Share Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

10. share based compensation

Time Vested Restricted Stock Awards (“RSAs”) and Time Vested Restricted Stock Units (“RSUs”)

During the three and nine months ended September 30, 2023, the Company issued the following RSAs and RSUs pursuant to the Cambridge Bancorp 2017 Equity and Cash Incentive Plan (the “2017 Plan”). RSAs vest either over a three-year or five-year period. RSUs vest over a three-year period. The fair value of RSAs and RSUs are based upon the closing price of the Company’s common stock on the date of the applicable grant. The holders of RSAs participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of RSUs do not participate in the rewards of stock ownership of the Company until they are vested.


	Three Months Ended September 30, 2023				Nine Months Ended September 30, 2023
Type of Award	Shares Granted		Weighted Average Fair Value Per Share at Grant Date		Shares Granted		Weighted Average Fair Value Per Share at Grant Date
RSAs		882	$	56.75		16,348	$	81.47
RSUs		9,693	$	56.75		28,946	$	53.94

Performance-Based Restricted Stock Units (“PRSUs”)

During the three and nine months ended September 30, 2023, the Company granted PRSUs from the 2017 Plan, as shown in the table below. PRSUs are subject to a three-year performance period and are earned based on performance factors, as determined, at the time of grant.


	Three Months Ended September 30, 2023				Nine Months Ended September 30, 2023
Type of Award	Shares Granted		Weighted Average Fair Value Per Share at Grant Date		Shares Granted		Weighted Average Fair Value Per Share at Grant Date
PRSUs		—	$	—		31,744	$	59.19

The following table presents the pre-tax expense associated with all outstanding non-vested RSAs, RSUs, and PRSUs, and the related tax benefits recognized:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(dollars in thousands)
Share based compensation expense	$	589	$	697	$	1,759	$	2,288
Related tax benefits	$	164	$	195	$	491	$	639

Share-based activity in the statement of changes in shareholders’ equity includes RSA, RSU, and PRSU expense, as well as expense related to the Company’s share-based compensation for directors and shares repurchased by the Company for shares tendered by employees to cover income tax liability as grants vest.

The 2017 Plan allows Directors of the Company to receive their annual retainer fee in the form of stock in the Company. There were no shares issued under the 2017 Plan for the three months ended September 30, 2023. Total shares issued under the 2017 Plan for the nine months ended September 30, 2023 were 12,195. There were no shares issued under the 2017 Plan for the three months ended September 30, 2022. The total shares issued under the 2017 Plan for the nine months ended September 30, 2022 was 6,776.