Cambridge Bancorp Reports Preliminary 2002 Results; Sees Record Deposit and Loan Growth; Net Income Offset by Retirement Plan Charges.Business Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 22, 2003 Cambridge Bancorp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CATC CATC Cisco Academy Training Center CATC Computer Access Technology Corporation (Santa Clara, CA, USA) CATC Clean Air Technology Center CATC Combined Arms Training Center CATC Calhoun Area Technology Center .OB) today announced that it expects to report 2002 operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of approximately $6.5 million before the one-time charge described below. The Bank's earnings reflect difficult economic conditions, lower interest rates and the impact of lower stock market values on its trust revenues. The Bank also expects to report a one-time charge (reported as a cumulative effect of accounting change) of approximately $4.1 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the historical accounting for its officers' split dollar life insurance program and related Executive Supplemental Compensation Agreements, which are commonly known as SERP (1) (Search Engine Results Page) The page of results that a search engine returns. It includes links to pages that have been automatically discovered by crawlers, manually indexed by people or that are paid for by advertisers. See search engine. Agreements. Net income is expected to be approximately $2.4 million, after this one-time charge for 2002, compared with $9.0 million for 2001. The Bank saw record loan growth of $25 million during 2002. This loan growth principally resulted from the success of the Bank's new mortgage products, which have gained overwhelming acceptance. The Bank also saw record deposit growth of $84 million in 2002. The Bank's liquidity position also increased substantially by $65 million in 2002. The Bank's one-time charge reflects the financial statement effect of changing the previous accounting for its officers' life insurance program and related SERP Agreements. Historically, the Bank had accounted for its officers' life insurance program by reflecting the gross premiums paid as an asset. Under the revised accounting, the Bank has reflected the life insurance premiums at the present value of amounts expected to be recovered. In addition, the historical accounting for the SERP obligations has also been altered. The SERP Agreements provide supplemental retirement income to executives. The split dollar life insurance policies were intended to fund the SERP obligations of the Bank. The Bank's Board of Directors in December 2002 determined that it was in the Bank's long-term interest to terminate the split dollar life insurance policies and to modify the SERP Agreements. The result of terminating the split dollar life insurance policies and modifying the SERP Agreements had the impact of reducing 2002 net income by $364,000. The Bank also announced that its regular quarterly dividend of 22 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. will be payable April 1, 2003, to shareholders of record on March 3, 2003. "I am confident that the aggressive actions we have taken in 2002 are in the best long-term interests of the Bank, our shareholders, and our employees, and that the fundamental strengths of the Bank remain intact, as evidenced by the unparalleled strong balance sheet growth during the year," said James F. Dwinell III, Chairman and Chief Executive Officer. Final results are expected to be available in March. Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , in the heart of Harvard Square Harvard Square is a large triangular area in the center of Cambridge, Massachusetts, at the intersection of Massachusetts Avenue, Brattle Street, and John F. Kennedy Street. . Cambridge Trust Company is a 113-year-old Massachusetts chartered commercial bank with nine Massachusetts locations in Cambridge, Weston, Lincoln, Concord, and Beacon Hill Bea·con Hill An area of Boston, Massachusetts, noted for its historic residences, brick sidewalks, and picturesque mews. Noun 1. Beacon Hill - a fashionable section of Boston; site of the Massachusetts capital building . Cambridge Trust Company operates one of New England's leading trust and investment management operations with nearly $1.3 billion in assets under supervision. In addition, Cambridge Trust Company of New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). offers trust and investment management services from three locations: Concord, Exeter, and Peterborough. White Mountain Investment, a division of Cambridge Trust Company, is also based in Concord, NH. This press release contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " with respect to the financial condition, results of operations and business of the Bank. Actual results may differ from those contemplated by these statements due to factors such as changes in interest rates and in stock market values, and economic changes that affect borrowers' ability to meet their obligations. The Bank wishes to caution readers not to place undue reliance on any forward-looking statements. The Bank disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. |
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