June 15, 2009 (FinancialWire) — Columbia Banking System, Inc. (NASDAQ: COLB) (Current Market Cap: $230.10 Mil.) said it expects to make a provision for loan losses of around $21 million for the second quarter of 2009, based on current information available to management.

In a statement, the company said that the “comparatively high provision” is due to the continued decline in real estate values resulting from the adverse economic environment.

Given the anticipated loan loss provision expense, Columbia management said it expects a loss per diluted common share within the range of $0.37 and $0.43 for the second quarter 2009.

Columbia Banking said that its earnings will also be impacted by the accrual of $1.4 million in the second quarter 2009 for a special assessment imposed by the Federal Deposit Insurance Corp. on all insured depository institutions.

The special assessment, which will be collected September 30, is part of the FDIC’s efforts to rebuild the deposit insurance fund and help maintain public confidence in the banking system.

Tacoma, Washington-based Columbia Banking System is the holding company of Columbia Bank, a Washington state-chartered commercial bank with 50 banking offices in Pierce, King, Cowlitz, Kitsap, Thurston and Whatcom counties in Washington state, and Clackamas, Clatsop, Tillamook and Multnomah counties in Oregon.

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