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

Boston, MA, July 18, 2002 - Wainwright Bank & Trust Company reported 2002 second quarter consolidated net income of $1,001,000 and basic earnings per share of $.22 ($.20 on a diluted basis) compared with net income of $665,000 and basic earnings per share of $.14 ($.13 on a diluted basis) for the quarter ended June 30, 2001. Consolidated net income for the six months ended June 30, 2002 is $2,079,000 with basic earnings per share of $.46 ($.42 on a diluted basis) compared to $1,577,000 or basic earnings per share of $.34 ($.32 on a diluted basis) for the same prior year period. All prior period earnings per share amounts have been adjusted to reflect two separate 10% common stock dividends declared and paid during the third quarter of 2001 and the second quarter of 2002.

Jan A. Miller, President and CEO stated, "We are pleased to report another strong quarterly financial performance in 2002. Diluted earnings per share increased 54% over the second quarter of 2001, driven by the continued widening of our net interest rate spread, which improved 109 basis points to 4.39%. This spread improvement, coupled with a higher level of interest earning assets, resulted in the Bank's net interest income increasing over $1 million, or 24%, to $5.5 million in the second quarter of 2002. The costs incurred in recent periods to improve the Bank's technology and to expand the Bank's footprint with new locations in Somerville, Cambridge, and Watertown are beginning to have a positive effect on the Bank's financial performance. Average core deposits were up $49 million or 23% for the first two quarters of 2002 compared with the year ago period. This has allowed the Bank to reduce its dependence on higher cost time deposits."

Mr. Miller added, "The Bank is also pleased with the results of its equity credit line promotion during the first half of 2002. We feel our product is the best currently being offered in the area." Operating results also reflect a decrease in the provision for credit losses due to the improved quality of the loan portfolio. The provision was $50,000 in the first two quarters of 2002 compared to $700,000 for the first two quarters of 2001. Total nonaccrual loans were $411,000 or 0.1% of total loans at June 30, 2002, compared to $4,196,000 or 1.3% of total loans at June 30, 2001. The reserve for credit losses was $3,910,000 and $6,697,000 representing 1.2% and 2.0% of total loans at June 30, 2002 and 2001, respectively.

The higher level of net interest income and the reduction in the provision for credit losses more than offset the reduction in noninterest revenue and the increased level of noninterest expense in the first half of 2002. The improvement in net interest income was achieved through growth in earning assets, primarily investment securities, and the widening of the Bank's net interest margin. Average investments increased $26 million or 26% while average loans increased $2 million or 1% from the first two quarters of 2001. The strong growth in deposits provided the necessary funding for the increase in earning assets. The benefits of the sustained lower rate environment has allowed the Bank to reduce its cost of funding by 204 basis points, compared to the decrease in the yield on earning assets of 100 basis points.

Total noninterest revenue was $1,284,000 in the first two quarters of 2002 compared to $1,937,000 in the first two quarters of 2001. The Bank recorded net securities losses of $301,000 in the first six months of 2002 compared to net securities gains of $205,000 in the first six months of 2001. The economy has also impacted the level of asset management fees which were down $53,000 from the comparable year ago period. The Bank settled an insurance claim and received a one-time payment of $400,000 in the first quarter of 2001. Deposit service charges increased $307,000 or 65% from $469,000 in the six months ended June 30, 2001, to $776,000 in the six months ended June 30, 2002.

Operating expenses were up $1,470,000 from $7,689,000 in the first two quarters of 2001 to $9,159,000 in the first two quarters of 2002. Increases in salaries and employee benefits, occupancy and equipment costs, and transaction processing costs are all associated with the Bank's growth.

The FDIC leverage capital ratio and total risk-based capital ratio at June 30, 2002 were 7.8% 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 regulation.

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 may contain 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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