WAIN Wainwright Bank & Trust Company (MM)

Wainwright Bank & Trust Company Reports First Quarter Results BOSTON, April 20 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported 2005 first quarter consolidated net income of $1,524,000 and basic earnings per share of $.21 ($.20 on a diluted basis.) This compares to consolidated net income of $1,347,000 and basic earnings per share of $.22 ($.20 on a diluted basis) for the quarter ended March 31, 2004. 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 2004. Net interest income was $6.7 million in the first quarter of 2005 compared to $5.7 million in the first quarter of 2004. The Bank's average interest earning assets increased $130 million, or 22%, from $589 million in the first quarter of 2004 to $719 million in the first quarter of 2005. The Bank has experienced strong loan growth in both commercial loans and residential mortgages over the past twelve months. Deposit growth has kept pace with a comparable 24% increase from $451 million in average balances in the first quarter of 2004 to $558 million in average balances in the first quarter of 2005. During the second quarter of 2004, the Bank sold 1,177,000 shares of common stock in a secondary offering. This sale of stock resulted in $12.9 million in net proceeds, which is being used to help fund the Bank's growth. Jan A. Miller, President and CEO stated, "We are very pleased with the first quarter performance. The loan portfolio has continued its solid growth in a highly competitive market. Deposit growth, coupled with the prudent use of borrowed funds, has helped to maintain our margins in a rate environment that is steadily moving higher. We are excited about new growth opportunities, 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 $150,000 in the first quarter of 2005 compared to zero in the first quarter of 2004. The reserve for credit losses was $5,623,000, $5,479,000, and $4,889,000 representing 1.03%, 1.02%, and 1.05% of total loans at March 31, 2005, December 31, 2004, and March 31, 2004 respectively. Net charge offs were $6,000 in the first quarter of 2005 compared to net recoveries of $14,000 in the first quarter of 2004. The Bank had nonaccrual loans of $95,000, $30,000, and $82,000 at March 31, 2005, December 31, 2004, and March 31, 2004, respectively. Noninterest revenue was $1,179,000 in the first quarter of 2005 compared to $1,269,000 in the first quarter of 2004. The Bank recorded a net securities loss of $18,000 in the 2005 period compared to a net securities gain of $118,000 in the 2004 period. Total operating expenses were $5.5 million in the three months ended March 31, 2005 compared to $5.1 million in the three months ended March 31, 2004. Compensation costs were up $160,000, 5.6%, due to annual performance increases and a small increase in the Bank's full time equivalent headcount to service the increase in loans and deposits. Professional fees including legal, audit, and loan review costs increased $84,000. The Bank recorded non-cash charges of $370,000 in the first quarter of 2005 compared to $220,000 in the first quarter of 2004 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". 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. James J. Barrett Senior VP and Chief Financial Officer Tel: (617) 478-4000 Fax: (617) 439-4854 Website: http://www.wainwrightbank.com/ FINANCIAL HIGHLIGHTS: (dollars in thousands) Three months ended March 31, 2005 and 2004 2005 2004 Net interest income $6,651 $5,673 Provision for credit losses 150 - Noninterest income 1,179 1,269 Noninterest expense 5,549 5,115 Income before taxes 2,131 1,827 Income tax provision 607 480 Net income 1,524 1,347 Net income available to common shareholders 1,449 1,272 Earnings per share: Basic $0.21 $0.22 Diluted $0.20 $0.20 Return on shareholders' equity (annualized) 9.52% 11.36% Return on assets (annualized) 0.83% 0.88% Weighted average common shares outstanding: Basic 6,883,436 5,665,085 Diluted 7,809,853 6,630,667 at March 31, 2005 and 2004 Total assets $759,554 $642,584 Total loans 547,957 463,640 Total investments 173,073 150,036 Total deposits 478,099 421,243 Borrowed funds 213,317 169,691 Shareholders' equity 64,534 48,412 Book value per common share $8.40 $7.48 DATASOURCE: Wainwright Bank & Trust Company CONTACT: James J. Barrett, Senior VP and Chief Financial Officer of Wainwright Bank & Trust Company, +1-617-478-4000 Web site: http://www.wainwrightbank.com/

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