Washington Banking Increases Quarterly Dividend

OAK HARBOR, Wash., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Washington Banking Company
(Nasdaq:WBCO), the holding company for Whidbey Island Bank, announced today that
it increased the quarterly cash dividend to common shareholders by 67%. The
Board declared a regular cash dividend of $0.05 per common share, payable
November 24 to common shareholders of record on November 8, 2010. This is the
50th consecutive quarter that Washington Banking has paid a cash dividend to
holders of common stock.

In a separate release today, Washington Banking reported third quarter results,
including earnings of $0.86 per diluted common share for the 2010 third quarter.
Management will host a conference call on Friday, October 29, 2010 at 10:00 a.m.
Pacific time (1:00 p.m. Eastern) to discuss their third quarter performance.
This call will also be broadcast live via the internet. Investment professionals
and all current and prospective shareholders are invited to access the live call
on Friday, 10/29/10 by dialing (480) 629-9722 for conference ID #4365056. 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 #4365056.

Direct deposit of dividends is available for registered holders of WBCO. The
quickest way for registered holders to have their dividends deposited directly
into a transaction account is to log-in to the "Investor Centre" area of the
transfer agent's website at www.computershare.com. Registered holders of WBCO
shares may also enroll in this service by calling Computershare at
1-800-962-4284 and requesting an enrollment form.

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 30 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
North County Bank operations, employees and customers, future operating
results, 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 CityBank and/or North County
Bank customers or employees and expenses associated with the integration of
acquired 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.

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