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 FIRST QUARTER RESULTS
(NASDAQ SYMBOL "WAIN")

Boston, MA, May 2, 2001 - Wainwright Bank & Trust Company reported 2001 first quarter consolidated net income of $912,000 and basic earnings per share of $.24 ($.22 on a diluted basis) compared to $953,000 and basic earnings per share of $.24 ($.23 on a diluted basis) for the quarter ended March 31, 2000.

Jan A. Miller, President and CEO stated, "The strong balance sheet growth we experienced in 2000 continued through the first quarter of 2001. Deposits are up $82 million, a 30% increase from one year ago, and loans outstanding are up $44 million, an increase of 16%. Customers, both corporate and individual, seeking more personalized banking services, continue to find Wainwright Bank an attractive alternative for their banking needs. 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 locations in Central Square, Cambridge, scheduled to open in May, and in Davis Square, Somerville, scheduled to open in the third quarter of this year. In addition, we are in the process of refurbishing our expanded headquarters on Franklin Street. Our management team anticipates that the additional overhead we are absorbing in this period of growth will result in higher returns for our shareholders in future periods."

Net interest income was $4,221,000 in the quarter ended March 31, 2001, an increase of $351,000, or 9% from the first quarter of 2000. The increase in banking margin is primarily due to the higher volume of loans and investments. The benefit of having a higher level of earning assets was partially offset by net interest margin compression resulting from the yield on earning assets decreasing slightly while the cost of funds rose 44 basis points.

Operating results also reflect an increase in the provision for credit losses due to increased levels of nonperforming assets. The provision in the 2001 period was $300,000 compared to $150,000 in the first quarter of 2000. Total nonaccrual loans were $3,950,000 or 1.20% of total loans at March 31, 2001, compared to $838,000 or 0.29% of total loans at March 31, 2000. The reserve for credit losses was $6,260,000 and $5,235,000 representing 1.90% and 1.84% of total loans at March 31, 2001 and 2000, respectively. Mr. Miller added, "The increase in nonaccrual loans is due to a single problem loan and does not reflect the overall performance of the Commercial Banking Division, which had its best year ever in 2000. The asset quality of our commercial banking portfolio continues to be strong."

Total noninterest revenue increased from $791,000 in the first quarter of 2000 to $1,146,000 in the first quarter of 2001. The Bank settled an insurance claim and received $400,000 in the first quarter of 2001. Deposit service charges more than doubled from $101,000 in the three months ended March 31, 2000, to $221,000 in the three months ended March 31, 2001. Net security gains were $89,000 in the 2001 period compared to $301,000 in the 2000 period.

Operating expenses were up $700,000 from $3,076,000 in the first quarter of 2000 to $3,776,000 in the first quarter of 2001. Increases in salaries and employee benefits, occupancy and equipment, transaction processing costs, and marketing are all associated with the Bank's growth. Full time equivalent headcount amounted to 124 at March 31, 2001 compared to 104 at March 31, 2000.

With Boston branches in the Financial District, Back Bay/South End, Jamaica Plain, Cambridge branches within Harvard Square, Kendall Square and the 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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