Cambridge Bancorp (CATC) 19 Oct 212021 Q3 Earnings call transcript

Welcome to the Cambridge Bancorp Third Quarter Earnings Conference Call. We’ll be making forward-looking statements during this call and actual results may differ materially. We encourage you to review the disclaimer and our earnings release dealing with forward-looking information which applies to statements made in this call.

In addition, some of our discussion may include references to non-GAAP financial measures. Information about those measures including reconciliation to GAAP measures may be found in our SEC filings and in our earnings release. in mode. be will participants a listen-only All [Operator note this being recorded. event is Instructions] Please like the to Mr. now would I turn conference to over Denis Chief and Sheahan, Chairman, Executive Officer. President go Please sir. ahead,

had Bancorp joining everyone. as announcement joined by from Cambridge our quarter in level hours growth deposit the on plan strong had Mike and balance Financial few of near morning of highlight of you. another an I Chief always We Thank performance. growth ago. our just again it focussed Hopefully elevated earnings call term. today. a in Core our was thank with growth Good sheet liquidity and that and deposit quarter X% Company It earnings the key annualized. conference remain Officer. you Carotenuto financial opportunity And am see or are XX% Cambridge for again Trust brings comfortable shows a to you to the growth with

deploy into conducive or and X% achieving PPP optimistic both can the growth this remain X% redemptions by we excluding fourth continued confident and Market the residential quarter quarter. commercial this in grew Loans regarding with are loans the annualized remain to term. liquidity we We in long medium conditions lending, or growth. in to

quality continues to activity. First, larger lending our talent as are and are year-to-date benefiting as innovation to sciences stable construction. deliver. we reputation Management low life remains of conditions for should to positive So in opportunity, marketplace. are optimistic the we team a are the an the X% asset and net to flows in quarter, with benefited to merged ability These the borrower bank execution. beneficial being equity housing supply especially in achieve consistency for return solid that the rates consolidation remained quarter, growth? -- at are Returning companies and housing, on operating and with for and revenue why finally, the particular, space, in In exceed basis. on third a driven interest on quarter assets industrial, both X.XX% grew strategy emphasize, we both periods. by average And and economic economy proven profitability in and Recent about tangible our superb. an clients. common we Demand results lab good at Massachusetts, of dependable multifamily, alternative has Core and XX.X% provide in return our sectors a such marketplace result Wealth solid

history. exceptional provide proud of our work responsibly we contributions volunteering in core This of A to opportunity Partnership provide and and by lending lend of our in other commitment. in of Massachusetts, in with engagement In Housing service. where through in in lending lending to grow the strengthening team’s high our areas, agreement the their to in on I'm provides diversification. commitments communities recent in $XXX First, affordable affordable fee live housing financial sign support Massachusetts client focus largest three business was one this the quality areas collaboration build commitment revenue million and deposits, core strategy;

back. and upon based and clients look is support of our pay to our communities, the we success it Our

initiative This are appreciate the colleagues my team and on track Our is diligently happen intense which Systems to also important Wealth forth on and is is working an greatly conversion, I the quarter. this planned on Management putting this endeavor. effort

call the questions. for I will now open that, with So

[Operator begin first now the We from comes today question-and-answer Instructions] Piper question Sandler. will Our Mark with session. Fitzgibbon

morning. Hey guys, good

morning. Good

Morning, Mark.

see has and I’m the And people that curious whether to are you or to are lenders branch relationship continuing I we also, about consolidation. hiring likely guess first question, of I’m pace curious, hire slowed? more

yes, lenders, actively the front. we’re talent So conversations first the with having on lending on Mark

you may in work happened that want our with there marketplace, for consolidation to are some that those that’s bank not As know, the the of new entity.

successful. So both And lending in And and update on we’ll be we’re some There would having wealth is there. we also side the you opportunity active coming hope on that, to side, conversations management on there. the quarters. in

don’t, of an I meeting more network branch efficient, months to In to always we terms offices consolidate opportunity are if offices if look and think continue consolidation, that. so. we’ve at our last three standards. closed And the our at see We or those XX we we’ve they see in will to become performance look

term the horizon. We near further planned no closures have on

Okay, me. great. that, And excuse

loan if the rates today? with you I what maybe and wondered could pipelines us commercial share look like the Secondly, complexion, utilization size of line

that. have I Mark, Sure,

So as And pretty is end about today, at of it comparable quarter. that’s $XX where to of commercial second portfolio the was the million. the

house. then opportunity line side see in we continued in So utilization, mid-XXs of terms in for the the C&I there. growth And the of it’s

sort And with thoughts on margin your then, into great. move quarter? could of we fourth you share the Mike, us Okay, as the

margin. to you’re see on moderate bit continued going Sure, a pressure little the

what that primarily quarter, the of success because securities If compression basis right, of our margin of that into happened the during portfolio. and five the reinvestment gathering was you third at the deposit about look points efforts of

going in pressure. see So deposits, little success continuing more to a for to see bit you're

in deferral, And in? remaining loans loans those are what great. those sector then Okay, four lastly, on

I me are them a and restaurant. of give just a residential, are I of one Mark, minute two to commercial, pull of two them is that Sure, think, think and them up. It’s,

it So what that’s is.

Okay, you. great. Thank

Our next Motta with from question Kelly comes KBW.

you believe terms of to for with a to target, Good past just year loan X% if the a goal in really these I morning, kind expect? growth strong had Thanks. quarters two gave wondering you to kind Mike. and of X% as update there what back Denis Circling an growth, of

fourth here Yes, looks based right to what we’re quarter. the double so Kelly, upon know, we’re you in going low it be what depending seeing now upon like maybe digit, happens

about optimistic continued we're So growth.

would on you’re buying maybe what too. helpful. securities Mike, any And, yields, just some purchases color sort Thanks. that of short cuts, be duration, its for growth, give thing? Assuming color on Great. the of kind outlook but you your Can

Sure.

investment duration, the the a of short yield four, the So four duration, effective portfolio, on the and is there's about right portfolio half about we’re and X.X%. years and buying now moderate

you’ve the any on then held that, you’ve given to finally And the see sort potentially really of thoughts buyback. growth, Okay. wanted buyback, on just have on sheet had balance if some you good updated

point than as the anticipated Kelly, capability executing the we is is into we’re execute so this have in will this but we a coming is in plan buyback this the the as time. At Tangible a we point. this buyback, Denis. common at place at [ph]. to every to in mid-Xs growth execute do. we not buyback don't on year, it always planning we our better evaluate we we, And been as quarter a has point, But

I’ll step back. you. Thank Great.

Kelly. Thanks,

I’d back Sheahan concludes question-and-answer call This to like turn any the session. for remarks. closing to over our Denis

for our joining everybody earnings Thanks forward and year-end announcements. us. look speaking We you interest your following we to to appreciate

The now Thank concluded. for you today’s conference has attending presentation.

You may now disconnect.