ANNOUNCES A STRONG INCREASE OF 30.23 PERCENT 
IN NET INCOME FOR THE FIRST QUARTER OF YEAR 2002
AND BREAKS THE $6.0 BILLION BARRIER IN TOTAL ASSETS

Mayagüez, Puerto Rico, April 10, 2002. W HOLDING COMPANY, INC. (NYSE: WHI), the financial holding company of Westernbank Puerto Rico, reported today a net income of $17,892,186 or $0.35 per share for the first three-month period ended March 31, 2002, as compared with a net income of $13,738,829 or $0.30 per share for the same period in 2001, a strong increase of $4,153,357 or 30.23%.

During the same quarter W HOLDING broke the $6.0 billion barrier closing as of March 31, 2002 with $6.739 billion in total assets, the fifth year in a row that it has attained the next billion-dollar mark as compared to $5.888 billion as of December 31, 2001, an increase of $851.2 million or 14.46%. On a year to year basis, total assets increased $2.066 billion or 44.22% when compared to $4.673 billion as of March 31, 2001.

Return on common stock equity (ROCE) for the first quarter of 2002 was 27.67%. This strong return on equity is over and above that reported by W HOLDING of 27.49% for the year ended December 31, 2001, which was considered very strong under all industry standards.

The Company’s return on assets (ROA) for the first quarter of 2002 was also strong at 1.13% even when compared to 1.23% for the same period in year 2001, particularly in lieu of the significant increase in total assets that the Company experienced during the first quarter of this year.

The strong increase in net income for the three-month period ended March 31, 2002, was mainly related to an increase in net interest income which amounted to $36,895,681 compared to $28,614,812 for the same period in the previous year, an increase of $8,280,869 or 28.94%. Such improvement was in turn attributable to an increase in the average amount of loans and investment securities outstanding during the three-month period when compared to same period in 2001. Such increase was also supported by widening spreads as a consequence of lower cost of funds.

Loans receivable-net amounted to $2.956 billion at March 31, 2002 as compared to $2.844 billion as of December 31, 2001; while at the same time, total deposits increased $144.0 million to $3.378 billion at March 31, 2002.

Other operating income increased from $4,907,812 during the first quarter of 2001 to $5,601,146 for the same period in 2002, an increase of $693,334 or 14.13%. Such increase resulted from increases in fees charged to checking accounts, credit cards fees and other fees from loans and other services.

Provision for possible loan losses amounted to $3.6 million during the three-month period ended March 31, 2002, as compared to $3.0 million during the same period in 2001, while the allowance for possible loan losses increased to $41.3 million as of March 31, 2002. As of the same date, non-performing loans on all of the Bank’s loan portfolios were 0.53% (less than 1%); while the allowance for possible loan losses was 263.60% of total non-performing loans (reserve coverage) or $2.63 for every non-performing dollar at the Company. The Bank’s consumer loan portfolio, one of the most volatile loan portfolios in the industry, being very susceptible to the state of the economy amongst other things, had a total delinquency ratio, including the categories of 60, 90, 120, 150, 180 days and over, of only 1.49%. The Bank’s commercial loan portfolio, had a total delinquency ratio, including the categories of 60, 90, 120, 150, 180 days and over of 0.61% (less than 1%). These excellent ratios evidence the Bank’s already well-known and reputed strong credit quality. Nevertheless, the Bank continues its regular provisions in view of its strong growth in the loan portfolios.

Total operating expenses increased from $14,214,423 for the first quarter of 2001 to $16,753,548 for the same period in 2002, an increase of $2,539,125 or 17.86% as a result of the increase in the volume of operations, new business and the inception in new markets as well as the inherent costs associated with the additional investment in human resources, technology and general infrastructure to sustain and coordinate the Bank’s expansion. The Company continues its strict cost control measures, maintaining operating expenses at adequate levels. Our already outstanding and world class efficiency ratio continues to improve reaching a very strong 39.72% for the three-month period ended March 31, 2002.

Stockholders’ equity increased to $394.2 million as of March 31, 2002 as compared to $388.0 million as of December 31, 2001. The same resulted from the net income generated during the three-month period, partially offset by dividends paid on common and preferred stock during said period.

Commenting on the results of the Company and Westernbank, Frank C. Stipes, Esq., Chairman of the Board, President and Chief Executive Officer, stated: “We must recognize that the first quarter of 2002, was one of continued excellent financial results. The Company had a very strong net earnings growth of 30.23% over the comparable prior year period and achieved higher efficiencies than ever before. We see 2002 as another strong and profitable year and one of continued growth, profitability and diversification for the Company. We expect earnings to range between $81.0 million and $85.0 million, the highest in the Bank’s history to date, subject to and as market conditions may warrant and permit. This translates into a growth in net earnings between 30% and 37% over last year. We are also forecasting to break the $7.0 billion barrier in total assets on or before year end”.

Mr. Stipes further stated: “During this first quarter, W HOLDING common stock experienced a growth of virtually 11% in market value. As of this press release our stock traded at around $18.00 or at the equivalent of 10.5 to 11.0 times the 2002 projected earnings range. If we take into consideration the industry levels which fluctuates around 12.0 to 18.0 times earnings, and being this a strong growth company with a consistent and uninterrupted earnings history since it was founded over 43 years ago, we see great potential for appreciation and positive expectations for this year”.

Mr. Stipes warned however, that “forward-looking statements with respect to future financial condition, results of operations and business of the Company are always subject to various risk and market factors out of management’s control which could cause future results to differ materially from current management expectations or estimates and as such should be understood, and not taken as carved in stone. Such factors include, but are not limited, to the possibility that adverse economic conditions or that an adverse interest rate environment could develop”.

W HOLDING announced also during the first quarter that its Board of Directors approved an increase of 28% in the Company’s dividend payment for year 2002. This increase is the seventh consecutive dividend payment increase in the last eighth years for a cumulative increase of 1,004% during such period. More recently, W HOLDING announced that it finalized the acquisition process for the Hato Rey Tower Building, which will be known as Westernbank World Plaza.

Westernbank Puerto Rico, the wholly-owned subsidiary of W HOLDING COMPANY, INC., is the third largest locally controlled banking entity headquartered in Puerto Rico, in term of total assets operating throughout Puerto Rico through 35 full fledged branches, including 27 in the Southwestern region of Puerto Rico, 3 in the Northeastern region, and 5 at the San Juan Metropolitan area of Puerto Rico.

For further information contact: Frank C. Stipes, Chief Executive Officer or Freddy Maldonado, Chief Financial Officer of the Bank at (787) 834-8000; Internet: westernbank@wbpr.com or URL: http://www.wbpr.com.

W HOLDING COMPANY, INC.
FINANCIAL HIGHLIGHTS
(Dollar in thousands, except share data)

Three-Months Ended