It seems like it was only a few days before Memorial Day that a gallon of regular hit $4 in Tacoma.

Now, as of about an hour ago, it’s back. The Tacoma Shell station on Portland Avenue – the one near the Emerald Queen Casino – lowered its price for regular gasoline to $3.99 per gallon.

Graphic evidence that there is sub $4 gas in Tacoma

“The cost of gas is going down,” said John Weymer, spokesman for the Puyallup Tribe of Indians, which owns the station.

AAA reported earlier today that the average price of a gallon of the cheap stuff was going for $4.253 in Tacoma. That’s down from yesterday’s $4.265, and (oh what wonderful days those were) $2.964 a year ago today.

Update on the $3.99 gas: With the tribe advertising the price on its huge I-5 casino message board, business was brisk at the station this morning. The driveway was often jammed with cars, but the traffic moved through quickly. When I was there, it took 10 minutes or so to reach the pump. During that same period, two dual trailer gas trucks pulled in to replenish the station's underground tanks -- John Gillie

Columbia Bank released quarterly earnings earlier today, and I spoke with Melanie Dressel, president and CEO at Columbia Bank, after she and other bank officials finished this afternoon’s conference call with analysts.

When we were finished, after about 45 minutes, Dressel asked what the headline would be on Friday’s story. I asked her what she would write.
“Columbia Remains Strong,” she said.

Today’s numbers:
• Columbia Banking System announced second-quarter earnings of $1.9 million, compared with $8.5 million for the same quarter last year. The decrease in net income, Columbia said in a release, “reflected the previously announced provision for loan losses of $15.4 million. ... which was due to an increase in real estate construction related non-accrual loans ...”
• Per-share, the earnings were 11 cents for the quarter, compared to 53 cents in the second quarter 2007.
• At June 30, Columbia’s total assets were $3.17 billion, compared to $3.18 billion at the end of 2007.
• Total loans were $2.28 billion, unchanged since the end of 2007.
• Total deposits were $2.4 billion, compared with $2.5 billion at the end of the year.
• Total non-performing assets (which includes loans that do or may present a problem) stood at $72.27 million, up from $5.98 million in the second quarter last year.
• The provision for losses rose to $15.4 million in the second quarter from $2.1 million in the first.
• The company will pay a quarterly dividend of 17 cents per share on Aug. 20.
• Net interest income was $30.3 million, an increase of $4.6 million from the second quarter a year ago, leading to a net interest margin of 4.39 percent, which is ahead of last year’s 4.36 percent.

“I think that people were pleasantly surprised at the increase of the net interest margin,” Dressel said. “The expectation was that we were going to lose money – but we made money.”

“One of the things you have to remember,” she said, “up until four months ago, the Pacific Northwest economy was performing normally. We are very much affected by the national economy. Our biggest safeguard is that we have never wanted to put all of our eggs in one basket. We wanted a diverse portfolio.”

“The times we are in are unprecedented,” said Andy McDonald, Columbia chief credit officer. “We’ve never been in a credit market where’s there’s been such disruption.”

“We’ve got money to lend,” said Dressel. “We’ve got strong capitalization, strong liquidity. We’re open for business.”

Columbia stock fell 99 cents in trading today, and settled at $13.21. The stock is down 55.57 percent so far this year.

If you're the kind of shopper who queues up at 5 a.m. for the post-Thanksgiving sales, who scans the ads daily for the best sales and who doesn't hesitate spending $40 on gas to explore new shopping venues, we've got a challenge for you.

Southcenter opens its airy $240-million addition Friday, and the shopping center is offering a $25 or larger incentive to draw a crowd.

Those who arrive before 9:30 a.m. for Friday's grand opening will receive a scratch-off ticket good for at least a $25 discount at a number of Southcenter merchants.

Here's the ad explaining the offer.

Note carefully, the phrase, "While supplies last." I suspect, based on the crush of people attending the first day shows at the new addition's centerpiece, a 16-screen AMC theater last week, that the Westfield folks will have no trouble gathering a crowd. A 9:30 arrival could find those scratch-offs long gone.

The shopping mall addition features 75 new shops and restaurants, several of them, such as Forever XXI, Gilly Hicks, Hollister and H&M, new to the Northwest.

The new shopping emporium includes a handful of new eateries, among them, Joey's Grill and Lounge, Blue C Shushi, Duke's Chowder House, Racha Thai and BJ's Restaurant and Brewhouse

Shoppers won't find jalapeno peppers in Fred Meyer stores around here.

The grocery chain's parent – Kroger – announced today that all of its stores were pulling the pepper from shelves as a precaution.

UPDATE: Top Foods also pulled peppers from its shelves earlier this week, spokeswoman Becky Skaggs said.

Kroger Co. spokeswoman Meghan Glynn told The Associated Press today that the company decided to halt jalapeno sales after the U.S. Food and Drug Administration reported Monday that a McAllen, Texas, distributor was recalling jalapenos because they had the potential to be contaminated with salmonella.

She said Kroger removed jalapenos the next day, even though none of its supply was from the Texas distributor.

Glynn said Kroger had received no complaints from customers suspecting jalapenos made them ill.

The government is warning against eating fresh jalapenos or products made from them while it continues to investigate a national salmonella outbreak initially linked to tomatoes.

The Texas distributor, Agricola Zaragoza, suspended sales of fresh jalapenos and recalled those shipped since June 30. It said those shipments were made to Georgia and Texas.

Alaska Airlines consistently has won industry awards for its Mileage Plan frequent flier program including this year's InsideFlyer magazine's "Program of the Year."

Those honors, no doubt, were achieved in part by the program's generosity: a free domestic trip on Alaska or its sister airline, Horizon Air, for 20,000 miles. The industry standard is 25,000.

But in a year when fuel prices have escalated 51 percent for the airline, generosity has become too expensive.

The 20,000-mile free trip is going away Nov. 1.

"When Alaska airlines introduced its popular 20,000-mile 'Saver' award 13 years ago, we were paying less than $20 a barrel for crude oil. Last week oil touched $145 a barrel," said Steve Jarvis, Alaska's vice-president of marketing.

In its place will be a new thre-tiered array of awards:

The previous "Saver" award has been renamed "Super Saver." The trips available on Super Saver, even at 25,000 miles, will be limited.

A new middle award level will be called "Choice." Choice awards will cost more in miles than Super Saver but will offer more seats. These seats will be available for 40,000 miles for domestic trips.

The former "Peak" awards will become "Full Flex." Those awards will have no restrictions. Miles cost: 55,000

Additional changes to the program include a $25 fee for booking trips on an Alaska partner airline.

The airlines are throwing some fliers a bone in this switch. Awards for flying within a state, formerly restricted to Alaska, will be expanded to include California, Oregon, Idaho, Montana and Washington. The miles cost for these trips, say Seattle to Walla Walla or Spokane, will be 15,000, down from 20,000.

Here's a link to Alaska's new award chart.

The changes are not going down well with some frequent fliers on Internet forums.

On FlyerTalk, one frequent flier commented: "Bad move, Alaska. Very, very, very bad move."

Another said: "I'm surprised nobody is talking about the increased redemption levels! 25k for a domestic "super saver". Then two more tiers above that? Ugh! Mileage Plan has nothing left to differentiate itself."

Six Tacoma bowling enthusiasts – including one national Hall of Fame member – are in the final stages of sealing a deal to buy Tower Lanes.

The bowling center, at 6323 6th Avenue, offers 16 lanes plus an 18-hole mini-golf course and a restaurant.

The group – Ray Schuler, Gary Glein, Andy Ritting, Lance Lorfeld, Bob Hanson and Jeanne Naccarato - has formed a partnership under the name Tower Lanes & Entertainment LLC. I spoke late yesterday with Naccarato, a member of the United States Bowling Congress Hall of Fame and the Professional Bowlers Association Hall of Fame.

“I’m going to target corporate parties, birthday parties, and I’ll be organizing fundraisers,” she said. “We’re going to revamp the mini-golf, re-do the greens, and have music.” Naccarato also said she will be giving lessons at the center.

The group is buying the building and 3-acre property for $2.1 million from current owners Vern and Shannon Isaacson, Naccarato said.

Hanson, who is likely to act as general manager of the facility, has been bowling since he was a boy and is a member of the Greater Tacoma Bowling Association. He told me yesterday that “the recreational aspect of bowling has been growing. It’s huge. I think we’re on the right track.”

Tower Lanes opened in 1957. The partners expect to keep it open through the remodeling, which should be complete by late September, Hanson said.

Alaska Air Group, will trim 80 persons off from its management ranks and cut flying by up to 10 percent next year as it battles to cope with rising fuel prices.

That announcement came today as the SeaTac-based parent of Alaska Airlines and Horizon Air reported a $63.1 million profit in the second quarter, up nearly 37 percent over the same period last year.

The second-quarter profit amounts to $1.74 a share on operating revenues of $930.8 million, up 2.9 percent over 2007's second quarter.

That figure includes after-tax gains of $97.3 million Alaska made speculating in the oil business.

Subtract those gains and charges made to retire some of its less fuel efficient aircraft, then the results flip-flop to a $14.1 million loss for the second quarter. That loss per was 39 cents per share.

Here's a chart I've created to summarize some of Alaska's second quarter essentials:

Wall street reacted to the earnings report by driving down Alaska's share price by $1.23 to $17.62 a share at midday.

Alaska isn't in the oil business by choice, but of necessity. It has been buying fuel hedges for years to insulate itself from the wild swings in the price of jet fuel. Those fuel hedges allow Alaska to buy jet fuel at a price fixed as long as several years ago when oil prices were lower.

With the rapid buildup in the price of crude and jet fuel this quarter, accounting rules required the company to recognize those gains on its balance sheet.

Despite those balance sheet gains, Alaska chairman Bill Ayer said the company is struggling to raise income to exceed expenses.

"Skyrocketing fuel prices have eclipsed the improvements we've worked so hard to achieve in every area of our business," Ayer said.

The air group chairman announced further measures to help the holding company's bottom line:

* A five percent reduction in the management ranks at Alaska Airlines coupled with an earlier 13 percent cut in management at regional flier Horizon Air.

* A change in the airlines' frequent flier program including upping the price of most domestic trips from 20,000 frequent flier miles to 25,000 miles beginning Nov. 1. The 25,000-mile amount has been the standard in domestic airline frequent flier programs for years except at Alaska.

* A reduction in the Alaska's mainline capacity by five percent in the fourth quarter and by five to 10 percent in 2009. That means eliminating unprofitable or lightly-used flights.

While Alaska's news was not generally positive, it avoided the huge write downs that most of its competitors have announced this quarter.

Collectively, the nation's domestic airlines have announced more than $6 billion in losses for the quarter.

Another notable exception to that trend is Dallas-based Southwest Airlines, whose fuel hedging activities surpassed Alaska's. Southwest announced a $321 million profit for the second quarter today. That includes the gains on $4.3 billion in fuel hedging contracts.

In a business where cash is increasingly essential, Alaska held fast. Its cash on hand increased 1.2 percent in the quarter to $1 billion.