TACOMA, Wash., April 2, 2008 /PRNewswire-FirstCall/ -- Columbia Banking
System, Inc. (Nasdaq: COLB) ("Columbia") announced today that due to its
membership in the Visa USA network, first quarter 2008 earnings will be
increased by approximately $1.9 million on an after-tax basis, or $0.10 per
diluted common share, as a result of Visa, Inc.'s recent initial public
offering ("IPO").
Two components comprise the $1.9 million net increase in first quarter
earnings. First, Visa funded a litigation escrow account on March 31, 2008
with $3.0 billion from the IPO proceeds. Based on Columbia's Visa USA
membership percentage, the expected after-tax economic benefit from this
escrow account is approximately $600,000, which will be recognized as a
partial recapture of fourth quarter 2007 expenses incurred to establish a
Visa litigation reserve liability.
Secondly, Columbia received 118,637 shares of Class B common stock from
the Visa, Inc. IPO completed on March 18, 2008, of which 45,866 shares were
redeemed for a gain of approximately $1.3 million after-tax, as part of
Visa's mandatory redemption of Class B stock. The combination of the
economic benefit of the escrow account of $600,000, and the $1.3 million
gain from the redeemed shares results in an increase in after-tax income of
approximately $1.9 million. Columbia will not recognize any gain on its
remaining 72,771 shares of unredeemed Visa Class B stock until such time
they are redeemed for cash.
For additional information regarding the effect of the Visa IPO on
Columbia Banking System, please refer to the Company's Form 8-K, filed on
April 2, 2008.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is
the holding company of Columbia Bank, a Washington state-chartered
full-service commercial bank. With the 2007 acquisitions of Mountain Bank
Holding Company and Town Center Bancorp and the 2008 internal merger of its
subsidiary, Bank of Astoria, into Columbia Bank, Columbia Banking System
has 55 banking offices in Pierce, King, Cowlitz, Kitsap, Thurston and
Whatcom counties in Washington State, and Clackamas, Clatsop, Tillamook and
Multnomah counties in Oregon. Included in Columbia Bank are former branches
of Mt. Rainier National Bank, doing business as Mt. Rainier Bank, with 7
branches in King and Pierce counties. Columbia Bank does business under the
Bank of Astoria name at the Bank of Astoria's former branches located in
Astoria, Warrenton, Seaside and Cannon Beach in Clatsop County and in
Manzanita in Tillamook County. More information about Columbia can be found
on its website at http://www.columbiabank.com.
Note Regarding Forward Looking Statements
This news release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which can
be identified by words such as "may," "expected," "anticipate," "continue,"
or other comparable words. In addition, all statements other than
statements of historical facts that address activities that Columbia
expects or anticipates will or may occur in the future are forward-looking
statements. Readers are encouraged to read the SEC reports of Columbia,
particularly its form 10-K for the Fiscal Year ended December 31, 2007, for
meaningful cautionary language discussing why actual results may vary
materially from those anticipated by management.
Contacts: Melanie J. Dressel, President and
Chief Executive Officer
(253) 305-1911
Gary R. Schminkey, Executive Vice President
and Chief Financial Officer
(253) 305-1966
SOURCE Columbia Banking System, Inc.
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Related links:
http://www.columbiabank.com
CONTACT:
Melanie J. Dressel, President and Chief
Executive Officer, +1-253-305-1911, or Gary R. Schminkey,
Executive Vice President and Chief Financial Officer,
+1-253-305-1966, both of Columbia Banking System, Inc.
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