Washington Banking Company Earns $1.6 Million in First Quarter for Common Shareholders;...

Washington Banking Company Earns $1.6 Million in First Quarter for Common
Shareholders; Balance Sheet Strength Facilitates City Bank Acquisition

OAK HARBOR, Wash., April 22, 2010 (GLOBE NEWSWIRE) -- Washington Banking Company
(Nasdaq:WBCO), the holding company for Whidbey Island Bank, today reported that
its strong capital ratios, stable credit quality and healthy core deposit growth
contributed to another profitable quarter. Washington Banking earned $2.0
million in the first quarter of 2010, compared to $1.7 million in the preceding
quarter and $1.6 million for the first quarter a year ago. Net income available
to common shareholders totaled $1.6 million, or $0.10 per diluted share in the
first quarter, compared to $1.3 million, or $0.11 per diluted common share, in
the preceding quarter, and $1.2 million, or $0.13 per diluted common share, in
the first quarter a year ago, when there were fewer shares outstanding.

"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 FDIC excluded approximately
$328 million in brokered deposits, $180 million in other real estate owned and
$132 million of non-performing loans from the bidding process, which was
instrumental in reducing the risk and allowing us to proceed with this
transaction. The successful campaign that raised a net $49 million in new
capital last November laid the groundwork for this acquisition, which is
expected to be accretive to earnings almost immediately."

With the completion of this transaction, Washington Banking now has, on a pro
forma basis and before any fair value adjustments, $1.7 billion in assets, $1.5
billion in deposits, and $1.3 billion in loans. As part of its competitive bid,
Washington Banking agreed to assume all non-brokered deposits and 56% of the
assets of City Bank. The accepted bid included a 1% deposit premium on
non-brokered deposits, a first loss tranche of 2% and a negative bid of $49.7
million on net assets acquired.

"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. We believe the terms of this transaction will allow us to integrate the
City franchise into our own, while bringing our hallmark strength and service to
the customers," Wagner continued. "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."

"We also are excited to welcome the skilled banking professionals that have
served in the City branch network for many years. We anticipate that the
transition for customers will be seamless and straightforward," Wagner added.

Conference Call Information

Management will host a conference call on Friday, April 23 at 10:00 a.m. PDT
(1:00 p.m. EDT) to discuss the quarterly financial results and the acquisition.
The call will also be broadcast live via the internet. Investment professionals
and all current and prospective shareholders are invited to access the live call
by dialing (480) 629-9722 at 10:00 a.m. PDT for conference ID #4276650. 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. Shortly after the call
concludes, the replay will also be available at (303) 590-3030, using access
code #4276650, where it will be archived for ninety days.

First Quarter 2010 Financial Highlights (March 31, 2010 compared to March 31,
2009)

-- Capital ratios continue to exceed the regulatory requirements for
well-capitalized institutions, with Total Risk Based Capital to
risk-adjusted assets of 21.59% compared to 16.19%. To be considered
well-capitalized, a bank must have over 10% Total Risk-based Capital.
-- Tangible common equity to tangible assets stood at 12.94% compared to
9.03%.
-- Asset quality remains better than average for the region and the nation
with nonperforming assets to total assets at 0.83%, down from 1.12%.
-- Deposits increased 11% to $846 million with noninterest-bearing demand
deposits up 14% year-over-year, representing 13% of total deposits.
-- Low cost money market, savings and NOW accounts increased 28% to $397
million.
-- Total loans were $822 million, down slightly from $829 million, and
increased $7.8 million from year end '09.
-- The provision for loan losses was $2.2 million in the first quarter,
down from the $2.5 million provision of a year ago.
-- Loan loss reserves increased to 2.0% of total loans up from 1.61% a year
ago.
-- Pretax pre-provision income climbed slightly to $4.9 million compared to
$4.8 million.
-- Tangible book value per common share increased to $8.85 compared to
$8.71.

Credit Quality

"Our loan portfolio continues to outperform that of our peers in the region and
nationally, however further deterioration is possible in our asset quality
metrics, and we did acquire a portion of the nonperforming assets of City Bank,"
said Joe Niemer, Chief Credit Officer. "We continued to build reserves in the
first quarter, which reflects our concern for the overall economy. Our provision
for loan losses of $2.2 million exceeded net charge-offs of $1.9 million. The
reserve for loan losses remained at 2.00% of total loans and was 446% of
nonperforming loans at the end of March."

Nonperforming loans totaled $3.7 million compared to $3.4 million at the end of
December and $8.5 million a year ago. Other real estate owned (OREO) totaled
$4.9 million, up from $4.6 million at the end of the preceding quarter and up
from $1.8 million a year ago. Nonperforming assets totaled $8.6 million, or
0.83% of total assets at quarter end, compared to $7.9 million, or 0.76% of
total assets at the end of 2009, and $10.3 million, or 1.12% of total assets, a
year ago. Nonperforming assets consist of nonaccrual loans, accruing loans 90
days or more past due, restructured loans and OREO.

Net charge-offs in the first quarter were unchanged from the preceding quarter
at $1.9 million, or 94 basis points of average loans on an annualized basis,
compared to $1.4 million, or 68 basis points of average loans for the first
quarter a year ago. Net charge-offs in the indirect lending portfolio were down
to $406,000 in the first quarter, compared to $635,000 in the preceding quarter,
and $649,000 in the first quarter a year ago.

Balance Sheet

Total assets increased 14% to $1.05 billion at March 31, 2010, compared to
$918.7 million a year ago. Total loans increased slightly to $822 million from
$814 million at the end of December, but down from $829 million a year ago. The
portfolio is well diversified with commercial and industrial loans making up 16%
of total loans and residential mortgages accounting for 6% of the portfolio.
Owner-occupied commercial real estate loans represent 20% of the portfolio and
non-owner occupied commercial real estate account for 22% of loans. Indirect
consumer loans, mostly made through local automobile dealers, account for 12% of
the portfolio and other consumer loans account for 11%. Construction and land
development loans for residential properties represent 9% of loans and
commercial construction and land development loans represent 4% of the
portfolio.

Total deposits were basically unchanged in the quarter and increased 11%
year-over-year to $846 million at March 31, 2010, compared to $847 million at
the end of December and $763 million a year ago. Noninterest-bearing demand
deposits increased 14% year-over-year, now representing 13% of total deposits.
Year-over-year, money market accounts increased 43% and now comprise 24% of
total deposits. Time deposits decreased 4% in the quarter to $336 million and
accounted for 40% of total deposits. Core deposits, excluding brokered CDs and
time deposits over $100,000 represent 83% of all deposits, up from 78% a year
ago. "Outside of the CDARS (Certificate of Deposit Account Registry Service)
program, which provides additional sources of insurance for local customers, we
have minimal deposits from brokered sources," said Shields. "Because we only
take CDARS from customers in our existing footprint, we consider them as part of
our core deposit base."

Shareholders' equity increased 50% to $161 million compared to $108 million a
year ago. The increase in shareholders' equity is primarily due to the $49.0
million secondary common stock offering completed in November 2009. Included in
shareholders' equity is the $26.4 million from the preferred shares issued to
the U.S. Treasury in January of 2009. As a result of the equity offering in
November 2009, one half of the warrants issued with the preferred shares were
cancelled. Retained earnings increased 11% to $52.4 million, bringing tangible
common shareholder equity to $8.85 per share at March 31, 2010, compared to
$8.71 per share a year ago.

Operating Results

Revenue for the first quarter of 2010 was $12.9 million, compared to $12.7
million in the preceding quarter and $11.5 million a year ago. Net interest
income, before the provision for loan losses, increased 2% to $11.0 million in
the first quarter from the linked quarter of $10.8 million, and grew 18% from
$9.3 million a year ago.

Noninterest income totaled $1.7 million in the first quarter, flat with the
preceding quarter but down 13% from $2.0 million a year ago, reflecting lower
income from the sale of loans, reduced commission income from investment
products, and lower service charges and fees on deposit accounts.

Washington Banking's net interest margin was 4.66% in the first quarter, a
decrease of just 3 basis points from the preceding quarter, and up 15 basis
points from the year ago quarter. "Our cost of funds has benefitted from lower
interest rates over the past few quarters and almost all of our higher-cost
certificates of deposit have now repriced," said Shields.

First quarter noninterest expense increased 2% in the quarter and 19%
year-over-year primarily related to increased employee expense, data processing
and the higher FDIC premiums. Cost associated with OREO management declined in
the first quarter to $193,000 from $549,000 in the prior quarter and $238,000 a
year ago. Operating expenses were $7.8 million in the first quarter compared to
$7.6 million in the preceding quarter and $6.5 million in the first quarter of
2009.

The efficiency ratio during the first quarter of 2010 was 60.12% compared to
59.90% reported in the linked quarter, and 57.07% in the like quarter a year
ago. Return on average assets was 0.78% in the quarter, compared to 0.71% in
the like quarter a year earlier. Return on equity, which was impacted by the
additional equity capital raised in November 2009, was 4.77%, compared to 6.10%
in the first quarter a year ago.

Annual Meeting

Shareholders, customers, employees and interested investors are cordially
invited to attend the Washington Banking Company Annual Shareholders Meeting to
be held on Thursday, May 13, 2010 at 3:00 p.m. The meeting will be held at the
Best Western Harbor Plaza, located at 33175 State Route 20, Oak Harbor,
Washington.

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 26 full-service branches located in six 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.

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 the transition of
City Bank operations, employees and customers, future operating results, BOLI
contributions to revenue, availability of acquisition opportunities, 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; (5) the ability to realize the efficiencies expected from
investment in personnel and infrastructure; and (6) the inability to retain City
Bank customers or employees and expenses associated with the integration of
acquired City Bank operations. 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 BALANCE SHEETS

(unaudited)

------------------------------

($ in thousands except per

share data)

Three
One
March 31, December 31, Month
March 31, Year
2010 2009 Change
2009 Change
------------------------------ ------------- ------------------- ------
----------- ------
Assets

Cash and Due from Banks $ 15,040 $ 14,950 1%
$ 16,990 -11%
Interest-Bearing Deposits with

Banks 64,203 86,891 -26%
303 21101%

Fed Funds Sold -- -- 100%
7,675 -100%
------------------------------ ------------- ------------------- ------
----------- ------
Total Cash and Cash

Equivalents 79,243 101,841 -22%
24,969 217%
Investment Securities

Available for Sale 96,217 80,833 19%
20,481 370%
FHLB Stock 2,430 2,430 0%
2,430 0%
Loans Held for Sale 3,297 3,232 2%
2,665 24%
Loans Receivable 821,617 813,852 1%
829,142 -1%

Less: Allowance for Loan

Losses (16,464) (16,212) 2%
(13,323) 24%
------------------------------ ------------- ------------------- ------
----------- ------
Loans, Net 805,153 797,640 1%
815,819 -1%
Premises and Equipment, Net 25,672 25,495 1%
25,365 1%
Bank Owned Life Insurance 17,058 16,976 0%
16,916 1%
Other Real Estate Owned 4,937 4,549 9%
1,799 174%

Other Assets 12,648 12,875 -2%
8,227 54%
------------------------------ ------------- ------------------- ------
----------- ------

Total Assets $ 1,046,655 $ 1,045,871 0%
$ 918,671 14%
============================== ============= =================== ======
=========== ======

Liabilities and Shareholders'

Equity

Deposits:

Noninterest-Bearing Demand $ 112,338 $ 104,070 8%
$ 98,563 14%
NOW Accounts 140,794 141,121 0%
124,736 13%
Money Market 202,665 202,144 0%
142,176 43%
Savings 53,364 49,003 9%
43,024 24%

Time Deposits 336,479 350,333 -4%
354,490 -5%
------------------------------ ------------- ------------------- ------
----------- ------
Total Deposits 845,640 846,671 0%
762,989 11%
FHLB Overnight Borrowings -- -- 100%
-- 100%
Other Borrowed Funds 10,000 10,000 0%
20,000 -50%
Junior Subordinated Debentures 25,774 25,774 0%
25,774 0%

Other Liabilities 4,049 3,905 4%
2,187 85%
------------------------------ ------------- ------------------- ------
----------- ------
Total Liabilities 885,463 886,350 0%
810,950 9%
Shareholders' Equity:

Preferred Stock, no par value,

26,380 shares authorized

Series A (Liquidation

preference $1,000 per

shares); issued and

outstanding: 26,380 at

3/31/10, 12/31/2009, and

3/31/09. 25,065 24,995 3%
24,744 4%

Common Stock (no par value)

authorized 35,000,000; shares

issued and outstanding

15,303,124 at 3/31/10,

15,297,801 at

12/31/09, and 9,529,322 at

3/31/09 83,174 83,094 0%
35,552 134%
Retained Earnings 52,397 51,183 1%
47,162 10%

Other Comprehensive Income 556 249 124%
263 112%
------------------------------ ------------- ------------------- ------
----------- ------

Total Shareholders' Equity 161,192 159,521 1%
107,721 50%
------------------------------ ------------- ------------------- ------
----------- ------

Total Liabilities and

Shareholders' Equity $ 1,046,655 $ 1,045,871 0%
$ 918,671 14%
============================== ============= =================== ======
=========== ======

CONSOLIDATED STATEMENTS OF

OPERATIONS (unaudited)

-------------------------------

($ in thousands, except per

share data)

Quarter

Quarter Ended Quarter

Ended December Three Ended
One
March 31, 31, Month March 31,
Year
2010 2009 Change 2009
Change
------------------------------- ----------- ----------- ------ ----------
------
Interest Income

Loans $ 13,085 $ 13,345 -2% $ 13,000
1%
Taxable Investment Securities 413 275 50% 136
204%
Tax Exempt Securities 158 176 -10% 67
136%

Other 36 25 44% 2
1700%
------------------------------- ----------- ----------- ------ ----------
------
Total Interest Income 13,692 13,821 -1% 13,205
4%

Interest Expense

Deposits 2,503 2,813 -11% 3,519
-29%
Other Borrowings 91 93 -2% 133
-31%

Junior Subordinated Debentures 117 122 -4% 224
-48%
------------------------------- ----------- ----------- ------ ----------
------
Total Interest Expense 2,711 3,028 -10% 3,876
-30%

Net Interest Income 10,981 10,793 2% 9,329
18%

Provision for Loan Losses 2,150 2,250 -4% 2,450
-12%
------------------------------- ----------- ----------- ------ ----------
------
Net Interest Income after

Provision for Loan Losses 8,831 8,543 3% 6,879
28%

Noninterest Income

Service Charges and Fees 735 806 -9% 858
-14%
Electronic Banking Income 367 363 1% 310
18%
Investment Products 50 164 -69% 170
-71%
Bank Owned Life Insurance

Income 82 (158) -152% 94
-13%
Income from the Sale of Loans 141 157 -10% 270
-48%
SBA Premium Income 46 98 -53% 18
156%

Other Income 322 307 5% 283
14%
------------------------------- ----------- ----------- ------ ----------
------
Total Noninterest Income 1,743 1,737 0% 2,003
-13%

Noninterest Expense

Compensation and Employee

Benefits 4,329 3,875 12% 3,424
26%
Occupancy and Equipment 1,027 1,041 -1% 1,033
-1%
Office Supplies and Printing 210 223 -6% 171
23%
Data Processing 211 137 54% 131
61%
FDIC Premiums 252 268 -6% 147
71%
OREO & Repossession Expenses 193 549 -65% 238
-19%
Consulting and Professional

Fees 268 246 9% 256
5%

Other 1,285 1,284 0% 1,146
12%
------------------------------- ----------- ----------- ------ ----------
------
Total Noninterest Expense 7,775 7,623 2% 6,546
19%

Income Before Income Taxes 2,799 2,657 5% 2,336
20%

Provision for Income Taxes 804 921 -13% 762
6%
------------------------------- ----------- ----------- ------ ----------
------
Net Income Before Preferred

Dividends 1,995 1,736 15% 1,574
27%

Preferred Dividends 414 414 0% 359
15%
------------------------------- ----------- ----------- ------ ----------
------

Net Income available to common

shareholders $ 1,581 $ 1,322 20% $ 1,215
30%
=============================== =========== =========== ====== ==========
======
Earnings per Common Share

Net Income per Common Share,

Basic $ 0.10 $ 0.12 -8% $ 0.13
-15%
=============================== =========== =========== ====== ==========
======

Net Income per Common Share,

Diluted $ 0.10 $ 0.11 0% $ 0.13
-15%
=============================== =========== =========== ====== ==========
======

Average Number of Common Shares

Outstanding 15,297,000 11,481,000 9,507,000

Fully Diluted Average Common

and Equivalent Shares

Outstanding 15,430,000 11,672,000 9,527,000

FINANCIAL STATISTICS (unaudited)

-----------------------------------------

($ in thousands, except per share data)

Quarter

Quarter Ended Quarter

Ended December Ended

March 31, 31, March
31,
2010 2009 2009

----------------------------------------- ------------ ----------
----------

Revenues (1) (2)

----------------------------------------- $ 12,932 $ 12,724 $
11,473

Averages

-----------------------------------------

Total Assets $ 1,031,197 $ 983,955 $
904,437
Loans and Loans Held for Sale 820,578 816,218
825,694
Interest Earning Assets 973,250 929,287
851,100
Deposits 833,314 818,880
750,807
Common Shareholders' Equity $ 134,333 $ 102,037 $
80,897

Financial Ratios

-----------------------------------------

Return on Average Assets, Annualized 0.78% 0.70%
0.71%
Return on Average Common Equity,

Annualized (3) 4.77% 5.16%
6.10%
Efficiency Ratio (2) 60.12% 59.90%
57.07%
Yield on Earning Assets (2) 5.79% 5.99%
6.36%
Cost of Interest Bearing Liabilities 1.44% 1.61%
2.23%
Net Interest Spread 4.35% 4.38%
4.13%
Net Interest Margin (2) 4.66% 4.69%
4.51%

Tangible Book Value Per Common Share $ 8.85 $ 8.79 $
8.71
Tangible Common Equity 12.94% 12.86%
9.03%

Regulatory Requirements

-------------------------

December

March 31, 31, March
31, Adequately- Well-
2010 2009 2009
capitalized capitalized
----------------------------------------- ------------ ----------
---------- ------------ -----------
Period End

Total Risk-Based Capital Ratio -

Consolidated 21.59% (4) 22.15%
16.19% 8.00% N/A
Tier 1 Risk-Based Capital Ratio -

Consolidated 20.35% (4) 20.89%
14.94% 4.00% N/A

Tier 1 Leverage Ratio - Consolidated 18.08% (4) 18.73%
14.66%
----------------------------------------- ------------ ----------
---------- 4.00% N/A
Total Risk-Based Capital Ratio - Whidbey

Island Bank 21.39% (4) 21.55%
16.01% 8.00% 10.00%
Tier 1 Risk-Based Capital Ratio - Whidbey

Island Bank 20.13% (4) 20.29%
14.76% 4.00% 6.00%

Tier 1 Leverage Ratio - Whidbey Island

Bank 17.55% (4) 18.17%
14.48%
----------------------------------------- ------------ ----------
---------- 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 adjusted for preferred stock dividends

(4) Capital ratios for the most recent period are an estimate pending filing
of the Company's regulatory
reports.

ASSET QUALITY (unaudited)
-----------------------------
($ in thousands, except per
share data)

Quarter
Quarter Ended Quarter
Ended December Ended
March 31, 31, March 31,
2010 2009 2009
----------------------------- ----------- ----------- -----------
Allowance for Loan Losses
Activity:
Balance at Beginning of
Period $ 16,212 $ 15,882 $ 12,250
Indirect Loans:
Charge-offs (406) (635) (649)

Recoveries 218 182 204
----------------------------- ----------- ----------- -----------
Indirect Net Charge-offs (188) (453) (445)

Other Loans:
Charge-offs (1,914) (1,674) (1,132)

Recoveries 204 207 200
----------------------------- ----------- ----------- -----------
Other Net Charge-offs (1,710) (1,467) (932)

Total Net Charge-offs (1,898) (1,920) (1,377)

Provision for Loan Losses 2,150 2,250 2,450
----------------------------- ----------- ----------- -----------

Balance at End of Period $ 16,464 $ 16,212 $ 13,323
============================= =========== =========== ===========

Net Charge-offs to Average
Loans:
Indirect Loans Net
Charge-Offs, to Avg Indirect
Loans, Annualized (1) 0.77% 1.71% 1.68%
Other Loans Net Charge-Offs,
to Avg Other Loans,
Annualized (1) 0.97% 0.82% 0.53%
Net Charge-offs to Average
Total Loans (1) 0.94% 0.94% 0.68%

December
March 31, 31, March 31,
2010 2009 2009
----------------------------- ----------- ----------- -----------

Nonperforming Assets
-----------------------------
Nonperforming Loans (2) $ 3,692 $ 3,395 $ 8,474

Other Real Estate Owned $ 4,937 4,549 1,799
----------------------------- ----------- ----------- -----------

Total Nonperforming Assets $ 8,629 $ 7,944 $ 10,273
============================= =========== =========== ===========
Nonperforming Loans to Loans
(1) 0.45% 0.42% 1.02%
Nonperforming Assets to
Assets 0.83% 0.76% 1.12%
Allowance for Loan Losses to
Nonperforming Loans 445.92% 477.51% 157.22%
Allowance for Loan Losses to
Loans 2.00% 1.99% 1.61%

Loan Composition
-----------------------------
Commercial $ 132,569 $ 93,295 $ 98,503
Real Estate Mortgages
One-to-Four Family
Residential 51,605 53,313 61,946
Commercial 345,925 360,745 334,236
Real Estate Construction
One-to-Four Family
Residential 71,665 76,046 93,587
Commercial 34,459 34,231 44,206
Consumer
Indirect 96,569 100,697 106,139
Direct 86,432 93,051 87,877
Deferred Fees 2,393 2,474 2,648

Total Loans $ 821,617 $ 813,852 $ 829,142
============================= =========== =========== ===========

Time Deposit Composition
-----------------------------
Time Deposits $100,000 and
more 144,768 151,018 162,698
All other time deposits 169,146 170,399 172,188
Brokered Deposits
CDARS (Certificate of
Deposit Account Registry
Service) 22,565 21,416 12,104
Non-CDARS -- 7,500 7,500

Total Time Deposits $ 336,479 $ 350,333 $ 354,490
============================= =========== =========== ===========
(1) Excludes Loans Held for Sale.
(2) Nonperforming loans includes nonaccrual loans plus accruing
loans 90 or more days past due.

CONTACT: Washington Banking Company
Jack Wagner, President & CEO
Rick A. Shields, EVP & Chief Financial Officer
360.679.3121