| Columbia Banking System Inc., parent company of Columbia Bank, announced earnings of $1.9 million for the second quarter, compared with $8.5 million for the second quarter of 2007. Diluted earnings were 11 cents per share, compared with 53 cents per share a year earlier.
The decrease in net income for the quarter reflected a provision for loan losses of $15.4 million, attributed to troubled construction loans, which have increased because of the slowing economy. Revenue was $39.6 million for the second quarter of 2008, up 22 percent from $32.4 million a year earlier.
“The fundamentals of our business remain sound, despite the fact that credit quality for nearly all northwest regional financial institutions is under pressure,” Melanie Dressel, president and CEO said. “Our loan portfolio is highly diverse, with less than 20 percent of the total portfolio in real estate construction related loans; approximately 12 percent is in the for-sale housing segment. Our core deposits, which represent 80 percent of our total deposits, result from the strong relationships we have built with our customers, and have helped us maintain a stable net interest margin.”
Core deposits are defined as demand, savings, and money market accounts, and certificates of deposit under $100,000.
Columbia also announced that it paid its quarterly cash dividend of $0.17 per share on Aug. 20.
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