Bank Cites Housing-Linked Loan-Loss Provision

Columbia Banking System Inc., Tacoma, Wash., has announced that it expects to make a $15.4 million provision for loan losses for the second quarter as a result of a housing-related slowdown in the Pacific Northwest. The company said chargeoffs are expected to total $1.6 million for the second quarter, up from $761,000 in the first quarter. "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, the bank's 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." The bank can be found online at http://www.columbiabank.com.