Tacoma-based Rainier Pacific Financial Group today posted a net loss of $3.7 million, or 62 cents per share, for the second quarter. This compares to a net income of $1 million for the second quarter of 2008.

The loss, according to a release, was mainly attributable to a $4 million provision for loan losses; an assessment and insurance due to the Federal Deposit Insurance Corp.; and a charge of $1.8 million related to investments in collaterlized debt obligathions, or CDOs.

The company increased its provision for loan losses to $4 million for the quarter, compared to a provision of $2.3 million at the end of the first quarter and $550,000 at the end of the second quarter last year.

An incraese in expenses was partially offset by a $401,000 decrease in compensation and benefits costs that followed a loss of 10 full-time-equivalent employees, lower incentive and retirement compensation, and the elimination of some compensation for executive officers and board members.

Non-performing loans totaled $39.9 million at the end of the quarter, of which $37.3 million, or 93.5 percent, were concentrated in five “residential builder relationships,” according to the release.

“We are hopeful that the operating environment will gradually improve,” said John Hall, Rainier Pacific president and CEO. “However, we anticipate the improvement will be slow during the next few quarters. We are pleased with the stability of the bank’s core business operations during these difficult times and will continue to focus on improving Rainier Pacific’s profitability and capital ratios during the balance of the year.”

Columbia Banking System, parent of Tacoma-based Columbia Bank, today announced a net loss of $6.6 million for the second quarter, compared to a net gain of $1.9 million for the second quarter of 2008.

The quarterly dip gives stockholders a net loss of 37 cents per share, compared with earnings of 11 cents a year ago.

The quarterly loss reflects a provision for loan losses of $21 million “due to the continued decline in real estate values, principally relating to residential land, lots and lot development,” according to a release issued this morning.

Columbia President and CEO Melanie Dressel told analysts during a conference call this afternoon that the $6.6 million loss was “certainly a disappointment for us.” She also said she was “concerned about the duration” of the current economic downturn evident in the Northwest. She said the continued decline of real estate property values has “unquestionably been a major challenge for us.”

However, she said, Columbia continues to be well capitalized and “we were very pleased with our net interest margin." Also, "We have ample sources of liquidity - over $1.2 billion.”

The net interest margin rebounded during the quarter to 4.38 percent, up from 4.26 percent at the end of the first quarter and nearly identical to a year ago at 4.39 percent.

Past-due loans were at $16.4 million, or 0.77 percent of total loans at the end of the second quarter, compared to $20.4 million, or 0.95 percent, at the end of the first quarter and $10.4 million, or 0.46 percent, at the end of 2008.

“We are beginning to see some light through the clouds,” Dressel told the analysts.

Part of that light shines in Vancouver, Wash., where Columbia has received regulatory approval to open a branch later this year. “We have long wanted to be in the Vancouver ares,” Dressel said.

Sea-Tac Airport owner the Port of Seattle this week began anew the stalled construction of its $419 million rental car terminal.

The terminal construction was halted mid-project last December when finance markets froze and the economy appeared to be on the verge of a free-fall.

With the thawing of the markets, the port in late June sold $317 million in revenue bonds to finance the remainder of the construction on the $419 million, 23-acre facility.

The new garage, new the intersection of International Boulevard and Highway 518, will provide parking and maintenance space for thousands of rental vehicles as well as counters for rental car companies serving the airport.

The construction project is expected to generate about 3,000 new jobs and $2 million in tax revenue for the City of SeaTac.

Shuttle buses will connect arriving and department passengers with the airport terminal from the rental car facility.

SeaTac-based Alaska Air Group, parent company of Alaska Airlines and Horizon Air, today reported second quarter income of $29.1 million despite lower sales than last year's second quarter.

The profit was either a big increase over the same quarter last year or a big drop depending on what numbers were included.

Including special items such as gains and losses on fuel hedge contracts and new pilot contract transition costs, the company's $29.1 million profit was less than half of the $63.1 million reported on the same basis in the second quarter last year.

Excluding special items in both years, the $26.5 million profit in this year's second quarter was more than $40 million more than the comparable figure in 2008 when the airline holding company lost $14.1 million.

Major factors in company's April-June profit picture were a dramatic drop in fuel costs over the same period last year, reallocation of capacity from underperforming routes to new city pairs and the hard work of airline employees, said Alaska Chairman Bill Ayer.

With business and pleasure travel still becalmed by the economic situation, major domestic airlines this quarter have announced mixed results.

Continental Airlines reported big losses and announced layoffs of 1,700 workers. Delta Air Lines reported losses of 31 cents a share in the quarter, and American Airlines said it lost $390 million.

But both Southwest and AirTran airlines reported profits in the quarter.

Alaska's passenger traffic dropped 2.6 percent last month, but its capacity fell farther, 4.1 percent, translating to occupancy 1.2 percent above the same time last year.

Revenue fell to $843.9 million from $930.8 million a year earlier in the second quarter.

Ayer said he expects the air travel business to remain challenging while the economy continues to suffer.

Some analysts have speculated that some of the major legacy carriers could face cash crises next winter when traffic drops to yearly lows.

But Alaska said its $1.1 billion in unrestricted cash and marketable securities gives it an ample cushion to survive any further downturns in the economy.

The stock market responded positively to Alaska's earnings report today bidding up the stock by 6.17% percent to $22.02 at closing.

Sea-Tac Airport's newest international carrier, Icelandair, inaugurates new service between the Pacific Northwest and Iceland beginning today.

The inaugural flight will depart Sea-Tac's South Satellite terminal at 4:30 p.m.

The Boeing 757 will make regular flights from Sea-Tac to Reykjavik four days a week, Tuesdays, Thursdays, Saturdays and Sundays departing at 4:30 p.m. and arriving in Iceland's capital at 6:45 a.m.

The airline provides connecting flights to a host of European destinations from Reykjavik including Copenhagen, Oslo, Stavanger, Stockholm, Paris, London, Manchester, Amsterdam, Berlin, Dusseldorf, Frankfurt, Munich, Barcelona, Madrid and others.

SeaTac's Alaska Airlines has formed a new codeshare partnership with an Hawaiian interisland carrier once controlled by a former Alaska baggage handler.

Alaska will offer codeshare tickets on Mokulele's jet service between Honolulu and and Kona, Hilo, Lihue and Kahuli under the new agreement.

Under a codeshare arrangement, airline customers can buy tickets from Alaska for Mokulele flights that have an Alaska flight number.

Former Mokulele baggage handler Bill Boyer of Tacoma once controlled Mokulele Airlines which he transformed from a small mostly charter carrier to a scheduled carrier among the Hawaiian islands.

In recent months, Republic Airlines has assumed control of the interisland carrier.

Republic had furnished Mokulele with jet service using Embraer 170 jets, but Mokulele ran into financial trouble, and Republic took charge of the carrier.

Boyer made his fortune devising the DigEplayer, portable digital movie player for airlines and other transportation carriers.

Tickets on the codeshare flights will be available for sale on Alaska's Web site beginning Saturday for flights on or after Aug. 1.