Columbia Banking System Inc., the Tacoma, Wash.-based parent company of Columbia Bank--has repaid the $76.9 million it received through the Troubled Asset Relief Program in November 2008.

Last week, the company redeemed all of the preferred stock it issued to the Treasury Department and ended its participation in TARP's Capital Purchase Program.

According to Melanie Dressel, president and chief executive officer, Columbia Banking System paid more than $6.5 million in dividends to the government over the course of its TARP participation.  In its press release, the Company said it intends to repurchase the outstanding warrant for its common stock that it also issued to Treasury as part of the deal under which it received taxpayer aid.

No definitive agreement on the repurchase of the warrant has yet been reached, although negotiations are forthcoming.

Columbia originally issued the government a warrant to buy 796,046 shares of its common stock at an exercise price of $14.49 per share.  In August 2009, however, Columbia successfully completed a public offering, issuing 8.5 million common shares that netted the Company nearly $100 million.  The Treasury warrant was halved to 398,023 shares because of the success of that offering. 

Columbia had a strong second-quarter showing, with net income of $3.9 million applicable to shareholders.  In contrast, the Company lost $6.6 million in the second quarter of 2009.  Columbia also successfully raised $229 million in another common offering during the quarter.

The company said its strong capital position helped make the redemption of its TARP shares possible.

 "Our financial strength was originally affirmed when we were selected as one of the first regional banks to participate in the Treasury's voluntary CPP program," Dressel noted in the press release.  She drew attention to the fact that Columbia remained strong and stable during its TARP participation, and was even able to take over the operations of two failed banks.  "We are also pleased, given our strong capital position, to repay the CPP at this early date."