BOSTON, Oct. 15 /PRNewswire-FirstCall/ -- Wainwright Bank &
Trust Company (NASDAQ:WAIN) reported consolidated net income of
$1,585,000 for the quarter ended September 30, 2009 with basic
earnings per share of $.17 ($.16 per diluted share). This compares
to a consolidated net loss of $220,000 with basic and diluted
earnings per share of $(0.04) for the quarter ended September 30,
2008. Consolidated net income for the nine months ended September
30, 2009 is $4,540,000, which represents an increase of $2,422,000
from $2,118,000 for the same nine-month period in 2008. Basic
earnings per share were $.48 for the nine months ended September
30, 2009 ($.45 per diluted share) compared to $.26 for the nine
months ended September 30, 2008 ($.25 per diluted share). The
primary reasons for the increase in net income for the nine months
ending September 30, 2009 are an increase of $1,416,000 in net
security gains, a decline of $1,510,000 in other-than-temporary
impairment losses, and the receipt of a Bank Enterprise award in
the amount of $477,000. Partially offsetting these improvements is
an increase in the provision for credit losses of $550,000 to
$1,950,000 in the first three quarters of 2009 compared to
$1,400,000 in the first three quarters of 2008. Due to increased
earnings and the value of the securities portfolio the Bank's book
value per common share increased to $8.77 at September 30, 2009, up
from $7.84 at September 30, 2008. The Bank is pleased that Jan A.
Miller, President & CEO, has been appointed to the newly formed
FDIC Advisory Committee on Community Banking. Mr. Miller will
represent Northeast Community Banks as one of 14 Advisory Committee
members speaking for a cross section of Community Bankers from
around the Nation. In announcing the appointment, FDIC Chairman
Sheila Bair said "I look forward to working with the Advisory
Committee members on this important endeavor to get valuable
contributions and viewpoints to help Community Banks - large and
small - to continue to weather the challenging business
environment." The Bank's weighted average interest-earning assets
increased $73 million, or 8%, to $995 million from $923 million for
the nine months ending September 30, 2009 and 2008, respectively.
The average outstanding loan balances grew $73 million, or 10%, to
$825 million in the first nine months of 2009 when compared to the
same period in 2008. Residential real estate loans increased $48
million, or 14% during the period and accounted for the majority of
the increase. The Bank also saw increases in its commercial and
commercial real estate loans of $31 million, net of commercial
construction loan payoffs of $7 million. Mr. Miller stated, "We
believe that borrowers appreciate the opportunity to conduct
business with a local, socially conscious community bank. Our 14%
growth in residential loans, in a challenging market, reflects our
commitment to providing housing financing. In the third quarter of
this year we have generated more than $49 million in new
residential loans and have closed over $119 million year-to-date.
Our commercial loan growth continues to be strong as well,
particularly our community development and non-profit lending. In
the third quarter, the Bank closed on a $2.5 million construction
loan to Madison Property Development LLC to build 20 homes in the
Orchard Gardens neighborhood of Roxbury. These homes will be sold
to first-time, low-income homebuyers, and will revitalize a
blighted parcel of land that has been vacant for many years."
Travis Lee, project manager for Madison Property Development LLC,
said "Wainwright Bank has been a valuable partner and wonderful to
work with all along the process. Thanks to their support, we are
building housing that will be affordable to families that otherwise
may not be able to own their own homes." Average deposits increased
$50 million, or 7.5%, to $708 million in the first nine months of
2009 when compared to the same period in 2008, $33 million of which
was due to certificate of deposit balances. NOW, demand deposit,
and savings products increased $19 million, $9 million, and $5
million, respectively, which offsets the decline of $16 million in
MMDA accounts. The Bank also used advances from the Federal Home
Loan Bank, as needed, as a component of its balance sheet
management to help fund the growth in earning assets as well as
liquidity management. Net interest income was $23.5 million for the
nine months ended September 30, 2009 compared to $21.3 million for
the same period of 2008, an increase of $2.2 million, or 10%. The
Bank's net interest margin climbed to 3.16% from 3.08% in the nine
months ending September 30, 2009 compared to the same nine-month
period in 2008. As the economy continued to decline throughout 2008
and early 2009 the Federal Reserve addressed the decline with
monetary policy and reduced the target Federal Funds reserve rate
to historic levels. As a result, the Bank's offering rates for
various deposit products declined significantly over the last year.
The primary reason for the increase in net interest income is the
decline in the cost of interest-bearing liabilities, which
decreased 74 basis points to 2.30% for the nine months ending
September 30, 2009 compared to 2008, resulting in a decline in
interest expense of $3.7 million. In addition, the increase of $73
million in the loan portfolio described above contributed to the
increase in interest income. Partially offsetting the benefit from
reduced funding costs and higher loan volumes was the decline in
investment securities' interest and dividend income. The Bank
reduced its level of investments due to principal amortization,
maturities, and selected sales. In addition, the Bank did not
receive any income on its holding of Federal Home Loan Bank stock
as a result of the FHLB's decision to suspend its dividend which
amounted to $322,000 during the first nine months of 2008. The
provision for credit losses was $1.95 million and $1.40 million for
the nine months ended September 30, 2009 and 2008, respectively. A
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 period is
attributable to the trend of increased delinquent and impaired
loans, increasing charge-offs, as well as the continued economic
uncertainty due to the slow economic response to various
initiatives to stabilize the economy and the housing market in
particular. The reserve for credit losses was $10.0 million, $8.7
million, and $8.4 million representing 1.20%, 1.04%, and 1.04% of
total loans at September 30, 2009, December 31, 2008, and September
30, 2008, respectively. The Bank had net charge-offs of $706,000
and $668,000 in the nine months ended September 30, 2009 and 2008,
respectively. Nonaccrual loans amounted to $2.2 million, $2.1
million, and $847,000 at September 30, 2009, December 31, 2008, and
September 30, 2008, respectively. The nonaccrual loans as of
September 30, 2009 consisted of nine residential mortgage
customers, three of which are in the process of foreclosure, and
four commercial relationships. At September 30, 2009, loans 30 days
or more past due represented 1.18% of the total portfolio compared
to .88% at December 31, 2008. Total noninterest income was $5.2
million and $1.3 million for the nine months ended September 30,
2009 and 2008, respectively, an increase of $3.9 million. The Bank
recorded $1.1 million in net gains on securities in the nine months
ending September 30, 2009, compared to a loss of $274,000 in the
same period of 2008. In addition, other-than-temporary impairment
losses declined $1.5 million, from $1.9 million in 2008 to $390,000
in 2009. The Bank benefited from the Bank Enterprise award totaling
$477,000 in the third quarter of 2009 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. A comparable award was received in the
fourth quarter of 2008. As a result of using a portion of the
awarded allocation of federal New Market Tax Credits previously
noted, the Bank recorded fee income in the amount of $447,000 in
2009 that was not present in 2008. The Bank recorded $295,000 and
$38,000 in mortgage banking income during the nine months ending
September 30, 2009 and 2008, respectively. The increase in mortgage
banking income was the result of the Bank taking advantage of
market opportunities, which presented itself with a decrease in
residential mortgage rates and subsequent increase in refinanced
loan activity. These increases were offset by declines in
investment management, loan fees, and bank owned life insurance
income of $82,000, $74,000, and $46,000 respectively. Total
operating expenses were $21.4 million and $18.9 million for the
nine months ended September 30, 2009 and 2008, respectively, an
increase of $2.5 million, or 13%. The Bank absorbed a $937,000
increase in assessment fees as a result of increased FDIC insurance
premiums, including an additional special assessment of
approximately $460,000. Premiums increased as a result of the
FDIC's plan to reestablish the Deposit Insurance Fund to levels
required by the Federal Deposit Institution Reform Act of 2005.
Salaries and employee benefits increased $847,000, a result of
normal merit increases, an increased head count primarily as a
result of our new branch in Ashmont, commission pay, contract
labor, and increased medical costs. Professional fees increased
$283,000 primarily due to various enterprise risk management costs
and legal fees. Advertising and marketing costs increased $150,000
as a result of promotional costs for various product specials.
Occupancy and equipment costs increased $106,000 due to increased
utility costs and real estate taxes for the branches as well as an
increase in depreciation on leasehold improvements and furniture
and equipment. Loan collection and other real estate owned costs
increased $179,000 to $185,000 in the first nine months of 2009.
Founded in 1987, with $1 billion in assets and 12 branches serving
Greater Boston, Wainwright Bank is widely recognized as the
country's leading socially progressive bank. It has committed over
$700 million in loans to socially responsible development projects
including affordable housing, environmental protection, HIV/AIDS
services, homeless shelters, immigration services and more. The
Bank was named the "ultimate high-purpose company" in a recently
published book by award-winning author, Christine Arena, entitled
"The High-Purpose Company: The Truly Responsible (and Highly
Profitable) Firms That Are Changing Business Now". With Boston
branches in the Financial District, Back Bay/South End, Jamaica
Plain, Dorchester, 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. FINANCIAL HIGHLIGHTS: (dollars in thousands)
(Unaudited) For the three months ended September 30, 2009 2008 ----
---- Net interest income $8,167 $7,382 Provision for credit losses
950 400 Noninterest income (loss) 1,647 (937) Other noninterest
expense 7,088 6,549 Income (loss) before taxes 1,776 (504) Income
tax provision (benefit) 191 (284) Net income (loss) 1,585 (220) Net
income (loss) attributable to noncontrolling interest - - Net
income (loss) attributable to Wainwright Bank & Trust 1,585
(220) Net income (loss) available to common shareholders 1,229
(295) Earnings (loss) per share: Basic $0.17 $(0.04) Diluted $0.16
$(0.04) Return on average shareholders' equity 6.74% (1.30)% Return
on average assets 0.62% (0.09)% Net interest margin 3.31% 3.09 %
Weighted average common shares outstanding: Basic 7,306,584
7,248,130 Diluted 8,247,411 7,248,130 FINANCIAL HIGHLIGHTS:
(dollars in thousands) (Unaudited) For the nine months ended
September 30, 2009 2008 ---- ---- Net interest income $23,495
$21,306 Provision for credit losses 1,950 1,400 Noninterest income
5,197 1,255 Other noninterest expense 21,405 18,876 Income before
taxes 5,337 2,285 Income tax provision 620 169 Net income 4,717
2,116 Net income (loss) attributable to noncontrolling interest 177
(2) Net income attributable to Wainwright Bank & Trust 4,540
2,118 Net income available to common shareholders 3,471 1,893
Earnings per share: Basic $0.48 $0.26 Diluted $0.45 $0.25 Net
interest margin 3.16% 3.08% Return on average assets 0.59% 0.29%
Return on average shareholders' equity 6.71% 4.07% Weighted average
common shares outstanding: Basic 7,297,017 7,339,925 Diluted
8,236,696 8,315,412 at September 30, 2009 and 2008 Total Assets
$1,009,883 $979,538 Total Loans 831,879 802,504 Total Investments
134,320 116,029 Total Deposits 667,518 682,522 Total Borrowed Funds
239,444 224,736 Shareholders' Equity 94,208 64,084 Book Value Per
Common Share $8.77 $7.84 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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