Wainwright Bank & Trust Company Reports 2nd Quarter 2004 Results

Boston, MA, July 19, 2004 - Wainwright Bank & Trust Company ("WAIN") reported 2004 second quarter consolidated net income of $1,682,000 and basic earnings per share of $.25 ($.23 on a diluted basis). This compares to consolidated net income of $1,631,000 and basic earnings per share of $.30 ($.26 on a diluted basis) for the quarter ended June 30, 2003. Pre-tax income was $2,439,000 in the second quarter of 2004 compared to $1,683,000 in the second quarter of 2003. In June 2003, the Bank settled a state tax dispute with the Massachusetts Department of Revenue ("DOR"), relating to the denied claim of a dividends received deduction from a real estate investment trust, a subsidiary of the Bank, covering the tax years 1999 through 2002. The Bank had previously reserved for the entire disputed amount in the first quarter of 2003 upon enactment of retroactive legislation by the Massachusetts legislature. As a result of the settlement, the Bank recognized a credit of $427,000, net of federal taxes, or $.07 per diluted share in the second quarter of 2003. During the second quarter of 2004, the Bank completed a public offering of its common stock with the sale of 1,070,000 shares at a price per share of $13.25. After offering expenses, the Bank raised approximately $13 million in additional capital.

Consolidated net income for the six months ended June 30, 2004 is $3,029,000 with basic earnings per share of $.47 ($.43 on a diluted basis) compared to $2,572,000 or basic earnings per share of $.47 ($.41 on a diluted basis) for the same prior year period. All prior period earnings per share amounts have been adjusted to reflect a 10% common stock dividend declared and paid during the second quarter of 2004.

Jan A. Miller, President and CEO stated, "Our loan growth has been exceptionally strong over the last twelve months with a net increase of $90 million, or 22%, to $497 million as of June 30, 2004. The additional capital raised from the common stock offering positions us to continue growing the balance sheet while remaining "well capitalized" under regulatory definitions. During 2004, we have placed a special emphasis on cost containment and are pleased to report that operating expenses are nearly $100,000 lower in the first six months of this year compared to the first six months of 2003."

Net interest income was $6,050,000 in the second quarter of 2004, an increase of $356,000 from the second quarter of 2003. Through the first six months of 2004 net interest income was $11,723,000, compared to $11,494,000 for the first six months of 2003. Loan growth has been the primary driver of the increase in net interest income.

The provision for credit losses was $250,000 in the first six months of 2004 compared to $450,000 in the first six months of 2003. The reserve for credit losses was $5,149,000 and $4,515,000 representing 1.04% and 1.11% of total loans at June 30, 2004 and 2003, respectively. Net recoveries amounted to $24,000 in the first six months of 2004 compared to $18,000 of recoveries in the first six months of 2003. The Bank had loans totaling $82,000 in nonaccrual status at June 30, 2004 compared to zero at June 30, 2003.

Total noninterest revenue increased $148,000 to $2,827,000 in the first six months of 2004. Deposit service charges were $1,391,000 in the first six months of 2004 compared to $1,319,000 in the first six months of 2003, a $72,000 increase. Asset management fees were up $45,000. Net securities gains amounted to $400,000 in the first two quarters of 2004 compared to $484,000 in the first two quarters of 2003.

Operating expenses decreased $99,000 to $10,034,000 in the first six months of 2004. Occupancy and equipment costs were down $168,000 to $1,585,000 in the first two quarters of 2004 due to lower depreciation charges, net rental costs, and real estate taxes. Operating expenses for the 2003 period included $132,000 for dividends on preferred stock issued by the Bank's REIT subsidiary. This preferred stock has since been exchanged for Bank common stock. Salary and fringe benefit costs were up $115,000 or 2%. The Bank recorded non-cash charges of $342,000 in the first two quarters of 2004 compared to $259,000 in the first two quarters 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". Marketing costs were up $74,000 to $344,000 in the six months ended June 30, 2004.

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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