Washington Banking Co. reported net income increased to $4.8 million, or 31 cents per diluted share, in the first quarter ended March 31, up 13 percent from $4.2 million, or 28 cents per diluted share in the preceding quarter.

In the first quarter of 2011, which included a final preferred dividend payment of $1.1 million, net income totaled $4.1 million and net income available to common shareholders was $3 million, or 19 cents per diluted share.

Washington Banking Co. is the holding company for Whidbey Island Bank.

The company's board of directors also declared a quarterly cash dividend of 14 cents per common share to shareholders of record on May 7 and payable on May 21. This is a 17 percent increase from the first quarter payout of 12 cents per share, when the company paid a quarterly dividend of 6 cents and a special dividend of 6 cents.