WAINWRIGHT BANK & TRUST COMPANY REPORTS 2004 RESULTS

Boston, MA, February 3, 2005 - - Wainwright Bank & Trust Company ("WAIN") reported record consolidated net income of $6.4 million for 2004 and basic earnings per share of $.94 ($.86 on a diluted basis). This compares to consolidated net income of $4.7 million and basic earnings per share of $.84 ($.74 on a diluted basis) for 2003. This represents a 36% increase in net income and a 14% increase in earnings per share. Net income for the fourth quarter of 2004 was $1.5 million with basic earnings per share of $.21 and diluted earnings per share of $.20. This compares to net income of $1.1 million and basic earnings per share of $.19 ($.17 on a diluted basis) for the fourth quarter of 2003. The growth in earnings per share 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 2004.

Net interest income was $24.3 million in 2004 compared to $22.0 million in 2003. Average outstanding loan balances grew $89 million in 2004, a 22% increase over 2003. Jan A. Miller, President and CEO stated, "We are pleased with the record results for 2004 and our ability to grow the balance sheet. The prolonged margin compression experienced by the banking industry in 2004 has partially offset the full benefit of our loan growth. We look forward to continued growth opportunities in 2005 which should be facilitated by our entrance into the Brookline and Newton markets with new branch locations scheduled to open by mid-year."

The provision for credit losses was $350,000 in 2004 compared to $800,000 in 2003. The reserve for credit losses was $5,479,000 and $4,875,000 representing 1.02% and 1.06% of total loans at December 31, 2004 and 2003, respectively. Net recoveries amounted to $254,000 in 2004 compared to $28,000 of recoveries in 2003. The Bank had loans totaling $30,000 in nonaccrual status at December 31, 2004 compared to $51,000 at December 31, 2003.

Total noninterest revenue improved slightly in 2004 compared to 2003. Increases in letter of credit fee income, asset management fees, and deposit service charges were offset by a decrease in net security gains.

Total operating expenses were $20.6 million in 2004 compared to $20.5 million in 2003. Advertising and promotional costs increased $168,000 to $576,000 in 2004. Compensation costs were up $113,000, a 1% increase. Occupancy and equipment costs were down $277,000 due to lower depreciation charges, net rental costs, and real estate taxes.

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.

^ back to top ^