Banking

Washington Banking of Oak Harbor, the parent of Whidbey Island Bank, reported a $1.6 million profit for the first quarter, aided by income from loan sales and investment income After subtracting a $359,000 dividend payment to the U.S. government, which has invested $26.4 million in Whidbey Island Bank through its Troubled Asset Relief Program, the holding company's profit allocated to common shareholders worked out to $1.2 million, or 13 cents a common share. A year earlier, the company earned $2.3 million, or 25 cents a share.
The company's loan portfolio grew to $829.1 million as of March 31, up 1.7 percent from a year assets, consisting mainly of delinquent loans and repossessed real estate, grew to $10.3 million at quarter's end, versus $4.1 million at the end of 2008 and $3.3 million a year earlier.
Still, nonperforming assets were just 1.12 percent of total assets.Washington Banking set aside $2.45 million in the quarter to cover loans expected to go bad in the future, up from $1.9 million in the previous quarter and just over a million in the first quarter of 2008.
The company reported its results after the close of regular Nasdaq trading, during which the shares gained 28 cents to close at $7.74.