Columbia Banking System Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. Net loss applicable to common shareholders was $2.6 million, compared with a net loss of $8.8 million for the third quarter of 2008. On diluted earnings per common share basis, the net loss was $0.11, compared with a loss of $0.49 per share a year earlier. The loss for the quarter reflected a provision for loan losses of $16.5 million due to the continued decline in real estate values, principally relating to residential land, lots and lot development loans. Revenue (net interest income plus noninterest income) was $36.3 million for the third quarter of 2009, up 95% from $18.6 million one year ago. The significant increase was primarily due to the $18.5 million impairment charge in the third quarter 2008 related to the decline in the fair value of an investment in preferred stock issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. Excluding the impairment charge, revenue for the third quarter 2009 was down 2% from third quarter 2008, primarily due to the impact of nonperforming loans, and decreases in loan balances and line of credit usage. Net interest income for the third quarter of 2009 was relatively stable at $29.1 million, a decrease of $475,000, or 2%, from $29.6 million for the third quarter 2008, primarily due to a decrease in earning assets from the prior year. Return on average assets was negative 0.19% against negative 1.12% last year. Return on average common equity was negative 2.56% against negative 10.10% last year. For the nine months, the company reported net interest income of $85.552 million, net loss of $5.520 million, net loss applicable to common shareholders of $8.818 million or $0.45 per diluted share against net interest income of $90.194 million, net income of $4.154 million, net income applicable to common shareholders of $4.154 million or $0.23 per diluted share for the same period last year. Return on average assets was negative 0.24% against 0.18% last year. Return on average common equity was negative 3.23% against negative 1.59% last year. For the quarter ended September 30, 2009, net loan charge-offs were approximately $13.7 million, compared to $16.4 million for the same period a year ago, and $16.4 million during the second quarter of 2009. Net charge-offs in the 1-4 family residential construction portfolio of $5.7 million for the quarter were centered in residential land and lot development loans. Commercial real estate charge offs of $2.4 million were primarily related to retail construction loans. The commercial business pool had charge-offs of approximately $4.9 million and were centered in loans related to the construction and real estate development industries. The balance, or approximately $700,000, was distributed across the rest of the loan portfolio. The Board of Directors has announced a quarterly cash dividend of $0.01 per common share, which will be paid on November 25, 2009 to shareholders of record as of the close of business on November 12, 2009.

Columbia Banking System Inc. expected to Report Fiscal Year 2009 Results on January 25, 2010. This event was calculated by Capital IQ (Created on October 29, 2009).

Columbia Banking System Inc., Q3 2009 Earnings Call, Oct 29 2009