W Holding Company, Inc., the Financial Holding Company of Westernbank Puerto Rico, Reports an Increase in Net Income of 20.87% f

W Holding Company, Inc., the Financial Holding Company of
Westernbank Puerto Rico, Reports an Increase in Net Income of 20.87% for the
Fourth Quarter and 51.67% for the Year Ended December 31, 2004 


MAYAGUEZ, Puerto Rico, Jan. 24  /PRNewswire-FirstCall/ -- W Holding Company,
Inc. (NYSE: "WHI"), the financial holding company of Westernbank Puerto Rico,
reported today its results for the fourth quarter and year ended December 31,
2004.

W Holding reported a net income of $46.1 million or $0.24 earnings per basic
common share ($0.23 on a diluted basis) for the quarter ended December 31,
2004, as compared to a net income of $38.1 million or $0.19 earnings per basic
and diluted common share for the same period in 2003, after giving effect to
the three-for-two (3x2) stock split and a two percent (2%) stock dividend
declared on December 6, 2004, and December 13, 2004, respectively, and
distributed both on January 10, 2005. This is an increase of $8.0 million or
20.87% over the prior year quarter.

For the year ended December 31, 2004, W Holding reported a net income of $171.9
million or $0.89 earnings per basic common share ($0.86 on a diluted basis), as
compared to a net income of $113.3 million or $0.57 earnings per basic common
share ($0.55 on a diluted basis) (as adjusted) for the same period in 2003, an
increase of $58.6 million or 51.67%. The $113.3 million net income reported for
the year ended December 31, 2003, was affected by a loss of $22.7 million
($17.0 million net of tax) on valuation and disposition of the Company's
investment in CBO's and CLO's, as previously reported.

The return on assets (ROA) and the return on common stockholders' equity (ROCE)
for the quarter ended December 31, 2004, were 1.33% and 28.31%, respectively,
as compared to 1.37% and 29.44% reported for the same quarter in 2003. For the
year ended December 31, 2004, the ROA and the ROCE were 1.33% and 28.55%,
respectively, compared to 1.15% and 22.79%, for the same period in prior year.
The ratios for the comparable year ended December 31, 2003, were affected by
the loss referred to in the previous paragraph.

At December 31, 2004, driven by strong increases in W Holding activities, total
assets ended at $14.3 billion, surpassing our year end goal of reaching $14.0
billion in total assets. Total assets grew $2.8 billion or 24.46%, from $11.5
billion at December 31, 2003. Loans receivable-net, grew by $1.3 billion or
26.86%, from $4.7 billion at December 31, 2003, as a result of the Company's
continued strategy of growing its loan portfolio through commercial real
estate, construction and land acquisition, asset-based and other commercial
loans. The investment portfolio, excluding short-term money market instruments,
grew by $1.2 billion or 19.91%, from $5.8 billion at December 31, 2003, to $6.9
billion at December 31, 2004.

Stockholders' equity increased to $1.1 billion as of December 31, 2004,
compared to $828.5 million as of December 31, 2003. Such increase resulted
principally from the combination of the issuance of 2,675,500 shares of the
Company's Series H Preferred Stocks completed on December 21, 2004, providing a
net capital infusion of $129.3 million, plus the net income of $171.9 million
generated during the year ended December 31, 2004, partially offset by
dividends paid during the year of $23.5 million and $27.2 million on our common
and preferred shares, respectively, and a decrease of $721,000 in other
comprehensive loss, net of tax, on the mark to market of our portfolio of
investment securities available for sale at December 31, 2004, when compared to
December 31, 2003. The period-end number of common shares outstanding increased
from 106,290,294 as of December 31, 2003, to 163,918,835 as of December 31,
2004, as a result of the issuance of 56,781,960 common shares for the stock
split and stock dividend declared in December 2004 and distriuted both on
January 10, 2005, the conversion of 276,994 shares of the Company's convertible
preferred stock series A, into 631,831 shares of the Company's common stock,
and the issuance of 214,750 common shares from the exercise of stock options.

Net Interest Income

Net interest income for the fourth quarter ended December 31, 2004, was $76.7
million, an increase of $5.4 million or 7.63%, from $71.3 million for the same
period of last year. This increase mainly resulted from the net
interest-earning assets of $786.1 million, which contributed a $15.1 million
positive volume variance, which was partially offset by a $9.6 million negative
rate variance. Average interest-earning assets for the fourth quarter of 2004
increased by $2.8 billion or 25.89%, compared to the same quarter in previous
year, mainly driven by increases in the average loan portfolio of $1.2 billion,
particularly in the commercial real estate, construction and land acquisition,
asset-based and other commercial loan portfolios, and in the average investment
portfolio, excluding short-term money market instruments, which increased also
by $1.2 billion. The increase in the investment portfolio, excluding short-term
money market instruments, was primarily in tax exempt securities, such as U.S.
Government and agencies obligations. For the year ended December 31, 2004, net
interest income increased from $239.3 million in 2003, to $299.5 million, an
increase of $60.2 million or 25.17%. This increase mainly resulted from the net
interest-earning assets of $734.1 million, which contributed a $66.4 million
positive volume variance, which was partially offset by a $6.1 million negative
rate variance. Average interest-earning assets increased by $3.1 billion or
33.06%. This increase in average interest-earning assets was driven by
increases in the average loan portfolio of $1.1 billion, mainly in the
commercial real estate, construction and land acquisition, asset-based and
other commercial loan portfolios, and in the average investment portfolio,
excluding short-term money market instruments, of $1.8 billion, primarily in
tax exempt securities, such as U.S. Government and agencies obligations. The
average yield earned in interest- earning assets decreased from 4.87% to 4.85%
and from 4.92% to 4.74%, for the quarter and year ended December 31, 2004,
respectively, when compared to prior year periods. The decrease in the average
yield was mainly due to a lower average yield earned on the loans portfolio,
due to a higher volume of commercial real estate loans and other commercial
loans with floating rates. The decrease in the average yield earned on the
loans portfolio was partially offset by higher reinvestment rates on matured
and called securities and higher yields earned in money market instruments.
Reinvestment rates for new securities were higher when compared to the previous
periods, except for the last quarter of 2004, as the U.S. Treasury yield curve
initially steepened ahead of the reaction by the Federal Reserve, which started
to increase interest rates in the second week of August 2004. As a result of
this lagging factor, yields earned on floating rate loans were not adjusted as
fast as on investment securities since the Prime Rate (an index used by the
Bank to re- price most of its loans) was raised at a slower pace following the
Federal Reserve action. More recently, during last quarter of 2004,
reinvestment rates decreased, primarily due to the flattening of the U.S.
Treasury yield curve.

Our overall cost of rates paid increased 35 basis points, from 2.39% to 2.74%,
for the quarter ended December 31, 2004, when compared to the prior year
quarter. The increase on the overall cost of rates paid was primarily due to
increases of 40 and 33 basis points on the average interest rate paid on
deposits and on federal funds purchased and repurchase agreements,
respectively. Average interest paid on deposits increased from 2.25% for the
quarter ended December 31, 2003, to 2.65% for the same period in 2004, while
average interest rate paid on federal funds purchased and repurchase agreements
increased from 2.48% for the quarter ended December 31, 2003, to 2.81% for the
same period in 2004. The increase in the overall cost of rates paid was
partially offset by lower cost of rates in advances from the Federal Home Loan
Bank, which decreased 44 basis points from 4.11% for the quarter ended December
31, 2003, to 3.67% for the same period in 2004. On a year to year comparison,
the overall cost of rates paid decreased 5 basis points from 2.53% for the year
ended December 31, 2003, to 2.48% for the year ended December 31, 2004. Average
interest rates paid on federal funds purchased and repurchase agreements
decreased 12 basis points from 2.61% for the year ended December 31, 2003, to
2.49% for the year ended December 31, 2004, while the average interest rate
paid on advances from the Federal Home Loan Bank decreased 38 basis points from
4.38% for the year ended December 31, 2003, to 4.00% for the year ended
December 31, 2004.  The decrease of 5 basis points on a year to year comparison
is mainly due to certain liabilities that became due during the current year
that were of longer terms and higher costs. These liabilities were part of the
strategy in previous periods of increasing the maturities of a portion of the
Bank's liabilities in anticipation of rising interest rates. As explained in
the preceding paragraph, cost of rates for deposits adjusted immediately as the
LIBOR rate (an index used by the Bank to re-price its deposits) increased by
market conditions following the change in the U.S. Treasury yield curve. The
strong growth in average interest-earning assets between both periods was in
part offset by increases in the average interest-bearing liabilities of $2.7
billion or 26.84%, and $2.9 billion or 33.49%, for the quarter and year ended
December 31, 2004, respectively. Deposits grew on average by $1.2 billion and
$1.1 billion, during the quarter and the year ended December 31, 2004, while
other borrowings (federal funds purchased, repurchase agreements, advances from
FHLB and other borrowings) on average rose by $1.5 billion and $1.8 billion for
the same periods, respectively.

Net Interest Margin

Our net interest margin decreased 38 basis points during the fourth quarter of
2004, to 2.26% from 2.64% in the fourth quarter of 2003. On a tax equivalent
basis our net interest margin also decreased 30 basis points, from 2.96% to
2.66% for the same period. The decrease in our net interest margin obeyed to a
decrease in our loan portfolio average yield, coupled with an increase in the
cost of rates for deposits and other borrowings, as previously explained. We
attribute this contraction primarily to the flattening of the yield curve,
whereby the 10-year U.S. Treasury yield remained relatively flat, while the
short end of the curve increased. On a linked quarterly comparison, our net
interest margin decreased by 14 basis points, from 2.40% in the third quarter
of 2004. On a tax equivalent basis, our net interest margin also decreased 18
basis points, from 2.84% in the third quarter of 2004. For the year ended
December 31, 2004, our net interest margin decreased 15 basis points, and on a
tax equivalent basis, decreased by 6 basis point, when compared to the year
ended December 31, 2003. The decrease in the net interest margin was mainly
attributed to a decrease in our loan portfolio yield and an increase in the
rate paid in our deposits. This decrease was partially offset by an increase in
the investment securities yield and a decrease in the rate paid in our
borrowings, as previously explained.

Under a flat interest rate scenario for the next twelve month period, based on
our asset and liability composition as of December 31, 2004, we estimate our
net interest margin will be approximately 2.26% during said period. Assuming an
instantaneous 100 basis points decrease in the fed funds rate, we estimate our
net interest margin will fluctuate within a range of 2.11% to 2.24% during said
period. Assuming a 100 basis points increase in the fed funds rate, we estimate
our net interest margin will fluctuate within a range of 1.98% to 2.26%.
Furthermore, a 200 basis points increase in the fed funds rate will cause our
net interest margin to fluctuate between a range of 1.74% to 2.30%.
Accordingly, the repricing of the Bank's deposits and other borrowings coupled
to the flattening of the yield curve could contract the net interest margin for
year 2005. The lower and higher values of such range meaning the lowest and
highest net interest margin for any given quarter within the said twelve month
period. These ranges are management's estimates based on instantaneous rate
shocks of 100 and 200 basis points and does not consider any asset/liability
management strategy it could undertake given such interest rate changes.

Attached as Exhibits IIIa, IIIb and IIIc are supplemental unaudited data
schedules providing additional information on the net interest margin including
average balances and average rates for both interest-earning assets and
interest-bearing liabilities, as well as changes in volumes and rates for the
periods presented.

Noninterest Income

Noninterest income increased $1.8 million for the three month period ended
December 31, 2004, when compared to the same period in 2003. This increase was
mainly the result of an increase of $1.7 million on the net gain on sales and
valuation of loans, securities and other assets. The increase on the net gain
on sales and valuation of loans, securities and other assets was primarily due
to realized gains of $525,000 on investment securities and $1.2 million on
loans securitized or sold in the secondary market.

For the year ended December 31, 2004, noninterest income increased $24.6
million, when compared to the same period in 2003. The increase was mainly due
to the net loss of $22.7 million recorded during the same period in 2003,
relating to our investment in CBO's and CLO's, and included in loss on sales
and valuation of loans, securities and other assets, as previously reported.

Noninterest Expenses

Total noninterest expenses increased $1.9 million or 8.11% for the three- month
period ended December 31, 2004, and $15.3 million or 18.04% for the year ended
December 31, 2004, when compared to the corresponding periods in 2003. Salaries
and employees' benefits, which is the largest component of total noninterest
expenses, increased $1.4 million or 15.93% for the fourth quarter of year 2004,
and $4.5 million or 13.23% for the year ended December 31, 2004, as compared to
the corresponding periods in 2003. Such increases are attributed to the
continued expansion of the Company, including increases in personnel, normal
salary increases and related employees' benefits, principally attributed to our
continued expansion in the San Juan Metropolitan area. At December 31, 2004,
the Company had 1,252 full-time employees, including its executive officers, an
increase of 160 employees or 14.65%, since December 31, 2003.

Advertising expense decreased by $102,000 or 5.95% for the three months ended
December 31, 2004, and increased $3.8 million or 56.88% for the year ended
December 31, 2004, when compared to the same periods in 2003. The increase for
the full year is principally due to various radio, newspaper and television
campaigns promoting Westernbank's institutional image and positioning the
Company for its strategy in the San Juan Metropolitan area, as well as 2004
promotional campaigns for several Bank's products. The decrease during the
three months ended December 31, 2004, is attributed to fewer promotional
efforts during the election period.

Noninterest expenses, other than salaries and employees' benefits, and
advertising discussed above, increased $610,000 or 4.61% for the fourth quarter
of 2004, and $7.0 million or 15.85% for the year ended December 31, 2004,
resulting primarily from costs associated with the Company's growth and
expansion.

Despite such increases in noninterest expenses, the Company maintained the same
at adequate levels, and achieved an efficiency ratio of 30.90% for the fourth
quarter of year 2004, and 30.51% for the year ended December 31, 2004.

Provision for Income Taxes

The current provision for Puerto Rico income taxes for the three month and the
year ended December 31, 2004, amounted to $8.3 million and $28.2 million,
compared to $9.0 million and $29.3 million in the same periods of 2003,
respectively. The increase in the income before the provision for income taxes
includes a significant increase in the Company's exempt interest income derived
from the investment in tax exempt securities, primarily in U.S. Government and
Agencies Obligations, as previously explained. The deferred income tax credit
decreased in 2004 when compared to 2003, since in 2003 the Company recorded a
deferred income tax asset related to a capital loss carryforward on the
liquidation of the Company's CBO's and CLO's portfolio which is available to
offset capital gains in future years. The change in the deferred provision for
the quarter ended December 31, 2004, when compared to the prior year quarter,
is attributable to other timing differences in the recognition of certain items
for tax and books, principally changes in the allowance for loan losses.
Therefore, the Company's effective tax rate is substantially below the
statutory rate.

Asset Quality

W Holding's asset quality continues to be strong, in spite of the Company's
continued aggressive loan portfolio growth, as measured by our reserves to
total loans, non-performing loans as a percentage of total loans and net
charge-offs to average loans. W Holding is essentially a secured lender having
83% of its loan portfolio as of December 31, 2004, secured by real estate. Our
combined delinquency on all portfolios for the categories of 60 days and over
continues to be below our benchmark of 1% for both periods, being 0.57% at
December 31, 2004, and 0.74% at December 31, 2003, an improvement of 17 basis
points from the prior year. The delinquency ratio on the commercial loan
portfolio for the categories of 60 days and over, also improved 29 basis points
to 0.55% (less than 1%), when compared to 0.84% reported for the year ago
period, our lowest delinquency ratio since year 2000. The delinquency ratio on
the consumer loan portfolio, including the Expresso of Westernbank loan
portfolio, for the categories of 60 days and over increased 14 basis points, to
1.03% at December 31, 2004, when compared to 0.89% for the comparable period
last year. Such increase was mainly due to regular consumer loans past due over
90 days which are collateralized by real estate properties.

The provision for possible loan losses amounted to $6.6 million for the quarter
ended December 31, 2004, slightly up from $6.3 million for the same period in
the previous year, an increase of $220,000 or 3.47%. Even though the loan
portfolio grew between periods, this slight increase was attributed to lower
net charge offs during the 2004 fourth quarter. For the year ended December 31,
2004, the provision for possible loan losses amounted to $36.7 million, up from
$27.0 million for the year ended December 31, 2003, an increase of $9.6 million
or 35.65% The allowance for possible loan losses reached $80.1 million as of
December 31, 2004. The increase in the provision for loan losses is
attributable to the overall growth in the Company's loan portfolio,
particularly those of its commercial real estate loans portfolio, the loan
portfolio of its asset-based lending division, Westernbank Business Credit, and
the provision associated with the loan portfolio of the Expresso of
Westernbank. The commercial real estate loan portfolio grew to $3.2 billion at
December 31, 2004, an increase of $893.2 million or 39.50%, when compared to
December 31, 2003. Westernbank Business Credit loan portfolio grew to $831.1
million at December 31, 2004, an increase of $192.5 million or 30.15%, when
compared to December 31, 2003. The Expresso of Westernbank loan portfolio
decreased from $150.4 million at December 31, 2003, to $144.0 million at
December 31, 2004, a decrease of $6.5 million or 4.30%. The decrease in the
Expresso of Westernbank loan portfolio was mainly due to management's strategy
of stabilizing charge-offs as the division portfolio matures and average yields
continue to increase. The average yields of Westernbank Business Credit and the
Expresso of Westernbank loan portfolios were 6.21% and 20.34%, respectively,
for the year ended December 31, 2004.

Non-performing loans stand at $34.3 million or 0.57% (less than 1%) of
Westernbank's loan portfolio at December 31, 2004, an improvement of 9 basis
points when compared to 0.66% reported at December 31, 2003. In absolute
amounts, non-performing loans increased by $3.0 million, from $31.2 million as
of December 31, 2003. The increase in non-performing loans primarily comes from
the Company's commercial and regular consumer loan portfolios. Non- performing
loans on the commercial loan portfolio increased by $1.3 million, when compared
to December 31, 2003. This increase is mostly attributed to one commercial loan
with a principal balance of $1.5 million, collateralized by real estate. At
December 31, 2004, this loan did not require a valuation allowance. At December
31, 2004, the allowance for possible loan losses was 233.64% of total
non-performing loans (reserve coverage), compared to the 197.17% reported at
December 31, 2003. Moreover, of the total allowance of $80.1 million, $8.9
million is for our specific allowance and the remaining $71.2 million is for
our general allowance.

Net loans charge-off in the fourth quarter of 2004 were $3.1 million or 0.21%
(annualized) to average loans, compared to $3.9 million or 0.33% to average
loans for the same period in 2003, an decrease of $792,000. For the year ended
December 31, 2004, net charge-offs amounted to $18.2 million or 0.34% to
average loans, an increase of $5.7 million, when compared to $12.6 million or
0.29% to average loans in 2003. The decrease in net loans charge-off for the
fourth quarter of 2004 when compared to the same quarter in 2003, is
principally attributed to lower net charge-offs of consumer loans. The increase
for the full year is primarily due to loans charged-off in the ordinary course
of business, mainly in our consumer loan portfolio. The increase in consumer
loans charged-off for the year ended December 31, 2004, was principally due to
loans charged-off by the Expresso of Westernbank division, which amounted to
$12.4 million for the year ended December 31, 2004, when compared to $7.9
million for the year ago period. On a linked quarter comparison, loans
charged-off by the Expresso of Westernbank division continued its decreasing
trend from $3.2 million for the third quarter of 2004, to $2.5 million for the
fourth quarter of  2004.  The delinquency ratio of the Expresso of Westernbank
division portfolio at December 31, 2004, was 1.88% for the categories of 60
days and over. This ratio is slightly above management's estimate and
accordingly, management is emphasizing an increase in the overall yield charged
on such loans, continuously revising its underwriting policies, as well as
increasing the level of collateralized loans, to compensate for such higher
delinquency. Efforts in this regard have resulted in a decreasing trend in net
charge offs during the last three quarters as measures begins to yield positive
results. Also, the loan portfolio of Expresso of Westernbank collateralized by
real estate at December 31, 2004, accounts for 12% of the outstanding balance,
attaining our goal of having at least 10% of the Expresso loan portfolio
collateralized by real estate.

Total Loans, Investments and Deposits

Loans receivable-net, grew $1.3 billion or 26.86%, to $5.9 billion at December
31, 2004, compared to $4.7 billion at December 31, 2003. This increase reflects
the Company's emphasis on continued growth in its loan portfolio through
commercial real estate, other commercial asset-based, consumer and construction
lending. As a result, the portfolio of real estate loans secured by first
mortgages, increased from $3.4 billion as of December 31, 2003, to $4.4 billion
as of December 31, 2004, up by $1.0 billion or 30.60%. Commercial real estate
loans secured by first mortgages increased from $2.3 billion as of December 31,
2003, to $3.2 billion as of December 31, 2004, an increase of $893.2 million or
39.50%. Other loans portfolio, including commercial loans not collateralized by
real estate, consumer loans (including the Expresso of Westernbank loans
portfolio), loans on deposits and credit cards, increased from $1.4 billion as
of December 31, 2003, to $1.6 billion as of December 31, 2004, up by $248.8
million or 17.95%. The unsecured portion of the Expresso of Westernbank loan
portfolio remained relatively unchanged increasing by $3.1 million or 2.40%,
from $128.9 million at December 31, 2003, to $132.0 million at December 31,
2004, as management has sought to stabilize charge offs as the portfolio
matures and average yields continue to increase. Attached as Exhibit IV is a
supplemental unaudited data schedule providing additional information on W
Holding loan portfolio.

W Holding investment portfolio, excluding short-term money market instruments,
stands at $6.9 billion at December 31, 2004, growing $1.2 billion or 19.91% in
comparison to December 31, 2003. Such growth is focused principally on
tax-exempt securities guaranteed by the United States Government and agencies,
accounting for 98.75% of our investment portfolio as of December 31, 2004. The
investment portfolio at December 31, 2004, had an average contractual maturity
of 53 months. The Company's interest rate risk model, takes into consideration
the callable feature of certain investment securities. Taking into
consideration the callable features of these securities, the investment
portfolio as of December 31, 2004, had a remaining average maturity of 10
months.  However, no assurance can be given that such levels will be maintained
in future periods.

As of December 31, 2004, total deposits reached $6.2 billion, from $5.4 billion
at December 31, 2003, representing an increase of $845.7 million or 15.70%,
while federal funds purchased and repurchase agreements increased to $6.7
billion, from $5.0 billion at December 31, 2003, an increase of $1.6 billion or
32.45%, mainly to fund W Holding strong loans portfolio growth of 26.86% and
investments growth, excluding short-term money market instruments, of 19.91%.

Commenting on the financial results of the Company, and more specifically those
of its main subsidiary, Westernbank, Mr. Frank C. Stipes, Esq., Chairman of the
Board, President and Chief Executive Officer of both companies, stated, "We are
very pleased with our results for 2004 with an excellent combination of
continued growth coupled with very strong asset quality. We were able to
surpass our goal of $14 billion in total assets at December 31, 2004, achieved
our goal of reaching $170 million in net income for the year and above all, we
were able to produce such outstanding asset quality with an overall delinquency
ratio of 0.57%. Furthermore, our commercial loan portfolio delinquency ratio
was an outstanding 0.55% down from the year ago ratio of 0.84% and our lowest
delinquency ratio since year 2000. Our consumer loan delinquency continued at
an outstanding 1.03% even including our Expresso loans. These numbers are
definitely the results of our dedicated, talented and very hard working
employees' group and further sustain our view that we can grow at a fast pace
while at the same time producing quality growth above our peers both in Puerto
Rico and abroad. We have said it before and we are very proud to produce such
outstanding results."

Mr. Stipes continued saying: "We believe Westernbank is in a position to
continue gaining market share in Puerto Rico as it builds out its branch
network in the San Juan Metroplex and east coast regions. These plans include
the opening in February 2005 of a new mega-branch in Humacao, where it has no
presence, and likewise another new mega-branch in the Condado area within the
next 120 to 150 days. Concurrently, we will be building five more mega-
branches in Hato Rey, Isla Verde, Cupey, Rexville and in Ponce. As we have
recently expressed, we also intend to expand and extend our success story into
the continental United States in the next 18 to 30 months, where we will be
soliciting authorization to conduct business specifically in the states of New
York, Massachusetts, Georgia and Florida."

Referring to the Company's continued success, Mr. Freddy Maldonado, Chief
Financial Officer and Vice President of Finance and Investment of the Company,
indicated: "Our Company has had the largest organic loan market share gain in
Puerto Rico over the past five years. Year 2004 was not the exception and we
intend to keep gaining market share over the coming years. Our consistent level
of growth, evidenced by the results reported herewith, is further confirmed by
the most recent statistics provided by the Office of the Commissioner of
Financial Institutions of Puerto Rico.  Westernbank is by far the largest real
estate commercial lender in Puerto Rico with an overall market dominance of
38.84%.

In regard to overall lending activities, we are the dominant market leader in
what is called the NORTHWESTERN region of Puerto Rico, which includes the
cities of Mayaguez and Aguadilla, among others, holding 59% of the market; and
in the SOUTHWESTERN region, which includes the cities of Ponce and Yauco, among
others, holding 51% of the market. In the San Juan metroplex market, which is
unquestionably Puerto Rico's richest and most populated, we hold a market share
of 8.20%, with enormous growth potential".

This press release may contain some information that constitutes "forward-
looking statements." Such information can be identified by the use of forward-
looking terminology such as "may," "will," "should," "expect," "anticipate,"
"estimate," "intend," "continue," or "believe" or the negatives or other
variations of these terms or comparable terminology. Forward-looking statements
with respect to future financial conditions, results of operations and
businesses 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. Such factors include particularly, but are not limited to, the
possibility of prolonged adverse economic conditions or that an adverse
interest rate environment could develop.

Westernbank Puerto Rico, a wholly owned subsidiary of W Holding Company, Inc.,
is the second largest commercial bank in Puerto Rico, based on total assets,
operating through 52 full-fledged branches, including 33 in the Southwestern
region of Puerto Rico, 7 in the Northeastern region, and 12 in the San Juan
Metropolitan area of Puerto Rico, and a fully functional banking site on the
Internet.  W Holding Company, Inc. also owns Westernbank Insurance Corp., a
general insurance agent placing property, casualty, life and disability
insurance, whose results of operations and financial condition are reported on
a consolidated basis.

Messrs. Frank C. Stipes, Chief Executive Officer, and Freddy Maldonado, Chief
Financial Officer, are available to answer appropriate questions regarding this
press release. You may contact any of the above officers at [phone]; or
e-mail , or the web http://www.w-holding.com/.

                    W HOLDING COMPANY, INC. EXHIBIT I
                           FINANCIAL HIGHLIGHTS
                               (UNAUDITED)

                          Three Months Ended
                             December 31,       Year Ended December 31,
                          2004         2003         2004       2003

                          (Dollars in thousands, except share data)

  Income Statement and
   Share Data

  Interest income:
   Loans, including
    loan fees           $89,454      $72,626      $322,164   $275,848
   Investment
    securities           58,672       44,946       212,213    134,273
   Mortgage and
    asset-backed
    securities            8,829       11,003        37,489     40,140
   Money market
    instruments           7,453        3,028        19,510     11,633
     Total interest
      income            164,408      131,603       591,376    461,894

  Interest expense:
   Deposits              41,578       28,769       143,860    114,755
   Federal funds
    purchased and
     repurchase
     agreements          44,164       30,040       141,414    101,652
   Advances from
    FHLB                  1,947        1,513         6,568      6,037
   Other borrowings          --           --            --        142
     Total interest
      expense            87,689       60,322       291,842    222,586
     Net interest
      income             76,719       71,281       299,534    239,308
  Provision for loan
   losses                 6,550        6,330        36,691     27,048
  Net interest income
   after provision
    for loan losses      70,169       64,951       262,843    212,260

  Noninterest income:
   Service charges
    on deposit
    accounts              1,996        1,769         7,969      7,053
   Other fees and
    commissions           5,209        5,465        20,642     20,778
   Loss on
    derivative
    instruments            (20)         (82)            (7)      (236)
   Net gain (loss)
   on sales and
    valuation of
    loans,
    securities,
    and other
    assets               1,762           35          2,629    (20,949)
      Total
      noninterest
      income             8,947        7,187         31,233      6,646
      Total net
      interest
      income and
      noninterest
      income            79,116       72,138        294,076    218,906
  Noninterest
   expenses:
   Salaries and
    employees'
    benefits            10,470        9,032         38,317     33,840
   Equipment             2,464        2,330          9,445      9,044
   Deposit
    insurance
    premium and
    supervisory
    examination            795          665          2,907      2,392
   Occupancy             1,812        1,680          6,694      6,603
   Advertising           1,613        1,715         10,508      6,698
   Printing,
    postage,
    stationery, and
    supplies               716          727          3,206      3,253
   Telephone               551          572          2,315      2,279
   Municipal taxes       1,078          900          3,953      3,600
   Other                 6,431        6,363         22,780     17,112
     Total
     noninterest
     expenses           25,930       23,984        100,125     84,821
  Income before
   provision for
   income taxes         53,186       48,154        193,951    134,085
  Provision for income
   taxes:
    Current              8,321        8,995         28,182     29,346
    Deferred            (1,240)       1,016         (6,096)    (8,575)
      Total
      provision
      for income
      taxes              7,081       10,011         22,086     20,771
  Net income           $46,105      $38,143       $171,865   $113,314

  Net income
   attributable to
   common
   stockholders        $39,198      $31,318       $144,707    $91,721
  Basic earnings per
   common share          $0.24        $0.19(1)       $0.89      $0.57(1)
  Diluted earnings per
   common share          $0.23        $0.19(1)       $0.86      $0.55(1)

  Cash dividends
   declared per common
   share (2)             $0.04(1)     $0.03(1)       $0.14(1)   $0.11(1)

  Period end number of
   common
   shares
   outstanding     163,918,835  162,624,150(1) 163,918,835 162,624,150(1)
  Weighted
   average
   number of
   common shares
   outstanding     163,743,684  161,821,918(1) 163,347,939 160,734,184(1)
  Weighted average
   number of
   common
   shares
   outstanding
   on a diluted
   basis           171,035,485  169,905,083(1) 170,443,393 165,329,870(1)
  Cash dividends
   declared on:
    Common stock        $5,891       $4,727        $23,502     $18,322
    Preferred
    stock               $6,907       $6,825        $27,158     $21,593



(1) Adjusted to reflect the three-for-two stock split and a 2% stock dividend
on our common stock declared on December 6, 2004 and December 13, 2004,
respectively, and distributed both on January 10, 2005.

  (2) Cash dividend amounts in the table are rounded.

                    W HOLDING COMPANY, INC. EXHIBIT II
                           FINANCIAL HIGHLIGHTS
                               (UNAUDITED)

                                         Dec. 31,   Dec. 31,
  Balance Sheet Data                      2004        2003
                                          (In thousands)
  At Period End
   Cash and due from banks              $77,752      $92,811
  Money market instruments:
   Federal funds sold and resell
    agreements                        1,017,303      649,852
   Interest-bearing deposits in
    banks                                49,476       37,767
   Investment securities available
    for sale, at fair value               7,881       55,080
   Investment securities held to
    maturity, at amortized cost       6,921,379    5,723,710
   FHLB stock, at cost                   52,195       39,750
   Mortgage loans held for sale, at
    lower of cost or fair value           1,633        2,555
   Loans - net                        5,941,233    4,683,118
   Accrued interest receivable           88,285       75,567
   Premises and equipment, net          110,051      103,370
   Deferred income taxes, net            31,027       24,910
   Other assets                          38,447       30,950
  Total Assets                      $14,336,662  $11,519,440

   Deposits:
      Noninterest-bearing              $249,368     $192,760
      Interest-bearing                5,981,843    5,192,716

         Total deposits               6,231,211    5,385,476
   Federal funds purchased and
    repurchase agreements             6,683,527    5,046,045
   Advances from FHLB                   211,000      146,000
   Mortgage note                         36,858       37,234
   Accrued expenses and other
    liabilities                          92,387       76,176
  Total Liabilities                  13,254,983   10,690,931
   Stockholders' equity               1,081,679      828,509
  Total Liabilities and Stockholders'
   Equity                           $14,336,662  $11,519,440



                      Quarter to Date Averages (1) Year to Date Averages (1)
                           Dec. 31,      Dec. 31,   Dec. 31,     Dec. 31,
  Average Balances           2004         2003        2004         2003
                                            (In thousands)

   Cash and due from
    banks                  $83,623      $90,803      $85,281     $84,446
   Federal funds sold
    and resell
    agreements             848,691      556,565      833,577     554,500
   Interest-bearing
    deposits in banks       50,638       49,585       43,621      27,613
   Trading securities           --        1,317           --          --
   Investment
    securities
    available for sale      10,053       68,461       31,481     107,983
   Investment
    securities held to
    maturity             6,767,229    5,512,320    6,322,545   4,612,384
   FHLB stock               54,650       39,750       45,973      41,536
   Due from brokers              --       8,291           --          --
   Mortgage loans held
    for sale                 1,673        4,130        2,094       5,000
   Loans - net           5,829,082    4,608,498    5,312,175   4,218,738
   Accrued interest
    receivable              83,363       67,407       81,926      61,110
   Premises and
    equipment, net         109,196      102,839      106,711      99,789
   Deferred income
    taxes, net              30,407       25,423       27,968      20,618
   Other assets             39,155       30,863       34,699      28,542
  Total Assets         $13,907,760  $11,166,252  $12,928,051  $9,862,259

   Deposits:
    Noninterest-
     bearing              $245,104     $205,274     $221,064    $174,451
    Interest-bearing     5,986,814    4,987,887    5,587,280   4,667,659
    Total deposits       6,231,918    5,193,161    5,808,344   4,842,110
    Federal funds
     purchased and
     repurchase
     agreements          6,347,631    4,900,791    5,864,786   4,071,693
    Advances from FHLB     211,000      146,000      178,500     133,000
    Mortgage note           36,909       37,285       37,046      37,528
    Securities
     purchased but not
     yet received            2,510           --           --          --
    Accrued expenses
     and other
     liabilities            77,558       75,886       84,281      71,299
  Total Liabilities     12,907,526   10,353,123   11,972,957   9,155,630
    Stockholders'
     equity              1,000,234      813,129      955,094     706,629
  Total Liabilities and
   Stockholders'
   Equity              $13,907,760  $11,166,252  $12,928,051  $9,862,259



(1) Average balances have been computed using beginning and period-end
balances.

                  W HOLDING COMPANY, INC. EXHIBIT III a
                       YIELDS EARNED AND RATES PAID
                     THREE MONTHS ENDED DECEMBER 31,
                               (UNAUDITED)

                                                      2004
                                                                 Annualized
                                                         Average   Average
                                           Interest     Balance(1) Yield/
                                                                    Rate

                                              (Dollars in thousands)
  Normal spread:
    Interest-earning assets:
      Loans, including loan fees (2)       $89,454     $5,859,661    6.07%
      Investment securities (3)             58,672      5,889,373    3.96%
      Mortgage and asset-
          backed securities (3)              8,829        864,226    4.06%
      Money market instruments               7,453        883,192    3.36%
    Total                                  164,408     13,496,452    4.85%

    Interest-bearing liabilities:
      Deposits                              41,578      6,241,345    2.65%
      Federal funds purchased and
         repurchase agreements              44,164      6,258,052    2.81%
      Advances from FHLB                     1,947        211,000    3.67%
    Total                                   87,689     12,710,397    2.74%

    Net interest income                    $76,719
    Interest rate spread                                             2.11%
    Net interest-earning assets                          $786,055
    Net yield on interest-earning
      assets (4)                                                     2.26%
    Interest-earning assets to
      interest-bearing liabilities
       ratio                                              106.18%

  Tax equivalent spread:
    Interest-earning assets               $164,408    $13,496,452    4.85%
    Tax equivalent adjustment               13,662             --    0.40%
    Interest-earning assets -
      tax equivalent                       178,070     13,496,452    5.25%

    Interest-bearing liabilities            87,689    $12,710,397    2.74%
    Net interest income                    $90,381

    Interest rate spread                                             2.51%
    Net yield on interest -
      earning assets (4)                                             2.66%


                                                       2003

                                                                  Annualized
                                                         Average   Average
                                           Interest     Balance(1) Yield/
                                                                    Rate
                                              (Dollars in thousands)


  Normal spread:
    Interest-earning assets:
      Loans, including loan fees (2)       $72,626     $4,614,269    6.24%
      Investment securities (3)             44,946      4,436,079    4.02%
      Mortgage and asset-
          backed securities (3)             11,003      1,122,153    3.89%
      Money market instruments               3,028        548,181    2.19%
    Total                                  131,603     10,720,682    4.87%

    Interest-bearing liabilities:
      Deposits                              28,769      5,075,144    2.25%
      Federal funds purchased and
         repurchase agreements              30,040      4,799,717    2.48%
      Advances from FHLB                     1,513        146,000    4.11%
    Total                                   60,322     10,020,861    2.39%

    Net interest income                    $71,281
    Interest rate spread                                             2.48%
    Net interest-earning assets                          $699,821
    Net yield on interest-earning
      assets (4)                                                     2.64%
    Interest-earning assets to
      interest-bearing liabilities
       ratio                                              106.98%

  Tax equivalent spread:
    Interest-earning assets               $131,603    $10,720,682    4.87%
    Tax equivalent adjustment                8,769             --    0.32%
    Interest-earning assets -
      tax equivalent                       140,372     10,720,682    5.19%

    Interest-bearing liabilities            60,322    $10,020,861    2.39%
    Net interest income                    $80,050

    Interest rate spread                                             2.80%
    Net yield on interest -
      earning assets (4)                                             2.96%



(1) Average balance on interest-earning assets and interest-bearing liabilities
is computed using daily monthly average balances during the periods.

(2) Average loans exclude non-performing loans. Loan fees amounted to $2.5
million and $2.4 million for the three-months ended December 31, 2004, and
2003, respectively.

(3) Includes trading and available for sale securities.

(4) Annualized net interest income divided by average interest-earning assets.

                  W HOLDING COMPANY, INC. EXHIBIT III b
                       YIELDS EARNED AND RATES PAID
                         YEARS ENDED DECEMBER 31,
                               (UNAUDITED)

                                                        2004
                                                        Average    Average
                                           Interest    Balance(1) Yield/Rate

                                              (Dollars in thousands)
  Normal spread:
    Interest-earning assets:
      Loans, including loan fees (2)      $322,164     $5,401,955    5.96%
      Investment securities (3)            212,213      5,400,997    3.93%
      Mortgage and asset-
          backed securities (3)             37,489        935,421    4.01%
      Money market instruments              19,510        745,828    2.62%
    Total                                  591,376     12,484,201    4.74%

    Interest-bearing liabilities:
      Deposits                             143,860      5,909,274    2.43%
      Federal funds purchased and
         repurchase agreements             141,414      5,676,595    2.49%
      Advances from FHLB                     6,568        164,245    4.00%
      Other borrowings                          --             --       --
    Total                                  291,842     11,750,114    2.48%

    Net interest income                   $299,534
    Interest rate spread                                             2.26%
    Net interest-earning assets                          $734,087
    Net yield on interest-earning
      assets (4)                                                     2.40%
    Interest-earning assets to
      interest-bearing liabilities
       ratio                                              106.25%

  Tax equivalent spread:
    Interest-earning assets               $591,376    $12,484,201    4.74%
    Tax equivalent adjustment               53,555             --    0.43%
    Interest-earning assets -
      tax equivalent                       644,931     12,484,201    5.17%

    Interest-bearing liabilities           291,842    $11,750,114    2.48%
    Net interest income                   $353,089

    Interest rate spread                                             2.69%
    Net yield on interest -
      earning assets (4)                                             2.83%


                                                        2003
                                                        Average    Average
                                           Interest     Balance(1) Yield/
                                                                    Rate
                                              (Dollars in thousands)

  Normal spread:
    Interest-earning assets:
      Loans, including loan fees (2)      $275,848    $4,278,468    6.45%
      Investment securities (3)            134,273     3,571,299    3.76%
      Mortgage and asset-
          backed securities (3)             40,140       998,257    4.02%
      Money market instruments              11,633       534,444    2.18%
    Total                                  461,894     9,382,468    4.92%

    Interest-bearing liabilities:
      Deposits                             114,755     4,768,490    2.41%
      Federal funds purchased and
         repurchase agreements             101,652     3,891,972    2.61%
      Advances from FHLB                     6,037       137,838    4.38%
      Other borrowings                         142         3,698    3.85%
    Total                                  222,586     8,801,998    2.53%

    Net interest income                   $239,308
    Interest rate spread                                            2.39%
    Net interest-earning assets                         $580,470
    Net yield on interest-earning
      assets (4)                                                    2.55%
    Interest-earning assets to
      interest-bearing liabilities
       ratio                                             106.59%

  Tax equivalent spread:
    Interest-earning assets               $461,894    $9,382,468    4.92%
    Tax equivalent adjustment               31,522            --    0.34%
    Interest-earning assets -
      tax equivalent                       493,416     9,382,468    5.26%

    Interest-bearing liabilities           222,586    $8,801,998    2.53%
    Net interest income                   $270,830

    Interest rate spread                                            2.73%
    Net yield on interest -
      earning assets (4)                                            2.89%




(1) Average balance on interest-earning assets and interest-bearing liabilities
is computed using daily monthly average balances during the periods.

(2) Average loans exclude non-performing loans. Loan fees amounted to $10.9
million and $8.7 million for the years ended December 31, 2004 and 2003,
respectively.

  (3) Includes trading and available for sale securities.
  (4) Net interest income divided by average interest-earning assets.


                       W HOLDING COMPANY, INC. EXHIBIT III c
               CHANGES IN YIELDS EARNED AND RATES PAID
                             (UNAUDITED)

                                          Three Months Ended December 31,
                                                   2004 vs. 2003
                                           Volume       Rate        Total
                                                  (In thousands)

  Interest income:
   Loans                                   $18,731     $(1,903)    $16,828
   Investment securities (1)                14,341        (615)     13,726
   Mortgage and asset-backed
    securities (1)                          (2,700)        526      (2,174)
  Money market instruments                   2,366       2,059       4,425
  Total increase (decrease)
   in interest income                       32,738          67      32,805

  Interest expense:
   Deposits                                  7,211       5,598      12,809
   Federal funds purchased and
   repurchase agreements                     9,877       4,247      14,124
   Advances from FHLB                          572        (138)        434
   Other borrowings                             --          --          --
  Total increase (decrease) in
   interest expense                         17,660       9,707      27,367
  Increase (decrease) in
   net interest income                     $15,078     $(9,640)     $5,438


                                               Year Ended December 31,
                                                    2004 vs. 2003
                                            Volume       Rate        Total

  Interest income:
   Loans                                   $64,831     $(18,515)    $46,316
   Investment securities (1)                71,641        6,299      77,940
   Mortgage and asset-backed
    securities (1)                          (2,519)        (132)     (2,651)
   Money market instruments                  5,216        2,661       7,877
  Total increase (decrease)
   in interest income                      139,169       (9,687)    129,482

  Interest expense:
   Deposits                                 27,757        1,348      29,105
   Federal funds purchased and
   repurchase agreements                    44,217       (4,455)     39,762
   Advances from FHLB                          972         (441)        531
   Other borrowings                           (142)          --        (142)
  Total increase (decrease) in
   interest expense                         72,804       (3,548)     69,256
  Increase (decrease) in
   net interest income                     $66,365      $(6,139)    $60,226

  (1) Includes trading and available for sale securities.

                     W HOLDING COMPANY, INC. EXHIBIT IV
                      LOANS RECEIVABLE-NET
                           (UNAUDITED)


                                         Dec. 31,     Dec. 31,
                                           2004         2003
                                            (In thousands)
  REAL ESTATE LOANS SECURED BY
    FIRST MORTGAGES:
  Commercial real estate                $3,167,439  $2,269,380
  Residential real estate, mainly
  one-to-four family residences            903,967     894,695
  Construction and land acquisition        331,221     207,593

  Total                                  4,402,627   3,371,668

  Plus (less):
  Undisbursed portion of loans in
   process                                  (3,076)     (4,993)
  Premium on loans purchased                   690       1,016
  Deferred loan fees - net                 (14,480)     (9,615)

  Total                                    (16,866)    (13,592)

  Real estate loans - net                4,385,761   3,358,076
  OTHER LOANS:
  Commercial loans                         768,845     526,105
  Consumer loans:
  Loans on deposits                         29,587      30,805
  Credit cards                              53,268      54,832
  Other                                    789,095     777,573
  Plus (less):
  Premium on loans purchased                 1,337       2,281
  Deferred loan fees - net                  (6,594)     (4,946)

  Other loans - net                      1,635,538   1,386,650
  TOTAL LOANS                            6,021,299   4,744,726
  ALLOWANCE FOR LOAN LOSSES                (80,066)    (61,608)

  LOANS - NET                           $5,941,233  $4,683,118


                    W HOLDING COMPANY, INC. EXHIBIT V
                   NON-PERFORMING LOANS AND FORECLOSED
                        REAL ESTATE HELD FOR SALE
                               (UNAUDITED)

                                         December    December
                                         31, 2004    31, 2003
                                        (Dollars in thousands)

  Commercial, industrial and
   agricultural loans                     $25,417    $24,142
  Consumer loans                            7,122      4,845
  Residential real estate mortgage and
   construction loans                       1,730      2,259
  Total non-performing loans               34,269     31,246
  Foreclosed real estate held for sale      3,811      4,082
  Total non-performing loans and
   foreclosed real estate held for sale   $38,080    $35,328

  Interest that would have been
   recorded if the loans had not
  been classified as non-performing        $3,557     $2,500
  Interest recorded on non-performing
   loans                                     $243       $583
  Total non-performing loans as a
   percentage
  of total loans at end of period           0.57%      0.66%
  Total non-performing loans and
   foreclosed real estate
  held for sale as a percentage of
   total assets at end of period            0.27%      0.31%


                  W HOLDING COMPANY, INC. EXHIBIT VI
            CHANGE IN ALLOWANCE FOR LOAN LOSSES
                        (UNAUDITED)

                                       December   December
                                       31, 2004   31, 2003

                                     (Dollars in thousands)

  Balance, beginning of year            $61,608    $47,114
  Loans charged-off:
  Consumer loans (1)                    (16,473)   (12,203)
  Commercial, industrial and
   agricultural loans                    (5,433)    (2,479)
  Real estate-mortgage and
  construction loans                       (297)      (184)
  Total loans charged-off               (22,203)   (14,866)
  Recoveries of loans previously
  charged-off:
  Consumer loans (2)                      1,920        799
  Commercial, industrial and
   agricultural loans                     1,844      1,141
  Real estate-mortgage and
  construction loans                        206        372
  Total recoveries of loans previously
   charged-off                            3,970      2,312
  Net loans charged-off                 (18,233)   (12,554)
  Provision for loan losses              36,691     27,048
  Balance, end of period                $80,066    $61,608

  Ratios:
  Allowance for loan losses to total
   loans at end of period                 1.33%      1.30%
  Provision for loan losses to net
   loans
     charged-off                        201.23%    215.45%
  Recoveries of loans to loans charged-
   off in
     previous period                     26.71%     29.03%
  Net loans charged-off to average
   total loans (3)                        0.34%      0.29%
  Allowance for loan losses to
     non-performing loans               233.64%    197.17%



(1) Includes $12.4 million and $7.9 million of Expresso of Westernbank loans
charged-offs for the years ended December 31, 2004 and 2003, respectively.

(2) Includes $1.0 million and $17,000 of Expresso of Westernbank recoveries for
the years ended December 31, 2004 and 2003, respectively.

  (3) Average loans were computed using beginning and period-end balances.

                   W HOLDING COMPANY, INC. EXHIBIT VII
                        SELECTED FINANCIAL RATIOS
                               (UNAUDITED)

                     Three Months Ended              Year Ended
                         December 31,               December 31,
                      2004        2003           2004        2003
                      (Dollars in thousands, except share data)

  Per share data:
    Dividend
     payout ratio     15.03%      15.09%         16.24%      19.97%
    Book value
     per common
     share             $3.48       $2.73 (2)      $3.48       $2.73 (2)
    Preferred
     stock
     outstanding
     at end of
     period       17,794,251  15,395,745     17,794,251  15,395,745
    Preferred
     stock equity
     at end of
     period         $511,744    $384,894       $511,744    $384,894

  Performance
   ratios:
    Return on
     average
     assets (1)        1.33%       1.37%          1.33%       1.15%
    Return on
     average
     common
     stockholders
     ' equity (1)     28.31%      29.44%         28.55%      22.79%
    Efficiency
     ratio            30.90%      30.55%         30.51%      31.75%
    Operating
     expenses to
     end-of-
     period
     assets            0.72%       0.83%          0.70%       0.74%

  Capital ratios:
    Total capital
     to risk-
     weighted
     assets           15.70%      14.87%         15.70%      14.87%
    Tier I
     capital to
     risk-
     weighted
     assets           14.78%      13.98%         14.78%      13.98%
    Tier I
     capital to
     average
     assets            7.72%       7.22%          7.72%       7.22%
    Equity-to-
     assets ratio      7.54%       7.19%          7.54%       7.19%

  Other selected
   data:

  Total trust
   assets managed   $398,709    $326,527       $398,709    $326,527
  Branch offices          52          51             52          51
  Number of
   employees           1,252       1,092          1,252       1,092



(1) The return on average assets is computed by dividing net income by average
total assets for the period. The return on average common stockholders' equity
is computed by dividing net income less preferred stock dividends by average
common stockholders' equity. Average balance have been computed using beginning
and period-end balances.

(2) Adjusted to reflect the three-for-two stock split and a 2% stock dividend
on our common stock declared on December 6, 2004 and December 13, 2004,
respectively, and distributed both on January 10, 2005. 

DATASOURCE: W Holding Company, Inc.



CONTACT:  Frank C. Stipes, Chief Executive Officer, or Freddy Maldonado,

Chief Financial Officer, both of W Holding Company, Inc., [phone]



Web site:  http://www.wbpr.com/ 

Copyright