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 FIRST QUARTER 2003 RESULTS
(NASDAQ SYMBOL "WAIN")

Boston, MA, April 29, 2003 - Wainwright Bank & Trust Company reported 2003 first quarter consolidated net income of $941,000 and basic earnings per share of $.20 ($.19 on a diluted basis). This compares to consolidated net income of $1,078,000 and basic earnings per share of $.24 ($.22 on a diluted basis) for the quarter ended March 31, 2002. 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.

On March 10, 2003, the Bank announced it had recorded a charge of approximately $1.3 million for Massachusetts taxes and interest relating to legislation enacted on March 5, 2003 that retroactively disallows the deduction for dividends received from a real estate investment trust subsidiary (a "REIT") for tax years 1999 through 2002. Any additional state tax or interest paid would be deductible for federal income tax purposes, reducing the net potential effect to approximately $860,000. Although the total financial impact was recognized in the first quarter, this legislation may be successfully challenged through litigation, or the matter may otherwise be settled with the Massachusetts Department of Revenue. The new tax law will increase the Bank's effective tax rate for 2003 by approximately 2% for the full year. The increase in tax costs for the first quarter of 2003 was $33,000 (net of federal tax benefit) or $0.01 per diluted share.

Net interest income increased $562,000 to $5,800,000 in the first quarter of 2003, an 11% increase. The improved performance is due to an increase in total earning assets as well as a continuance of the Bank's efforts to increase its core deposit base while reducing its reliance on higher cost sources of funds. Core deposit products, such as business and personal checking, NOW's, savings, and money market accounts increased $58 million, or 22%, compared to the first quarter of 2002. Certificates of deposit and borrowed funds decreased $8 million. The additional deposits were used to fund the increase in earning assets, which were up $59 million compared to the first quarter of 2002. Average loan volume increased $35 million, or 11%, $32 million of which was in commercial loan products. The average investment portfolio increased $17 million.

Jan A. Miller, President and CEO stated, "Notwithstanding the nonrecurring tax charge, we are pleased with the strong balance sheet growth that has continued through the first quarter of this year. The continued low rate environment presents a challenge for all banks to maintain their net interest rate spread and through the first three months of this year Wainwright has accomplished this objective through careful balance sheet management."

The provision for credit losses was $150,000 in the first quarter of 2003. There was no provision recorded in the first quarter of 2002. Net recoveries amounted to $9,000 and $79,000 in the three months ended March 31, 2003 and 2002, respectively. The Bank had no loans on non-accrual status as of March 31, 2003 compared to $415,000 as of March 31, 2002. The reserve for credit losses was $4,206,000 and $3,814,000 representing 1.15% and 1.16% of total loans at March 31, 2003 and 2002, respectively.

Total non-interest revenue increased $528,000 from $776,000 in the first quarter of 2002 to $1,304,000 in the first quarter of 2003. Deposit account service charges increased $274,000. The Bank recorded net securities gains of $258,000 in the first three months of 2003 compared to $27,000 in the first three months of 2002.

Operating expenses increased $463,000 to $5,047,000 in the first quarter of 2003. Salaries and employee benefits account for $310,000 of the increase.

The FDIC leverage capital ratio and total risk-based capital ratio at March 31, 2003 were 7.6% and 11.0%, 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 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 Legislation 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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