WAIN Wainwright Bank & Trust Company (MM)

BOSTON, April 13 /PRNewswire-FirstCall/ -- Wainwright Bank & Trust Company (NASDAQ:WAIN) reported 2006 first quarter consolidated net income of $1,685,000 and diluted earnings per share of $.21 ($.23 per basic share). This compares to consolidated net income of $1,524,000 and diluted earnings per share of $.19 ($.20 per basic share) for the quarter ended March 31, 2005. 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 2005. Net interest income was $7.0 million in the first quarter of 2006 compared to $6.7 million in the first quarter of 2005. Jan A. Miller, President and CEO stated, "Over the past twelve months we have been particularly pleased with the growth in our commercial and industrial loan activity, which has more than doubled to $83 million in average outstanding balances in the first quarter of 2006. In addition, the variety of residential loan products offered by the Bank have combined to provide another $33 million in loan growth over the last twelve months." The Banks average total earning assets increased $37 million to $756 million in the first quarter of 2006. The loan growth has been funded by increases in deposits and cash flow provided by the investment portfolio, and, to a lesser extent, by borrowed funds. The Bank's net interest yield has remained relatively flat at 3.74% for the first quarter of 2006 compared to 3.75% for the first quarter of 2005. The provision for credit losses was $125,000 in the first quarter of 2006 compared to $150,000 in the first quarter of 2005. The reserve for credit losses was $6,183,000, $6,055,000, and $5,623,000 representing 1.04%, 0.99%, and 1.03% of total loans at March 31, 2006, December 31, 2005, and March 31, 2005, respectively. The Bank had net recoveries of $3,000 in the first quarter of 2006 compared to net chargeoffs of $6,000 in the first quarter of 2005. The Bank had no loans on nonaccrual status at March 31, 2006 and December 31, 2005 compared to $95,000 at March 31, 2005. Total noninterest revenue increased from $1.2 million in the first quarter of 2005 to $1.5 million in the first quarter of 2006. In the fourth quarter of 2005 the Bank invested $10 million in a bank owned life insurance product, which provided after-tax income of $107,000 in the first quarter of 2006. Total operating expenses were $6.0 million in the three months ended March 31, 2006 compared to $5.5 million in the three months ended March 31, 2005. The Bank opened two new branches in the latter half of 2005. Compensation costs were up $297,000 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 $224,000 largely due to the two new branches. The Bank recorded non-cash charges of $152,000 in the first quarter of 2006 compared to $370,000 in the first quarter of 2005 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". 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, 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, 2006 and 2005 2006 2005 Net interest income $6,971 $6,651 Provision for credit losses 125 150 Noninterest income 1,502 1,179 Noninterest expense 6,016 5,549 Income before taxes 2,332 2,131 Income tax provision 647 607 Net income 1,685 1,524 Net income available to common shareholders 1,610 1,449 Earnings per share: Basic $0.23 $0.20 Diluted $0.21 $0.19 Return on shareholders' equity (annualized) 10.29% 9.52% Return on assets (annualized) 0.86% 0.83% Weighted average common shares outstanding: Basic 7,019,210 7,227,607 Diluted 7,922,701 8,200,359 at March 31, 2006 and 2005 Total assets $787,114 $759,554 Total loans 595,049 547,957 Total investments 127,700 173,073 Total deposits 522,659 478,099 Borrowed funds 196,034 213,317 Shareholders' equity 65,615 64,534 Book value per common share $8.37 $8.00 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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