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Business & Tech

Columbia Bank Will Build a New Branch in Edmonds

The Tacoma-based company is riding high on its latest quarterly report, boosted by the acquisition of two failed banks in Snohomish and Skagit counties.

The hard-charging Columbia Banking System has set its sights on Edmonds.

The Tacoma-based company has announced that it will build a new Columbia Bank on land it owns on the north side of Edmonds Way (SR 104) next to the 76 gas station. Earlier this year, Columbia Bank acquired two failed banks. Last week, the bank released a quarterly report that showed a hefty profit.

The bank is currently going through a planning and design process stage on the vacant Edmonds site, which is now frequently used by parked semi-trailer trucks and those selling used cars. The permit process comes after that, and Executive Vice President and Chief Operating Officer Mark Nelson says the bank hopes to be in place by late 2012.

“We do a study of potential markets, and Edmonds and south Snohomish County was identified as having a lot of potential,” said Nelson. “We do a lot on the wealth management side, and that marketplace suits us. I think the demographic in Edmonds works well with our typical customer profile.”

Nelson said the full-service bank, in addition to offering checking and savings accounts, will conduct commercial lending, small-business loans, home loans and consumer loans. In addition, the branch will have a mortgage operation. There will be a drive-through and between five to 10 employees.

Columbia Banking System, founded in 1993, on May 20 acquired all of the deposits and substantially all of the assets of Summit Bank from the Federal Deposit Insurance Corporation (FDIC), which was appointed receiver of the institution. Columbia added branches in the Skagit County towns of Burlington, Concrete and Mount Vernon.

One week later, Columbia acquired, also through the FDIC, deposits and assets of First Heritage Bank and its branches in Snohomish, Everett, Monroe, Arlington and Woodinville.

Columbia Banking System today has 93 banking offices, including 68 branches in Washington and 25 in Oregon. In Oregon, Columbia Bank does business under the Bank of Astoria name in Astoria, Warrenton, Seaside, Cannon Beach, Manzanita and Tillamook.

Boosted in part by its acquisitions, Columbia Banking System on July 27 reported a doubling in its second-quarter net income: $8.6 million, or 22 cents a share, compared to $3.9 million, or 11 cents a share, for the same quarter a year ago. The company's acquisitions added about $2 million to the past quarter's pretax income. Columbia had a cash dividend of 6 cents a share, up from 5 cents a share paid the previous quarter.

The president and chief executive officer of Columbia Banking System is Melanie Dressel, who says her company has long desired to become a Pacific Northwest regional community bank.

“We are continuing to implement one of our primary strategies, filling in our footprint between Seattle and Bellingham by acquiring Summit Bank and First Heritage Bank during the second quarter,” said Dressel in a statement.

“We are pleased with solid loan growth during a weak economy; our commercial business portfolio is up about 5 percent from year-end 2010, and commercial real estate loans have increased approximately 6 percent. While loan generation continues to be challenging, our loan growth reflects our banking teams’ emphasis on existing client relationships as well as identifying and making loans to customers in our important new markets.”

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