Wainwright Bank & Trust Company Reports 2002 Results
(NASDAQ Symbol "WAIN")

Boston, MA, March 17, 2003 - Wainwright Bank & Trust Company reported 2002 consolidated net income of $4,247,000 and basic earnings per share of $.93 ($.85 on a diluted basis). This compares to consolidated net income of $2,805,000 and basic earnings per share of $.59 ($.56 on a diluted basis) for 2001. Net income for the fourth quarter of 2002 was $915,000 with basic earnings per share of $.20 and diluted earnings per share of $.18. This compares to net income of $1,025,000 and basic earnings per share of $.22 ($.21 on a diluted basis) for the fourth quarter of 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, "The strong balance sheet growth we experienced in 2000 and 2001 continued in 2002. Core deposit products, such as business and personal checking, NOW's, savings, and money market accounts increased by $44 million in 2002, or almost 20%. While operating in a declining economy, and in a market where competition for quality loans is intense, the Bank was able to increase its loans outstanding by $38 million over year-end 2001. The improvement in the mix of earning assets, the substantial increase in our core deposit base, and the corresponding widening of the Bank's net interest rate spread has resulted in an 18% increase in our net interest income. Operating results also reflect a decrease in the provision for credit losses due to the improved quality of the loan portfolio."

The provision for credit losses was $100,000 for 2002 compared to $1,800,000 for 2001. Net charge-offs of $3.8 million in 2001 were due to the deterioration of one large commercial loan. The Bank recorded net recoveries of $54,000 in 2002. The Bank had no loans on non-accrual status as of December 31, 2002 compared to $595,000 as of December 31, 2001. The reserve for credit losses was $4,047,000 and $3,893,000 representing 1.12% and 1.21% of total loans at December 31, 2002 and 2001, respectively.

Total non-interest revenue increased $137,000 to $3,590,000 in 2002. Deposit account service charges increased $864,000. The Bank recorded net securities losses of $82,000 in 2002 compared to net securities gains of $295,000 in 2001. The markets have also impacted the level of asset management fees, which were down $118,000 from 2001. The Bank settled an insurance claim and received a one-time payment of $400,000 in the first quarter of 2001.

Operating expenses increased $3.1 million from $16.1 million in 2001 to $19.2 million in 2002. Increases in compensation costs of $1,665,000 and occupancy and equipment costs of $570,000 are associated with the Bank's growth. In addition, the Bank recorded pre-tax, non-cash charges of $617,000 and $339,000 in 2002 and 2001, respectively, related to investments in affordable housing projects. These operating losses, net of tax, will be more than offset by tax credits that will be available to the Bank. These community development investments are part of the Bank's nationally recognized commitment to community development activities. The Bank's current CRA rating is "Outstanding".

On March 5, 2003, the state of Massachusetts enacted legislation amending the corporate income tax law affecting the treatment of dividends received from Real Estate Investment Trusts (REITs). Dividends received from the Bank's REIT subsidiary are no longer eligible for a dividends-received deduction.

In addition to the effect on 2003, the legislation includes a retroactive effective date that reaches back to the 1999 through 2002 tax years. Wainwright's potential additional liability for taxes and interest for the 1999-2002 tax years from loss of the deduction is approximately $1.3 million. Any state tax or interest paid relative to this new legislation would be deductible for federal income tax purposes, reducing the net potential effect to approximately $850,000.

Unless this legislation is successfully challenged through litigation, or the matter is otherwise settled with the Massachusetts Department of Revenue ("DOR"), the entire amount claimed by the DOR may be payable. The Bank anticipates recording the charge in the first quarter of 2003.

The FDIC leverage capital ratio and total risk-based capital ratio at December 31, 2002 were 8.0% and 10.7%, 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 $561 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 through print, radio and television coverage.

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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