#1Investor Presentation July 19, 2022 CAMBRIDGE BANCORP NASDAQ: CATC Parent of Cambridge Trust Company#2| Contents 03 Company Profile 07 Financial Highlights 19 Merger with Northmark Bank 22 Strategic Focus 27 Appendix This presentation includes non-GAAP measures and should be reviewed with the Company's Q2 2022 Earnings Release and SEC filings. CAMBRIDGE BANCORP#3| Company Profile As of June 30, 2022 ■ Banking subsidiary: Cambridge Trust Company (1890) Private Bank & Wealth Management Firm ■ Headquarters: Harvard Square, Cambridge, MA ◉ Client Wealth Assets: $4.0 billion. Banking Assets: $5.1 billion Gross Loans: $3.5 billion Total Deposits: $4.3 billion ■ Noninterest income: 25% of revenue ■ NASDAQ: CATC Market Cap: $583 million* CAMBRIDGE BANCORP 3 *Market Cap is as of July 1, 2022.#4Why Cambridge Bancorp? Market of operations offer significant long term growth prospects Private Banking business model with diversified fee revenue through wealth management focus Strong financial performance with excellent asset quality track record Low cost core deposit base Financially and strategically attractive acquisitions CAMBRIDGE BANCORP Wealth Mana Management Commercial Client Private Banking cial Banking Residential Len#5Geographic Footprint (Pro Forma with Northmark) CATC Branches (19) CATC Wealth Offices (5) Northmark Branches (3) Massachusetts Pro Forma Franchise Overview North Andover Portsmouth 1 New Hampshire 2 Andover Concord Lexington Winchester 3 Weston Wellesley Needham CAMBRIDGE BANCORP Source: S&P Global Market Intelligence; FDIC Cambridge Boston Massachusetts Boston LO#6| Market Characteristics Wealth Management capability is well-suited to the highly affluent Boston and southern New Hampshire markets ■ Greater Boston economy is diversified; the region is a global hub for innovation, healthcare, life sciences, and education² ■ Greater Boston lab market remains robust, with increased construction expected to continue to meet demand through 2023² Median Household Income ($000s)¹ $104 $93 $72 Boston- Cambridge- Newton MSA Manchester-Nashua MSA Nation Proj. Household Income Change ('22 – '27)¹ 12.2% Boston- Cambridge- Newton MSA 10.5% Manchester-Nashua MSA Unemployment Rates¹ 2.9% 1.8% 12.1% Nation 3.6% Cambridge Trust's private banking model caters to entrepreneurial local communities Boston- Cambridge- Newton MSA Manchester-Nashua MSA Nation Cambridge Lab Space Vacancy² 0.7% 2.3% 2.5% Q3 2021 Q4 2021 Q1 2022 CAMBRIDGE BANCORP 6 1: Source: S&P Global Market Intelligence as of 2022, and Bureau of Labor Statistics as of May 2022. 2: Source: Newmark Boston Office Market and Life Science Reports Q4 2021 and Q1 2022, Boston Business Journal April 2021.#7Strong Financial Performance Operating Net Income and Operating Diluted Earnings Per Share Dollars in millions $65 $55 $45 $35 5-Year EPS CAGR (through 2021) +13.5% $29.2 $24.0 $25 $43.9 In dollars $19.00 $54.8 I $16.00 $7.81 T $6.90 $5.80 $6.20 $15 $5 2018 2019 2020 Operating Net Income (left axis)* 2021 $13.00 $10.00 $26.7 $7.00 $4.00 $3.79 $1.00 YTD 2022 Operating Diluted Earnings Per Share (right axis)* 7 CAMBRIDGE BANCORP *Operating Net Income and Operating Diluted EPS are adjusted to exclude merger related and other non operating expenses.#8Q2 2022 Performance Highlights Operating EPS $1.90 Operating ROAA 1.07% Operating ROTCE 14.08% $13.4M Operating Net Income 2.81% Adjusted Net Interest Margin¹ 0.97% ACL Ratio² CAMBRIDGE BANCORP $55.33 Tangible Book Value per Share 58.97% 7.75% Operating Efficiency TCE Ratio Ratio 0.12% NPAs to Total Assets 0.00% Net Recoveries / Total Loans (Annualized) 8 1: Adjusted net interest margin excludes the impact of PPP loans and merger related loan accretion. 2: ACL Ratio does not include PPP loans.#9Strong Capital Position & Liquidity As of June 30, 2022 Capital Position* 16.0% 12.0% 13.4% 12.3% 12.3% 10.5% 8.0% 8.5% 8.1% 7.8% 7.0% 4.0% 4.0% FRB Discount Window Available $483 0.0% FHLB Available $455 TOTAL CAPITAL TIER 1 CAPITAL TIER I COMMON TIER I LEVERAGE EQUITY TANGIBLE COMMON EQUITY* ■CATC Minimum Capital Required** Liquidity ($M) Outstanding Funding $254 Wholesale Deposits Available $504 Correspondent Bank Available $10 Tangible Book Value per Share Total access to funds of $1.7B $60.00 $55.00 $50.00 $45.00 $55.01 $55.33 $50.07 $46.66 $40.00 $40.57 $35.00 $30.00 2018 2019 2020 2021 2022 CAMBRIDGE BANCORP *Current quarter capital ratios are estimated. Tangible Common Equity is not a regulatory capital ratio. **Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer. Tangible Common Equity and Tangible Book Value Per Share are non-GAAP measures.#10| Wealth Management & Noninterest Income Listed as the 18th Largest Independent Investment Advisers in Massachusetts by the Boston Business Journal in 2022 Client Wealth Assets ($M) Net Client Flows ($M) 2018 2019 2020 2021 $4,853 $4,168 $4,016 Starting AUM YTD 2022 $2,971 $2,760 $3,287 $3.994 $4.656 $3,453 Acquired AUM* 339 $2,877 Net Flows (176) (69) 90 (166) Net Market (35) 532 437 572 (645) Impact Ending AUM $2,760 $3,287 $3,994 $4,656 $3,845 Custody Assets 117 165 174 197 171 2018 2019 2020 2021 2022 Total WM Assets $2,877 $3,453 $4,168 $4,853 $4,016 Wealth Management Revenue ($M) $35.0 $29.8 $26.5 $25.2 Noninterest Income ($M) NII was 25% of Revenue in 2022 $44.3 $39.5 $36.4 $33.0 $16.7 0.81% 0.84% 0.81% AUM AUM AUM Fee Fee Fee 0.79% AUM Fee 0.78% AUM Fee 2018 2019 2020 2021 YTD 2022 $22.5 2018 2019 2020 2021 YTD 2022 Wealth Management All Other CAMBRIDGE BANCORP *Acquired in our merger with Wellesley Bancorp, Inc. AUM is comprised of approximately 61% equities, 26% fixed income, and 13% cash/other as of June 30, 2022. AUM Fee represents the weighted average fee on Assets Under Management during the period. 10#11| Total Assets and Loans As of June 30, 2022 Total Assets ($M) $5,058 $4,892 $3,949 $2,856 $2,101 2018 2019 2020 2021 2022 Total Loans ($M) $3,523 5.5-Year Loans CAGR $3,319 (through 2022) $3,154 +20% $2,227 $1,560 2018 2019 2020 2021 2022 CAMBRIDGE BANCORP Consumer 1% Construction 3% Loan Portfolio Residential- Fixed Rate 22% CRE 44% $3.5B outstanding as of June 30, 2022 54.1% Commercial 45.9% Consumer 3.51% Q2 2022 average yield excluding fair value accretion Residential- Adjustable Rate 19% Home Equity 3% Commercial & Industrial 8% 11 2019 and 2020 include acquired balances from Optima Bank & Trust Company and Wellesley Bancorp, Inc., respectively.#12| Deposit and Net Interest Margin Profile Total Deposits ($M) 5.5-Year CAGR (through 2022) +18% $3,403 $4,331 $4,264 MMDA & Other Savings 47% Deposit Composition Core Deposits 97% Demand Deposits 33% $2,359 $1,811 Time Deposits 3% 2018 2019 2020 2021 2022 Non-Interest-Bearing Deposits ($M) NOW & Other Trans. Accounts 17% Adjusted Net Interest Margin & Cost of Deposits Q2 2022 Avg. Cost of Deposits: 0.17% June 30, 2022 Spot Cost of Deposits: 0.17% $1,394 $1,399 5.00% $1,006 4.00% 3.36% 3.33% 3.22% 2.93% 3.00% 2.67% 2.81% $631 $494 2.00% 0.70% 1.00% 0.28% 0.25% 0.13% 0.17% 0.17% 0.00% 2018 2019 2020 2021 Q1 2022 Q2 2022 2018 2019 2020 2021 2022 Adj. Net Interest Margin Cost of Deposits CAMBRIDGE BANCORP 12 2019 and 2020 include acquired balances from Optima Bank & Trust Company and Wellesley Bancorp, Inc., respectively.#13| Commercial Banking As of June 30, 2022 Business Deposits represented 48% of core deposits with a weighted average cost of deposits. of 0.08% Focused on continued diversification of the commercial portfolio into Commercial & Commercial Loans ($M) $1,194 $1,583 Industrial Dedicated and centralized credit risk management function. CAMBRIDGE BANCORP *Commercial & Industrial excludes PPP loans. $852 2018 2019 2020 ■Commercial Mortgage $1,902 $1,758 2021 I I Commercial & Industrial* 2022 13#14| Commercial Real Estate Loan Portfolio By Sector By Geography Industrial/Warehouse 3% Hotel & Lodging 4% Other 1% Construction & Land 5% Mixed Use - Office/Retail 6% Other Residential 7% Commercial/Flex Space 10% Multifamily 36% Other 3% ME 2% Retail 11% Office 17% Portfolio Details: • $1.6B outstanding as of June 30, 2022 $2.1M average loan size CAMBRIDGE BANCORP NH 11% MA 84% 14#15Commercial & Industrial Loan Portfolio By Industry Accommodation and Food 1% Construction 1% Health Care and Social Assistance 1% Manufacturing 3% Real Estate, Rental, and Leasing 6% Wholesale Trade 9% Retail Trade 1% Renewable Energy 46% NH 6% By Geography Professional Scientific and Technical 10% All Other 22% NY 8% RI 10% MA 60% Other 16% Industry breakout excludes PPP loans Portfolio Details: • Geography breakout excludes PPP loans $268M outstanding as of June 30, 2022; $265M outstanding excluding PPP loans $584k average loan size CAMBRIDGE BANCORP 45 15#16| | Consumer Loan Portfolio As of June 30, 2022 51% Balance 6% 20% ■ Residential - Fixed ■Residential - Adjustable ■ Home Equity Usage 43% 80% 100.0 0.0 1% 3% 14% Weighted Avg. LTV* 58% Geography ■ Owner Occupied ■Non-Owner Occupied ■MA NH ME Other $1.6B outstanding as of June 30, 2022 CAMBRIDGE BANCORP Weighted Average FICO 783** 82% 16 *The Weighted Average LTV calculation only includes one collateral property value for loans with multiple collateral and excludes loans with a zero balance. **Most Recent Weighted Average FICO Score, excluding loans with a zero balance.#17| Asset Quality Highlights 0.27% NPAs / Assets 0.12% 0.12% 0.11% 0.28% NPLs / Loans 0.16% 0.17% 0.17% 2020 2021 Q1 2022 Q2 2022 2020 2021 Q1 2022 Q2 2022 Reserves / Loans (1) 1.19% 1.05% 1.00% 0.97% Annualized Net Charge Offs (Recoveries)/Loans 14-year average NCOs of 0.01% 0.01% 0.00% 0.00% 0.00% 2020 2021 Q1 2022 Q2 2022 2020 2021 Q1 2022 Q2 2022 CAMBRIDGE BANCORP 17 1: The Company adopted CECL in Q1 2020. As a result of the COVID-19 pandemic, the Company increased the allowance for credit losses in 2020. The Reserve to Loan level in 2020, 2021 and 2022 excludes PPP loans.#18| Allowance for Credit Losses (ACL) Dollars in millions 29% $45 $40 Allowance for Credit Losses: YTD June 2022 $35 $34.50 $1.16 $34.12 $0.00 -$1.54 $30 1.05% 0.97% $25 $20 $15 2021 1% Economic Condition Changes Commercial Loans ACL Ratio Q2: 1.08%* 70% ■ Quantitative Qualitative PCD CAMBRIDGE BANCORP Portfolio Changes Net Recoveries Q2 2022 Consumer Loans ACL Ratio Q2: 0.84% ACL Key Attributes: Sophisticated model uses loan level probability of default loss given default discounted cash-flows as the primary basis for the quantitative loss estimation Starting Unemployment Rate in forecast period: 3.58% Ending Unemployment Rate in forecast period: 3.73% Forecast Period: 2 Quarters Reversion Period: 4 Quarters ACL Ratio excludes PPP loans. 18#19Merger with Northmark Bank 19 CAMBRIDGE BANCORP#20| Overview of Merger with Northmark Bank ◉ Transaction Rationale Strategic expansion into attractive, affluent North Andover, Andover and Winchester markets through a combination with a high-quality local bank Financially compelling transaction Approximately 5.8% accretive to Cambridge 2023 earnings per share (1) Low integration and execution risk, reflecting cultural compatibility Asset-sensitive through both low-cost long- term deposit base and sizable cash position Affluent Markets of Operation (3) Winchester and Andover are among the most affluent markets in Greater Boston $104 $93 $94 Boston-Cambridge-Newton Manchester-Nashua MSA MSA CAMBRIDGE BANCORP $191 $136 $72 Portsmouth, NH Winchester, MA Andover, MA National Avg. NORTHMARK BANK Announced Transaction Overview Announcement Date: Transaction Value (2): Price/Tang. Book Value (2). Price / LTM Core Earnings per Share (2): 2023 EPS Impact (1): Tang. Book Value Impact: Tang. Book Value Earnback (Crossover): Northmark Profile (4) 5/23/2022 Headquarters: North Andover, MA $63 mm Founded: 1987 118% Assets: $428 mm 11.2X Gross Loans: $316 mm 5.8% Accr. Deposits: $365 mm 1.7% Dil. 2.25 Years Common Equity: $55 mm LTM Net Income: $3.9 mm CAMBRIDGE BANCORP 20 (1) Based on mean consensus analyst earnings estimates for 2023 as of May 23, 2022. (3)Data as of June 30, 2021; HHI data is not available for North Andover, MA. (2) Based on CATC closing price of $79.94 as of May 20, 2022. (4) Northmark Bank information as of June 30, 2022.#21| Pro Forma Loan & Deposit Composition As June 30, 2022 CAMBRIDGE BANCORP NORTHMARKⓇ BANK Loan Mix Deposit Mix Multifamily 17.5% CRE 24.9% C&D C&I 3.0% 7.7% Total Loans: $3.5 billion MRQ Yield: 3.51% Savings & MMDA 47.6% Transaction 16.7% CD's 2.9% Noninterest- Bearing Demand 32.8% Consumer 3.9% CRE 20.2% Multifamily 4.0% 1-4 Family 43.0% C&I C&D 8.3% 5.6% Consumer 5.9% Pro Forma as of June 30, 2022 Multifamily 16.4% 1-4 Family 56.0% Total Loans: $316 million MRQ Yield: 4.35% Savings & MMDA 31.3% CD's 26.4% Noninterest- Bearing Demand 38.1% CRE 24.6% C&D 3.4% C&I 7.5% Consumer 4.1% Total Loans: $3.8 billion MRQ Yield: 3.57% Savings & MMDA 46.3% Transaction 15.7% CD's 4.8% Noninterest- Bearing Demand 33.2% Total Deposits: $4.3 billion MRQ Cost: 17 bps CAMBRIDGE BANCORP Transaction 4.2% Total Deposits: $365 million MRQ Cost: 19 bps Total Deposits: $4.6 billion MRQ Cost: 17 bps Northmark Bank loan and deposit data as of June 30, 2022, per call report. 21 1-4 Family 44.0%#22Strategic Focus CAMBRIDGE BANCORP 222#23Strategic Progress and Focus Recent Progress Announced merger with Northmark Bank adding attractive clients and markets Generated record operating earnings in 2021 Grew core deposits by $1 billion or 32% in 2021 Committed $110 million to support affordable housing in Massachusetts by partnering with the Massachusetts Housing Partnership in 2021 Supported clients & communities during the pandemic which included $293M in PPP Lending Named the 18th Largest Independent Investment Advisers in Massachusetts (according to Boston Business Journal) Named as one of the region's top corporate charitable contributors (according to Boston Business Journal) Increased resources to support expansion of business development initiatives CAMBRIDGE BANCORP " Strategic Focus Leverage private banking model in highly attractive markets Increase brand awareness Expand Wealth Management assets under management Grow and diversify Commercial Banking opportunities & relationships Expand client base & deepen existing relationships to grow deposit base 23#24Corporate Responsibility at Cambridge Trust "At Cambridge Trust, corporate responsibility isn't just core to our values as a company, it's the way we've done business for more than 130 years." -Denis Sheahan, President and CEO Your Bank We have an obligation to reduce our environmental impact and empower our people, communities, and customers. Our Communities We only succeed if we serve as a true financial partner to the communities in which we work and live. Our People We foster an ingrained focus on employee engagement, diversity, equity and inclusion (DE&I), and career development that allows our people to achieve their full potential. $108 Million Solar lending and hydropower for commercial customers across New England $110 Million Voluntary loan commitment to the Massachusetts Housing Partnership supporting affordable housing and economic development 50% With eight women on our Board of Directors at Cambridge Trust, one of the highest number of women for companies listed on the NASDAQ.* Consumption We are making investments in technology to reduce the use of paper and carbon emissions Charitable Giving Donated to over 260 organizations supporting our local communities in 2021 24% Of all employees are racially or ethnically diverse, which includes 12% of those who are Vice Presidents and above Additional information can be found within the corporate responsibility section of our website CAMBRIDGE BANCORP 24 *Source: S&P Global Market Intelligence O 2022.#25I Stock Price Performance and Dividend Trend 125 Stock Price Performance Price Change (%) 100 75 50 25 0 -25 Dec '15 Jun '16 Dec '16 Jun'17 Dec '17 Jun '18 Dec '18 Jun '19 Dec '19 Jun '20 Dec '20 Jun' 21 Dec'21 Jun 22 NASDAQCM:CATC: 74.47 % S&P United States BMI Banks Index: 33.86 % -KBW Nasdaq Bank Index: 38.22 % $2.50 $1.96 $1.50 $0.50 2018 Declared Dividends 22 years of increased dividends (1999 – 2021) $2.04 2019 $2.38 $2.12 12% $1.92 2020 CAMBRIDGE BANCORP Source: S&P Global Market Intelligence 2022 as of June 30, 2022. 2022 Dividends includes all dividends declared through July 19, 2022. 2021 2022 25 25#26| Why Cambridge Bancorp? s Business Model Focused private banking business model CAMBRIDGE BANCORP • Attractive geographic markets Affluent client base • Expanding commercial services Investing for future growth Dili Performance • Consistently profitable • Strong returns Core deposit funded Well-capitalized Credit Strong asset quality Sound underwriting acumen and risk management practices T Culture • Client-centric service culture Loyal client base Experienced, conservative leadership Commitment to our community 26 20#27Appendix CAMBRIDGE BANCORP 27#28Appendix: Interest Rate Risk Profile As of June 30, 2022 Net Interest Income (NII) Sensitivity Immediate Parallel Shock - Year 1 Immediate Parallel Shock - Year 2 Up 100 Up 200 14.0% Up 300 Up 100 Up 200 Up 300 14.0% 11.8% 10.0% 6.0% 10.0% 9.6% 7.6% 6.0% 2.0% 2.0% -2.0% -6.0% -2.0% (1.4%) (2.9%) (4.3%) -6.0% - Ramps Up 200 Year 1 Year 2 14.0% 10.0% 7.4% 6.0% 2.0% -2.0% -6.0% (2.1%) These estimates of changes in the Company's net interest income require us to make certain assumptions including loan- and mortgage-related investment prepayment speeds, reinvestment rates, and deposit maturities and decay rates. These assumptions are inherently uncertain and, as a result, we cannot precisely predict the impact of changes in interest rates on net interest income. Although our analysis provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a precise forecast of the effect of changes in market interest rates and will differ from actual results. CAMBRIDGE BANCORP 28#29I Governance Responsibility The Board of Directors believes in strong oversight and engagement with our shareholders Key attributes of our Governance and Compensation practices are summarized below: Recently implemented a Risk Committee with a defined charter and purpose Recently added Environmental, Social and Corporate Governance (ESG) oversight as part of the corporate governance charter with clearly defined roles and responsibilities Expanded proxy disclosures in several areas including diversity metrics, compensation philosophy and board. composition Adopted a broad Human Rights Policy Statement that expressly includes gender identity Require our senior executives to satisfy meaningful stock ownership guidelines to strengthen the alignment with our shareholders' interests Align pay with performance by having. performance-based compensation greater than 50% of target total direct compensation, on average, for Named Executive Officers No uncapped payouts under our short or long term incentive plans Executive equity awards are 75% performance-based restricted stock units. ("PRSUS"), whose vesting is subject to performance relative to comparable banks. over a 3-year period Dividends on PRSUS issued are not paid until units are earned/vested Maintain a clawback policy that allows us to recover annual and long-term performance based compensation if we are required to restate our financial results No tax gross-ups of 280G excise taxes CAMBRIDGE BANCORP 29#30Forward Looking Statements and Non-GAAP Measures 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, the impact of any laws or regulations applicable to the Company, and measures being taken in response to the COVID-19 pandemic and the impact of the COVID-19 pandemic on the Company's business are forward-looking statements. 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 businesses of Cambridge and Northmark may not be combined successfully, or such combination may take longer to accomplish than expected; the cost savings from the merger may not be fully realized or may take longer to realize than expected; operating costs, customer loss and business disruption following the merger, including adverse effects on relationships with employees, may be greater than expected; governmental approvals of the merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; the shareholders of Northmark may fail to approve the merger; 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 duration and scope of the COVID-19 pandemic and its impact on levels of consumer confidence; actions that governments, businesses and individuals take in response to the COVID-19 pandemic; the impact of the COVID-19 pandemic and actions taken in response to the pandemic on 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; the pace of recovery when the COVID-19 pandemic subsides; disruptions in the Company's ability to access the capital markets; 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, 2021, which the Company filed on March 14, 2022. 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. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("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 conjunction with business combination 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." Reconciliations are included in the most recent Earnings Release, which can be located on our website here: http://ir.cambridgetrust.com/News/ CAMBRIDGE BANCORP 30#31CAMBRIDGE BANCORP Parent of Cambridge Trust Company Denis K. Sheahan Chairman, President and Chief Executive Officer 617-520-5520 CAMBRIDGE BANCORP Michael F. Carotenuto Executive Vice President and Chief Financial Officer 617-520-5520 31