OAK HARBOR, Wash., July 23, 2009 (GLOBE NEWSWIRE) -- Washington Banking Company (Nasdaq:WBCO), the holding company for Whidbey Island Bank, today reported that core deposit growth, efficient operating metrics and strong capital ratios contributed to profitability for the second quarter and first half of 2009. Income available to common shareholders was $818,000, or $0.09 per diluted common share, in the quarter ended June 30, 2009, compared to $1.2 million, or $0.13 per diluted common share, in the first quarter of 2009, and $2.4 million, or $0.25 per diluted common share, in the second quarter a year ago. For the first six months of 2009, net income available to common shareholders after preferred dividend payments of $772,000, was $2.0 million, or $0.21 per diluted common share, compared to $4.8 million, or $0.50 per diluted common share, which included no preferred dividends in the first six months of 2008.
"With a strong capital position and a relatively healthy loan portfolio, we are attracting new deposits and making loans to meet the needs of our customers. Although our total loans were down slightly from the previous period, we actually originated over $40 million in new loans during the second quarter -- we are clearly open for business," said Jack Wagner, President and CEO. "At the same time, we continue to build our reserves, conserve capital and focus on operations as the recession in our region continues to take its toll on jobs. While our asset quality remains well above our peers, both regionally and nationally, we are continuing to add to our reserves and remain diligent in our portfolio management."
Conference Call Information
Management will host a conference call tomorrow, July 24, 2009, at 10:00 a.m. PDT (1:00 p.m. EDT) to discuss the results. The call will also be broadcast live via the internet at www.wibank.com. Investment professionals and all current and prospective shareholders are invited to access the live call by dialing 480-629-9722 using Call ID 4106197 at 10:00 a.m. PDT. To listen to the call online, either live or archived, visit the Investor Relations page of Whidbey Island Bank's website at www.wibank.com.
Second Quarter 2009 Financial Highlights (June 30, 2009 compared to June 30, 2008)
* Capital ratios remained well above the regulatory requirements
for well-capitalized institutions, with Tier 1 Capital to
risk-adjusted assets of 14.99% compared to 11.54%. Tangible
common equity to assets stood at 8.89% compared to 8.58% a year
earlier.
* Relatively good asset quality was maintained in a very difficult
economic environment with nonperforming assets to total assets at
1.08%, up from 0.41%.
* Reserves grew to 1.80% of total loans, up 40 basis points
year-over-year.
* The provision for loan losses was $3.0 million in the second
quarter, bringing year-to-date provisions to $5.5 million.
* Total loans were $821 million, almost unchanged from $825
million.
* Book value per common share increased 7% to $8.71 compared to
$8.17.
* Core deposits, consisting of transaction accounts and CDs under
$100,000, were $600 million and accounted for 76% of total
deposits.
* Washington Banking was added to the Russell 2000 index of
small-cap companies at the end of June 2009.
Credit Quality
"While our loan portfolio continues to remain diversified by both type and size and our asset quality metrics continue to perform better than peer averages at the national and regional levels, further deterioration in our loan portfolio is anticipated," said Joe Niemer, Chief Credit Officer. According to the FDIC as of March 31, 2009, the average ratio of nonperforming assets to total assets was 2.32% for all commercial banks nationally and 6.48% for all commercial banks in the state of Washington. Washington Banking's nonperforming assets totaled $10.1 million, or 1.08% of total assets at June 30, 2009, compared to $10.3 million, or 1.12% of total assets at March 31, 2009, and $3.7 million, or 0.41% of total assets, a year ago. Nonperforming assets consist of nonaccrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned (OREO).
"Our exposure to residential construction and land development loans, although only 15% of the total loan portfolio, continue to show signs of stress," Niemer continued. "We are building reserves primarily for these loans. And although we are seeing some signs of a bottoming, we do recognize the possibility of further deterioration in our construction and land development loans in the next quarter or two. This deterioration would primarily be reflected in an increase in our level of nonperforming assets."
Net charge-offs in the second quarter were $1.6 million, or 75 basis points of average loans, compared to $869,000, or 42 basis points of average loans for the same period a year ago. Year-to-date, net charge-offs were $2.9 million, or 72 basis points of average loans, compared to $1.6 million, or 40 basis points for average loans in the first six months of 2008. Net charge-offs in the indirect lending portfolio were $228,000 in the second quarter, down from $445,000 in the first quarter, and up from $214,000 in the second quarter a year ago. For the first half of 2009, indirect net charge-offs were $672,000 or 1.27% of average indirect loans, compared to $405,000, or 0.73% of indirect loans in the first half of 2008.
Boosted by the $5.5 million provision for loan losses booked in the first half of 2009, the allowance for loan losses increased to $14.8 million, or 1.80% of total loans at quarter end, compared to $11.6 million, or 1.40% at June 30, 2008.
Capital
Washington Banking's capital ratios were very strong at the end of the second quarter, which included the $26.4 million raised from the sale of preferred shares to the U.S. Treasury in January of this year. Tier 1 capital ratio was 14.99% up from 14.94% at March 31, 2009, and 11.54% a year ago. The total risk-based capital ratio was 16.25% at June 30, 2009, compared to 16.19% at March 31, 2009, and 12.79% at June 30, 2008. All regulatory ratios continue to exceed the "well-capitalized" requirements established by regulators. Washington Banking's tangible common equity at quarter end was equal to 8.89% of total assets.
"Each quarter our board of directors reviews our dividend payment on common shares, and at our board meeting being held today, I am recommending that we temporarily reduce dividend payments until the regional economy begins to show signs of recovery," said Wagner. "The dividend payment is reviewed in light of earnings, the regional economic outlook and capital requirements. With the issuance of the preferred shares I believe it is prudent to conserve capital in order to put the Company in a position to be able to redeem preferred shareholders on an accelerated schedule, if appropriate. Washington Banking, however, has paid a quarterly cash dividend since its 1998 initial public offering, and we are very aware of the needs of our shareholders."
Balance Sheet
At June 30, 2009, total assets increased 3% to $935 million compared to $904 million a year ago. Total net loans decreased 1% to $806 million from $813 million a year ago and $816 million at the end of the first quarter of 2009.
Total deposits were up 3% in the quarter and 7% year-over-year at $788 million at June 30, 2009, compared to $763 million at the end of March and $733 million a year ago. Year-over-year, money market accounts increased 19% and now comprise 19% of total deposits. Time deposits increased 3% to $363 million and accounted for 46% of total deposits with a very small component of brokered deposits. "We are continuing to build our core deposit base and are seeing very strong new account growth," said Rick Shields, Chief Financial Officer. Core deposits, excluding brokered CDs and time deposits over $100,000, represent 76% of all deposits, up from 73% a year ago.
Retained earnings increased 7% to $47.5 million, bringing common shareholder equity to $8.71 per share at June 30, 2009, compared to $8.17 per share a year ago. Following the $26.4 million capital infusion from the preferred shares issued to the U.S. Treasury, total shareholders' equity was $107.9 million.
Operating Results
Bolstered by premiums received from loan sales and annuity commissions, revenue (fully tax equivalent) was $12.0 million in the second quarter of 2009, compared to $11.5 million for the first quarter and $11.1 million a year ago. Net interest income, before the provision for loan losses, grew 5% in the second quarter to $9.8 million from $9.3 million in both the previous and year ago quarters. Year-to-date revenue increased 4% to $23.2 million from $22.3 million in the first six months a year ago. Net interest income before provision for loan losses increased 1% to $19.1 million from $18.9 million a year ago.
Noninterest income rose to $2.1 million in the second quarter, up 4% from the prior quarter at $2.0 million and up 27% from $1.6 million a year ago. For the first six months of 2009, noninterest income grew 19% to $4.1 million from $3.4 million in the first half of 2008. "We are still generating solid volumes from residential mortgage lending for both new purchase and refinance activity, although we believe demand is starting to moderate and expect volumes will slow in the second half of the year," Shields noted.
Net interest margin was 4.57% in the second quarter of 2009, up 6 basis points from the first quarter and 2 basis points from the year ago quarter. For the first six months of the year, net interest margin was 4.54% down from 4.63% in the like period a year ago.
Second quarter noninterest expense was up 10% in the quarter and 14% from a year ago primarily related to the $400,000 FDIC special assessment levied in the 2009 second quarter and costs associated with opening the new Smokey Point branch and relocating the administrative center in Burlington. Operating expenses were $7.2 million in the second quarter compared to $6.5 million in the first quarter and $6.3 million in the second quarter a year ago. For the first six months of 2009, noninterest expense was $13.7 million, up 4% from $13.2 million in the first six months of 2008.
The efficiency ratio during the second quarter of 2009 was 59.72%, compared to 57.07% reported in the linked quarter, and 56.88% a year ago. Year-to-date, the efficiency ratio improved slightly to 58.43% compared to 58.46% in the first six months of 2008. Return on average assets and return on average common equity were 0.53% and 5.90%, respectively, for the second quarter of 2009 and 0.62% and 5.00%, respectively, for the first half of 2009.
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. In June 2009, Washington Banking was added to the Russell 2000 Index, a subset of the Russell 3000 Index. Both indices are widely used by professional money managers as benchmarks for investment strategies.
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.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
-------------------------------------------------
($ in thousands, except per share data)
Quarter Quarter Quarter
Ended Ended Three Ended One
June 30, March 31, Month June 30, Year
2009 2009 Change 2008 Change
---------------------------------------------------------------------
Interest Income
Loans $13,244 13,000 2% $14,383 -8%
Taxable Investment
Securities 141 136 3% 96 47%
Tax Exempt
Securities 95 67 40% 51 86%
Other 8 2 248% 3 197%
---------------------------------------------------------------------
Total Interest
Income 13,488 13,205 2% 14,533 -7%
Interest Expense
Deposits 3,386 3,519 -4% 4,542 -25%
Other Borrowings 114 133 -15% 359 -68%
Junior Subordinated
Debentures 180 224 -20% 284 -37%
---------------------------------------------------------------------
Total Interest
Expense 3,680 3,876 -5% 5,185 -29%
Net Interest Income 9,808 9,329 5% 9,348 5%
Provision for Loan
Losses 3,000 2,450 22% 1,050 186%
---------------------------------------------------------------------
Net Interest
Income after
Provision for
Loan Losses 6,808 6,879 -1% 8,298 -18%
Noninterest Income
Service Charges and
Fees 853 858 -1% 711 20%
Electronic Banking
Income 348 310 12% 347 0%
Investment Products 161 170 -5% 39 316%
Bank Owned Life
Insurance Income 112 94 20% 121 -7%
Income from the
Sale of Loans 301 270 11% 51 488%
SBA Premium Income 16 18 -11% 45 -65%
Other Income 282 283 -1% 324 -13%
---------------------------------------------------------------------
Total Noninterest
Income 2,073 2,003 4% 1,638 27%
Noninterest Expense
Compensation and
Employee Benefits 3,437 3,424 0% 3,798 -9%
Occupancy and
Equipment 1,071 1,033 4% 902 19%
Office Supplies
and Printing 207 171 21% 120 72%
Data Processing 146 131 11% 153 -5%
Consulting and
Professional Fees 211 278 -24% 147 44%
Other 2,115 1,509 40% 1,208 75%
---------------------------------------------------------------------
Total Noninterest
Expense 7,187 6,546 10% 6,328 14%
Income Before
Income Taxes 1,694 2,336 -27% 3,608 -53%
Provision for
Income Taxes 463 762 -39% 1,187 -61%
---------------------------------------------------------------------
Net Income 1,231 1,574 -22% 2,421 -49%
Preferred Dividends 413 359 15% -- 100%
---------------------------------------------------------------------
Net Income Available
to Common
Shareholders $ 818 $ 1,215 -33% $ 2,421 -66%
=====================================================================
Earnings per Common
Share
---------------------------------------------------------------------
Net Income per Share,
Basic $ 0.09 $ 0.13 -31% $ 0.25 -64%
=====================================================================
---------------------------------------------------------------------
Net Income per Share,
Diluted $ 0.09 $ 0.13 -31% $ 0.25 -64%
=====================================================================
Average Number of
Common Shares
Outstanding 9,530,000 9,507,000 9,464,000
Fully Diluted
Average
Common and
Equivalent Shares
Outstanding 9,552,000 9,527,000 9,519,000
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
-------------------------------------------------
($ in thousands, except per share data)
Six Months Ended One
June 30, Year
2009 2008 Change
---------------------------------------------------------------------
Interest Income
Loans $ 26,245 $ 29,744 -12%
Taxable Investment Securities 277 206 34%
Tax Exempt Securities 162 102 59%
Other 10 8 25%
---------------------------------------------------------------------
Total Interest Income 26,694 30,060 -11%
Interest Expense
Deposits 6,905 9,837 -30%
Other Borrowings 247 663 -63%
Junior Subordinated Debentures 404 689 -41%
---------------------------------------------------------------------
Total Interest Expense 7,556 11,189 -32%
Net Interest Income 19,138 18,871 1%
Provision for Loan Losses 5,450 2,075 163%
---------------------------------------------------------------------
Net Interest Income after
Provision for Loan Losses 13,688 16,796 -19%
Noninterest Income
Service Charges and Fees 1,711 1,437 19%
Electronic Banking Income 658 661 0%
Investment Products 331 167 98%
Bank Owned Life Insurance Income 205 222 -8%
Income from the Sale of Loans 570 141 304%
SBA Premium Income 33 189 -83%
Other Income 568 615 -8%
---------------------------------------------------------------------
Total Noninterest Income 4,076 3,432 19%
Noninterest Expense
Compensation and Employee Benefits 6,861 7,788 -12%
Occupancy and Equipment 2,104 1,851 14%
Office Supplies and Printing 378 240 58%
Data Processing 277 314 -12%
Consulting and Professional Fees 489 362 35%
Other 3,625 2,653 37%
---------------------------------------------------------------------
Total Noninterest Expense 13,734 13,208 4%
Income Before Income Taxes 4,030 7,020 -43%
Provision for Income Taxes 1,225 2,262 -46%
---------------------------------------------------------------------
Net Income 2,805 4,758 -41%
Preferred Dividends 772 -- 100%
---------------------------------------------------------------------
Net Income Available to Common
Shareholders $ 2,033 $ 4,758 -57%
=====================================================================
Earnings per Common Share
---------------------------------------------------------------------
Net Income per Share, Basic $ 0.21 $ 0.50 -58%
=====================================================================
---------------------------------------------------------------------
Net Income per Share, Diluted $ 0.21 $ 0.50 -58%
=====================================================================
Average Number of Common Shares
Outstanding 9,513,000 9,445,000
Fully Diluted Average Common
and Equivalent Shares Outstanding 9,535,000 9,511,000
CONSOLIDATED BALANCE SHEETS (unaudited)
---------------------------------------
($ in thousands, except per share data)
Three One
June 30, March 31, Month June 30, Year
2009 2009 Change 2008 Change
---------------------------------------------------------------------
Assets
Cash and Due from Banks $ 22,403 $ 17,019 32% $ 22,783 -2%
Interest-Bearing
Deposits with Banks 1,275 275 364% 515 147%
Fed Funds Sold 12,395 7,675 61% 3,280 278%
---------------------------------------------------------------------
Total Cash and Cash
Equivalents 36,073 24,969 44% 26,578 36%
Investment Securities
Available for Sale 31,740 20,481 55% 11,310 181%
FHLB Stock 2,430 2,430 0% 2,880 -16%
Loans Held for Sale 4,385 2,665 65% 562 680%
Loans Receivable 820,776 829,142 -1% 824,600 0%
Less: Allowance for
Loan Losses (14,770) (13,323) 11% (11,585) 27%
---------------------------------------------------------------------
Loans, Net 806,006 815,819 -1% 813,015 -1%
Premises and Equipment,
Net 25,527 25,365 1% 24,662 4%
Bank Owned Life
Insurance 17,028 16,916 1% 16,739 2%
Other Real Estate Owned 2,599 1,799 45% 1,198 117%
Other Assets 8,865 8,227 8% 6,933 28%
---------------------------------------------------------------------
Total Assets $934,653 $918,671 2% $903,877 3%
=====================================================================
Liabilities and
Shareholders' Equity
Deposits:
Noninterest-Bearing
Demand $103,226 $ 98,564 5% $ 91,764 12%
NOW Accounts 130,877 124,736 5% 126,307 4%
Money Market 146,115 142,176 3% 122,724 19%
Savings 44,766 43,024 4% 41,406 8%
Time Deposits 362,640 354,490 2% 350,667 3%
---------------------------------------------------------------------
Total Deposits 787,624 762,989 3% 732,868 7%
FHLB Overnight Borrowings 100% 34,000 -100%
Other Borrowed Funds 10,000 20,000 -50% 30,000 -67%
Junior Subordinated
Debentures 25,774 25,774 0% 25,774 0%
Other Liabilities 3,329 2,187 52% 3,699 -10%
---------------------------------------------------------------------
Total Liabilities 826,727 810,950 2% 826,341 0%
Shareholders' Equity:
Preferred Stock (no par
value) 26,380 Shares
Authorized
Series A (Liquidation
preference $1,000 per
share); 26,380 Issued
and Outstanding at
6/30/09 and 3/31/09;
none in 2008 24,827 24,744 0% -- 100%
Common Stock (no par
value) 13,679,757 Shares
Authorized
9,538,899 Issued and
Outstanding at
6/30/09, 9,529,322 at
3/31/09 and 9,487,560
at 6/30/08 35,456 35,468 0% 33,208 7%
Retained Earnings 47,527 47,246 1% 44,226 7%
Other Comprehensive
Income 116 263 -56% 102 14%
---------------------------------------------------------------------
Total Shareholders'
Equity 107,926 107,721 0% 77,536 39%
---------------------------------------------------------------------
Total Liabilities
and Shareholders'
Equity $934,653 $918,671 2% $903,877 3%
=====================================================================
ASSET QUALITY (unaudited)
-------------------------
($ in thousands, except per share data)
---------------------------------------------------------------------
Quarter Quarter Quarter
Ended Ended Ended Six Months Ended
June 30, March 31, June 30, June 30,
2009 2009 2008 2009 2008
---------------------------------------------------------------------
Allowance for Loan
Losses Activity:
Balance at Beginning
of Period $13,323 $12,250 $11,404 $12,250 $11,126
Indirect Loans:
Charge-offs (482) (649) (331) (1,131) (693)
Recoveries 254 204 117 459 288
---------------------------------------------------------------------
Indirect Net
Charge-offs (228) (445) (214) (672) (405)
Other Loans:
Charge-offs (1,508) (1,132) (773) (2,640) (1,432)
Recoveries 183 200 118 382 221
---------------------------------------------------------------------
Other Net
Charge-offs (1,325) (932) (655) (2,258) (1,211)
Total Net
Charge-offs (1,553) (1,377) (869) (2,930) (1,616)
Provision for Loan
Losses 3,000 2,450 1,050 5,450 2,075
---------------------------------------------------------------------
Balance at End of
Period $14,770 $13,323 $11,585 $14,770 $11,585
=====================================================================
Net Charge-offs to
Average Loans:
Indirect Loans Net
Charge-offs, to Avg
Indirect Loans,
Annualized(1) 0.86% 1.68% 0.77% 1.27% 0.73%
Other Loans Net
Charge-offs, to Avg
Other Loans,
Annualized(1) 0.74% 0.53% 0.37% 0.63% 0.34%
Net Charge-offs to
Average Total
Loans(1) 0.75% 0.68% 0.42% 0.72% 0.40%
June 30, March 31, June 30,
2009 2009 2008
---------------------------------------------------------
Nonperforming Assets
--------------------
Nonperforming Loans(2) $ 7,478 $ 8,474 $ 2,515
Other Real Estate Owned 2,599 1,799 1,198
---------------------------------------------------------
Total Nonperforming
Assets $ 10,077 $ 10,273 $ 3,713
=========================================================
Nonperforming Loans to
Loans(1) 0.91% 1.02% 0.30%
Nonperforming Assets
to Assets 1.08% 1.12% 0.41%
Allowance for Loan Losses
to Nonperforming Loans 197.52% 157.22% 460.64%
Allowance for Loan Losses
to Loans(3) 1.80% 1.61% 1.40%
Loan Composition
----------------
Commercial $ 95,935 $ 98,503 $ 97,572
Real Estate Mortgages
One-to-Four Family
Residential 57,414 61,946 56,796
Commercial 346,322 334,236 322,943
Real Estate Construction
One-to-Four Family
Residential 79,494 93,587 104,597
Commercial 39,183 44,206 45,359
Consumer
Indirect 104,178 106,139 109,167
Direct 95,652 87,877 85,603
Deferred Fees 2,598 2,648 2,563
---------------------------------------------------------
Total Loans $820,776 $829,142 $824,600
=========================================================
Time Deposit Composition
------------------------
Time Deposits $100 and
greater $160,253 162,698 190,039
All Other Time Deposits 174,556 172,188 150,628
Brokered Deposits
CDARS (Certificate of
Deposit Account
Registry Service) 20,331 12,104 --
Non-CDARS 7,500 7,500 10,000
---------------------------------------------------------
Total Time Deposits $362,640 $354,490 $350,667
=========================================================
(1) Excludes Loans Held for Sale.
(2) Nonperforming loans includes nonaccrual loans plus accruing loans
90 or more days past due.
FINANCIAL STATISTICS (unaudited)
--------------------------------
($ in thousands, except per share data)
Quarter Quarter Quarter
Ended Ended Ended Six Months Ended
June 30, March 31, June 30, June 30,
2009 2009 2008 2009 2008
------------------------------------------------------------------
Revenues(1)(2) $ 12,034 $ 11,473 $ 11,125 $ 23,507 $ 22,595
--------
Averages
--------
Total Assets $929,932 $904,437 $890,997 $916,883 $885,639
Loans and Loans
Held for Sale 830,591 825,694 823,052 828,156 817,090
Interest-
Earning Assets 874,828 851,100 838,140 863,029 832,399
Deposits 773,037 750,807 736,991 761,983 739,835
Common
Shareholders'
Equity $ 83,677 $ 80,897 $ 76,203 $ 81,922 $ 75,234
Financial Ratios
----------------
Return on
Average
Assets,
Annualized 0.53% 0.71% 1.09% 0.62% 1.08%
Return on
Average Common
Equity,
Annualized(3) 5.90% 6.10% 12.78% 5.00% 12.72%
Efficiency
Ratio(2) 59.72% 57.07% 56.88% 58.43% 58.46%
Yield on
Earning
Assets(2) 6.26% 6.36% 7.04% 6.31% 7.33%
Cost of
Interest-
Bearing
Liabilities 2.06% 2.23% 2.91% 2.14% 3.15%
Net Interest
Spread 4.20% 4.13% 4.14% 4.17% 4.18%
Net Interest
Margin(2) 4.57% 4.51% 4.55% 4.54% 4.63%
Book Value Per
Share $ 8.71 $ 8.71 $ 8.17
Regulatory
Requirements
June 30, March 31, June 30, -----------------
2009 2009 2008 capitalized
----------------------------------------------- ------------------
Period End
Total Risk-Based
Capital Ratio
- Consolidated 16.25%(4) 16.19% 12.79% 8.00% N/A
Tier 1 Risk-
Based Capital
Ratio -
Consolidated 14.99%(4) 14.94% 11.54% 4.00% N/A
Tier 1 Leverage
Ratio -
Consolidated 14.28% 14.66% 11.50% 4.00% N/A
-----------------------------------------------
Total Risk-Based
Capital Ratio -
Whidbey Island
Bank 16.11%(4) 16.01% 12.58% 8.00% 10.00%
Tier 1 Risk-
Based Capital
Ratio - Whidbey
Island Bank 14.86%(4) 14.76% 11.33% 4.00% 6.00%
Tier 1 Leverage
Ratio - Whidbey
Island Bank 14.15% 14.48% 11.28% 4.00% 5.00%
-----------------------------------------------
(1) Revenues is the fully tax-equivalent net interest income before
provision for loan losses plus noninterest income.
(2) Fully tax-equivalent is a non-GAAP performance measurement that
management believes provides investors with a more accurate
picture of the net interest margin, revenues and efficiency ratio
for comparative purposes. The calculation involves grossing up
interest income on tax-exempt loans and investments by an amount
that makes it comparable to taxable income.
(3) Return on average common equity is adjusted for preferred stock
dividends.
(4) Capital ratios for the most recent period are an estimate pending
filing of the Company's regulatory reports.