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| 8-K - 8-K - COBIZ FINANCIAL INC | cobz-20140123x8k.htm |
CoBiz Financial Announces Fourth Quarter 2013 Results
Reports 23% increase in net income available to common shareholders for 2013
Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $2.8 billion in assets, announced net income available to common shareholders of $7.1 million for the fourth quarter of 2013, or $0.18 per diluted common share. Net income available to common shareholders for the fourth quarter of 2012 was $6.9 million, or $0.17 per diluted common share. Return on average assets for the fourth quarter of 2013 was 1.03% versus 1.15% for the prior-year quarter, and return on average shareholders’ equity was 10.42% for the fourth quarter of 2013 versus 11.77% for the prior-year quarter.
For the year ended December 31, 2013, the Company reported a 22.6% increase in net income available to common shareholders over 2012. Net income available to common shareholders was $26.7 million for 2013, or $0.66 per diluted common share, versus $21.8 million, or $0.55 per diluted common share, for the year ended December 31, 2012.
Financial highlights – Fourth quarter 2013
|
· |
Net interest income on a tax-equivalent basis (NII) increased $0.4 million, or 6.6% annualized, from the third quarter of 2013 (linked-quarter basis) and $1.8 million, or 7.4%, from the prior-year quarter. Supported by a stabilizing net interest margin, the Company’s NII posted linked-quarter increases throughout 2013 growing to $25.5 million for the fourth quarter of 2013 from $23.8 million for the fourth quarter of 2012. |
|
· |
The fourth quarter of 2013 benefited from decreased credit related costs on a linked-quarter basis; a negative provision for loan losses of $4.6 million was recorded during the fourth quarter, offset by net Other Real Estate Owned (OREO) write-downs of $2.1 million. |
|
· |
Credit quality improved as the ratio of Nonperforming Assets (NPAs) to total assets fell to 0.68% at December 31, 2013, from 0.91% in the prior linked-quarter and 1.14% in the prior-year quarter. |
|
· |
Loans increased $35.5 million, or 6.9% annualized, from the prior linked-quarter and $157.9 million, or 8.2%, from the prior-year quarter. |
Financial Summary
|
Quarter ended |
4Q13 change vs. |
|||||||||||||||
|
(in thousands, except per share amounts) |
4Q13 |
3Q13 |
4Q12 |
3Q13 |
4Q12 |
|||||||||||
|
Net interest income before provision |
$ |
24,776 |
$ |
24,375 |
$ |
23,204 |
$ |
401 | 1.6% |
$ |
1,572 | 6.8% | ||||
|
Provision for loan losses |
(4,595) | (1,554) | (337) | (3,041) | 195.7% | (4,258) | 1,263.5% | |||||||||
|
Net interest income after provision |
29,371 | 25,929 | 23,541 | 3,442 | 13.3% | 5,830 | 24.8% | |||||||||
|
Total noninterest income |
8,252 | 7,759 | 10,672 | 493 | 6.4% | (2,420) |
(22.7)% |
|||||||||
|
Total noninterest expense |
26,639 | 23,814 | 23,208 | 2,825 | 11.9% | 3,431 | 14.8% | |||||||||
|
Net income before income taxes |
10,984 | 9,874 | 11,005 | 1,110 | 11.2% | (21) |
(0.2)% |
|||||||||
|
Provision for income taxes |
3,709 | 2,849 | 3,927 | 860 | 30.2% | (218) |
(5.6)% |
|||||||||
|
Income from continuing operations |
7,275 | 7,025 | 7,078 | 250 | 3.6% | 197 | 2.8% | |||||||||
|
Discontinued operations, net of tax |
- |
- |
453 |
- |
0.0% | (453) |
(100.0)% |
|||||||||
|
Net income |
7,275 | 7,025 | 7,531 | 250 | 3.6% | (256) |
(3.4)% |
|||||||||
|
Preferred stock dividends |
(143) | (144) | (664) | 1 |
(0.7)% |
521 |
(78.5)% |
|||||||||
|
Net income available to common shareholders |
$ |
7,132 |
$ |
6,881 |
$ |
6,867 |
$ |
251 | 3.6% |
$ |
265 | 3.9% | ||||
|
Diluted earnings per common share |
$ |
0.18 |
$ |
0.17 |
$ |
0.17 |
$ |
0.01 | 5.9% |
$ |
0.01 | 5.9% | ||||
|
KEY RATIOS |
||||||||||||||||
|
Net interest margin |
3.85% | 3.87% | 3.89% | |||||||||||||
|
Efficiency ratio |
74.23% | 75.10% | 70.30% | |||||||||||||
|
Return on average assets |
1.03% | 1.02% | 1.15% | |||||||||||||
|
Return on average shareholders' equity |
10.42% | 10.34% | 11.77% | |||||||||||||
|
Noninterest income as a percentage of operating revenues |
24.98% | 24.15% | 31.50% | |||||||||||||
1 | Page
“Overall, I am pleased with our operating results for the fourth quarter and for the full year of 2013. With the momentum we have in our core earnings, we felt it was a good time to reinvest in the franchise. During the year we launched several important growth initiatives, announcing expansion into two new markets in Colorado (Fort Collins and Colorado Springs), the launch of CoBiz Private Bank, as well as significant enhancements to our International Banking and SBA offerings,” said Chairman and CEO Steve Bangert.
“I believe we are well positioned as we enter 2014 with a solid pipeline of business opportunities. I look forward to building on what we accomplished in 2013.”
Loans
|
· |
Loans at December 31, 2013, were $2.1 billion, increasing $35.5 million or 6.9% annualized from the prior linked-quarter. From the prior year end, loans increased $157.9 million, or 8.2%. |
|
Quarter ended |
4Q13 change vs. |
|||||||||||||||
|
(in thousands) |
4Q13 |
3Q13 |
4Q12 |
3Q13 |
4Q12 |
|||||||||||
|
LOANS |
||||||||||||||||
|
Commercial & industrial |
$ |
824,453 |
$ |
815,424 |
$ |
729,442 |
$ |
9,029 | 1.1% |
$ |
95,011 | 13.0% | ||||
|
Owner-occupied real estate |
452,959 | 446,976 | 434,384 | 5,983 | 1.3% | 18,575 | 4.3% | |||||||||
|
Investor real estate |
447,905 | 443,516 | 445,993 | 4,389 | 1.0% | 1,912 | 0.4% | |||||||||
|
Land acquisition & development |
45,470 | 43,359 | 53,562 | 2,111 | 4.9% | (8,092) |
(15.1)% |
|||||||||
|
Real estate - construction |
82,482 | 61,787 | 67,022 | 20,695 | 33.5% | 15,460 | 23.1% | |||||||||
|
Consumer |
181,056 | 180,243 | 149,638 | 813 | 0.5% | 31,418 | 21.0% | |||||||||
|
Other |
50,034 | 57,561 | 46,391 | (7,527) |
(13.1)% |
3,643 | 7.9% | |||||||||
|
Total loans |
$ |
2,084,359 |
$ |
2,048,866 |
$ |
1,926,432 |
$ |
35,493 | 1.7% |
$ |
157,927 | 8.2% | ||||
|
· |
New loans of $158.8 million were added during the fourth quarter of 2013 and advances on existing lines totaled $79.1 million. |
|
· |
During the fourth quarter, paydowns and maturities accelerated from recent quarters. Paydowns and maturities were $201.0 million in the fourth quarter, versus $172.5 million in the prior-year quarter. |
|
Quarter ended |
||||||||||||||
|
(in thousands) |
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|||||||||
|
Loans - beginning balance |
$ |
2,048,866 |
$ |
2,017,844 |
$ |
1,925,806 |
$ |
1,926,432 |
$ |
1,811,407 | ||||
|
New credit extended |
158,801 | 136,138 | 149,053 | 78,587 | 205,723 | |||||||||
|
Credit advanced |
79,126 | 88,680 | 96,122 | 72,487 | 82,306 | |||||||||
|
Paydowns & maturities |
(201,026) | (193,396) | (151,176) | (150,878) | (172,540) | |||||||||
|
Gross loan charge-offs |
(1,408) | (400) | (1,961) | (822) | (464) | |||||||||
|
Loans - ending balance |
$ |
2,084,359 |
$ |
2,048,866 |
$ |
2,017,844 |
$ |
1,925,806 |
$ |
1,926,432 | ||||
|
Net change - loans outstanding |
$ |
35,493 |
$ |
31,022 |
$ |
92,038 |
$ |
(626) |
$ |
115,025 | ||||
|
· |
Gross credit commitments increased by $82.5 million during the fourth quarter of 2013, a 29.4% annualized increase from the prior linked-quarter. The increase was primarily attributed to the Construction and Commercial and Industrial portfolios. |
|
· |
The line utilization rate was 37.6% at December 31, 2013, as compared to 40.2% and 38.2% at September 30, 2013 and December 31, 2012, respectively. Line utilization decreased primarily due to the sizeable increase in credit commitments which occurred during the fourth quarter of 2013. |
2 | Page
Deposits and Customer Repurchase Agreements (Customer Funding)
|
· |
Customer Funding of $2.4 billion at December 31, 2013, decreased $15.9 million on a linked-quarter basis. From December 31, 2012, Customer Funding increased $160.4 million. |
|
· |
Noninterest-bearing demand (NIB) accounts decreased $28.5 million on a linked-quarter basis, but increased by $102.3 million from December 31, 2012. The percentage of NIB to total deposits was 42.2% at December 31, 2013, versus 40.4% at December 31, 2012. |
|
Quarter ended |
4Q13 change vs. |
|||||||||||||||
|
(in thousands) |
4Q13 |
3Q13 |
4Q12 |
3Q13 |
4Q12 |
|||||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
||||||||||||||||
|
Money market |
$ |
572,175 |
$ |
605,073 |
$ |
622,718 |
$ |
(32,898) |
(5.4)% |
$ |
(50,543) |
(8.1)% |
||||
|
Interest-bearing demand and NOW |
487,037 | 402,572 | 361,965 | 84,465 | 21.0% | 125,072 | 34.6% | |||||||||
|
Savings |
12,803 | 11,272 | 24,813 | 1,531 | 13.6% | (12,010) |
(48.4)% |
|||||||||
|
Certificates of deposits under $100 |
27,726 | 28,098 | 30,058 | (372) |
(1.3)% |
(2,332) |
(7.8)% |
|||||||||
|
Certificates of deposits $100 and over |
134,418 | 133,243 | 148,184 | 1,175 | 0.9% | (13,766) |
(9.3)% |
|||||||||
|
Reciprocal CDARS |
83,173 | 98,748 | 82,127 | (15,575) |
(15.8)% |
1,046 | 1.3% | |||||||||
|
Total interest-bearing deposits |
1,317,332 | 1,279,006 | 1,269,865 | 38,326 | 3.0% | 47,467 | 3.7% | |||||||||
|
Noninterest-bearing demand deposits |
961,705 | 990,187 | 859,395 | (28,482) |
(2.9)% |
102,310 | 11.9% | |||||||||
|
Customer repurchase agreements |
138,494 | 164,188 | 127,887 | (25,694) |
(15.6)% |
10,607 | 8.3% | |||||||||
|
Total deposits and customer repurchase agreements |
$ |
2,417,531 |
$ |
2,433,381 |
$ |
2,257,147 |
$ |
(15,850) |
(0.7)% |
$ |
160,384 | 7.1% | ||||
Allowance for Loan and Credit Losses (Allowance) and Credit Quality
|
· |
NPAs were $19.0 million at December 31, 2013, as compared to $30.3 million at December 31, 2012. |
|
· |
Classified loans decreased from the linked- and prior-year quarter ends by 4.6% and 42.8%, respectively. |
|
· |
Due to the reduction in problem loans, a negative provision for loan losses of $4.6 million was recorded during the fourth quarter of 2013. |
|
· |
The coverage of Allowance to nonperforming loans increased to 265.8% at December 31, 2013, from 237.8% at December 31, 2012. |
|
· |
The Allowance decreased $9.8 million to $37.1 million at December 31, 2013 from $46.9 million a year earlier. |
3 | Page
|
Quarter ended |
||||||||
|
(in thousands) |
4Q13 |
3Q13 |
4Q12 |
|||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
||||||||
|
Beginning allowance for loan losses |
$ |
41,810 |
$ |
43,232 |
$ |
46,437 | ||
|
Provision for loan losses |
(4,595) | (1,554) | (337) | |||||
|
Net recovery (charge-off) |
(165) | 132 | 766 | |||||
|
Ending allowance for loan losses |
$ |
37,050 |
$ |
41,810 |
$ |
46,866 | ||
|
Beginning allowance for credit losses |
$ |
- |
$ |
- |
$ |
35 | ||
|
Provision for credit losses |
- |
- |
(35) | |||||
|
Ending allowance for credit losses |
$ |
- |
$ |
- |
$ |
- |
||
|
Total provision for loan and credit losses |
$ |
(4,595) |
$ |
(1,554) |
$ |
(372) | ||
|
CREDIT QUALITY |
||||||||
|
Nonaccrual loans |
$ |
13,921 |
$ |
18,511 |
$ |
19,677 | ||
|
Loans 90 days or more past due and accruing interest |
19 |
- |
35 | |||||
|
Total nonperforming loans |
13,940 | 18,511 | 19,712 | |||||
|
OREO and repossessed assets |
5,097 | 6,960 | 10,577 | |||||
|
Total nonperforming assets |
$ |
19,037 |
$ |
25,471 |
$ |
30,289 | ||
|
Performing renegotiated loans |
$ |
29,683 |
$ |
28,814 |
$ |
43,321 | ||
|
Classified loans |
$ |
46,476 |
$ |
48,735 |
$ |
81,205 | ||
|
ASSET QUALITY MEASURES |
||||||||
|
Nonperforming assets to total assets |
0.68% | 0.91% | 1.14% | |||||
|
Nonperforming loans to total loans |
0.67% | 0.90% | 1.02% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
0.91% | 1.24% | 1.56% | |||||
|
Allowance for loan and credit losses to total loans |
1.78% | 2.04% | 2.43% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
265.78% | 225.87% | 237.75% | |||||
Shareholders’ Equity
|
· |
Total shareholders’ equity increased $8.1 million from September 30, 2013, to $281.1 million at December 31, 2013. |
|
· |
The tangible common equity to tangible assets ratio increased to 7.9% at December 31, 2013, compared to 7.6% at September 30, 2013*. |
|
· |
In January 2014, the Board of Directors of the Company increased the quarterly cash dividend to $0.035 per common share from $0.03 per share. The dividend will be paid on February 3, 2014, to shareholders of record on January 27, 2014. |
|
Quarter ended |
||||||||
|
(in thousands, except per share amounts) |
4Q13 |
3Q13 |
4Q12 |
|||||
|
EQUITY MEASURES |
||||||||
|
Common shareholders' equity |
$ |
223,747 |
$ |
215,599 |
$ |
199,713 | ||
|
Total shareholders' equity |
281,085 | 272,937 | 257,051 | |||||
|
Common shares outstanding at period end |
40,368 | 40,300 | 39,790 | |||||
|
Book value per common share |
$ |
5.54 |
$ |
5.35 |
$ |
5.02 | ||
|
Tangible book value per common share * |
$ |
5.47 |
$ |
5.28 |
$ |
4.93 | ||
|
Tangible common equity to tangible assets * |
7.90% | 7.58% | 7.40% | |||||
|
Tangible equity to tangible assets * |
9.95% | 9.62% | 9.56% | |||||
|
Tier 1 capital ratio |
** |
14.50% | 14.29% | |||||
|
Total-risk based capital ratio |
** |
15.76% | 16.51% | |||||
|
* See accompanying Reconciliation of Non-GAAP measures to GAAP |
||||||||
|
** Ratios unavailable at the time of release. |
||||||||
4 | Page
Net Interest Income and Margin
|
· |
Net interest income on a tax-equivalent basis was $25.5 million for the fourth quarter of 2013, an increase of $0.4 million from the prior linked-quarter. |
|
· |
The net interest margin compressed by two basis points on a linked-quarter basis to 3.85%. |
|
· |
Average earning assets of $2.6 billion increased $53.7 million on a linked-quarter basis. |
|
o |
From the third quarter of 2013, average net loans increased $18.8 million and average federal funds sold and interest-earning deposits increased $34.7 million, while average investments were relatively flat. |
|
· |
The yield on average earning assets decreased eight basis points to 4.06% on a linked-quarter basis. |
|
· |
The rate paid on average interest-bearing liabilities decreased 10 basis points on a linked-quarter basis to 0.56%. |
Noninterest Income
|
· |
As a percentage of total operating revenue, noninterest income was 25.0% for the fourth quarter of 2013 as compared to 24.1% for the third quarter of 2013 and 31.5% for the prior-year quarter. |
|
· |
The Company’s recurring fee-based business lines (Insurance & Wealth) recognized increases in noninterest income over the prior-year quarter, as well as year-over-year. |
|
· |
Investment Banking revenues were $1.0 million in the fourth quarter of 2013, a $0.3 million increase from the third quarter of 2013, but a $2.4 million decrease from the fourth quarter of 2012. Historically, the fourth quarter is typically a stronger quarter for the Investment Banking segment. |
|
Quarter ended |
4Q13 change vs. |
|||||||||||||||
|
(in thousands) |
4Q13 |
3Q13 |
4Q12 |
3Q13 |
4Q12 |
|||||||||||
|
Noninterest income: |
||||||||||||||||
|
Deposit service charges |
$ |
1,276 |
$ |
1,359 |
$ |
1,220 |
$ |
(83) |
(6.1)% |
$ |
56 | 4.6% | ||||
|
Investment advisory income |
1,364 | 1,306 | 1,109 | 58 | 4.4% | 255 | 23.0% | |||||||||
|
Insurance income |
2,617 | 2,862 | 2,341 | (245) |
(8.6)% |
276 | 11.8% | |||||||||
|
Investment banking income |
971 | 689 | 3,358 | 282 | 40.9% | (2,387) |
(71.1)% |
|||||||||
|
Other income |
2,024 | 1,543 | 2,644 | 481 | 31.2% | (620) |
(23.4)% |
|||||||||
|
Total noninterest income |
$ |
8,252 |
$ |
7,759 |
$ |
10,672 |
$ |
493 | 6.4% |
$ |
(2,420) |
(22.7)% |
||||
Operating Expenses
|
· |
During the fourth quarter of 2013, the Company recognized a net loss on OREO, securities and other assets of $2.1 million. The loss is attributed to a valuation adjustment on the Company’s single largest OREO property that was reappraised in the fourth quarter. The carrying value was written down from $5.4 million to $3.3 million. |
|
· |
Excluding this property, the Company recognized net gains of $1.4 million on the remainder of its OREO portfolio in 2013. |
|
Quarter ended |
4Q13 change vs. |
|||||||||||||||
|
(in thousands) |
4Q13 |
3Q13 |
4Q12 |
3Q13 |
4Q12 |
|||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits |
$ |
16,224 |
$ |
16,373 |
$ |
15,526 |
$ |
(149) |
(0.9)% |
$ |
698 | 4.5% | ||||
|
Stock-based compensation expense |
551 | 694 | 450 | (143) |
(20.6)% |
101 | 22.4% | |||||||||
|
Occupancy expenses, premises and equipment |
3,514 | 3,289 | 3,393 | 225 | 6.8% | 121 | 3.6% | |||||||||
|
Amortization of intangibles |
151 | 152 | 193 | (1) |
(0.7)% |
(42) |
(21.8)% |
|||||||||
|
Other operating expenses |
4,077 | 3,625 | 4,331 | 452 | 12.5% | (254) |
(5.9)% |
|||||||||
|
(Gain) loss on OREO, repossessed assets and other |
2,100 | (347) | (242) | 2,447 |
(705.2)% |
2,342 |
(967.8)% |
|||||||||
|
(Gain) loss on investment securities |
22 | 28 | (443) | (6) |
(21.4)% |
465 |
(105.0)% |
|||||||||
|
Total noninterest expense |
$ |
26,639 |
$ |
23,814 |
$ |
23,208 |
$ |
2,825 | 11.9% |
$ |
3,431 | 14.8% | ||||
5 | Page
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, January 24, 2014, at 9:00 am MST with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=97473 or by telephone at 877.493.9121, (conference ID # 27299623). 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 $2.8 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. |
6 | Page
|
· |
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.
7 | Page
|
CoBiz Financial Inc. |
|||||||||||
|
December 31, 2013 |
|||||||||||
|
(unaudited) |
|||||||||||
|
Three months ended December 31, |
Year ended December 31, |
||||||||||
|
(in thousands, except per share amounts) |
2013 |
2012 |
2013 |
2012 |
|||||||
|
INCOME STATEMENT DATA |
|||||||||||
|
Interest income |
$ |
26,954 |
$ |
26,243 |
$ |
106,127 |
$ |
106,128 | |||
|
Interest expense |
2,178 | 3,039 | 10,426 | 12,750 | |||||||
|
NET INTEREST INCOME BEFORE PROVISION |
24,776 | 23,204 | 95,701 | 93,378 | |||||||
|
Provision for loan losses |
(4,595) | (337) | (8,804) | (4,733) | |||||||
|
NET INTEREST INCOME AFTER PROVISION |
29,371 | 23,541 | 104,505 | 98,111 | |||||||
|
Noninterest income |
8,252 | 10,672 | 30,912 | 30,559 | |||||||
|
Noninterest expense |
26,639 | 23,208 | 94,628 | 91,166 | |||||||
|
INCOME BEFORE INCOME TAXES |
10,984 | 11,005 | 40,789 | 37,504 | |||||||
|
Provision for income taxes |
3,709 | 3,927 | 13,351 | 13,258 | |||||||
|
NET INCOME FROM CONTINUING OPERATIONS |
7,275 | 7,078 | 27,438 | 24,246 | |||||||
|
Income from discontinued operations, net of tax |
- |
453 | 173 | 324 | |||||||
|
NET INCOME |
$ |
7,275 |
$ |
7,531 |
$ |
27,611 |
$ |
24,570 | |||
|
Preferred stock dividends |
(143) | (664) | (944) | (2,815) | |||||||
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ |
7,132 |
$ |
6,867 |
$ |
26,667 |
$ |
21,755 | |||
|
EARNINGS PER COMMON SHARE |
|||||||||||
|
BASIC |
$ |
0.18 |
$ |
0.17 |
$ |
0.66 |
$ |
0.55 | |||
|
DILUTED |
$ |
0.18 |
$ |
0.17 |
$ |
0.66 |
$ |
0.55 | |||
|
EQUITY MEASURES |
|||||||||||
|
Common shares outstanding at period end (in thousands) |
40,368 | 39,790 | |||||||||
|
Book value per common share |
$ |
5.54 |
$ |
5.02 | |||||||
|
Tangible book value per common share * |
$ |
5.47 |
$ |
4.93 | |||||||
|
Tangible common equity to tangible assets * |
7.90% | 7.40% | |||||||||
|
Tangible equity to tangible assets * |
9.95% | 9.56% | |||||||||
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP |
|||||||||||
|
PERIOD END BALANCES |
|||||||||||
|
Total assets |
$ |
2,800,691 |
$ |
2,653,641 | |||||||
|
Investments |
556,796 | 571,665 | |||||||||
|
Loans |
2,084,359 | 1,926,432 | |||||||||
|
Intangible assets |
2,798 | 3,573 | |||||||||
|
Deposits |
2,279,037 | 2,129,260 | |||||||||
|
Subordinated debentures |
72,166 | 93,150 | |||||||||
|
Common shareholders' equity |
223,747 | 199,713 | |||||||||
|
Total shareholders' equity |
281,085 | 257,051 | |||||||||
|
Interest-earning assets |
2,626,773 | 2,473,847 | |||||||||
|
Interest-bearing liabilities |
1,527,992 | 1,490,901 | |||||||||
|
BALANCE SHEET AVERAGES |
|||||||||||
|
Average assets |
$ |
2,702,211 |
$ |
2,508,222 | |||||||
|
Average investments |
567,256 | 614,468 | |||||||||
|
Average loans |
1,991,251 | 1,743,473 | |||||||||
|
Average deposits |
2,118,910 | 1,955,758 | |||||||||
|
Average subordinated debentures |
85,216 | 93,150 | |||||||||
|
Average shareholders' equity |
268,342 | 242,104 | |||||||||
|
Average interest-earning assets |
2,540,360 | 2,337,889 | |||||||||
|
Average interest-bearing liabilities |
1,523,103 | 1,468,129 | |||||||||
8 | Page
|
CoBiz Financial Inc. |
||||||||||||
|
December 31, 2013 |
||||||||||||
|
(unaudited) |
||||||||||||
|
Three months ended December 31, |
Year ended December 31, |
|||||||||||
|
(in thousands) |
2013 |
2012 |
2013 |
2012 |
||||||||
|
PROFITABILITY MEASURES |
||||||||||||
|
Net interest margin |
3.85% | 3.89% | 3.88% | 4.08% | ||||||||
|
Efficiency ratio |
74.23% | 70.30% | 74.06% | 74.00% | ||||||||
|
Return on average assets |
1.03% | 1.15% | 1.02% | 0.98% | ||||||||
|
Return on average shareholders' equity |
10.42% | 11.77% | 10.29% | 10.15% | ||||||||
|
Noninterest income as a percentage of operating revenues |
24.98% | 31.50% | 24.41% | 24.66% | ||||||||
|
CREDIT QUALITY |
||||||||||||
|
Nonperforming loans |
||||||||||||
|
Nonaccrual loans |
$ |
13,921 |
$ |
19,677 | ||||||||
|
Loans 90 days or more past due and accruing interest |
19 | 35 | ||||||||||
|
Total nonperforming loans |
13,940 | 19,712 | ||||||||||
|
OREO & repossessed assets |
5,097 | 10,577 | ||||||||||
|
Total nonperforming assets |
$ |
19,037 |
$ |
30,289 | ||||||||
|
Performing renegotiated loans |
$ |
29,683 |
$ |
43,321 | ||||||||
|
Classified loans |
$ |
46,476 |
$ |
81,205 | ||||||||
|
Charge-offs |
$ |
(4,591) |
$ |
(8,600) | ||||||||
|
Recoveries |
3,579 | 4,570 | ||||||||||
|
Net charge-offs |
$ |
(1,012) |
$ |
(4,030) | ||||||||
|
Nonperforming assets to total assets |
0.68% | 1.14% | ||||||||||
|
Nonperforming loans to total loans |
0.67% | 1.02% | ||||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.91% | 1.56% | ||||||||||
|
Allowance for loan and credit losses to total loans |
1.78% | 2.43% | ||||||||||
|
Allowance for loan and credit losses to nonperforming loans |
265.78% | 237.75% | ||||||||||
|
Total |
NPAs as a |
||||||||||||
|
NONPERFORMING ASSETS BY MARKET |
Colorado |
Arizona |
Total |
in Category |
% |
||||||||
|
Commercial |
$ |
963 |
$ |
386 |
$ |
1,349 |
$ |
824,453 | 0.16% | ||||
|
Real estate - mortgage |
580 | 9,924 | 10,504 | 900,864 | 1.17% | ||||||||
|
Land acquisition & development |
1,067 | 919 | 1,986 | 45,470 | 4.37% | ||||||||
|
Real estate - construction |
- |
- |
- |
82,482 | 0.00% | ||||||||
|
Consumer |
101 |
- |
101 | 181,056 | 0.06% | ||||||||
|
Other loans |
- |
- |
- |
50,034 | 0.00% | ||||||||
|
OREO & repossessed assets |
3,769 | 1,328 | 5,097 | 5,097 |
- |
||||||||
|
NPAs |
$ |
6,480 |
$ |
12,557 |
$ |
19,037 |
$ |
2,089,456 | 0.91% | ||||
|
Total loans |
$ |
1,521,070 |
$ |
563,289 |
$ |
2,084,359 | |||||||
|
Total loans and OREO |
1,524,839 | 564,617 | 2,089,456 | ||||||||||
|
Nonperforming loans to loans |
0.18% | 1.99% | 0.67% | ||||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.42% | 2.22% | 0.91% | ||||||||||
9 | Page
|
CoBiz Financial Inc. |
||||||||||||||
|
December 31, 2013 |
||||||||||||||
|
(unaudited) |
||||||||||||||
|
Three months ended |
||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||
|
(in thousands) |
2013 |
2013 |
2013 |
2013 |
2012 |
|||||||||
|
COMMERCIAL BANKING |
||||||||||||||
|
Income Statement |
||||||||||||||
|
Total interest income |
$ |
26,839 |
$ |
26,854 |
$ |
26,068 |
$ |
25,958 |
$ |
26,158 | ||||
|
Total interest expense |
1,160 | 1,281 | 1,330 | 1,424 | 1,577 | |||||||||
|
Net interest income |
25,679 | 25,573 | 24,738 | 24,534 | 24,581 | |||||||||
|
Provision for loan losses |
(4,028) | (1,449) | (822) | (1,031) | (18) | |||||||||
|
Net interest income (loss) after provision |
29,707 | 27,022 | 25,560 | 25,565 | 24,599 | |||||||||
|
Noninterest income |
3,195 | 2,795 | 3,236 | 2,681 | 3,756 | |||||||||
|
Noninterest expense |
9,521 | 8,612 | 8,917 | 8,215 | 8,631 | |||||||||
|
Operating income |
23,381 | 21,205 | 19,879 | 20,031 | 19,724 | |||||||||
|
Amortization of intangibles |
- |
- |
- |
- |
- |
|||||||||
|
Provision (benefit) for income taxes |
8,359 | 7,402 | 7,139 | 7,149 | 7,226 | |||||||||
|
Net income (loss) before management |
||||||||||||||
|
fees and overhead allocations |
$ |
15,022 |
$ |
13,803 |
$ |
12,740 |
$ |
12,882 |
$ |
12,498 | ||||
|
Management fees and overhead |
||||||||||||||
|
allocations, net of tax |
6,202 | 5,592 | 5,042 | 5,477 | 4,806 | |||||||||
|
Net income (loss) |
$ |
8,820 |
$ |
8,211 |
$ |
7,698 |
$ |
7,405 |
$ |
7,692 | ||||
|
INVESTMENT BANKING |
||||||||||||||
|
Income Statement |
||||||||||||||
|
Total interest income |
$ |
1 |
$ |
1 |
$ |
1 |
$ |
1 |
$ |
1 | ||||
|
Total interest expense |
- |
- |
- |
- |
- |
|||||||||
|
Net interest income |
1 | 1 | 1 | 1 | 1 | |||||||||
|
Provision for loan losses |
- |
- |
- |
- |
- |
|||||||||
|
Net interest income (loss) after provision |
1 | 1 | 1 | 1 | 1 | |||||||||
|
Noninterest income |
970 | 690 | 576 | 66 | 3,358 | |||||||||
|
Noninterest expense |
971 | 992 | 916 | 845 | 1,630 | |||||||||
|
Operating income |
- |
(301) | (339) | (778) | 1,729 | |||||||||
|
Amortization of intangibles |
- |
- |
- |
- |
- |
|||||||||
|
Provision (benefit) for income taxes |
- |
(118) | (122) | (314) | 679 | |||||||||
|
Net income (loss) before management |
||||||||||||||
|
fees and overhead allocations |
$ |
- |
$ |
(183) |
$ |
(217) |
$ |
(464) |
$ |
1,050 | ||||
|
Management fees and overhead |
||||||||||||||
|
allocations, net of tax |
35 | 38 | 42 | 40 | 36 | |||||||||
|
Net income (loss) |
$ |
(35) |
$ |
(221) |
$ |
(259) |
$ |
(504) |
$ |
1,014 | ||||
|
WEALTH MANAGEMENT |
||||||||||||||
|
Income Statement |
||||||||||||||
|
Total interest income |
$ |
- |
$ |
- |
$ |
- |
$ |
1 |
$ |
- |
||||
|
Total interest expense |
12 | 14 | 13 | 10 | 8 | |||||||||
|
Net interest income |
(12) | (14) | (13) | (9) | (8) | |||||||||
|
Provision for loan losses |
- |
- |
- |
- |
- |
|||||||||
|
Net interest income (loss) after provision |
(12) | (14) | (13) | (9) | (8) | |||||||||
|
Noninterest income |
1,360 | 1,306 | 1,299 | 1,112 | 1,109 | |||||||||
|
Noninterest expense |
1,028 | 1,041 | 1,074 | 1,059 | 1,372 | |||||||||
|
Operating income |
320 | 251 | 212 | 44 | (271) | |||||||||
|
Amortization of intangibles |
21 | 22 | 21 | 22 | 22 | |||||||||
|
Provision (benefit) for income taxes |
117 | 94 | 74 | 15 | (112) | |||||||||
|
Net income (loss) from continuing operations |
182 | 135 | 117 | 7 | (181) | |||||||||
|
Income from discontinued operations, net of tax |
- |
- |
- |
173 | 453 | |||||||||
|
Net income (loss) before management |
||||||||||||||
|
fees and overhead allocations |
$ |
182 |
$ |
135 |
$ |
117 |
$ |
180 |
$ |
272 | ||||
|
Management fees and overhead |
||||||||||||||
|
allocations, net of tax |
71 | 82 | 97 | 105 | 165 | |||||||||
|
Net income (loss) |
$ |
111 |
$ |
53 |
$ |
20 |
$ |
75 |
$ |
107 | ||||
10 | Page
|
CoBiz Financial Inc. |
|||||||||||||||
|
December 31, 2013 |
|||||||||||||||
|
(unaudited) |
|||||||||||||||
|
Three months ended |
|||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||
|
(in thousands) |
2013 |
2013 |
2013 |
2013 |
2012 |
||||||||||
|
INSURANCE |
|||||||||||||||
|
Income Statement |
|||||||||||||||
|
Total interest income |
$ |
1 |
$ |
2 |
$ |
2 |
$ |
1 |
$ |
1 | |||||
|
Total interest expense |
1 | 1 | 5 | 5 | 2 | ||||||||||
|
Net interest income |
- |
1 | (3) | (4) | (1) | ||||||||||
|
Provision for loan losses |
- |
- |
- |
- |
- |
||||||||||
|
Net interest income (loss) after provision |
- |
1 | (3) | (4) | (1) | ||||||||||
|
Noninterest income |
2,617 | 2,862 | 3,210 | 2,510 | 2,341 | ||||||||||
|
Noninterest expense |
2,437 | 2,311 | 2,573 | 2,315 | 2,276 | ||||||||||
|
Operating income |
180 | 552 | 634 | 191 | 64 | ||||||||||
|
Amortization of intangibles |
130 | 130 | 138 | 178 | 172 | ||||||||||
|
Provision (benefit) for income taxes |
24 | 165 | 197 | 79 | (40) | ||||||||||
|
Net income (loss) before management |
|||||||||||||||
|
fees and overhead allocations |
$ |
26 |
$ |
257 |
$ |
299 |
$ |
(66) |
$ |
(68) | |||||
|
Management fees and overhead |
|||||||||||||||
|
allocations, net of tax |
101 | 109 | 123 | 116 | 92 | ||||||||||
|
Net income (loss) |
$ |
(75) |
$ |
148 |
$ |
176 |
$ |
(182) |
$ |
(160) | |||||
|
CORPORATE SUPPORT AND OTHER |
|||||||||||||||
|
Income Statement |
|||||||||||||||
|
Total interest income |
$ |
113 |
$ |
104 |
$ |
89 |
$ |
91 |
$ |
83 | |||||
|
Total interest expense |
1,005 | 1,290 | 1,447 | 1,428 | 1,452 | ||||||||||
|
Net interest income |
(892) | (1,186) | (1,358) | (1,337) | (1,369) | ||||||||||
|
Provision for loan losses |
(567) | (105) | (243) | (559) | (319) | ||||||||||
|
Net interest income (loss) after provision |
(325) | (1,081) | (1,115) | (778) | (1,050) | ||||||||||
|
Noninterest income |
110 | 106 | 104 | 107 | 108 | ||||||||||
|
Noninterest expense |
12,531 | 10,706 | 7,955 | 9,947 | 9,105 | ||||||||||
|
Operating income |
(12,746) | (11,681) | (8,966) | (10,618) | (10,047) | ||||||||||
|
Amortization of intangibles |
- |
- |
- |
- |
- |
||||||||||
|
Provision (benefit) for income taxes |
(4,791) | (4,694) | (3,289) | (4,135) | (3,826) | ||||||||||
|
Net income (loss) before management |
|||||||||||||||
|
fees and overhead allocations |
$ |
(7,955) |
$ |
(6,987) |
$ |
(5,677) |
$ |
(6,483) |
$ |
(6,221) | |||||
|
Management fees and overhead |
|||||||||||||||
|
allocations, net of tax |
(6,409) | (5,821) | (5,304) | (5,738) | (5,099) | ||||||||||
|
Net income (loss) |
$ |
(1,546) |
$ |
(1,166) |
$ |
(373) |
$ |
(745) |
$ |
(1,122) | |||||
|
CONSOLIDATED |
|||||||||||||||
|
Income Statement |
|||||||||||||||
|
Total interest income |
$ |
26,954 |
$ |
26,961 |
$ |
26,160 |
$ |
26,052 |
$ |
26,243 | |||||
|
Total interest expense |
2,178 | 2,586 | 2,795 | 2,867 | 3,039 | ||||||||||
|
Net interest income |
24,776 | 24,375 | 23,365 | 23,185 | 23,204 | ||||||||||
|
Provision for loan losses |
(4,595) | (1,554) | (1,065) | (1,590) | (337) | ||||||||||
|
Net interest income (loss) after provision |
29,371 | 25,929 | 24,430 | 24,775 | 23,541 | ||||||||||
|
Noninterest income |
8,252 | 7,759 | 8,425 | 6,476 | 10,672 | ||||||||||
|
Noninterest expense |
26,488 | 23,662 | 21,435 | 22,381 | 23,014 | ||||||||||
|
Operating income |
11,135 | 10,026 | 11,420 | 8,870 | 11,199 | ||||||||||
|
Amortization of intangibles |
151 | 152 | 159 | 200 | 194 | ||||||||||
|
Provision (benefit) for income taxes |
3,709 | 2,849 | 3,999 | 2,794 | 3,927 | ||||||||||
|
Net income (loss) from continuing operations |
7,275 | 7,025 | 7,262 | 5,876 | 7,078 | ||||||||||
|
Income from discontinued operations, net of tax |
- |
- |
- |
173 | 453 | ||||||||||
|
Net income (loss) before management |
|||||||||||||||
|
fees and overhead allocations |
$ |
7,275 |
$ |
7,025 |
$ |
7,262 |
$ |
6,049 |
$ |
7,531 | |||||
|
Management fees and overhead |
|||||||||||||||
|
allocations, net of tax |
- |
- |
- |
- |
- |
||||||||||
|
Net income (loss) |
$ |
7,275 |
$ |
7,025 |
$ |
7,262 |
$ |
6,049 |
$ |
7,531 | |||||
11 | Page
|
CoBiz Financial Inc. |
||||||||||||||
|
December 31, 2013 |
||||||||||||||
|
(unaudited) |
||||||||||||||
|
Three months ended |
||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||
|
(in thousands, except per share amounts) |
2013 |
2013 |
2013 |
2013 |
2012 |
|||||||||
|
Interest income |
$ |
26,954 |
$ |
26,961 |
$ |
26,160 |
$ |
26,052 |
$ |
26,243 | ||||
|
Interest expense |
2,178 | 2,586 | 2,795 | 2,867 | 3,039 | |||||||||
|
Net interest income before provision |
24,776 | 24,375 | 23,365 | 23,185 | 23,204 | |||||||||
|
Provision for loan losses |
(4,595) | (1,554) | (1,065) | (1,590) | (337) | |||||||||
|
Net interest income after provision |
29,371 | 25,929 | 24,430 | 24,775 | 23,541 | |||||||||
|
Noninterest income: |
||||||||||||||
|
Deposit service charges |
$ |
1,276 |
$ |
1,359 |
$ |
1,352 |
$ |
1,328 |
$ |
1,220 | ||||
|
Investment advisory income |
1,364 | 1,306 | 1,295 | 1,112 | 1,109 | |||||||||
|
Insurance income |
2,617 | 2,862 | 3,210 | 2,510 | 2,341 | |||||||||
|
Investment banking income |
971 | 689 | 576 | 66 | 3,358 | |||||||||
|
Other income |
2,024 | 1,543 | 1,992 | 1,460 | 2,644 | |||||||||
|
Total noninterest income |
8,252 | 7,759 | 8,425 | 6,476 | 10,672 | |||||||||
|
Noninterest expense: |
||||||||||||||
|
Salaries and employee benefits |
$ |
16,224 |
$ |
16,373 |
$ |
14,720 |
$ |
14,484 |
$ |
15,526 | ||||
|
Stock-based compensation expense |
551 | 694 | 746 | 748 | 450 | |||||||||
|
Occupancy expenses, premises and equipment |
3,514 | 3,289 | 3,155 | 3,304 | 3,393 | |||||||||
|
Amortization of intangibles |
151 | 152 | 159 | 200 | 193 | |||||||||
|
Other operating expenses |
4,077 | 3,625 | 3,853 | 3,926 | 4,331 | |||||||||
|
Net (gain) loss on securities, other assets and OREO |
2,122 | (319) | (1,039) | (81) | (685) | |||||||||
|
Total noninterest expense |
26,639 | 23,814 | 21,594 | 22,581 | 23,208 | |||||||||
|
Net income before income taxes |
10,984 | 9,874 | 11,261 | 8,670 | 11,005 | |||||||||
|
Provision for income taxes |
3,709 | 2,849 | 3,999 | 2,794 | 3,927 | |||||||||
|
Net income from continuing operations |
7,275 | 7,025 | 7,262 | 5,876 | 7,078 | |||||||||
|
Income from discontinued operations, net of tax |
- |
- |
- |
173 | 453 | |||||||||
|
Net income |
$ |
7,275 |
$ |
7,025 |
$ |
7,262 |
$ |
6,049 |
$ |
7,531 | ||||
|
Preferred stock dividends |
(143) | (144) | (143) | (514) | (664) | |||||||||
|
Net income available to common shareholders |
$ |
7,132 |
$ |
6,881 |
$ |
7,119 |
$ |
5,535 |
$ |
6,867 | ||||
|
Earnings per common share |
||||||||||||||
|
Basic |
$ |
0.18 |
$ |
0.17 |
$ |
0.18 |
$ |
0.14 |
$ |
0.17 | ||||
|
Diluted |
$ |
0.18 |
$ |
0.17 |
$ |
0.18 |
$ |
0.14 |
$ |
0.17 | ||||
|
PROFITABILITY MEASURES |
||||||||||||||
|
Net interest margin |
3.85% | 3.87% | 3.85% | 3.94% | 3.89% | |||||||||
|
Efficiency ratio |
74.23% | 75.10% | 71.20% | 75.80% | 70.30% | |||||||||
|
Return on average assets |
1.03% | 1.02% | 1.09% | 0.94% | 1.15% | |||||||||
|
Return on average shareholders' equity |
10.42% | 10.34% | 10.93% | 9.43% | 11.77% | |||||||||
|
Noninterest income as a percentage of operating revenues |
24.98% | 24.15% | 26.50% | 21.83% | 31.50% | |||||||||
|
EQUITY MEASURES |
||||||||||||||
|
Common shares outstanding at period end (in thousands) |
40,368 | 40,300 | 40,282 | 40,197 | 39,790 | |||||||||
|
Diluted weighted average common shares outstanding (in thousands) |
39,831 | 39,738 | 39,580 | 39,362 | 39,164 | |||||||||
|
Book value per common share |
$ |
5.54 |
$ |
5.35 |
$ |
5.20 |
$ |
5.13 |
$ |
5.02 | ||||
|
Tangible book value per common share * |
$ |
5.47 |
$ |
5.28 |
$ |
5.12 |
$ |
5.05 |
$ |
4.93 | ||||
|
Tangible common equity to tangible assets * |
7.90% | 7.58% | 7.54% | 7.75% | 7.40% | |||||||||
|
Tangible equity to tangible assets * |
9.95% | 9.62% | 9.63% | 9.94% | 9.56% | |||||||||
|
Tier 1 capital ratio |
** |
14.50% | 14.52% | 14.72% | 14.29% | |||||||||
|
Total risk based capital ratio |
** |
15.76% | 16.70% | 16.93% | 16.51% | |||||||||
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP |
||||||||||||||
|
** Ratios unavailable at the time of release. |
||||||||||||||
12 | Page
|
|
|||||||||||||||
|
CoBiz Financial Inc. |
|||||||||||||||
|
December 31, 2013 |
|||||||||||||||
|
(unaudited) |
|||||||||||||||
|
At |
|||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||
|
(in thousands) |
2013 |
2013 |
2013 |
2013 |
2012 |
||||||||||
|
PERIOD END BALANCES |
|||||||||||||||
|
Total assets |
$ |
2,800,691 |
$ |
2,807,955 |
$ |
2,738,749 |
$ |
2,620,512 |
$ |
2,653,641 | |||||
|
Investments |
556,796 | 582,889 | 576,045 | 559,607 | 571,665 | ||||||||||
|
Loans |
2,084,359 | 2,048,866 | 2,017,844 | 1,925,806 | 1,926,432 | ||||||||||
|
Intangible assets |
2,798 | 2,960 | 3,112 | 3,373 | 3,573 | ||||||||||
|
Deposits |
2,279,037 | 2,269,193 | 2,035,971 | 2,065,104 | 2,129,260 | ||||||||||
|
Subordinated debentures |
72,166 | 72,166 | 93,150 | 93,150 | 93,150 | ||||||||||
|
Common shareholders' equity |
223,747 | 215,599 | 209,341 | 206,179 | 199,713 | ||||||||||
|
Total shareholders' equity |
281,085 | 272,937 | 266,679 | 263,517 | 257,051 | ||||||||||
|
Interest-earning assets |
2,626,773 | 2,625,334 | 2,564,833 | 2,449,800 | 2,473,847 | ||||||||||
|
Interest-bearing liabilities |
1,527,992 | 1,515,360 | 1,552,129 | 1,487,799 | 1,490,901 | ||||||||||
|
LOANS |
|||||||||||||||
|
Commercial |
$ |
824,453 |
$ |
815,424 |
$ |
813,186 |
$ |
742,239 |
$ |
729,442 | |||||
|
Real estate - mortgage |
900,864 | 890,492 | 884,579 | 889,171 | 880,377 | ||||||||||
|
Land acquisition & development |
45,470 | 43,359 | 36,795 | 38,054 | 53,562 | ||||||||||
|
Real estate - construction |
82,482 | 61,787 | 58,332 | 46,346 | 67,022 | ||||||||||
|
Consumer |
181,056 | 180,243 | 168,606 | 157,973 | 149,638 | ||||||||||
|
Other |
50,034 | 57,561 | 56,346 | 52,023 | 46,391 | ||||||||||
|
Gross loans |
2,084,359 | 2,048,866 | 2,017,844 | 1,925,806 | 1,926,432 | ||||||||||
|
Less allowance for loan losses |
(37,050) | (41,810) | (43,232) | (44,874) | (46,866) | ||||||||||
|
Total net loans |
$ |
2,047,309 |
$ |
2,007,056 |
$ |
1,974,612 |
$ |
1,880,932 |
$ |
1,879,566 | |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|||||||||||||||
|
Money market |
$ |
572,175 |
$ |
605,073 |
$ |
561,079 |
$ |
600,580 |
$ |
622,718 | |||||
|
Interest-bearing demand and NOW |
487,037 | 402,572 | 337,294 | 363,709 | 361,965 | ||||||||||
|
Savings |
12,803 | 11,272 | 11,612 | 11,429 | 24,813 | ||||||||||
|
Certificates of deposits under $100 |
27,726 | 28,098 | 29,359 | 29,889 | 30,058 | ||||||||||
|
Certificates of deposits $100 and over |
134,418 | 133,243 | 136,077 | 143,529 | 148,184 | ||||||||||
|
Reciprocal CDARS |
83,173 | 98,748 | 95,157 | 81,631 | 82,127 | ||||||||||
|
Total interest-bearing deposits |
1,317,332 | 1,279,006 | 1,170,578 | 1,230,767 | 1,269,865 | ||||||||||
|
Noninterest-bearing demand deposits |
961,705 | 990,187 | 865,393 | 834,337 | 859,395 | ||||||||||
|
Customer repurchase agreements |
138,494 | 164,188 | 133,402 | 124,882 | 127,887 | ||||||||||
|
Total deposits and customer repurchase agreements |
$ |
2,417,531 |
$ |
2,433,381 |
$ |
2,169,373 |
$ |
2,189,986 |
$ |
2,257,147 | |||||
|
BALANCE SHEET AVERAGES |
|||||||||||||||
|
Average assets |
$ |
2,792,837 |
$ |
2,734,624 |
$ |
2,662,914 |
$ |
2,616,170 |
$ |
2,600,083 | |||||
|
Average investments |
573,544 | 573,375 | 558,464 | 563,461 | 586,482 | ||||||||||
|
Average loans |
2,048,592 | 2,031,282 | 1,968,674 | 1,914,542 | 1,831,430 | ||||||||||
|
Average deposits |
2,253,875 | 2,129,108 | 2,030,209 | 2,060,274 | 2,062,306 | ||||||||||
|
Average subordinated debentures |
72,166 | 82,658 | 93,150 | 93,150 | 93,150 | ||||||||||
|
Average shareholders' equity |
277,118 | 269,494 | 266,526 | 260,030 | 254,455 | ||||||||||
|
Average interest-earning assets |
2,631,604 | 2,577,907 | 2,501,630 | 2,447,867 | 2,430,196 | ||||||||||
|
Average interest-bearing liabilities |
1,525,400 | 1,536,699 | 1,535,232 | 1,494,590 | 1,477,566 | ||||||||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|||||||||||||||
|
Beginning allowance for loan losses |
$ |
41,810 |
$ |
43,232 |
$ |
44,874 |
$ |
46,866 |
$ |
46,437 | |||||
|
Provision for loan losses |
(4,595) | (1,554) | (1,065) | (1,590) | (337) | ||||||||||
|
Net recovery (charge-off) |
(165) | 132 | (577) | (402) | 766 | ||||||||||
|
Ending allowance for loan losses |
$ |
37,050 |
$ |
41,810 |
$ |
43,232 |
$ |
44,874 |
$ |
46,866 | |||||
|
Beginning allowance for credit losses |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
35 | |||||
|
Provision for credit losses |
- |
- |
- |
- |
(35) | ||||||||||
|
Ending allowance for credit losses |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||
|
Total provision for loan and credit losses |
$ |
(4,595) |
$ |
(1,554) |
$ |
(1,065) |
$ |
(1,590) |
$ |
(372) | |||||
13 | Page
|
CREDIT QUALITY |
||||||||||||||
|
Nonperforming loans |
||||||||||||||
|
Nonaccrual loans |
$ |
13,921 |
$ |
18,511 |
$ |
25,634 |
$ |
30,420 |
$ |
19,677 | ||||
|
Loans 90 days or more past due and accruing interest |
19 |
- |
- |
407 | 35 | |||||||||
|
Total nonperforming loans |
13,940 | 18,511 | 25,634 | 30,827 | 19,712 | |||||||||
|
OREO and repossessed assets |
5,097 | 6,960 | 7,185 | 8,420 | 10,577 | |||||||||
|
Total nonperforming assets |
$ |
19,037 |
$ |
25,471 |
$ |
32,819 |
$ |
39,247 |
$ |
30,289 | ||||
|
Performing renegotiated loans |
$ |
29,683 |
$ |
28,814 |
$ |
29,623 |
$ |
31,619 |
$ |
43,321 | ||||
|
Classified loans |
$ |
46,476 |
$ |
48,735 |
$ |
64,300 |
$ |
67,677 |
$ |
81,205 | ||||
|
ASSET QUALITY MEASURES |
||||||||||||||
|
Nonperforming assets to total assets |
0.68% | 0.91% | 1.20% | 1.50% | 1.14% | |||||||||
|
Nonperforming loans to total loans |
0.67% | 0.90% | 1.27% | 1.60% | 1.02% | |||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.91% | 1.24% | 1.62% | 2.03% | 1.56% | |||||||||
|
Allowance for loan and credit losses to total loans |
1.78% | 2.04% | 2.14% | 2.33% | 2.43% | |||||||||
|
Allowance for loan and credit losses to nonperforming loans |
265.78% | 225.87% | 168.65% | 145.57% | 237.75% |
14 | Page
|
CoBiz Financial Inc. |
||||||||||||||||||||
|
December 31, 2013 |
||||||||||||||||||||
|
(unaudited) |
||||||||||||||||||||
|
For the three months ended, |
||||||||||||||||||||
|
December 31, 2013 |
September 30, 2013 |
December 31, 2012 |
||||||||||||||||||
|
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 |
$ |
51,196 |
$ |
44 | 0.34% |
$ |
16,478 |
$ |
23 | 0.55% |
$ |
59,059 |
$ |
38 | 0.25% | |||||
|
Investment securities |
573,544 | 4,375 | 3.05% | 573,375 | 4,116 | 2.87% | 586,482 | 4,276 | 2.92% | |||||||||||
|
Loans |
2,048,592 | 23,292 | 4.45% | 2,031,282 | 23,564 | 4.54% | 1,831,430 | 22,496 | 4.81% | |||||||||||
|
Allowance for loan losses |
(41,728) | (43,228) | (46,775) | |||||||||||||||||
|
Total interest-earning assets |
$ |
2,631,604 |
$ |
27,711 | 4.06% |
$ |
2,577,907 |
$ |
27,703 | 4.14% |
$ |
2,430,196 |
$ |
26,810 | 4.24% | |||||
|
Noninterest-earning assets |
161,233 | 156,717 | 169,887 | |||||||||||||||||
|
Total assets |
$ |
2,792,837 |
$ |
2,734,624 |
$ |
2,600,083 | ||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Deposits |
||||||||||||||||||||
|
Money market |
$ |
608,818 |
$ |
532 | 0.35% |
$ |
598,756 |
$ |
630 | 0.42% |
$ |
612,261 |
$ |
746 | 0.48% | |||||
|
Interest-bearing demand and NOW |
418,181 | 227 | 0.22% | 367,923 | 190 | 0.20% | 339,609 | 253 | 0.30% | |||||||||||
|
Savings |
11,712 | 2 | 0.07% | 11,789 | 1 | 0.03% | 12,860 | 3 | 0.09% | |||||||||||
|
Certificates of deposit |
||||||||||||||||||||
|
Reciprocal |
89,793 | 77 | 0.34% | 95,401 | 86 | 0.36% | 84,840 | 104 | 0.49% | |||||||||||
|
Under $100 |
27,825 | 32 | 0.46% | 28,457 | 34 | 0.47% | 30,442 | 44 | 0.58% | |||||||||||
|
$100 and over |
133,596 | 184 | 0.55% | 130,956 | 189 | 0.57% | 154,821 | 270 | 0.69% | |||||||||||
|
Total interest-bearing deposits |
$ |
1,289,925 |
$ |
1,054 | 0.32% |
$ |
1,233,282 |
$ |
1,130 | 0.36% |
$ |
1,234,833 |
$ |
1,420 | 0.46% | |||||
|
Other borrowings |
||||||||||||||||||||
|
Securities sold under agreements to repurchase |
163,284 | 85 | 0.20% | 160,514 | 86 | 0.21% | 147,773 | 100 | 0.26% | |||||||||||
|
Other short-term borrowings |
25 |
- |
0.00% | 60,245 | 34 | 0.22% | 1,810 | 1 | 0.22% | |||||||||||
|
Long term-debt |
72,166 | 1,039 | 5.63% | 82,658 | 1,336 | 6.32% | 93,150 | 1,518 | 6.38% | |||||||||||
|
Total interest-bearing liabilities |
$ |
1,525,400 |
$ |
2,178 | 0.56% |
$ |
1,536,699 |
$ |
2,586 | 0.66% |
$ |
1,477,566 |
$ |
3,039 | 0.81% | |||||
|
Noninterest-bearing demand accounts |
963,950 | 895,826 | 827,473 | |||||||||||||||||
|
Total deposits and interest-bearing liabilities |
2,489,350 | 2,432,525 | 2,305,039 | |||||||||||||||||
|
Other noninterest-bearing liabilities |
26,369 | 32,605 | 40,589 | |||||||||||||||||
|
Total liabilities |
2,515,719 | 2,465,130 | 2,345,628 | |||||||||||||||||
|
Total equity |
277,118 | 269,494 | 254,455 | |||||||||||||||||
|
Total liabilities and equity |
$ |
2,792,837 |
$ |
2,734,624 |
$ |
2,600,083 | ||||||||||||||
|
Net interest income - taxable equivalent |
$ |
25,533 |
$ |
25,117 |
$ |
23,771 | ||||||||||||||
|
Net interest spread |
3.50% | 3.48% | 3.43% | |||||||||||||||||
|
Net interest margin |
3.85% | 3.87% | 3.89% | |||||||||||||||||
|
Ratio of average interest-earning assets to |
||||||||||||||||||||
|
average interest-bearing liabilities |
172.52% | 167.76% | 164.47% | |||||||||||||||||
15 | Page
|
|
||||||||||||||
|
CoBiz Financial Inc. |
||||||||||||||
|
December 31, 2013 |
||||||||||||||
|
(unaudited) |
||||||||||||||
|
For the year ended December 31, |
||||||||||||||
|
2013 |
2012 |
|||||||||||||
|
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 |
$ |
26,150 |
$ |
117 | 0.45% |
$ |
31,575 |
$ |
114 | 0.36% | ||||
|
Investment securities |
567,256 | 16,963 | 2.99% | 614,468 | 19,540 | 3.18% | ||||||||
|
Loans |
1,991,251 | 91,807 | 4.61% | 1,743,473 | 88,381 | 5.07% | ||||||||
|
Allowance for loan losses |
(44,297) | (51,627) | ||||||||||||
|
Total interest-earning assets |
$ |
2,540,360 |
$ |
108,887 | 4.21% |
$ |
2,337,889 |
$ |
108,035 | 4.51% | ||||
|
Noninterest-earning assets |
161,851 | 170,333 | ||||||||||||
|
Total assets |
$ |
2,702,211 |
$ |
2,508,222 | ||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||
|
Deposits |
||||||||||||||
|
Money market |
$ |
595,922 |
$ |
2,434 | 0.41% |
$ |
565,513 |
$ |
3,152 | 0.56% | ||||
|
Interest-bearing demand and NOW |
375,581 | 862 | 0.23% | 334,986 | 1,153 | 0.34% | ||||||||
|
Savings |
13,349 | 8 | 0.06% | 11,185 | 11 | 0.10% | ||||||||
|
Certificates of deposit |
||||||||||||||
|
Reciprocal |
89,051 | 349 | 0.39% | 90,113 | 446 | 0.49% | ||||||||
|
Under $100 |
28,901 | 144 | 0.50% | 31,594 | 199 | 0.63% | ||||||||
|
$100 and over |
137,121 | 819 | 0.60% | 163,205 | 1,200 | 0.74% | ||||||||
|
Total interest-bearing deposits |
$ |
1,239,925 |
$ |
4,616 | 0.37% |
$ |
1,196,596 |
$ |
6,161 | 0.51% | ||||
|
Other borrowings |
||||||||||||||
|
Securities sold under agreements to repurchase |
154,502 | 337 | 0.22% | 138,948 | 425 | 0.31% | ||||||||
|
Other short-term borrowings |
43,460 | 113 | 0.26% | 39,435 | 123 | 0.31% | ||||||||
|
Long term-debt |
85,216 | 5,360 | 6.29% | 93,150 | 6,041 | 6.49% | ||||||||
|
Total interest-bearing liabilities |
$ |
1,523,103 |
$ |
10,426 | 0.68% |
$ |
1,468,129 |
$ |
12,750 | 0.87% | ||||
|
Noninterest-bearing demand accounts |
878,985 | 759,162 | ||||||||||||
|
Total deposits and interest-bearing liabilities |
2,402,088 | 2,227,291 | ||||||||||||
|
Other noninterest-bearing liabilities |
31,781 | 38,827 | ||||||||||||
|
Total liabilities |
2,433,869 | 2,266,118 | ||||||||||||
|
Total equity |
268,342 | 242,104 | ||||||||||||
|
Total liabilities and equity |
$ |
2,702,211 |
$ |
2,508,222 | ||||||||||
|
Net interest income - taxable equivalent |
$ |
98,461 |
$ |
95,285 | ||||||||||
|
Net interest spread |
3.52% | 3.64% | ||||||||||||
|
Net interest margin |
3.88% | 4.08% | ||||||||||||
|
Ratio of average interest-earning assets to |
||||||||||||||
|
average interest-bearing liabilities |
166.79% | 159.24% | ||||||||||||
16 | Page
|
CoBiz Financial Inc. |
||||||||||||||||
|
December 31, 2013 |
||||||||||||||||
|
(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 reflects 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. |
||||||||||||||||
|
At |
||||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||
|
2013 |
2013 |
2013 |
2013 |
2012 |
||||||||||||
|
Shareholders' equity as reported - GAAP |
$ |
281,085 |
$ |
272,937 |
$ |
266,679 |
$ |
263,517 |
$ |
257,051 | ||||||
|
Intangible assets |
(2,798) | (2,960) | (3,112) | (3,373) | (3,573) | |||||||||||
|
A |
Tangible equity - non-GAAP |
278,287 | 269,977 | 263,567 | 260,144 | 253,478 | ||||||||||
|
Preferred stock |
(57,338) | (57,338) | (57,338) | (57,338) | (57,338) | |||||||||||
|
B |
Tangible common equity - non-GAAP |
$ |
220,949 |
$ |
212,639 |
$ |
206,229 |
$ |
202,806 |
$ |
196,140 | |||||
|
Total assets as reported - GAAP |
$ |
2,800,691 |
$ |
2,807,955 |
$ |
2,738,749 |
$ |
2,620,512 |
$ |
2,653,641 | ||||||
|
Intangible assets |
(2,798) | (2,960) | (3,112) | (3,373) | (3,573) | |||||||||||
|
C |
Total tangible assets - non-GAAP |
$ |
2,797,893 |
$ |
2,804,995 |
$ |
2,735,637 |
$ |
2,617,139 |
$ |
2,650,068 | |||||
|
D |
Common shares outstanding |
40,368 | 40,300 | 40,282 | 40,197 | 39,790 | ||||||||||
|
B / C |
Tangible common equity to tangible assets - non-GAAP |
7.90% | 7.58% | 7.54% | 7.75% | 7.40% | ||||||||||
|
A / C |
Tangible equity to tangible assets - non-GAAP |
9.95% | 9.62% | 9.63% | 9.94% | 9.56% | ||||||||||
|
B / D |
Tangible book value per common share - non-GAAP |
$ |
5.47 |
$ |
5.28 |
$ |
5.12 |
$ |
5.05 |
$ |
4.93 | |||||
17 | Page