OAK HARBOR, Wash., April 23, 2009 (GLOBE NEWSWIRE) -- Washington Banking Company (Nasdaq:WBCO), the holding company for Whidbey Island Bank, announced today that its Board of Directors declared a regular cash dividend of $0.065 per common share. The dividend is payable May 20, to common shareholders of record on May 5, 2009. Washington Banking has paid a quarterly cash dividend since its 1998 initial public offering.
On April 21, 2009, Washington Banking reported that core deposit growth, efficient operating metrics and strong capital ratios contributed to first quarter 2009 profitability. After its first preferred dividend payment of $359,000, Washington Banking earned $1.2 million, or $0.13 per diluted common share, in the quarter ended March 31, 2009, compared to $1.7 million, or $0.18 per diluted common share, in the fourth quarter of 2008 and $2.3 million, or $0.25 per diluted common share, in the first quarter a year ago.
"In the first quarter, we generated another solid quarterly profit while building capital, increasing reserves and paying our first preferred dividend to the U.S. Treasury," said Jack Wagner, President and CEO. "While profits did not reach the record levels of a few years ago, we are delighted with our deposit growth, which contributed to a stable net interest margin, and our credit quality continues to be above average."
"Our directors review dividend payments each quarter in light of earnings, the regional economic outlook and capital requirements," said Wagner. "With the issuance of the preferred shares through the U.S. Treasury's Capital Purchase Program last quarter, the board will also determine the prudence of conserving capital in order to redeem preferred shares on an accelerated schedule. This consideration may alter the amount of dividends available to common shareholders for a period of time. With a long history of paying quarterly cash dividends, any alteration of our dividend policy will be carefully weighed."
ABOUT WASHINGTON BANKING COMPANY
Washington Banking Company is a bank holding company based in Oak Harbor, Washington, that operates Whidbey Island Bank, a state-chartered full-service commercial bank. Founded in 1961, Whidbey Island Bank provides various deposit, loan and investment services to meet customers' financial needs. Whidbey Island Bank operates 18 full-service branches located in five counties in Northwestern Washington. The first quarter 2009 news release and conference call replay are available on the investor relations section at www.wibank.com.
This news release may contain forward-looking statements that are subject to risks and uncertainties. These forward-looking statements describe management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, credit quality and loan losses, and continued success of the Company's business plan. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. The words "anticipate," "expect," "will," "believe," and words of similar meaning are intended, in part, to help identify forward-looking statements. Future events are difficult to predict, and the expectations described above are subject to risk and uncertainty that may cause actual results to differ materially. In addition to discussions about risks and uncertainties set forth from time to time in the Company's filings with the Securities and Exchange Commission, factors that may cause actual results to differ materially from those contemplated in these forward-looking statements include, among others: (1) local and national general and economic condition; (2) changes in interest rates and their impact on net interest margin; (3) competition among financial institutions; (4) legislation or regulatory requirements; and (5) the ability to realize the efficiencies expected from investment in personnel and infrastructure. Washington Banking Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made. Any such statements are made in reliance on the safe harbor protections provided under the Securities Exchange Act of 1934, as amended.