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 2001 Results (NASDAQ Symbol "WAIN")

Boston, MA, February 26, 2002 - Wainwright Bank & Trust Company reported 2001 net income of $2,805,000 and basic earnings per share of $.65 ($.62 on a diluted basis). This compares to consolidated net income of $2,849,000 and basic earnings per share of $.65 ($.62 on a diluted basis) for 2000. Net income for the fourth quarter of 2001 was $1,025,000 with basic earnings per share of $.25 and diluted earnings per share of $.23. This compares to a net loss of $56,000 for the fourth quarter of 2000, which is a three-cent loss on both a basic and diluted basis. 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, "The strong balance sheet growth we experienced in 2000 continued through 2001. Average deposit volumes increased by $58 million, or 18%, year over year. However, what is most impressive about the Bank's deposit growth is the fact it has been driven by lower cost core deposit products such as checking, savings, and money market accounts. We continued to see loan growth, particularly in our residential loan portfolio with an increase in total average loans outstanding of $24 million, or 8%.

Mr. Miller added, "The Bank continues to expand its footprint in the Greater Boston area. The deposit growth in our new Central Square, Cambridge office was five times the national average for branch startups and the reception to our new cyber-café concept branch in Davis Square, Somerville, which opened in February, 2002, has been phenomenal. In addition, we are in the process of refurbishing our expanded headquarters on Franklin Street in Boston. 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."

As anticipated, earnings in 2001 were impacted by a $188,000 loss (net of tax) recognized primarily due to the start-up costs of an equity investment in an assisted living facility for the elder homeless in Boston. The Bank believes once the facility reaches 100% occupancy (which is expected by the end of the first quarter of 2002), any operating losses which may occur, net of tax, will be more than offset by tax credits that will be available to the Bank. The non-cash charge served to reduce earnings per share by $.04 in 2001. This community development investment is part of the Bank's nationally recognized initiative to address issues of social justice. Within the last ten years over $190 million has been committed to community development lending activities with a less than 1% default rate for this particular segment of portfolio. The Bank's current CRA rating is "Outstanding".

The Bank increased its level of net interest income 11% from $16.6 million in 2000 to $18.4 million in 2001. The increase in net interest income 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 benefit of having a higher level of earning assets was partially offset by net interest margin compression resulting from the yield on earnings assets decreasing by 68 basis points while the cost of interest bearing liabilities decreased 62 basis points from year 2000.

The provision for credit losses in 2001 was $1,800,000 compared to $700,000 in 2000. Credit losses were impacted by one large commercial loan, which was fully resolved in 2001. The asset quality of the rest of the portfolio remains strong as evidenced by the low level of past due and non-accrual loans. Total nonaccrual loans were $595,000 or 0.19% of total loans at December 31, 2001, compared to $3,906,000 or 1.25% of total loans at December 31, 2000. The reserve for credit losses was $3,893,000 and $5,937,000 representing 1.21% and 1.90% of total loans at December 31, 2001 and 2000, respectively.

Total noninterest revenue increased from $2,054,000 in 2000 to $3,453,000 in 2001. Net security gains were $295,000 in 2001 compared to net security losses of $443,000 in 2000. Deposit service charges increased from $618,000 in 2000 to $1,056,000 in 2001. This additional revenue is attributable to increased core deposit volume.

Operating expenses were up $2.1 million from $14.0 million in 2000 to $16.1 million in 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 135 at December 31, 2001 compared to 124 at December 31, 2000.

The FDIC leverage capital ratio and total risk-based capital ratio at December 31, 2001 were 7.6% and 11.2%, 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 Somerville branch, 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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