Capital Position* 14.2% 13.1% 13.1% 8.7% 8.4% 10.5% 8.5% 7.0% 4.0% 0.0% 4.0% 8.0% 12.0% 16.0% TOTAL CAPITAL TIER 1 CAPITAL TIER I COMMON EQUITY TIER I LEVERAGE TANGIBLE COMMON EQUITY* CATC Minimum Capital Required** MMDA & Other Savings 36% Time Deposits 14% 26% Consumer Deposits- 48% Commercial Deposits- 52% 2019, 2020 and 2022 include acquired balances from Optima Bank & Trust Company, Wellesley Bancorp, Inc., and Northmark Bank, respectively. 1: Adjusted net interest margin excludes the impact of merger ...

FORM 10-Q Registrant's telephone number, including area code: (617) 876-5500 Securities registered pursuant to Section 12(b) of the Act: Common Stock CATC NASDAQ (Title of each class) (Trading symbol) (Name of each exchange on which registered) i l CAMBRIDGE BANCORP AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------|-------|------------------- ...

Thanks, Chris. Operator And this concludes our question-and-answer session. I would like to turn the conference back over to Denis Sheahan for any closing remarks. Chris O'Connell Denis K. Sheahan Chris O'Connell Denis K. Sheahan Okay, got it. And as far as your strategy on a go forward basis regarding the use of wholesale or brokered CDs versus wholesale borrowings. I noticed you kind of shifted more to the borrowing side and let some of those higher cost CDs run off this quarter. How are you thinking abou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to __________________ | --- | --- | |--------------------------------------------------------------------------------------------------|------ ...

Okay. Got you. Understood. Okay. Thank you for that. Next question. You guys said recent originations are in the mid-6s. Is that -- so that's what's coming on right now or that's what people are committing? Okay. Great. And just last one for me. What does the pipeline look like about now in terms of unfunded commitments? Pipeline -- the pipeline for loans, excuse me. Okay. All right. ThatÂ's great. Thank you, guys so much. That covers it for me. Thank you. The next question comes from Chris O'Connell with K ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Cambridge Bancorp is a Massachusetts-based bank holding company operating 22 banking and 5 wealth management offices with **$5.6 billion in assets** and **$4.1 billion AUM** - Cambridge Bancorp is a bank holding company operating 22 banking and 5 wealth management offices in Eastern Massachusetts and New Hampshire through its subsidiary, Cambridge Trust Company[631](index=631&type=chunk) Company Financial Snapshot (as of Dec 31, 2022) | Metric | Value | | :--- | :--- | | Total Assets | ~$5.6 billion | | Assets under Management & Administration | ~$4.1 billion | - The company completed its merger with Northmark Bank in October 2022, acquiring **$428.7 million in assets** and recording **$12.6 million in goodwill**, following the Wellesley Bancorp merger in June 2020[678](index=678&type=chunk)[679](index=679&type=chunk)[680](index=680&type=chunk) - The company is extensively regulated by the Federal Reserve, MA DOB, and FDIC, impacting its operations, capital structure, and dividend policies[688](index=688&type=chunk)[691](index=691&type=chunk)[692](index=692&type=chunk) [Supervision and Regulation](index=7&type=section&id=Supervision%20and%20Regulation) The company and its banking subsidiary are subject to a comprehensive regulatory framework, including capital adequacy rules, dividend restrictions, and consumer protection laws, aimed at protecting depositors and the banking system - The Company is expected to act as a source of financial and managerial strength for its subsidiary Bank, potentially requiring resource commitment[702](index=702&type=chunk) - Dividends from the Bank are the Company's main cash source, with Federal Reserve policy restricting payments to past year's income and requiring support for the subsidiary[5](index=5&type=chunk) Minimum Capital Ratios (including Capital Conservation Buffer) | Capital Ratio | Minimum Requirement | | :--- | :--- | | Common Equity Tier 1 (CET1) to risk-weighted assets | 7.0% | | Tier 1 capital to risk-weighted assets | 8.5% | | Total capital to risk-weighted assets | 10.5% | | Tier 1 leverage ratio | 4.0% | - The Bank's deposit accounts are insured by the FDIC's DIF up to **$250,000** per depositor, and the Bank is rated "well-capitalized" under PCA standards[78](index=78&type=chunk)[76](index=76&type=chunk) [Human Capital](index=15&type=section&id=Human%20Capital) As of December 31, 2022, the company employed 447 individuals, with a focus on diversity, equity, and inclusion, and supports employee development through various programs Workforce Diversity (as of Dec 31, 2022) | Group | Overall Workforce | VP & Above | | :--- | :--- | :--- | | Female | 51% | 41% | | Racially/Ethnically Diverse | 22% | 11% | - The company requires all Vice President level and above searches to include at least one racially or ethnically diverse candidate and one female candidate[125](index=125&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks including economic downturns, interest rate volatility, loan portfolio credit risk, extensive regulation, cybersecurity threats, and acquisition integration challenges - The company's success is highly dependent on economic conditions in Eastern Massachusetts and New Hampshire due to limited geographic diversification[130](index=130&type=chunk) - Interest rate variations can negatively affect financial performance by narrowing spreads and impacting net interest income[132](index=132&type=chunk)[454](index=454&type=chunk) - The company's loan portfolio, including commercial real estate and commercial & industrial loans, carries greater credit risk than residential mortgages[134](index=134&type=chunk)[455](index=455&type=chunk) - Extensive government regulation, potential capital requirement changes, and the LIBOR transition pose significant legal and operational risks[192](index=192&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) - Cybersecurity threats, including data breaches and fraud, could disrupt operations, and the company faces risks integrating acquisitions, such as realizing cost savings[207](index=207&type=chunk)[210](index=210&type=chunk) [Item 1B. Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[258](index=258&type=chunk) [Item 2. Properties](index=27&type=section&id=Item%202.%20Properties) The company operates 22 banking offices and five wealth management offices, with its headquarters in Cambridge, Massachusetts - The Company operates 22 banking offices, with its main office and headquarters in Cambridge, Massachusetts[259](index=259&type=chunk) [Item 3. Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material pending legal proceedings, with no expected material adverse effects from ordinary course claims - The Company is not currently party to any material pending legal proceedings[260](index=260&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[261](index=261&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under "CATC", with **7.83 million shares outstanding** as of March 2023, and an active share repurchase program alongside declared cash dividends - The Company's common stock trades on the NASDAQ Stock Market under the symbol "CATC"[265](index=265&type=chunk) Shareholder and Dividend Information | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Dividends Declared Per Share | $2.56 | $2.38 | - The Board authorized a share repurchase program for up to **5.0%** of outstanding common stock in March 2022, replaced by a similar 2023 program in March 2023[274](index=274&type=chunk)[275](index=275&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, net income decreased to **$52.9 million** despite an 11.9% rise in net interest income, as total assets grew to **$5.56 billion** and loans to **$4.06 billion**, largely influenced by the Northmark merger Key Financial Highlights (2022 vs 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $52.9 million | $54.0 million | | Diluted EPS | $7.30 | $7.69 | | Net Interest Income | $143.2 million | $128.0 million | | Total Assets | $5.56 billion | $4.89 billion | | Total Loans | $4.06 billion | $3.32 billion | | Total Deposits | $4.82 billion | $4.33 billion | - The increase in total assets, loans, and deposits in 2022 was significantly influenced by the acquisition of Northmark Bank[550](index=550&type=chunk)[551](index=551&type=chunk)[555](index=555&type=chunk) - The net interest margin decreased by **20 basis points** to **2.92%** in 2022 from **3.12%** in 2021, impacted by higher funding costs[371](index=371&type=chunk) - Noninterest income decreased by **3.0%** to **$43.0 million** in 2022, primarily due to a **$2.0 million** decline in wealth management revenue from market downturns[375](index=375&type=chunk)[376](index=376&type=chunk) [Critical Accounting Estimates](index=30&type=section&id=Critical%20Accounting%20Estimates) The company's critical accounting estimates are the Allowance for Credit Losses (ACL) and Income Taxes, both requiring significant management judgment and susceptible to change - The company's critical accounting estimates are the Allowance for Credit Losses (ACL) and Income Taxes, involving significant judgment and susceptibility to change[311](index=311&type=chunk) - The ACL methodology under CECL uses a discounted cash flow method incorporating probability of default and loss given default, based on a reasonable forecast period[312](index=312&type=chunk)[314](index=314&type=chunk) - Qualitative adjustments to the ACL account for factors not fully captured by quantitative models, such as portfolio concentrations and underwriting changes[316](index=316&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Net income decreased to **$52.9 million** in 2022 due to higher noninterest expenses and credit loss provisions, despite a **$15.2 million** increase in net interest income Comparison of Operations (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $52.9M | $54.0M | | Diluted EPS | $7.30 | $7.69 | | Net Interest Income | $143.2M | $128.0M | | Provision for (Release of) Credit Losses | $3.9M | ($1.3M) | | Noninterest Income | $43.0M | $44.3M | | Noninterest Expense | $110.4M | $100.5M | - The increase in net interest income was primarily due to growth in average earning assets and higher asset yields, partially offset by lower PPP loan income and higher deposit costs[332](index=332&type=chunk) - Noninterest expense increased by **9.9%**, driven by higher salaries and benefits (**$5.0 million** increase), data processing fees (**$1.9 million** increase), and non-operating merger expenses (**$1.9 million** increase)[378](index=378&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) [Changes in Financial Condition](index=38&type=section&id=Changes%20in%20Financial%20Condition) As of December 31, 2022, total assets grew **13.7%** to **$5.56 billion**, and total loans increased **22.4%** to **$4.06 billion**, largely due to the Northmark merger and organic growth - Total assets increased by **$668.2 million (13.7%)** to **$5.56 billion** at year-end 2022[550](index=550&type=chunk) - Total loans grew by **$743.8 million (22.4%)**, with organic growth (excluding the Northmark merger) accounting for **$440.5 million (13.3%)**[551](index=551&type=chunk)[552](index=552&type=chunk) - Total deposits increased by **$484.2 million (11.2%)**, but organic core deposits decreased by **$216.8 million (5.2%)** due to the rising interest rate environment[555](index=555&type=chunk)[556](index=556&type=chunk) Key Equity Metrics (per share) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Book Value | $66.38 | $62.83 | | Tangible Book Value (Non-GAAP) | $57.15 | $55.01 | [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through core deposits and wholesale funding, with **$1.5 billion** in funding capacity, and both the company and Bank exceeded regulatory capital requirements, maintaining a "well capitalized" status - The Company's primary liquidity source is core deposits, supplemented by FHLB borrowings and other wholesale funding, with total available funding capacity of **$1.5 billion** at December 31, 2022[599](index=599&type=chunk) - Total shareholders' equity increased to **$517.6 million** at year-end 2022 from **$437.8 million** at year-end 2021, mainly due to the Northmark Merger equity issuance and net income[602](index=602&type=chunk) Company Capital Ratios (as of Dec 31, 2022) | Ratio | Actual | Well-Capitalized Minimum | | :--- | :--- | :--- | | Total Capital | 13.52% | 10.0% (Bank) | | Tier 1 Capital | 12.45% | 8.0% (Bank) | | Common Equity Tier 1 | 12.45% | 6.5% (Bank) | | Tier 1 Leverage | 8.51% | 5.0% (Bank) | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by ALCO using simulation modeling to assess impacts on net interest income and economic value of equity under various rate shock scenarios - The company's main market risk is interest rate risk, managed by the Asset/Liability Committee (ALCO) to control exposure of net interest income and capital[581](index=581&type=chunk)[584](index=584&type=chunk) Net Interest Income Sensitivity (Instantaneous Rate Shock, as of Dec 31, 2022) | Rate Change (bps) | Year 1 % Change | Year 2 % Change | | :--- | :--- | :--- | | +300 | (1.8%) | 16.6% | | +200 | (1.3%) | 13.8% | | +100 | (0.5%) | 11.7% | | -100 | 1.6% | 6.6% | | -200 | 0.8% | 1.3% | - An EVE analysis at year-end 2022 estimated a **5.6%** decrease for an instantaneous **+200 basis point** rate increase, and a **1.3%** increase for a **-100 basis point** decrease[590](index=590&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=58&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022 and prior years, along with detailed notes and an unqualified auditor's opinion on both financial statements and internal controls [Notes to Consolidated Financial Statements](index=64&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial results, including CECL adoption, merger specifics, investment and loan portfolio compositions, derivatives, fair value measurements, and capital adequacy - The company's allowance for credit losses on loans was **$37.8 million** as of December 31, 2022, calculated under the CECL methodology[234](index=234&type=chunk)[374](index=374&type=chunk) Investment Securities Portfolio (Amortized Cost, Dec 31, 2022) | Category | Amortized Cost | | :--- | :--- | | Available for Sale | $182.0 million | | Held to Maturity | $1,052.0 million | | **Total** | **$1,234.0 million** | Loan Portfolio Composition (Dec 31, 2022) | Loan Type | Amount | % of Total | | :--- | :--- | :--- | | Commercial Mortgage | $1,914.4M | 47% | | Residential Mortgage | $1,648.8M | 40% | | Commercial & Industrial | $350.7M | 9% | | Home Equity | $111.4M | 3% | | Consumer | $37.6M | 1% | | **Total Loans** | **$4,062.9M** | **100%** | - The company uses interest rate swaps and floors to mitigate interest rate risk, with **$250.0 million** in notional hedging derivatives and **$499.6 million** in non-designated interest rate contracts as of December 31, 2022[416](index=416&type=chunk)[564](index=564&type=chunk) [Item 9A. Controls and Procedures](index=114&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with new controls implemented for the Northmark Bank integration - The CEO and CFO concluded the company's disclosure controls and procedures were effective as of December 31, 2022[502](index=502&type=chunk) - Changes to internal controls were made during Q4 2022 to integrate the Northmark Merger[504](index=504&type=chunk) - Management assessed internal controls over financial reporting as effective based on the COSO 2013 framework, affirmed by the independent auditor[508](index=508&type=chunk)[510](index=510&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=116&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance, including the Audit Committee and Code of Ethics, is incorporated by reference from the 2023 Proxy Statement - The information required for this item is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement[514](index=514&type=chunk) [Item 11. Executive Compensation](index=116&type=section&id=Item%2011.%20Executive%20Compensation) Detailed information on executive and director compensation is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement - The information required for this item is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement[515](index=515&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=116&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, and equity compensation plan details, is incorporated by reference from the 2023 Proxy Statement - The information required for this item is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement[729](index=729&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=116&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and Board of Directors' independence is incorporated by reference from the 2023 Proxy Statement - The information required for this item is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement[730](index=730&type=chunk)[747](index=747&type=chunk) [Item 14. Principal Accounting Fees and Services](index=116&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on fees paid to and services provided by the independent registered public accounting firm is incorporated by reference from the 2023 Proxy Statement - The information required for this item is incorporated by reference from the company's 2023 Annual Meeting of Shareholders Proxy Statement[744](index=744&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=117&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K report, including merger agreements, corporate governance documents, and certifications - This section lists all financial statements, schedules, and exhibits filed with the annual report, with financial statements located in Item 8[717](index=717&type=chunk)[718](index=718&type=chunk) - Exhibits filed include merger agreements for Northmark Bank and Wellesley Bancorp, corporate governance documents, and various executive compensation and retirement plans[720](index=720&type=chunk)[721](index=721&type=chunk) [Item 16. Form 10-K Summary](index=122&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this item - None[724](index=724&type=chunk)[749](index=749&type=chunk)

CAMBRIDGE BANCORP | --- | --- | --- | --- | --- | |-------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | 03 Company Profile | | | | | | 07 Financial Highlights | | | | | | 20 | | | | | | Strategic Focus 26 | | | | | | Appendix | | | | | CAMBRIDGE BANC As of December 31, 2022 ▪ Private Bank & Wealth Management Firm ▪ Client Wealth Assets: $4.1 billion • Gross Loans: $4.1 billion ▪ Noninterest income: 23% of revenue ▪ Market Cap: $664 million* 3 • Market of operation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to __________________ | --- | --- | |--------------------------------------------------------------------------------------------------|-- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to __________________ Commission File Number: 001-38184 | --- | --- | |------------------------------------------------------------------------ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to __________________ | --- | --- | |--------------------------------------------------------------------------------------------------|------ ...