Wainwright Bank & Trust Company Reports 1st Quarter 2004 Results

Boston, MA, April 13, 2004 - Wainwright Bank & Trust Company (NASDAQ Symbol "WAIN") reported 2004 first quarter consolidated net income of $1,347,000 and basic earnings per share of $.25 ($.22 on a diluted basis). This compares to consolidated net income of $941,000 and basic earnings per share of $.19 ($.17 on a diluted basis) for the quarter ended March 31, 2003. 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 $5.7 million in the first quarter of 2004 compared to $5.8 million in the first quarter of 2003. During this prolonged period of relatively low interest rates the Bank's net interest yield dropped to 3.87% in the first quarter of 2004 compared to 4.51% in the first quarter of 2003. Jan A. Miller, President and CEO stated, "We are extremely pleased with the balance sheet growth we have achieved over the past several years. Loans outstanding have increased $98 million in the last twelve months and our loan pipeline remains strong. Deposits and borrowed funds have increased $60 million over the same time frame. We believe 2004 will be a year where we continue to grow our balance sheet, continue to grow our strong brand identity in the markets we serve, and continue to grow our earnings."

The provision for credit losses was $150,000 in the first quarter of 2003 compared to zero in the first quarter of 2004. The reserve for credit losses was $4,889,000 and $4,206,000 representing 1.05% and 1.15% of total loans at March 31, 2004 and 2003, respectively. Net recoveries amounted to $14,000 in the three months ended March 31, 2004 compared to $9,000 in the three months ended March 31, 2003. The Bank had nonaccrual loans of $82,000 at March 31, 2004 compared to no nonaccrual loans at March 31, 2003.

Total non-interest revenue was relatively unchanged at $1.3 million in both the first quarter of 2004 and 2003. The Bank continues to successfully grow its core deposit products such as checking, NOW, money market, and savings accounts. Average outstanding balances in these deposit types were up $17 million from $318 million in the first quarter of 2003 to $335 million in the first quarter of 2004. There was a $74,000 increase in deposit service charges. Asset management fees increased $26,000. Offsetting the above increases was a decrease of $140,000 in net security gains from $258,000 in the first quarter of 2003 to $118,000 in the first quarter of 2004.

Legislation enacted in March, 2003 retroactively changed the state tax law and disallowed the deduction for dividends received from a real estate investment trust subsidiary for tax years 1999 through 2002. The resulting tax dispute between Massachusetts' banks and the Massachusetts Department of Revenue was settled in the second quarter of 2003. The Bank had established a tax reserve in the first quarter of 2003 and when the actual amount of the settlement proved to be less than the reserve, recorded the positive impact of the settlement in the second quarter. The additional tax provision recorded in the first quarter of 2003 amounted to $470,000.

Operating expenses increased $68,000 to $5,115,000 in the first quarter of 2004. Salary and fringe benefit costs were up $133,000, or 5%, primarily due to annual merit increases. The Bank recorded non-cash charges of $220,000 in the first quarter of 2004 compared to $93,000 in the first quarter of 2003 related to equity investments in affordable housing projects. These pretax charges will be more than offset by tax credits available to the Bank and tax deductions from operations. 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". Operating expenses in the 2003 period included $158,000 in interest charges related to the REIT dispute discussed above.

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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