Jul. 10, 2008 at 10:50am

Columbia Bank bumps up loan loss

Columbia Banking System, Inc. has announced that it expects to make a provision for loan losses of $15.4 million for the second quarter of 2008, due to an increase in non-accrual loans resulting from the slowing Pacific Northwest economic environment. 

The move will increase the Tacoma-based bank's total allowance for loan losses to about 1.83 percent of net loans. Charge-offs for the quarter are expected to be $1.6 million, increasing $800,000 from charge-offs of $761,000 for the first quarter 2008.

"The decision to increase our provision is a prudent step on the part of Columbia's management in light of the continuing weakness in the for-sale housing industry and the economy," said Melanie Dressel, president and chief executive officer. "As we have previously stated, Columbia is not immune to the instability in the residential real estate markets and mortgage-related industries, which already has affected other financial institutions in the markets we serve. We are actively managing our nonperforming assets."

Posted in Banking/Financial Services, BE Daily, Pierce County, Retirement and Investing, Tacoma by Steve Dunkelberger | Email Steve

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