James J. Barrett
Senior Vice President and Chief Financial Officer

Wainwright Bank & Trust Company
(NASDAQ: WAIN)
telephone:(617) 478-4000
fax: (617) 478-4020
e-mail: jbarrett@wainwrightbank.com
website: www.wainwrightbank.com

FOR IMMEDIATE RELEASE

WAINWRIGHT BANK & TRUST COMPANY
REPORTS 2000 RESULTS
(NASDAQ SYMBOL "WAIN")

Boston, MA, March 2, 2001 - Wainwright Bank & Trust Company reported 2000 net income of $2,849,000 and basic earnings per share of $.72 ($.68 on a diluted basis) compared to net income of $3,716,000 and basic earnings per share of $.90 ($.84 on a diluted basis) for 1999. The Bank incurred a net loss of $56,000 for the fourth quarter of 2000 which is a four cent loss on both a basic and diluted basis. This compares to net income for the fourth quarter of 1999 of $699,000 and basic earnings per share of $.17 ($.16 on a diluted basis). The Bank's return on assets and return on equity were .69% and 9.07%, respectively, for 2000. This compares to a return on assets of 1.07% and a return on equity of 11.76% for 1999.

While one-time charges for a bond position and a single problem loan reduced earnings for the year, Jan A. Miller, President and CEO stated, "The Year 2000 has been one of unprecedented growth for Wainwright Bank. Deposit and loan balances increased $74 million and $37 million, respectively, from year end 1999. The recent bank merger activity in the communities we serve presents ongoing growth opportunities for us. Customers, both corporate and consumer, seeking more personalized banking services are finding Wainwright Bank to be an attractive alternative for their banking needs. Branch divestitures and closings resulting from mergers provide us with opportunities to expand our current branch network. We are pleased with the early success of our Watertown Branch, opened in September of last year, and look forward to the openings of our newest branches in 2001 in Central Square, Cambridge and in Davis Square, Somerville."

The Bank has increased its level of net interest income from $15,162,000 in 1999 to $16,607,000 in 2000. The improved banking margin in 2000 is primarily attributable to higher loan volume and an increase in yield on earning assets. Interest rate volatility resulted in compression of the Bank's net interest margin as the cost of funds rose faster than the yield on earning assets.

The increase in net interest income was mitigated by an increase in the level of noninterest expenses. Operating expenses were $14.0 million in 2000, compared to $11.6 million in 1999. Compensation costs increased $1.1 million as the Bank added to its staff in order to properly serve the increased customer base. The increase in compensation costs is also reflective of the tight labor market conditions in the Greater Boston area. Occupancy and equipment costs were up $354,000 from $1,975,000 in 1999 to $2,329,000 in 2000. In December, 1999, the Bank acquired the buildings adjacent to its current headquarters on Franklin Street for eventual use by the Bank and for future rental income. The net cost of operating these buildings amounted to $135,000 in 2000. Occupancy and equipment for the Jamaica Plain branch, opened in June, 1999, and the new Watertown branch, opened in September, 2000, amounted to $280,000 in 2000 compared to $127,000 in 1999.

Total nonaccrual loans were $3,906,000 or 1.25% of total loans at December 31, 2000, compared to $97,000 or .03% at December 31, 1999. The reserve for credit losses was $5,937,000 and $5,016,000 representing 1.90% and 1.82% of total loans at December 31, 2000 and 1999, respectively. The increase in nonaccrual loans is reflected in the increase in the loan loss provision, which was $700,000 in 2000 compared to $100,000 in 1999.

Total noninterest revenue increased $107,000 to $2,054,000 in 2000. Deposit service charge income increase $246,000 to $618,000 in 2000 which is reflective of the expanded customer base. The Bank incurred net losses on investments of $443,000 in 2000 compared to $136,000 in 1999. The Bank, in its available for sale investment portfolio, holds $1 million of Owens Corning 7.50% senior notes due May 1, 2005. On October 5, 2000, Owens Corning filed a voluntary Chapter 11 bankruptcy petition. The Bank has determined that the price decline in the market value of this bond is other than temporary and, therefore, recorded a charge of $800,000 against income in the fourth quarter.

With Boston branches in the Financial District, Back Bay/South End, Jamaica Plain, Cambridge branches within Harvard Square, Kendall Square and Fresh Pond Mall, its new Watertown branch, and with new branches opening in Central Square, Cambridge and in Davis Square, Somerville, Wainwright is strategically positioned to provide consumer and commercial mortgages, loans, and deposit services to individuals, families, businesses, and non-profit organizations.

This Press Release contains statements relating to future results of the Bank (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in political and economic conditions, interest rate fluctuations, competitive product and pricing pressures within the Bank's market, bond market fluctuations, personal and corporate customers' bankruptcies, and inflation, as well as other risks and uncertainties.

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