
|
49,544
|
|
|
|
33,898
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
15,944
|
|
|
|
8,012
|
|
|
|
1,896
|
|
Interest on borrowed
funds
|
|
|
1,550
|
|
|
|
645
|
|
|
|
133
|
|
Total interest
expense
|
|
|
17,494
|
|
|
|
8,657
|
|
|
|
2,029
|
|
Net interest and
dividend income
|
|
|
34,248
|
|
|
|
40,887
|
|
|
|
31,869
|
|
Provision for (Release
of) credit losses
|
|
|
60
|
|
|
|
3,681
|
|
|
|
(412)
|
|
Net interest and
dividend income after provision for (release
of) credit losses
|
|
|
34,188
|
|
|
|
37,206
|
|
|
|
32,281
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
Wealth management
revenue
|
|
|
7,937
|
|
|
|
8,099
|
|
|
|
8,574
|
|
Deposit account
fees
|
|
|
869
|
|
|
|
834
|
|
|
|
506
|
|
ATM/Debit card
income
|
|
|
511
|
|
|
|
444
|
|
|
|
379
|
|
Bank owned life
insurance income
|
|
|
187
|
|
|
|
134
|
|
|
|
187
|
|
Gain on loans sold,
net
|
|
|
13
|
|
|
|
—
|
|
|
|
94
|
|
Loan related
derivative income
|
|
|
234
|
|
|
|
71
|
|
|
|
296
|
|
Other
income
|
|
|
964
|
|
|
|
481
|
|
|
|
1,318
|
|
Total noninterest
income
|
|
|
10,715
|
|
|
|
10,063
|
|
|
|
11,354
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
18,488
|
|
|
|
18,329
|
|
|
|
17,391
|
|
Occupancy and
equipment
|
|
|
3,747
|
|
|
|
3,698
|
|
|
|
3,542
|
|
Data
processing
|
|
|
2,641
|
|
|
|
2,868
|
|
|
|
2,645
|
|
Professional
services
|
|
|
1,123
|
|
|
|
1,845
|
|
|
|
1,064
|
|
Marketing
|
|
|
426
|
|
|
|
1,128
|
|
|
|
224
|
|
FDIC
insurance
|
|
|
379
|
|
|
|
465
|
|
|
|
455
|
|
Non-operating
expenses
|
|
|
424
|
|
|
|
2,663
|
|
|
|
—
|
|
Other
expenses
|
|
|
1,100
|
|
|
|
873
|
|
|
|
554
|
|
Total noninterest
expense
|
|
|
28,328
|
|
|
|
31,869
|
|
|
|
25,875
|
|
Income before income
taxes
|
|
|
16,575
|
|
|
|
15,400
|
|
|
|
17,760
|
|
Income tax
expense
|
|
|
4,159
|
|
|
|
4,081
|
|
|
|
4,444
|
|
Net income
|
|
$
|
12,416
|
|
|
$
|
11,319
|
|
|
$
|
13,316
|
|
Share data:
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
7,792,474
|
|
|
|
7,761,193
|
|
|
|
6,948,040
|
|
Weighted average
shares outstanding, diluted
|
|
|
7,826,162
|
|
|
|
7,819,574
|
|
|
|
7,010,983
|
|
Basic earnings per
share
|
|
$
|
1.59
|
|
|
$
|
1.45
|
|
|
$
|
1.91
|
|
Diluted earnings per
share
|
|
$
|
1.58
|
|
|
$
|
1.44
|
|
|
$
|
1.89
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
MARGIN & YIELD
ANALYSIS
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
March 31,
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
|
|
$
|
3,986,380
|
|
|
$
|
45,333
|
|
|
|
4.61
|
%
|
|
$
|
3,943,279
|
|
|
$
|
43,270
|
|
|
|
4.35
|
%
|
|
$
|
3,314,082
|
|
|
$
|
28,404
|
|
|
|
3.48
|
%
|
Tax-exempt
|
|
|
51,028
|
|
|
|
476
|
|
|
|
3.78
|
|
|
|
49,777
|
|
|
|
476
|
|
|
|
3.79
|
|
|
|
46,702
|
|
|
|
443
|
|
|
|
3.85
|
|
Securities available
for
sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
180,510
|
|
|
|
713
|
|
|
|
1.60
|
|
|
|
185,452
|
|
|
|
681
|
|
|
|
1.46
|
|
|
|
203,193
|
|
|
|
650
|
|
|
|
1.30
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
948,233
|
|
|
|
4,337
|
|
|
|
1.85
|
|
|
|
968,319
|
|
|
|
4,373
|
|
|
|
1.79
|
|
|
|
937,047
|
|
|
|
3,761
|
|
|
|
1.63
|
|
Tax-exempt
|
|
|
95,212
|
|
|
|
740
|
|
|
|
3.15
|
|
|
|
96,859
|
|
|
|
753
|
|
|
|
3.08
|
|
|
|
104,837
|
|
|
|
828
|
|
|
|
3.20
|
|
Cash and cash
equivalents
|
|
|
50,831
|
|
|
|
326
|
|
|
|
2.60
|
|
|
|
39,519
|
|
|
|
125
|
|
|
|
1.25
|
|
|
|
147,977
|
|
|
|
54
|
|
|
|
0.15
|
|
Total
interest-earning
assets (4)
|
|
|
5,312,194
|
|
|
|
51,925
|
|
|
|
3.96
|
%
|
|
|
5,283,205
|
|
|
|
49,678
|
|
|
|
3.73
|
%
|
|
|
4,753,838
|
|
|
|
34,140
|
|
|
|
2.91
|
%
|
Non-interest-earning
assets
|
|
|
268,670
|
|
|
|
|
|
|
|
|
|
278,799
|
|
|
|
|
|
|
|
|
|
238,864
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(37,784)
|
|
|
|
|
|
|
|
|
|
(36,603)
|
|
|
|
|
|
|
|
|
|
(34,780)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,543,080
|
|
|
|
|
|
|
|
|
$
|
5,525,401
|
|
|
|
|
|
|
|
|
$
|
4,957,922
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
880,040
|
|
|
$
|
2,025
|
|
|
|
0.93
|
%
|
|
$
|
802,687
|
|
|
$
|
1,051
|
|
|
|
0.52
|
%
|
|
$
|
764,706
|
|
|
$
|
44
|
|
|
|
0.02
|
%
|
Savings
accounts
|
|
|
771,219
|
|
|
|
1,357
|
|
|
|
0.71
|
|
|
|
878,786
|
|
|
|
811
|
|
|
|
0.37
|
|
|
|
923,168
|
|
|
|
177
|
|
|
|
0.08
|
|
Money market
accounts
|
|
|
1,129,934
|
|
|
|
6,462
|
|
|
|
2.32
|
|
|
|
1,089,768
|
|
|
|
2,895
|
|
|
|
1.05
|
|
|
|
1,187,173
|
|
|
|
1,570
|
|
|
|
0.54
|
|
Certificates of
deposit
|
|
|
692,644
|
|
|
|
6,100
|
|
|
|
3.57
|
|
|
|
527,770
|
|
|
|
3,255
|
|
|
|
2.45
|
|
|
|
144,114
|
|
|
|
105
|
|
|
|
0.30
|
|
Total
interest-bearing
deposits
|
|
|
3,473,837
|
|
|
|
15,944
|
|
|
|
1.86
|
|
|
|
3,299,011
|
|
|
|
8,012
|
|
|
|
0.96
|
|
|
|
3,019,161
|
|
|
|
1,896
|
|
|
|
0.25
|
|
Other borrowed
funds
|
|
|
137,516
|
|
|
|
1,550
|
|
|
|
4.57
|
|
|
|
76,856
|
|
|
|
645
|
|
|
|
3.33
|
|
|
|
16,369
|
|
|
|
133
|
|
|
|
3.30
|
|
Total
interest-bearing
liabilities
|
|
|
3,611,353
|
|
|
|
17,494
|
|
|
|
1.96
|
%
|
|
|
3,375,867
|
|
|
|
8,657
|
|
|
|
1.02
|
%
|
|
|
3,035,530
|
|
|
|
2,029
|
|
|
|
0.27
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,290,924
|
|
|
|
|
|
|
|
|
|
1,514,810
|
|
|
|
|
|
|
|
|
|
1,388,409
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
120,877
|
|
|
|
|
|
|
|
|
|
124,004
|
|
|
|
|
|
|
|
|
|
97,373
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
5,023,154
|
|
|
|
|
|
|
|
|
|
5,014,681
|
|
|
|
|
|
|
|
|
|
4,521,312
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
519,926
|
|
|
|
|
|
|
|
|
|
510,720
|
|
|
|
|
|
|
|
|
|
436,610
|
|
|
|
|
|
|
|
Total liabilities
&
shareholders'
equity
|
|
$
|
5,543,080
|
|
|
|
|
|
|
|
|
$
|
5,525,401
|
|
|
|
|
|
|
|
|
$
|
4,957,922
|
|
|
|
|
|
|
|
Net interest income on
a
fully taxable equivalent
basis
|
|
|
|
|
|
34,431
|
|
|
|
|
|
|
|
|
|
41,021
|
|
|
|
|
|
|
|
|
|
32,111
|
|
|
|
|
Less taxable
equivalent
adjustment
|
|
|
|
|
|
(255)
|
|
|
|
|
|
|
|
|
|
(258)
|
|
|
|
|
|
|
|
|
|
(267)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
34,176
|
|
|
|
|
|
|
|
|
$
|
40,763
|
|
|
|
|
|
|
|
|
$
|
31,844
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
2.00
|
%
|
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
2.64
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.63
|
%
|
|
|
|
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
|
|
|
2.74
|
%
|
|
|
(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
|
Operating Net Income
/ Operating Diluted Earnings Per Share
|
|
March 31,
|
|
|
December
31,
|
|
|
|
March
31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
2022
|
|
|
|
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (a GAAP
measure)
|
|
$
|
12,416
|
|
|
$
|
11,319
|
|
|
|
$
|
13,316
|
|
|
Add: Merger
expenses
|
|
|
424
|
|
|
|
1,545
|
|
|
|
|
—
|
|
|
Add: Provision for
credit losses for acquired loans
|
|
|
—
|
|
|
|
2,239
|
|
|
|
|
—
|
|
|
Add: Contractual
termination expenses
|
|
|
—
|
|
|
|
1,118
|
|
|
|
|
—
|
|
|
Less: Tax effect of
non-operating expenses (1)
|
|
|
(118)
|
|
|
|
(1,176)
|
|
|
|
|
—
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
12,722
|
|
|
$
|
15,045
|
|
|
|
$
|
13,316
|
|
|
Less: Dividends and
Undistributed Earnings
Allocated to Participating Securities (a non-GAAP
measure)
|
|
|
(26)
|
|
|
|
(65)
|
|
|
|
|
(59)
|
|
|
Operating Net Income
Applicable to Common
Shareholders (a non-GAAP measure)
|
|
$
|
12,696
|
|
|
$
|
14,980
|
|
|
|
$
|
13,257
|
|
|
Weighted Average
Diluted Shares
|
|
|
7,826,162
|
|
|
|
7,819,574
|
|
|
|
|
7,010,983
|
|
|
Operating Diluted
Earnings Per Share
(a non-GAAP measure)
|
|
$
|
1.62
|
|
|
$
|
1.92
|
|
|
|
$
|
1.89
|
|
|
|
|
(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.
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
March 31,
2022
|
|
|
|
(dollars in
thousands)
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
|
525,949
|
|
|
$
|
517,552
|
|
|
$
|
436,165
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,758)
|
|
|
|
(71,982)
|
|
|
|
(54,438)
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
454,191
|
|
|
$
|
445,570
|
|
|
$
|
381,727
|
|
Total assets
(GAAP)
|
|
$
|
5,528,584
|
|
|
$
|
5,559,737
|
|
|
$
|
5,018,379
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,758)
|
|
|
|
(71,982)
|
|
|
|
(54,438)
|
|
Tangible assets (a
non-GAAP measure)
|
|
$
|
5,456,826
|
|
|
$
|
5,487,755
|
|
|
$
|
4,963,941
|
|
Tangible Common
Equity Ratio (a non-GAAP
measure)
|
|
|
8.32
|
%
|
|
|
8.12
|
%
|
|
|
7.69
|
%
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share:
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
454,191
|
|
|
$
|
445,570
|
|
|
$
|
381,727
|
|
Common shares
outstanding
|
|
|
7,833,997
|
|
|
|
7,796,440
|
|
|
|
7,000,995
|
|
Tangible Book Value
Per Share (a non-GAAP measure)
|
|
$
|
57.98
|
|
|
$
|
57.15
|
|
|
$
|
54.52
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
(dollars in
thousands)
|
Efficiency Ratio:
(1)
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
28,328
|
|
|
$
|
31,869
|
|
|
$
|
25,875
|
|
|
Net interest and
dividend income
|
|
$
|
34,248
|
|
|
$
|
40,887
|
|
|
$
|
31,869
|
|
|
Total noninterest
income
|
|
|
10,715
|
|
|
|
10,063
|
|
|
|
11,354
|
|
|
Total
revenue
|
|
$
|
44,963
|
|
|
$
|
50,950
|
|
|
$
|
43,223
|
|
|
Efficiency
Ratio
|
|
|
63.00
|
%
|
|
|
62.55
|
%
|
|
|
59.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency
Ratio: (2)
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
28,328
|
|
|
$
|
31,869
|
|
|
$
|
25,875
|
|
|
Merger expenses
(Pretax)
|
|
|
(424)
|
|
|
|
(1,545)
|
|
|
|
—
|
|
|
Contractual termination
expenses (Pretax)
|
|
|
—
|
|
|
|
(1,118)
|
|
|
|
—
|
|
|
Operating expense (a
non-GAAP measure)
|
|
$
|
27,904
|
|
|
$
|
29,206
|
|
|
$
|
25,875
|
|
|
Operating revenue (a
non-GAAP measure)
|
|
$
|
44,963
|
|
|
$
|
50,950
|
|
|
$
|
43,223
|
|
|
Operating Efficiency
Ratio (a non-GAAP measure)
|
|
|
62.06
|
%
|
|
|
57.32
|
%
|
|
|
59.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
|
|
(dollars in
thousands)
|
Operating Return on
Tangible Common Equity: (3)
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
12,722
|
|
|
$
|
15,045
|
|
|
$
|
13,316
|
|
|
Average common
equity
|
|
$
|
519,926
|
|
|
$
|
510,720
|
|
|
$
|
436,610
|
|
|
Average goodwill and
merger related intangibles
|
|
|
(71,876)
|
|
|
|
(72,110)
|
|
|
|
(54,483)
|
|
|
Average tangible common
equity (a non-GAAP measure)
|
|
$
|
448,050
|
|
|
$
|
438,610
|
|
|
$
|
382,127
|
|
|
Operating Return on
Tangible Common Equity (a non-GAAP measure)
|
|
|
11.52
|
%
|
|
|
13.61
|
%
|
|
|
14.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return on
Average Assets: (4)
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
12,722
|
|
|
$
|
15,045
|
|
|
$
|
13,316
|
|
|
Average
assets
|
|
$
|
5,543,080
|
|
|
$
|
5,525,401
|
|
|
$
|
4,957,922
|
|
|
Operating Return on
Average Assets (a non-GAAP measure)
|
|
|
0.93
|
%
|
|
|
1.08
|
%
|
|
|
1.09
|
%
|
|
|
|
(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