TACOMA, Wash. - Columbia Banking System Inc. announced Thursday that it has revised its fourth-quarter earnings to reflect a loss of $136,000, or 1 cent a share, rather than a previously reported profit of $3.8 million, or 32 cents a share.
The adjustment is the result of a $6 million increase in loan-loss provisions to $18.8 million, stemming solely from the "deterioration in a single substantial credit relationship," the company said in a news release.
"Management is confident that the problems with the single loan are not symptomatic of other similar problems in the loan portfolio," said J. James Gallagher, vice chairman and chief executive officer of the $1.5 billion-asset parent of Columbia Bank.
As a result of the $6 million increase, total loan-loss provisions increased to 1.58% of outstanding loans, from 1.07%.
Net income for 2000 was lowered to $10.1 million, or 84 cents a share, down 14.3% from net income of 1999. In January, Columbia reported net income for 2000 of $14 million.