CAMBRIDGE, Mass., Jan. 30,
2024 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC)
(the "Company"), the parent company of Cambridge Trust Company,
today announced unaudited net income of $34.1 million for the year ended December 31, 2023, a decrease of $18.8 million, or 35.5%, as compared to net
income of $52.9 million for the year
ended December 31, 2022. Diluted
earnings per share were $4.34 for the
year ended December 31, 2023,
representing a 40.5% decrease as compared to $7.30 for the year ended December 31, 2022.
Operating net income, which excludes non-operating items, namely
merger related charges, as detailed in the accounting principles
generally accepted in the United States
of America ("GAAP") to non-GAAP reconciliations tables
within this release, was $40.2
million for the twelve months ended December 31, 2023, a decrease of $16.4 million, or 29.0%, as compared to operating
net income of $56.5 million for the
twelve months ended December 31,
2022. Operating diluted earnings per share were $5.12 for the twelve months ended December 31, 2023, representing a decrease of
$2.68, or 34.4%, as compared to
operating diluted earnings per share of $7.80 for the twelve months ended December 31, 2022.
For the three months ended December 31,
2023, unaudited net income was $8.0
million, an increase of $1.5
million, or 22.8%, as compared to net income of $6.5 million for the three months ended
September 30, 2023. Diluted earnings
per share were $1.02 for the three
months ended December 31, 2023,
representing a 22.9% increase as compared to $0.83 for the three months ended September 30, 2023.
Operating net income was $8.7
million for the three months ended December 31, 2023, a decrease of $357,000, or 3.9%, as compared to $9.1 million for the three months ended
September 30, 2023. Operating diluted
earnings per share were $1.11 for the
three months ended December 31, 2023,
representing a decrease of $0.04, or
3.5%, as compared to operating diluted earnings per share of
$1.15 for the three months ended
September 30, 2023.
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"). 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 Cambridge
Bancorp Chief Executive Officer, Denis K.
Sheahan, will assume the role of Chief Executive Officer of
Eastern.
"We navigated through 2023 with strong liquidity and robust
capital levels, despite a challenging environment in terms of
interest rates and the impact to deposit and loan growth. The
timeline for the planned merger with Eastern Bank is progressing as
anticipated. Our clients will learn more about the robust
capability of Eastern Bank as the timeline for the merger closing
and system conversion approaches," noted Denis K. Sheahan, Chairman, President and
CEO.
Fourth Quarter 2023 Highlights:
- Financial performance ratios for the three months ended
December 31, 2023 were as follows:
- Return on Average Assets ("ROA") of 0.59% and Operating ROA of
0.64%.
- Return on Average Equity of 6.06% and Operating Return on
Tangible Common Shareholders' Equity (ROTCE) of 7.61%.
- Asset quality ratios at December 31, 2023: non-performing
loans to total loans and non-performing assets to total assets at
0.41% and 0.31%, respectively.
- The common equity to assets ratio increased to 9.87% at
December 31, 2023 from 9.65% at September 30, 2023. The tangible common equity to
tangible assets ratio increased to 8.67% at December 31, 2023
from 8.45% at September 30,
2023.
- Available sources of liquidity at December 31, 2023 totaled approximately
$2.6 billion. This is approximately
two times the amount of uninsured deposits at December 31, 2023.
Balance Sheet
Total assets decreased by $34.4 million, or 0.6%, from $5.45 billion at September
30, 2023 to $5.42 billion at
December 31, 2023.
Total loans were flat for the quarter and stood at $4.02 billion at both September 30, 2023 and December 31,
2023.
- Residential real estate loans remained relatively flat and
totaled $1.63 billion at both
September 30, 2023 and
December 31, 2023.
- Commercial real estate loans increased by $9.0 million, from $1.92
billion at September 30, 2023
to $1.93 billion at December 31,
2023.
- Home equity loans increased by $2.3
million, from $93.4 million at
September 30, 2023 to $95.6 million at December 31, 2023.
- Commercial and industrial loans decreased by $12.1 million, or 3.4%, from $355.8 million at September 30, 2023 to $343.7 million at December 31, 2023,
primarily due to pay-downs during the period.
- Consumer loans decreased by $4.4
million, or 15.4%, from $28.9
million at September 30, 2023
to $24.4 million at December 31, 2023.
The Company's total investment securities portfolio decreased by
$19.7 million, or 1.8%, from
$1.12 billion at September 30, 2023 to $1.10 billion at December
31, 2023, primarily due to pay-downs of $23.0 million during the period, partially offset
by a decrease in unrealized losses.
Total deposits, excluding wholesale deposits, decreased by
$53.1 million or 1.3%, from
$4.08 billion at September 30, 2023 and totaled $4.03 billion at December 31, 2023, as the
deposit market remains competitive. Total deposits, inclusive of
wholesale deposits, decreased by $244.7
million, or 5.4%, to $4.32
billion at December 31, 2023, as compared to
$4.57 billion at September 30, 2023, primarily due to lower
wholesale deposit balances. During the period, the Company utilized
lower cost Federal Home Loan Bank of Boston ("FHLB Boston") funding to replace
higher priced wholesale certificates of deposit.
- Certificates of deposit totaled $674.4
million at December 31, 2023, representing a decrease
of $154.0 million, or 18.6%, from
$828.4 million at September 30, 2023, primarily driven by
lower wholesale deposit balances. Total wholesale
certificates of deposit, which are included within certificates of
deposit, were $291.7 million and
$483.3 million at December 31,
2023 and September 30, 2023,
respectively. The Company migrated wholesale funding toward FHLB
Boston borrowings during the quarter.
- The cost of total deposits was 2.19% for the three months ended
December 31, 2023, as compared to
2.09% for the three months ended September
30, 2023. The cost of total deposits excluding wholesale
deposits was 1.89% for the three months ended December 31, 2023, as compared to 1.74% for the
three months ended September 30,
2023. At December 31, 2023,
the spot cost of non-wholesale deposits was 1.88%, as compared to
1.82% at September 30, 2023.
Borrowings totaled $452.2 million
at December 31, 2023, representing a $218.3 million increase from $233.9 million at September 30, 2023, as the Company migrated
wholesale funding toward FHLB Boston borrowings during the
quarter.
Net Interest and Dividend Income
Net interest and dividend income, before the provision for
credit losses, decreased by $497,000,
or 1.7%, to $28.2 million for the
three months ended December 31, 2023,
from $28.6 million for the three
months ended September 30, 2023. This
was primarily due to higher cost of funds, partially offset by
higher yields on earning assets.
The Company's net interest margin on a fully taxable equivalent
basis decreased by four basis points to 2.14% for the three months
ended December 31, 2023, as compared
to 2.18% for the three months ended September 30, 2023.
Net interest and dividend income, before the provision for
credit losses, decreased by $22.4
million, or 15.6%, to $120.8
million for the twelve months ended December 31, 2023, from $143.2 million for the twelve months 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 62 basis points to 2.30% for the twelve months
ended December 31, 2023, as compared
to 2.92% for the twelve months 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 three months ended December 31, 2023, was 2.10%, representing a
three basis point decrease from the adjusted net interest margin,
on a fully taxable equivalent basis, of 2.13% for the three months
ended September 30, 2023.
|
|
Three Months
Ended
|
|
|
|
December 31,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,199,921
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
28,091
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.14
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(606)
|
|
|
|
-0.04
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,199,921
|
|
|
$
|
27,485
|
|
|
|
2.10
|
%
|
Excluding the impact of merger related loan accretion, the
adjusted net interest margin, on a fully taxable equivalent basis,
for the twelve months ended December 31,
2023, was 2.25%, representing a 62 basis point decrease from
the adjusted net interest margin, on a fully taxable equivalent
basis, of 2.87% for the twelve months ended December 31, 2022.
|
|
Year
Ended
|
|
|
|
December 31,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
Income/
Expenses
|
|
|
Rate
Earned/
Paid
|
|
|
|
(dollars in
thousands)
|
|
Total interest-earning
assets (GAAP)
|
|
$
|
5,248,250
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
$
|
120,839
|
|
|
|
|
Net interest margin on
a fully taxable equivalent basis (GAAP)
|
|
|
|
|
|
|
|
|
2.30
|
%
|
Less: Accretion of loan
fair value adjustments (GAAP)
|
|
|
|
|
|
(2,567)
|
|
|
|
-0.05
|
%
|
Adjusted net interest
margin on a fully taxable equivalent basis (non-GAAP)
|
|
$
|
5,248,250
|
|
|
$
|
118,272
|
|
|
|
2.25
|
%
|
Provision for Credit Losses
During the three months ended December
31, 2023, the Company recorded a provision for credit losses
of $569,000, as compared to a
provision for credit losses of $195,000 for the three months ended September 30, 2023.
For the twelve months ended December 31, 2023, the Company
recorded a provision for credit losses of $904,000, as compared to a $3.9 million provision for credit losses for the
twelve months ended December 31, 2022, which included
$2.2 million for the recognition of
the non-operating impact of merger related Current Expected Credit
Loss (CECL) accounting.
Noninterest Income
Total noninterest income decreased by $112,000, or 1.1%, to $10.4 million for the three months ended
December 31, 2023, as compared to $10.5
million for the three months ended September 30, 2023. This change was primarily the
result of lower deposit account fees partially offset by higher
loan related derivative income. Noninterest income was 27.0% of
total revenue for the three months ended December 31, 2023.
- Deposit account fees decreased by $106,000, or 12.4%, to $746,000 for the three months ended
December 31, 2023, as compared to $852,000 for the three months ended September 30, 2023, primarily due to lower fee
revenue from commercial deposit sweep products.
- Loan related derivative income increased by $56,000, or 96.6% to $114,000 for the three months ended December 31, 2023, as compared to $58,000 for the three months ended September 30, 2023, primarily as a result of
higher volume of loan related derivative transactions.
Total noninterest income decreased by $1.3 million, or 3.0%, to $41.7 million for the twelve months ended
December 31, 2023, as compared to $43.0
million for the twelve months ended December 31, 2022.
This change was primarily the result of lower bank owned life
insurance ("BOLI") income, lower other income, and lower loan
related derivative income, partially offset by higher deposit
account fees. Noninterest income was 25.7% of total revenue for the
twelve months ended December 31,
2023.
- BOLI income decreased by $1.0
million, or 57.0%, to $778,000
for the twelve months ended December 31, 2023, as compared to
$1.8 million for the twelve months
ended December 31, 2022, primarily due to a gain related to a
death benefit claim and a policy surrender that occurred during the
twelve months ended December 31, 2022, while no such benefit
claims or policy surrenders occurred during the twelve months ended
December 31, 2023.
- Other income decreased by $448,000, or 15.6%, to $2.4 million for the twelve months ended
December 31, 2023, as compared to $2.9
million for the twelve months ended December 31, 2022,
primarily due to lower income associated with success fees of
Innovation Banking loans recognized during the twelve months ended
December 31, 2023 as compared to the twelve months ended
December 31, 2022.
- Loan related derivative income decreased by $226,000, or 36.2%, to $399,000 for the twelve months ended
December 31, 2023, as compared to $625,000 for the twelve months ended
December 31, 2022, primarily as a result of lower volume of
loan related derivative transactions.
- Deposit account fees increased by $432,000, or 14.8%, to $3.3 million for the twelve months ended
December 31, 2023, as compared to
$2.9 million for the twelve months
ended December 31, 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 $2.7 million, or 9.3%, to $26.9 million for the three months ended
December 31, 2023, as compared to
$29.6 million for the three months
ended September 30, 2023. During the
three months ended December 31, 2023,
there was a decrease in non-operating expenses, lower professional
fees, and lower marketing expense as compared to the three months
ended September 30, 2023.
- Non-operating expense decreased by $1.9
million, or 72.8%, to $698,000
for the three months ended December 31, 2023, from
$2.6 million for the three months
ended September 30, 2023, primarily
due to the timing of merger expenses related to the Eastern
merger.
- Professional fees decreased by $489,000, or 44.9%, to $600,000 for the three months ended
December 31, 2023, from $1.1
million for the three months ended September 30, 2023, primarily due to a
combination of lower consulting fees, lower legal fees, and lower
employment agency fees.
- Marketing expense decreased by $381,000, or 71.2%, to $154,000 for the three months ended December 31, 2023, from $535,000 for the three months ended September 30, 2023, primarily due to the timing
of the Company's marketing spend.
Total noninterest expense increased by $4.8 million, or 4.4%, to $115.2 million for the twelve months ended
December 31, 2023, as compared to $110.4 million for the twelve months ended
December 31, 2022, primarily driven by an increase in
non-operating expenses and FDIC insurance expense, partially offset
by lower professional fees, lower marketing expense, and lower
salary and benefits expense, as compared to the twelve months ended
December 31, 2022.
- Non-operating expense increased by $4.1
million, or 134.7%, to $7.2
million for the twelve months ended December 31, 2023,
from $3.1 million for the twelve
months ended December 31, 2022, primarily due to merger
expenses associated with the Eastern merger and Northmark Bank
merger ("Northmark merger").
- Professional fees decreased by $1.1
million, or 22.3%, to $3.7
million for the twelve months ended December 31, 2023,
from $4.7 million for the twelve
months ended December 31, 2022, primarily due to consulting
fees associated with vendor contract negotiations expensed during
2022, while no such expenses occurred during the twelve months
ended December 31, 2023.
- Marketing expense decreased by $528,000, or 22.9%, to $1.8 million for the twelve months ended
December 31, 2023, from $2.3
million for the twelve months ended December 31, 2022,
primarily due to reduced marketing campaigns and promotions during
the period.
- Salary and employee benefits expense decreased by $303,000, or 0.4%, to $69.8 million for the twelve months ended
December 31, 2023, from $70.1
million for the twelve months ended December 31, 2022,
due to lower performance-based compensation and savings from a
reduction in head count during the year, partially offset by higher
overall staffing levels associated with the Northmark merger and
normal merit increases.
Asset Quality
Non-performing loans totaled $16.6
million, or 0.41% of total loans outstanding at December 31, 2023, as compared to $7.8 million, or 0.19% of total loans outstanding
at September 30, 2023, primarily due
to an owner occupied commercial mortgage loan placed on non-accrual
during the quarter. The allowance for credit losses was
$38.9 million, or 0.97% of total
loans outstanding at December 31,
2023, as compared to $38.2
million, or 0.95% of total loans outstanding at September 30, 2023.
The Company recorded net loan recoveries of $10,000, or 0.00% of total loans (annualized),
for the three months ended December 31,
2023, as compared to net loan charge-offs of $74,000, or 0.00% of total loans (annualized),
for the three months ended September 30,
2023.
The Company recorded net loan charge-offs of $70,000, or 0.00% of total loans, for the twelve
months ended December 31, 2023, as
compared to net loan recoveries of $53,000, or 0.00% of total loans, for the twelve
months 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
|
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands)
|
|
Non-performing
assets
|
|
$
|
16,567
|
|
|
$
|
7,778
|
|
|
$
|
6,542
|
|
Non-performing
loans/total loans
|
|
|
0.41
|
%
|
|
|
0.19
|
%
|
|
|
0.16
|
%
|
Non-performing
assets/total assets
|
|
|
0.31
|
%
|
|
|
0.14
|
%
|
|
|
0.12
|
%
|
|
|
Additional Asset
Quality Indicators
|
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans 30-89
days past due/total loans
|
|
|
0.60
|
%
|
|
|
0.58
|
%
|
|
|
0.36
|
%
|
Quarterly net
recoveries (charge-offs)/total loans (annualized)
|
|
|
0.00
|
%
|
|
|
(0.01)
|
%
|
|
|
0.00
|
%
|
Year to date net
recoveries (charge-offs)/total loans
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Allowance for credit
losses/total loans
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
Income Taxes
The Company's effective tax rate was 27.7% for the three months
ended December 31, 2023, representing a decrease of 7.7%, as
compared to an effective tax rate of 30.0% for the three months
ended September 30, 2023, primarily
due to the impact of non-deductible merger related expenses
recorded during the period. The Company's effective tax rate was
26.5% for both the twelve months ended December 31, 2023 and
the twelve months ended December 31, 2022.
Dividend and Capital
On January 29, 2024, the Company's
Board of Directors declared a quarterly cash dividend of
$0.67 per share, which is payable on
February 22, 2024, to shareholders of
record as of the close of business on February 8, 2024. The Company did not repurchase
any shares under its previously announced share repurchase program
during the three and twelve months ended December 31, 2023.
The Company's common equity to assets ratio increased to 9.87%
at December 31, 2023, from 9.65% at
September 30, 2023. The ratio of
tangible common equity to tangible assets increased to 8.67% at
December 31, 2023 from 8.45% at
September 30, 2023.
Book value per share at December 31,
2023 increased to $68.14 from
$67.04 at September 30, 2023. Tangible book value per share
at December 31, 2023 increased to
$59.08 from $57.96 at September 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 $5.42 billion
in assets at December 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
$4.6 billion in client assets under
management and administration at December
31, 2023. The Wealth Management group maintains offices in
Boston, 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 Cambridge Trust
Company 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
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
|
|
|
September
30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share data)
|
|
Interest and Dividend
Income
|
|
$
|
56,950
|
|
|
$
|
55,698
|
|
|
$
|
49,544
|
|
|
$
|
218,534
|
|
|
$
|
159,993
|
|
Interest
Expense
|
|
|
28,800
|
|
|
|
27,051
|
|
|
|
8,657
|
|
|
|
97,728
|
|
|
|
16,778
|
|
Net Interest and
Dividend Income
|
|
|
28,150
|
|
|
|
28,647
|
|
|
|
40,887
|
|
|
|
120,806
|
|
|
|
143,215
|
|
Provision for Credit
Losses
|
|
|
569
|
|
|
|
195
|
|
|
|
3,681
|
|
|
|
904
|
|
|
|
3,881
|
|
Noninterest
Income
|
|
|
10,437
|
|
|
|
10,549
|
|
|
|
10,063
|
|
|
|
41,730
|
|
|
|
43,009
|
|
Noninterest
Expense
|
|
|
26,901
|
|
|
|
29,649
|
|
|
|
31,869
|
|
|
|
115,223
|
|
|
|
110,382
|
|
Income Before Income
Taxes
|
|
|
11,117
|
|
|
|
9,352
|
|
|
|
15,400
|
|
|
|
46,409
|
|
|
|
71,961
|
|
Income Tax
Expense
|
|
|
3,083
|
|
|
|
2,808
|
|
|
|
4,081
|
|
|
|
12,300
|
|
|
|
19,052
|
|
Net
Income
|
|
$
|
8,034
|
|
|
$
|
6,544
|
|
|
$
|
11,319
|
|
|
$
|
34,109
|
|
|
$
|
52,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net
Income*
|
|
$
|
8,724
|
|
|
$
|
9,081
|
|
|
$
|
15,045
|
|
|
$
|
40,157
|
|
|
$
|
56,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share
|
|
$
|
1.02
|
|
|
$
|
0.83
|
|
|
$
|
1.45
|
|
|
$
|
4.35
|
|
|
$
|
7.35
|
|
Diluted Earnings
Per Share
|
|
|
1.02
|
|
|
|
0.83
|
|
|
|
1.44
|
|
|
|
4.34
|
|
|
|
7.30
|
|
Operating Diluted
Earnings Per Share*
|
|
|
1.11
|
|
|
|
1.15
|
|
|
|
1.92
|
|
|
|
5.12
|
|
|
|
7.80
|
|
Dividends
Declared Per Share
|
|
|
0.67
|
|
|
|
0.67
|
|
|
|
0.64
|
|
|
|
2.68
|
|
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,834,383
|
|
|
|
7,840,197
|
|
|
|
7,761,193
|
|
|
|
7,828,316
|
|
|
|
7,163,223
|
|
Diluted
|
|
|
7,853,823
|
|
|
|
7,862,584
|
|
|
|
7,819,574
|
|
|
|
7,843,482
|
|
|
|
7,213,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin, FTE
|
|
|
2.14
|
%
|
|
|
2.18
|
%
|
|
|
3.08
|
%
|
|
|
2.30
|
%
|
|
|
2.92
|
%
|
Adjusted Net
Interest Margin, FTE
|
|
|
2.10
|
%
|
|
|
2.13
|
%
|
|
|
3.01
|
%
|
|
|
2.25
|
%
|
|
|
2.87
|
%
|
Cost of
Funds
|
|
|
2.20
|
%
|
|
|
2.06
|
%
|
|
|
0.65
|
%
|
|
|
1.86
|
%
|
|
|
0.34
|
%
|
Cost of
Interest-Bearing Liabilities
|
|
|
3.04
|
%
|
|
|
2.87
|
%
|
|
|
1.02
|
%
|
|
|
2.64
|
%
|
|
|
0.53
|
%
|
Cost of
Deposits
|
|
|
2.19
|
%
|
|
|
2.09
|
%
|
|
|
0.66
|
%
|
|
|
1.85
|
%
|
|
|
0.32
|
%
|
Cost of Deposits
excluding Wholesale Deposits
|
|
|
1.89
|
%
|
|
|
1.74
|
%
|
|
|
0.45
|
%
|
|
|
1.54
|
%
|
|
|
0.26
|
%
|
Return on Average
Assets
|
|
|
0.59
|
%
|
|
|
0.48
|
%
|
|
|
0.81
|
%
|
|
|
0.62
|
%
|
|
|
1.03
|
%
|
Return on Average
Equity
|
|
|
6.06
|
%
|
|
|
4.93
|
%
|
|
|
8.79
|
%
|
|
|
6.50
|
%
|
|
|
11.56
|
%
|
Efficiency
Ratio*
|
|
|
69.72
|
%
|
|
|
75.64
|
%
|
|
|
62.55
|
%
|
|
|
70.89
|
%
|
|
|
59.27
|
%
|
Operating Return
on Average Assets*
|
|
|
0.64
|
%
|
|
|
0.66
|
%
|
|
|
1.08
|
%
|
|
|
0.73
|
%
|
|
|
1.10
|
%
|
Operating Return
on Tangible Common Equity*
|
|
|
7.61
|
%
|
|
|
7.91
|
%
|
|
|
13.61
|
%
|
|
|
8.86
|
%
|
|
|
14.18
|
%
|
Operating
Efficiency Ratio*
|
|
|
67.91
|
%
|
|
|
69.09
|
%
|
|
|
57.32
|
%
|
|
|
66.47
|
%
|
|
|
57.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
5,417,666
|
|
|
$
|
5,452,030
|
|
|
$
|
5,559,737
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
4,021,544
|
|
|
$
|
4,027,967
|
|
|
$
|
4,062,856
|
|
|
|
|
|
|
|
Total
Deposits
|
|
$
|
4,321,178
|
|
|
$
|
4,565,926
|
|
|
$
|
4,815,376
|
|
|
|
|
|
|
|
Allowance for Credit
Losses
|
|
$
|
38,944
|
|
|
$
|
38,194
|
|
|
$
|
37,774
|
|
|
|
|
|
|
|
Allowance to Total
Loans
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
|
|
|
|
Non-Performing
Loans
|
|
$
|
16,567
|
|
|
$
|
7,778
|
|
|
$
|
6,542
|
|
|
|
|
|
|
|
Non-Performing
Loans/Total Loans
|
|
|
0.41
|
%
|
|
|
0.19
|
%
|
|
|
0.16
|
%
|
|
|
|
|
|
|
QTD Net Recoveries
(Charge-offs) to Total Loans (annualized)
|
|
|
0.00
|
%
|
|
|
(0.01)
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
Tangible Common Equity
Ratio*
|
|
|
8.67
|
%
|
|
|
8.45
|
%
|
|
|
8.12
|
%
|
|
|
|
|
|
|
Book Value Per
Share
|
|
$
|
68.14
|
|
|
$
|
67.04
|
|
|
$
|
66.38
|
|
|
|
|
|
|
|
Tangible Book Value Per
Share*
|
|
$
|
59.08
|
|
|
$
|
57.96
|
|
|
$
|
57.15
|
|
|
|
|
|
|
|
Wealth Management
AUM
|
|
$
|
4,326,152
|
|
|
$
|
4,010,956
|
|
|
|
3,875,747
|
|
|
|
|
|
|
|
Wealth Management AUM
& AUA
|
|
$
|
4,595,209
|
|
|
$
|
4,268,394
|
|
|
|
4,059,819
|
|
|
|
|
|
|
|
* See GAAP to
Non-GAAP Reconciliations
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands, except share information)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
33,004
|
|
|
$
|
25,353
|
|
|
$
|
30,719
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
Available for sale, at
fair value (amortized cost $163,376, $167,903, and $182,027,
respectively)
|
|
|
137,838
|
|
|
|
136,253
|
|
|
|
153,416
|
|
Held to maturity, at
amortized cost (fair value $805,428, $784,636, and $885,586,
respectively)
|
|
|
959,332
|
|
|
|
980,591
|
|
|
|
1,051,997
|
|
Total investment
securities
|
|
|
1,097,170
|
|
|
|
1,116,844
|
|
|
|
1,205,413
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale, at
lower of cost or fair value
|
|
|
—
|
|
|
|
614
|
|
|
|
—
|
|
Loans
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
1,626,264
|
|
|
|
1,627,460
|
|
|
|
1,648,838
|
|
Commercial
mortgage
|
|
|
1,931,473
|
|
|
|
1,922,455
|
|
|
|
1,914,423
|
|
Home equity
|
|
|
95,649
|
|
|
|
93,364
|
|
|
|
111,351
|
|
Commercial and
industrial
|
|
|
343,711
|
|
|
|
355,796
|
|
|
|
350,650
|
|
Consumer
|
|
|
24,447
|
|
|
|
28,892
|
|
|
|
37,594
|
|
Total loans
|
|
|
4,021,544
|
|
|
|
4,027,967
|
|
|
|
4,062,856
|
|
Less: allowance for
credit losses on loans
|
|
|
(38,944)
|
|
|
|
(38,194)
|
|
|
|
(37,774)
|
|
Net loans
|
|
|
3,982,600
|
|
|
|
3,989,773
|
|
|
|
4,025,082
|
|
Federal Home Loan Bank
of Boston Stock, at cost
|
|
|
19,056
|
|
|
|
12,321
|
|
|
|
6,264
|
|
Bank owned life
insurance
|
|
|
35,265
|
|
|
|
35,063
|
|
|
|
34,484
|
|
Banking premises and
equipment, net
|
|
|
21,753
|
|
|
|
22,297
|
|
|
|
23,297
|
|
Right-of-use asset
operating leases
|
|
|
23,233
|
|
|
|
22,095
|
|
|
|
25,098
|
|
Deferred income taxes,
net
|
|
|
15,299
|
|
|
|
16,495
|
|
|
|
17,990
|
|
Accrued interest
receivable
|
|
|
15,765
|
|
|
|
15,255
|
|
|
|
14,118
|
|
Goodwill
|
|
|
64,539
|
|
|
|
64,539
|
|
|
|
64,539
|
|
Merger-related
intangibles, net
|
|
|
6,550
|
|
|
|
6,773
|
|
|
|
7,443
|
|
Other assets
|
|
|
103,432
|
|
|
|
124,608
|
|
|
|
105,290
|
|
Total
assets
|
|
$
|
5,417,666
|
|
|
$
|
5,452,030
|
|
|
$
|
5,559,737
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
1,032,413
|
|
|
$
|
1,036,849
|
|
|
$
|
1,366,395
|
|
Interest-bearing
checking
|
|
|
1,132,518
|
|
|
|
1,134,270
|
|
|
|
908,961
|
|
Money
market
|
|
|
983,480
|
|
|
|
1,005,820
|
|
|
|
1,162,773
|
|
Savings
|
|
|
498,386
|
|
|
|
560,597
|
|
|
|
790,628
|
|
Certificates of
deposit
|
|
|
674,381
|
|
|
|
828,390
|
|
|
|
586,619
|
|
Total
deposits
|
|
|
4,321,178
|
|
|
|
4,565,926
|
|
|
|
4,815,376
|
|
Borrowings
|
|
|
452,155
|
|
|
|
233,905
|
|
|
|
105,212
|
|
Operating lease
liabilities
|
|
|
25,165
|
|
|
|
24,196
|
|
|
|
27,413
|
|
Other
liabilities
|
|
|
84,595
|
|
|
|
101,972
|
|
|
|
94,184
|
|
Total
liabilities
|
|
|
4,883,093
|
|
|
|
4,925,999
|
|
|
|
5,042,185
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Common stock, par value
$1.00; Authorized: 10,000,000 shares; Outstanding: 7,845,452
shares, 7,846,041 shares, and 7,796,440 shares,
respectively
|
|
|
7,845
|
|
|
|
7,846
|
|
|
|
7,796
|
|
Additional paid-in
capital
|
|
|
293,950
|
|
|
|
294,025
|
|
|
|
293,186
|
|
Retained
earnings
|
|
|
250,492
|
|
|
|
247,714
|
|
|
|
237,369
|
|
Accumulated other
comprehensive loss
|
|
|
(17,714)
|
|
|
|
(23,554)
|
|
|
|
(20,799)
|
|
Total shareholders'
equity
|
|
|
534,573
|
|
|
|
526,031
|
|
|
|
517,552
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,417,666
|
|
|
$
|
5,452,030
|
|
|
$
|
5,559,737
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
|
|
|
September
30,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except per share amounts)
|
|
Interest and dividend
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on taxable
loans
|
|
$
|
50,884
|
|
|
$
|
49,535
|
|
|
$
|
43,270
|
|
|
|
$
|
193,483
|
|
|
$
|
135,965
|
|
Interest on tax-exempt
loans
|
|
|
399
|
|
|
|
398
|
|
|
|
376
|
|
|
|
|
1,555
|
|
|
|
1,447
|
|
Interest on taxable
investment securities
|
|
|
4,745
|
|
|
|
4,837
|
|
|
|
5,054
|
|
|
|
|
19,589
|
|
|
|
19,555
|
|
Interest on tax-exempt
investment securities
|
|
|
519
|
|
|
|
541
|
|
|
|
595
|
|
|
|
|
2,215
|
|
|
|
2,477
|
|
Dividends on FHLB of
Boston stock
|
|
|
304
|
|
|
|
254
|
|
|
|
124
|
|
|
|
|
970
|
|
|
|
287
|
|
Interest on overnight
investments
|
|
|
99
|
|
|
|
133
|
|
|
|
125
|
|
|
|
|
722
|
|
|
|
262
|
|
Total interest and
dividend income
|
|
|
56,950
|
|
|
|
55,698
|
|
|
|
49,544
|
|
|
|
|
218,534
|
|
|
|
159,993
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
24,817
|
|
|
|
24,164
|
|
|
|
8,012
|
|
|
|
|
84,965
|
|
|
|
14,598
|
|
Interest on borrowed
funds
|
|
|
3,983
|
|
|
|
2,887
|
|
|
|
645
|
|
|
|
|
12,763
|
|
|
|
2,180
|
|
Total interest
expense
|
|
|
28,800
|
|
|
|
27,051
|
|
|
|
8,657
|
|
|
|
|
97,728
|
|
|
|
16,778
|
|
Net interest and
dividend income
|
|
|
28,150
|
|
|
|
28,647
|
|
|
|
40,887
|
|
|
|
|
120,806
|
|
|
|
143,215
|
|
Provision for credit
losses
|
|
|
569
|
|
|
|
195
|
|
|
|
3,681
|
|
|
|
|
904
|
|
|
|
3,881
|
|
Net interest and
dividend income after provision for credit losses
|
|
|
27,581
|
|
|
|
28,452
|
|
|
|
37,206
|
|
|
|
|
119,902
|
|
|
|
139,334
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
revenue
|
|
|
8,478
|
|
|
|
8,513
|
|
|
|
8,099
|
|
|
|
|
33,004
|
|
|
|
33,034
|
|
Deposit account
fees
|
|
|
746
|
|
|
|
852
|
|
|
|
834
|
|
|
|
|
3,345
|
|
|
|
2,913
|
|
ATM/Debit card
income
|
|
|
400
|
|
|
|
403
|
|
|
|
444
|
|
|
|
|
1,728
|
|
|
|
1,663
|
|
Bank owned life
insurance income
|
|
|
202
|
|
|
|
197
|
|
|
|
134
|
|
|
|
|
778
|
|
|
|
1,808
|
|
Gain on loans sold,
net
|
|
|
16
|
|
|
|
27
|
|
|
|
—
|
|
|
|
|
56
|
|
|
|
98
|
|
Loan related
derivative income
|
|
|
114
|
|
|
|
58
|
|
|
|
71
|
|
|
|
|
399
|
|
|
|
625
|
|
Other
income
|
|
|
481
|
|
|
|
499
|
|
|
|
481
|
|
|
|
|
2,420
|
|
|
|
2,868
|
|
Total noninterest
income
|
|
|
10,437
|
|
|
|
10,549
|
|
|
|
10,063
|
|
|
|
|
41,730
|
|
|
|
43,009
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
17,062
|
|
|
|
17,272
|
|
|
|
18,329
|
|
|
|
|
69,806
|
|
|
|
70,109
|
|
Occupancy and
equipment
|
|
|
3,534
|
|
|
|
3,602
|
|
|
|
3,698
|
|
|
|
|
14,454
|
|
|
|
14,364
|
|
Data
processing
|
|
|
2,585
|
|
|
|
2,485
|
|
|
|
2,868
|
|
|
|
|
10,313
|
|
|
|
10,706
|
|
Professional
services
|
|
|
600
|
|
|
|
1,089
|
|
|
|
1,845
|
|
|
|
|
3,675
|
|
|
|
4,728
|
|
Marketing
|
|
|
154
|
|
|
|
535
|
|
|
|
1,128
|
|
|
|
|
1,773
|
|
|
|
2,301
|
|
FDIC
insurance
|
|
|
918
|
|
|
|
770
|
|
|
|
465
|
|
|
|
|
2,835
|
|
|
|
1,845
|
|
Non-operating
expenses
|
|
|
698
|
|
|
|
2,567
|
|
|
|
2,663
|
|
|
|
|
7,180
|
|
|
|
3,059
|
|
Other
expenses
|
|
|
1,350
|
|
|
|
1,329
|
|
|
|
873
|
|
|
|
|
5,187
|
|
|
|
3,270
|
|
Total noninterest
expense
|
|
|
26,901
|
|
|
|
29,649
|
|
|
|
31,869
|
|
|
|
|
115,223
|
|
|
|
110,382
|
|
Income before income
taxes
|
|
|
11,117
|
|
|
|
9,352
|
|
|
|
15,400
|
|
|
|
|
46,409
|
|
|
|
71,961
|
|
Income tax
expense
|
|
|
3,083
|
|
|
|
2,808
|
|
|
|
4,081
|
|
|
|
|
12,300
|
|
|
|
19,052
|
|
Net income
|
|
$
|
8,034
|
|
|
$
|
6,544
|
|
|
$
|
11,319
|
|
|
|
$
|
34,109
|
|
|
$
|
52,909
|
|
Share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
7,834,383
|
|
|
|
7,840,197
|
|
|
|
7,761,193
|
|
|
|
|
7,828,316
|
|
|
|
7,163,223
|
|
Weighted average
shares outstanding, diluted
|
|
|
7,853,823
|
|
|
|
7,862,584
|
|
|
|
7,819,574
|
|
|
|
|
7,843,482
|
|
|
|
7,213,913
|
|
Basic earnings per
share
|
|
$
|
1.02
|
|
|
$
|
0.83
|
|
|
$
|
1.45
|
|
|
|
$
|
4.35
|
|
|
$
|
7.35
|
|
Diluted earnings per
share
|
|
$
|
1.02
|
|
|
$
|
0.83
|
|
|
$
|
1.44
|
|
|
|
$
|
4.34
|
|
|
$
|
7.30
|
|
CAMBRIDGE BANCORP
AND SUBSIDIARIES
|
MARGIN & YIELD
ANALYSIS
|
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
December 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
|
|
$
|
3,978,452
|
|
|
$
|
50,884
|
|
|
|
5.07
|
%
|
|
$
|
3,967,048
|
|
|
$
|
49,535
|
|
|
|
4.95
|
%
|
|
$
|
3,943,279
|
|
|
$
|
43,270
|
|
|
|
4.35
|
%
|
Tax-exempt
|
|
|
53,132
|
|
|
|
506
|
|
|
|
3.78
|
|
|
|
53,012
|
|
|
|
503
|
|
|
|
3.76
|
|
|
|
49,777
|
|
|
|
476
|
|
|
|
3.79
|
|
Securities available
for
sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
166,003
|
|
|
|
669
|
|
|
|
1.60
|
|
|
|
170,451
|
|
|
|
682
|
|
|
|
1.59
|
|
|
|
185,452
|
|
|
|
681
|
|
|
|
1.46
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
885,576
|
|
|
|
4,076
|
|
|
|
1.83
|
|
|
|
907,447
|
|
|
|
4,155
|
|
|
|
1.82
|
|
|
|
968,319
|
|
|
|
4,373
|
|
|
|
1.79
|
|
Tax-exempt
|
|
|
84,990
|
|
|
|
657
|
|
|
|
3.07
|
|
|
|
87,961
|
|
|
|
685
|
|
|
|
3.09
|
|
|
|
96,859
|
|
|
|
753
|
|
|
|
3.08
|
|
Cash and cash
equivalents
|
|
|
31,768
|
|
|
|
99
|
|
|
|
1.24
|
|
|
|
33,152
|
|
|
|
133
|
|
|
|
1.59
|
|
|
|
39,519
|
|
|
|
125
|
|
|
|
1.25
|
|
Total
interest-earning
assets (4)
|
|
|
5,199,921
|
|
|
|
56,891
|
|
|
|
4.34
|
%
|
|
|
5,219,071
|
|
|
|
55,693
|
|
|
|
4.23
|
%
|
|
|
5,283,205
|
|
|
|
49,678
|
|
|
|
3.73
|
%
|
Non-interest-earning
assets
|
|
|
285,093
|
|
|
|
|
|
|
|
|
|
279,306
|
|
|
|
|
|
|
|
|
|
278,799
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(38,226)
|
|
|
|
|
|
|
|
|
|
(38,044)
|
|
|
|
|
|
|
|
|
|
(36,603)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,446,788
|
|
|
|
|
|
|
|
|
$
|
5,460,333
|
|
|
|
|
|
|
|
|
$
|
5,525,401
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,160,636
|
|
|
$
|
5,948
|
|
|
|
2.03
|
%
|
|
$
|
1,166,179
|
|
|
$
|
5,694
|
|
|
|
1.94
|
%
|
|
$
|
802,687
|
|
|
$
|
1,051
|
|
|
|
0.52
|
%
|
Savings
accounts
|
|
|
540,052
|
|
|
|
1,561
|
|
|
|
1.15
|
|
|
|
584,638
|
|
|
|
1,532
|
|
|
|
1.04
|
|
|
|
878,786
|
|
|
|
811
|
|
|
|
0.37
|
|
Money market
accounts
|
|
|
984,696
|
|
|
|
8,267
|
|
|
|
3.33
|
|
|
|
986,619
|
|
|
|
8,088
|
|
|
|
3.25
|
|
|
|
1,089,768
|
|
|
|
2,895
|
|
|
|
1.05
|
|
Certificates of
deposit
|
|
|
769,384
|
|
|
|
9,041
|
|
|
|
4.66
|
|
|
|
771,237
|
|
|
|
8,850
|
|
|
|
4.55
|
|
|
|
527,770
|
|
|
|
3,255
|
|
|
|
2.45
|
|
Total
interest-bearing
deposits
|
|
|
3,454,768
|
|
|
|
24,817
|
|
|
|
2.85
|
|
|
|
3,508,673
|
|
|
|
24,164
|
|
|
|
2.73
|
|
|
|
3,299,011
|
|
|
|
8,012
|
|
|
|
0.96
|
|
Other borrowed
funds
|
|
|
302,738
|
|
|
|
3,983
|
|
|
|
5.22
|
|
|
|
229,005
|
|
|
|
2,887
|
|
|
|
5.00
|
|
|
|
76,856
|
|
|
|
645
|
|
|
|
3.33
|
|
Total
interest-bearing
liabilities
|
|
|
3,757,506
|
|
|
|
28,800
|
|
|
|
3.04
|
%
|
|
|
3,737,678
|
|
|
|
27,051
|
|
|
|
2.87
|
%
|
|
|
3,375,867
|
|
|
|
8,657
|
|
|
|
1.02
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,035,191
|
|
|
|
|
|
|
|
|
|
1,078,554
|
|
|
|
|
|
|
|
|
|
1,514,810
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
128,246
|
|
|
|
|
|
|
|
|
|
117,042
|
|
|
|
|
|
|
|
|
|
124,004
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,920,943
|
|
|
|
|
|
|
|
|
|
4,933,274
|
|
|
|
|
|
|
|
|
|
5,014,681
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
525,845
|
|
|
|
|
|
|
|
|
|
527,059
|
|
|
|
|
|
|
|
|
|
510,720
|
|
|
|
|
|
|
|
Total liabilities
&
shareholders'
equity
|
|
$
|
5,446,788
|
|
|
|
|
|
|
|
|
$
|
5,460,333
|
|
|
|
|
|
|
|
|
$
|
5,525,401
|
|
|
|
|
|
|
|
Net interest income on
a
fully taxable equivalent
basis
|
|
|
|
|
|
28,091
|
|
|
|
|
|
|
|
|
|
28,642
|
|
|
|
|
|
|
|
|
|
41,021
|
|
|
|
|
Less taxable
equivalent
adjustment
|
|
|
|
|
|
(245)
|
|
|
|
|
|
|
|
|
|
(249)
|
|
|
|
|
|
|
|
|
|
(258)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
27,846
|
|
|
|
|
|
|
|
|
$
|
28,393
|
|
|
|
|
|
|
|
|
$
|
40,763
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.30
|
%
|
|
|
|
|
|
|
|
|
1.36
|
%
|
|
|
|
|
|
|
|
|
2.71
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.14
|
%
|
|
|
|
|
|
|
|
|
2.18
|
%
|
|
|
|
|
|
|
|
|
3.08
|
%
|
|
|
(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
|
|
|
|
Year
Ended
|
|
|
|
December 31,
2023
|
|
|
December 31,
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
|
|
$
|
3,977,438
|
|
|
$
|
193,483
|
|
|
|
4.86
|
%
|
|
$
|
3,552,934
|
|
|
$
|
135,965
|
|
|
|
3.83
|
%
|
Tax-exempt
|
|
|
52,141
|
|
|
|
1,969
|
|
|
|
3.78
|
|
|
|
47,881
|
|
|
|
1,832
|
|
|
|
3.83
|
|
Securities available
for sale (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
173,034
|
|
|
|
2,758
|
|
|
|
1.59
|
|
|
|
194,612
|
|
|
|
2,680
|
|
|
|
1.38
|
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
917,057
|
|
|
|
16,831
|
|
|
|
1.84
|
|
|
|
978,321
|
|
|
|
16,875
|
|
|
|
1.72
|
|
Tax-exempt
|
|
|
90,361
|
|
|
|
2,804
|
|
|
|
3.10
|
|
|
|
100,057
|
|
|
|
3,135
|
|
|
|
3.13
|
|
Cash and cash
equivalents
|
|
|
38,219
|
|
|
|
722
|
|
|
|
1.89
|
|
|
|
64,790
|
|
|
|
262
|
|
|
|
0.40
|
|
Total interest-earning
assets (4)
|
|
|
5,248,250
|
|
|
|
218,567
|
|
|
|
4.16
|
%
|
|
|
4,938,595
|
|
|
|
160,749
|
|
|
|
3.25
|
%
|
Non-interest-earning
assets
|
|
|
275,919
|
|
|
|
|
|
|
|
|
|
246,813
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(38,039)
|
|
|
|
|
|
|
|
|
|
(35,072)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,486,130
|
|
|
|
|
|
|
|
|
$
|
5,150,336
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts
|
|
$
|
1,090,277
|
|
|
$
|
18,653
|
|
|
|
1.71
|
%
|
|
$
|
753,001
|
|
|
$
|
1,285
|
|
|
|
0.17
|
%
|
Savings
accounts
|
|
|
629,406
|
|
|
|
5,919
|
|
|
|
0.94
|
|
|
|
897,146
|
|
|
|
1,554
|
|
|
|
0.17
|
|
Money market
accounts
|
|
|
1,017,535
|
|
|
|
30,107
|
|
|
|
2.96
|
|
|
|
1,165,793
|
|
|
|
7,999
|
|
|
|
0.69
|
|
Certificates of
deposit
|
|
|
717,106
|
|
|
|
30,286
|
|
|
|
4.22
|
|
|
|
240,468
|
|
|
|
3,760
|
|
|
|
1.56
|
|
Total interest-bearing
deposits
|
|
|
3,454,324
|
|
|
|
84,965
|
|
|
|
2.46
|
%
|
|
|
3,056,408
|
|
|
|
14,598
|
|
|
|
0.48
|
%
|
Other borrowed
funds
|
|
|
254,387
|
|
|
|
12,763
|
|
|
|
5.02
|
|
|
|
85,580
|
|
|
|
2,180
|
|
|
|
2.55
|
|
Total interest-bearing
liabilities
|
|
|
3,708,711
|
|
|
|
97,728
|
|
|
|
2.64
|
%
|
|
|
3,141,988
|
|
|
|
16,778
|
|
|
|
0.53
|
%
|
Non-interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
1,134,875
|
|
|
|
|
|
|
|
|
|
1,446,745
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
117,872
|
|
|
|
|
|
|
|
|
|
104,063
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,961,458
|
|
|
|
|
|
|
|
|
|
4,692,796
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
524,672
|
|
|
|
|
|
|
|
|
|
457,540
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,486,130
|
|
|
|
|
|
|
|
|
$
|
5,150,336
|
|
|
|
|
|
|
|
Net interest income on
a fully taxable equivalent
basis
|
|
|
|
|
|
120,839
|
|
|
|
|
|
|
|
|
|
143,971
|
|
|
|
|
Less taxable equivalent
adjustment
|
|
|
|
|
|
(1,003)
|
|
|
|
|
|
|
|
|
|
(1,043)
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
119,836
|
|
|
|
|
|
|
|
|
$
|
142,928
|
|
|
|
|
Net interest spread
(5)
|
|
|
|
|
|
|
|
|
1.53
|
%
|
|
|
|
|
|
|
|
|
2.72
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
|
2.30
|
%
|
|
|
|
|
|
|
|
|
2.92
|
%
|
|
|
(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
|
|
|
Twelve Months
Ended
|
|
Operating Net Income
/ Operating Diluted Earnings Per Share
|
|
December 31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (a GAAP
measure)
|
|
$
|
8,034
|
|
|
$
|
6,544
|
|
|
$
|
7,115
|
|
|
$
|
12,416
|
|
|
$
|
11,319
|
|
|
$
|
34,109
|
|
|
$
|
52,909
|
|
Less: Death benefits
on bank owned life insurance ("BOLI") and policy
surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Add: Mergers and
contractual termination expenses (1)
|
|
|
698
|
|
|
|
2,567
|
|
|
|
3,491
|
|
|
|
424
|
|
|
|
2,663
|
|
|
|
7,180
|
|
|
|
3,059
|
|
Add: Provision for
credit losses for acquired loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,239
|
|
|
|
—
|
|
|
|
2,239
|
|
Less: Tax effect of
BOLI surrender
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
736
|
|
Less: Tax effect of
non-operating expenses (2)
|
`
|
|
(8)
|
|
|
|
(30)
|
|
|
|
(976)
|
|
|
|
(118)
|
|
|
|
(1,176)
|
|
|
|
(1,132)
|
|
|
|
(1,237)
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
8,724
|
|
|
$
|
9,081
|
|
|
$
|
9,630
|
|
|
$
|
12,722
|
|
|
$
|
15,045
|
|
|
$
|
40,157
|
|
|
$
|
56,549
|
|
Less: Dividends and
Undistributed Earnings
Allocated to Participating Securities (a non-GAAP
measure)
|
|
|
(13)
|
|
|
|
(7)
|
|
|
|
(3)
|
|
|
|
(26)
|
|
|
|
(65)
|
|
|
|
(36)
|
|
|
|
(273)
|
|
Operating Net Income
Applicable to Common
Shareholders (a non-GAAP measure)
|
|
$
|
8,711
|
|
|
$
|
9,074
|
|
|
$
|
9,627
|
|
|
$
|
12,696
|
|
|
$
|
14,980
|
|
|
$
|
40,121
|
|
|
$
|
56,276
|
|
Weighted Average
Diluted Shares
|
|
|
7,853,823
|
|
|
|
7,862,584
|
|
|
|
7,854,955
|
|
|
|
7,826,162
|
|
|
|
7,819,574
|
|
|
|
7,843,482
|
|
|
|
7,213,913
|
|
Operating Diluted
Earnings Per Share
(a non-GAAP measure)
|
|
$
|
1.11
|
|
|
$
|
1.15
|
|
|
$
|
1.23
|
|
|
$
|
1.62
|
|
|
$
|
1.92
|
|
|
$
|
5.12
|
|
|
$
|
7.80
|
|
|
|
(1)
|
The Company recorded
merger expenses of $698,000 and $3.3 million associated with the
Eastern merger for the three and twelve months ended December 31,
2023, respectively. The Company recorded $3.6 million of merger
expenses associated with the Northmark merger for the twelve
months ended December 31, 2023.
|
(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. The tax
effect for three months ended September 30, 2023 has been updated
to reflect the final tax deductibility for the
year.
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
|
|
(dollars in
thousands)
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
|
534,573
|
|
|
$
|
526,031
|
|
|
$
|
517,552
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,089)
|
|
|
|
(71,312)
|
|
|
|
(71,982)
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
463,484
|
|
|
$
|
454,719
|
|
|
$
|
445,570
|
|
Total assets
(GAAP)
|
|
$
|
5,417,666
|
|
|
$
|
5,452,030
|
|
|
$
|
5,559,737
|
|
Less: Goodwill and
acquisition related intangibles (GAAP)
|
|
|
(71,089)
|
|
|
|
(71,312)
|
|
|
|
(71,982)
|
|
Tangible assets (a
non-GAAP measure)
|
|
$
|
5,346,577
|
|
|
$
|
5,380,718
|
|
|
$
|
5,487,755
|
|
Tangible Common Equity
Ratio (a non-GAAP
measure)
|
|
|
8.67
|
%
|
|
|
8.45
|
%
|
|
|
8.12
|
%
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share:
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
(a non-GAAP measure)
|
|
$
|
463,484
|
|
|
$
|
454,719
|
|
|
$
|
445,570
|
|
Common shares
outstanding
|
|
|
7,845,452
|
|
|
|
7,846,041
|
|
|
|
7,796,440
|
|
Tangible Book Value
Per Share (a non-GAAP measure)
|
|
$
|
59.08
|
|
|
$
|
57.96
|
|
|
$
|
57.15
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
|
|
|
September
30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Efficiency Ratio:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
26,901
|
|
|
$
|
29,649
|
|
|
$
|
31,869
|
|
|
$
|
115,223
|
|
|
$
|
110,382
|
|
Net interest and
dividend income
|
|
$
|
28,150
|
|
|
$
|
28,647
|
|
|
$
|
40,887
|
|
|
$
|
120,806
|
|
|
$
|
143,215
|
|
Total noninterest
income
|
|
|
10,437
|
|
|
|
10,549
|
|
|
|
10,063
|
|
|
|
41,730
|
|
|
|
43,009
|
|
Total
revenue
|
|
$
|
38,587
|
|
|
$
|
39,196
|
|
|
$
|
50,950
|
|
|
$
|
162,536
|
|
|
$
|
186,224
|
|
Efficiency
Ratio
|
|
|
69.72
|
%
|
|
|
75.64
|
%
|
|
|
62.55
|
%
|
|
|
70.89
|
%
|
|
|
59.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency
Ratio: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
26,901
|
|
|
$
|
29,649
|
|
|
$
|
31,869
|
|
|
$
|
115,223
|
|
|
$
|
110,382
|
|
Mergers and contractual
termination expenses (Pretax)
|
|
|
(698)
|
|
|
|
(2,567)
|
|
|
|
(2,663)
|
|
|
|
(7,180)
|
|
|
|
(3,059)
|
|
Operating expense (a
non-GAAP measure)
|
|
$
|
26,203
|
|
|
$
|
27,082
|
|
|
$
|
29,206
|
|
|
$
|
108,043
|
|
|
$
|
107,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
38,587
|
|
|
$
|
39,196
|
|
|
$
|
50,950
|
|
|
$
|
162,536
|
|
|
$
|
186,224
|
|
Add:(gain) loss on
disposition of investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death benefit on bank
owned life insurance ("BOLI") and policy
surrender (Pretax)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,157)
|
|
Operating revenue (a
non-GAAP measure)
|
|
$
|
38,587
|
|
|
$
|
39,196
|
|
|
$
|
50,950
|
|
|
$
|
162,536
|
|
|
$
|
185,067
|
|
Operating Efficiency
Ratio (a non-GAAP measure)
|
|
|
67.91
|
%
|
|
|
69.09
|
%
|
|
|
57.32
|
%
|
|
|
66.47
|
%
|
|
|
57.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
|
|
|
September
30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(dollars in
thousands)
|
|
Operating Return on
Tangible Common Equity: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
8,724
|
|
|
$
|
9,081
|
|
|
$
|
15,045
|
|
|
$
|
40,157
|
|
|
$
|
56,549
|
|
Average common
equity
|
|
$
|
525,845
|
|
|
$
|
527,059
|
|
|
$
|
510,720
|
|
|
$
|
524,672
|
|
|
$
|
457,540
|
|
Average goodwill and
merger related intangibles
|
|
|
(71,207)
|
|
|
|
(71,432)
|
|
|
|
(72,110)
|
|
|
|
(71,538)
|
|
|
|
(58,859)
|
|
Average tangible common
equity (a non-GAAP measure)
|
|
$
|
454,638
|
|
|
$
|
455,627
|
|
|
$
|
438,610
|
|
|
$
|
453,134
|
|
|
$
|
398,681
|
|
Operating Return on
Tangible Common Equity (a non-GAAP measure)
|
|
|
7.61
|
%
|
|
|
7.91
|
%
|
|
|
13.61
|
%
|
|
|
8.86
|
%
|
|
|
14.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return on
Average Assets: (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income (a
non-GAAP measure)
|
|
$
|
8,724
|
|
|
$
|
9,081
|
|
|
$
|
15,045
|
|
|
$
|
40,157
|
|
|
$
|
56,549
|
|
Average
assets
|
|
$
|
5,446,788
|
|
|
$
|
5,460,333
|
|
|
$
|
5,525,401
|
|
|
$
|
5,486,130
|
|
|
$
|
5,150,336
|
|
Operating Return on
Average Assets (a non-GAAP measure)
|
|
|
0.64
|
%
|
|
|
0.66
|
%
|
|
|
1.08
|
%
|
|
|
0.73
|
%
|
|
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