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

Boston, MA, October 22, 2002 - Wainwright Bank & Trust Company reported 2002 third quarter consolidated net income of $1,253,000 and basic earnings per share of $.28 ($.25 on a diluted basis) compared with net income of $203,000 and earnings per share of $.03 on both a basic and diluted basis for the third quarter of 2001. Consolidated net income for the nine months ended September 30, 2002 is $3,332,000 with basic earnings per share of $.74 ($.67 on a diluted basis). This compares to net income of $1,780,000 and basic earnings per share of $.37 ($.36 on a diluted basis) for the nine months ended September 30, 2001. All prior period earnings per share amounts have been adjusted to reflect the 10% common stock dividend declared and paid during the second quarter of 2002.

Jan A. Miller, President and CEO stated, "We are pleased to report another record earnings quarter in 2002. Diluted earnings per share for the first three quarters of 2002 increased 86% from the comparable 2001 period. The Bank's net interest income for the nine months ended September 30, 2002 increased almost $3 million over the net interest income for the nine months ended September 30, 2001. This improvement has been driven by a widening of our net interest rate spread, a substantial increase in our core deposit base, and a corresponding increase in the Bank's earning assets. Expenses incurred in recent periods to improve the Bank's technology and to expand the Bank's footprint in Somerville, Cambridge and Watertown are beginning to have a positive effect on the Bank's financial performance."

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 three quarters of 2002 compared to $1,800,000 for the first three quarters of 2001. Net chargeoffs of $3.9 million in the 2001 period were due to the deterioration of one large commercial loan. The Bank has recorded net recoveries of $22,000 in the first three quarters of 2002. The Bank had just one loan on nonaccrual at September 30, 2002, which amounted to $130,000. This compares to $471,000 of nonaccrual loans at September 30, 2001. The reserve for credit losses was $3,965,000 and $4,102,000 representing 1.2% and 1.3% of total loans at September 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 nine months of 2002. Average investments increased $22 million or 21% while average loans outstanding increased $6 million or 2% from the first three quarters of 2001. The strong growth in deposits provided the necessary funding for the increase in earning assets. The sustained lower rate environment has allowed the Bank to reduce its cost of funding by 187 basis points, compared to the decrease in the yield on earning assets of 93 basis points.

Total noninterest revenue was $2,202,000 in the first three quarters of 2002 compared to $2,595,000 in the first three quarters of 2001. The Bank recorded net securities losses of $332,000 in the first nine months of 2002 compared to net securities gains of $170,000 in the first nine months of 2001. The economy has also impacted the level of asset management fees, which were down $72,000 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 $587,000 or 79% from $744,000 in the nine months ended September 30, 2001, to $1,331,000 in the nine months ended September 30, 2002.

Operating expenses were up $2,253,000 from $11,570,000 in the first three quarters of 2001 to $13,823,000 in the first three 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 Bank received a Notice of Intent to Assess (the "Notice") from the Commonwealth of Massachusetts Department of Revenue (the "DOR") indicating that, for the tax period ending December 31, 2000, the Bank owed $364,000 in taxes and $45,000 in accrued interest. The Notice indicates that the taxes relate to the denied claim of a dividends received deduction from a real estate investment trust, which pays an annual dividend to the Bank. The Bank intends to vigorously defend its position in this dispute.

The FDIC leverage capital ratio and total risk-based capital ratio at September 30, 2002 were 7.9% and 10.9%, 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.

Founded in 1987, Wainwright Bank is a socially responsible commercial bank with total assets of $500 million and neighborhood branches in Boston, Cambridge, Watertown, and Somerville. The Bank is dedicated to community development initiatives including affordable housing, homeless shelters, HIV/AIDS services, community health centers, and environmental protection to name a few. Wainwright's commitment to social justice issues has been nationally recognized with awards and through print, radio and television coverage.

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.


FINANCIAL HIGHLIGHTS:(dollars in thousands)
Three months ended September 30, 2002 and 2001

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