OAK HARBOR, Wash., Jan. 14, 2009 (GLOBE NEWSWIRE) -- Washington Banking Company (Nasdaq:WBCO), the holding company for Whidbey Island Bank, today announced that it has received shareholder approval to amend the Articles of Incorporation to increase the number of preferred shares and set the terms for their issuance to accommodate the participation in the U.S. Treasury's Capital Purchase Program.
Washington Banking recently obtained preliminary approval of its application for the Unites States Treasury Department to invest $26.38 million in Washington Banking's preferred stock and common stock warrants. The preferred stock will pay cumulative dividends at a rate of 5% per year for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed.
"We are delighted with the support we have received from our shareholders, which will allow us to move forward and participate in this voluntary program," said Jack Wagner, President and CEO. "The additional capital we receive through this transaction will give us more flexibility when considering strategic opportunities for growth in the primary markets we serve, and will enhance Washington Banking's already strong capital position." The Treasury's program was established to encourage qualified financial institutions to build capital to increase the flow of financing to business and consumers to support the U.S. economy.
The Capital Purchase Program was introduced on October 14, 2008, under which the Treasury will make up to $250 billion in equity capital available to qualifying financial institutions to help restore confidence and stability in the U.S. financial markets. The Treasury's term sheet with additional detail about the Capital Purchase Program is available on the Treasury's website at http://www.ustreas.gov.
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 19 full-service branches located in five counties in Northwestern Washington.
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.