Columbia's board of directors also has approved a stock repurchase program, which will be funded by up to $9 million of the proceeds from the pooled trust preferred transaction. Under the stock repurchase program, Columbia may systematically purchase up to 660,000 of its outstanding shares of Common Stock. Those shares represent approximately 5% of the 13.1 million common shares currently outstanding.

"We are pleased that the trust preferred transaction has provided additional capital that will support our continued growth while also allowing us to implement our new stock repurchase program," J. James Gallagher, Columbia's chief executive officer, said in announcing the news. "Together these two events should enable Columbia to restructure its balance sheet and to more effectively leverage its assets, and should have a favorable effect on earnings per share and return on shareholders equity."

Columbia will use the remaining proceeds from the pooled trust preferred transaction to retire outstanding short-term debt and for working capital.