BOSTON, July 12 /PRNewswire-FirstCall/ -- Wainwright Bank &
Trust Company ("WAIN") reported 2006 second quarter consolidated
net income of $1,708,000 and diluted earnings per share of $.21
($.22 per basic share). This compares to consolidated net income of
$1,847,000 and diluted earnings per share of $.21 ($.23 per basic
share) for the quarter ended June 30, 2005. Consolidated net income
for the six months ended June 30, 2006 is $3,393,000, slightly
higher than the previous six-month record earnings of $3,371,000
for the same prior year period. Diluted earnings per share were
$.41 for the six months ended June 30, 2006 ($.44 per basic share)
compared to diluted earnings per share of $.39 for the six months
ended June 30, 2005 ($.42 per basic share). The EPS amounts reflect
the impact of stock repurchases made during the last twelve months.
All prior period earnings per share amounts have been adjusted to
reflect the 5% common stock dividend declared and paid in the
second quarter of 2006. Net interest income was $7.1 million in the
second quarter of 2006 compared to $6.9 million in the second
quarter of 2005. Through the first six months of 2006, net interest
income was $14.1 million compared to $13.5 million for the first
six months of 2005. Jan A. Miller, President and CEO stated, "We
are pleased with our performance in the first two quarters of 2006.
The $3.4 million in net income represents a record level for
Wainwright for the first six months of the year. Although we have
experienced some recent loan payoffs, overall our loan portfolio
has continued its solid growth in a highly competitive market over
the past twelve months." The Bank's average total earning assets
increased $63 million to $771 million in the second quarter of
2006. Average outstanding loans increased $43 million, or 8%. Of
this amount, $41 million was due to growth in the Bank's commercial
and industrial loan portfolio. The loan growth has been funded by
increases in deposits, borrowed funds, and cash flows provided by
the investment portfolio. The Bank is a member of the Federal Home
Loan Bank of Boston and routinely uses the FHLB as a source of
borrowed funds. The Bank maintains an investment position in the
FHLB which is generally determined by its level of borrowing
activity and during the second quarter of 2006 amounted to
approximately $8.7 million. The FHLB of Boston amended its dividend
schedule and deferred the declaration of its normal quarterly
dividend. As such, no income was recognized by the Bank on this
investment for the second quarter of 2006. The dividend recorded in
the first quarter of this year amounted to $121,000. The provision
for credit losses was $225,000 in the first two quarters of 2006
compared to $400,000 in the first two quarters of 2005. The reserve
for credit losses was $6,284,000, $6,055,000, and $5,885,000
representing 1.05%, 0.99%, and 1.06% of total loans at June 30,
2006, December 31, 2005, and June 30, 2005, respectively. The Bank
had net recoveries of $4,000 and $6,000 in the first two quarters
of 2006 and 2005, respectively. The Bank had no loans on nonaccrual
status at June 30, 2006 and December 31, 2005 compared to $243,000
at June 30, 2005. Total noninterest revenue increased from $2.4
million in the first two quarters of 2005 to $2.8 million in the
first two quarters of 2006. In the fourth quarter of 2005 the Bank
invested $10 million in a Bank-owned life insurance product which
provided tax-free income of $218,000 in the first two quarters of
2006. Total operating expenses were $12.0 million in the six months
ended June 30, 2006 compared to $10.9 million in the six months
ended June 30, 2005. The Bank opened two new branches in the latter
half of 2005 which contributed $553,000 of additional cost in the
first six months of 2006. Compensation costs were up $631,000 due
to a small increase in headcount to service the new branches and
the growth in loans and deposits, medical insurance increases, and
normal merit raises. Occupancy and equipment costs rose $512,000
largely due to the new two branches. The Bank recorded non-cash
charges of $314,000 in the first two quarters of 2006 compared to
$574,000 in the first two quarters of 2005 related to equity
investments in affordable housing projects. These pretax charges
will be more than offset by tax credits available to the Bank.
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,
Somerville, Newton, and Brookline branches, 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 June 30, 2006 and 2005 2006 2005 Net
interest income $7,136 $6,886 Provision for credit losses 100 250
Noninterest income 1,258 1,241 Noninterest expense 5,938 5,306
Income before taxes 2,356 2,571 Income tax provision 648 724 Net
income 1,708 1,847 Net income available to common shareholders
1,633 1,772 Earnings per share: Basic $0.22 $0.23 Diluted $0.21
$0.21 Return on shareholders' equity (annualized) 10.38% 11.20%
Return on assets (annualized) 0.84% 1.01% Net interest yield 3.71%
3.90% Weighted average common shares outstanding: Basic 7,325,288
7,612,176 Diluted 8,272,486 8,608,749 FINANCIAL HIGHLIGHTS:
(dollars in thousands) Six months ended June 30, 2006 and 2005 2006
2005 Net interest income $14,107 $13,537 Provision for credit
losses 225 400 Noninterest income 2,760 2,420 Other noninterest
expense 11,954 10,855 Income before taxes 4,688 4,702 Income tax
provision 1,295 1,331 Net income 3,393 3,371 Net income available
to common shareholders 3,243 3,221 Earnings per share: Basic $0.44
$0.42 Diluted $0.41 $0.39 Return on shareholders' equity
(annualized) 10.33% 10.38% Return on assets (annualized) 0.85%
0.92% Net interest yield 3.73% 3.83% Weighted average common shares
outstanding: Basic 7,346,527 7,600,646 Diluted 8,294,416 8,609,889
at June 30, 2006 and 2005 Total Assets $791,995 $714,188 Total
Loans 598,839 552,940 Total Investments 118,213 126,935 Total
Deposits 598,208 532,401 Shareholders' Equity 65,137 66,780 Book
Value Per Common Share $7.97 $7.85 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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