WAIN Wainwright Bank & Trust Company (MM)

BOSTON, April 15 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported 2008 first quarter consolidated net income of $1,184,000 and diluted earnings per share of $.14 ($.15 per basic share). This compares to consolidated net income of $1,839,000 and diluted earnings per share of $.21 ($.23 per basic share) for the quarter ended March 31, 2007. 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 2007. The Bank's weighted average outstanding loan balances grew $59 million or 9% from the first quarter of 2007 to $706 million in the first quarter of 2008 and total loans outstanding amounted to $732 million at March 31, 2008. The residential real estate loan portfolio netted the largest year over year change with a $50 million increase. The commercial real estate and other commercial loans increased $24 and $17 million, respectively, while the commercial construction loan portfolio had net payoffs of $32 million. Jan A. Miller, President and CEO stated, "In this changing market, we have been able to continue to record solid loan growth while maintaining high credit standards. The recent turmoil in the financial markets has created opportunities for Wainwright to capture additional market share in our residential real estate products while continuing to record growth in our commercial loan products net of paydowns on construction loans. In addition, our deposit base has also seen some recent growth in core transaction accounts. Margin compression continues to impede our net interest income, despite the success we have had in growing the balance sheet." Average deposits increased $41 million or 7% from the first quarter of 2007 to the first quarter of 2008. As market rates climbed in 2007, deposit customers took advantage of the competitive rates the Bank offered, especially the money market products which increased $51 million to an average of $192 million in the first quarter of 2008. Certificates of deposits partially offset the increase in money markets as they declined $11 million during the same period. The Bank used advances from the Federal Home Loan Bank as a component of its balance sheet management to help fund the growth in earning assets. Borrowed funds from the FHLB increased $45 million from the first quarter of 2007. Net interest income was $6.8 million in the first quarter of 2008 compared to $6.6 million in the first quarter of 2007. Continuing margin compression has reduced the Bank's net interest yield to 3.02% in the first quarter of 2008 compared to 3.41% in the first quarter of 2007. The provision for credit losses was $250,000 for each of the first quarters of 2008 and 2007. The provision is made based on management's assessment of the adequacy of the allowance for credit losses after considering historical experience, current economic conditions, changes in the composition of the loan portfolio, and the level of non-accrual and other non- performing loans. The provision in the current quarter is primarily attributable to the growth in the loan portfolio. The reserve for credit losses was $7,813,000, $7,638,000, and $7,235,000 representing 1.07%, 1.07%, and 1.11% of total loans at March 31, 2008, December 31, 2007, and March 31, 2007, respectively. The Bank had net charge-offs of $75,000 in the first quarter of 2008 compared to net recoveries of $1,000 in the first quarter of 2007. The Bank had nonaccrual loans of $842,000, $50,000, and $86,000 at March 31, 2008, December 31, 2007, and March 31, 2007, respectively. Total noninterest income was $1.2 million in the first quarter of 2008 compared to $1.9 million in the first quarter of 2007, a decline of $739,000. The primary reason for the decline was an $850,000 gain on the sale of one property held for investment purposes recorded in the first quarter 2007. The Bank recorded a $31,000 net gain on the sale of securities in the first quarter 2008 compared to a $151,000 loss in the first quarter 2007, a net increase of $182,000. Investment management and deposit service charges decreased $49,000 and $27,000, respectively. Total operating expenses were $6.3 million in the first quarter of 2008 compared to $5.8 million in the first quarter of 2007, an increase of $475,000. Salaries and employee benefits increased $223,000 in the first quarter 2008 compared to 2007, a result of normal merit increases, an increased head count, and increased medical costs. Professional fees increased $85,000 due to consultants hired to complete projects related to various regulatory standards as well as costs for the Bank's Strategic Planning. Occupancy and equipment costs increased $60,000 due to increased rent and utility costs for the branches offset by a decline in depreciation on furniture and equipment. Advertising and marketing costs increased $60,000 as a result of promotional costs for various product specials. The Bank recorded non-cash charges of $118,000 in the first quarter of 2008 compared to $87,000 in the first quarter of 2007 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". 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, Somerville, Brookline, and Newton Centre branches, and a new branch set to open in the summer of 2008 in Dorchester, 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, 2008 2007 Net interest income $6,752 $6,629 Provision for credit losses 250 250 Noninterest income 1,180 1,919 Other noninterest expense 6,288 5,813 Income before taxes 1,394 2,485 Income tax provision 210 646 Net income 1,184 1,839 Net income available to common shareholders 1,109 1,764 Earnings per share: Basic $0.15 $0.23 Diluted $0.14 $0.21 Return on average shareholders' equity 6.66% 10.72% Return on average assets 0.51% 0.90% Net interest yield 3.02% 3.41% Weighted average common shares outstanding: Basic 7,478,630 7,594,546 Diluted 8,453,919 8,587,293 at March 31, 2008 and 2007 Total Assets 929,251 849,372 Total Loans 732,198 653,239 Total Investments 155,416 127,168 Total Deposits 623,792 575,669 Total Borrowed Funds 233,509 200,610 Shareholders' Equity 68,511 69,555 Book Value Per Common Share $8.34 $8.15 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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