BOSTON, Jan. 21 /PRNewswire-FirstCall/ -- Wainwright Bank &
Trust Company (NASDAQ:WAIN) reported consolidated net income of
$1,779,000 for the fourth quarter of 2009 and basic and diluted
earnings per share of $.19 and $.18, respectively. This compares to
$1,228,000 for the fourth quarter of 2008 and basic and diluted
earnings per share of $.15. Consolidated net income for 2009 was
$6,319,000 with basic earnings per share of $.67 ($.63 per diluted
share). This compares to consolidated net income of $3,346,000 and
basic earnings per share of $.41 ($.40 per diluted share) for 2008.
The increase in net income was primarily the result of an increase
in both net interest income and net security gains which was
partially offset by increases in noninterest expenses and the
provision for loan losses. Net income for the year coupled with the
improvement in the value of the securities portfolio resulted in an
increase in the Bank's book value per common share to $8.80 at
December 31, 2009 compared to $8.00 at December 31, 2008. The book
value of $8.80 per common share at year end reflects the payment of
$569,000 to repurchase the warrants originally issued to the U.S.
Treasury in conjunction with the Capital Purchase Program. The
Bank's weighted average interest-earning assets increased $57
million, or 6%, to $992 million from $935 million for the years
ending December 31, 2009 and 2008, respectively. The average
outstanding loan balances grew $57 million, or 7%, to $827 million
in 2009 when compared to 2008. Average residential real estate
loans outstanding increased $45 million, or 12%, and accounted for
the majority of the increase. The Bank also saw increases in its
average outstanding commercial and commercial real estate loans of
$25 million. In this soft economy, the Bank has reduced its
exposure in the commercial construction segment of its loan
portfolio. Commercial construction loans were $35 million at
December 31, 2009 compared to $64 million at December 31, 2008. Jan
A. Miller, President and CEO stated, "In these challenging
financial markets, it's a pleasure for the Bank to be in a position
to announce the significant increase in 2009 consolidated net
income when compared to the prior year. Wainwright continues to
capture additional market share despite the turmoil in the
financial markets throughout this past year, particularly with our
residential real estate products. During 2009 we have generated
almost $155 million in various residential mortgage products which
enabled our customers to purchase or refinance over 500 homes in
our market. This growth in residential loans reflects Wainwright's
commitment to providing housing financing. In the fourth quarter of
this year, the Bank's community development team provided $7.5
million in financing for BC Sacred Heart LLC, providing needed
affordable rental housing in Lawrence, MA. This project consists of
the historic rehabilitation and redevelopment of two former schools
and a convent on the grounds of the Sacred Heart Church in
Lawrence. The buildings will be redeveloped as 44 affordable rental
units for low income elderly residents 55 years of age and older."
Average deposits increased $38 million, or 6%, to $707 million in
2009 when compared to 2008, $26 million of which was due to an
increase in core deposit products. NOW, DDA, and savings products
increased $22 million, $11 million, and $6 million, respectively.
These increases were partially offset by a decline of $13 million
in money market 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 $31.8 million for the year ended December 31,
2009 compared to $29.1 million for 2008, an increase of $2.7
million, or 9%. The Bank's net interest margin increased to 3.20%
for the year ending December 31, 2009, up from 3.11% for 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 and remain at these
levels. The primary reason for the increase in net interest income
is the decline in the cost of interest-bearing liabilities, which
decreased 71 basis points to 2.22% for the year ending December 31,
2009 compared to 2008, resulting in a decline in interest expense
of $5.2 million. In addition, the increase of $57 million in the
loan portfolio described above contributed to the increase in net
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 $389,000
during 2008. The provision for credit losses was $2.45 million,
$1.80 million, and $700,000 for the years ended December 31, 2009,
2008, and 2007, 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
$10.3 million, $8.7 million, and $7.6 million representing 1.26%,
1.04%, and 1.07% of total loans at December 31, 2009, 2008, and
2007, respectively. The Bank had net charge-offs of $872,000 and
$702,000 in the years ended December 31, 2009 and 2008,
respectively. Nonaccrual loans amounted to $3.5 million, $2.1
million, and $50,000 at December 31, 2009, 2008, and 2007,
respectively. The nonaccrual loans as of December 31, 2009
consisted of twelve residential mortgage relationships totaling
$3.2 million and three commercial relationships totaling $256,000.
The residential nonaccrual loans include two relationships in the
amount of $585,000 that are in the process of foreclosure and four
restructured mortgage loans totaling $936,000. At December 31,
2009, loans 30 days or more past due represented 1.25% of the total
portfolio compared to .88% at December 31, 2008. Total noninterest
income was $7.1 million and $1.7 million for the years ended
December 31, 2009 and 2008, respectively, an increase of $5.4
million. The Bank recorded $1.8 million in net gains on securities
in the year ending December 31, 2009, compared to a loss of $1.2
million in 2008. In addition, other-than-temporary impairment
losses declined $1.5 million, from $1.9 million in 2008 to $390,000
in 2009. As a result of sponsoring a portion of the awarded
allocation of federal New Market Tax Credits, the Bank recorded fee
income in the amount of $447,000 in 2009 that was not present in
2008. The Bank recorded $387,000 and $43,000 in mortgage banking
income during the years ending December 31, 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. Deposit service
charges increased $73,000 to $2.4 million for the year ended
December 31, 2009 when compared to the same period of 2008 as a
result of increased volume for certain business products. The Bank
benefited from the Bank Enterprise award totaling $477,000 in 2009
from the Community Development Financial Institutions fund of the
U.S. Treasury. The award is provided in recognition of the Bank's
lending activities in distressed communities. A comparable award of
$300,000 was received in 2008. These increases were offset by
declines in loan fees, investment management fees, and bank owned
life insurance income of $87,000, $54,000, and $44,000
respectively. Loan fees decreased as a result of the declining
economy and the overall market for commercial and commercial real
estate loans while bank owned life insurance income and investment
management fees declined due to the financial markets. Total
operating expenses were $28.8 million and $25.5 million for the
years ended December 31, 2009 and 2008, respectively, an increase
of $3.3 million, or 13%. Salaries and employee benefits increased
$1,251,000, a result of normal merit increases, increased head
count primarily in our asset management subsidiary and in our new
branch in Ashmont, commission pay related to residential mortgage
production, contract labor, and increased medical costs. The Bank
absorbed a $936,000 increase in regulatory 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. Professional fees increased
$507,000 primarily due to various enterprise risk management costs
and legal fees. Advertising and marketing costs increased $120,000
as a result of promotional costs for various product specials.
Occupancy and equipment costs increased $127,000 due to increased
rent 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) Twelve
months ended December 31, 2009 2008 ---- ---- Net interest income
$31,763 $29,116 Provision for credit losses 2,450 1,800 Noninterest
income 7,085 1,679 Other noninterest expense 28,788 25,522 Income
before taxes 7,610 3,473 Income tax provision 1,115 129 Net income
6,495 3,344 Net income (loss) attributable to noncontrolling
interest 176 (2) Net income attributable to Wainwright Bank &
Trust 6,319 3,346 Net income available to common shareholders 4,891
3,007 Earnings per share: Basic $0.67 $0.41 Diluted $0.63 $0.40
Return on average shareholders' equity 7.06 % 4.85 % Return on
average assets 0.61 % 0.34 % Net interest yield 3.20 % 3.11 %
Weighted average common shares outstanding: Basic 7,299,429
7,317,485 Diluted 8,238,009 8,287,572 at December 31, 2008 and 2007
Total Assets $1,014,476 $1,055,288 Total Loans 819,955 841,786
Total Investments 118,492 126,628 Total Deposits 718,055 717,134
Shareholders' Equity 72,455 87,439 Book Value Per Common Share
$8.80 $8.00 FINANCIAL HIGHLIGHTS: (dollars in thousands) Three
months ended December 31, 2009 2008 ---- ---- Net interest income
$8,268 $7,810 Provision for credit losses 500 400 Noninterest
income 1,888 424 Noninterest expense 7,383 6,646 Income before
taxes 2,273 1,188 Income tax (benefit) provision 495 (40) Net
income 1,778 1,228 Net income (loss) attributable to noncontrolling
interest (1) - Net income attributable to Wainwright Bank &
Trust 1,779 1,228 Net income available to common shareholders 1,421
1,116 Earnings per share: Basic $0.19 $0.15 Diluted $0.18 $0.15
Return on average shareholders' equity 8.16 % 7.21 % Return on
average assets 0.69 % 0.48 % Net interest yield 3.34 % 3.20 %
Weighted average common shares outstanding: Basic 7,306,584
7,250,653 Diluted 8,241,916 8,202,134 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, +1-617-439-4854 Web Site:
http://www.wainwrightbank.com/
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