Washington Banking Company (WBCO, Financial) filed Quarterly Report for the period ended 2010-06-30.
Washington Banking Company has a market cap of $212.25 million; its shares were traded at around $13.87 with a P/E ratio of 22.74 and P/S ratio of 3.42. The dividend yield of Washington Banking Company stocks is 0.87%.
During the first six months of 2010, the Company recorded a $4.7 million provision for loan losses compared to $5.5 million in the same period in 2009. Changes in the provision were due to higher net charge-offs of $3.9 million in the first six months of 2010, compared with $2.9 million in the same period in 2009.
Increase in income from the sale of SBA loans is due to the sales in the second quarter of 2010. In the second quarter of 2009, the Company did not sell any SBA loans due to unfavorable premiums for SBA loans in the secondary financial market. Change in FDIC indemnification asset represents changes in the cash flows of the covered assets acquired in the City acquisition. Increases and decreases to the FDIC indemnification asset are recorded as adjustments to noninterest income. The bargain purchase gain of $1.8 million ($1.1 million after tax) represents the excess of the estimated fair value of the assets acquired over the estimated fair value of liabilities in the City Acquisition. The changes in noninterest income in the first six months of 2010 compared to 2009 were related to the following areas:
§ Salaries and employee benefits costs increased $2.9 million in the second quarter. Approximately $1.0 million of the increase is the result of the City Acquisition and the remainder primarily results from the increase in full-time equivalent employees.
Total assets at June 30, 2010 were $1.6 billion compared to $1.0 billion at December 31, 2009. The increase in total assets was primarily due to the City Acquisition. The City Acquisition added an additional $715.1 million in assets to the Companys balance sheet at the time of closing. Excluding the City Acquisition non-covered loans increased to $832.2 million compared to $813.9 million at December 31, 2009. Deposits, excluding the City Acquisition were $847.0 million at June 30, 2010 compared to $846.7 million at December 31, 2009.
Total investment securities increased $75.2 million to $156.1 million at June 30 2010. The increase was a result of the Company actively adding investment securities during the first half of 2010 due to decreased loan demand and additional cash proceeds from the City Acquisition. As part of the City Acquisition, the Company acquired $9.1 million in investments at April 16, 2010, consisting of $5.1 million in U.S. government agency securities and $4.0 million in investments in mutual funds and other equity securities.
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Washington Banking Company has a market cap of $212.25 million; its shares were traded at around $13.87 with a P/E ratio of 22.74 and P/S ratio of 3.42. The dividend yield of Washington Banking Company stocks is 0.87%.
Highlight of Business Operations:
During the second quarter of 2010, the Company recorded a $2.6 million provision for loan losses compared to $3.0 million for the second quarter in 2009. Net charge-offs for second quarter of 2010 were $2.0 million, a $486,000 increase over the second quarter of 2009. Increases in net charge-offs were due to an increase in real estate loan charge-offs. At June 30, 2010, the allowance for loan losses as a percent of total loans was 2.04% as compared to 1.80% at June 30, 2009.During the first six months of 2010, the Company recorded a $4.7 million provision for loan losses compared to $5.5 million in the same period in 2009. Changes in the provision were due to higher net charge-offs of $3.9 million in the first six months of 2010, compared with $2.9 million in the same period in 2009.
Increase in income from the sale of SBA loans is due to the sales in the second quarter of 2010. In the second quarter of 2009, the Company did not sell any SBA loans due to unfavorable premiums for SBA loans in the secondary financial market. Change in FDIC indemnification asset represents changes in the cash flows of the covered assets acquired in the City acquisition. Increases and decreases to the FDIC indemnification asset are recorded as adjustments to noninterest income. The bargain purchase gain of $1.8 million ($1.1 million after tax) represents the excess of the estimated fair value of the assets acquired over the estimated fair value of liabilities in the City Acquisition. The changes in noninterest income in the first six months of 2010 compared to 2009 were related to the following areas:
§ Salaries and employee benefits costs increased $2.9 million in the second quarter. Approximately $1.0 million of the increase is the result of the City Acquisition and the remainder primarily results from the increase in full-time equivalent employees.
Total assets at June 30, 2010 were $1.6 billion compared to $1.0 billion at December 31, 2009. The increase in total assets was primarily due to the City Acquisition. The City Acquisition added an additional $715.1 million in assets to the Companys balance sheet at the time of closing. Excluding the City Acquisition non-covered loans increased to $832.2 million compared to $813.9 million at December 31, 2009. Deposits, excluding the City Acquisition were $847.0 million at June 30, 2010 compared to $846.7 million at December 31, 2009.
Total investment securities increased $75.2 million to $156.1 million at June 30 2010. The increase was a result of the Company actively adding investment securities during the first half of 2010 due to decreased loan demand and additional cash proceeds from the City Acquisition. As part of the City Acquisition, the Company acquired $9.1 million in investments at April 16, 2010, consisting of $5.1 million in U.S. government agency securities and $4.0 million in investments in mutual funds and other equity securities.
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