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 THIRD QUARTER RESULTS
(NASDAQ SYMBOL "WAIN")

Boston, MA, October 30, 2001 - Wainwright Bank and Trust Company reported 2001 third quarter consolidated net income of $203,000, or $.03 per share on both a basic and diluted basis. This compares to net income of $934,000 and basic earnings per share of $.22 ($.20 on a diluted basis) for the quarter ended September 30, 2000. Consolidated net income for the nine months ended September 30, 2001 is $1,780,000 and basic earnings per share of $.40 ($.39 on a diluted basis) compared to $2,905,000 and basic earnings per share of $.68 ($.63 on a diluted basis) for the same prior year period. All prior period earnings per share amounts have been adjusted to reflect the 10% common stock dividend declared and paid during the third quarter of 2001.

Jan A. Miller, President and CEO stated, "Earnings for the third quarter were adversely impacted by the deterioration in value of one large commercial loan, which was the primary reason for a $1.1 million addition to the loan loss provision. This particular loan has now been charged down to the anticipated recovery amount of $150,000. The Bank's problem loans are concentrated in this one credit and the asset quality of the balance of the portfolio continues to be strong." Mr. Miller added, "The Bank's core deposits continue their strong growth during these difficult times. Demand deposits and savings type deposits were up $42 million, or 22%, from one year ago. 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 early next 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. We continue to expect 2001 full year earnings to approximate year ago levels."

Net interest income was $13,290,000 for the three quarters ended September 30, 2001, an increase of $921,000, or 7% from the first three quarters of 2000. The increase in banking margin is primarily due to the higher volume of loans and investments as well as a change in the mix of funding sources to lower cost liabilities such as demand deposits, NOW's, savings, and money market accounts. The Bank has become less reliant on higher cost sources of funds such as certificates of deposit and borrowed funds. 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 58 basis points while the cost of funds decreased just 24 basis points.

The provision for credit losses in the first nine months of 2001 was $1,800,000 compared to $150,000 in the first nine months of 2000. Total nonaccrual loans were $471,000 or 0.15% of total loans at September 30, 2001, compared to $194,000 or 0.06% of total loans at September 30, 2000. The reserve for credit losses was $4,102,000 and $5,337,000 representing 1.27% and 1.71% of total loans at September 30, 2001 and 2000, respectively.

Total noninterest revenue increased from $2,075,000 for the first three quarters of 2000 to $2,595,000 for the first three quarters of 2001. The Bank settled an insurance claim and received $400,000 in the first quarter of 2001. Deposit service charges increased $329,000 from $415,000 in the nine months ended September 30, 2000 to $744,000 in the nine months ended September 30, 2001. This additional revenue is attributable to the increased core deposit volume. Net security gains were $170,000 in the 2001 period compared to $444,000 in the 2000 period.

Operating expenses were up $1,633,000 from $9,937,000 for the first three quarters of 2000 to $11,570,000 in the first three 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 126 at September 30, 2001 compared to 117 at September 30, 2000.

The FDIC leverage capital ratio and total risk-based capital ratio at September 30, 2001 were 7.5% and 10.6%, respectively. The Bank must maintain a 5% leverage capital ratio and a 10% total risk-based capital ratio to remain "well capitalized" under FDIC regulations.

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, 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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