WAIN Wainwright Bank & Trust Company (MM)

BOSTON, Feb. 9 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported record consolidated net income of $6.8 million for 2005 and diluted earnings per share of $.83 ($.90 per basic share). This compares to consolidated net income of $6.4 million and diluted earnings per share of $.82 ($.90 per basic share) for 2004. Net income for the fourth quarter of 2005 was $1.6 million with diluted and basic earnings per share of $.20 and $.22, respectively. This compares to net income of $1.5 million and diluted and basic earnings per share of $.19 and $.20, respectively, for the fourth quarter of 2004. All prior year earnings per share amounts have been adjusted to reflect a 5% common stock dividend declared and paid during 2005. Net interest income was $26.9 million in 2005 compared to $24.3 million in 2004. Jan A. Miller, President and CEO stated, "During 2005 we continued to generate healthy loan growth across both our commercial and consumer business lines while maintaining outstanding loan quality. Our average commercial, commercial real estate, and residential real estate loan portfolios increased a combined $69 million, or 14%, compared to 2004. The prolonged margin compression experienced by the banking industry has partially offset the benefit of our loan growth." Mr. Miller added, "Our successful opening of two branches during 2005 in new markets, Brookline and Newton, will provide Wainwright Bank with additional growth opportunities." The provision for credit losses was $650,000 in 2005 compared to $350,000 in 2004. The reserve for credit losses was $6,055,000 and $5,479,000 representing 0.99% and 1.02% of total loans at December 31, 2005 and 2004, respectively. Net chargeoffs amounted to $74,000 in 2005 or just 0.01% of total average loans on an annualized basis. The Bank recorded net recoveries of $254,000 in 2004. The Bank had no loans on nonaccrual at December 31, 2005 compared to $30,000 at December 31, 2004. Total noninterest revenue decreased from $5.5 million in 2004 to $5.3 million in 2005. This was primarily due to a reduction of $416,000 in net security gains. Total operating expenses were $22.5 million in 2005 compared to $20.6 million in 2004. Compensation costs were up $720,000 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 $440,000 largely due to the two new branches. The Bank recorded non-cash charges of $1,097,000 in 2005 compared to $635,000 in 2004 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, 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, 2005 and 2004 2005 2004 Net interest income $26,937 $24,337 Provision for credit losses 650 350 Noninterest income 5,319 5,508 Noninterest expense 22,497 20,635 Income before taxes 9,109 8,860 Income tax provision 2,297 2,479 Net income 6,812 6,381 Net income available to common shareholders 6,512 6,081 Earnings per share: Basic $0.90 $0.90 Diluted $0.83 $0.82 Return on shareholders' equity 10.26% 11.07% Return on assets 0.92% 0.96% Weighted average common shares outstanding: Basic 7,225,826 6,786,028 Diluted 8,170,553 7,782,939 FINANCIAL HIGHLIGHTS: (dollars in thousands) Three months ended December 31, 2005 and 2004 2005 2004 Net interest income $6,717 $6,348 Provision for credit losses 250 100 Noninterest income 1,385 1,371 Noninterest expense 6,196 5,664 Income before taxes 1,656 1,955 Income tax provision 29 408 Net income 1,627 1,547 Net income available to common shareholders 1,552 1,472 Earnings per share: Basic $0.22 $0.20 Diluted $0.20 $0.19 Return on shareholders' equity - annualized 9.60% 9.64% Return on assets - annualized 0.84% 0.88% Weighted average common shares outstanding: Basic 7,183,490 7,209,519 Diluted 8,105,258 8,191,069 at December 31, 2005 and 2004 Total assets $841,954 $759,974 Total loans 610,919 537,534 Total investments 178,655 169,571 Total deposits 561,507 522,383 Shareholders' equity 65,655 63,940 Book value per common share $8.35 $7.93 James J. Barrett Senior VP and Chief Financial Officer Tel: (617) 478-4000 Fax: (617) 439-4854 Website: http://www.wainwrightbank.com/ First Call Analyst: FCMN Contact: DATASOURCE: Wainwright Bank & Trust Company CONTACT: James J. Barrett, Senior VP and Chief Financial Officer of Wainwright Bank & Trust Company, +1-617-478-4000 Web site: http://www.wainwrightbank.com/

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