As Ms. Dressel (CEO) revealed when she lowered guidance and raised their loan loss provision for 09.

The comparatively high provision is primarily due to two factors. First, the adverse economic environment has resulted in a continued decline in residential real estate values, particularly relating to residential land, lots and lot development loans. A significant portion of the current quarter provision expense is related to previously disclosed nonperforming residential construction loans. Columbia's process for executing the workout plans for these loans involves periodically obtaining updated appraisals. The additional provision expense is a result of updated appraisal values and ongoing progress towards bringing these problem loans to a resolution. The second primary contributor to Columbia's provision for loan losses during the second quarter 2009 is related to a single nonperforming commercial real estate construction loan. The project is a retail strip mall located in the Puget Sound region. Retail related businesses have been particularly hard hit by the recession; while construction is complete, the project has been unable to achieve full occupancy.

The seondary should help with cash but soon as the offering is complete next Tuesday I would look for the bottom to faall out of this stock below the 12.25 offering price. At least with KBWI and DADA underwriting this deal it gives the longs a nice price to get out to as they try to hold this thing together until the offering is complete. After next Tuesday look out below.