WAIN Wainwright Bank & Trust Company (MM)

Wainwright Bank & Trust Company Reports Second Quarter Results BOSTON, July 19 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported 2005 second quarter consolidated net income of $1,847,000 and basic earnings per share of $.24 ($.23 on a diluted basis). This compares to consolidated net income of $1,682,000 and basic earnings per share of $.24 ($.22 on a diluted basis) for the quarter ended June 30, 2004. Consolidated net income for the six months ended June 30, 2005 is a record $3,371,000 compared to $3,029,000 for the same prior year period. Basic and diluted earnings per share are $.45 and $.41, respectively, for both six-month periods as there are more common shares outstanding in 2005. All prior period earnings per share amounts have been adjusted to reflect the 5% common stock dividend declared and paid during the second quarter of 2005. Jan A. Miller, President and CEO stated, "We are very pleased with our performance in the first two quarters of 2005. The $3.4 million in net income represents a record level for Wainwright in the first six months of the year. 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 in July and September, respectively." Net interest income was $6,886,000 in the second quarter of 2005 compared to $6,050,000 in the second quarter of 2004. The Bank's average interest earning assets increased $79 million, or 13%, from $629 million in the second quarter of 2004 to $708 million in the second quarter of 2005. The Bank has experienced strong loan growth in both commercial loans and residential mortgages over the past twelve months. The Bank has also generated strong deposit growth of 24% with a $110 million increase in average deposit balances to $567 million in the second quarter of 2005. Net interest income for the six months ended June 30, 2005 was $13,537,000 compared to $11,723,000 for the six months ended June 30, 2004. Noninterest revenue was $2,420,000 in the first two quarters of 2005 compared to $2,827,000 in the two quarters of 2004. The Bank recorded a net securities gain of $58,000 in the 2005 period compared to a net securities gain of $400,000 in the 2004 period. Total operating expenses were $10,855,000 in the six months ended June 30, 2005 compared to $10,034,000 in the six months ended June 30, 2004. Compensation costs were up $412,000, 7%, 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. The Bank recorded non-cash charges of $574,000 in the first two quarters of 2005 compared to $342,000 in the first two quarters 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." The provision for credit losses was $400,000 in the first two quarters of 2005 compared to $250,000 in the first two quarters of 2004. The reserve for credit losses was $5,885,000, $5,479,000, and $5,149,000 representing 1.06%, 1.02%, and 1.04% of total loans at June 30, 2005, December 31, 2004, and June 30, 2004, respectively. The Bank had net recoveries of $6,000 and $24,000 in the first two quarters of 2005 and 2004, respectively. The Bank had nonaccrual loans of $243,000, $30,000, and $82,000 at June 30, 2005, December 31, 2004, and June 30, 2004, respectively. Founded in 1987, Wainwright Bank offers a complete array of commercial banking services, including investment management. 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. The Bank anticipates opening offices at Coolidge Corner in Brookline and Newton Centre this summer. 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 June 30, 2005 and 2004 2005 2004 Net interest income $ 6,886 $ 6,050 Provision for credit losses 250 250 Noninterest income 1,241 1,558 Noninterest expense 5,306 4,919 Income before taxes 2,571 2,439 Income tax provision 724 757 Net income 1,847 1,682 Net income available to common shareholders 1,772 1,607 Earnings per share: Basic $ 0.24 $ 0.24 Diluted $ 0.23 $ 0.22 Return on shareholders' equity (annualized) 11.20% 11.85% Return on assets (annualized) 1.01% 1.03% Net interest yield 3.90% 3.87% Weighted average common shares outstanding: Basic 7,249,700 6,782,684 Diluted 8,198,818 7,777,871 FINANCIAL HIGHLIGHTS: (dollars in thousands) Six months ended June 30, 2005 and 2004 2005 2004 Net interest income $ 13,537 $ 11,723 Provision for credit losses 400 250 Noninterest income 2,420 2,827 Other noninterest expense 10,855 10,034 Income before taxes 4,702 4,266 Income tax provision 1,331 1,237 Net income 3,371 3,029 Net income available to common shareholders 3,221 2,879 Earnings per share: Basic $ 0.45 $ 0.45 Diluted $ 0.41 $ 0.41 Return on shareholders' equity (annualized) 10.38% 11.63% Return on assets (annualized) 0.92% 0.95% Net interest yield 3.83% 3.87% Weighted average common shares outstanding: Basic 7,238,715 6,365,512 Diluted 8,199,792 7,370,036 at June 30, 2005 and 2004 Total Assets $ 714,188 $ 676,809 Total Loans 552,940 497,302 Total Investments 126,935 142,432 Total Deposits 532,401 464,911 Shareholders' Equity 66,780 60,581 Book Value Per Common Share $ 8.25 $ 7.54 DATASOURCE: Wainwright Bank & Trust Company CONTACT: James J. Barrett, Senior VP and Chief Financial Officer of Wainwright Bank & Trust Company, +1-617-478-4000

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