Investor Presentaiton
| Allowance for Credit Losses (ACL)
Dollars in millions
Allowance for Credit Losses:
118%
$45
$40
$36.02
$35.65
$35
-$0.02
-$0.35
$30
$25
119%
$20
$15
$10
$5
2020
Net Recoveries
Portfolio Changes
Q1 2021
Commercial Loans ACL Ratio Q1: 1.37%*
Consumer Loans ACL Ratio Q1: 0.97%
ACL Key Attributes:
34.3%
1.0%
0
64.7%
•
•
•
•
Starting Unemployment Rate: 5.7%
Forecast Period: 2 Quarters
Reversion Period: 2 Quarters
Ending Unemployment Rate: 4.9%
•
•
•
Key Methodology Attributes:
Sophisticated model uses
loan level probability of
default loss given default
discounted cash-flows as
the primary basis for the
quantitative loss estimation.
Unemployment
assumptions used within the
quantitative model reflect
forward-looking estimates
from multiple sources
including the Federal
Reserve, Bloomberg and
Moody's, among others.
The pace of the recovery
and unemployment
forecasts remain
"extraordinarily uncertain"
and we expect to reevaluate
our estimates and period of
forecast/reversion
quarterly.
■ Quantitative Qualitative = PCD
CAMBRIDGE BANCORP
ACL Ratio excludes PPP loans
1
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