This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Washington Banking Company 3Q12 Profits Increase 28% To $4.6 Million; EPS Up 25% To $0.30 From $0.24 In 3Q11

Washington Banking Company (NASDAQ:WBCO), the holding company for Whidbey Island Bank, today reported earnings in the third quarter of 2012 increased to $4.6 million, or $0.30 per diluted share, compared to $2.8 million, or $0.18 per diluted share, in the second quarter of 2012, and $3.6 million, or $0.24 per diluted share in the third quarter of 2011. Good loan growth, strong mortgage banking income, and declining expenses related to the 2010 FDIC-assisted acquisitions contributed to the solid financial results produced in both the third quarter and first nine months of 2012. In the first nine months of 2012, Washington Banking’s net income increased 15% to $12.3 million, or $0.79 per diluted share, compared to $10.6 million, or $0.69 per diluted share, which included its last $1.1 million preferred dividend payment in the first nine months a year ago.

“Our third quarter profits show the improving market conditions in the Pacific Northwest, and we remain guardedly optimistic about the economic recovery in the area,” said Jack Wagner, President and Chief Executive Officer. “Demand for commercial loans continues to grow, and residential mortgage refinancing activity remains robust.”

“We are still on track to open our new branch in Woodinville before the end of the year, and we see this market as an attractive addition to our franchise,” said Bryan McDonald, Whidbey Island Bank’s President and CEO. “The expanded workforce in the aerospace industry, fueled by Boeing’s strength, along with strong in-migrations and a rebound in our housing markets, are all contributing to an improving regional economy.”

Third quarter 2012 Financial Highlights (as of, or for the period ended September 30, 2012)

  • Net interest margin (NIM) compressed 19 basis points to 5.48% from 5.67% in the preceding quarter, but increased 5 basis points from 5.43% in the year ago quarter.
  • On a consolidated basis, Total Risk-Based Capital to risk-adjusted assets was 19.65% compared to 19.43% a year ago. The FDIC requires a minimum of 10% Total Risk-Based Capital ratio to be considered well-capitalized.
  • Nonperforming non-covered assets/total assets improved to 1.29%, compared to 1.30% in the preceding quarter and 1.75% a year ago. Classified loans declined to $78.2 million at September 30, 2012, from $84.8 million at June 30, 2012.
  • Tangible book value per common share increased to $11.31, compared to $10.33 a year ago.
  • Low cost demand, money market, savings and NOW accounts totaled $986.5 million and make up 68% of total deposits.
  • Loan loss reserves were 2.01% of non-covered loans, and 2.30% a year ago.
  • The interest income generated from the loan portfolios in the FDIC-assisted acquisitions contributed $9.0 million to third quarter revenues, up from $8.6 million in the third quarter a year ago.
  • Return on average assets was 1.10% and return on average common equity was 10.43%, annualized.
  • The Seattle Times’ ranked Washington Banking Company as the top financial institution in the region for the third consecutive year in their 21st annual “Best of the Northwest” listing.

Regional and Acquisitions Update

“Our acquisitions made in 2010 expanded our branch footprint, particularly in North King County, which is one of the best performing localities in the region,” stated Rick Shields, Chief Financial Officer. “While the costs associated with accounting for the FDIC guarantees are high and contribute to volatility in our quarterly results, the benefits of these acquisitions are clearly visible in our financial results.

1 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs