Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | a12-24390_18k.htm |
Exhibit 99.1
CoBiz Financial Announces Third Quarter 2012 Results
Reports net income of $6.3 million; 180% increase in EPS
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.6 billion in assets, announced net income of $6.3 million for the third quarter of 2012, as compared to net income of $4.4 million for the third quarter of 2011. Net income available to common shareholders was $0.14 per diluted common share versus $0.05 per diluted common share in the prior-year quarter.
Financial Highlights — Third quarter 2012
· After preferred dividends, net income available to common shareholders increased $3.7 million, or 195%, to $5.6 million from $1.9 million for the quarter ended September 30, 2011.
· Outstanding loans increased 2.5% (10.0% annualized) during the quarter, or $44.7 million compared to the prior linked-quarter end.
· Continued improvement in credit quality led to a $2.5 million negative provision expense in the third quarter of 2012.
Financial Summary
|
|
|
Quarter ended |
|
3Q12 change vs. |
| |||||||||||||||
|
(in thousands, except per share amounts) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
|
2Q12 |
|
3Q11 |
| |||||||||
|
Net interest income before provision |
|
$ |
23,247 |
|
$ |
23,624 |
|
$ |
23,974 |
|
$ |
(377 |
) |
(1.6 |
)% |
$ |
(727 |
) |
(3.0 |
)% |
|
Provision for loan losses |
|
(2,506 |
) |
(1,820 |
) |
— |
|
(686 |
) |
37.7 |
% |
(2,506 |
) |
(100.0 |
)% | |||||
|
Net interest income after provision |
|
25,753 |
|
25,444 |
|
23,974 |
|
309 |
|
1.2 |
% |
1,779 |
|
7.4 |
% | |||||
|
Total noninterest income |
|
7,237 |
|
7,753 |
|
6,051 |
|
(516 |
) |
(6.7 |
)% |
1,186 |
|
19.6 |
% | |||||
|
Total noninterest expense |
|
23,014 |
|
23,850 |
|
23,230 |
|
(836 |
) |
(3.5 |
)% |
(216 |
) |
(0.9 |
)% | |||||
|
Net income before income taxes |
|
9,976 |
|
9,347 |
|
6,795 |
|
629 |
|
6.7 |
% |
3,181 |
|
46.8 |
% | |||||
|
Provision for income taxes |
|
3,627 |
|
3,197 |
|
2,352 |
|
430 |
|
13.5 |
% |
1,275 |
|
54.2 |
% | |||||
|
Net income |
|
6,349 |
|
6,150 |
|
4,443 |
|
199 |
|
3.2 |
% |
1,906 |
|
42.9 |
% | |||||
|
Preferred stock dividends |
|
(717 |
) |
(717 |
) |
(2,535 |
) |
— |
|
0.0 |
% |
1,818 |
|
(71.7 |
)% | |||||
|
Net income available to common shareholders |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
1,908 |
|
$ |
199 |
|
3.7 |
% |
$ |
3,724 |
|
195.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings per diluted common share |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.05 |
|
$ |
— |
|
0.0 |
% |
$ |
0.09 |
|
180.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
KEY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.00 |
% |
4.19 |
% |
4.32 |
% |
|
|
|
|
|
|
|
| |||||
|
Efficiency ratio |
|
75.28 |
% |
74.32 |
% |
74.52 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average assets |
|
1.00 |
% |
1.00 |
% |
0.74 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average shareholders’ equity |
|
10.23 |
% |
10.22 |
% |
8.50 |
% |
|
|
|
|
|
|
|
| |||||
|
Noninterest income as a percentage of operating revenues |
|
23.74 |
% |
24.71 |
% |
20.15 |
% |
|
|
|
|
|
|
|
| |||||
“We are very pleased with our third quarter operating results,” said Chairman and CEO Steve Bangert. “We significantly improved the return to our shareholders over the past year, increasing EPS by 180%.
“Bolstering our earnings was a continued improvement in credit quality. In addition, the investments we have made in niche lending areas have begun to pay off. During the quarter we were able to grow our loan portfolio by 10% annualized, the third consecutive quarter we have experienced double-digit annualized loan growth. Our biggest challenge continues to be the net interest margin, as low interest rates have accelerated investment prepayments and brought the yield on new lending activity to record lows. As the interest rate environment continues to pressure our net interest margin, we are fortunate to have the loan growth momentum going into the fourth quarter, and are looking forward to seasonally stronger fee income.”
Loans
· Loans at September 30, 2012 were $1.8 billion, an increase of $44.7 million and $151.6 million from the linked- and prior-year quarter ends, respectively.
· The Commercial & Industrial (C&I) portfolio totaled $663.9 million, or 36.6% of total loans at September 30, 2012. Owner-occupied commercial real estate loans tied to the Company’s C&I portfolio were $425.2 million, or 23.5% of total loans. Overall, 60.1% of total loans at September 30, 2012 related to the Company’s C&I book.
|
|
|
|
|
|
|
|
|
3Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
|
2Q12 |
|
3Q11 |
| |||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial & industrial |
|
$ |
663,880 |
|
$ |
628,327 |
|
$ |
587,345 |
|
$ |
35,553 |
|
5.7 |
% |
$ |
76,535 |
|
13.0 |
% |
|
Owner occupied real estate |
|
425,217 |
|
431,968 |
|
425,062 |
|
(6,751 |
) |
(1.6 |
)% |
155 |
|
0.0 |
% | |||||
|
Investor real estate |
|
425,607 |
|
400,673 |
|
357,709 |
|
24,934 |
|
6.2 |
% |
67,898 |
|
19.0 |
% | |||||
|
Land acquisition & development |
|
54,220 |
|
56,455 |
|
67,944 |
|
(2,235 |
) |
(4.0 |
)% |
(13,724 |
) |
(20.2 |
)% | |||||
|
Real estate - construction |
|
56,180 |
|
65,761 |
|
68,442 |
|
(9,581 |
) |
(14.6 |
)% |
(12,262 |
) |
(17.9 |
)% | |||||
|
Consumer |
|
137,299 |
|
132,510 |
|
112,709 |
|
4,789 |
|
3.6 |
% |
24,590 |
|
21.8 |
% | |||||
|
Other |
|
49,004 |
|
50,994 |
|
40,588 |
|
(1,990 |
) |
(3.9 |
)% |
8,416 |
|
20.7 |
% | |||||
|
Total loans |
|
$ |
1,811,407 |
|
$ |
1,766,688 |
|
$ |
1,659,799 |
|
$ |
44,719 |
|
2.5 |
% |
$ |
151,608 |
|
9.1 |
% |
· New credit of $134.8 million was added during the third quarter and advances on existing lines totaled $54.6 million. New and advanced loans were offset by paydowns and maturities of $141.7 million during the third quarter. In addition, the Company charged-off, excluding recoveries, $3.0 million during the third quarter.
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
1Q12 |
|
4Q11 |
|
3Q11 |
| |||||
|
Loans - beginning balance |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
|
New credit extended |
|
134,767 |
|
164,414 |
|
96,251 |
|
93,706 |
|
107,904 |
| |||||
|
Credit advanced |
|
54,642 |
|
77,683 |
|
72,540 |
|
59,709 |
|
58,371 |
| |||||
|
Paydowns & maturities |
|
(141,705 |
) |
(152,017 |
) |
(124,456 |
) |
(169,778 |
) |
(159,991 |
) | |||||
|
Gross loan charge-offs |
|
(2,985 |
) |
(1,839 |
) |
(3,312 |
) |
(6,012 |
) |
(3,435 |
) | |||||
|
Loans - ending balance |
|
$ |
1,811,407 |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net change - loans outstanding |
|
$ |
44,719 |
|
$ |
88,241 |
|
$ |
41,023 |
|
$ |
(22,375 |
) |
$ |
2,849 |
|
|
Net change, excluding charge-offs |
|
47,704 |
|
90,080 |
|
44,335 |
|
(16,363 |
) |
6,284 |
| |||||
· Gross credit commitments increased by $42.1 million, or 4.3%, on a linked-quarter basis and by $55.1 million from the prior-year quarter.
· The aggregate amount drawn on credit lines was relatively flat from the prior linked-quarter end. As a result, line utilization decreased to 40.4% from 42.0% on a linked-quarter end basis. Line utilization was 41.6% at September 30, 2011.
Investment Securities
· The Company had investment securities available for sale with a carrying value of $592.1 million at September 30, 2012, a $19.8 million decrease from June 30, 2012.
· The majority of the decrease was driven by mortgage-backed security prepayments and redemptions of Trust Preferred Securities (TruPS) held in the
Company’s investment portfolio. At September 30, 2012, the Company had $73.9 million in TruPS, a decrease of $12.6 million from the second quarter of 2012.
· The unrealized gain on the investment portfolio increased $3.7 million from June 30, 2012, to $18.9 million at September 30, 2012.
Deposits and Customer Repurchase Agreements (Repo)
· Deposit and Customer Repo balances at September 30, 2012 were $2.2 billion, an increase of $99.5 million and $161.2 million from the linked- and prior-year quarter ends, respectively.
· Noninterest-bearing demand accounts were 40.2% of total deposits at September 30, 2012.
· As a result of the Company’s favorable funding mix, the average cost of total deposits for the third quarter of 2012 decreased to 31 basis points, compared to 40 basis points in the prior-year quarter.
|
|
|
|
|
|
|
|
|
3Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
|
2Q12 |
|
3Q11 |
| |||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
813,202 |
|
$ |
767,102 |
|
$ |
718,689 |
|
$ |
46,100 |
|
6.0 |
% |
$ |
94,513 |
|
13.2 |
% |
|
Savings |
|
10,659 |
|
10,278 |
|
10,251 |
|
381 |
|
3.7 |
% |
408 |
|
4.0 |
% | |||||
|
Eurodollar |
|
— |
|
— |
|
104,971 |
|
— |
|
0.0 |
% |
(104,971 |
) |
(100.0 |
)% | |||||
|
Interest-bearing demand |
|
117,915 |
|
115,684 |
|
— |
|
2,231 |
|
1.9 |
% |
117,915 |
|
100.0 |
% | |||||
|
Certificates of deposits under $100,000 |
|
30,574 |
|
31,399 |
|
36,126 |
|
(825 |
) |
(2.6 |
)% |
(5,552 |
) |
(15.4 |
)% | |||||
|
Certificates of deposits $100,000 and over |
|
162,595 |
|
166,938 |
|
208,965 |
|
(4,343 |
) |
(2.6 |
)% |
(46,370 |
) |
(22.2 |
)% | |||||
|
Reciprocal CDARS |
|
90,468 |
|
94,336 |
|
93,909 |
|
(3,868 |
) |
(4.1 |
)% |
(3,441 |
) |
(3.7 |
)% | |||||
|
Total interest-bearing deposits |
|
1,225,413 |
|
1,185,737 |
|
1,172,911 |
|
39,676 |
|
3.3 |
% |
52,502 |
|
4.5 |
% | |||||
|
Noninterest-bearing demand deposits |
|
823,363 |
|
761,252 |
|
707,606 |
|
62,111 |
|
8.2 |
% |
115,757 |
|
16.4 |
% | |||||
|
Customer repurchase agreements |
|
124,836 |
|
127,144 |
|
131,877 |
|
(2,308 |
) |
(1.8 |
)% |
(7,041 |
) |
(5.3 |
)% | |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,173,612 |
|
$ |
2,074,133 |
|
$ |
2,012,394 |
|
$ |
99,479 |
|
4.8 |
% |
$ |
161,218 |
|
8.0 |
% |
Allowance for Loan and Credit Losses and Credit Quality
· Nonperforming assets (NPAs) were $34.3 million at September 30, 2012, a decrease of 45.0% from the prior-year quarter. NPAs decreased by $4.3 million, or 11.2% on a linked-quarter basis.
· NPAs to total assets decreased to 1.34% at September 30, 2012, from 2.58% at September 30, 2011.
· As a result of the improvement in credit quality measures and growth in the loan portfolio, the Allowance for Loan and Credit Losses (Allowance) to Loan ratio decreased to 2.57%. However, the coverage of Allowance to nonperforming loans increased to 225% from 205% at June 30, 2012.
· The Company recognized net charge-offs of $2.2 million in the third quarter of 2012 (all of which had been previously reserved for in a prior period), compared to a net recovery of $0.1 million in the second quarter of 2012. Net charge-offs were $2.2 million in the prior-year quarter.
· Due to the reduction in problem assets, a provision for loan loss reversal of $2.5 million was recorded during the quarter.
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
| |||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
| |||
|
Beginning allowance for loan losses |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
61,920 |
|
|
Provision for loan losses |
|
(2,506 |
) |
(1,820 |
) |
— |
| |||
|
Net recovery (charge-off) |
|
(2,158 |
) |
143 |
|
(2,225 |
) | |||
|
Ending allowance for loan losses |
|
$ |
46,437 |
|
$ |
51,101 |
|
$ |
59,695 |
|
|
|
|
|
|
|
|
|
| |||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
Provision for credit losses |
|
— |
|
— |
|
— |
| |||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
| |||
|
Total provision for loan and credit losses |
|
$ |
(2,506 |
) |
$ |
(1,820 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
| |||
|
CREDIT QUALITY |
|
|
|
|
|
|
| |||
|
Nonaccrual loans |
|
$ |
19,471 |
|
$ |
24,950 |
|
$ |
41,365 |
|
|
Loans 90 days or more past due and accruing interest |
|
1,183 |
|
— |
|
— |
| |||
|
Total nonperforming loans |
|
20,654 |
|
24,950 |
|
41,365 |
| |||
|
OREO and repossessed assets |
|
13,619 |
|
13,651 |
|
20,986 |
| |||
|
Total nonperforming assets |
|
$ |
34,273 |
|
$ |
38,601 |
|
$ |
62,351 |
|
|
|
|
|
|
|
|
|
| |||
|
Performing renegotiated loans |
|
$ |
34,637 |
|
$ |
36,010 |
|
$ |
659 |
|
|
|
|
|
|
|
|
|
| |||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
| |||
|
Nonperforming assets to total assets |
|
1.34 |
% |
1.53 |
% |
2.58 |
% | |||
|
Nonperforming loans to total loans |
|
1.14 |
% |
1.41 |
% |
2.49 |
% | |||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.88 |
% |
2.17 |
% |
3.71 |
% | |||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
2.57 |
% |
2.89 |
% |
3.60 |
% | |||
|
Allowance for loan and credit losses to nonperforming loans |
|
225.00 |
% |
204.95 |
% |
144.46 |
% | |||
Shareholders’ Equity
· Total shareholders’ equity was $251.0 million at September 30, 2012, an increase of $7.6 million and $51.7 million from the linked- and prior-year quarter ends, respectively.
· The year-over-year equity increase is the result of positive earnings, an equity offering executed in the second quarter of 2012 for net proceeds of $11.8 million, and the reversal of a $15.6 million deferred tax asset (DTA) valuation allowance recorded in the fourth quarter of 2011.
· Tangible common equity increased to 7.5% of tangible assets at September 30, 2012, from 5.7% at the prior-year quarter end.
· The Board of Directors of the Company declared a $0.02 cash dividend on our common stock to be paid on November 5, 2012 to shareholders of record on October 29, 2012.
|
(in thousands, except per share amounts) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
| |||
|
EQUITY MEASURES |
|
|
|
|
|
|
| |||
|
Common shareholders’ equity |
|
$ |
193,692 |
|
$ |
186,097 |
|
$ |
141,982 |
|
|
Total shareholders’ equity |
|
251,030 |
|
243,435 |
|
199,341 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Common shares outstanding at period end |
|
39,729 |
|
39,708 |
|
37,067 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Book value per common share |
|
$ |
4.88 |
|
$ |
4.69 |
|
$ |
3.83 |
|
|
Tangible book value per common share * |
|
4.80 |
|
4.60 |
|
3.73 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Tangible common equity to tangible assets * |
|
7.45 |
% |
7.23 |
% |
5.74 |
% | |||
|
Tangible equity to tangible assets * |
|
9.69 |
% |
9.50 |
% |
8.12 |
% | |||
|
Tier 1 capital ratio |
|
|
** |
15.01 |
% |
13.21 |
% | |||
|
Total-risk based capital ratio |
|
|
** |
17.32 |
% |
15.68 |
% | |||
* See accompanying reconciliation of non-GAAP measures to GAAP
** Ratios unavailable at the time of release.
Net Interest Income and Margin
· Net interest income for the third quarter of 2012 decreased $0.3 million on a tax-equivalent basis from the prior linked-quarter, to $23.8 million.
· Net interest margin (NIM) for the third quarter of 2012 contracted by 19 basis points on a linked-quarter basis to 4.00%, and decreased 32 basis points from the prior-year quarter NIM.
· Average earning assets of $2.37 billion increased $55.9 million on a linked-quarter basis.
· The average net loan portfolio increased $69.7 million, while average cash and investments decreased $13.8 million, both on a linked-quarter basis.
· The yield on average earning assets in the third quarter of 2012 decreased 20 basis points to 4.37% from 4.57% in the second quarter of 2012.
· The rate paid on average interest-bearing liabilities decreased one basis point on a linked-quarter basis to 0.86%.
Noninterest Income
· As a percentage of total operating revenue, noninterest income fell to 23.7% for the third quarter, from 24.7% for the second quarter of 2012, but increased compared to the 20.2% reported in the prior-year quarter.
· The linked-quarter decrease in noninterest income for the third quarter of 2012 is primarily attributable to lower revenues from life insurance placement and equity method investments.
|
|
|
Quarter ended |
|
3Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
|
2Q12 |
|
3Q11 |
| |||||||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,218 |
|
$ |
1,223 |
|
$ |
1,274 |
|
$ |
(5 |
) |
(0.4 |
)% |
$ |
(56 |
) |
(4.4 |
)% |
|
Investment advisory and trust income |
|
1,450 |
|
1,253 |
|
1,291 |
|
197 |
|
15.7 |
% |
159 |
|
12.3 |
% | |||||
|
Insurance income |
|
2,971 |
|
3,400 |
|
2,952 |
|
(429 |
) |
(12.6 |
)% |
19 |
|
0.6 |
% | |||||
|
Investment banking income |
|
253 |
|
148 |
|
205 |
|
105 |
|
70.9 |
% |
48 |
|
23.4 |
% | |||||
|
Other income |
|
1,345 |
|
1,729 |
|
329 |
|
(384 |
) |
(22.2 |
)% |
1,016 |
|
308.8 |
% | |||||
|
Total noninterest income |
|
$ |
7,237 |
|
$ |
7,753 |
|
$ |
6,051 |
|
$ |
(516 |
) |
(6.7 |
)% |
$ |
1,186 |
|
19.6 |
% |
Operating Expenses
· The Company’s efficiency ratio for the third quarter of 2012 was 75.3%, compared to 74.3% for the second quarter of 2012 and 74.5% for the third quarter of 2011.
· Salaries and employee benefits were relatively flat on a linked-quarter basis.
· The increase in compensation-related expenses over the prior-year quarter is attributed to increased bonus accruals for the Bank and higher medical claims on the Company’s self-insured medical plan.
· In the third quarter of 2012, the Company recorded net gains on OREO and other assets of $0.1 million. OREO losses during the current period were $0.2 million, which were offset by a gain realized on a lease termination for a previously announced branch closure in Surprise, Arizona.
|
|
|
Quarter ended |
|
3Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
3Q12 |
|
2Q12 |
|
3Q11 |
|
2Q12 |
|
3Q11 |
| |||||||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,791 |
|
$ |
14,746 |
|
$ |
14,212 |
|
$ |
45 |
|
0.3 |
% |
$ |
579 |
|
4.1 |
% |
|
Stock-based compensation expense |
|
505 |
|
516 |
|
372 |
|
(11 |
) |
(2.1 |
)% |
133 |
|
35.8 |
% | |||||
|
Occupancy expenses, premises and equipment |
|
3,398 |
|
3,426 |
|
3,358 |
|
(28 |
) |
(0.8 |
)% |
40 |
|
1.2 |
% | |||||
|
Amortization of intangibles |
|
292 |
|
159 |
|
160 |
|
133 |
|
83.6 |
% |
132 |
|
82.5 |
% | |||||
|
Other operating expenses |
|
3,963 |
|
4,474 |
|
4,272 |
|
(511 |
) |
(11.4 |
)% |
(309 |
) |
(7.2 |
)% | |||||
|
(Gain) loss on OREO, repossessed assets and other |
|
(102 |
) |
1,070 |
|
674 |
|
(1,172 |
) |
(109.5 |
)% |
(776 |
) |
(115.1 |
)% | |||||
|
(Gain) loss on investment securities |
|
167 |
|
(541 |
) |
182 |
|
708 |
|
(130.9 |
)% |
(15 |
) |
(8.2 |
)% | |||||
|
Total noninterest expense |
|
$ |
23,014 |
|
$ |
23,850 |
|
$ |
23,230 |
|
$ |
(836 |
) |
(3.5 |
)% |
$ |
(216 |
) |
(0.9 |
)% |
NM = Not meaningful
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, October 19, 2012, at 9:00 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=89641or by telephone at 877.493.9121, (conference ID #34172135). 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 and reflects the basis on which management internally reviews financial performance and capital adequacy. 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 $2.6 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. Forward-looking statements include statements about future performance and results of operations. 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”, “should” or “may.” Forward-looking statements speak only as of the date they are made. 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. 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 and implementation of current legislative or regulatory requirements 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.
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, 2012
(unaudited)
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
26,449 |
|
$ |
27,612 |
|
$ |
79,885 |
|
$ |
83,980 |
|
|
Interest expense |
|
3,202 |
|
3,638 |
|
9,711 |
|
11,431 |
| ||||
|
NET INTEREST INCOME BEFORE PROVISION |
|
23,247 |
|
23,974 |
|
70,174 |
|
72,549 |
| ||||
|
Provision for loan losses |
|
(2,506 |
) |
— |
|
(4,396 |
) |
3,622 |
| ||||
|
NET INTEREST INCOME AFTER PROVISION |
|
25,753 |
|
23,974 |
|
74,570 |
|
68,927 |
| ||||
|
Noninterest income |
|
7,237 |
|
6,051 |
|
23,201 |
|
22,873 |
| ||||
|
Noninterest expense |
|
23,014 |
|
23,230 |
|
71,510 |
|
73,934 |
| ||||
|
INCOME BEFORE INCOME TAXES |
|
9,976 |
|
6,795 |
|
26,261 |
|
17,866 |
| ||||
|
Provision for income taxes |
|
3,627 |
|
2,352 |
|
9,222 |
|
6,358 |
| ||||
|
NET INCOME |
|
$ |
6,349 |
|
$ |
4,443 |
|
$ |
17,039 |
|
$ |
11,508 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Preferred stock dividends |
|
(717 |
) |
(2,535 |
) |
(2,151 |
) |
(4,430 |
) | ||||
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
5,632 |
|
$ |
1,908 |
|
$ |
14,888 |
|
$ |
7,078 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
$ |
0.14 |
|
$ |
0.05 |
|
$ |
0.38 |
|
$ |
0.19 |
|
|
DILUTED |
|
$ |
0.14 |
|
$ |
0.05 |
|
$ |
0.38 |
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
| ||||
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
39,729 |
|
37,067 |
| ||||
|
Book value per common share |
|
|
|
|
|
$ |
4.88 |
|
$ |
3.83 |
| ||
|
Tangible book value per common share * |
|
|
|
|
|
$ |
4.80 |
|
$ |
3.73 |
| ||
|
Tangible common equity to tangible assets * |
|
|
|
|
|
7.45 |
% |
5.74 |
% | ||||
|
Tangible equity to tangible assets * |
|
|
|
|
|
9.69 |
% |
8.12 |
% | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
| ||||
|
* See accompanying Non-GAAP reconciliation. |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
| ||||
|
Total Assets |
|
|
|
|
|
$ |
2,559,954 |
|
$ |
2,416,052 |
| ||
|
Loans |
|
|
|
|
|
1,811,407 |
|
1,659,799 |
| ||||
|
Intangible Assets |
|
|
|
|
|
3,148 |
|
3,558 |
| ||||
|
Deposits |
|
|
|
|
|
2,048,775 |
|
1,880,517 |
| ||||
|
Subordinated Debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||||
|
Common Shareholders’ Equity |
|
|
|
|
|
193,692 |
|
141,982 |
| ||||
|
Total Shareholders’ Equity |
|
|
|
|
|
251,030 |
|
199,341 |
| ||||
|
Interest-Earning Assets |
|
|
|
|
|
2,382,653 |
|
2,241,026 |
| ||||
|
Interest-Bearing Liabilities |
|
|
|
|
|
1,443,399 |
|
1,476,323 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
| ||||
|
Average Assets |
|
|
|
|
|
$ |
2,477,379 |
|
$ |
2,400,618 |
| ||
|
Average Loans |
|
|
|
|
|
1,713,940 |
|
1,650,171 |
| ||||
|
Average Deposits |
|
|
|
|
|
1,919,983 |
|
1,905,261 |
| ||||
|
Average Subordinated Debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||||
|
Average Shareholders’ Equity |
|
|
|
|
|
237,957 |
|
207,248 |
| ||||
|
Average Interest-Earning Assets |
|
|
|
|
|
2,308,421 |
|
2,240,897 |
| ||||
|
Average Interest-Bearing Liabilities |
|
|
|
|
|
1,464,960 |
|
1,453,950 |
| ||||
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||
|
(in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Net Interest Margin |
|
4.00 |
% |
4.32 |
% |
4.14 |
% |
4.38 |
% | ||
|
Efficiency Ratio |
|
75.28 |
% |
74.52 |
% |
75.46 |
% |
74.17 |
% | ||
|
Return on Average Assets |
|
1.00 |
% |
0.74 |
% |
0.92 |
% |
0.64 |
% | ||
|
Return on Average Shareholders’ Equity |
|
10.23 |
% |
8.50 |
% |
9.56 |
% |
7.42 |
% | ||
|
Noninterest Income as a Percentage of Operating Revenues |
|
23.74 |
% |
20.15 |
% |
24.85 |
% |
23.97 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming Loans |
|
|
|
|
|
|
|
|
| ||
|
Nonaccrual Loans |
|
|
|
|
|
$ |
19,471 |
|
$ |
41,365 |
|
|
Loans 90 days or More Past Due and Accruing Interest |
|
|
|
|
|
1,183 |
|
— |
| ||
|
Total Nonperforming Loans |
|
|
|
|
|
$ |
20,654 |
|
$ |
41,365 |
|
|
OREO & Repossessed Assets |
|
|
|
|
|
13,619 |
|
20,986 |
| ||
|
Total Nonperforming Assets |
|
|
|
|
|
$ |
34,273 |
|
$ |
62,351 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Performing renegotiated loans |
|
|
|
|
|
$ |
34,637 |
|
$ |
659 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Charge-offs |
|
|
|
|
|
$ |
(8,136 |
) |
$ |
(12,734 |
) |
|
Recoveries |
|
|
|
|
|
3,340 |
|
2,915 |
| ||
|
Net Charge-offs |
|
|
|
|
|
$ |
(4,796 |
) |
$ |
(9,819 |
) |
|
|
|
|
|
|
|
|
|
|
| ||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming Assets to Total Assets |
|
|
|
|
|
1.34 |
% |
2.58 |
% | ||
|
Nonperforming Loans to Total Loans |
|
|
|
|
|
1.14 |
% |
2.49 |
% | ||
|
Nonperforming Loans and OREO to Total Loans and OREO |
|
|
|
|
|
1.88 |
% |
3.71 |
% | ||
|
Allowance for Loan and Credit Losses to Total Loans (excluding loans held for sale) |
|
|
|
|
|
2.57 |
% |
3.60 |
% | ||
|
Allowance for Loan and Credit Losses to Nonperforming Loans |
|
|
|
|
|
225.00 |
% |
144.46 |
% | ||
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
| ||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
| ||||
|
Commercial |
|
$ |
1,484 |
|
$ |
1,445 |
|
$ |
2,929 |
|
$ |
663,880 |
|
0.44 |
% |
|
Real estate - mortgage |
|
3,342 |
|
8,050 |
|
11,392 |
|
850,824 |
|
1.34 |
% | ||||
|
Land acquisition & development |
|
1,699 |
|
3,322 |
|
5,021 |
|
54,220 |
|
9.26 |
% | ||||
|
Real estate - construction |
|
277 |
|
370 |
|
647 |
|
56,180 |
|
1.15 |
% | ||||
|
Consumer |
|
216 |
|
449 |
|
665 |
|
137,299 |
|
0.48 |
% | ||||
|
Other loans |
|
— |
|
— |
|
— |
|
49,004 |
|
0.00 |
% | ||||
|
OREO & repossessed assets |
|
9,004 |
|
4,615 |
|
13,619 |
|
13,619 |
|
— |
| ||||
|
NPAs |
|
$ |
16,022 |
|
$ |
18,251 |
|
$ |
34,273 |
|
$ |
1,825,026 |
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans |
|
$ |
1,295,127 |
|
$ |
516,280 |
|
$ |
1,811,407 |
|
|
|
|
| |
|
Total loans and OREO |
|
1,304,131 |
|
520,895 |
|
1,825,026 |
|
|
|
|
| ||||
|
Nonperforming loans to loans |
|
0.54 |
% |
2.64 |
% |
1.14 |
% |
|
|
|
| ||||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.23 |
% |
3.50 |
% |
1.88 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
September 30, 2012
(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, 2012 |
|
$ |
24,634 |
|
$ |
1 |
|
$ |
(10 |
) |
$ |
2 |
|
$ |
(1,380 |
) |
$ |
23,247 |
|
|
Quarter ended June 30, 2012 |
|
24,993 |
|
1 |
|
(13 |
) |
1 |
|
(1,358 |
) |
23,624 |
| ||||||
|
Annualized quarterly growth |
|
(5.7 |
)% |
.0 |
% |
91.6 |
% |
396.7 |
% |
(6.4 |
)% |
(6.3 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
25,642 |
|
$ |
1 |
|
$ |
(2 |
) |
$ |
— |
|
$ |
(1,667 |
) |
$ |
23,974 |
|
|
Annual growth |
|
(3.9 |
)% |
.0 |
% |
(400.0 |
)% |
100.0 |
% |
17.2 |
% |
(3.0 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2012 |
|
$ |
2,495 |
|
$ |
253 |
|
$ |
2,013 |
|
$ |
2,412 |
|
$ |
64 |
|
$ |
7,237 |
|
|
Quarter ended June 30, 2012 |
|
2,965 |
|
148 |
|
2,134 |
|
2,517 |
|
(11 |
) |
7,753 |
| ||||||
|
Annualized quarterly growth |
|
(62.9 |
)% |
281.5 |
% |
(22.5 |
)% |
(16.6 |
)% |
NM |
|
(26.4 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
1,653 |
|
$ |
205 |
|
$ |
2,154 |
|
$ |
2,089 |
|
$ |
(50 |
) |
$ |
6,051 |
|
|
Annual growth |
|
50.9 |
% |
23.4 |
% |
(6.5 |
)% |
15.5 |
% |
228.0 |
% |
19.6 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2012 |
|
$ |
8,114 |
|
$ |
(346 |
) |
$ |
(213 |
) |
$ |
(107 |
) |
$ |
(1,099 |
) |
$ |
6,349 |
|
|
Quarter ended June 30, 2012 |
|
8,837 |
|
(455 |
) |
(359 |
) |
12 |
|
(1,885 |
) |
6,150 |
| ||||||
|
Annualized quarterly growth |
|
(32.5 |
)% |
95.0 |
% |
161.3 |
% |
NM |
|
165.4 |
% |
12.8 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
8,106 |
|
$ |
(456 |
) |
$ |
(199 |
) |
$ |
(178 |
) |
$ |
(2,830 |
) |
$ |
4,443 |
|
|
Annual growth |
|
.1 |
% |
24.1 |
% |
(7.0 |
)% |
39.9 |
% |
61.2 |
% |
42.9 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Earnings per share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2012 |
|
$ |
0.21 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
— |
|
$ |
(0.05 |
) |
$ |
0.14 |
|
|
Quarter ended June 30, 2012 |
|
0.23 |
|
(0.01 |
) |
(0.01 |
) |
— |
|
(0.07 |
) |
0.14 |
| ||||||
|
Annualized quarterly growth |
|
(34.5 |
)% |
.0 |
% |
.0 |
% |
— |
|
113.4 |
% |
(.0 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended September 30, 2011 |
|
$ |
0.22 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
— |
|
$ |
(0.15 |
) |
$ |
0.05 |
|
|
Annual growth |
|
(4.5 |
)% |
.0 |
% |
.0 |
% |
.0 |
% |
66.7 |
% |
180.0 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,811,407 |
| |||||
|
At June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
1,766,688 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
10.0 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,659,799 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
9.1 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total deposits and customer repurchase agreements |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,173,612 |
| |||||
|
At June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
2,074,133 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
19.0 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,012,394 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
8.0 |
% | ||||||
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
COMMERCIAL BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,364 |
|
$ |
26,759 |
|
$ |
26,476 |
|
$ |
27,214 |
|
$ |
27,797 |
|
|
Total interest expense |
|
1,730 |
|
1,766 |
|
1,813 |
|
1,948 |
|
2,155 |
| |||||
|
Net interest income |
|
24,634 |
|
24,993 |
|
24,663 |
|
25,266 |
|
25,642 |
| |||||
|
Provision for loan losses |
|
(2,324 |
) |
(1,841 |
) |
637 |
|
727 |
|
(2,068 |
) | |||||
|
Net interest income (loss) after provision |
|
26,958 |
|
26,834 |
|
24,026 |
|
24,539 |
|
27,710 |
| |||||
|
Noninterest income |
|
2,495 |
|
2,965 |
|
3,430 |
|
2,808 |
|
1,653 |
| |||||
|
Noninterest expense |
|
7,261 |
|
7,424 |
|
9,648 |
|
8,616 |
|
7,403 |
| |||||
|
Income (loss) before income taxes |
|
22,192 |
|
22,375 |
|
17,808 |
|
18,731 |
|
21,960 |
| |||||
|
Provision (benefit) for income taxes |
|
8,374 |
|
8,161 |
|
6,523 |
|
2,812 |
|
8,149 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
13,818 |
|
$ |
14,214 |
|
$ |
11,285 |
|
$ |
15,919 |
|
$ |
13,811 |
|
|
Management fees and overhead allocations, net of tax |
|
5,704 |
|
5,377 |
|
4,718 |
|
5,916 |
|
5,705 |
| |||||
|
Net income |
|
$ |
8,114 |
|
$ |
8,837 |
|
$ |
6,567 |
|
$ |
10,003 |
|
$ |
8,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INVESTMENT BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
1 |
|
$ |
3 |
|
$ |
2 |
|
$ |
1 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
1 |
|
1 |
|
3 |
|
2 |
|
1 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
1 |
|
3 |
|
2 |
|
1 |
| |||||
|
Noninterest income |
|
253 |
|
148 |
|
74 |
|
5,431 |
|
205 |
| |||||
|
Noninterest expense |
|
833 |
|
823 |
|
871 |
|
3,160 |
|
868 |
| |||||
|
Income (loss) before income taxes |
|
(579 |
) |
(674 |
) |
(794 |
) |
2,273 |
|
(662 |
) | |||||
|
Provision (benefit) for income taxes |
|
(266 |
) |
(260 |
) |
(303 |
) |
870 |
|
(253 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(313 |
) |
$ |
(414 |
) |
$ |
(491 |
) |
$ |
1,403 |
|
$ |
(409 |
) |
|
Management fees and overhead allocations, net of tax |
|
33 |
|
41 |
|
40 |
|
33 |
|
47 |
| |||||
|
Net income (loss) |
|
$ |
(346 |
) |
$ |
(455 |
) |
$ |
(531 |
) |
$ |
1,370 |
|
$ |
(456 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Total interest expense |
|
10 |
|
13 |
|
8 |
|
3 |
|
2 |
| |||||
|
Net interest income |
|
(10 |
) |
(13 |
) |
(8 |
) |
(3 |
) |
(2 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(10 |
) |
(13 |
) |
(8 |
) |
(3 |
) |
(2 |
) | |||||
|
Noninterest income |
|
2,013 |
|
2,134 |
|
2,261 |
|
2,610 |
|
2,154 |
| |||||
|
Noninterest expense |
|
2,128 |
|
2,459 |
|
2,384 |
|
2,187 |
|
2,191 |
| |||||
|
Income (loss) before income taxes |
|
(125 |
) |
(338 |
) |
(131 |
) |
420 |
|
(39 |
) | |||||
|
Provision (benefit) for income taxes |
|
(62 |
) |
(140 |
) |
(44 |
) |
(21 |
) |
(4 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(63 |
) |
$ |
(198 |
) |
$ |
(87 |
) |
$ |
441 |
|
$ |
(35 |
) |
|
Management fees and overhead allocations, net of tax |
|
150 |
|
161 |
|
165 |
|
156 |
|
164 |
| |||||
|
Net income (loss) |
|
$ |
(213 |
) |
$ |
(359 |
) |
$ |
(252 |
) |
$ |
285 |
|
$ |
(199 |
) |
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INSURANCE |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
2 |
|
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
1 |
| |||||
|
Net interest income |
|
2 |
|
1 |
|
— |
|
1 |
|
— |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
2 |
|
1 |
|
— |
|
1 |
|
— |
| |||||
|
Noninterest income |
|
2,412 |
|
2,517 |
|
2,410 |
|
2,194 |
|
2,089 |
| |||||
|
Noninterest expense |
|
2,444 |
|
2,318 |
|
2,328 |
|
2,300 |
|
2,181 |
| |||||
|
Income (loss) before income taxes |
|
(30 |
) |
200 |
|
82 |
|
(105 |
) |
(92 |
) | |||||
|
Provision (benefit) for income taxes |
|
(9 |
) |
81 |
|
36 |
|
(314 |
) |
(29 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(21 |
) |
$ |
119 |
|
$ |
46 |
|
$ |
209 |
|
$ |
(63 |
) |
|
Management fees and overhead allocations, net of tax |
|
86 |
|
107 |
|
103 |
|
80 |
|
115 |
| |||||
|
Net income (loss) |
|
$ |
(107 |
) |
$ |
12 |
|
$ |
(57 |
) |
$ |
129 |
|
$ |
(178 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CORPORATE SUPPORT AND OTHER |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
82 |
|
$ |
81 |
|
$ |
115 |
|
$ |
67 |
|
$ |
(187 |
) |
|
Total interest expense |
|
1,462 |
|
1,439 |
|
1,470 |
|
1,481 |
|
1,480 |
| |||||
|
Net interest income |
|
(1,380 |
) |
(1,358 |
) |
(1,355 |
) |
(1,414 |
) |
(1,667 |
) | |||||
|
Provision for loan losses |
|
(182 |
) |
21 |
|
(707 |
) |
(347 |
) |
2,068 |
| |||||
|
Net interest income (loss) after provision |
|
(1,198 |
) |
(1,379 |
) |
(648 |
) |
(1,067 |
) |
(3,735 |
) | |||||
|
Noninterest income |
|
64 |
|
(11 |
) |
36 |
|
40 |
|
(50 |
) | |||||
|
Noninterest expense |
|
10,348 |
|
10,826 |
|
9,415 |
|
10,350 |
|
10,587 |
| |||||
|
Income (loss) before income taxes |
|
(11,482 |
) |
(12,216 |
) |
(10,027 |
) |
(11,377 |
) |
(14,372 |
) | |||||
|
Provision (benefit) for income taxes |
|
(4,410 |
) |
(4,645 |
) |
(3,814 |
) |
(15,359 |
) |
(5,511 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(7,072 |
) |
$ |
(7,571 |
) |
$ |
(6,213 |
) |
$ |
3,982 |
|
$ |
(8,861 |
) |
|
Management fees and overhead allocations, net of tax |
|
(5,973 |
) |
(5,686 |
) |
(5,026 |
) |
(6,185 |
) |
(6,031 |
) | |||||
|
Net income (loss) |
|
$ |
(1,099 |
) |
$ |
(1,885 |
) |
$ |
(1,187 |
) |
$ |
10,167 |
|
$ |
(2,830 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,449 |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
$ |
27,612 |
|
|
Total interest expense |
|
3,202 |
|
3,218 |
|
3,291 |
|
3,432 |
|
3,638 |
| |||||
|
Net interest income |
|
23,247 |
|
23,624 |
|
23,303 |
|
23,852 |
|
23,974 |
| |||||
|
Provision for loan losses |
|
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
25,753 |
|
25,444 |
|
23,373 |
|
23,472 |
|
23,974 |
| |||||
|
Noninterest income |
|
7,237 |
|
7,753 |
|
8,211 |
|
13,083 |
|
6,051 |
| |||||
|
Noninterest expense |
|
23,014 |
|
23,850 |
|
24,646 |
|
26,613 |
|
23,230 |
| |||||
|
Income (loss) before income taxes |
|
9,976 |
|
9,347 |
|
6,938 |
|
9,942 |
|
6,795 |
| |||||
|
Provision (benefit) for income taxes |
|
3,627 |
|
3,197 |
|
2,398 |
|
(12,012 |
) |
2,352 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
|
Management fees and overhead allocations, net of tax |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net income |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
| |||||
|
Interest income |
|
$ |
26,449 |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
$ |
27,612 |
|
|
Interest expense |
|
3,202 |
|
3,218 |
|
3,291 |
|
3,432 |
|
3,638 |
| |||||
|
Net interest income before provision |
|
23,247 |
|
23,624 |
|
23,303 |
|
23,852 |
|
23,974 |
| |||||
|
Provision for loan losses |
|
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
|
— |
| |||||
|
Net interest income after provision |
|
25,753 |
|
25,444 |
|
23,373 |
|
23,472 |
|
23,974 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,218 |
|
$ |
1,223 |
|
$ |
1,245 |
|
$ |
1,223 |
|
$ |
1,274 |
|
|
Investment advisory and trust income |
|
1,450 |
|
1,253 |
|
1,231 |
|
1,298 |
|
1,291 |
| |||||
|
Insurance income |
|
2,971 |
|
3,400 |
|
3,439 |
|
3,501 |
|
2,952 |
| |||||
|
Investment banking income |
|
253 |
|
148 |
|
74 |
|
5,431 |
|
205 |
| |||||
|
Other income |
|
1,345 |
|
1,729 |
|
2,222 |
|
1,630 |
|
329 |
| |||||
|
Total noninterest income |
|
7,237 |
|
7,753 |
|
8,211 |
|
13,083 |
|
6,051 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,791 |
|
$ |
14,746 |
|
$ |
15,573 |
|
$ |
17,826 |
|
$ |
14,212 |
|
|
Stock-based compensation expense |
|
505 |
|
516 |
|
489 |
|
357 |
|
372 |
| |||||
|
Occupancy expenses, premises and equipment |
|
3,398 |
|
3,426 |
|
3,533 |
|
3,576 |
|
3,358 |
| |||||
|
Amortization of intangibles |
|
292 |
|
159 |
|
160 |
|
159 |
|
160 |
| |||||
|
Other operating expenses |
|
3,963 |
|
4,474 |
|
4,438 |
|
3,940 |
|
4,272 |
| |||||
|
Net loss on securities, other assets and OREO |
|
65 |
|
529 |
|
453 |
|
755 |
|
856 |
| |||||
|
Total noninterest expense |
|
23,014 |
|
23,850 |
|
24,646 |
|
26,613 |
|
23,230 |
| |||||
|
Net income before income taxes |
|
9,976 |
|
9,347 |
|
6,938 |
|
9,942 |
|
6,795 |
| |||||
|
Provision (benefit) for income taxes |
|
3,627 |
|
3,197 |
|
2,398 |
|
(12,012 |
) |
2,352 |
| |||||
|
Net income |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Preferred stock dividends |
|
(717 |
) |
(717 |
) |
(717 |
) |
(717 |
) |
(2,535 |
) | |||||
|
Net income available to common shareholders |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
$ |
1,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
|
Diluted |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.00 |
% |
4.19 |
% |
4.23 |
% |
4.27 |
% |
4.32 |
% | |||||
|
Efficiency ratio |
|
75.28 |
% |
74.32 |
% |
76.77 |
% |
70.01 |
% |
74.52 |
% | |||||
|
Return on average assets |
|
1.00 |
% |
1.00 |
% |
0.75 |
% |
3.61 |
% |
0.74 |
% | |||||
|
Return on average shareholders’ equity |
|
10.23 |
% |
10.22 |
% |
8.12 |
% |
42.89 |
% |
8.50 |
% | |||||
|
Noninterest income as a percentage of operating revenues |
|
23.74 |
% |
24.71 |
% |
26.06 |
% |
35.42 |
% |
20.15 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares outstanding at period end (in thousands) |
|
39,729 |
|
39,708 |
|
39,697 |
|
37,090 |
|
37,067 |
| |||||
|
Book value per common share |
|
$ |
4.88 |
|
$ |
4.69 |
|
$ |
4.59 |
|
$ |
4.39 |
|
$ |
3.83 |
|
|
Tangible book value per common share * |
|
$ |
4.80 |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
$ |
3.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tangible common equity to tangible assets * |
|
7.45 |
% |
7.23 |
% |
7.29 |
% |
6.58 |
% |
5.74 |
% | |||||
|
Tangible equity to tangible assets * |
|
9.69 |
% |
9.50 |
% |
9.63 |
% |
8.95 |
% |
8.12 |
% | |||||
|
Tier 1 capital ratio |
|
|
** |
15.01 |
% |
14.93 |
% |
13.98 |
% |
13.21 |
% | |||||
|
Total risk based capital ratio |
|
|
** |
17.32 |
% |
17.28 |
% |
16.33 |
% |
15.68 |
% | |||||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
At |
| |||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
| |||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
2,559,954 |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
|
Loans |
|
1,811,407 |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
|
1,659,799 |
| |||||
|
Intangible assets |
|
3,148 |
|
3,439 |
|
3,239 |
|
3,399 |
|
3,558 |
| |||||
|
Deposits |
|
2,048,775 |
|
1,946,989 |
|
1,903,964 |
|
1,918,406 |
|
1,880,517 |
| |||||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Common shareholders’ equity |
|
193,692 |
|
186,097 |
|
182,291 |
|
162,744 |
|
141,982 |
| |||||
|
Total shareholders’ equity |
|
251,030 |
|
243,435 |
|
239,629 |
|
220,082 |
|
199,341 |
| |||||
|
Interest-earning assets |
|
2,382,653 |
|
2,355,707 |
|
2,284,829 |
|
2,239,700 |
|
2,241,026 |
| |||||
|
Interest-bearing liabilities |
|
1,443,399 |
|
1,480,256 |
|
1,460,302 |
|
1,438,691 |
|
1,472,311 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial |
|
$ |
663,880 |
|
$ |
628,327 |
|
$ |
594,812 |
|
$ |
568,962 |
|
$ |
587,345 |
|
|
Real estate - mortgage |
|
850,824 |
|
832,641 |
|
805,694 |
|
784,491 |
|
782,771 |
| |||||
|
Land acquisition & development |
|
54,220 |
|
56,455 |
|
58,218 |
|
61,977 |
|
67,944 |
| |||||
|
Real estate - construction |
|
56,180 |
|
65,761 |
|
57,422 |
|
63,141 |
|
68,442 |
| |||||
|
Consumer |
|
137,299 |
|
132,510 |
|
116,833 |
|
116,676 |
|
112,709 |
| |||||
|
Other |
|
49,004 |
|
50,994 |
|
45,468 |
|
42,177 |
|
40,588 |
| |||||
|
Gross loans |
|
1,811,407 |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
|
1,659,799 |
| |||||
|
Less allowance for loan losses |
|
(46,437 |
) |
(51,101 |
) |
(52,778 |
) |
(55,629 |
) |
(59,695 |
) | |||||
|
Total net loans |
|
$ |
1,764,970 |
|
$ |
1,715,587 |
|
$ |
1,625,669 |
|
$ |
1,581,795 |
|
$ |
1,600,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
813,202 |
|
$ |
767,102 |
|
$ |
768,620 |
|
$ |
773,826 |
|
$ |
718,689 |
|
|
Interest-bearing demand |
|
117,915 |
|
115,684 |
|
115,377 |
|
10,385 |
|
— |
| |||||
|
Savings |
|
10,659 |
|
10,278 |
|
10,978 |
|
10,631 |
|
10,251 |
| |||||
|
Eurodollar |
|
— |
|
— |
|
— |
|
97,748 |
|
104,971 |
| |||||
|
Certificates of deposits under $100,000 |
|
30,574 |
|
31,399 |
|
32,231 |
|
34,575 |
|
36,126 |
| |||||
|
Certificates of deposits $100,000 and over |
|
162,595 |
|
166,938 |
|
165,798 |
|
180,790 |
|
208,965 |
| |||||
|
Reciprocal CDARS |
|
90,468 |
|
94,336 |
|
87,978 |
|
89,638 |
|
93,909 |
| |||||
|
Total interest-bearing deposits |
|
1,225,413 |
|
1,185,737 |
|
1,180,982 |
|
1,197,593 |
|
1,172,911 |
| |||||
|
Noninterest-bearing demand deposits |
|
823,363 |
|
761,252 |
|
722,982 |
|
720,813 |
|
707,606 |
| |||||
|
Customer repurchase agreements |
|
124,836 |
|
127,144 |
|
118,499 |
|
127,948 |
|
131,877 |
| |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,173,612 |
|
$ |
2,074,133 |
|
$ |
2,022,463 |
|
$ |
2,046,354 |
|
$ |
2,012,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
2,529,999 |
|
$ |
2,476,936 |
|
$ |
2,424,709 |
|
$ |
2,413,877 |
|
$ |
2,385,937 |
|
|
Average loans |
|
1,780,352 |
|
1,712,917 |
|
1,647,846 |
|
1,654,437 |
|
1,656,737 |
| |||||
|
Average deposits |
|
1,979,267 |
|
1,893,456 |
|
1,886,707 |
|
1,904,601 |
|
1,880,859 |
| |||||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Average shareholders’ equity |
|
246,783 |
|
242,098 |
|
224,899 |
|
203,064 |
|
207,462 |
| |||||
|
Average interest-earning assets |
|
2,365,965 |
|
2,310,064 |
|
2,248,628 |
|
2,246,836 |
|
2,230,789 |
| |||||
|
Average interest-bearing liabilities |
|
1,468,194 |
|
1,481,794 |
|
1,444,649 |
|
1,462,576 |
|
1,447,242 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for loan losses |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
59,695 |
|
$ |
61,920 |
|
|
Provision for loan losses |
|
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
|
— |
| |||||
|
Net recovery (charge-off) |
|
(2,158 |
) |
143 |
|
(2,781 |
) |
(4,446 |
) |
(2,225 |
) | |||||
|
Ending allowance for loan losses |
|
$ |
46,437 |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
59,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
$ |
61 |
|
|
Provision for credit losses |
|
— |
|
— |
|
— |
|
(26 |
) |
— |
| |||||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total provision for loan and credit losses |
|
$ |
(2,506 |
) |
$ |
(1,820 |
) |
$ |
(70 |
) |
$ |
354 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming Loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonaccrual loans |
|
$ |
19,471 |
|
$ |
24,950 |
|
$ |
27,941 |
|
$ |
27,024 |
|
$ |
41,365 |
|
|
Loans 90 days or more past due and accruing interest |
|
1,183 |
|
— |
|
— |
|
212 |
|
— |
| |||||
|
Total nonperforming loans |
|
20,654 |
|
24,950 |
|
27,941 |
|
27,236 |
|
41,365 |
| |||||
|
OREO and repossessed assets |
|
13,619 |
|
13,651 |
|
17,224 |
|
18,502 |
|
20,986 |
| |||||
|
Total nonperforming assets |
|
$ |
34,273 |
|
$ |
38,601 |
|
$ |
45,165 |
|
$ |
45,738 |
|
$ |
62,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Performing renegotiated loans |
|
$ |
34,637 |
|
$ |
36,010 |
|
$ |
27,184 |
|
$ |
20,633 |
|
$ |
659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to total assets |
|
1.34 |
% |
1.53 |
% |
1.84 |
% |
1.89 |
% |
2.58 |
% | |||||
|
Nonperforming loans to total loans |
|
1.14 |
% |
1.41 |
% |
1.66 |
% |
1.66 |
% |
2.49 |
% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.88 |
% |
2.17 |
% |
2.66 |
% |
2.76 |
% |
3.71 |
% | |||||
|
Allowance for loan and credit losses to total loans |
|
2.57 |
% |
2.89 |
% |
3.15 |
% |
3.40 |
% |
3.60 |
% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
|
225.00 |
% |
204.95 |
% |
189.02 |
% |
204.38 |
% |
144.46 |
% | |||||
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
For the three months ended, |
| ||||||||||||||||||||||
|
|
|
September 30, 2012 |
|
June 30, 2012 |
|
September 30, 2011 |
| ||||||||||||||||||
|
|
|
|
|
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 |
|
$ |
28,933 |
|
$ |
26 |
|
0.35 |
% |
$ |
21,379 |
|
$ |
24 |
|
0.44 |
% |
$ |
26,980 |
|
$ |
27 |
|
0.39 |
% |
|
Investment securities |
|
607,696 |
|
4,535 |
|
2.99 |
% |
629,087 |
|
5,331 |
|
3.39 |
% |
610,128 |
|
5,413 |
|
3.55 |
% | ||||||
|
Loans |
|
1,780,352 |
|
22,411 |
|
4.93 |
% |
1,712,917 |
|
21,937 |
|
5.07 |
% |
1,656,737 |
|
22,516 |
|
5.32 |
% | ||||||
|
Allowance for loan losses |
|
(51,016 |
) |
|
|
|
|
(53,319 |
) |
|
|
|
|
(63,056 |
) |
|
|
|
| ||||||
|
Total interest-earning assets |
|
$ |
2,365,965 |
|
$ |
26,972 |
|
4.37 |
% |
$ |
2,310,064 |
|
$ |
27,292 |
|
4.57 |
% |
$ |
2,230,789 |
|
$ |
27,956 |
|
4.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest-earning assets |
|
164,034 |
|
|
|
|
|
166,872 |
|
|
|
|
|
155,148 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
2,529,999 |
|
|
|
|
|
$ |
2,476,936 |
|
|
|
|
|
$ |
2,385,937 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NOW and money market |
|
$ |
782,546 |
|
$ |
924 |
|
0.47 |
% |
$ |
764,077 |
|
$ |
938 |
|
0.49 |
% |
$ |
726,054 |
|
$ |
1,072 |
|
0.59 |
% |
|
Interest-bearing demand |
|
121,979 |
|
164 |
|
0.53 |
% |
110,928 |
|
137 |
|
0.50 |
% |
— |
|
— |
|
0.00 |
% | ||||||
|
Savings |
|
10,601 |
|
3 |
|
0.11 |
% |
10,386 |
|
3 |
|
0.12 |
% |
10,473 |
|
4 |
|
0.15 |
% | ||||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% |
97,005 |
|
180 |
|
0.73 |
% | ||||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reciprocal |
|
91,515 |
|
114 |
|
0.49 |
% |
94,652 |
|
115 |
|
0.49 |
% |
93,158 |
|
130 |
|
0.55 |
% | ||||||
|
Under $100,000 |
|
30,838 |
|
46 |
|
0.59 |
% |
31,758 |
|
50 |
|
0.63 |
% |
36,585 |
|
79 |
|
0.86 |
% | ||||||
|
$100,000 and over |
|
165,152 |
|
296 |
|
0.71 |
% |
165,506 |
|
308 |
|
0.75 |
% |
216,096 |
|
431 |
|
0.79 |
% | ||||||
|
Total interest-bearing deposits |
|
$ |
1,202,631 |
|
$ |
1,547 |
|
0.51 |
% |
$ |
1,177,307 |
|
$ |
1,551 |
|
0.53 |
% |
$ |
1,179,371 |
|
$ |
1,896 |
|
0.64 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Securities sold under agreements to repurchase |
|
151,222 |
|
120 |
|
0.31 |
% |
125,525 |
|
97 |
|
0.31 |
% |
160,807 |
|
216 |
|
0.53 |
% | ||||||
|
Other short-term borrowings |
|
21,191 |
|
17 |
|
0.31 |
% |
85,812 |
|
68 |
|
0.31 |
% |
13,914 |
|
9 |
|
0.25 |
% | ||||||
|
Long-term debt |
|
93,150 |
|
1,518 |
|
6.38 |
% |
93,150 |
|
1,502 |
|
6.38 |
% |
93,150 |
|
1,517 |
|
6.37 |
% | ||||||
|
Total interest-bearing liabilities |
|
$ |
1,468,194 |
|
$ |
3,202 |
|
0.86 |
% |
$ |
1,481,794 |
|
$ |
3,218 |
|
0.87 |
% |
$ |
1,447,242 |
|
$ |
3,638 |
|
0.99 |
% |
|
Noninterest-bearing demand accounts |
|
776,636 |
|
|
|
|
|
716,149 |
|
|
|
|
|
701,488 |
|
|
|
|
| ||||||
|
Total deposits and interest-bearing liabilities |
|
2,244,830 |
|
|
|
|
|
2,197,943 |
|
|
|
|
|
2,148,730 |
|
|
|
|
| ||||||
|
Other noninterest-bearing liabilities |
|
38,386 |
|
|
|
|
|
36,895 |
|
|
|
|
|
29,745 |
|
|
|
|
| ||||||
|
Total liabilities |
|
2,283,216 |
|
|
|
|
|
2,234,838 |
|
|
|
|
|
2,178,475 |
|
|
|
|
| ||||||
|
Total equity |
|
246,783 |
|
|
|
|
|
242,098 |
|
|
|
|
|
207,462 |
|
|
|
|
| ||||||
|
Total liabilities and equity |
|
$ |
2,529,999 |
|
|
|
|
|
$ |
2,476,936 |
|
|
|
|
|
$ |
2,385,937 |
|
|
|
|
| |||
|
Net interest income - taxable equivalent |
|
|
|
$ |
23,770 |
|
|
|
|
|
$ |
24,074 |
|
|
|
|
|
$ |
24,318 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
3.51 |
% |
|
|
|
|
3.70 |
% |
|
|
|
|
3.78 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
4.00 |
% |
|
|
|
|
4.19 |
% |
|
|
|
|
4.32 |
% | ||||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
161.15 |
% |
|
|
|
|
155.90 |
% |
|
|
|
|
154.14 |
% |
|
|
|
| ||||||
CoBiz Financial Inc.
September 30, 2012
(unaudited)
|
|
|
For the nine months ended September 30, |
| ||||||||||||||
|
|
|
2012 |
|
2011 |
| ||||||||||||
|
|
|
|
|
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 |
|
$ |
23,872 |
|
$ |
76 |
|
0.42 |
% |
$ |
34,350 |
|
$ |
102 |
|
0.39 |
% |
|
Investment securities |
|
623,865 |
|
15,265 |
|
3.26 |
% |
620,093 |
|
17,268 |
|
3.71 |
% | ||||
|
Loans |
|
1,713,940 |
|
65,884 |
|
5.05 |
% |
1,650,171 |
|
67,469 |
|
5.39 |
% | ||||
|
Allowance for loan losses |
|
(53,256 |
) |
|
|
|
|
(63,717 |
) |
|
|
|
| ||||
|
Total interest earning-assets |
|
$ |
2,308,421 |
|
$ |
81,225 |
|
4.52 |
% |
$ |
2,240,897 |
|
$ |
84,839 |
|
4.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Noninterest-earning assets |
|
168,958 |
|
|
|
|
|
159,721 |
|
|
|
|
| ||||
|
Total assets |
|
$ |
2,477,379 |
|
|
|
|
|
$ |
2,400,618 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NOW and money market |
|
$ |
771,182 |
|
$ |
2,850 |
|
0.49 |
% |
$ |
708,065 |
|
$ |
3,359 |
|
0.63 |
% |
|
Interest-bearing demand |
|
112,068 |
|
457 |
|
0.54 |
% |
— |
|
— |
|
0.00 |
% | ||||
|
Savings |
|
10,623 |
|
9 |
|
0.11 |
% |
9,906 |
|
14 |
|
0.19 |
% | ||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
95,964 |
|
536 |
|
0.74 |
% | ||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Brokered under $100,000 |
|
— |
|
— |
|
0.00 |
% |
7 |
|
— |
|
1.37 |
% | ||||
|
Reciprocal |
|
91,884 |
|
342 |
|
0.50 |
% |
113,202 |
|
537 |
|
0.63 |
% | ||||
|
Under $100,000 |
|
31,980 |
|
155 |
|
0.65 |
% |
38,873 |
|
279 |
|
0.96 |
% | ||||
|
$100,000 and over |
|
166,020 |
|
931 |
|
0.75 |
% |
225,938 |
|
1,555 |
|
0.92 |
% | ||||
|
Total interest-bearing deposits |
|
$ |
1,183,757 |
|
$ |
4,744 |
|
0.54 |
% |
$ |
1,191,955 |
|
$ |
6,280 |
|
0.70 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Securities sold under agreements to repurchase |
|
135,985 |
|
324 |
|
0.31 |
% |
159,494 |
|
632 |
|
0.52 |
% | ||||
|
Other short-term borrowings |
|
52,068 |
|
121 |
|
0.31 |
% |
9,351 |
|
18 |
|
0.25 |
% | ||||
|
Long-term debt |
|
93,150 |
|
4,522 |
|
6.38 |
% |
93,150 |
|
4,501 |
|
6.37 |
% | ||||
|
Total interest-bearing liabilities |
|
$ |
1,464,960 |
|
$ |
9,711 |
|
0.88 |
% |
$ |
1,453,950 |
|
$ |
11,431 |
|
1.04 |
% |
|
Noninterest-bearing demand accounts |
|
736,226 |
|
|
|
|
|
713,306 |
|
|
|
|
| ||||
|
Total deposits and interest-bearing liabilities |
|
2,201,186 |
|
|
|
|
|
2,167,256 |
|
|
|
|
| ||||
|
Other noninterest-bearing liabilities |
|
38,236 |
|
|
|
|
|
26,114 |
|
|
|
|
| ||||
|
Total liabilities |
|
2,239,422 |
|
|
|
|
|
2,193,370 |
|
|
|
|
| ||||
|
Total equity |
|
237,957 |
|
|
|
|
|
207,248 |
|
|
|
|
| ||||
|
Total liabilities and equity |
|
$ |
2,477,379 |
|
|
|
|
|
$ |
2,400,618 |
|
|
|
|
| ||
|
Net interest income - taxable equivalent |
|
|
|
$ |
71,514 |
|
|
|
|
|
$ |
73,408 |
|
|
| ||
|
Net interest spread |
|
|
|
|
|
3.64 |
% |
|
|
|
|
3.81 |
% | ||||
|
Net interest margin |
|
|
|
|
|
4.14 |
% |
|
|
|
|
4.38 |
% | ||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
157.58 |
% |
|
|
|
|
154.12 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
September 30, 2012
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(in thousands, except per share amounts)
The Company believes these Non-GAAP measures are useful to obtain an understanding of the operating results of the Company’s core business and reflect the basis on which management internally reviews financial performance and capital adequacy. These Non-GAAP measures 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 measures related to tangible equity, tangible common equity, and tangible assets. These items have been adjusted to exclude intangible assets and preferred stock. The table also includes Non-GAAP financial measures related to net income and earnings per share as adjusted for items the Company does not believe are representative of its core earnings.
|
|
|
|
|
At |
| |||||||||||||
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
|
|
|
|
2012 |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Shareholders’ equity as reported - GAAP |
|
$ |
251,030 |
|
$ |
243,435 |
|
$ |
239,629 |
|
$ |
220,082 |
|
$ |
199,341 |
|
|
|
|
Intangible assets |
|
(3,148 |
) |
(3,439 |
) |
(3,239 |
) |
(3,399 |
) |
(3,558 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A |
|
Tangible equity - Non-GAAP |
|
247,882 |
|
239,996 |
|
236,390 |
|
216,683 |
|
195,783 |
| |||||
|
|
|
Preferred stock |
|
(57,338 |
) |
(57,338 |
) |
(57,338 |
) |
(57,338 |
) |
(57,359 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B |
|
Tangible common equity - Non-GAAP |
|
$ |
190,544 |
|
$ |
182,658 |
|
$ |
179,052 |
|
$ |
159,345 |
|
$ |
138,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Total assets as reported - GAAP |
|
$ |
2,559,954 |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
|
|
|
Intangible assets |
|
(3,148 |
) |
(3,439 |
) |
(3,239 |
) |
(3,399 |
) |
(3,558 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
C |
|
Total tangible assets - Non-GAAP |
|
$ |
2,556,806 |
|
$ |
2,526,694 |
|
$ |
2,455,050 |
|
$ |
2,420,105 |
|
$ |
2,412,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
D |
|
Common shares outstanding |
|
39,729 |
|
39,708 |
|
39,697 |
|
37,090 |
|
37,067 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / C |
|
Tangible common equity to tangible assets - Non-GAAP |
|
7.45 |
% |
7.23 |
% |
7.29 |
% |
6.58 |
% |
5.74 |
% | |||||
|
A / C |
|
Tangible equity to tangible assets - Non-GAAP |
|
9.69 |
% |
9.50 |
% |
9.63 |
% |
8.95 |
% |
8.12 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / D |
|
Tangible book value per common share - Non-GAAP |
|
$ |
4.80 |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
$ |
3.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Net income available to common shareholders as reported - GAAP |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
$ |
1,908 |
|
|
|
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
E |
|
Deferred tax valuation allowance |
|
— |
|
— |
|
— |
|
(15,596 |
) |
— |
| |||||
|
F |
|
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 |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
5,641 |
|
$ |
3,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Earnings per common share - GAAP |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
|
E / D |
|
Effect of deferred tax valuation allowance |
|
— |
|
— |
|
— |
|
(0.42 |
) |
— |
| |||||
|
F / D |
|
Effect of discount accretion and issuance cost exclusion |
|
— |
|
— |
|
— |
|
— |
|
0.05 |
| |||||
|
|
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.15 |
|
$ |
0.10 |
|