Earnings of Cambridge Bancorp (CATC) are expected to rise in 2020 due to the jump in its earning assets following its merger with Optima Bank earlier this year. Further, CATC's net interest margin is expected to increase following the Fed's interest rate cut, which will further support earnings. However, all of these factors appear to have been already priced in, as the stock is currently trading very close to its year-ahead target price.
High Earning Assets to Boost Earnings
CATC's earning assets received a boost in the second quarter upon completion of the