EX-99.1 2 f8kwabaco4qea012809ex991.htm EXHIBIT 99.1 f8kwabaco4qea012809.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 99.1


     Washington Banking Company Earns $8.3 Million, or $0.88 Per Diluted Share in 2008

OAK HARBOR, WA – January 28, 2009 – Washington Banking Company (NASDAQ: WBCO), the holding company for Whidbey Island Bank, today reported that its well-diversified loan portfolio and strong capital ratios contributed to a profitable quarter. Washington Banking earned $1.7 million, or $0.18 per diluted share, in the quarter ended December 31, 2008, compared to $1.9 million, or $0.19 per diluted share, in the fourth quarter a year ago. In 2008, net income was $8.3 million, or $0.88 per diluted share, compared to $9.4 million, or $0.99 per diluted share in 2007.

“Our core strengths and consistent operating practices are reflected in our solid balance sheet, strong capital position and diversified loan portfolio,” said Jack Wagner, President and CEO. “We achieved these respectable results in spite of the continued deterioration in the overall economy.”

Conference Call Information
Management will host a conference call tomorrow, January 29, 2009, at 10:00 AM PST (1:00 noon EST) to discuss the quarterly results. The live call can be accessed by dialing (303) 262-2053 or on the web at www.wibank.com. The replay, which will be available for 90 days beginning shortly after the call concludes, can be heard at (303) 590-3000 with access code 11124816#, or on the web at www.wibank.com.

Fourth Quarter 2008 Financial Highlights (December 31, 2008, compared to December 31, 2007)

  • Capital ratios remained well above the regulatory requirements for well-capitalized institutions, with Tier 1 Capital to risk-adjusted assets of 11.98% compared to 11.14%.
  • Continued strong asset quality with nonperforming assets to total assets at 0.46% from 0.48%.
  • Total net loans increased 2% to $811 million from $795 million.
  • Book value per share increased 9% to $8.47 compared to $7.78.
  • Continued payment of quarterly cash dividends equivalent to an annual dividend of $0.26 per common share, with a yield of 3.2% at recent share prices.
  • Core deposits, consisting of transaction accounts and CDs under $100,000, totaled $561.1 million and accounted for 75% of total deposits.

Credit Quality
 “Considering the difficult market conditions, our asset quality has remained above average,” said Joe Niemer, Chief Credit Officer. “Like other banks in the area, we are seeing stress in our construction portfolio and higher credit costs in our indirect loan program, although at manageable levels.” Nonperforming assets totaled $4.1 million, or 0.46% of total assets at December 31, 2008, compared to $4.6 million, or 0.50% of total assets at September 30, 2008, and $4.3 million, or 0.48% of total assets, a year ago. “Our NPAs continue to be limited to a handful of relationships and our loan portfolio remains well diversified by borrowers, loan type and geography within our operating area in Northwest Washington.” Nonperforming assets consist of nonaccrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned (OREO).

(more)

  WBCO – 4Q08 Profits
January 28, 2009
Page 2

The allowance for loan losses increased to $12.3 million, or 1.49% of total loans at quarter end, compared to $11.1 million or 1.38% at December 31, 2007, in part, reflecting growth in the loan portfolio and deteriorating market conditions.

Net charge-offs in the fourth quarter were $1.1 million, or 55 basis points of average loans, compared to $429,000, or 21 basis points of average loans for the same period a year ago. In 2008, net charge-offs were $3.9 million, or 48 basis points, compared to $1.9 million, or 25 basis points for 2007. Net charge-offs in the indirect lending portfolio were $507,000 in the fourth quarter and $1.4 million for the year, reflecting the softening in the local economy. “Our indirect consumer loan program provides funding for new and used vehicles to creditworthy customers,” Niemer noted. “In 2008, the average FICO credit score was 709 in this portfolio and we continue to maintain strong underwriting criteria.” The indirect consumer portfolio was $108.3 million compared to $110.2 million at September 30, 2008, and $114.3 million a year ago, reflecting the reduced demand for auto loans.”

Capital
Washington Banking’s Tier 1 capital ratio was 11.98% at December 31, 2008, compared with 11.81% from the linked quarter and 11.14% at December 31, 2007. The total risk-based ratio was 13.23% at December 31, 2008, compared with 13.06% from the previous quarter and 12.45% at December 31, 2007. All regulatory ratios continue to exceed the “well-capitalized” requirements established by regulators. Washington Banking’s tangible equity at year end was equal to 8.9% of total assets.

Last week, the company announced a quarterly cash dividend of $0.065 per common share payable on February 19 to shareholders of record on February 3, 2009. “As a result of the solid performance in 2008, which reflects our strong capital position, we are able to continue to reward our shareholders with quarterly cash dividends,” Wagner noted. Washington Banking has paid a quarterly cash dividend since its 1998 initial public offering.

Balance Sheet
 “We continue to maintain strong capital, adequate liquidity and a well-managed loan portfolio,” stated Wagner. “Due to the strength of our organization and balance sheet, we were selected to participate in the Treasury’s Capital Purchase Program, and received $26.38 million in funding this month. We plan to continue to lend to creditworthy customers in our markets for business and consumer needs.”

At December 31, 2008, total assets increased 2% to $900 million compared to $882 million a year ago. Total net loans also grew 2% to $811 million from $795 million a year ago, and remained relatively flat from $812 million at the end of the third quarter 2008.

Total deposits were down 1% to $747 million at December 31, 2008 compared to $758 million a year ago and down 5% from $784 million at September 30, 2008. Money market accounts decreased 9% from the end of the linked quarter but grew 8% year-over-year. Time deposits were evenly balanced between certificates under $100,000 and certificates over $100,000 with a very small component of brokered deposits. “We initiated service to our customers last year through the Certificate of Deposit Account Registry Service (CDARS), which allows us to help customers maximize FDIC insurance coverage,” stated Rick Shields, Chief Financial Officer.

Shareholder equity increased 10% to $80.6 million, or $8.47 per share, at December 31, 2008, compared to $73.6 million, or $7.78 per share, a year ago. Following the $26.38 million capital infusion from the preferred shares issued to the U.S. Treasury the pro forma total shareholders’ equity was $106.9 million.

  WBCO – 4Q08 Profits
January 28, 2009
Page 3

Operating Results
Revenue, consisting of net interest income and noninterest income, was $11.2 million in the fourth quarter of 2008, compared to $11.6 million for the third quarter and $11.4 million in the fourth quarter of 2007. For the 2008 full year, revenue was down slightly at $45.2 million compared to $45.7 million in 2007. Net interest income, before the provision for loan losses, decreased 1% to $9.5 million in the fourth quarter of 2008 from $9.6 million in the previous quarter and was flat compared to $9.5 million in the fourth quarter a year ago. For the year, net interest income, before provision for loan losses, increased modestly to $37.9 million in 2008 compared to $37.6 million for 2007.

Net interest margin was 4.50% in the fourth quarter of 2008, down 12 basis points from the linked quarter of 4.62%, and down 21 basis points from 4.71% in the same quarter a year ago. For the full year, Washington Banking’s net interest margin stood at 4.60% compared to 4.89% in 2007.

Noninterest expense for the fourth quarter dropped 14% to $6.7 million compared with $7.9 million in the same quarter of 2007. Noninterest expense for the year fell 3% to $27.5 million compared to $28.5 million for 2007. Included in the 2008 operating expenses were $1.1 million in costs associated with the terminated merger agreement and employee separation expense, which included the retirement of the former CEO. In 2007, costs associated with the merger were $513,000.

The efficiency ratio during the fourth quarter of 2008 was 60.22%, compared to 65.26% reported in the linked quarter, and 68.61% at December 2007. For the year 2008, the efficiency ratio was 60.90% compared to 62.31% for 2007. Return on average assets and return on average equity were 0.74% and 8.37%, respectively, for the fourth quarter of 2008 and 0.94% and 10.82%, respectively, for the reporting year.

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 19 full-service branches located in five counties in Northwestern Washington.

www.wibank.com

This press release contains statements that the Company believes are “forward-looking statements.” These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance or business. The words “anticipate,” “expect,” “will,” “believe,” and words of similar meaning are intended, in part, to help identify forward-looking statements. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. These statements speak only as of the date they are made and based only on information then actually known to the Company. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially include, but are not limited to: adverse developments in the capital markets; legislative or regulatory requirements affecting financial institutions; restructuring of the regulation of the financial services industry; changes in the interest rate environment; adverse changes in regional and national economic conditions and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and Form 10-Q for quarters ended March 31, 2008 and September 30, 2008. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

WBCO – 4Q08 Profits                     
January 28, 2009                     

Page 4
 
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)    Quarter Ended    Quarter Ended    Three    Quarter Ended    One 
($ in thousands, except per share data)    December 31,    September 30,    Month    December 31,    Year 
    2008    2008    Change    2007    Change 
Interest Income                     
 Loans    $ 13,968    $ 14,432    -3%    $ 15,813    -12% 
 Taxable Investment Securities    103    88    16%    135    -24% 
 Tax Exempt Securities    52    51    1%    59    -13% 
 Other    22    6    287%    21    9% 
       Total Interest Income    14,145    14,577    -3%    16,028    -12% 
 
Interest Expense                     
   Deposits    4,195    4,411    -5%    6,017    -30% 
   Other Borrowings    199    276    -28%    62    222% 
   Junior Subordinated Debentures    279    286    -2%    471    -41% 
       Total Interest Expense    4,673    4,973    -6%    6,550    -29% 
 
Net Interest Income    9,472    9,604    -1%    9,478    0% 
 
   Provision for Loan Losses    1,900    1,075    77%    800    138% 
       Net Interest Income after Provision for Loan Losses    7,572    8,529    -11%    8,678    -13% 
 
Noninterest Income                     
   Service Charges and Fees    841    708    19%    772    9% 
   Electronic Banking Income    316    356    -11%    329    -4% 
   Investment Products    78    93    -16%    69    14% 
   Bank Owned Life Insurance Income    73    11    561%    153    -53% 
   Income from the Sale of Loans    46    36    27%    109    -58% 
   SBA Premium Income    20    50    -59%    156    -87% 
   Other Income    205    621    -67%    221    -7% 
       Total Noninterest Income    1,579    1,875    -16%    1,809    -13% 
 
Noninterest Expense                     
   Compensation and Employee Benefits    3,644    3,940    -8%    4,373    -17% 
   Occupancy and Equipment    966    944    2%    938    3% 
   Office Supplies and Printing    170    162    5%    103    65% 
   Data Processing    156    155    0%    170    -8% 
   Consulting and Professional Fees    325    107    204%    294    11% 
   Employee Separation Expense    58    816    -93%    -    100% 
   Merger Related Expenses    18    64    -72%    513    -97% 
   Other    1,398    1,390    1%    1,460    -4% 
       Total Noninterest Expense    6,735    7,578    -11%    7,851    -14% 
 
Income Before Income Taxes    2,416    2,825    -14%    2,636    -8% 
Provision for Income Taxes    746    921    -19%    785    -5% 
Net Income    $ 1,670    $ 1,904    -12%    $ 1,851    -10% 
Earnings per Common Share                     
   Net Income per Share, Basic    $ 0.18    $ 0.20    -10%    $ 0.19    -5% 
   Net Income per Share, Diluted    $ 0.18    $ 0.20    -10%    $ 0.19    -5% 
 
Average Number of Common Shares Outstanding    9,486,000    9,473,000        9,365,000     
Fully Diluted Average Common and Equivalent Shares Outstanding    9,513,000    9,518,000        9,500,000     

WBCO – 4Q08 Profits                     
January 28, 2009                     
Page 5                     
 
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)    Twelve Months Ended    One 
($ in thousands, except per share data)        December 31,        Year 
    2008            2007    Change 
Interest Income                     
 Loans    $ 58,144    $ 61,385    -5% 
 Taxable Investment Securities        397        547    -27% 
 Tax Exempt Securities        205        263    -22% 
 Other        36        173    -79% 
       Total Interest Income    58,782        62,368    -6% 
 
Interest Expense                     
   Deposits    18,442        22,669    -19% 
   Other Borrowings    1,138        379    201% 
   Junior Subordinated Debentures    1,254        1,762    -29% 
       Total Interest Expense    20,834        24,810    -16% 
 
Net Interest Income    37,948        37,558    1% 
 
   Provision for Loan Losses    5,050        3,000    68% 
       Net Interest Income after Provision for Loan Losses    32,898        34,558    -5% 
 
Noninterest Income                     
   Service Charges and Fees    2,987        3,135    -5% 
   Electronic Banking Income    1,333        1,252    6% 
   Investment Products        338        364    -7% 
   Bank Owned Life Insurance Income        306        587    -48% 
   SBA Premium Income        259        490    -47% 
   Income from the Sale of Loans        223        667    -67% 
   Other Income    1,440        995    45% 
       Total Noninterest Income    6,886        7,490    -8% 
 
Noninterest Expense                     
   Compensation and Employee Benefits    15,373        17,082    -10% 
   Occupancy and Equipment    3,762        3,805    -1% 
   Office Supplies and Printing        572        558    3% 
   Data Processing        625        663    -6% 
   Consulting and Professional Fees        794        735    8% 
   Employee Separation Expense        874        -    100% 
   Merger Related Expenses        266        513    -48% 
   Other    5,257        5,115    3% 
       Total Noninterest Expense    27,523        28,471    -3% 
 
Income Before Income Taxes    12,261        13,577    -10% 
Provision for Income Taxes    3,929        4,179    -6% 
Net Income    $ 8,332    $ 9,398    -11% 
Earnings per Common Share                     
   Net Income per Share, Basic    $ 0.88    $ 1.00    -12% 
   Net Income per Share, Diluted    $ 0.88    $ 0.99    -11% 
 
Average Number of Common Shares Outstanding    9,465,000        9,365,000     
Fully Diluted Average Common and Equivalent Shares Outstanding    9,513,000        9,493,000     

WBCO – 4Q08 Profits                     
January 28, 2009                     
Page 6                     
 
CONSOLIDATED BALANCE SHEETS (unaudited)            Three        One 
($ in thousands except per share data)    December 31,    September 30,    Month    December 31,    Year 
    2008    2008    Change    2007    Change 
Assets                     
Cash and Due from Banks    $ 13,609    $ 19,202    -29%    $ 18,795    -28% 
Interest-Bearing Deposits with Banks    381    451    -16%    257    48% 
Fed Funds Sold    -    17,410    -100%    -    0% 
   Total Cash and Cash Equivalents    13,990    37,063    -62%    19,052    -27% 
 
Investment Securities Available for Sale    17,798    10,781    65%    13,832    29% 
 
FHLB Stock    2,430    2,880    -16%    1,984    22% 
 
Loans Held for Sale    2,896    995    191%    2,347    23% 
 
Loans Receivable    823,068    823,089    0%    805,862    2% 
   Less: Allowance for Loan Losses    (12,250)    (11,488)    7%    (11,126)    10% 
Loans, Net    810,818    811,601    0%    794,736    2% 
 
Premises and Equipment, Net    24,971    24,476    2%    25,138    -1% 
Bank Owned Life Insurance    16,822    16,750    0%    16,517    2% 
Other Real Estate Owned    2,226    669    233%    1,440    55% 
Other Assets    7,680    7,247    6%    7,243    6% 
Total Assets    $ 899,631    $ 912,462    -1%    $ 882,289    2% 
 
Liabilities and Shareholders' Equity                     
Deposits:                     
   Noninterest-Bearing Demand    $ 91,482    $ 90,183    1%    $ 101,539    -10% 
   NOW Accounts    119,115    121,503    -2%    140,145    -15% 
   Money Market    143,855    157,614    -9%    133,265    8% 
   Savings    41,161    41,645    -1%    41,888    -2% 
   Time Deposits    351,546    372,796    -6%    341,517    3% 
Total Deposits    747,159    783,741    -5%    758,354    -1% 
FHLB Overnight Borrowings    11,640    -    100%    20,500    -43% 
Other Borrowed Funds    30,000    20,000    50%    -    100% 
Junior Subordinated Debentures    25,774    25,774    0%    25,774    0% 
Other Liabilities    4,498    3,964    13%    4,091    10% 
   Total Liabilities    819,071    833,479    -2%    808,719    1% 
 
Shareholders' Equity:                     
Common Stock (no par value)                     
   Authorized 13,679,757 Shares:                     
   Issued and Outstanding 9,510,007 at 12/31/08                     
   9,488,101 at 9/30/08 and 9,453,767 at 12/31/07    33,701    33,384    1%    32,812    3% 
Retained Earnings    46,567    45,513    2%    40,652    15% 
Other Comprehensive Income    292    86    241%    106    174% 
   Total Shareholders' Equity    80,560    78,983    2%    73,570    10% 
Total Liabilities and Shareholders' Equity    $ 899,631    $ 912,462    -1%    $ 882,289    2% 

WBCO – 4Q08 Profits                     
January 28, 2009                     
Page 7                     
 
ASSET QUALITY (unaudited)    Quarter Ended    Quarter Ended    Quarter Ended    Twelve Months Ended 
($ in thousands, except per share data)    December 31,    September 30,    December 31,    December 31, 
    2008    2008    2007    2008    2007 
 
 Allowance for Loan Losses Activity:                     
 
Balance at Beginning of Period    $ 11,488    $ 11,585    $ 10,755    $ 11,126    $ 10,048 
     Indirect Loans:                     
           Charge-offs    (691)    (638)    (423)    (2,023)    (1,020) 
           Recoveries    184    111    144    583    343 
Indirect Net Charge-offs    (507)    (527)    (279)    (1,440)    (677) 
 
     Other Loans:                     
           Charge-offs    (1,151)    (798)    (288)    (3,381)    (1,762) 
           Recoveries    520    153    138    895    517 
Other Net Charge-offs    (631)    (645)    (150)    (2,486)    (1,245) 
 
                       Total Net Charge-offs    (1,138)    (1,172)    (429)    (3,926)    (1,922) 
Provision for Loan Losses    1,900    1,075    800    5,050    3,000 
Balance at End of Period    $ 12,250    $ 11,488    $ 11,126    $ 12,250    $ 11,126 
     Net Charge-offs to Average Loans:                     
Indirect Loans Net Charge-Offs, to Avg Indirect Loans, Annualized (1)    1.82%    1.89%    0.99%    1.30%    0.61% 
Other Loans Net Charge-Offs, to Avg Other Loans, Annualized (1)    0.35%    0.36%    0.09%    0.35%    0.19% 
Net Charge-offs to Average Total Loans (1)    0.55%    0.57%    0.21%    0.48%    0.25% 
    December 31,    September 30,    December 31,         
    2008    2008    2007         
   
Nonperforming Assets                     
 
   Nonperforming Loans (2)    $ 1,918    $ 3,888    $ 2,839         
   Other Real Estate Owned    2,226    669    1,440         
   
     Total Nonperforming Assets    $ 4,144    $ 4,557    $ 4,279         
   
 
Nonperforming Loans to Loans (1)    0.23%    0.47%    0.35%         
Nonperforming Assets to Assets    0.46%    0.50%    0.48%         
Allowance for Loan Losses to Nonperforming Loans    638.67%    295.46%    391.90%         
Allowance for Loan Losses to Loans    1.49%    1.40%    1.38%         
 
Loan Composition                     
 Commercial    $ 94,522    $ 93,821    $ 102,284         
 Real Estate Mortgages                     
       One-to-Four Family Residential    58,099    55,984    56,636         
       Commercial    327,704    325,314    296,902         
 Real Estate Construction                     
       One-to-Four Family Residential    101,022    104,505    101,912         
       Commercial    44,401    45,147    44,735         
 Consumer                     
       Indirect    108,266    110,239    114,271         
       Direct    86,364    85,321    86,716         
Deferred Loan Costs, net    2,690    2,758    2,406         
   
Total Loans    $ 823,068    $ 823,089    $ 805,862         
   
 
Time Deposit Composition                     
 Time Deposits less than or equal to $100    $ 165,475    $ 168,833    $ 150,667         
 Time Deposits greater than $100    163,344    192,083    180,850         
 Brokered Deposits                     
       CDARS (Certificate of Deposit Account Registry Service)    12,727    1,880    -         
       Non-CDARS    10,000    10,000    10,000         
   
Total Time Deposits    $ 351,546    $ 372,796    $ 341,517         
   

(1)      Excludes Loans Held for Sale.
(2) Nonperforming loans includes nonaccrual loans plus accruing loans 90 or more days past due.
 
WBCO – 4Q08 Profits                     
January 28, 2009                     
Page 8                     
 
FINANCIAL STATISTICS (unaudited)    Quarter Ended    Quarter Ended    Quarter Ended    Twelve Months Ended 
($ in thousands, except per share data)    December 31,    September 30,    December 31,    December 31, 
    2008    2008    2007    2008    2007 
Revenues (1) (2)    $ 11,184    $ 11,613    $ 11,443    $ 45,194    $ 45,694 
 
Averages                     
   Total Assets    $ 901,487    $ 889,483    $ 867,357    $ 890,589    $ 836,738 
   Loans and Loans Held for Sale    823,217    820,425    791,546    819,468    759,242 
   Interest Earning Assets    849,210    835,704    810,783    837,456    781,296 
   Deposits    766,362    748,375    759,676    748,649    732,107 
   Shareholders' Equity    $ 79,402    $ 78,084    $ 72,439    $ 76,998    $ 69,488 
 
Financial Ratios                     
   Return on Average Assets, Annualized    0.74%    0.85%    0.85%    0.94%    1.12% 
   Return on Average Equity, Annualized    8.37%    9.70%    10.14%    10.82%    13.53% 
   Average Equity to Average Assets    8.81%    8.78%    8.35%    8.65%    8.30% 
   Efficiency Ratio (2)    60.22%    65.26%    68.61%    60.90%    62.31% 
   Yield on Earning Assets (2)    6.67%    6.98%    7.92%    7.07%    8.07% 
   Cost of Interest Bearing Liabilities    2.54%    2.76%    3.77%    2.89%    3.75% 
   Net Interest Spread    4.13%    4.22%    4.15%    4.18%    4.32% 
   Net Interest Margin (2)    4.50%    4.62%    4.71%    4.60%    4.89% 
 
Book Value Per Share    $ 8.47    $ 8.32    $ 7.78         
 
                 
                Regulatory Requirements 
    December 31,    September 30,    December 31,    Adequately-    Well- 
    2008    2008    2007    capitalized    capitalized 
Period End                     
Total Risk-Based Capital Ratio - Consolidated    13.23% (3)    13.06%    12.45%    8.00%    N/A 
Tier 1 Risk-Based Capital Ratio - Consolidated    11.98% (3)    11.81%    11.14%    4.00%    N/A 
Tier 1 Leverage Ratio - Consolidated    11.68% (3)    11.68%    11.29%    4.00%    N/A 
   
Total Risk-Based Capital Ratio - Whidbey Island Bank    13.10% (3)    12.97%    12.03%    8.00%    10.00% 
Tier 1 Risk-Based Capital Ratio - Whidbey Island Bank    11.85% (3)    11.72%    10.78%    4.00%    6.00% 
Tier 1 Leverage Ratio - Whidbey Island Bank    11.54% (3)    11.58%    10.92%    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)      Capital ratios for the most recent period are an estimate pending filing of the Company's regulatory reports.
 

-0-

Note: Transmitted on GlobeNewswire at 1:50 p.m. PST January 28,2009.