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 SECOND QUARTER RESULTS
(NASDAQ SYMBOL "WAIN")

Boston, MA, July 20, 2001 - Wainwright Bank & Trust Company reported 2001 second quarter consolidated net income of $665,000 and basic earnings per share of $.17 ($.16 on a diluted basis) compared with net income of $1,018,000 and basic earnings per share of $.26 ($.24 on a diluted basis) for the quarter ended June 30, 2000. Consolidated net income for the six months ended June 30, 2001 is $1,577,000 with basic earnings per share of $.41 ($.38 on a diluted basis) compared to $1,971,000 or basic earnings per share of $.51 ($.47 on a diluted basis) for the same prior year period.

Jan A. Miller, President and CEO stated, "The strong balance sheet growth we experienced in 2000 continued through the first two quarters of 2001. Deposits are up $66 million and loans outstanding are up $26 million from one year ago. The majority of the increase in deposits was in core deposit types of accounts. 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 our Central Square, Cambridge Branch opened in May, 2001. We look forward to our entrance into Somerville with the opening of our newest branch in Davis Square, scheduled for September 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. On an overall basis net income in 2001 is expected to approximate total year 2000 results."

Net interest income was $4,428,000 in the quarter ended June 30, 2001, an increase of $302,000, or 7% from the second 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 by 65 basis points while the cost of funds decreased just 18 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 first six months of 2001 was $700,000 compared to $150,000 in the first six months of 2000. Total nonaccrual loans were $4,196,000 or 1.27% of total loans at June 30, 2001, compared to $1,455,000 or 0.48% of total loans at June 30, 2000. The reserve for credit losses was $6,697,000 and $5,364,000 representing 2.02% and 1.76% of total loans at June 30, 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. The asset quality of our commercial banking portfolio continues to be strong."

Total noninterest revenue increased from $1,649,000 in the first two quarters of 2000 to $1,937,000 in the first two quarters of 2001. The Bank settled an insurance claim and received $400,000 in the first quarter of 2001. Deposit service charges doubled from $236,000 in the six months ended June 30, 2000, to $469,000 in the six months ended June 30, 2001. This additional revenue is attributable to the increased core deposit volume. Net security gains were $205,000 in the 2001 period compared to $622,000 in the 2000 period.

Operating expenses were up $1,251,000 from $6,438,000 in the first two quarters of 2000 to $7,689,000 in the first two quarters of 2001. Increases in salaries and employee benefits, occupancy and equipment, and transaction processing costs are all associated with the Bank's growth. Full time equivalent headcount amounted to 128 at June 30, 2001 compared to 111 at June 30, 2000.

With Boston branches in the Financial District, Back Bay/South End, Jamaica Plain, Cambridge branches within Harvard Square, Kendall Square, Central Square and the Fresh Pond Mall, and its Watertown branch, and with a new branch opening 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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