Columbia Bancorp's net loss widened more than threefold from the previous period to $23.3 million in the second quarter as its credit provision jumped almost 50%, to $14.4 million and it took a $7.2 million charge against deferred tax assets.
The $1.1 billion-asset banking company in The Dalles, Ore., said Monday that it continued to be hurt by construction and development loans in the central part of the state and the Portland-Vancouver metropolitan area.
Columbia is the subject of a cease and desist order issued by the Federal Deposit Insurance Corp. and the Oregon Division of Finance and Corporate Securities in February. In its quarterly filing with the Securities and Exchange Commission, the company said that its banking subsidiary had failed to meet the capital levels and asset-quality standards required by the order at June 30, and that it is considered undercapitalized according to regulatory standards.
In a news release, Terry Cochran, Columbia's CEO, highlighted the company's efforts to improve its liquidity. Deposits increased by 6% from the previous quarter, to $992.7 million.
Columbia Bancorp posted a $206,000 net loss in the second quarter of last year.