Washington Banking earnings show it’s in good shape

Published 11:31 pm Thursday, April 22, 2010

EVERETT — Washington Banking, the holding company for Whidbey Island Bank, said today that it earned $2 million in the first quarter, with about $1.6 million available to shareholders.

“The highlight of the year so far is the successful bid for the FDIC-assisted acquisition of City Bank of Lynnwood, which we announced last Friday,” said Jack Wagner, president and chief executive officer.

The Federal Deposit Insurance Corp. seized Lynnwood-based City Bank on Friday, selling its more lucrative assets to Whidbey Island Bank.

“The FDIC excluded approximately $328 million in brokered deposits, $180 million in other real estate owned and $132 million of nonperforming loans from the bidding process, which was instrumental in reducing the risk and allowing us to proceed with this transaction,” Wagner said.

Washington Banking reported today that the net income available to common shareholders following the first quarter totaled $1.6 million, or 10 cents per diluted share. That compares to $1.3 million, or 11 cents per diluted common share, in the fourth quarter of 2009, and $1.2 million, or 13 cents per diluted common share, in the first quarter a year ago, when there were fewer shares outstanding.

With the completion of the City Bank deal, Washington Banking has $1.7 billion in assets, $1.5 billion in deposits, and $1.3 billion in loans, before adjustments. As part of its bid, Washington Banking agreed to assume all nonbrokered deposits and 56 percent of the assets of City Bank.

“The 8-branch network of City Bank is an excellent extension of our 18-branch Northwest footprint and brings a strong customer base, with some really good assets,” Wagner said. “Prior to Friday we had only two branches in Snohomish County, and now with six more branches in Snohomish and two in north King County, we are well positioned along the I-5 corridor between Seattle and the Canadian border.”

Washington Banking also announced a quarterly dividend of 3 cents per share, up 2.5 cents per share from the fourth quarter. The dividend is payable May 19 to all common shareholders of record on May 4, 2010. It’s the 48th consecutive quarter the bank has paid a cash dividend to shareholders.

“Throughout this economic cycle, we have remained profitable each and every quarter,” Wagner said. “I think this is going to be an exciting year.”