Wainwright Bank & Trust Company Reports 3rd Quarter 2004 Results

Boston, MA, October 19, 2004 - Wainwright Bank & Trust Company ("WAIN") reported 2004 third quarter consolidated net income of $1.8 million and basic earnings per share of $.25 ($.23 on a diluted basis). This compares to consolidated net income of $1.0 million and basic earnings per share of $.18 ($.16 on a diluted basis) for the third quarter ended September 30, 2003. Consolidated net income for the nine months ended September 30, 2004 is $4.8 million with basic earnings per share of $.73 ($.66 on a diluted basis) compared to $3.6 million or basic earnings per share of $.65 ($.57 on a diluted basis) for the same prior year period. The growth in earnings per share amounts to 44% and 16% for the three month and nine month comparisons, respectively, and is inclusive of the 1,070,000 share common stock offering completed in the second quarter of 2004. All prior year 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, "The exceptional loan growth the Bank achieved in the first half of 2004 continued through the third quarter. Total loans outstanding have grown $69 million in the last twelve months, a 16% increase. The flattening of the yield curve in 2004 has created challenges for the entire banking industry and we are pleased with the improvement in net interest income during this period. The special emphasis we have placed on cost containment has resulted in a $200,000 decrease in total operating expenses through the first nine months of 2004 compared to 2003."

Net interest income was $6,266,000 in the third quarter of 2004, an increase of $1,084,000 from the third quarter of 2003. Through the first nine months of 2004 net interest income was $17,989,000, compared to $16,676,000 for the first nine 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 nine months of 2004 compared to $550,000 in the first nine months of 2003. The reserve for credit losses was $5,383,000 and $4,625,000 representing 1.06% and 1.05% of total loans at September 30, 2004 and 2003, respectively. Net recoveries amounted to $258,000 in the first nine months of 2004 compared to $28,000 of recoveries in the first nine months of 2003. The Bank had loans totaling $69,000 in nonaccrual status at September 30, 2004 compared to zero at September 30, 2003.

Total noninterest revenue increased $57,000 in the third quarter of 2004 compared to the third quarter of 2003 due to asset management and other fees. For the nine months ended September 30, 2004, total noninterest revenue increased $205,000 compared to the nine months ended September 30, 2003. Additional income was generated from asset management and other fees, and deposit service charges.

Total operating expenses for the third quarter of 2004 were $4.9 million, $103,000 below the total for the third quarter of 2003. Occupancy and equipment costs were down $115,000 due to lower depreciation charges. Total operating expenses for the nine months ended September 30, 2004 were $15.0 million, $202,000 below the total for the nine months ended September 30, 2003. Occupancy and equipment costs were down $283,000 due to lower depreciation charges, net rental costs, and real estate taxes. Operating expenses for the 2003 period included $198,000 for dividends issued by the Bank's REIT subsidiary. This preferred stock has since been exchanged for Bank common stock. Marketing costs were up $175,000 to $570,000 in the nine months ended September 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 at 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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