Columbia Banking System Announces Earnings for First Quarter 2011 and Declares Increased Cash Dividend

Columbia Banking System COLB today announced net income applicable to common shareholders of $5.8 million for the quarter ended March 31, 2011, compared to $6.8 million for the same quarter of 2010. On a diluted earnings per common share basis, net income was $0.15 for the first quarter compared with net income of $0.24 per share a year earlier. The first quarter 2011 results included a $1.7 million expense to establish a clawback liability resulting from improved performance of the acquired loan portfolios. The first quarter 2010 earnings included a $9.8 million, net of tax, bargain purchase gain on the former American Marine Bank transaction. "Excluding the bargain purchase gain in 2010 and the first quarter 2011 expense to establish the clawback liability, which total $11.1 million net of tax, net income for the first quarter 2011 would have grown 336% over the prior year quarter," said Melanie Dressel, President and Chief Executive Officer. Due to the repayment of the Capital Purchase Program funds in the third quarter, 2010, net income applicable to common shareholders for the fourth quarter 2010 and beyond does not include preferred dividends paid to the United States Treasury.