It may not be a golden parachute, but Mike Cann is leaving Whidbey Island Bank with a good chunk of change.

Washington Banking Company, the Oak Harbor-based holding company for Whidbey Island Bank, announced Tuesday that it has formalized the severance agreement with its retiring President and Chief Executive Officer Michal D. Cann.

The company stated in a news release it will book an expense of approximately $800,000 in the third quarter for the severance agreement with Cann for his retirement effective Sept. 30.

“The cost associated with Mike’s retirement is expected to reduce third quarter profits by approximately $0.06 per share,” said Jack Wagner, President and CEO. “We still anticipate reporting a profitable third quarter and we remain well capitalized.”

Washington Banking expects to release its third quarter 2008 earnings Oct. 23.

Share prices have fallen from over $20 in October 2007 to just over $9 this October.

Cann’s upcoming retirement was announced July 2 shortly after a deal to merge with Frontier Bank of Everett fell through. He said at the time that the events were unrelated.

“Over his career, Mike has distinguished himself as one of the top bankers in the region,” said Tony Pickering, chairman of the board, in a July news release. “He’s been responsible for building this company into one of the Northwest’s premier regional community banks, and we wish all the best to Mike and his family as he transitions into retirement.”

Cann joined Whidbey Island Bank as executive vice president in 1992, and became President and CEO in October of 1993. During his tenure, the bank has grown from five branches on Whidbey Island and one on Camano Island and $70 million in assets to 19 branches across five northwestern Washington counties and nearly $900 million in assets.