BOSTON, July 15 /PRNewswire-FirstCall/ -- Wainwright Bank &
Trust Company (NASDAQ:WAIN) reported consolidated net income of
$1,395,000 for the three months ended June 30, 2009 with basic and
diluted earnings per share of $.14. This compares to a consolidated
net income of $1,154,000 and basic earnings per share of $.15 ($.14
per diluted share) for the quarter ended June 30, 2008.
Consolidated net income for the six months ended June 30, 2009 is
$2,955,000 which represents an increase of $617,000 from $2,338,000
for the same six-month period in 2008. Basic earnings per share
were $.31 for the six months ended June 30, 2009 ($.29 per diluted
share) compared to $.30 for the six months ended June 30, 2008
($.28 per diluted share). The Bank's weighted average
interest-earning assets increased $94 million, or 10%, to $1.0
billion from $909 million for the six months ending June 30, 2009
and 2008, respectively. The average outstanding loan balances grew
$93 million, or 13%, from the first six months of 2008 to $823
million in the first six months of 2009. Residential real estate
loans increased $57 million, or 17% 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 $37 million. Jan
A. Miller, President and CEO stated, "The Bank is pleased to
announce growth in earnings for the second consecutive quarter
during these difficult economic times. As a result of our capital
and liquidity strength, Wainwright has continued to capture
additional market share with conservatively underwritten
residential real estate products. Our 17% growth in residential
loans, in a challenging market, reflects our commitment to
providing housing financing. We also believe that borrowers
appreciate the opportunity to conduct business with a local,
socially conscious community bank. In the second quarter of this
year we have generated more than $46 million in new residential
loans and have over $50 million in our pipeline." "Our commercial
loan growth continues to be strong as well, particularly our
community development and non-profit lending. In the fall of 2008,
Wainwright was awarded an allocation of federal New Market Tax
Credits. This allocation allows the Bank to provide critical
capital to investments in low-income neighborhoods. The Bank used a
portion of this allocation for the Hope House, a non-profit that
provides clinical treatment, job training and placement for
recovering alcoholics and substance abusers. Along with over $7
million in financing it enabled Hope House to build a new facility
in the Roxbury neighborhood of Boston. In May 2009 the Bank
provided over $22 million in construction, permanent, and working
capital financing to The Boston Conservatory for the renovation and
expansion of their theater in the Fenway. The Boston Conservatory
trains exceptional young performing artists for careers that enrich
and transform human experience. We have made more than $46 million
in commercial loans in the second quarter, and there is more than
$18 million in loans approved and in the process of closing."
Average deposits increased $72 million, or 11%, from the first six
months of 2008 to $717 million in the same period of 2009, $61
million of which was due to certificate of deposit balances. NOW,
demand deposit, and savings products increased $14 million, $4
million, and $3 million, respectively, which offsets the decline of
$11 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. Net
interest income was $15.3 million for the six months ended June 30,
2009 compared to $13.9 million for the same period of 2008, an
increase of $1.4 million, or 10%. The Bank's net interest margin
remained at 3.08% in the six months ended June 30, 2009 compared to
the same six-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. The Bank's offering
rates for various lending products generally declined and loans
tied to external indices generated lower income as rates fell.
Despite a significant increase of $94 million in interest-earning
assets, the Bank had a decline in total interest and dividend
income of $777,000, or 3% for the six months ending June 30, 2009
compared to 2008. In addition, the decline in the target Federal
Funds reserve rate led to the Bank's decision to reduce rates on
all deposit products. As such, the primary reason for the increase
in net interest income is the decline in the cost of
interest-bearing liabilities, which decreased 78 basis points to
2.36% for the six months ending June 30, 2009 compared to 2008,
resulting in a decline in interest expense of $2.2 million. The
provision for credit losses was $1.0 million for each of the six
months ended June 30, 2009 and 2008. 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 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 $9,473,000,
$8,736,000, and $8,449,000 representing 1.15%, 1.04%, and 1.09% of
total loans at June 30, 2009, December 31, 2008, and June 30, 2008,
respectively. The Bank had net charge-offs of $263,000 and $189,000
in the first two quarters of 2009 and 2008, respectively.
Nonaccrual loans amounted to $4,211,000, $2,069,000, and $973,000
at June 30, 2009, December 31, 2008, and June 30, 2008,
respectively. The nonaccrual loans as of June 30, 2009 consisted of
five residential mortgage customers, three of which are in the
process of foreclosure, and four commercial relationships. At June
30, 2009, loans 30 days or more past due represented .83% of the
portfolio compared to 1.15% at December 31, 2008. Total noninterest
income was $3.6 million and $2.2 million for the six months ended
June 30, 2009 and 2008, respectively, an increase of $1.4 million,
or 62%. The Bank recorded $786,000 in net gains on securities in
the first two quarters of 2009, compared to a loss of $93,000 in
the same period 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
the second quarter that was not present in the same period of 2008.
The Bank recorded $207,000 and $7,000 in the first two quarters of
2009 and 2008, respectively, in mortgage banking income. 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 and loan fees of $75,000 and
$56,000, respectively. Total operating expenses were $14.3 million
and $12.3 million for the six months ended June 30, 2009 and 2008,
respectively, an increase of $2.0 million, or 16%. The Bank
absorbed a $930,000 increase in assessment fees as a result of
increased FDIC insurance premiums, including an additional special
assessment of approximately $475,000 in June 2009. 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 $431,000, 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 $235,000 primarily due to
various enterprise risk management costs and legal fees.
Advertising and marketing costs increased $186,000 as a result of
promotional costs for various product specials. Occupancy and
equipment costs increased $135,000 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.
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 June 30, 2009 2008 ---- ----
Net interest income $7,604 $7,171 Provision for credit losses 500
750 Noninterest income 2,128 1,012 Other noninterest expense 7,549
6,039 Income before taxes 1,683 1,394 Income tax provision 109 242
Net income 1,574 1,152 Net income (loss) attributable to
noncontrolling interest 179 (2) Net income attributable to
Wainwright Bank & Trust 1,395 1,154 Earnings per share: Basic
$0.14 $0.15 Diluted $0.14 $0.14 Return on average shareholders'
equity 6.22% 6.69% Return on average assets 0.54% .48% Net interest
margin 3.08% 3.14% Weighted average common shares outstanding:
Basic 7,305,736 7,294,024 Diluted 8,246,163 8,267,763 FINANCIAL
HIGHLIGHTS: (dollars in thousands) (Unaudited) For the six months
ended June 30, 2009 2008 ---- ---- Net interest income $15,328
$13,923 Provision for credit losses 1,000 1,000 Noninterest income
3,550 2,192 Other noninterest expense 14,317 12,327 Income before
taxes 3,561 2,788 Income tax provision 429 452 Net income 3,132
2,336 Net income (loss) attributable to noncontrolling interest 177
(2) Net income attributable to Wainwright Bank & Trust 2,955
2,338 Earnings per share: Basic $0.31 $0.30 Diluted $0.29 $0.28 Net
interest margin 3.08% 3.08% Return on average assets .57% .50%
Return on average shareholders' equity 6.69% 6.67% Weighted average
common shares outstanding: Basic 7,292,155 7,386,327 Diluted
8,231,895 8,370,069 at June 30, 2009 and 2008 Total Assets
$1,011,921 $1,002,495 Total Loans 822,496 774,320 Total Investments
135,965 143,235 Total Deposits 696,768 708,810 Total Borrowed Funds
214,830 222,679 Shareholders' Equity 91,239 67,369 Book Value Per
Common Share $8.41 $8.20 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, +1-617-478-4000, or fax, +1-617-439-4854 Web
Site: http://www.wainwrightbank.com/
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