Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | a11-28344_18k.htm |
Exhibit 99.1
CoBiz Financial Announces Third Quarter 2011 Results
Reports net income of $4.4 million
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.4 billion in assets, announced net income of $4.4 million for the third quarter of 2011, as compared to a net loss of $1.9 million for the third quarter of 2010. Net income available to common shareholders was $0.05 per diluted common share versus a net loss of $0.08 per diluted common share in the prior-year quarter.
For the first nine months of 2011, the Company reported net income of $11.5 million, or $0.19 per diluted common share, versus a net loss of $10.4 million, or $0.36 loss per diluted common share, for the nine months ended September 30, 2010.
Financial Highlights — Third Quarter 2011
· Net income of $4.4 million was a significant improvement over our operating results for the third quarter of 2010, and an increase of 15.7% over the second quarter of 2011 (linked-quarter basis).
· For the third quarter of 2011, diluted earnings per share were $0.05, which included a charge of $1.8 million, or $0.05 per diluted share, related to the full redemption of $64.5 million preferred stock issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program. Excluding the one-time charge (reported as an adjustment to preferred stock dividends), the Company’s diluted earnings per share was $0.10 as compared to $0.08 in the prior linked quarter and a net loss of $0.08 in the prior year quarter. (See accompanying reconciliation of non-GAAP measures to GAAP).
· Receipt of $57.4 million from participation in the U.S. Department of Treasury’s Small Business Lending Fund (SBLF).
· Driving the improvement in core operating results was continued improvement in credit quality.
Financial Summary
|
|
|
Quarter ended |
|
3Q11 change vs. |
| |||||||||||||||
|
(in thousands, except per share amounts) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
|
2Q11 |
|
3Q10 |
| |||||||||
|
Net interest income before provision |
|
$ |
23,974 |
|
$ |
24,331 |
|
$ |
23,887 |
|
$ |
(357 |
) |
(1.5 |
)% |
$ |
87 |
|
0.4 |
% |
|
Provision for loan losses |
|
— |
|
1,982 |
|
7,344 |
|
(1,982 |
) |
(100.0 |
)% |
(7,344 |
) |
(100.0 |
)% | |||||
|
Net interest income after provision |
|
23,974 |
|
22,349 |
|
16,543 |
|
1,625 |
|
7.3 |
% |
7,431 |
|
44.9 |
% | |||||
|
Total noninterest income |
|
6,051 |
|
8,790 |
|
8,013 |
|
(2,739 |
) |
(31.2 |
)% |
(1,962 |
) |
(24.5 |
)% | |||||
|
Total noninterest expense |
|
23,230 |
|
25,253 |
|
26,219 |
|
(2,023 |
) |
(8.0 |
)% |
(2,989 |
) |
(11.4 |
)% | |||||
|
Net income (loss) before income taxes |
|
6,795 |
|
5,886 |
|
(1,663 |
) |
909 |
|
15.4 |
% |
8,458 |
|
(508.6 |
)% | |||||
|
Provision for income taxes |
|
2,352 |
|
2,047 |
|
234 |
|
305 |
|
14.9 |
% |
2,118 |
|
905.1 |
% | |||||
|
Net income (loss) |
|
4,443 |
|
3,839 |
|
(1,897 |
) |
604 |
|
15.7 |
% |
6,340 |
|
(334.2 |
)% | |||||
|
Preferred stock dividends |
|
(2,535 |
) |
(949 |
) |
(942 |
) |
(1,586 |
) |
167.1 |
% |
(1,593 |
) |
169.1 |
% | |||||
|
Net income (loss) available to common shareholders |
|
$ |
1,908 |
|
$ |
2,890 |
|
$ |
(2,839 |
) |
$ |
(982 |
) |
(34.0 |
)% |
$ |
4,747 |
|
(167.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted |
|
$ |
0.05 |
|
$ |
0.08 |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
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| |||||
|
KEY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.32 |
% |
4.40 |
% |
4.33 |
% |
|
|
|
|
|
|
|
| |||||
|
Efficiency ratio |
|
74.52 |
% |
73.40 |
% |
78.12 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average assets |
|
0.74 |
% |
0.64 |
% |
(0.31 |
)% |
|
|
|
|
|
|
|
| |||||
|
Return on average shareholders’ equity |
|
8.50 |
% |
7.37 |
% |
(3.45 |
)% |
|
|
|
|
|
|
|
| |||||
|
Noninterest income as a percentage of operating revenues |
|
20.15 |
% |
26.54 |
% |
25.12 |
% |
|
|
|
|
|
|
|
| |||||
“We were very gratified with the improvement in our core operating results, driven by the continued improvement in our credit outlook,” said Chairman and CEO Steve Bangert. “I believe it is a testament of the strength of our franchise that CoBiz was one of a select few banks to be accepted in the Small Business Lending Fund, a program directly aligned with our core operating model.
“The Company continues to maintain a very focused and consistent marketing effort, which has allowed us to grow our loan portfolio over the last couple of quarters. We anticipate new loan activity to accelerate over the next few quarters. While fee income was relatively light in the quarter, our fourth quarter is expected to be much stronger. I am also pleased with how we have managed our expenses. As a result, we were able to report core operating earnings of $0.10 per diluted share.” (Please see accompanying reconciliation of non-GAAP measures to GAAP).
Loans
· Loans at September 30, 2011 were $1.7 billion, an increase of $2.8 million, and $17.2 million from the linked- and prior-year quarters, respectively.
· Portfolio composition improved as concentrations in Land Acquisition and Development (A&D) and Construction have decreased. The Commercial and Industrial (C&I) portfolio totaled $587.3 million, or 35.4% of total Loans at September 30, 2011. Commercial real estate accounted for 47.2% of total Loans, with owner-occupied properties tied to the Company’s C&I portfolio, representing 54.3% of this category. Overall, 61.0% of total Loans relate to the Company’s C&I book.
|
|
|
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|
|
|
|
|
3Q11 change vs. |
| |||||||||||
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
|
2Q11 |
|
3Q10 |
| |||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial & industrial |
|
$ |
587,345 |
|
$ |
592,390 |
|
$ |
569,607 |
|
$ |
(5,045 |
) |
(0.85 |
)% |
$ |
17,738 |
|
3.11 |
% |
|
Real estate - mortgage |
|
782,771 |
|
772,652 |
|
798,435 |
|
10,119 |
|
1.31 |
% |
(15,664 |
) |
(1.96 |
)% | |||||
|
Land acquisition & development |
|
67,944 |
|
72,104 |
|
92,267 |
|
(4,160 |
) |
(5.77 |
)% |
(24,323 |
) |
(26.36 |
)% | |||||
|
Real estate - construction |
|
68,442 |
|
76,605 |
|
85,763 |
|
(8,163 |
) |
(10.66 |
)% |
(17,321 |
) |
(20.20 |
)% | |||||
|
Consumer |
|
112,709 |
|
104,887 |
|
75,233 |
|
7,822 |
|
7.46 |
% |
37,476 |
|
49.81 |
% | |||||
|
Other |
|
40,588 |
|
38,312 |
|
17,913 |
|
2,276 |
|
5.94 |
% |
22,675 |
|
126.58 |
% | |||||
|
Loans held for investment |
|
1,659,799 |
|
1,656,950 |
|
1,639,218 |
|
2,849 |
|
0.17 |
% |
20,581 |
|
1.26 |
% | |||||
|
Loans held for sale |
|
— |
|
— |
|
3,405 |
|
— |
|
— |
|
(3,405 |
) |
(100.00 |
)% | |||||
|
Total loans |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
$ |
1,642,623 |
|
$ |
2,849 |
|
0.17 |
% |
$ |
17,176 |
|
1.05 |
% |
· New credit of $107.9 million was added during the quarter and advances on existing lines totaled $58.4 million. New and advanced loans were offset by paydowns and maturities of $160.0 million during the third quarter. In addition, the Company charged-off, excluding recoveries, $3.4 million during the current quarter.
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
1Q11 |
|
4Q10 |
|
3Q10 |
| |||||
|
Loans - beginning balance |
|
$ |
1,656,950 |
|
$ |
1,636,164 |
|
$ |
1,643,727 |
|
$ |
1,642,623 |
|
$ |
1,688,028 |
|
|
New credit extended |
|
107,904 |
|
94,037 |
|
72,396 |
|
77,089 |
|
67,371 |
| |||||
|
Credit advanced |
|
58,371 |
|
54,610 |
|
62,227 |
|
65,343 |
|
86,272 |
| |||||
|
Paydowns & maturities |
|
(159,991 |
) |
(124,856 |
) |
(135,892 |
) |
(136,191 |
) |
(187,930 |
) | |||||
|
Gross loan charge-offs |
|
(3,435 |
) |
(3,005 |
) |
(6,294 |
) |
(5,137 |
) |
(11,118 |
) | |||||
|
Loans - ending balance |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
$ |
1,636,164 |
|
$ |
1,643,727 |
|
$ |
1,642,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net change - loans outstanding |
|
$ |
2,849 |
|
$ |
20,786 |
|
$ |
(7,563 |
) |
$ |
1,104 |
|
$ |
(45,405 |
) |
|
Net change, excluding charge-offs |
|
6,284 |
|
23,791 |
|
(1,269 |
) |
6,241 |
|
(34,287 |
) | |||||
Investment Securities
· The Company had investment securities available for sale with a carrying value of $612.8 million at September 30, 2011, a $16.4 million decrease from June 30, 2011.
· The unrealized gain on the investment portfolio decreased $4.4 million from June 30, 2011, to $11.0 million at September 30, 2011. The unrealized gain decreased $5.9 million from September 30, 2010.
Deposits and Customer Repurchase Agreements (Repo)
· Deposit and Customer Repo balances ended the period at $2.0 billion, a decrease of $45.2 million on a linked-quarter basis and a decrease of $54.6 million from the prior-year quarter.
· Noninterest-bearing demand accounts were 37.6% of total deposits at September 30, 2011.
· As a result of the Company’s favorable funding mix, the average cost of total deposits for the third quarter of 2011 decreased to 40 basis points, compared to 45 basis points in the second quarter of 2011.
|
|
|
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|
3Q11 change vs. |
| |||||||||||
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
|
2Q11 |
|
3Q10 |
| |||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
718,689 |
|
$ |
713,701 |
|
$ |
693,063 |
|
$ |
4,988 |
|
0.7 |
% |
$ |
25,626 |
|
3.7 |
% |
|
Savings |
|
10,251 |
|
10,221 |
|
9,160 |
|
30 |
|
0.3 |
% |
1,091 |
|
11.9 |
% | |||||
|
Eurodollar |
|
104,971 |
|
94,047 |
|
116,681 |
|
10,924 |
|
11.6 |
% |
(11,710 |
) |
(10.0 |
)% | |||||
|
Certificates of deposits under $100,000 |
|
36,126 |
|
37,282 |
|
44,209 |
|
(1,156 |
) |
(3.1 |
)% |
(8,083 |
) |
(18.3 |
)% | |||||
|
Certificates of deposits $100,000 and over |
|
208,965 |
|
227,968 |
|
261,632 |
|
(19,003 |
) |
(8.3 |
)% |
(52,667 |
) |
(20.1 |
)% | |||||
|
Reciprocal CDARS |
|
93,909 |
|
92,817 |
|
155,188 |
|
1,092 |
|
1.2 |
% |
(61,279 |
) |
(39.5 |
)% | |||||
|
Brokered deposits |
|
— |
|
— |
|
100 |
|
— |
|
— |
|
(100 |
) |
(100.0 |
)% | |||||
|
Total interest-bearing deposits |
|
1,172,911 |
|
1,176,036 |
|
1,280,033 |
|
(3,125 |
) |
(0.3 |
)% |
(107,122 |
) |
(8.4 |
)% | |||||
|
Noninterest-bearing demand deposits |
|
707,606 |
|
736,692 |
|
621,420 |
|
(29,086 |
) |
(3.9 |
)% |
86,186 |
|
13.9 |
% | |||||
|
Customer repurchase agreements |
|
131,877 |
|
144,843 |
|
165,559 |
|
(12,966 |
) |
(9.0 |
)% |
(33,682 |
) |
(20.3 |
)% | |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,012,394 |
|
$ |
2,057,571 |
|
$ |
2,067,012 |
|
$ |
(45,177 |
) |
(2.2 |
)% |
$ |
(54,618 |
) |
(2.6 |
)% |
Allowance for Loan and Credit Losses and Credit Quality
· Overall, credit quality measures continue to improve. As a result, the Company did not record a provision for loan or credit losses in the current period.
· NPAs were $62.4 million at September 30, 2011, a decrease of $2.8 million on a linked-quarter basis and a decrease of $30.6 million from the prior-year period.
· At September 30, 2011, NPAs to total assets decreased to 2.58% from 2.83% at year-end and 3.84% a year earlier.
· Net charge-offs to average loans (annualized) were 0.53% in the current period, as compared to 0.50% in the linked-quarter and 2.37% in the prior year quarter.
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
| |||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
| |||
|
Beginning allowance for loan losses |
|
$ |
61,920 |
|
$ |
61,995 |
|
$ |
67,961 |
|
|
Provision for loan losses |
|
— |
|
1,982 |
|
7,344 |
| |||
|
Net charge-offs |
|
(2,225 |
) |
(2,057 |
) |
(9,980 |
) | |||
|
Ending allowance for loan losses |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
65,325 |
|
|
|
|
|
|
|
|
|
| |||
|
Beginning allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
|
Provision for credit losses |
|
— |
|
— |
|
— |
| |||
|
Ending allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
|
|
|
|
|
|
|
|
| |||
|
Total provision for loan and credit losses |
|
$ |
— |
|
$ |
1,982 |
|
$ |
7,344 |
|
|
|
|
|
|
|
|
|
| |||
|
CREDIT QUALITY |
|
|
|
|
|
|
| |||
|
Nonperforming Loans |
|
|
|
|
|
|
| |||
|
Nonaccrual loans |
|
$ |
41,365 |
|
$ |
41,000 |
|
$ |
60,222 |
|
|
Loans 90 days or more past due and accruing interest |
|
— |
|
360 |
|
3,761 |
| |||
|
Total nonperforming loans |
|
41,365 |
|
41,360 |
|
63,983 |
| |||
|
OREO and repossessed assets |
|
20,986 |
|
23,748 |
|
28,919 |
| |||
|
Total nonperforming assets |
|
$ |
62,351 |
|
$ |
65,108 |
|
$ |
92,902 |
|
|
|
|
|
|
|
|
|
| |||
|
Performing renegotiated loans |
|
$ |
659 |
|
$ |
— |
|
$ |
6,655 |
|
|
|
|
|
|
|
|
|
| |||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
| |||
|
Nonperforming assets to total assets |
|
2.58 |
% |
2.69 |
% |
3.84 |
% | |||
|
Nonperforming loans to total loans |
|
2.49 |
% |
2.50 |
% |
3.90 |
% | |||
|
Nonperforming loans and OREO to total loans and OREO |
|
3.71 |
% |
3.87 |
% |
5.56 |
% | |||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
3.60 |
% |
3.74 |
% |
3.99 |
% | |||
|
Allowance for loan and credit losses to nonperforming loans |
|
144.46 |
% |
149.86 |
% |
102.34 |
% | |||
· Approximately 52% of nonperforming loans are within the Colorado portfolio and 48% are in Arizona.
· Of the $21.0 million of other real estate owned (OREO) and repossessed assets, $10.3 million, or 49%, is located in Colorado and $10.6 million, or 51%, is located in Arizona.
· The largest OREO property is in Colorado and was recently appraised in the second quarter of 2011 with a value of $6.3 million. The average OREO carrying value in Arizona is $0.3 million while in Colorado the average OREO carrying value (excluding the largest property) is $0.6 million.
Shareholders’ Equity
· Total shareholders’ equity decreased by $9.8 million on a linked-quarter basis. The decrease was primarily caused by the $7.1 million difference between the TARP redemption of $64.5 million and the SBLF issuance of $57.4 million.
· In addition, the low interest rate environment reduced the net gain on investment securities and derivatives recorded in equity as Other Comprehensive Income (OCI). OCI decreased by $6.5 million to $1.6 million on a linked-quarter basis.
· The Board of Directors of the Company declared a $0.01 cash dividend on our common stock to be paid on November 7, 2011, to shareholders of record on October 31, 2011.
|
|
|
3Q11 |
|
2Q11 |
|
3Q10 |
| |||
|
EQUITY MEASURES |
|
|
|
|
|
|
| |||
|
Common shareholders’ equity (in thousands) |
|
$ |
141,982 |
|
$ |
146,440 |
|
$ |
153,263 |
|
|
Total shareholders’ equity (in thousands) |
|
199,341 |
|
209,137 |
|
215,539 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Common shares outstanding at period end (in thousands) |
|
37,067 |
|
37,042 |
|
36,842 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Book value per common share |
|
$ |
3.83 |
|
$ |
3.95 |
|
$ |
4.16 |
|
|
Tangible book value per common share * |
|
3.73 |
|
3.85 |
|
4.04 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Tangible common equity to tangible assets * |
|
5.74 |
% |
5.91 |
% |
6.17 |
% | |||
|
Tangible equity to tangible assets * |
|
8.12 |
% |
8.51 |
% |
8.75 |
% | |||
|
Tier 1 capital ratio |
|
** |
|
13.45 |
% |
13.18 |
% | |||
|
Total risk based capital ratio |
|
** |
|
15.97 |
% |
15.59 |
% | |||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
Net Interest Income and Margin
· Net interest income for the third quarter of 2011 decreased $0.3 million on a tax equivalent basis from the prior linked quarter, to $24.3 million.
· The third quarter 2011 net interest margin (NIM) of 4.32% was relatively level with the third quarter of 2010 NIM of 4.33%, but fell eight basis points from the prior linked-quarter NIM of 4.40%.
· Average earning assets of $2.23 billion decreased $13.5 million during the third quarter of 2011 compared to the prior linked quarter.
· In the third quarter of 2011 the average net loan portfolio increased $7.6 million, while the average investment portfolio decreased $11.1 million on a linked-quarter basis.
· The yield on average earning assets in the third quarter of 2011 decreased 11 basis points to 4.77%, compared to 4.88% in the second quarter of 2011.
· The rate paid on average interest-bearing liabilities decreased six basis points on a linked-quarter basis to 0.99%. The Company continues to see a reduction in higher interest-bearing average CD balances, while maintaining a significant noninterest-bearing demand balance.
· Including noninterest-bearing demand accounts, the rate paid on average deposits was 0.40% in the third quarter of 2011 compared to 0.45% and 0.59% in the respective linked- and prior-year-periods.
Noninterest Income
· As a percentage of total operating revenue, noninterest income decreased to 20.2% for the third quarter of 2011 from 26.5% for the second quarter of 2011. Noninterest income as a percentage of total operating revenue was 25.1% for the third quarter of 2010.
· The linked-quarter decline in noninterest income for the third quarter of 2011 is primarily attributable to reductions in earnings on equity method investments and customer swap income, as well as decreases in fee-based revenues (Investment Banking, Insurance and Wealth Management).
|
|
|
Quarter ended |
|
3Q11 change vs. |
| |||||||||||||||
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
|
2Q11 |
|
3Q10 |
| |||||||||
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,274 |
|
$ |
1,224 |
|
$ |
1,252 |
|
$ |
50 |
|
4.1 |
% |
$ |
22 |
|
1.8 |
% |
|
Investment advisory and trust income |
|
1,291 |
|
1,543 |
|
1,298 |
|
(252 |
) |
(16.3 |
)% |
(7 |
) |
(0.5 |
)% | |||||
|
Insurance income |
|
2,952 |
|
3,288 |
|
3,173 |
|
(336 |
) |
(10.2 |
)% |
(221 |
) |
(7.0 |
)% | |||||
|
Investment banking income |
|
205 |
|
857 |
|
794 |
|
(652 |
) |
(76.1 |
)% |
(589 |
) |
(74.2 |
)% | |||||
|
Other income |
|
329 |
|
1,878 |
|
1,496 |
|
(1,549 |
) |
(82.5 |
)% |
(1,167 |
) |
(78.0 |
)% | |||||
|
Total noninterest income |
|
$ |
6,051 |
|
$ |
8,790 |
|
$ |
8,013 |
|
$ |
(2,739 |
) |
(31.2 |
)% |
$ |
(1,962 |
) |
(24.5 |
)% |
Operating Expenses
· The Company’s efficiency ratio for the third quarter of 2011 was 74.5%, compared to 73.4% for the second quarter of 2011 and 78.1% for the third quarter of 2010.
· Salaries and employee benefits decreased $1.7 million in the third quarter of 2011 on a linked-quarter basis. The decrease was primarily due to lower than expected medical claims for the Company’s self-insured plan, lower bonus and commission-based expense due to the decrease in noninterest income and a seasonal decrease in vacation expense.
· Other operating expenses decreased $0.3 million on a linked-quarter basis due to a decrease in FDIC assessments, partially offset by an increase in loan- and OREO-related costs.
|
|
|
Quarter ended |
|
3Q11 change vs. |
| |||||||||||||||
|
(in thousands) |
|
3Q11 |
|
2Q11 |
|
3Q10 |
|
2Q11 |
|
3Q10 |
| |||||||||
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,212 |
|
$ |
15,953 |
|
$ |
14,580 |
|
$ |
(1,741 |
) |
(10.9 |
)% |
$ |
(368 |
) |
(2.5 |
)% |
|
Stock-based compensation expense |
|
372 |
|
341 |
|
324 |
|
31 |
|
9.1 |
% |
48 |
|
14.8 |
% | |||||
|
Occupancy expenses, premises and equipment |
|
3,358 |
|
3,322 |
|
3,459 |
|
36 |
|
1.1 |
% |
(101 |
) |
(2.9 |
)% | |||||
|
Amortization of intangibles |
|
160 |
|
159 |
|
161 |
|
1 |
|
0.6 |
% |
(1 |
) |
(0.6 |
)% | |||||
|
Other operating expenses |
|
4,272 |
|
4,535 |
|
6,398 |
|
(263 |
) |
(5.8 |
)% |
(2,126 |
) |
(33.2 |
)% | |||||
|
Net loss on securities, other assets and OREO |
|
856 |
|
943 |
|
1,297 |
|
(87 |
) |
(9.2 |
)% |
(441 |
) |
(34.0 |
)% | |||||
|
Total noninterest expense |
|
$ |
23,230 |
|
$ |
25,253 |
|
$ |
26,219 |
|
$ |
(2,023 |
) |
(8.0 |
)% |
$ |
(2,989 |
) |
(11.4 |
)% |
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, October 21, 2011, at 10:00 am MDT with Steve Bangert, CoBiz Chairman and CEO. The call can be accessed via the Internet at
http://www.videonewswire.com/event.asp?id=82745
or by telephone at 877.493.9121, (conference ID # 16407686). International callers may dial: 973.582.2750.
Explanation of the Company’s Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding our results of operations. We believe these measures provide important supplemental information to investors. However, you should not rely on non-GAAP financial measures alone as measures of our performance. Please see the accompanying Reconciliation of Non-GAAP Measures to GAAP for additional information.
Contact Information
CoBiz Financial Inc.
Lyne Andrich 303.312.3458
About CoBiz Financial
CoBiz Financial (NASDAQ:COBZ) is a $2.4 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides commercial banking services through Colorado Business Bank and Arizona Business Bank; wealth planning and investment management through CoBiz Wealth Management, and trust services through CoBiz Trust; property and casualty insurance brokerage and employee benefits through CoBiz Insurance; investment banking services through Green Manning & Bunch; and executive benefits consulting and wealth transfer services through Financial Designs Ltd.
Forward-Looking Information
This release contains forward-looking statements that describe CoBiz’s future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the
results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “would”, “could” or “may.” Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
· Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Form 10-K.
· Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.
· Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.
· Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and related expenses.
· Our ability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects.
· Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.
· Our net interest margin may be negatively impacted if we are unable to profitably deploy excess cash into higher yielding loans or investments.
· The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.
· Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.
· Changes in legislative or regulatory requirements applicable to us and our subsidiaries could increase costs, limit certain operations and adversely affect results of operations.
· Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
· If we were to conclude that an additional valuation allowance is necessary for our net deferred tax asset, such conclusion could result in a non-cash valuation charge which would adversely affect our results of operations.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
(in thousands, except per share amounts) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
27,612 |
|
$ |
28,550 |
|
$ |
83,980 |
|
$ |
87,727 |
|
|
Interest expense |
|
3,638 |
|
4,663 |
|
11,431 |
|
14,914 |
| ||||
|
NET INTEREST INCOME BEFORE PROVISION |
|
23,974 |
|
23,887 |
|
72,549 |
|
72,813 |
| ||||
|
Provision for loan losses |
|
— |
|
7,344 |
|
3,622 |
|
31,608 |
| ||||
|
NET INTEREST INCOME AFTER PROVISION |
|
23,974 |
|
16,543 |
|
68,927 |
|
41,205 |
| ||||
|
Noninterest income |
|
6,051 |
|
8,013 |
|
22,873 |
|
24,651 |
| ||||
|
Noninterest expense |
|
23,230 |
|
26,219 |
|
73,934 |
|
81,943 |
| ||||
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
6,795 |
|
(1,663 |
) |
17,866 |
|
(16,087 |
) | ||||
|
Provision (benefit) for income taxes |
|
2,352 |
|
234 |
|
6,358 |
|
(5,923 |
) | ||||
|
NET INCOME (LOSS) BEFORE NONCONTROLLING INTEREST |
|
4,443 |
|
(1,897 |
) |
11,508 |
|
(10,164 |
) | ||||
|
Net loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
(199 |
) | ||||
|
NET INCOME (LOSS) |
|
$ |
4,443 |
|
$ |
(1,897 |
) |
$ |
11,508 |
|
$ |
(10,363 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Preferred stock dividends |
|
(2,535 |
) |
(942 |
) |
(4,430 |
) |
(2,820 |
) | ||||
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
1,908 |
|
$ |
(2,839 |
) |
$ |
7,078 |
|
$ |
(13,183 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS (LOSS) PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
$ |
0.05 |
|
$ |
(0.08 |
) |
$ |
0.19 |
|
$ |
(0.36 |
) |
|
DILUTED |
|
$ |
0.05 |
|
$ |
(0.08 |
) |
$ |
0.19 |
|
$ |
(0.36 |
) |
|
WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
36,747 |
|
36,562 |
|
36,669 |
|
36,522 |
| ||||
|
DILUTED |
|
36,850 |
|
36,562 |
|
36,824 |
|
36,522 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
| ||||
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
37,067 |
|
36,842 |
| ||||
|
Book value per common share |
|
|
|
|
|
$ |
3.83 |
|
$ |
4.16 |
| ||
|
Tangible book value per common share * |
|
|
|
|
|
$ |
3.73 |
|
$ |
4.04 |
| ||
|
Tangible common equity to tangible assets * |
|
|
|
|
|
5.74 |
% |
6.17 |
% | ||||
|
Tangible equity to tangible assets * |
|
|
|
|
|
8.12 |
% |
8.75 |
% | ||||
* See accompanying Non-GAAP reconciliation.
|
PERIOD END BALANCES |
|
|
|
|
| ||
|
Total assets |
|
$ |
2,416,052 |
|
$ |
2,419,245 |
|
|
Loans |
|
1,659,799 |
|
1,639,218 |
| ||
|
Loans held for sale |
|
— |
|
3,405 |
| ||
|
Intangible assets |
|
3,558 |
|
4,279 |
| ||
|
Deposits |
|
1,880,517 |
|
1,901,453 |
| ||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
| ||
|
Common shareholders’ equity |
|
141,982 |
|
153,263 |
| ||
|
Total shareholders’ equity |
|
199,341 |
|
215,539 |
| ||
|
Interest-earning assets |
|
2,241,026 |
|
2,210,856 |
| ||
|
Interest-bearing liabilities |
|
1,472,311 |
|
1,538,742 |
| ||
|
|
|
|
|
|
| ||
|
BALANCE SHEET AVERAGES |
|
|
|
|
| ||
|
Average assets |
|
$ |
2,400,618 |
|
$ |
2,429,361 |
|
|
Average loans |
|
1,650,171 |
|
1,717,693 |
| ||
|
Average deposits |
|
1,905,261 |
|
1,936,287 |
| ||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
| ||
|
Average shareholders’ equity |
|
207,248 |
|
224,750 |
| ||
|
Average interest-earning assets |
|
2,240,897 |
|
2,218,568 |
| ||
|
Average interest-bearing liabilities |
|
1,453,950 |
|
1,619,079 |
| ||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||
|
(in thousands) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Net interest margin |
|
4.32 |
% |
4.33 |
% |
4.38 |
% |
4.41 |
% | ||
|
Efficiency ratio |
|
74.52 |
% |
78.12 |
% |
74.17 |
% |
77.29 |
% | ||
|
Return on average assets |
|
0.74 |
% |
(0.31 |
)% |
0.64 |
% |
(0.57 |
)% | ||
|
Return on average shareholders’ equity |
|
8.50 |
% |
(3.45 |
)% |
7.42 |
% |
(6.16 |
)% | ||
|
Noninterest income as a percentage of operating revenues |
|
20.15 |
% |
25.12 |
% |
23.97 |
% |
25.29 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming loans |
|
|
|
|
|
|
|
|
| ||
|
Nonaccrual loans |
|
|
|
|
|
$ |
41,365 |
|
$ |
60,222 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
|
|
|
— |
|
3,761 |
| ||
|
Total nonperforming loans |
|
|
|
|
|
41,365 |
|
63,983 |
| ||
|
OREO & repossessed assets |
|
|
|
|
|
20,986 |
|
28,919 |
| ||
|
Total nonperforming assets |
|
|
|
|
|
$ |
62,351 |
|
$ |
92,902 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Performing renegotiated loans |
|
|
|
|
|
$ |
659 |
|
$ |
6,655 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Charge-offs |
|
|
|
|
|
$ |
(12,734 |
) |
$ |
(45,490 |
) |
|
Recoveries |
|
|
|
|
|
2,915 |
|
4,091 |
| ||
|
Net charge-offs |
|
|
|
|
|
$ |
(9,819 |
) |
$ |
(41,399 |
) |
|
|
|
|
|
|
|
|
|
|
| ||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming assets to total assets |
|
|
|
|
|
2.58 |
% |
3.84 |
% | ||
|
Nonperforming loans to total loans |
|
|
|
|
|
2.49 |
% |
3.90 |
% | ||
|
Nonperforming loans and OREO to total loans and OREO |
|
|
|
|
|
3.71 |
% |
5.56 |
% | ||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
|
|
|
|
3.60 |
% |
3.99 |
% | ||
|
Allowance for loan and credit losses to nonperforming loans |
|
|
|
|
|
144.46 |
% |
102.34 |
% | ||
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
| ||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
| ||||
|
Commercial |
|
$ |
3,470 |
|
$ |
2,136 |
|
$ |
5,606 |
|
$ |
587,345 |
|
0.95 |
% |
|
Real estate - mortgage |
|
7,263 |
|
11,228 |
|
18,491 |
|
782,771 |
|
2.36 |
% | ||||
|
Land acquisition & development |
|
2,981 |
|
3,124 |
|
6,105 |
|
67,944 |
|
8.99 |
% | ||||
|
Real estate - construction |
|
7,184 |
|
1,013 |
|
8,197 |
|
68,442 |
|
11.98 |
% | ||||
|
Consumer |
|
771 |
|
2,195 |
|
2,966 |
|
112,709 |
|
2.63 |
% | ||||
|
Other loans |
|
— |
|
— |
|
— |
|
40,588 |
|
0.00 |
% | ||||
|
Other real estate owned & repossessed assets |
|
10,342 |
|
10,644 |
|
20,986 |
|
20,986 |
|
— |
| ||||
|
NPAs |
|
$ |
32,011 |
|
$ |
30,340 |
|
$ |
62,351 |
|
$ |
1,680,785 |
|
3.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans |
|
$ |
1,124,777 |
|
$ |
535,022 |
|
$ |
1,659,799 |
|
|
|
|
| |
|
Total loans and OREO |
|
1,135,119 |
|
545,666 |
|
1,680,785 |
|
|
|
|
| ||||
|
Nonperforming loans to loans |
|
1.93 |
% |
3.68 |
% |
2.49 |
% |
|
|
|
| ||||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.82 |
% |
5.56 |
% |
3.71 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
| ||||||
|
|
|
Commercial |
|
Investment |
|
Wealth |
|
|
|
Support and |
|
|
| ||||||
|
(in thousands, except per share amounts) |
|
Banking |
|
Banking |
|
Management |
|
Insurance |
|
Other |
|
Consolidated |
| ||||||
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
25,642 |
|
$ |
1 |
|
$ |
(2 |
) |
$ |
— |
|
$ |
(1,667 |
) |
$ |
23,974 |
|
|
Quarter ended June 30, 2011 |
|
25,577 |
|
2 |
|
(11 |
) |
(1 |
) |
(1,236 |
) |
24,331 |
| ||||||
|
Annualized quarterly growth |
|
1.0 |
% |
(198.4 |
)% |
324.6 |
% |
396.7 |
% |
(138.3 |
)% |
(5.8 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2010 |
|
$ |
25,039 |
|
$ |
2 |
|
$ |
(1 |
) |
$ |
(2 |
) |
$ |
(1,151 |
) |
$ |
23,887 |
|
|
Annual growth |
|
2.4 |
% |
(50.0 |
)% |
(100.0 |
)% |
100.0 |
% |
(44.8 |
)% |
.4 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
1,653 |
|
$ |
205 |
|
$ |
2,154 |
|
$ |
2,089 |
|
$ |
(50 |
) |
$ |
6,051 |
|
|
Quarter ended June 30, 2011 |
|
3,065 |
|
857 |
|
2,381 |
|
2,450 |
|
37 |
|
8,790 |
| ||||||
|
Annualized quarterly growth |
|
(182.8 |
)% |
(301.8 |
)% |
(37.8 |
)% |
(58.5 |
)% |
(932.9 |
)% |
(123.6 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2010 |
|
$ |
2,780 |
|
$ |
794 |
|
$ |
2,443 |
|
$ |
2,028 |
|
$ |
(32 |
) |
$ |
8,013 |
|
|
Annual growth |
|
(40.5 |
)% |
(74.2 |
)% |
(11.8 |
)% |
3.0 |
% |
(56.3 |
)% |
(24.5 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
8,106 |
|
$ |
(456 |
) |
$ |
(199 |
) |
$ |
(178 |
) |
$ |
(2,830 |
) |
$ |
4,443 |
|
|
Quarter ended June 30, 2011 |
|
7,910 |
|
(105 |
) |
(161 |
) |
(3 |
) |
(3,802 |
) |
3,839 |
| ||||||
|
Annualized quarterly growth |
|
9.8 |
% |
nm |
|
(93.6 |
)% |
nm |
|
101.4 |
% |
62.4 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2010 |
|
$ |
2,727 |
|
$ |
(216 |
) |
$ |
(352 |
) |
$ |
(141 |
) |
$ |
(3,915 |
) |
$ |
(1,897 |
) |
|
Annual growth |
|
197.2 |
% |
(111.1 |
)% |
43.5 |
% |
(26.2 |
)% |
27.7 |
% |
334.2 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Earnings per share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
0.22 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
— |
|
$ |
(0.15 |
) |
$ |
0.05 |
|
|
Quarter ended June 30, 2011 |
|
0.21 |
|
— |
|
— |
|
— |
|
(0.13 |
) |
0.08 |
| ||||||
|
Annualized quarterly growth |
|
18.9 |
% |
— |
|
— |
|
— |
|
(61.0 |
)% |
(148.8 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2010 |
|
$ |
0.08 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
— |
|
$ |
(0.14 |
) |
$ |
(0.08 |
) |
|
Annual growth |
|
175.0 |
% |
— |
|
— |
|
— |
|
(7.1 |
)% |
162.5 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,659,799 |
| |||||
|
At June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
1,656,950 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
.7 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,642,623 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
1.0 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total deposits and customer repurchase agreements |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,012,394 |
| |||||
|
At June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
2,057,571 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
(8.7 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,067,012 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
(2.6 |
)% | ||||||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
COMMERCIAL BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
27,797 |
|
$ |
27,964 |
|
$ |
27,945 |
|
$ |
27,977 |
|
$ |
28,254 |
|
|
Total interest expense |
|
2,155 |
|
2,387 |
|
2,508 |
|
2,764 |
|
3,215 |
| |||||
|
Net interest income |
|
25,642 |
|
25,577 |
|
25,437 |
|
25,213 |
|
25,039 |
| |||||
|
Provision for loan losses |
|
(2,068 |
) |
584 |
|
1,327 |
|
4,677 |
|
5,860 |
| |||||
|
Net interest income (loss) after provision |
|
27,710 |
|
24,993 |
|
24,110 |
|
20,536 |
|
19,179 |
| |||||
|
Noninterest income |
|
1,653 |
|
3,065 |
|
2,459 |
|
2,920 |
|
2,780 |
| |||||
|
Noninterest expense |
|
7,403 |
|
7,526 |
|
8,098 |
|
9,560 |
|
6,902 |
| |||||
|
Income (loss) before income taxes |
|
21,960 |
|
20,532 |
|
18,471 |
|
13,896 |
|
15,057 |
| |||||
|
Provision (benefit) for income taxes |
|
8,149 |
|
7,409 |
|
6,952 |
|
9,338 |
|
5,674 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
13,811 |
|
$ |
13,123 |
|
$ |
11,519 |
|
$ |
4,558 |
|
$ |
9,383 |
|
|
Management fees and overhead allocations, net of tax |
|
5,705 |
|
5,213 |
|
6,145 |
|
5,314 |
|
6,656 |
| |||||
|
Net income (loss) |
|
$ |
8,106 |
|
$ |
7,910 |
|
$ |
5,374 |
|
$ |
(756 |
) |
$ |
2,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INVESTMENT BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
2 |
|
$ |
3 |
|
$ |
3 |
|
$ |
2 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
1 |
|
2 |
|
3 |
|
3 |
|
2 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
2 |
|
3 |
|
3 |
|
2 |
| |||||
|
Noninterest income |
|
205 |
|
857 |
|
744 |
|
2,766 |
|
794 |
| |||||
|
Noninterest expense |
|
868 |
|
980 |
|
893 |
|
2,294 |
|
1,085 |
| |||||
|
Income (loss) before income taxes |
|
(662 |
) |
(121 |
) |
(146 |
) |
475 |
|
(289 |
) | |||||
|
Provision (benefit) for income taxes |
|
(253 |
) |
(52 |
) |
(58 |
) |
191 |
|
(113 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(409 |
) |
$ |
(69 |
) |
$ |
(88 |
) |
$ |
284 |
|
$ |
(176 |
) |
|
Management fees and overhead allocations, net of tax |
|
47 |
|
36 |
|
35 |
|
41 |
|
40 |
| |||||
|
Net income (loss) |
|
$ |
(456 |
) |
$ |
(105 |
) |
$ |
(123 |
) |
$ |
243 |
|
$ |
(216 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
|
Total interest expense |
|
2 |
|
12 |
|
14 |
|
11 |
|
2 |
| |||||
|
Net interest income |
|
(2 |
) |
(11 |
) |
(13 |
) |
(10 |
) |
(1 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(2 |
) |
(11 |
) |
(13 |
) |
(10 |
) |
(1 |
) | |||||
|
Noninterest income |
|
2,154 |
|
2,381 |
|
2,280 |
|
2,458 |
|
2,443 |
| |||||
|
Noninterest expense |
|
2,191 |
|
2,388 |
|
2,388 |
|
2,654 |
|
2,748 |
| |||||
|
Income (loss) before income taxes |
|
(39 |
) |
(18 |
) |
(121 |
) |
(206 |
) |
(306 |
) | |||||
|
Provision (benefit) for income taxes |
|
(4 |
) |
(14 |
) |
(54 |
) |
98 |
|
(122 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(35 |
) |
$ |
(4 |
) |
$ |
(67 |
) |
$ |
(304 |
) |
$ |
(184 |
) |
|
Management fees and overhead allocations, net of tax |
|
164 |
|
157 |
|
151 |
|
176 |
|
168 |
| |||||
|
Net income (loss) |
|
$ |
(199 |
) |
$ |
(161 |
) |
$ |
(218 |
) |
$ |
(480 |
) |
$ |
(352 |
) |
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INSURANCE |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
|
Total interest expense |
|
1 |
|
1 |
|
2 |
|
2 |
|
3 |
| |||||
|
Net interest income |
|
— |
|
(1 |
) |
(2 |
) |
(1 |
) |
(2 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
— |
|
(1 |
) |
(2 |
) |
(1 |
) |
(2 |
) | |||||
|
Noninterest income |
|
2,089 |
|
2,450 |
|
2,539 |
|
1,996 |
|
2,028 |
| |||||
|
Noninterest expense |
|
2,181 |
|
2,307 |
|
2,361 |
|
2,333 |
|
2,118 |
| |||||
|
Income (loss) before income taxes |
|
(92 |
) |
142 |
|
176 |
|
(338 |
) |
(92 |
) | |||||
|
Provision (benefit) for income taxes |
|
(29 |
) |
58 |
|
71 |
|
145 |
|
(34 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(63 |
) |
$ |
84 |
|
$ |
105 |
|
$ |
(483 |
) |
$ |
(58 |
) |
|
Management fees and overhead allocations, net of tax |
|
115 |
|
87 |
|
86 |
|
87 |
|
83 |
| |||||
|
Net income (loss) |
|
$ |
(178 |
) |
$ |
(3 |
) |
$ |
19 |
|
$ |
(570 |
) |
$ |
(141 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CORPORATE SUPPORT AND OTHER |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
(187 |
) |
$ |
210 |
|
$ |
242 |
|
$ |
270 |
|
$ |
292 |
|
|
Total interest expense |
|
1,480 |
|
1,446 |
|
1,423 |
|
1,457 |
|
1,443 |
| |||||
|
Net interest income |
|
(1,667 |
) |
(1,236 |
) |
(1,181 |
) |
(1,187 |
) |
(1,151 |
) | |||||
|
Provision for loan losses |
|
2,068 |
|
1,398 |
|
313 |
|
(1,158 |
) |
1,484 |
| |||||
|
Net interest income (loss) after provision |
|
(3,735 |
) |
(2,634 |
) |
(1,494 |
) |
(29 |
) |
(2,635 |
) | |||||
|
Noninterest income |
|
(50 |
) |
37 |
|
10 |
|
217 |
|
(32 |
) | |||||
|
Noninterest expense |
|
10,587 |
|
12,052 |
|
11,711 |
|
10,328 |
|
13,366 |
| |||||
|
Income (loss) before income taxes |
|
(14,372 |
) |
(14,649 |
) |
(13,195 |
) |
(10,140 |
) |
(16,033 |
) | |||||
|
Provision (benefit) for income taxes |
|
(5,511 |
) |
(5,354 |
) |
(4,952 |
) |
6,179 |
|
(5,171 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(8,861 |
) |
$ |
(9,295 |
) |
$ |
(8,243 |
) |
$ |
(16,319 |
) |
$ |
(10,862 |
) |
|
Management fees and overhead allocations, net of tax |
|
(6,031 |
) |
(5,493 |
) |
(6,417 |
) |
(5,618 |
) |
(6,947 |
) | |||||
|
Net income (loss) |
|
$ |
(2,830 |
) |
$ |
(3,802 |
) |
$ |
(1,826 |
) |
$ |
(10,701 |
) |
$ |
(3,915 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
(10 |
) |
— |
| |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
(2,830 |
) |
$ |
(3,802 |
) |
$ |
(1,826 |
) |
$ |
(10,711 |
) |
$ |
(3,915 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
27,612 |
|
$ |
28,177 |
|
$ |
28,191 |
|
$ |
28,252 |
|
$ |
28,550 |
|
|
Total interest expense |
|
3,638 |
|
3,846 |
|
3,947 |
|
4,234 |
|
4,663 |
| |||||
|
Net interest income |
|
23,974 |
|
24,331 |
|
24,244 |
|
24,018 |
|
23,887 |
| |||||
|
Provision for loan losses |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
|
7,344 |
| |||||
|
Net interest income (loss) after provision |
|
23,974 |
|
22,349 |
|
22,604 |
|
20,499 |
|
16,543 |
| |||||
|
Noninterest income |
|
6,051 |
|
8,790 |
|
8,032 |
|
10,357 |
|
8,013 |
| |||||
|
Noninterest expense |
|
23,230 |
|
25,253 |
|
25,451 |
|
27,169 |
|
26,219 |
| |||||
|
Income (loss) before income taxes |
|
6,795 |
|
5,886 |
|
5,185 |
|
3,687 |
|
(1,663 |
) | |||||
|
Provision (benefit) for income taxes |
|
2,352 |
|
2,047 |
|
1,959 |
|
15,951 |
|
234 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,264 |
) |
$ |
(1,897 |
) |
|
Management fees and overhead allocations, net of tax |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net income (loss) |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,264 |
) |
$ |
(1,897 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
(10 |
) |
— |
| |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,274 |
) |
$ |
(1,897 |
) |
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands, except per share amounts) |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
|
2010 |
| |||||
|
Interest income |
|
$ |
27,612 |
|
$ |
28,177 |
|
$ |
28,191 |
|
$ |
28,252 |
|
$ |
28,550 |
|
|
Interest expense |
|
3,638 |
|
3,846 |
|
3,947 |
|
4,234 |
|
4,663 |
| |||||
|
Net interest income before provision |
|
23,974 |
|
24,331 |
|
24,244 |
|
24,018 |
|
23,887 |
| |||||
|
Provision for loan losses |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
|
7,344 |
| |||||
|
Net interest income after provision |
|
23,974 |
|
22,349 |
|
22,604 |
|
20,499 |
|
16,543 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,274 |
|
$ |
1,224 |
|
$ |
1,239 |
|
$ |
1,178 |
|
$ |
1,252 |
|
|
Investment advisory and trust income |
|
1,291 |
|
1,543 |
|
1,426 |
|
1,315 |
|
1,298 |
| |||||
|
Insurance income |
|
2,952 |
|
3,288 |
|
3,393 |
|
3,139 |
|
3,173 |
| |||||
|
Investment banking income |
|
205 |
|
857 |
|
744 |
|
2,766 |
|
794 |
| |||||
|
Other income |
|
329 |
|
1,878 |
|
1,230 |
|
1,959 |
|
1,496 |
| |||||
|
Total noninterest income |
|
6,051 |
|
8,790 |
|
8,032 |
|
10,357 |
|
8,013 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,212 |
|
$ |
15,953 |
|
$ |
14,723 |
|
$ |
15,937 |
|
$ |
14,580 |
|
|
Stock-based compensation expense |
|
372 |
|
341 |
|
424 |
|
411 |
|
324 |
| |||||
|
Occupancy expenses, premises and equipment |
|
3,358 |
|
3,322 |
|
3,354 |
|
3,289 |
|
3,459 |
| |||||
|
Amortization of intangibles |
|
160 |
|
159 |
|
160 |
|
160 |
|
161 |
| |||||
|
Other operating expenses |
|
4,272 |
|
4,535 |
|
5,428 |
|
5,712 |
|
6,398 |
| |||||
|
Net loss on securities, other assets and OREO |
|
856 |
|
943 |
|
1,362 |
|
1,660 |
|
1,297 |
| |||||
|
Total noninterest expense |
|
23,230 |
|
25,253 |
|
25,451 |
|
27,169 |
|
26,219 |
| |||||
|
Net income (loss) before income taxes |
|
6,795 |
|
5,886 |
|
5,185 |
|
3,687 |
|
(1,663 |
) | |||||
|
Provision (benefit) for income taxes |
|
2,352 |
|
2,047 |
|
1,959 |
|
15,951 |
|
234 |
| |||||
|
Net income (loss) |
|
4,443 |
|
3,839 |
|
3,226 |
|
(12,264 |
) |
(1,897 |
) | |||||
|
Net (income) loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
(10 |
) |
— |
| |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,274 |
) |
$ |
(1,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Preferred stock dividends |
|
(2,535 |
) |
(949 |
) |
(946 |
) |
(944 |
) |
(942 |
) | |||||
|
Net income (loss) available to common shareholders |
|
$ |
1,908 |
|
$ |
2,890 |
|
$ |
2,280 |
|
$ |
(13,218 |
) |
$ |
(2,839 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings (loss) per common share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.05 |
|
$ |
0.08 |
|
$ |
0.06 |
|
$ |
(0.36 |
) |
$ |
(0.08 |
) |
|
Diluted |
|
$ |
0.05 |
|
$ |
0.08 |
|
$ |
0.06 |
|
$ |
(0.36 |
) |
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Weighted average shares outstanding (in thousands) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
36,747 |
|
36,640 |
|
36,619 |
|
36,591 |
|
36,562 |
| |||||
|
Diluted |
|
36,850 |
|
36,829 |
|
36,790 |
|
36,591 |
|
36,562 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.32 |
% |
4.40 |
% |
4.41 |
% |
4.26 |
% |
4.33 |
% | |||||
|
Efficiency ratio |
|
74.52 |
% |
73.40 |
% |
74.63 |
% |
74.23 |
% |
78.12 |
% | |||||
|
Return on average assets |
|
0.74 |
% |
0.64 |
% |
0.54 |
% |
(2.01 |
)% |
(0.31 |
)% | |||||
|
Return on average shareholders’ equity |
|
8.50 |
% |
7.37 |
% |
6.38 |
% |
(22.75 |
)% |
(3.45 |
)% | |||||
|
Noninterest income as a percentage of operating revenues |
|
20.15 |
% |
26.54 |
% |
24.89 |
% |
30.13 |
% |
25.12 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares outstanding at period end (in thousands) |
|
37,067 |
|
37,042 |
|
37,044 |
|
36,877 |
|
36,842 |
| |||||
|
Book value per common share |
|
$ |
3.83 |
|
$ |
3.95 |
|
$ |
3.86 |
|
$ |
3.78 |
|
$ |
4.16 |
|
|
Tangible book value per common share * |
|
$ |
3.73 |
|
$ |
3.85 |
|
$ |
3.76 |
|
$ |
3.67 |
|
$ |
4.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tangible common equity to tangible assets * |
|
5.74 |
% |
5.91 |
% |
5.78 |
% |
5.65 |
% |
6.17 |
% | |||||
|
Tangible equity to tangible assets * |
|
8.12 |
% |
8.51 |
% |
8.37 |
% |
8.27 |
% |
8.75 |
% | |||||
|
Tier 1 capital ratio |
|
|
** |
13.45 |
% |
12.97 |
% |
12.90 |
% |
13.18 |
% | |||||
|
Total risk based capital ratio |
|
|
** |
15.97 |
% |
15.53 |
% |
15.50 |
% |
15.59 |
% | |||||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
At |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
|
2010 |
| |||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
$ |
2,413,226 |
|
$ |
2,395,088 |
|
$ |
2,419,245 |
|
|
Loans |
|
1,659,799 |
|
1,656,950 |
|
1,636,164 |
|
1,643,727 |
|
1,639,218 |
| |||||
|
Loans held for sale |
|
— |
|
— |
|
— |
|
— |
|
3,405 |
| |||||
|
Intangible assets |
|
3,558 |
|
3,718 |
|
3,877 |
|
4,119 |
|
4,279 |
| |||||
|
Deposits |
|
1,880,517 |
|
1,912,728 |
|
1,933,284 |
|
1,889,368 |
|
1,901,453 |
| |||||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Common shareholders’ equity |
|
141,982 |
|
146,440 |
|
143,103 |
|
139,324 |
|
153,263 |
| |||||
|
Total shareholders’ equity |
|
199,341 |
|
209,137 |
|
205,658 |
|
201,738 |
|
215,539 |
| |||||
|
Interest-earning assets |
|
2,241,026 |
|
2,316,694 |
|
2,255,418 |
|
2,239,254 |
|
2,210,856 |
| |||||
|
Interest-bearing liabilities |
|
1,472,311 |
|
1,444,031 |
|
1,425,828 |
|
1,472,686 |
|
1,538,742 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial |
|
$ |
587,345 |
|
$ |
592,390 |
|
$ |
562,220 |
|
$ |
565,145 |
|
$ |
569,607 |
|
|
Real estate - mortgage |
|
782,771 |
|
772,651 |
|
776,801 |
|
783,675 |
|
798,435 |
| |||||
|
Land acquisition & development |
|
67,944 |
|
72,105 |
|
76,120 |
|
83,871 |
|
92,267 |
| |||||
|
Real estate - construction |
|
68,442 |
|
76,605 |
|
85,359 |
|
86,862 |
|
85,763 |
| |||||
|
Consumer |
|
112,709 |
|
104,887 |
|
99,457 |
|
94,607 |
|
75,233 |
| |||||
|
Other |
|
40,588 |
|
38,312 |
|
36,207 |
|
29,567 |
|
17,913 |
| |||||
|
Gross loans |
|
1,659,799 |
|
1,656,950 |
|
1,636,164 |
|
1,643,727 |
|
1,639,218 |
| |||||
|
Less allowance for loan losses |
|
(59,695 |
) |
(61,920 |
) |
(61,995 |
) |
(65,892 |
) |
(65,325 |
) | |||||
|
Net loans held for investment |
|
1,600,104 |
|
1,595,030 |
|
1,574,169 |
|
1,577,835 |
|
1,573,893 |
| |||||
|
Loans held for sale |
|
— |
|
— |
|
— |
|
— |
|
3,405 |
| |||||
|
Total net loans |
|
$ |
1,600,104 |
|
$ |
1,595,030 |
|
$ |
1,574,169 |
|
$ |
1,577,835 |
|
$ |
1,577,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
718,689 |
|
$ |
713,701 |
|
$ |
696,114 |
|
$ |
663,572 |
|
$ |
693,063 |
|
|
Savings |
|
10,251 |
|
10,221 |
|
9,590 |
|
9,144 |
|
9,160 |
| |||||
|
Eurodollar |
|
104,971 |
|
94,047 |
|
91,042 |
|
105,793 |
|
116,681 |
| |||||
|
Certificates of deposits under $100,000 |
|
36,126 |
|
37,282 |
|
39,860 |
|
41,845 |
|
44,209 |
| |||||
|
Certificates of deposits $100,000 and over |
|
208,965 |
|
227,968 |
|
234,830 |
|
229,701 |
|
261,632 |
| |||||
|
Reciprocal CDARS |
|
93,909 |
|
92,817 |
|
103,568 |
|
157,679 |
|
155,188 |
| |||||
|
Brokered deposits |
|
— |
|
— |
|
— |
|
100 |
|
100 |
| |||||
|
Total interest-bearing deposits |
|
1,172,911 |
|
1,176,036 |
|
1,175,004 |
|
1,207,834 |
|
1,280,033 |
| |||||
|
Noninterest-bearing demand deposits |
|
707,606 |
|
736,692 |
|
758,280 |
|
681,534 |
|
621,420 |
| |||||
|
Customer repurchase agreements |
|
131,877 |
|
144,843 |
|
157,674 |
|
157,690 |
|
165,559 |
| |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,012,394 |
|
$ |
2,057,571 |
|
$ |
2,090,958 |
|
$ |
2,047,058 |
|
$ |
2,067,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
2,385,937 |
|
$ |
2,404,666 |
|
$ |
2,411,530 |
|
$ |
2,447,772 |
|
$ |
2,422,415 |
|
|
Average loans |
|
1,656,737 |
|
1,648,368 |
|
1,645,283 |
|
1,621,893 |
|
1,671,370 |
| |||||
|
Average deposits |
|
1,880,859 |
|
1,910,382 |
|
1,925,028 |
|
1,945,744 |
|
1,922,037 |
| |||||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Average shareholders’ equity |
|
207,462 |
|
208,886 |
|
205,175 |
|
216,441 |
|
218,141 |
| |||||
|
Average interest-earning assets |
|
2,230,789 |
|
2,244,327 |
|
2,247,763 |
|
2,246,857 |
|
2,200,104 |
| |||||
|
Average interest-bearing liabilities |
|
1,447,242 |
|
1,454,821 |
|
1,459,927 |
|
1,530,333 |
|
1,565,848 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for loan losses |
|
$ |
61,920 |
|
$ |
61,995 |
|
$ |
65,892 |
|
$ |
65,325 |
|
$ |
67,961 |
|
|
Provision for loan losses |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
|
7,344 |
| |||||
|
Net charge-offs |
|
(2,225 |
) |
(2,057 |
) |
(5,537 |
) |
(2,952 |
) |
(9,980 |
) | |||||
|
Ending allowance for loan losses |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
61,995 |
|
$ |
65,892 |
|
$ |
65,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
$ |
155 |
|
|
Provision for credit losses |
|
— |
|
— |
|
— |
|
(94 |
) |
— |
| |||||
|
Ending allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total provision for loan and credit losses |
|
$ |
— |
|
$ |
1,982 |
|
$ |
1,640 |
|
$ |
3,425 |
|
$ |
7,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming Loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonaccrual loans |
|
$ |
41,365 |
|
$ |
41,000 |
|
$ |
39,231 |
|
$ |
42,532 |
|
$ |
60,222 |
|
|
Loans 90 days or more past due and accruing interest |
|
— |
|
360 |
|
1,238 |
|
202 |
|
3,761 |
| |||||
|
Total nonperforming loans |
|
41,365 |
|
41,360 |
|
40,469 |
|
42,734 |
|
63,983 |
| |||||
|
OREO and repossessed assets |
|
20,986 |
|
23,748 |
|
23,581 |
|
25,095 |
|
28,919 |
| |||||
|
Total nonperforming assets |
|
$ |
62,351 |
|
$ |
65,108 |
|
$ |
64,050 |
|
$ |
67,829 |
|
$ |
92,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Performing renegotiated loans |
|
$ |
659 |
|
$ |
— |
|
$ |
— |
|
$ |
16,488 |
|
$ |
6,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to total assets |
|
2.58 |
% |
2.69 |
% |
2.65 |
% |
2.83 |
% |
3.84 |
% | |||||
|
Nonperforming loans to total loans |
|
2.49 |
% |
2.50 |
% |
2.47 |
% |
2.60 |
% |
3.90 |
% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
|
3.71 |
% |
3.87 |
% |
3.86 |
% |
4.06 |
% |
5.56 |
% | |||||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
3.60 |
% |
3.74 |
% |
3.79 |
% |
4.01 |
% |
3.99 |
% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
|
144.46 |
% |
149.86 |
% |
153.34 |
% |
154.33 |
% |
102.34 |
% | |||||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
Three months ended |
| ||||||||||||||||||||||
|
|
|
September 30, 2011 |
|
June 30, 2011 |
|
September 30, 2010 |
| ||||||||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Federal funds sold and other |
|
$ |
26,980 |
|
$ |
27 |
|
0.39 |
% |
$ |
36,953 |
|
$ |
38 |
|
0.41 |
% |
$ |
40,923 |
|
$ |
45 |
|
0.43 |
% |
|
Investment securities |
|
610,128 |
|
5,413 |
|
3.55 |
% |
621,276 |
|
5,864 |
|
3.78 |
% |
556,950 |
|
5,289 |
|
3.80 |
% | ||||||
|
Loans |
|
1,656,737 |
|
22,516 |
|
5.32 |
% |
1,648,368 |
|
22,584 |
|
5.42 |
% |
1,671,370 |
|
23,328 |
|
5.46 |
% | ||||||
|
Allowance for loan losses |
|
(63,056 |
) |
|
|
|
|
(62,270 |
) |
|
|
|
|
(69,139 |
) |
|
|
|
| ||||||
|
Total interest-earning assets |
|
$ |
2,230,789 |
|
$ |
27,956 |
|
4.77 |
% |
$ |
2,244,327 |
|
$ |
28,486 |
|
4.88 |
% |
$ |
2,200,104 |
|
$ |
28,662 |
|
4.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest-earning assets |
|
155,148 |
|
|
|
|
|
160,339 |
|
|
|
|
|
222,311 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
2,385,937 |
|
|
|
|
|
$ |
2,404,666 |
|
|
|
|
|
$ |
2,422,415 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NOW and money market |
|
$ |
726,054 |
|
$ |
1,072 |
|
0.59 |
% |
$ |
721,222 |
|
$ |
1,181 |
|
0.66 |
% |
$ |
692,659 |
|
$ |
1,182 |
|
0.68 |
% |
|
Savings |
|
10,473 |
|
4 |
|
0.15 |
% |
9,870 |
|
5 |
|
0.20 |
% |
9,309 |
|
7 |
|
0.30 |
% | ||||||
|
Eurodollar |
|
97,005 |
|
180 |
|
0.73 |
% |
93,224 |
|
174 |
|
0.74 |
% |
118,278 |
|
267 |
|
0.88 |
% | ||||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Brokered under $100,000 |
|
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% |
387 |
|
2 |
|
2.05 |
% | ||||||
|
Reciprocal |
|
93,158 |
|
130 |
|
0.55 |
% |
97,478 |
|
144 |
|
0.59 |
% |
160,051 |
|
370 |
|
0.92 |
% | ||||||
|
Under $100,000 |
|
36,585 |
|
79 |
|
0.86 |
% |
38,794 |
|
93 |
|
0.96 |
% |
45,225 |
|
147 |
|
1.29 |
% | ||||||
|
$100,000 and over |
|
216,096 |
|
431 |
|
0.79 |
% |
232,456 |
|
535 |
|
0.92 |
% |
285,195 |
|
890 |
|
1.24 |
% | ||||||
|
Total interest-bearing deposits |
|
$ |
1,179,371 |
|
$ |
1,896 |
|
0.64 |
% |
$ |
1,193,044 |
|
$ |
2,132 |
|
0.72 |
% |
$ |
1,311,104 |
|
$ |
2,865 |
|
0.87 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Securities sold under agreements to repurchase |
|
160,807 |
|
216 |
|
0.53 |
% |
160,832 |
|
209 |
|
0.51 |
% |
158,954 |
|
275 |
|
0.68 |
% | ||||||
|
Other short-term borrowings |
|
13,914 |
|
9 |
|
0.25 |
% |
7,795 |
|
4 |
|
0.20 |
% |
2,640 |
|
2 |
|
0.30 |
% | ||||||
|
Long term-debt |
|
93,150 |
|
1,517 |
|
6.37 |
% |
93,150 |
|
1,501 |
|
6.37 |
% |
93,150 |
|
1,521 |
|
6.39 |
% | ||||||
|
Total interest-bearing liabilities |
|
$ |
1,447,242 |
|
$ |
3,638 |
|
0.99 |
% |
$ |
1,454,821 |
|
$ |
3,846 |
|
1.05 |
% |
$ |
1,565,848 |
|
$ |
4,663 |
|
1.17 |
% |
|
Noninterest-bearing demand accounts |
|
701,488 |
|
|
|
|
|
717,338 |
|
|
|
|
|
610,933 |
|
|
|
|
| ||||||
|
Total deposits and interest-bearing liabilities |
|
2,148,730 |
|
|
|
|
|
2,172,159 |
|
|
|
|
|
2,176,781 |
|
|
|
|
| ||||||
|
Other noninterest-bearing liabilities |
|
29,745 |
|
|
|
|
|
23,621 |
|
|
|
|
|
27,297 |
|
|
|
|
| ||||||
|
Total liabilities |
|
2,178,475 |
|
|
|
|
|
2,195,780 |
|
|
|
|
|
2,204,078 |
|
|
|
|
| ||||||
|
Total equity |
|
207,462 |
|
|
|
|
|
208,886 |
|
|
|
|
|
218,337 |
|
|
|
|
| ||||||
|
Total liabilities and equity |
|
$ |
2,385,937 |
|
|
|
|
|
$ |
2,404,666 |
|
|
|
|
|
$ |
2,422,415 |
|
|
|
|
| |||
|
Net interest income - taxable equivalent |
|
|
|
$ |
24,318 |
|
|
|
|
|
$ |
24,640 |
|
|
|
|
|
$ |
23,999 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
3.78 |
% |
|
|
|
|
3.83 |
% |
|
|
|
|
3.78 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
4.32 |
% |
|
|
|
|
4.40 |
% |
|
|
|
|
4.33 |
% | ||||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
154.14 |
% |
|
|
|
|
154.27 |
% |
|
|
|
|
140.51 |
% |
|
|
|
| ||||||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
|
|
|
For the nine months ended September 30, |
| ||||||||||||||
|
|
|
2011 |
|
2010 |
| ||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Federal funds sold and other |
|
$ |
34,350 |
|
$ |
102 |
|
0.39 |
% |
$ |
27,941 |
|
$ |
106 |
|
0.50 |
% |
|
Investment securities |
|
620,093 |
|
17,268 |
|
3.71 |
% |
545,189 |
|
16,696 |
|
4.08 |
% | ||||
|
Loans |
|
1,650,171 |
|
67,469 |
|
5.39 |
% |
1,717,693 |
|
71,321 |
|
5.48 |
% | ||||
|
Allowance for loan losses |
|
(63,717 |
) |
|
|
|
|
(72,255 |
) |
|
|
|
| ||||
|
Total interest earning-assets |
|
$ |
2,240,897 |
|
$ |
84,839 |
|
4.85 |
% |
$ |
2,218,568 |
|
$ |
88,123 |
|
5.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Noninterest-earning assets |
|
159,721 |
|
|
|
|
|
210,793 |
|
|
|
|
| ||||
|
Total assets |
|
$ |
2,400,618 |
|
|
|
|
|
$ |
2,429,361 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NOW and money market |
|
$ |
708,065 |
|
$ |
3,359 |
|
0.63 |
% |
$ |
710,107 |
|
$ |
3,771 |
|
0.71 |
% |
|
Savings |
|
9,906 |
|
14 |
|
0.19 |
% |
9,824 |
|
24 |
|
0.33 |
% | ||||
|
Eurodollar |
|
95,964 |
|
536 |
|
0.74 |
% |
111,251 |
|
794 |
|
0.94 |
% | ||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Brokered under $100,000 |
|
7 |
|
— |
|
1.37 |
% |
2,322 |
|
38 |
|
2.19 |
% | ||||
|
Reciprocal |
|
113,202 |
|
537 |
|
0.63 |
% |
171,836 |
|
1,315 |
|
1.02 |
% | ||||
|
Under $100,000 |
|
38,873 |
|
279 |
|
0.96 |
% |
48,230 |
|
541 |
|
1.50 |
% | ||||
|
$100,000 and over |
|
225,938 |
|
1,555 |
|
0.92 |
% |
318,783 |
|
3,376 |
|
1.42 |
% | ||||
|
Total interest-bearing deposits |
|
$ |
1,191,955 |
|
$ |
6,280 |
|
0.70 |
% |
$ |
1,372,353 |
|
$ |
9,859 |
|
0.96 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Securities sold under agreements to repurchase |
|
159,494 |
|
632 |
|
0.52 |
% |
143,630 |
|
862 |
|
0.79 |
% | ||||
|
Other short-term borrowings |
|
9,351 |
|
18 |
|
0.25 |
% |
9,946 |
|
22 |
|
0.29 |
% | ||||
|
Long-term debt |
|
93,150 |
|
4,501 |
|
6.37 |
% |
93,150 |
|
4,171 |
|
5.90 |
% | ||||
|
Total interest-bearing liabilities |
|
$ |
1,453,950 |
|
$ |
11,431 |
|
1.04 |
% |
$ |
1,619,079 |
|
$ |
14,914 |
|
1.22 |
% |
|
Noninterest-bearing demand accounts |
|
713,306 |
|
|
|
|
|
563,934 |
|
|
|
|
| ||||
|
Total deposits and interest-bearing liabilities |
|
2,167,256 |
|
|
|
|
|
2,183,013 |
|
|
|
|
| ||||
|
Other noninterest-bearing liabilities |
|
26,114 |
|
|
|
|
|
20,885 |
|
|
|
|
| ||||
|
Total liabilities |
|
2,193,370 |
|
|
|
|
|
2,203,898 |
|
|
|
|
| ||||
|
Total equity |
|
207,248 |
|
|
|
|
|
225,463 |
|
|
|
|
| ||||
|
Total liabilities and equity |
|
$ |
2,400,618 |
|
|
|
|
|
$ |
2,429,361 |
|
|
|
|
| ||
|
Net interest income - taxable equivalent |
|
|
|
$ |
73,408 |
|
|
|
|
|
$ |
73,209 |
|
|
| ||
|
Net interest spread |
|
|
|
|
|
3.81 |
% |
|
|
|
|
3.85 |
% | ||||
|
Net interest margin |
|
|
|
|
|
4.38 |
% |
|
|
|
|
4.41 |
% | ||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
154.12 |
% |
|
|
|
|
137.03 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
September 30, 2011
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(in thousands, except per share amounts)
The Company believes these Non-GAAP measurements are useful to obtain an understanding of the operating results of the Company’s core business and reflects the basis on which management internally reviews financial performance and capital adequacy. These Non-GAAP measurements are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to Non-GAAP performance measures that may be presented by other companies.
The following table includes Non-GAAP financial measurements related to tangible equity, tangible common equity and tangible assets. These items have been adjusted to exclude Intangible assets and preferred stock.
|
|
|
|
|
At |
| |||||||||||||
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
|
|
|
|
2011 |
|
2011 |
|
2011 |
|
2010 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Shareholders’ equity as reported - GAAP |
|
$ |
199,341 |
|
$ |
209,137 |
|
$ |
205,658 |
|
$ |
201,738 |
|
$ |
215,539 |
|
|
|
|
Intangible assets |
|
(3,558 |
) |
(3,718 |
) |
(3,877 |
) |
(4,119 |
) |
(4,279 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A |
|
Tangible equity - Non-GAAP |
|
195,783 |
|
205,419 |
|
201,781 |
|
197,619 |
|
211,260 |
| |||||
|
|
|
Preferred stock |
|
(57,359 |
) |
(62,697 |
) |
(62,555 |
) |
(62,414 |
) |
(62,276 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B |
|
Tangible common equity - Non-GAAP |
|
$ |
138,424 |
|
$ |
142,722 |
|
$ |
139,226 |
|
$ |
135,205 |
|
$ |
148,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Total assets as reported - GAAP |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
$ |
2,413,226 |
|
$ |
2,395,088 |
|
$ |
2,419,245 |
|
|
|
|
Intangible assets |
|
(3,558 |
) |
(3,718 |
) |
(3,877 |
) |
(4,119 |
) |
(4,279 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
C |
|
Total tangible assets - Non-GAAP |
|
$ |
2,412,494 |
|
$ |
2,414,517 |
|
$ |
2,409,349 |
|
$ |
2,390,969 |
|
$ |
2,414,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
D |
|
Common shares outstanding |
|
37,067 |
|
37,042 |
|
37,044 |
|
36,877 |
|
36,842 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / C |
|
Tangible common equity to tangible assets - Non-GAAP |
|
5.74 |
% |
5.91 |
% |
5.78 |
% |
5.65 |
% |
6.17 |
% | |||||
|
A / C |
|
Tangible equity to tangible assets - Non-GAAP |
|
8.12 |
% |
8.51 |
% |
8.37 |
% |
8.27 |
% |
8.75 |
% | |||||
|
B / D |
|
Tangible book value per common share - Non-GAAP |
|
$ |
3.73 |
|
$ |
3.85 |
|
$ |
3.76 |
|
$ |
3.67 |
|
$ |
4.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Net income available to common shareholders as reported - GAAP |
|
$ |
1,908 |
|
|
|
|
|
|
|
|
| ||||
|
|
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Accretion of preferred stock discount recorded in the quarter of redemption and original issuance costs |
|
1,753 |
|
|
|
|
|
|
|
|
| |||||
|
|
|
Adjusted net income available to common shareholders- Non-GAAP |
|
$ |
3,661 |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Earnings per common share - GAAP |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
| ||||
|
|
|
Effect of discount accretion and issuance cost exclusion |
|
0.05 |
|
|
|
|
|
|
|
|
| |||||
|
|
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
| ||||