WAIN Wainwright Bank & Trust Company (MM)

BOSTON, April 19 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported 2007 first quarter consolidated net income of $1,839,000 and diluted earnings per share of $.22 ($.24 per basic share). This compares to consolidated net income of $1,685,000 and diluted earnings per share of $.20 ($.22 per basic share) for the quarter ended March 31, 2006. 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 2006. The Bank's average outstanding loan balances grew $41 million or 7% from the first quarter of 2006 to $647 million in the first quarter of 2007. The commercial loan portfolio, including higher yielding commercial real estate and construction loans, increased by more than $50 million while the residential mortgage portfolio experienced net payoffs of $10 million. Jan A. Miller, President and CEO stated, "In this competitive market, we have been able to record solid loan growth while maintaining our high credit standards. Our commercial loan portfolio has increased 15% in the last year. In addition, our deposit base has also seen some recent growth in core transaction accounts. The inverted yield curve and the accompanying margin compression continues to impede our net interest income, despite the success we have had in growing the balance sheet." Average deposits increased $6 million from the first quarter of 2006 to the first quarter of 2007. As market rates have risen over the past year, deposit customers have migrated away from money market and savings accounts, which are down $38 million, and into higher yielding certificates of deposit, which are up $33 million. Demand deposits and NOW account balances are up over $10 million or 6%. In addition, the Bank has used borrowed funds to help fund the growth in the loan portfolio. Net interest income was $6.6 million in the first quarter of 2007 compared to $7 million in the first quarter of 2006. Continuing margin compression has reduced the Bank's net interest yield to 3.41% in the first quarter of 2007 compared to 3.74% in the first quarter of 2006. The provision for credit losses was $250,000 in the first quarter of 2007 compared to $125,000 in the first quarter of 2006. The increase is entirely attributable to loan portfolio growth. The reserve for credit losses was $7,235,000, $6,984,000, and $6,183,000 representing 1.11%, 1.10%, and 1.04% of total loans at March 31, 2007, December 31, 2006, and March 31, 2006, respectively. The Bank had net recoveries of $1,000 in the first quarter of 2007 compared to net recoveries of $3,000 in the first quarter of 2006. The Bank had nonaccrual loans of $86,000 at March 31, 2007 and December 31, 2006. There were no loans on nonaccrual at March 31, 2006. Total noninterest revenue was $1.9 million in the first quarter of 2007 compared to $1.5 million in the first quarter of 2006. The 2007 quarter included an $850,000 gain on the sale of one property held for investment purposes. Net security losses recorded in the first quarter of 2007 amounted to $151,000 compared to net security gains of $4,000 in the first quarter of 2006. The 2006 quarter benefited from a $240,000 award from the Community Development Financial Institutions Fund of the U. S. Treasury. The award was provided in recognition of the Bank's lending activities in distressed communities. Total operating expenses were $5.8 million in the first quarter of 2007 compared to $6 million in the first quarter of 2006. The Bank recorded non- cash charges of $87,000 in the first quarter of 2007 compared to $152,000 in the first quarter of 2006 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". In an earlier period, the Bank sold its credit card portfolio. The first quarter of 2006 included $59,000 of final processing costs related to the sold portfolio. Advertising and promotional costs were $126,000 in the first quarter of 2007, down $44,000 from the $170,000 spent in the first quarter of 2006. Occupancy and equipment costs were down by $36,000 due to lower depreciation charges and rental costs. Partially offsetting the above was a $145,000 increase (+4%) in compensation costs due to normal merit raises and higher medical insurance costs. 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, Brookline branch, and Newton Centre, 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. FINANCIAL HIGHLIGHTS: (dollars in thousands) Three months ended March 31, 2007 and 2006 2007 2006 Net interest income $ 6,629 $ 6,971 Provision for credit losses 250 125 Noninterest income 1,919 1,502 Noninterest expense 5,813 6,016 Income before taxes 2,485 2,332 Income tax provision 646 647 Net income 1,839 1,685 Net income available to common shareholders 1,764 1,610 Earnings per share: Basic $ 0.24 $ 0.22 Diluted $ 0.22 $ 0.20 Return on shareholders' equity (annualized) 10.72% 10.29% Return on assets (annualized) 0.90% 0.86% Weighted average common shares outstanding: Basic 7,232,901 7,370,171 Diluted 8,178,356 8,318,859 at March 31, 2007 and 2006 Total assets $ 849,372 $ 787,114 Total loans 653,239 595,049 Total investments 127,168 127,700 Total deposits 575,669 522,659 Borrowed funds 200,610 196,034 Shareholders' equity 69,555 65,615 Book value per common share $ 8.57 $ 7.97 James J. Barrett Senior VP and Chief Financial Officer Tel: (617) 478-4000 Fax: (617) 439-4854 Website: http://www.wainwrightbank.com/ DATASOURCE: Wainwright Bank & Trust Company CONTACT: James J. Barrett, Senior VP and Chief Financial Officer of Wainwright Bank & Trust Company, +1-617-478-4000, Fax: +1-617-439-4854 Web site: http://www.wainwrightbank.com/

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