Wunderlich Securities Maintains Buy, $16 Target on Washington Banking

Wunderlich Securities reiterates its Buy rating and $16 target price on Washington Banking

as the company exceeds consensus on fourth quarter earnings due to solid fundamentals. Wunderlich Securities says, "WBCO reported 4Q EPS of $0.28, which beat consensus by $0.03 and our estimate by a penny. The company posted solid results with revenue growth, improving asset quality, and NIM expansion. While loss-share accounting from the two FDIC-assisted acquisitions in 2010 may provide a degree of earnings volatility over the next several quarters, we believe that current levels understate the value of the company's abundant capital, above-average long-term growth prospects, and relatively low-risk credit profile." WBCO closed at $12.64 a share on Friday.