Wainwright Bank & Trust Company Reports 2003 Results (NASDAQ Symbol "WAIN")

Boston, MA, February 4, 2004 - Wainwright Bank & Trust Company reported record consolidated net income of $4,707,000 for 2003 and basic earnings per share of $.93 ($.82 on a diluted basis). This compares to consolidated net income of $4,247,000 and basic earnings per share of $.85 ($.77 on a diluted basis) for 2002. Net income for the fourth quarter of 2003 was $1,118,000 with basic earnings per share of $.21 and diluted earnings per share of $.19. This compares to net income of $915,000 and basic earnings per share of $.18 ($.17 on a diluted basis) for the fourth quarter of 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 2003.

Net interest income was $22.0 million in 2003 compared to $21.6 million in 2002. Outstanding loans increased $100 million from year-end 2002 to $460 million at year-end 2003. Jan A. Miller, President and CEO stated, "We are pleased with the record results for 2003 and our ability to grow the balance sheet. The prolonged margin compression that the banking industry has experienced in 2003 has partially offset the full benefit of our loan growth. We believe our continuing focus on strong balance sheet growth will result in higher returns for our shareholders." The Bank's net interest margin was 3.99% in 2003 compared to 4.60% in 2002.

The provision for credit losses was $800,000 for 2003 compared to $100,000 in 2002. The increase in the provision is the result of the strong growth in loans. The reserve for credit losses was $4,875,000 and $4,047,000 representing 1.06% and 1.12% of total loans at December 31, 2003 and 2002, respectively. Net recoveries amounted to $28,000 in 2003 compared to net recoveries of $54,000 in 2002. The Bank had nonaccrual loans of $51,000 at December 31, 2003 compared to no nonaccrual loans at December 31, 2002.

Total non-interest revenue increased $1.9 million to $5.5 million in 2003. The Bank recorded $875,000 in net securities gains in 2003 compared to $82,000 in net securities losses in 2002. Deposit account service charges increased $807,000.

Operating expenses increased $1.3 million from $19.2 million in 2002 to $20.5 million in 2003. Increases in compensation costs of $1.2 million and occupancy and equipment costs of $168,000 are associated with the Bank's growth. In addition, the Bank recorded pretax, non-cash charges of $570,000 and $617,000 in 2003 and 2002, 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".

With Boston branches in the Financial District, Back Bay/South End, and Jamaica Plain, Cambridge branches in Harvard Square, Kendall Square, Central Square and the Fresh Pond Mall, its Watertown branch, and its 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.2,031

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