On November 12, 2009, the shareholders of Washington Banking Co. approved an amendment to the Company�s Amended and Restated Articles of Incorporation increasing the number of authorized shares of the Company�s common stock to 35,000,000. The amendment was filed with the Secretary of State of the State of Washington on November 12, 2009.

Washington Banking Co. reported earnings results for the third quarter ended September 30, 2009. For the quarter, the company reported income available to common shareholders of $1.3 million or $0.13 per diluted common share, up from $818,000 or $0.09 per diluted common share in the quarter ended June 30, 2009, but down from $1.9 million or $0.20 per diluted common share in the third quarter a year ago. The company announced that its board of directors declared a regular cash dividend of $0.025 per common share. The dividend is payable November 19, to common shareholders of record on November 3, 2009.

Washington Banking Co. announced unaudited consolidated financial results for the third quarter and first nine months ended September 30, 2009. For the quarter, the company's net interest income, before the provision for loan losses, grew 9% to $10.4 million in the third quarter from $9.6 a year ago and increased 6% from the linked quarter of $9.8 million. Income before income tax was $1.7 million against $2.8 million for the same period a year ago. Net income was $1.7 million compared to $1.2 million for the same period a year ago. The company reported another profitable quarter with consistent core deposit growth, strong capital ratios and efficient operations. Bolstered by premiums received from loan sales and new account fees, revenue (fully tax equivalent) was $12.5 million in the third quarter of 2009, compared to $12.0 million for the second quarter and $11.6 million a year ago. Return on average assets and return on average common equity were 0.70% and 5.95%, respectively, for the third quarter of 2009 compared to the 0.85% and 9.70%, respectively, for the same period a year ago. The company reported net income available to common shareholders of $1.259 million or $0.13 per diluted share compared to the net income available to common shareholders of $1.904 million or $0.20 per diluted share for the same period a year ago. The company reported total interest income of $13.877 million compared to the total interest income of $14.577 million for the same peirod a year ago. For the first nine months of 2009, the company's net income available to common shareholders was $3.3 million, or $0.35 per diluted common share, compared to $6.7 million, or $0.70 per diluted common share in the first nine months of 2008. Year-to-date, preferred dividend payments totaled $1.2 million and there were no preferred dividends paid in 2008. Book value per common share increased 7% to $8.87 compared to $8.32. Year-to-date revenue increased 5% to $36.0 million from $34.1 million in the first nine months a year ago. Net interest income before provision for loan losses increased 4% to $29.6 million from $28.5 million a year ago. Income before income tax was $6.4 million compared to $9.8 million for the same period a year ago. Net income was $4.5 million against $6.7 million for the same period a year ago. Return on average assets and return on average common equity were 0.65% and 5.34%, respectively, for the first nine months of 2009, compared to the 5.34% and 11.68%, respectively, for the same period a year ago. The company reported total interest income of $40.570 million compared to the total interest income of $44.637 million for the same period a year ago.