Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | a13-3535_18k.htm |
Exhibit 99.1
CoBiz Financial Announces Fourth Quarter 2012 Results
Income increases 22%; Strong loan growth
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.7 billion in assets, announced net income available to common shareholders of $6.9 million for the fourth quarter of 2012, or $0.17 per diluted common share. Excluding the recapture of a deferred tax asset (DTA) valuation allowance, net income available to common shareholders (“Adjusted Income”1) for the fourth quarter of 2011 was $5.6 million, or $0.15 per diluted common share(1).
For the year ended December 31, 2012, the Company reported net income available to common shareholders of $21.8 million, or $0.55 per diluted common share.
During the fourth quarter of 2011, the Company fully reversed a $15.6 million DTA valuation allowance originally recorded in the fourth quarter of 2010. The reversal impacted reported diluted earnings per common share for the fourth quarter and full year of 2011 by $0.42. Excluding the DTA valuation allowance, diluted earnings per common share for the fourth quarter and full year of 2011 were $0.15 and $0.34, respectively. (1)
Financial Highlights — Fourth Quarter 2012
· Income available to common shareholders was $6.9 million for the fourth quarter of 2012, a 22% increase in income available to common shareholders from both the third quarter of 2012 and the Adjusted Income for the fourth quarter of 2011. (1)
· Outstanding loans increased 6.4% (25.3% annualized) during the quarter, or $115.0 million compared to the prior linked-quarter end.
· The Company achieved the lowest dividend rate available for preferred stock issued under the Small Business Lending Fund (SBLF) program.
· The Company reported seasonally stronger fee income.
Discontinued Operations
· During the fourth quarter, the Company exited two business lines: Trust and Wealth Transfer, both within the Wealth Management segment.
· The results of operation from these components are not significant. However, by discontinuing these activities, the operating efficiency of the segment is expected to improve.
· The results of operations of these components are reflected in discontinued operations, below income from continuing operations for all periods presented. Accordingly, noninterest income and expense presented below does not include the activities of Trust or Wealth Transfer.
(1) Please see accompanying Reconciliation of Non-GAAP Measures to GAAP
Financial Summary
|
|
|
Quarter ended |
|
4Q12 change vs. |
| |||||||||||||||
|
(in thousands, except per share amounts) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
|
3Q12 |
|
4Q11 |
| |||||||||
|
Net interest income before provision |
|
$ |
23,204 |
|
$ |
23,247 |
|
$ |
23,852 |
|
$ |
(43 |
) |
(0.2 |
)% |
$ |
(648 |
) |
(2.7 |
)% |
|
Provision for loan losses |
|
(337 |
) |
(2,506 |
) |
380 |
|
2,169 |
|
(86.6 |
)% |
(717 |
) |
(188.7 |
)% | |||||
|
Net interest income after provision |
|
23,541 |
|
25,753 |
|
23,472 |
|
(2,212 |
) |
(8.6 |
)% |
69 |
|
0.3 |
% | |||||
|
Total noninterest income |
|
10,672 |
|
6,400 |
|
11,495 |
|
4,272 |
|
66.8 |
% |
(823 |
) |
(7.2 |
)% | |||||
|
Total noninterest expense |
|
23,208 |
|
21,958 |
|
25,626 |
|
1,250 |
|
5.7 |
% |
(2,418 |
) |
(9.4 |
)% | |||||
|
Net income before income taxes |
|
11,005 |
|
10,195 |
|
9,341 |
|
810 |
|
7.9 |
% |
1,664 |
|
17.8 |
% | |||||
|
Provision for income taxes |
|
3,927 |
|
3,721 |
|
(12,246 |
) |
206 |
|
5.5 |
% |
16,173 |
|
(132.1 |
)% | |||||
|
Income from continuing operations |
|
7,078 |
|
6,474 |
|
21,587 |
|
604 |
|
9.3 |
% |
(14,509 |
) |
(67.2 |
)% | |||||
|
Discontinued operations, net of tax |
|
453 |
|
(125 |
) |
367 |
|
578 |
|
(462.4 |
)% |
86 |
|
23.4 |
% | |||||
|
Net income |
|
7,531 |
|
6,349 |
|
21,954 |
|
1,182 |
|
18.6 |
% |
(14,423 |
) |
-65.7 |
% | |||||
|
Preferred stock dividends |
|
(664 |
) |
(717 |
) |
(717 |
) |
53 |
|
-7.4 |
% |
53 |
|
-7.4 |
% | |||||
|
Net income available to common shareholders |
|
$ |
6,867 |
|
$ |
5,632 |
|
$ |
21,237 |
|
$ |
1,235 |
|
21.9 |
% |
$ |
(14,370 |
) |
(67.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted earnings per common share |
|
$ |
0.17 |
|
$ |
0.14 |
|
$ |
0.57 |
|
$ |
0.03 |
|
21.4 |
% |
$ |
(0.40 |
) |
-70.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
KEY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
3.89 |
% |
4.00 |
% |
4.27 |
% |
|
|
|
|
|
|
|
| |||||
|
Efficiency ratio |
|
70.30 |
% |
75.28 |
% |
70.01 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average assets |
|
1.15 |
% |
1.00 |
% |
3.61 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average shareholders’ equity |
|
11.77 |
% |
10.23 |
% |
42.89 |
% |
|
|
|
|
|
|
|
| |||||
|
Noninterest income as a percentage of operating revenues |
|
31.50 |
% |
21.59 |
% |
32.52 |
% |
|
|
|
|
|
|
|
| |||||
“I am very pleased with our fourth quarter results with our pre-tax earnings increasing nearly 18% over a good fourth quarter of 2011,” said chairman and CEO Steve Bangert. “I believe we are executing well across the franchise.
“During the quarter, we grew the loan portfolio by more than 25% annualized, a recent record for us. As much of that growth came late in the quarter, we will not feel the full impact until the first quarter of 2013. As expected, we also recognized seasonally stronger fee income in the fourth quarter. Overall, we ended the year on a very strong note, and I feel good about how we are positioned as we enter the new year.”
Loans
· Loans at December 31, 2012, were $1.9 billion, an increase of $115.0 million and $289.0 million from the linked- and prior-year quarter ends, respectively.
· The Commercial & Industrial (C&I) portfolio had the greatest growth during the period, and totaled $729.4 million, or 37.9% of total loans at December 31, 2012. Owner-occupied commercial real estate loans tied to the Company’s C&I portfolio were $434.4 million, or 22.5% of total loans. Overall, 60.4% of total loans at December 31, 2012 related to the Company’s C&I book.
|
|
|
|
|
|
|
|
|
4Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
|
3Q12 |
|
4Q11 |
| |||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial & industrial |
|
$ |
729,442 |
|
$ |
663,880 |
|
$ |
568,962 |
|
$ |
65,562 |
|
9.9 |
% |
$ |
160,480 |
|
28.2 |
% |
|
Owner-occupied real estate |
|
434,384 |
|
425,217 |
|
421,350 |
|
9,167 |
|
2.2 |
% |
13,034 |
|
3.1 |
% | |||||
|
Investor real estate |
|
445,993 |
|
425,607 |
|
363,141 |
|
20,386 |
|
4.8 |
% |
82,852 |
|
22.8 |
% | |||||
|
Land acquisition & development |
|
53,562 |
|
54,220 |
|
61,977 |
|
(658 |
) |
(1.2 |
)% |
(8,415 |
) |
(13.6 |
)% | |||||
|
Real estate - construction |
|
67,022 |
|
56,180 |
|
63,141 |
|
10,842 |
|
19.3 |
% |
3,881 |
|
6.1 |
% | |||||
|
Consumer |
|
149,638 |
|
137,299 |
|
116,676 |
|
12,339 |
|
9.0 |
% |
32,962 |
|
28.3 |
% | |||||
|
Other |
|
46,391 |
|
49,004 |
|
42,177 |
|
(2,613 |
) |
(5.3 |
)% |
4,214 |
|
10.0 |
% | |||||
|
Total loans |
|
$ |
1,926,432 |
|
$ |
1,811,407 |
|
$ |
1,637,424 |
|
$ |
115,025 |
|
6.4 |
% |
$ |
289,008 |
|
17.7 |
% |
· New credit of $205.7 million was added during the fourth quarter and advances on existing lines totaled $82.3 million. New and advanced loans were offset by paydowns and maturities of $172.5 million during the fourth quarter.
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
2Q12 |
|
1Q12 |
|
4Q11 |
| |||||
|
Loans - beginning balance |
|
$ |
1,811,407 |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
|
New credit extended |
|
205,723 |
|
134,767 |
|
164,414 |
|
96,251 |
|
93,706 |
| |||||
|
Credit advanced |
|
82,306 |
|
54,642 |
|
77,683 |
|
72,540 |
|
59,709 |
| |||||
|
Paydowns & maturities |
|
(172,540 |
) |
(141,705 |
) |
(152,017 |
) |
(124,456 |
) |
(169,778 |
) | |||||
|
Gross loan charge-offs |
|
(464 |
) |
(2,985 |
) |
(1,839 |
) |
(3,312 |
) |
(6,012 |
) | |||||
|
Loans - ending balance |
|
$ |
1,926,432 |
|
$ |
1,811,407 |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net change - loans outstanding |
|
$ |
115,025 |
|
$ |
44,719 |
|
$ |
88,241 |
|
$ |
41,023 |
|
$ |
(22,375 |
) |
|
Net change, excluding charge-offs |
|
115,489 |
|
47,704 |
|
90,080 |
|
44,335 |
|
(16,363 |
) | |||||
· Gross credit commitments increased by $50.9 million, or 5.0%, on a linked-quarter basis and by $95.9 million, or 9.9%, from December 31, 2011.
· The aggregate amount drawn on credit lines was relatively flat from the prior linked-quarter end. As a result, line utilization decreased to 38.2% from 40.4% on a linked-quarter end basis. Line utilization was 39.7% at December 31, 2011.
Investment Securities
· The Company had investment securities available for sale with a carrying value of $558.2 million at December 31, 2012, a $34.0 million decrease from September 30, 2012.
· The unrealized gain on the investment portfolio decreased $2.0 million from September 30, 2012 to $16.8 million at December 31, 2012.
Deposits and Customer Repurchase Agreements (Repo)
· Deposit and Customer Repo balances at December 31, 2012 were $2.3 billion, an increase of $83.5 million and $210.8 million from the linked- and prior-year quarter ends, respectively.
· Noninterest-bearing demand accounts were 40.4% of total deposits at December 31, 2012.
|
|
|
|
|
|
|
|
|
4Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
|
3Q12 |
|
4Q11 |
| |||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
866,250 |
|
$ |
813,202 |
|
$ |
773,826 |
|
$ |
53,048 |
|
6.5 |
% |
$ |
92,424 |
|
11.9 |
% |
|
Interest-bearing demand |
|
118,433 |
|
117,915 |
|
10,385 |
|
518 |
|
0.4 |
% |
108,048 |
|
1,040.4 |
% | |||||
|
Savings |
|
24,813 |
|
10,659 |
|
10,631 |
|
14,154 |
|
132.8 |
% |
14,182 |
|
133.4 |
% | |||||
|
Eurodollar |
|
— |
|
— |
|
97,748 |
|
— |
|
0.0 |
% |
(97,748 |
) |
(100.0 |
)% | |||||
|
Certificates of deposits under $100,000 |
|
30,058 |
|
30,574 |
|
34,575 |
|
(516 |
) |
(1.7 |
)% |
(4,517 |
) |
(13.1 |
)% | |||||
|
Certificates of deposits $100,000 and over |
|
148,184 |
|
162,595 |
|
180,790 |
|
(14,411 |
) |
(8.9 |
)% |
(32,606 |
) |
(18.0 |
)% | |||||
|
Reciprocal CDARS |
|
82,127 |
|
90,468 |
|
89,638 |
|
(8,341 |
) |
(9.2 |
)% |
(7,511 |
) |
(8.4 |
)% | |||||
|
Total interest-bearing deposits |
|
1,269,865 |
|
1,225,413 |
|
1,197,593 |
|
44,452 |
|
3.6 |
% |
72,272 |
|
6.0 |
% | |||||
|
Noninterest-bearing demand deposits |
|
859,395 |
|
823,363 |
|
720,813 |
|
36,032 |
|
4.4 |
% |
138,582 |
|
19.2 |
% | |||||
|
Customer repurchase agreements |
|
127,887 |
|
124,836 |
|
127,948 |
|
3,051 |
|
2.4 |
% |
(61 |
) |
(0.0 |
)% | |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,257,147 |
|
$ |
2,173,612 |
|
$ |
2,046,354 |
|
$ |
83,535 |
|
3.8 |
% |
$ |
210,793 |
|
10.3 |
% |
Allowance for Loan and Credit Losses and Credit Quality
· Nonperforming assets (NPAs) were $30.3 million at December 31, 2012, a decrease of 33.8% from December 31, 2011. NPAs decreased by $4.0 million, or 11.6% on a linked-quarter basis.
· NPAs to total assets decreased to 1.14% at December 31, 2012, from 1.89% at December 31, 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 2.43% at December 31, 2012. However, the coverage of Allowance to nonperforming loans increased to 238% at December 31, 2012 from 225% at September 30, 2012.
· The Company recognized net recoveries of $0.8 million in the fourth quarter of 2012, compared to net charge-offs of $2.2 million in the third quarter of 2012. Net charge-offs were $4.4 million in the prior-year quarter.
· Due to the reduction in problem assets, a provision for loan loss reversal of $0.3 million was recorded during the fourth quarter of 2012.
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
| |||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
| |||
|
Beginning allowance for loan losses |
|
$ |
46,437 |
|
$ |
51,101 |
|
$ |
59,695 |
|
|
Provision for loan losses |
|
(337 |
) |
(2,506 |
) |
380 |
| |||
|
Net recovery (charge-off) |
|
766 |
|
(2,158 |
) |
(4,446 |
) | |||
|
Ending allowance for loan losses |
|
$ |
46,866 |
|
$ |
46,437 |
|
$ |
55,629 |
|
|
|
|
|
|
|
|
|
| |||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
Provision for credit losses |
|
(35 |
) |
— |
|
(26 |
) | |||
|
Ending allowance for credit losses |
|
$ |
— |
|
$ |
35 |
|
$ |
35 |
|
|
|
|
|
|
|
|
|
| |||
|
Total provision for loan and credit losses |
|
$ |
(372 |
) |
$ |
(2,506 |
) |
$ |
354 |
|
|
|
|
|
|
|
|
|
| |||
|
CREDIT QUALITY |
|
|
|
|
|
|
| |||
|
Nonaccrual loans |
|
$ |
19,677 |
|
$ |
19,471 |
|
$ |
27,024 |
|
|
Loans 90 days or more past due and accruing interest |
|
35 |
|
1,183 |
|
212 |
| |||
|
Total nonperforming loans |
|
19,712 |
|
20,654 |
|
27,236 |
| |||
|
OREO and repossessed assets |
|
10,577 |
|
13,619 |
|
18,502 |
| |||
|
Total nonperforming assets |
|
$ |
30,289 |
|
$ |
34,273 |
|
$ |
45,738 |
|
|
|
|
|
|
|
|
|
| |||
|
Performing renegotiated loans |
|
$ |
43,321 |
|
$ |
34,637 |
|
$ |
20,633 |
|
|
|
|
|
|
|
|
|
| |||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
| |||
|
Nonperforming assets to total assets |
|
1.14 |
% |
1.34 |
% |
1.89 |
% | |||
|
Nonperforming loans to total loans |
|
1.02 |
% |
1.14 |
% |
1.66 |
% | |||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.56 |
% |
1.88 |
% |
2.76 |
% | |||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
2.43 |
% |
2.57 |
% |
3.40 |
% | |||
|
Allowance for loan and credit losses to nonperforming loans |
|
237.75 |
% |
225.00 |
% |
204.38 |
% | |||
Shareholders’ Equity
· Total shareholders’ equity was $257.1 million at December 31, 2012, an increase of $6.0 million and $37.0 million from the linked- and prior-year quarter ends, respectively.
· The year-over-year equity increase is the result of positive earnings and an equity offering executed in first quarter of 2012 for net proceeds of $11.8 million.
· Tangible common equity increased to 7.4% of tangible assets at December 31, 2012 from 6.6% at December 31, 2011.
· The growth in qualified small business lending achieves the lowest dividend rate possible for the preferred stock issued under the SBLF of 1%; which will be effective as of the second quarter of 2012.(2) Assuming qualified lending balances do not decline, the Company expects the preferred dividends under the program to decrease by $1.9 million in 2013 versus 2012.
· On January 17, 2013, the Board of Directors of the Company announced an increase in the quarterly cash dividend, increasing it to $0.03 per common share. The dividend will be paid on February 4, 2013, to shareholders of record on January 28, 2013.
|
(in thousands, except per share amounts) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
| |||
|
EQUITY MEASURES |
|
|
|
|
|
|
| |||
|
Common shareholders’ equity |
|
$ |
199,713 |
|
$ |
193,692 |
|
$ |
162,744 |
|
|
Total shareholders’ equity |
|
257,051 |
|
251,030 |
|
220,082 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Common shares outstanding at period end |
|
39,790 |
|
39,729 |
|
37,090 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Book value per common share |
|
$ |
5.02 |
|
$ |
4.88 |
|
$ |
4.39 |
|
|
Tangible book value per common share * |
|
$ |
4.93 |
|
$ |
4.80 |
|
$ |
4.30 |
|
|
|
|
|
|
|
|
|
| |||
|
Tangible common equity to tangible assets * |
|
7.40 |
% |
7.45 |
% |
6.58 |
% | |||
|
Tangible equity to tangible assets * |
|
9.56 |
% |
9.69 |
% |
8.95 |
% | |||
|
Tier 1 capital ratio |
|
** |
|
15.08 |
% |
13.98 |
% | |||
|
Total-risk based capital ratio |
|
** |
|
17.35 |
% |
16.33 |
% | |||
* 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 fourth quarter of 2012 was relatively flat, on a tax-equivalent basis, from the prior linked-quarter at $23.8 million.
· Net interest margin (NIM) for the fourth quarter of 2012 contracted by 11 basis points on a linked-quarter basis to 3.89%, and 38 basis points from the prior-year quarter NIM.
· Average earning assets of $2.43 billion increased $64.2 million on a linked-quarter basis.
· The average net loan portfolio increased $55.3 million, while average federal funds sold and interest earning cash increased $30.1 million, and average investments decreased $21.2 million, in each case on a linked-quarter basis.
(2) Per the guidelines issued by the U.S. Treasury, the dividend rate on SBLF funds depends on growth in qualified small-business lending. Initially, it is adjusted quarterly for the first nine quarters based on outstanding loans at the end of two quarters prior, from 1% to as high as 5%. In the 10th quarter, the dividend rate is fixed between 1% and 9% based on lending growth at the end of the eighth quarter and will remain unchanged up to 4.5 years from the funding date. After 4.5 years, the rate is fixed at 9% regardless of the lending growth, if the funds are not repaid.
· The yield on average earning assets decreased 13 basis points to 4.24% from 4.37% on a linked-quarter basis.
· The rate paid on average interest-bearing liabilities decreased five basis points on a linked-quarter basis to 0.81%.
Noninterest Income
· As a percentage of total operating revenue, noninterest income increased to 31.5% for the fourth quarter of 2012, from 21.6% for the third quarter of 2012, but decreased compared to the 32.5% reported in the prior-year quarter.
· The linked-quarter increase in noninterest income for the fourth quarter of 2012 is primarily attributable to investment banking fee income, as well as fees earned from the sale of customer interest rate swaps reported in other income.
|
|
|
Quarter ended |
|
4Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
|
3Q12 |
|
4Q11 |
| |||||||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,220 |
|
$ |
1,218 |
|
$ |
1,221 |
|
$ |
2 |
|
0.2 |
% |
$ |
(1 |
) |
(0.1 |
)% |
|
Investment advisory and trust income |
|
1,109 |
|
1,176 |
|
1,022 |
|
(67 |
) |
(5.7 |
)% |
87 |
|
8.5 |
% | |||||
|
Insurance income |
|
2,341 |
|
2,412 |
|
2,194 |
|
(71 |
) |
(2.9 |
)% |
147 |
|
6.7 |
% | |||||
|
Investment banking income |
|
3,358 |
|
253 |
|
5,431 |
|
3,105 |
|
1,227.3 |
% |
(2,073 |
) |
(38.2 |
)% | |||||
|
Other income |
|
2,644 |
|
1,341 |
|
1,627 |
|
1,303 |
|
97.2 |
% |
1,017 |
|
62.5 |
% | |||||
|
Total noninterest income |
|
$ |
10,672 |
|
$ |
6,400 |
|
$ |
11,495 |
|
$ |
4,272 |
|
66.8 |
% |
$ |
(823 |
) |
(7.2 |
)% |
Operating Expenses
· The Company’s efficiency ratio for the fourth quarter of 2012 was 70.3%, compared to 75.3% for the third quarter of 2012 and 70.0% for the fourth quarter of 2011.
· The increase in compensation-related expenses over the linked-quarter is attributed to increased bonus accruals for the bank and investment banking segments.
· In the fourth quarter of 2012, the Company recorded net gains on OREO, other assets and investments of $0.7 million, compared to net losses of $0.1 million and $0.8 million in the third quarter of 2012 and fourth quarter of 2011, respectively.
|
|
|
Quarter ended |
|
4Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
4Q12 |
|
3Q12 |
|
4Q11 |
|
3Q12 |
|
4Q11 |
| |||||||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
15,526 |
|
$ |
14,004 |
|
$ |
16,815 |
|
$ |
1,522 |
|
10.9 |
% |
$ |
(1,289 |
) |
(7.7 |
)% |
|
Stock-based compensation expense |
|
450 |
|
499 |
|
346 |
|
(49 |
) |
(9.8 |
)% |
104 |
|
30.1 |
% | |||||
|
Occupancy expenses, premises and equipment |
|
3,393 |
|
3,307 |
|
3,479 |
|
86 |
|
2.6 |
% |
(86 |
) |
(2.5 |
)% | |||||
|
Amortization of intangibles |
|
193 |
|
265 |
|
133 |
|
(72 |
) |
(27.2 |
)% |
60 |
|
45.1 |
% | |||||
|
Other operating expenses |
|
4,331 |
|
3,818 |
|
4,098 |
|
513 |
|
13.4 |
% |
233 |
|
5.7 |
% | |||||
|
(Gain) loss on OREO, repossessed assets and other |
|
(242 |
) |
(102 |
) |
491 |
|
(140 |
) |
137.3 |
% |
(733 |
) |
(149.3 |
)% | |||||
|
(Gain) loss on investment securities |
|
(443 |
) |
167 |
|
264 |
|
(610 |
) |
(365.3 |
)% |
(707 |
) |
(267.8 |
)% | |||||
|
Total noninterest expense |
|
$ |
23,208 |
|
$ |
21,958 |
|
$ |
25,626 |
|
$ |
1,250 |
|
5.7 |
% |
$ |
(2,418 |
) |
(9.4 |
)% |
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, January 25, 2013, 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=91455 or by telephone at 877.493.9121, (conference ID # 85112302). 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 $2.7 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; property and casualty insurance brokerage and employee benefits through CoBiz Insurance; and investment banking services through Green Manning & Bunch.
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.
December 31, 2012
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
| ||||||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
26,243 |
|
$ |
27,284 |
|
$ |
106,128 |
|
$ |
111,264 |
|
|
Interest expense |
|
3,039 |
|
3,432 |
|
12,750 |
|
14,863 |
| ||||
|
NET INTEREST INCOME BEFORE PROVISION |
|
23,204 |
|
23,852 |
|
93,378 |
|
96,401 |
| ||||
|
Provision for loan losses |
|
(337 |
) |
380 |
|
(4,733 |
) |
4,002 |
| ||||
|
NET INTEREST INCOME AFTER PROVISION |
|
23,541 |
|
23,472 |
|
98,111 |
|
92,399 |
| ||||
|
Noninterest income |
|
10,672 |
|
11,495 |
|
30,559 |
|
30,823 |
| ||||
|
Noninterest expense |
|
23,208 |
|
25,626 |
|
91,166 |
|
95,821 |
| ||||
|
INCOME BEFORE INCOME TAXES |
|
11,005 |
|
9,341 |
|
37,504 |
|
27,401 |
| ||||
|
Provision (benefit) for income taxes |
|
3,927 |
|
(12,246 |
) |
13,258 |
|
(5,808 |
) | ||||
|
NET INCOME FROM CONTINUING OPERATIONS |
|
7,078 |
|
21,587 |
|
24,246 |
|
33,209 |
| ||||
|
Income from discontinued operations, net of tax |
|
453 |
|
367 |
|
324 |
|
253 |
| ||||
|
NET INCOME |
|
$ |
7,531 |
|
$ |
21,954 |
|
$ |
24,570 |
|
$ |
33,462 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Preferred stock dividends |
|
(664 |
) |
(717 |
) |
(2,815 |
) |
(5,147 |
) | ||||
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
6,867 |
|
$ |
21,237 |
|
$ |
21,755 |
|
$ |
28,315 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
$ |
0.17 |
|
$ |
0.57 |
|
$ |
0.55 |
|
$ |
0.76 |
|
|
DILUTED |
|
$ |
0.17 |
|
$ |
0.57 |
|
$ |
0.55 |
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
| ||||
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
39,790 |
|
37,090 |
| ||||
|
Book value per common share |
|
|
|
|
|
$ |
5.02 |
|
$ |
4.39 |
| ||
|
Tangible book value per common share * |
|
|
|
|
|
$ |
4.93 |
|
$ |
4.30 |
| ||
|
Tangible common equity to tangible assets * |
|
|
|
|
|
7.40 |
% |
6.58 |
% | ||||
|
Tangible equity to tangible assets * |
|
|
|
|
|
9.56 |
% |
8.95 |
% | ||||
* See accompanying Non-GAAP reconciliation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
| ||||
|
Total assets |
|
|
|
|
|
$ |
2,653,641 |
|
$ |
2,423,504 |
| ||
|
Loans |
|
|
|
|
|
1,926,432 |
|
1,637,424 |
| ||||
|
Intangible assets |
|
|
|
|
|
3,573 |
|
3,399 |
| ||||
|
Deposits |
|
|
|
|
|
2,129,260 |
|
1,918,406 |
| ||||
|
Subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||||
|
Common shareholders’ equity |
|
|
|
|
|
199,713 |
|
162,744 |
| ||||
|
Total shareholders’ equity |
|
|
|
|
|
257,051 |
|
220,082 |
| ||||
|
Interest-earning assets |
|
|
|
|
|
2,473,847 |
|
2,239,700 |
| ||||
|
Interest-bearing liabilities |
|
|
|
|
|
1,490,901 |
|
1,438,691 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
| ||||
|
Average assets |
|
|
|
|
|
$ |
2,508,222 |
|
$ |
2,403,960 |
| ||
|
Average loans |
|
|
|
|
|
1,743,473 |
|
1,651,247 |
| ||||
|
Average deposits |
|
|
|
|
|
1,955,758 |
|
1,905,095 |
| ||||
|
Average subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||||
|
Average shareholders’ equity |
|
|
|
|
|
242,104 |
|
206,193 |
| ||||
|
Average interest-earning assets |
|
|
|
|
|
2,337,889 |
|
2,242,395 |
| ||||
|
Average interest-bearing liabilities |
|
|
|
|
|
1,468,129 |
|
1,456,302 |
| ||||
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
| ||||||
|
(in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Net interest margin |
|
3.89 |
% |
4.27 |
% |
4.08 |
% |
4.35 |
% | ||
|
Efficiency ratio |
|
70.30 |
% |
70.01 |
% |
74.00 |
% |
73.01 |
% | ||
|
Return on average assets |
|
1.15 |
% |
3.61 |
% |
0.98 |
% |
1.39 |
% | ||
|
Return on average shareholders’ equity |
|
11.77 |
% |
42.89 |
% |
10.15 |
% |
16.23 |
% | ||
|
Noninterest income as a percentage of operating revenues |
|
31.50 |
% |
32.52 |
% |
24.66 |
% |
24.23 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming loans |
|
|
|
|
|
|
|
|
| ||
|
Nonaccrual loans |
|
|
|
|
|
$ |
19,677 |
|
$ |
27,024 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
|
|
|
35 |
|
212 |
| ||
|
Total nonperforming loans |
|
|
|
|
|
19,712 |
|
27,236 |
| ||
|
OREO & repossessed assets |
|
|
|
|
|
10,577 |
|
18,502 |
| ||
|
Total nonperforming assets |
|
|
|
|
|
$ |
30,289 |
|
$ |
45,738 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Performing renegotiated loans |
|
|
|
|
|
$ |
43,321 |
|
$ |
20,633 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Charge-offs |
|
|
|
|
|
$ |
(8,600 |
) |
$ |
(18,746 |
) |
|
Recoveries |
|
|
|
|
|
4,570 |
|
4,481 |
| ||
|
Net charge-offs |
|
|
|
|
|
$ |
(4,030 |
) |
$ |
(14,265 |
) |
|
|
|
|
|
|
|
|
|
|
| ||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming assets to total assets |
|
|
|
|
|
1.14 |
% |
1.89 |
% | ||
|
Nonperforming loans to total loans |
|
|
|
|
|
1.02 |
% |
1.66 |
% | ||
|
Nonperforming loans and OREO to total loans and OREO |
|
|
|
|
|
1.56 |
% |
2.76 |
% | ||
|
Allowance for loan and credit losses to total loans |
|
|
|
|
|
2.43 |
% |
3.40 |
% | ||
|
Allowance for loan and credit losses to nonperforming loans |
|
|
|
|
|
237.75 |
% |
204.38 |
% | ||
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
| ||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
| ||||
|
Commercial |
|
$ |
1,460 |
|
$ |
1,899 |
|
$ |
3,359 |
|
$ |
729,442 |
|
0.46 |
% |
|
Real estate - mortgage |
|
3,105 |
|
7,674 |
|
10,779 |
|
880,377 |
|
1.22 |
% | ||||
|
Land acquisition & development |
|
1,697 |
|
2,958 |
|
4,655 |
|
53,562 |
|
8.69 |
% | ||||
|
Real estate - construction |
|
271 |
|
— |
|
271 |
|
67,022 |
|
0.40 |
% | ||||
|
Consumer |
|
202 |
|
446 |
|
648 |
|
149,638 |
|
0.43 |
% | ||||
|
Other loans |
|
— |
|
— |
|
— |
|
46,391 |
|
0.00 |
% | ||||
|
OREO & repossessed assets |
|
8,912 |
|
1,665 |
|
10,577 |
|
10,577 |
|
— |
| ||||
|
NPAs |
|
$ |
15,647 |
|
$ |
14,642 |
|
$ |
30,289 |
|
$ |
1,937,009 |
|
1.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans |
|
$ |
1,404,088 |
|
$ |
522,344 |
|
$ |
1,926,432 |
|
|
|
|
| |
|
Total loans and OREO |
|
1,413,000 |
|
524,009 |
|
1,937,009 |
|
|
|
|
| ||||
|
Nonperforming loans to loans |
|
0.48 |
% |
2.48 |
% |
1.02 |
% |
|
|
|
| ||||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.11 |
% |
2.79 |
% |
1.56 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
December 31, 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 December 31, 2012 |
|
$ |
24,581 |
|
$ |
1 |
|
$ |
(8 |
) |
$ |
(1 |
) |
$ |
(1,369 |
) |
$ |
23,204 |
|
|
Quarter ended September 30, 2012 |
|
24,634 |
|
1 |
|
(10 |
) |
2 |
|
(1,380 |
) |
23,247 |
| ||||||
|
Annualized quarterly growth |
|
(.9 |
)% |
.0 |
% |
79.6 |
% |
(596.7 |
)% |
3.2 |
% |
(.7 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
25,266 |
|
$ |
2 |
|
$ |
(3 |
) |
$ |
1 |
|
$ |
(1,414 |
) |
$ |
23,852 |
|
|
Annual growth |
|
(2.7 |
)% |
(50.0 |
)% |
(166.7 |
)% |
(200.0 |
)% |
3.2 |
% |
(2.7 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2012 |
|
$ |
3,756 |
|
$ |
3,358 |
|
$ |
1,109 |
|
$ |
2,341 |
|
$ |
108 |
|
$ |
10,672 |
|
|
Quarter ended September 30, 2012 |
|
2,495 |
|
253 |
|
1,176 |
|
2,412 |
|
64 |
|
6,400 |
| ||||||
|
Annualized quarterly growth |
|
201.1 |
% |
nm |
|
(22.7 |
)% |
(11.7 |
)% |
273.5 |
% |
265.5 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
2,808 |
|
$ |
5,431 |
|
$ |
1,022 |
|
$ |
2,194 |
|
$ |
40 |
|
$ |
11,495 |
|
|
Annual growth |
|
33.8 |
% |
(38.2 |
)% |
8.5 |
% |
6.7 |
% |
170.0 |
% |
(7.2 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2012 |
|
$ |
7,692 |
|
$ |
1,014 |
|
$ |
107 |
|
$ |
(160 |
) |
$ |
(1,122 |
) |
$ |
7,531 |
|
|
Quarter ended September 30, 2012 |
|
8,114 |
|
(346 |
) |
(213 |
) |
(107 |
) |
(1,099 |
) |
6,349 |
| ||||||
|
Annualized quarterly growth |
|
(20.7 |
)% |
nm |
|
597.7 |
% |
(197.1 |
)% |
(8.3 |
)% |
74.1 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
10,003 |
|
$ |
1,370 |
|
$ |
285 |
|
$ |
129 |
|
$ |
10,167 |
|
$ |
21,954 |
|
|
Annual growth |
|
(23.1 |
)% |
(26.0 |
)% |
(62.5 |
)% |
(224.0 |
)% |
(111.0 |
)% |
(65.7 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Earnings per share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2012 |
|
$ |
0.20 |
|
$ |
0.02 |
|
$ |
— |
|
$ |
— |
|
$ |
(0.05 |
) |
$ |
0.17 |
|
|
Quarter ended September 30, 2012 |
|
0.21 |
|
(0.01 |
) |
(0.01 |
) |
— |
|
(0.05 |
) |
0.14 |
| ||||||
|
Annualized quarterly growth |
|
(18.9 |
)% |
nm |
|
397.8 |
% |
— |
|
.0 |
% |
85.2 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
0.27 |
|
$ |
0.03 |
|
$ |
0.01 |
|
$ |
— |
|
$ |
0.26 |
|
$ |
0.57 |
|
|
Annual growth |
|
(25.9 |
)% |
(33.3 |
)% |
(100.0 |
)% |
.0 |
% |
(119.2 |
)% |
(70.2 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,926,432 |
| |||||
|
At September 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
1,811,407 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
25.3 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,637,424 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
17.7 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total deposits and customer repurchase agreements |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,257,147 |
| |||||
|
At September 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
2,173,612 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
15.3 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
2,046,354 |
| ||||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
10.3 |
% | ||||||
NM = Not meaningful
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
COMMERCIAL BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,158 |
|
$ |
26,364 |
|
$ |
26,759 |
|
$ |
26,476 |
|
$ |
27,214 |
|
|
Total interest expense |
|
1,577 |
|
1,730 |
|
1,766 |
|
1,813 |
|
1,948 |
| |||||
|
Net interest income |
|
24,581 |
|
24,634 |
|
24,993 |
|
24,663 |
|
25,266 |
| |||||
|
Provision for loan losses |
|
(18 |
) |
(2,324 |
) |
(1,841 |
) |
637 |
|
727 |
| |||||
|
Net interest income (loss) after provision |
|
24,599 |
|
26,958 |
|
26,834 |
|
24,026 |
|
24,539 |
| |||||
|
Noninterest income |
|
3,756 |
|
2,495 |
|
2,965 |
|
3,430 |
|
2,808 |
| |||||
|
Noninterest expense |
|
8,631 |
|
7,261 |
|
7,424 |
|
9,648 |
|
8,616 |
| |||||
|
Income (loss) before income taxes |
|
19,724 |
|
22,192 |
|
22,375 |
|
17,808 |
|
18,731 |
| |||||
|
Provision (benefit) for income taxes |
|
7,226 |
|
8,374 |
|
8,161 |
|
6,523 |
|
2,812 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
12,498 |
|
$ |
13,818 |
|
$ |
14,214 |
|
$ |
11,285 |
|
$ |
15,919 |
|
|
Management fees and overhead allocations, net of tax |
|
4,806 |
|
5,704 |
|
5,377 |
|
4,718 |
|
5,916 |
| |||||
|
Net income |
|
$ |
7,692 |
|
$ |
8,114 |
|
$ |
8,837 |
|
$ |
6,567 |
|
$ |
10,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INVESTMENT BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
3 |
|
$ |
2 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
1 |
|
1 |
|
1 |
|
3 |
|
2 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
1 |
|
1 |
|
3 |
|
2 |
| |||||
|
Noninterest income |
|
3,358 |
|
253 |
|
148 |
|
74 |
|
5,431 |
| |||||
|
Noninterest expense |
|
1,630 |
|
833 |
|
823 |
|
871 |
|
3,160 |
| |||||
|
Income (loss) before income taxes |
|
1,729 |
|
(579 |
) |
(674 |
) |
(794 |
) |
2,273 |
| |||||
|
Provision (benefit) for income taxes |
|
679 |
|
(266 |
) |
(260 |
) |
(303 |
) |
870 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
1,050 |
|
$ |
(313 |
) |
$ |
(414 |
) |
$ |
(491 |
) |
$ |
1,403 |
|
|
Management fees and overhead allocations, net of tax |
|
36 |
|
33 |
|
41 |
|
40 |
|
33 |
| |||||
|
Net income (loss) |
|
$ |
1,014 |
|
$ |
(346 |
) |
$ |
(455 |
) |
$ |
(531 |
) |
$ |
1,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Total interest expense |
|
8 |
|
10 |
|
13 |
|
8 |
|
3 |
| |||||
|
Net interest income |
|
(8 |
) |
(10 |
) |
(13 |
) |
(8 |
) |
(3 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(8 |
) |
(10 |
) |
(13 |
) |
(8 |
) |
(3 |
) | |||||
|
Noninterest income |
|
1,109 |
|
1,176 |
|
951 |
|
967 |
|
1,022 |
| |||||
|
Noninterest expense |
|
1,394 |
|
1,072 |
|
1,198 |
|
1,149 |
|
1,200 |
| |||||
|
Income (loss) before income taxes |
|
(293 |
) |
94 |
|
(260 |
) |
(190 |
) |
(181 |
) | |||||
|
Provision (benefit) for income taxes |
|
(112 |
) |
32 |
|
(107 |
) |
(62 |
) |
(255 |
) | |||||
|
Net income (loss) from continuing operations |
|
(181 |
) |
62 |
|
(153 |
) |
(128 |
) |
74 |
| |||||
|
Income (loss) from discontinued operations, net of tax |
|
453 |
|
(125 |
) |
(45 |
) |
41 |
|
367 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
272 |
|
(63 |
) |
(198 |
) |
(87 |
) |
441 |
| |||||
|
Management fees and overhead allocations, net of tax |
|
165 |
|
150 |
|
161 |
|
165 |
|
156 |
| |||||
|
Net income (loss) |
|
$ |
107 |
|
$ |
(213 |
) |
$ |
(359 |
) |
$ |
(252 |
) |
$ |
285 |
|
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INSURANCE |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
2 |
|
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
|
Total interest expense |
|
2 |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
(1 |
) |
2 |
|
1 |
|
— |
|
1 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(1 |
) |
2 |
|
1 |
|
— |
|
1 |
| |||||
|
Noninterest income |
|
2,341 |
|
2,412 |
|
2,517 |
|
2,410 |
|
2,194 |
| |||||
|
Noninterest expense |
|
2,448 |
|
2,444 |
|
2,318 |
|
2,328 |
|
2,300 |
| |||||
|
Income (loss) before income taxes |
|
(108 |
) |
(30 |
) |
200 |
|
82 |
|
(105 |
) | |||||
|
Provision (benefit) for income taxes |
|
(40 |
) |
(9 |
) |
81 |
|
36 |
|
(314 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(68 |
) |
$ |
(21 |
) |
$ |
119 |
|
$ |
46 |
|
$ |
209 |
|
|
Management fees and overhead allocations, net of tax |
|
92 |
|
86 |
|
107 |
|
103 |
|
80 |
| |||||
|
Net income (loss) |
|
$ |
(160 |
) |
$ |
(107 |
) |
$ |
12 |
|
$ |
(57 |
) |
$ |
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CORPORATE SUPPORT AND OTHER |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
83 |
|
$ |
82 |
|
$ |
81 |
|
$ |
115 |
|
$ |
67 |
|
|
Total interest expense |
|
1,452 |
|
1,462 |
|
1,439 |
|
1,470 |
|
1,481 |
| |||||
|
Net interest income |
|
(1,369 |
) |
(1,380 |
) |
(1,358 |
) |
(1,355 |
) |
(1,414 |
) | |||||
|
Provision for loan losses |
|
(319 |
) |
(182 |
) |
21 |
|
(707 |
) |
(347 |
) | |||||
|
Net interest income (loss) after provision |
|
(1,050 |
) |
(1,198 |
) |
(1,379 |
) |
(648 |
) |
(1,067 |
) | |||||
|
Noninterest income |
|
108 |
|
64 |
|
(11 |
) |
36 |
|
40 |
| |||||
|
Noninterest expense |
|
9,105 |
|
10,348 |
|
10,826 |
|
9,415 |
|
10,350 |
| |||||
|
Income (loss) before income taxes |
|
(10,047 |
) |
(11,482 |
) |
(12,216 |
) |
(10,027 |
) |
(11,377 |
) | |||||
|
Provision (benefit) for income taxes |
|
(3,826 |
) |
(4,410 |
) |
(4,645 |
) |
(3,814 |
) |
(15,359 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(6,221 |
) |
$ |
(7,072 |
) |
$ |
(7,571 |
) |
$ |
(6,213 |
) |
$ |
3,982 |
|
|
Management fees and overhead allocations, net of tax |
|
(5,099 |
) |
(5,973 |
) |
(5,686 |
) |
(5,026 |
) |
(6,185 |
) | |||||
|
Net income (loss) |
|
$ |
(1,122 |
) |
$ |
(1,099 |
) |
$ |
(1,885 |
) |
$ |
(1,187 |
) |
$ |
10,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,243 |
|
$ |
26,449 |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
|
Total interest expense |
|
3,039 |
|
3,202 |
|
3,218 |
|
3,291 |
|
3,432 |
| |||||
|
Net interest income |
|
23,204 |
|
23,247 |
|
23,624 |
|
23,303 |
|
23,852 |
| |||||
|
Provision for loan losses |
|
(337 |
) |
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
| |||||
|
Net interest income (loss) after provision |
|
23,541 |
|
25,753 |
|
25,444 |
|
23,373 |
|
23,472 |
| |||||
|
Noninterest income |
|
10,672 |
|
6,400 |
|
6,570 |
|
6,917 |
|
11,495 |
| |||||
|
Noninterest expense |
|
23,208 |
|
21,958 |
|
22,589 |
|
23,411 |
|
25,626 |
| |||||
|
Income (loss) before income taxes |
|
11,005 |
|
10,195 |
|
9,425 |
|
6,879 |
|
9,341 |
| |||||
|
Provision (benefit) for income taxes |
|
3,927 |
|
3,721 |
|
3,230 |
|
2,380 |
|
(12,246 |
) | |||||
|
Net income (loss) from continuing operations |
|
7,078 |
|
6,474 |
|
6,195 |
|
4,499 |
|
21,587 |
| |||||
|
Income (loss) from discontinued operations, net of tax |
|
453 |
|
(125 |
) |
(45 |
) |
41 |
|
367 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
7,531 |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
|
Management fees and overhead allocations, net of tax |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net income |
|
$ |
7,531 |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
| |||||
|
Interest income |
|
$ |
26,243 |
|
$ |
26,449 |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
|
Interest expense |
|
3,039 |
|
3,202 |
|
3,218 |
|
3,291 |
|
3,432 |
| |||||
|
Net interest income before provision |
|
23,204 |
|
23,247 |
|
23,624 |
|
23,303 |
|
23,852 |
| |||||
|
Provision for loan losses |
|
(337 |
) |
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
| |||||
|
Net interest income after provision |
|
23,541 |
|
25,753 |
|
25,444 |
|
23,373 |
|
23,472 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,220 |
|
$ |
1,218 |
|
$ |
1,221 |
|
$ |
1,244 |
|
$ |
1,221 |
|
|
Investment advisory income |
|
1,109 |
|
1,176 |
|
951 |
|
967 |
|
1,022 |
| |||||
|
Insurance income |
|
2,341 |
|
2,412 |
|
2,517 |
|
2,410 |
|
2,194 |
| |||||
|
Investment banking income |
|
3,358 |
|
253 |
|
148 |
|
74 |
|
5,431 |
| |||||
|
Other income |
|
2,644 |
|
1,341 |
|
1,733 |
|
2,222 |
|
1,627 |
| |||||
|
Total noninterest income |
|
10,672 |
|
6,400 |
|
6,570 |
|
6,917 |
|
11,495 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
15,526 |
|
$ |
14,004 |
|
$ |
13,790 |
|
$ |
14,675 |
|
$ |
16,815 |
|
|
Stock-based compensation expense |
|
450 |
|
499 |
|
511 |
|
480 |
|
346 |
| |||||
|
Occupancy expenses, premises and equipment |
|
3,393 |
|
3,307 |
|
3,335 |
|
3,436 |
|
3,479 |
| |||||
|
Amortization of intangibles |
|
193 |
|
265 |
|
133 |
|
133 |
|
133 |
| |||||
|
Other operating expenses |
|
4,331 |
|
3,818 |
|
4,291 |
|
4,234 |
|
4,098 |
| |||||
|
Net loss on securities, other assets and OREO |
|
(685 |
) |
65 |
|
529 |
|
453 |
|
755 |
| |||||
|
Total noninterest expense |
|
23,208 |
|
21,958 |
|
22,589 |
|
23,411 |
|
25,626 |
| |||||
|
Net income before income taxes |
|
11,005 |
|
10,195 |
|
9,425 |
|
6,879 |
|
9,341 |
| |||||
|
Provision (benefit) for income taxes |
|
3,927 |
|
3,721 |
|
3,230 |
|
2,380 |
|
(12,246 |
) | |||||
|
Net income from continuing operations |
|
7,078 |
|
6,474 |
|
6,195 |
|
4,499 |
|
21,587 |
| |||||
|
Income (loss) from discontinued operations, net of tax |
|
453 |
|
(125 |
) |
(45 |
) |
41 |
|
367 |
| |||||
|
Net income |
|
$ |
7,531 |
|
$ |
6,349 |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Preferred stock dividends |
|
(664 |
) |
(717 |
) |
(717 |
) |
(717 |
) |
(717 |
) | |||||
|
Net income available to common shareholders |
|
$ |
6,867 |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.17 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
|
Diluted |
|
$ |
0.17 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
3.89 |
% |
4.00 |
% |
4.19 |
% |
4.23 |
% |
4.27 |
% | |||||
|
Efficiency ratio |
|
70.30 |
% |
75.28 |
% |
74.32 |
% |
76.77 |
% |
70.01 |
% | |||||
|
Return on average assets |
|
1.15 |
% |
1.00 |
% |
1.00 |
% |
0.75 |
% |
3.61 |
% | |||||
|
Return on average shareholders’ equity |
|
11.77 |
% |
10.23 |
% |
10.22 |
% |
8.12 |
% |
42.89 |
% | |||||
|
Noninterest income as a percentage of operating revenues |
|
31.50 |
% |
21.59 |
% |
21.76 |
% |
22.89 |
% |
32.52 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares outstanding at period end (in thousands) |
|
39,790 |
|
39,729 |
|
39,708 |
|
39,697 |
|
37,090 |
| |||||
|
Diluted weighted average common shares outstanding (in thousands) |
|
39,164 |
|
39,122 |
|
39,029 |
|
37,154 |
|
36,780 |
| |||||
|
Book value per common share |
|
$ |
5.02 |
|
$ |
4.88 |
|
$ |
4.69 |
|
$ |
4.59 |
|
$ |
4.39 |
|
|
Tangible book value per common share * |
|
$ |
4.93 |
|
$ |
4.80 |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tangible common equity to tangible assets * |
|
7.40 |
% |
7.45 |
% |
7.23 |
% |
7.29 |
% |
6.58 |
% | |||||
|
Tangible equity to tangible assets * |
|
9.56 |
% |
9.69 |
% |
9.50 |
% |
9.63 |
% |
8.95 |
% | |||||
|
Tier 1 capital ratio |
|
** |
|
15.08 |
% |
15.01 |
% |
14.93 |
% |
13.98 |
% | |||||
|
Total risk based capital ratio |
|
** |
|
17.35 |
% |
17.32 |
% |
17.28 |
% |
16.33 |
% | |||||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
At |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
| |||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
2,653,641 |
|
$ |
2,559,954 |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
|
Loans |
|
1,926,432 |
|
1,811,407 |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
| |||||
|
Intangible assets |
|
3,573 |
|
3,148 |
|
3,439 |
|
3,239 |
|
3,399 |
| |||||
|
Deposits |
|
2,129,260 |
|
2,048,776 |
|
1,946,989 |
|
1,903,964 |
|
1,918,406 |
| |||||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Common shareholders’ equity |
|
199,713 |
|
193,692 |
|
186,097 |
|
182,291 |
|
162,744 |
| |||||
|
Total shareholders’ equity |
|
257,051 |
|
251,030 |
|
243,435 |
|
239,629 |
|
220,082 |
| |||||
|
Interest-earning assets |
|
2,473,847 |
|
2,382,653 |
|
2,355,707 |
|
2,284,829 |
|
2,239,700 |
| |||||
|
Interest-bearing liabilities |
|
1,490,901 |
|
1,443,399 |
|
1,480,256 |
|
1,460,302 |
|
1,438,691 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial |
|
$ |
729,442 |
|
$ |
663,880 |
|
$ |
628,327 |
|
$ |
594,812 |
|
$ |
568,962 |
|
|
Real estate - mortgage |
|
880,377 |
|
850,824 |
|
832,641 |
|
805,694 |
|
784,491 |
| |||||
|
Land acquisition & development |
|
53,562 |
|
54,220 |
|
56,455 |
|
58,218 |
|
61,977 |
| |||||
|
Real estate - construction |
|
67,022 |
|
56,180 |
|
65,761 |
|
57,422 |
|
63,141 |
| |||||
|
Consumer |
|
149,638 |
|
137,299 |
|
132,510 |
|
116,833 |
|
116,676 |
| |||||
|
Other |
|
46,391 |
|
49,004 |
|
50,994 |
|
45,468 |
|
42,177 |
| |||||
|
Gross loans |
|
1,926,432 |
|
1,811,407 |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
| |||||
|
Less allowance for loan losses |
|
(46,866 |
) |
(46,437 |
) |
(51,101 |
) |
(52,778 |
) |
(55,629 |
) | |||||
|
Total net loans |
|
$ |
1,879,566 |
|
$ |
1,764,970 |
|
$ |
1,715,587 |
|
$ |
1,625,669 |
|
$ |
1,581,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
866,250 |
|
$ |
813,202 |
|
$ |
767,102 |
|
$ |
768,620 |
|
$ |
773,826 |
|
|
Interest-bearing demand |
|
118,433 |
|
117,915 |
|
115,684 |
|
115,377 |
|
10,385 |
| |||||
|
Savings |
|
24,813 |
|
10,659 |
|
10,278 |
|
10,978 |
|
10,631 |
| |||||
|
Eurodollar |
|
— |
|
— |
|
— |
|
— |
|
97,748 |
| |||||
|
Certificates of deposits under $100,000 |
|
30,058 |
|
30,574 |
|
31,399 |
|
32,231 |
|
34,575 |
| |||||
|
Certificates of deposits $100,000 and over |
|
148,184 |
|
162,595 |
|
166,938 |
|
165,798 |
|
180,790 |
| |||||
|
Reciprocal CDARS |
|
82,127 |
|
90,468 |
|
94,336 |
|
87,978 |
|
89,638 |
| |||||
|
Total interest-bearing deposits |
|
1,269,865 |
|
1,225,413 |
|
1,185,737 |
|
1,180,982 |
|
1,197,593 |
| |||||
|
Noninterest-bearing demand deposits |
|
859,395 |
|
823,363 |
|
761,252 |
|
722,982 |
|
720,813 |
| |||||
|
Customer repurchase agreements |
|
127,887 |
|
124,836 |
|
127,144 |
|
118,499 |
|
127,948 |
| |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,257,147 |
|
$ |
2,173,612 |
|
$ |
2,074,133 |
|
$ |
2,022,463 |
|
$ |
2,046,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
2,600,083 |
|
$ |
2,529,999 |
|
$ |
2,476,936 |
|
$ |
2,424,709 |
|
$ |
2,413,877 |
|
|
Average loans |
|
1,831,430 |
|
1,780,352 |
|
1,712,917 |
|
1,647,846 |
|
1,654,437 |
| |||||
|
Average deposits |
|
2,062,306 |
|
1,979,267 |
|
1,893,456 |
|
1,886,707 |
|
1,904,601 |
| |||||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Average shareholders’ equity |
|
254,455 |
|
246,783 |
|
242,098 |
|
224,899 |
|
203,064 |
| |||||
|
Average interest-earning assets |
|
2,430,196 |
|
2,365,965 |
|
2,310,064 |
|
2,248,628 |
|
2,246,836 |
| |||||
|
Average interest-bearing liabilities |
|
1,477,566 |
|
1,468,194 |
|
1,481,794 |
|
1,444,649 |
|
1,462,576 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for loan losses |
|
$ |
46,437 |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
59,695 |
|
|
Provision for loan losses |
|
(337 |
) |
(2,506 |
) |
(1,820 |
) |
(70 |
) |
380 |
| |||||
|
Net recovery (charge-off) |
|
766 |
|
(2,158 |
) |
143 |
|
(2,781 |
) |
(4,446 |
) | |||||
|
Ending allowance for loan losses |
|
$ |
46,866 |
|
$ |
46,437 |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
55,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
Provision for credit losses |
|
(35 |
) |
— |
|
— |
|
— |
|
(26 |
) | |||||
|
Ending allowance for credit losses |
|
$ |
— |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total provision for loan and credit losses |
|
$ |
(372 |
) |
$ |
(2,506 |
) |
$ |
(1,820 |
) |
$ |
(70 |
) |
$ |
354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonaccrual loans |
|
$ |
19,677 |
|
$ |
19,471 |
|
$ |
24,950 |
|
$ |
27,941 |
|
$ |
27,024 |
|
|
Loans 90 days or more past due and accruing interest |
|
35 |
|
1,183 |
|
— |
|
— |
|
212 |
| |||||
|
Total nonperforming loans |
|
19,712 |
|
20,654 |
|
24,950 |
|
27,941 |
|
27,236 |
| |||||
|
OREO and repossessed assets |
|
10,577 |
|
13,619 |
|
13,651 |
|
17,224 |
|
18,502 |
| |||||
|
Total nonperforming assets |
|
$ |
30,289 |
|
$ |
34,273 |
|
$ |
38,601 |
|
$ |
45,165 |
|
$ |
45,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Performing renegotiated loans |
|
$ |
43,321 |
|
$ |
34,637 |
|
$ |
36,010 |
|
$ |
27,184 |
|
$ |
20,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to total assets |
|
1.14 |
% |
1.34 |
% |
1.53 |
% |
1.84 |
% |
1.89 |
% | |||||
|
Nonperforming loans to total loans |
|
1.02 |
% |
1.14 |
% |
1.41 |
% |
1.66 |
% |
1.66 |
% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.56 |
% |
1.88 |
% |
2.17 |
% |
2.66 |
% |
2.76 |
% | |||||
|
Allowance for loan and credit losses to total loans |
|
2.43 |
% |
2.57 |
% |
2.89 |
% |
3.15 |
% |
3.40 |
% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
|
237.75 |
% |
225.00 |
% |
204.95 |
% |
189.02 |
% |
204.38 |
% | |||||
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
For the three months ended, |
| ||||||||||||||||||||||
|
|
|
December 31, 2012 |
|
September 30, 2012 |
|
December 31, 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 |
|
$ |
59,059 |
|
$ |
38 |
|
0.25 |
% |
$ |
28,933 |
|
$ |
26 |
|
0.35 |
% |
$ |
25,755 |
|
$ |
28 |
|
0.43 |
% |
|
Investment securities |
|
586,482 |
|
4,276 |
|
2.92 |
% |
607,696 |
|
4,535 |
|
2.99 |
% |
625,062 |
|
5,475 |
|
3.50 |
% | ||||||
|
Loans |
|
1,831,430 |
|
22,496 |
|
4.81 |
% |
1,780,352 |
|
22,411 |
|
4.93 |
% |
1,654,437 |
|
22,106 |
|
5.23 |
% | ||||||
|
Allowance for loan losses |
|
(46,775 |
) |
|
|
|
|
(51,016 |
) |
|
|
|
|
(58,418 |
) |
|
|
|
| ||||||
|
Total interest-earning assets |
|
$ |
2,430,196 |
|
$ |
26,810 |
|
4.24 |
% |
$ |
2,365,965 |
|
$ |
26,972 |
|
4.37 |
% |
$ |
2,246,836 |
|
$ |
27,609 |
|
4.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest-earning assets |
|
169,887 |
|
|
|
|
|
164,034 |
|
|
|
|
|
167,041 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
2,600,083 |
|
|
|
|
|
$ |
2,529,999 |
|
|
|
|
|
$ |
2,413,877 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NOW and money market |
|
$ |
834,026 |
|
$ |
861 |
|
0.41 |
% |
$ |
782,546 |
|
$ |
924 |
|
0.47 |
% |
$ |
759,980 |
|
$ |
1,007 |
|
0.53 |
% |
|
Interest-bearing demand |
|
117,844 |
|
138 |
|
0.47 |
% |
121,979 |
|
164 |
|
0.53 |
% |
5,665 |
|
2 |
|
0.14 |
% | ||||||
|
Savings |
|
12,860 |
|
3 |
|
0.09 |
% |
10,601 |
|
3 |
|
0.11 |
% |
10,267 |
|
3 |
|
0.12 |
% | ||||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% |
97,607 |
|
165 |
|
0.66 |
% | ||||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reciprocal |
|
84,840 |
|
104 |
|
0.49 |
% |
91,515 |
|
114 |
|
0.49 |
% |
93,824 |
|
127 |
|
0.54 |
% | ||||||
|
Under $100,000 |
|
30,442 |
|
44 |
|
0.58 |
% |
30,838 |
|
46 |
|
0.59 |
% |
35,255 |
|
69 |
|
0.78 |
% | ||||||
|
$100,000 and over |
|
154,821 |
|
270 |
|
0.69 |
% |
165,152 |
|
296 |
|
0.71 |
% |
189,882 |
|
368 |
|
0.77 |
% | ||||||
|
Total interest-bearing deposits |
|
$ |
1,234,833 |
|
$ |
1,420 |
|
0.46 |
% |
$ |
1,202,631 |
|
$ |
1,547 |
|
0.51 |
% |
$ |
1,192,480 |
|
$ |
1,741 |
|
0.58 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Securities sold under agreements to repurchase |
|
147,773 |
|
100 |
|
0.26 |
% |
151,222 |
|
120 |
|
0.31 |
% |
148,590 |
|
155 |
|
0.41 |
% | ||||||
|
Other short-term borrowings |
|
1,810 |
|
1 |
|
0.22 |
% |
21,191 |
|
17 |
|
0.31 |
% |
28,356 |
|
19 |
|
0.26 |
% | ||||||
|
Long term-debt |
|
93,150 |
|
1,518 |
|
6.38 |
% |
93,150 |
|
1,518 |
|
6.38 |
% |
93,150 |
|
1,517 |
|
6.37 |
% | ||||||
|
Total interest-bearing liabilities |
|
$ |
1,477,566 |
|
$ |
3,039 |
|
0.81 |
% |
$ |
1,468,194 |
|
$ |
3,202 |
|
0.86 |
% |
$ |
1,462,576 |
|
$ |
3,432 |
|
0.92 |
% |
|
Noninterest-bearing demand accounts |
|
827,473 |
|
|
|
|
|
776,636 |
|
|
|
|
|
712,121 |
|
|
|
|
| ||||||
|
Total deposits and interest-bearing liabilities |
|
2,305,039 |
|
|
|
|
|
2,244,830 |
|
|
|
|
|
2,174,697 |
|
|
|
|
| ||||||
|
Other noninterest-bearing liabilities |
|
40,589 |
|
|
|
|
|
38,386 |
|
|
|
|
|
36,116 |
|
|
|
|
| ||||||
|
Total liabilities |
|
2,345,628 |
|
|
|
|
|
2,283,216 |
|
|
|
|
|
2,210,813 |
|
|
|
|
| ||||||
|
Total equity |
|
254,455 |
|
|
|
|
|
246,783 |
|
|
|
|
|
203,064 |
|
|
|
|
| ||||||
|
Total liabilities and equity |
|
$ |
2,600,083 |
|
|
|
|
|
$ |
2,529,999 |
|
|
|
|
|
$ |
2,413,877 |
|
|
|
|
| |||
|
Net interest income - taxable equivalent |
|
|
|
$ |
23,771 |
|
|
|
|
|
$ |
23,770 |
|
|
|
|
|
$ |
24,177 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
3.43 |
% |
|
|
|
|
3.51 |
% |
|
|
|
|
3.77 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
3.89 |
% |
|
|
|
|
4.00 |
% |
|
|
|
|
4.27 |
% | ||||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
164.47 |
% |
|
|
|
|
161.15 |
% |
|
|
|
|
153.62 |
% |
|
|
|
| ||||||
CoBiz Financial Inc.
December 31, 2012
(unaudited)
|
|
|
For the year ended December 31, |
| ||||||||||||||
|
|
|
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 |
|
$ |
31,575 |
|
$ |
114 |
|
0.36 |
% |
$ |
32,183 |
|
$ |
130 |
|
0.40 |
% |
|
Investment securities |
|
614,468 |
|
19,540 |
|
3.18 |
% |
621,346 |
|
22,743 |
|
3.66 |
% | ||||
|
Loans |
|
1,743,473 |
|
88,381 |
|
5.07 |
% |
1,651,247 |
|
89,575 |
|
5.42 |
% | ||||
|
Allowance for loan losses |
|
(51,627 |
) |
|
|
|
|
(62,381 |
) |
|
|
|
| ||||
|
Total interest earning-assets |
|
$ |
2,337,889 |
|
$ |
108,035 |
|
4.51 |
% |
$ |
2,242,395 |
|
$ |
112,448 |
|
4.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Noninterest-earning assets |
|
170,333 |
|
|
|
|
|
161,565 |
|
|
|
|
| ||||
|
Total assets |
|
$ |
2,508,222 |
|
|
|
|
|
$ |
2,403,960 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NOW and money market |
|
$ |
786,979 |
|
$ |
3,711 |
|
0.47 |
% |
$ |
721,151 |
|
$ |
4,366 |
|
0.61 |
% |
|
Interest-bearing demand |
|
113,520 |
|
594 |
|
0.52 |
% |
1,605 |
|
2 |
|
0.12 |
% | ||||
|
Savings |
|
11,185 |
|
11 |
|
0.10 |
% |
9,997 |
|
17 |
|
0.17 |
% | ||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
96,378 |
|
701 |
|
0.73 |
% | ||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Brokered |
|
— |
|
— |
|
0.00 |
% |
5 |
|
— |
|
1.38 |
% | ||||
|
Reciprocal |
|
90,113 |
|
446 |
|
0.49 |
% |
108,318 |
|
664 |
|
0.61 |
% | ||||
|
Under $100,000 |
|
31,594 |
|
199 |
|
0.63 |
% |
37,961 |
|
348 |
|
0.92 |
% | ||||
|
$100,000 and over |
|
163,205 |
|
1,200 |
|
0.74 |
% |
216,850 |
|
1,923 |
|
0.89 |
% | ||||
|
Total interest-bearing deposits |
|
$ |
1,196,596 |
|
$ |
6,161 |
|
0.51 |
% |
$ |
1,192,265 |
|
$ |
8,021 |
|
0.67 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Securities sold under agreements to repurchase |
|
138,948 |
|
425 |
|
0.31 |
% |
156,745 |
|
787 |
|
0.50 |
% | ||||
|
Other short-term borrowings |
|
39,435 |
|
123 |
|
0.31 |
% |
14,142 |
|
37 |
|
0.26 |
% | ||||
|
Long-term debt |
|
93,150 |
|
6,041 |
|
6.49 |
% |
93,150 |
|
6,018 |
|
6.46 |
% | ||||
|
Total interest-bearing liabilities |
|
$ |
1,468,129 |
|
$ |
12,750 |
|
0.87 |
% |
$ |
1,456,302 |
|
$ |
14,863 |
|
1.02 |
% |
|
Noninterest-bearing demand accounts |
|
759,162 |
|
|
|
|
|
712,830 |
|
|
|
|
| ||||
|
Total deposits and interest-bearing liabilities |
|
2,227,291 |
|
|
|
|
|
2,169,132 |
|
|
|
|
| ||||
|
Other noninterest-bearing liabilities |
|
38,827 |
|
|
|
|
|
28,635 |
|
|
|
|
| ||||
|
Total liabilities |
|
2,266,118 |
|
|
|
|
|
2,197,767 |
|
|
|
|
| ||||
|
Total equity |
|
242,104 |
|
|
|
|
|
206,193 |
|
|
|
|
| ||||
|
Total liabilities and equity |
|
$ |
2,508,222 |
|
|
|
|
|
$ |
2,403,960 |
|
|
|
|
| ||
|
Net interest income - taxable equivalent |
|
|
|
$ |
95,285 |
|
|
|
|
|
$ |
97,585 |
|
|
| ||
|
Net interest spread |
|
|
|
|
|
3.64 |
% |
|
|
|
|
3.84 |
% | ||||
|
Net interest margin |
|
|
|
|
|
4.08 |
% |
|
|
|
|
4.35 |
% | ||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
159.24 |
% |
|
|
|
|
153.98 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
December 31, 2012
(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. The table also includes Non-GAAP financial measurements related to earnings per share as adjusted for items the Company does not believe are representative of its core earnings.
|
|
|
|
|
At |
| |||||||||||||
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
|
|
|
|
2012 |
|
2012 |
|
2012 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Shareholders’ equity as reported - GAAP |
|
$ |
257,051 |
|
$ |
251,030 |
|
$ |
243,435 |
|
$ |
239,629 |
|
$ |
220,082 |
|
|
|
|
Intangible assets |
|
(3,573 |
) |
(3,148 |
) |
(3,439 |
) |
(3,239 |
) |
(3,399 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A |
|
Tangible equity - Non-GAAP |
|
253,478 |
|
247,882 |
|
239,996 |
|
236,390 |
|
216,683 |
| |||||
|
|
|
Preferred stock |
|
(57,338 |
) |
(57,338 |
) |
(57,338 |
) |
(57,338 |
) |
(57,338 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B |
|
Tangible common equity - Non-GAAP |
|
$ |
196,140 |
|
$ |
190,544 |
|
$ |
182,658 |
|
$ |
179,052 |
|
$ |
159,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Total assets as reported - GAAP |
|
$ |
2,653,641 |
|
$ |
2,559,954 |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
|
|
|
Intangible assets |
|
(3,573 |
) |
(3,148 |
) |
(3,439 |
) |
(3,239 |
) |
(3,399 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
C |
|
Total tangible assets - Non-GAAP |
|
$ |
2,650,068 |
|
$ |
2,556,806 |
|
$ |
2,526,694 |
|
$ |
2,455,050 |
|
$ |
2,420,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
D |
|
Common shares outstanding |
|
39,790 |
|
39,729 |
|
39,708 |
|
39,697 |
|
37,090 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / C |
|
Tangible common equity to tangible assets - Non-GAAP |
|
7.40 |
% |
7.45 |
% |
7.23 |
% |
7.29 |
% |
6.58 |
% | |||||
|
A / C |
|
Tangible equity to tangible assets - Non-GAAP |
|
9.56 |
% |
9.69 |
% |
9.50 |
% |
9.63 |
% |
8.95 |
% | |||||
|
B / D |
|
Tangible book value per common share - Non-GAAP |
|
$ |
4.93 |
|
$ |
4.80 |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Net income available to common shareholders as reported - GAAP |
|
$ |
6,867 |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
|
|
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
E |
|
Deferred tax valuation allowance |
|
— |
|
— |
|
— |
|
— |
|
(15,596 |
) | |||||
|
|
|
Adjusted net income available to common shareholders- Non-GAAP |
|
$ |
6,867 |
|
$ |
5,632 |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
5,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Earnings per common share - GAAP |
|
$ |
0.17 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
|
E / D |
|
Effect of deferred tax valuation allowance |
|
— |
|
— |
|
— |
|
— |
|
(0.42 |
) | |||||
|
|
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.17 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.15 |
|