About Cambridge Bancorp

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides a range of commercial and consumer banking services. The company operates banking offices in Eastern Massachusetts and New Hampshire. As a private bank, the comopany focuses on three core services that center around client needs. The company’s core services include Wealth Management, Commercial Banking, and Personal Banking. The company’s clients consist primarily of consumers and small- and medium-sized businesses in these communities and surrounding areas throughout Massachusetts and New Hampshire. The Wealth Management Group offers comprehensive investment management, as well as trust administration, estate settlement, and financial planning services. The company’s wealth management clients value personal service and depend on the commitment and expertise of its experienced banking, investment, and fiduciary professionals. The Wealth Management Group customizes investment portfolios to help clients meet their long-term financial goals. Through development of an appropriate asset allocation and disciplined investment selection, the company’s in-house research team targets long-term capital growth while seeking to minimize downside risk. The company’s internally developed, research-driven process is managed by the company’s skilled team of portfolio managers and analysts. The company builds portfolios consisting of its best ideas, focusing on individual global equities, fixed income securities, exchange-traded funds, and mutual funds. The company offers a wide range of services to commercial enterprises, non-profit organizations, and individuals. The company emphasizes service to consumers and small-and medium-sized businesses in its market area. The company originates commercial and industrial (C&I) loans, commercial real estate (CRE) loans, construction loans, consumer loans, and residential real estate loans (including one-to-four family and home equity lines of credit), and accepts savings, money market, time, and demand deposits. In addition, the company offers a wide range of commercial and personal banking services which include cash management, online banking, mobile banking, and global payments. The company focuses on wealth management, the commercial banking business and private banking for clients, including residential lending and relationship banking. Relationship banking focuses on providing exceptional service to clients and in deepening relationships. Within the commercial loan portfolio, the company has traditionally been a commercial real estate lender. However, in recent years the company has diversified commercial operations within the areas of commercial and industrial lending to including both Renewable Energy and innovation banking. Through its renewable energy lending efforts, the company provides financing for developers and operators of commercial and utility scale solar energy projects. Target clients generally include experienced borrowers who have built or managed other renewable energy facilities, and financing is provided for the construction and permanent financing of new projects, the acquisition of completed projects, or the refinancing of existing operating projects. The Innovation Banking Group has a narrow client focus for lending and provides a local banking option for technology and entrepreneurial companies across a wide range of industries within its market area. Financing includes recurring revenue based lending to support working capital, as well as growth capital term debt with borrowers that have demonstrated continued performance to plan during their growth progression. The company engages principally in the business of attracting deposits from the public and investing those deposits. The company invests those funds in various types of loans, including residential, CRE, commercial and industrial, and consumer loans. The company also invests its deposits and borrowed funds in investment securities and has two wholly owned Massachusetts security corporations, CTC Security Corporation and CTC Security Corporation III, for this purpose. Deposits at the company are insured by the Federal Deposit Insurance Corporation (the FDIC) for the maximum amount permitted by FDIC regulations. Investment management and trust services are offered through the company’s two wealth management offices located in Massachusetts and three wealth management offices located in New Hampshire. The company also utilizes its subsidiary and non-depository trust company, Cambridge Trust Company of New Hampshire, Inc., to provide specialized wealth management services in New Hampshire. The company is active in the communities the company serve. The company makes contributions to various non-profits and local organizations, invests in community development lending, and invests in low-income housing. All, of which strive to improve the communities that its employees and clients call home. Market Area The company operates in Eastern Massachusetts and Southern New Hampshire. The company’s primary lending market includes Middlesex, Essex, Norfolk, and Suffolk counties in Massachusetts and Rockingham and Hillsborough counties in New Hampshire. The company’s lending area is primarily an urban market area with a substantial number of one-to-four-unit residential properties, some of which are non-owner occupied, as well as apartment buildings, condominiums, office buildings, and retail space. As a result, the company’s loan portfolio contains a significantly greater number of multi-family and CRE loans compared to institutions that operate in non-urban markets. The company’s market area is located largely in the Boston-Cambridge-Quincy, Massachusetts/New Hampshire Metropolitan Statistical Area (MSA). Investment Securities The company’s securities portfolio consists of securities available for sale (AFS) and securities held to maturity (HTM). The largest component of the securities portfolio is mortgage-backed securities, all of which are issued by U.S. government agencies or U.S. government-sponsored enterprises. Securities available for sale consist of certain U.S. Government Sponsored Enterprises (GSE) obligations, U.S. GSE mortgage-backed securities, and corporate debt securities. Deposits The company accepts deposits primarily from clients in the communities in which its branches and offices are located, as well as from small- and medium-sized businesses and other clients throughout its lending area. The company offers a variety of deposit accounts with a range of interest rates and terms. The company’s deposit accounts consist of relationship checking for consumers and businesses, statement savings accounts, certificates of deposit, money market accounts, interest on lawyer trust accounts, commercial and regular checking accounts, and individual retirement accounts. Supervision and Regulation The company is a legal entity separate and distinct from its first-tier bank subsidiary, the bank, and its second-tier subsidiaries, Cambridge Trust Company of New Hampshire, Inc., a New Hampshire state-chartered non-depository trust company, and CTC Security Corporation and CTC Security Corporation III, which are used to invest the bank’s deposits and borrowed funds in investment securities. As a bank holding company, the company is regulated under the Bank Holding Company Act of 1956, as amended (BHC Act), Massachusetts laws applying to bank holding companies and Massachusetts corporations more generally. The company is subject to inspection, examination, and supervision by the Board of Governors of the Federal Reserve System (the Federal Reserve) and the Massachusetts Division of Banks (the MA DOB). As a Massachusetts state-chartered insured depository institution, the bank is subject to supervision, periodic examination, and regulation by the MA DOB as its chartering authority, and by the FDIC as its primary federal regulator. The prior approval of the MA DOB and the FDIC is required, among other things, for the Bank to establish or relocate any additional branch offices, assume deposits, or engage in any merger, consolidation, purchase, or sale of all or substantially all of the assets of any insured depository institution. Cambridge Trust Company of New Hampshire, Inc. is subject to supervision, periodic examination, and regulation by The State of New Hampshire Banking Department. As a Massachusetts corporation and bank holding company, the company is also subject to certain limitations and restrictions under applicable Massachusetts law. The company is required to file annual and periodic reports with the Federal Reserve and such additional information as the Federal Reserve may require. The Federal Reserve may examine a bank holding company and any of its subsidiaries and charge the Company for the cost of such an examination. Transactions between a bank and its affiliates are subject to certain restrictions under Sections 23A and 23B of the Federal Reserve Act (the FRA) and the Federal Reserve’s implementing Regulation W. The company is considered an affiliate of the bank under these sections. Generally, Sections 23A and 23B: (1) limit the extent to which an insured depository or its subsidiaries may engage in covered transactions with an affiliate (as defined in such sections) to an amount equal to 10% of such institution’s capital and surplus and with all affiliates, in the aggregate, to an amount equal to 20% of such capital and surplus; and require all transactions with an affiliate, whether or not covered transactions, to be on terms substantially the same, or at least as favorable to the institution or subsidiary, as the terms provided or that would be provided to a non-affiliate. The bank is well-capitalized, under the PCA standards. The bank’s deposit accounts are fully insured by the Deposit Insurance Fund (the DIF) of the FDIC up to the deposit insurance limit of $250,000 per depositor, per insured institution, per ownership category, in accordance with applicable laws and regulations. The company and the bank are subject to a number of federal and state consumer protection laws that govern their relationship with clients. These laws include the Consumer Financial Protection Act of 2010, Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Right to Financial Privacy Act, the Servicemembers Civil Relief Act, and these laws’ respective state-law counterparts, as well as state usury laws and laws regarding unfair and deceptive acts and practices. The company is subject to federal laws, including the Gramm-Leach-Bliley Act (the GLBA), and certain state laws containing consumer privacy protection provisions. History Cambridge Bancorp was founded in 1890. The company, a Massachusetts corporation, was incorporated in 1982.