WAIN Wainwright Bank & Trust Company (MM)

BOSTON, Feb. 14 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported consolidated net income of $6.0 million for 2007 and diluted earnings per share of $.71 ($.76 per basic share). This compares to consolidated net income of $7.0 million and diluted earnings per share of $.80 ($.87 per basic share) for 2006. Net income for the fourth quarter of 2007 was $1.2 million with diluted and basic earnings per share of $.14. This compares to net income of $1.7 million and diluted and basic earnings per share of $.20 and $.22, respectively, for the fourth quarter of 2006. All prior year earnings per share amounts have been adjusted to reflect a 5% common stock dividend declared and paid during 2007. Net interest income was $26.2 million in 2007 compared to $27.6 million in 2006. Jan A. Miller, President and CEO stated, "During 2007 we continued to generate solid loan growth from all of our loan products including commercial, commercial real estate, and residential mortgages while maintaining our high credit standards. Our average loans outstanding increased $68 million, or 11%, compared to 2006. At year end the Bank's loan portfolio was $713 million. This solid loan growth has been achieved in a highly competitive market without any relaxation of our credit standards. However, we are not immune to the pressures of the yield curve that was inverted for most of last year. Despite the growth in the loan portfolio, especially in higher yielding commercial loans, our net interest yield has declined to 3.13% in 2007 compared to 3.63% in 2006." During 2007 the Bank's total average earning assets grew $77 million. This growth was funded with both deposits which increased $30 million and borrowed funds which increased $41 million. The provision for credit losses was $700,000 in 2007 compared to $875,000 in 2006. The reserve for credit losses was $7,638,000 and $6,984,000 representing 1.07% and 1.10% of total loans at December 31, 2007 and 2006, respectively. The Bank had net chargeoffs of $46,000 in 2007 compared to net recoveries of $54,000 in 2006. The Bank had one loan on nonaccrual at December 31, 2007 and 2006 amounting to $50,000 and $84,000, respectively. Total noninterest revenue decreased $278,000 to $5.4 million in 2007 from $5.7 million in 2006. In the first quarter of 2007, the Bank recorded a gain of $850,000 on the sale of a property held for investment purposes. The rental income associated with this property was $228,000 in 2006. In 2006 the Bank benefited from awards totaling $540,000 from the Community Development Financial Institutions fund of the U.S. Treasury. These awards were provided in recognition of the Bank's lending activities in distressed communities. Comparable awards recorded in 2007 were $50,000. During 2006 the Bank recorded net securities gains of $206,000 compared to net securities losses of $307,000 in 2007. Deposit service charge income decreased from $2,459,000 in 2006 to $2,374,000 in 2007. Asset management fees, loan fees, and income recorded for bank owned life insurance were higher in 2007 by $74,000, $61,000, and $54,000, respectively. Total operating expenses increased $573,000 to $23.4 million in 2007 from $22.8 million in 2006. Salaries and employee benefits increased $578,000, or 4%, due to normal merit raises and higher medical costs. In 2006 the Bank sold two real estate properties and recorded gains totaling $659,000. There were no OREO sales in 2007. Marketing costs were $634,000 in 2007, an increase of $85,000 from 2006. Occupancy and equipment costs were $4.0 million in 2007, down $270,000 from the prior year. More than half of this decrease is attributable to lower depreciation charges, which were down by $152,000 in 2007. The Bank also recorded non-cash charges of $491,000 in 2007 compared to $699,000 in 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 2005, the Bank sold its credit card portfolio. Final processing costs related to the sold portfolio amounting to $82,000 were recorded in 2006. 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) Twelve months ended December 31, 2007 2006 Net interest income $ 26,247 $ 27,588 Provision for credit losses 700 875 Noninterest income 5,427 5,705 Other noninterest expense 23,385 22,812 Income before taxes 7,589 9,606 Income tax provision 1,553 2,632 Net income 6,036 6,974 Net income available to common shareholders 5,736 6,674 Earnings per share: Basic $ 0.76 $ 0.87 Diluted $ 0.71 $ 0.80 Return on average shareholders' equity 8.60% 10.43% Return on average assets .69% .87% Net interest yield 3.13% 3.63% Weighted average common shares outstanding: Basic 7,559,938 7,672,895 Diluted 8,560,691 8,693,895 at December 31, 2007 and 2006 Total Assets $ 913,695 $ 811,690 Total Loans 713,279 636,499 Total Investments 146,992 123,291 Total Deposits 617,287 581,812 Shareholders' Equity 70,814 67,971 Book Value Per Common Share $ 8.38 $ 7.98 FINANCIAL HIGHLIGHTS: (dollars in thousands) Three months ended December 31, 2007 2006 Net interest income $ 6,522 $ 6,532 Provision for credit losses 200 200 Noninterest income 1,170 1,284 Noninterest expense 6,168 5,250 Income before taxes 1,324 2,366 Income tax provision 159 640 Net income 1,165 1,726 - - Net income available to common shareholders 1,090 1,651 Earnings per share: Basic $ 0.14 $ 0.22 Diluted $ 0.14 $ 0.20 Return on average shareholders' equity 6.51% 10.04% Return on average assets .51% .84% Net interest yield 2.97% 3.36% Weighted average common shares outstanding: Basic 7,527,430 7,621,388 Diluted 8,530,200 8,620,456 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, or Fax, +1-617-439-4854 Web site: http://www.wainwrightbank.com/

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