Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | cobz-20170126x8k.htm |
Exhibit 99.1
CoBiz Financial Announces Fourth Quarter 2016 Results
Denver -- CoBiz Financial Inc. (Company) (NASDAQ: COBZ), a financial services company with $3.6 billion in assets, reported financial results for the fourth quarter of 2016.
Financial Highlights – Fourth quarter 2016
•Net income available to common shareholders of $34.9 million in 2016, compared to $25.7 million in 2015.
•Net income available to common shareholders of $8.7 million for the fourth quarter of 2016, compared to $4.4 million in the fourth quarter of 2015.
•Diluted earnings per share of $0.21 for the fourth quarter of 2016, compared to $0.11 in the fourth quarter of 2015.
•Loans increased $234.9 million, or 8.7%, from December 31, 2015 and $107.0 million from September 30, 2016.
•Deposits increased $288.1 million, or 10.5%, from December 31, 2015 and $92.6 million from September 30, 2016.
•Nonperforming assets (NPAs) to total assets of 0.23% at December 31, 2016, compared to 0.64% at December 31, 2015 and 0.29% at September 30, 2016.
Financial Summary
|
|
|
Quarter ended (unaudited) |
|
|
4Q16 change vs. |
|
||||||||||||||
|
(in thousands, except per share amounts) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
3Q16 |
|
4Q15 |
|
|||||||||
|
Net interest income before provision |
|
$ |
29,888 |
|
$ |
29,401 |
|
$ |
28,236 |
|
$ |
487 |
|
1.7 |
% |
$ |
1,652 |
|
5.9 |
% |
|
Provision for loan losses |
|
|
349 |
|
|
(1,168) |
|
|
5,390 |
|
|
1,517 |
|
129.9 |
% |
|
(5,041) |
|
(93.5) |
% |
|
Net interest income after provision |
|
|
29,539 |
|
|
30,569 |
|
|
22,846 |
|
|
(1,030) |
|
(3.4) |
% |
|
6,693 |
|
29.3 |
% |
|
Total noninterest income |
|
|
9,374 |
|
|
9,286 |
|
|
7,985 |
|
|
88 |
|
0.9 |
% |
|
1,389 |
|
17.4 |
% |
|
Total noninterest expense |
|
|
27,088 |
|
|
26,043 |
|
|
25,717 |
|
|
1,045 |
|
4.0 |
% |
|
1,371 |
|
5.3 |
% |
|
Net income before income taxes |
|
|
11,825 |
|
|
13,812 |
|
|
5,114 |
|
|
(1,987) |
|
(14.4) |
% |
|
6,711 |
|
131.2 |
% |
|
Provision for income taxes |
|
|
3,092 |
|
|
3,543 |
|
|
714 |
|
|
(451) |
|
(12.7) |
% |
|
2,378 |
|
333.1 |
% |
|
Net income |
|
$ |
8,733 |
|
$ |
10,269 |
|
$ |
4,400 |
|
$ |
(1,536) |
|
(15.0) |
% |
$ |
4,333 |
|
98.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.21 |
|
$ |
0.25 |
|
$ |
0.11 |
|
$ |
(0.04) |
|
(16.0) |
% |
$ |
0.10 |
|
90.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY RATIOS |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.75 |
% |
|
3.74 |
% |
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - taxable equivalent * |
|
|
65.57 |
% |
|
64.50 |
% |
|
68.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.98 |
% |
|
1.18 |
% |
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity |
|
|
11.56 |
% |
|
14.04 |
% |
|
6.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income as a percentage of taxable equivalent operating revenue * |
|
|
22.66 |
% |
|
22.91 |
% |
|
21.07 |
% |
|
|
|
|
|
|
|
|
|
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
1 | Page
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Quarter ended (unaudited) |
|
|
4Q16 change vs. |
|
||||||||||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
3Q16 |
|
4Q15 |
|
|||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
1,217,732 |
|
$ |
1,196,088 |
|
$ |
1,175,379 |
|
$ |
21,644 |
|
1.8 |
% |
$ |
42,353 |
|
3.6 |
% |
|
Owner-occupied real estate |
|
|
475,287 |
|
|
473,809 |
|
|
436,643 |
|
|
1,478 |
|
0.3 |
% |
|
38,644 |
|
8.9 |
% |
|
Investor real estate |
|
|
695,836 |
|
|
625,174 |
|
|
579,625 |
|
|
70,662 |
|
11.3 |
% |
|
116,211 |
|
20.0 |
% |
|
Construction & land |
|
|
174,451 |
|
|
170,594 |
|
|
201,281 |
|
|
3,857 |
|
2.3 |
% |
|
(26,830) |
|
(13.3) |
% |
|
Consumer |
|
|
267,013 |
|
|
263,871 |
|
|
253,317 |
|
|
3,142 |
|
1.2 |
% |
|
13,696 |
|
5.4 |
% |
|
Other |
|
|
103,786 |
|
|
97,569 |
|
|
52,960 |
|
|
6,217 |
|
6.4 |
% |
|
50,826 |
|
96.0 |
% |
|
Total loans |
|
$ |
2,934,105 |
|
$ |
2,827,105 |
|
$ |
2,699,205 |
|
$ |
107,000 |
|
3.8 |
% |
$ |
234,900 |
|
8.7 |
% |
•Loans at December 31, 2016 increased $234.9 million, or 8.7%, from December 31, 2015 and $107.0 million from September 30, 2016.
•Loans in the Arizona and Colorado markets increased $211.1 million and $23.8 million, respectively, from December 31, 2015. Compared to the quarter ended September 30, 2016 (linked-quarter), loans in the Arizona and Colorado markets increased $106.5 million and $0.5 million, respectively.
|
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|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
Quarter ended (unaudited) |
|
|||||||||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
2Q16 |
|
1Q16 |
|
4Q15 |
|
|||||
|
Loans - beginning balance |
|
$ |
2,827,105 |
|
$ |
2,813,703 |
|
$ |
2,716,888 |
|
$ |
2,699,205 |
|
$ |
2,621,053 |
|
|
New credit extended |
|
|
273,195 |
|
|
154,319 |
|
|
201,018 |
|
|
136,126 |
|
|
187,750 |
|
|
Credit advanced |
|
|
105,122 |
|
|
108,074 |
|
|
135,294 |
|
|
111,032 |
|
|
129,789 |
|
|
Paydowns & maturities |
|
|
(270,167) |
|
|
(248,760) |
|
|
(239,447) |
|
|
(223,102) |
|
|
(239,212) |
|
|
Gross loan charge-offs |
|
|
(1,150) |
|
|
(231) |
|
|
(50) |
|
|
(6,373) |
|
|
(175) |
|
|
Loans - ending balance |
|
$ |
2,934,105 |
|
$ |
2,827,105 |
|
$ |
2,813,703 |
|
$ |
2,716,888 |
|
$ |
2,699,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change - loans outstanding |
|
$ |
107,000 |
|
$ |
13,402 |
|
$ |
96,815 |
|
$ |
17,683 |
|
$ |
78,152 |
|
•New credit extensions and advances were $378.3 million in the fourth quarter of 2016, compared to $317.5 million in the fourth quarter of 2015 and $262.4 million in the linked-quarter. Paydowns and maturities were slightly higher in the fourth quarter of 2016 compared to the same periods.
•Commercial line utilization was 31.0% at December 31, 2016, compared to 34.5% and 34.0%, respectively, at December 31, 2015 and September 30, 2016.
Deposits and Customer Repurchase Agreements
|
|
|
Quarter ended (unaudited) |
|
|
4Q16 change vs. |
|
||||||||||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
3Q16 |
|
4Q15 |
|
|||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|||
|
Money market |
|
$ |
861,856 |
|
$ |
854,928 |
|
$ |
804,777 |
|
$ |
6,928 |
|
0.8 |
% |
$ |
57,079 |
|
7.1 |
% |
|
Interest-bearing demand |
|
|
714,062 |
|
|
681,256 |
|
|
585,524 |
|
|
32,806 |
|
4.8 |
% |
|
128,538 |
|
22.0 |
% |
|
Savings |
|
|
19,561 |
|
|
20,403 |
|
|
18,078 |
|
|
(842) |
|
(4.1) |
% |
|
1,483 |
|
8.2 |
% |
|
Certificates of deposits under $100 |
|
|
19,899 |
|
|
20,151 |
|
|
21,515 |
|
|
(252) |
|
(1.3) |
% |
|
(1,616) |
|
(7.5) |
% |
|
Certificates of deposits $100 and over |
|
|
87,692 |
|
|
87,593 |
|
|
94,260 |
|
|
99 |
|
0.1 |
% |
|
(6,568) |
|
(7.0) |
% |
|
Reciprocal CDARS |
|
|
44,250 |
|
|
46,316 |
|
|
37,223 |
|
|
(2,066) |
|
(4.5) |
% |
|
7,027 |
|
18.9 |
% |
|
Total interest-bearing deposits |
|
|
1,747,320 |
|
|
1,710,647 |
|
|
1,561,377 |
|
|
36,673 |
|
2.1 |
% |
|
185,943 |
|
11.9 |
% |
|
Noninterest-bearing demand deposits |
|
|
1,282,463 |
|
|
1,226,546 |
|
|
1,180,335 |
|
|
55,917 |
|
4.6 |
% |
|
102,128 |
|
8.7 |
% |
|
Total deposits |
|
|
3,029,783 |
|
|
2,937,193 |
|
|
2,741,712 |
|
|
92,590 |
|
3.2 |
% |
|
288,071 |
|
10.5 |
% |
|
Customer repurchase agreements |
|
|
27,639 |
|
|
52,114 |
|
|
47,459 |
|
|
(24,475) |
|
(47.0) |
% |
|
(19,820) |
|
(41.8) |
% |
|
Total deposits and customer repurchase agreements |
|
$ |
3,057,422 |
|
$ |
2,989,307 |
|
$ |
2,789,171 |
|
$ |
68,115 |
|
2.3 |
% |
$ |
268,251 |
|
9.6 |
% |
•Total deposits at December 31, 2016 increased $288.1 million, or 10.5%, from December 31, 2015 and $92.6 million from September 30, 2016.
2 | Page
•Noninterest-bearing demand accounts increased $102.1 million from December 31, 2015 and $55.9 million from September 30, 2016 and were 42.3% of total deposits at December 31, 2016.
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended (unaudited) |
|
|||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
|||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
|
Beginning allowance for loan losses |
|
$ |
33,529 |
|
$ |
34,344 |
|
$ |
34,899 |
|
|
Provision for loan losses |
|
|
349 |
|
|
(1,168) |
|
|
5,390 |
|
|
Net (charge-off) recovery |
|
|
(585) |
|
|
353 |
|
|
397 |
|
|
Ending allowance for loan losses |
|
$ |
33,293 |
|
$ |
33,529 |
|
$ |
40,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
2,638 |
|
$ |
5,046 |
|
$ |
15,717 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
657 |
|
|
- |
|
|
505 |
|
|
Total nonperforming loans |
|
|
3,295 |
|
|
5,046 |
|
|
16,222 |
|
|
OREO and repossessed assets |
|
|
5,079 |
|
|
5,079 |
|
|
5,079 |
|
|
Total nonperforming assets |
|
$ |
8,374 |
|
$ |
10,125 |
|
$ |
21,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing renegotiated loans |
|
$ |
23,612 |
|
$ |
25,291 |
|
$ |
28,196 |
|
|
Classified loans |
|
$ |
57,905 |
|
$ |
58,376 |
|
$ |
51,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.23 |
% |
|
0.29 |
% |
|
0.64 |
% |
|
Nonperforming loans to total loans |
|
|
0.11 |
% |
|
0.18 |
% |
|
0.60 |
% |
|
Nonperforming loans and OREO to total loans and OREO |
|
|
0.28 |
% |
|
0.36 |
% |
|
0.79 |
% |
|
Allowance for loan and credit losses to total loans |
|
|
1.13 |
% |
|
1.19 |
% |
|
1.51 |
% |
|
Allowance for loan and credit losses to nonperforming loans |
|
|
1,010.41 |
% |
|
664.47 |
% |
|
250.81 |
% |
•NPAs decreased $1.8 million from September 30, 2016 and $12.9 million from December 31, 2015, to $8.4 million at December 31, 2016.
•The Company had net charge-offs of $0.6 million in the fourth quarter of 2016.
•A provision for loan losses of $0.3 million was recorded in the fourth quarter of 2016 as a result of net charge-offs and growth in the loan portfolio.
•The resulting allowance for loan and credit losses (Allowance) was 1.13% of total loans at December 31, 2016.
Shareholders’ Equity
|
|
|
Quarter ended (unaudited) |
|
|||||||
|
(in thousands, except per share amounts) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
|||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
Common shareholders' equity |
|
$ |
302,310 |
|
$ |
295,837 |
|
$ |
273,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at period end |
|
|
41,555 |
|
|
41,465 |
|
|
41,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
7.27 |
|
$ |
7.13 |
|
$ |
6.65 |
|
|
Tangible book value per common share * |
|
$ |
7.24 |
|
$ |
7.10 |
|
$ |
6.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets * |
|
|
8.29 |
% |
|
8.53 |
% |
|
8.11 |
% |
|
Tier 1 capital ratio |
|
|
** |
|
|
11.52 |
% |
|
10.47 |
% |
|
Total risk-based capital ratio |
|
|
** |
|
|
14.47 |
% |
|
13.73 |
% |
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
** Ratios unavailable at the time of release.
•On January 19, 2017, the Board of Directors of the Company declared a quarterly cash dividend of $0.05 per common share. The dividend will be paid on February 6, 2017 to shareholders of record on January 30, 2017.
3 | Page
Net Interest Income and Margin
•Net interest income on a tax-equivalent basis (NII) was $32.0 million for the fourth quarter of 2016, an increase of $2.1 million, or 6.9%, from the quarter ended December 31, 2015. From the quarter ended September 30, 2016, NII increased $0.7 million, or 2.4%.
•The Net Interest Margin (NIM) was 3.75% for the fourth quarter of 2016, compared to 3.73% in the prior-year quarter and 3.74% in the third quarter of 2016.
•Supporting the growth in NII was an increase in the earning asset base and deposit growth.
|
o |
Quarterly average loans increased $219.6 million, or 8.3%, from the prior-year quarter, and $49.0 million from the linked-quarter. |
|
o |
Quarterly average deposits increased $282.6 million, or 10.3%, from the prior-year quarter, and $112.1 million from the linked-quarter. |
|
o |
Average noninterest-bearing demand accounts increased $147.7 million, or 12.6%, from the prior-year quarter and $53.8 million from the linked-quarter. |
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended (unaudited) |
|
|
4Q16 change vs. |
|
||||||||||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
3Q16 |
|
4Q15 |
|
|||||||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
$ |
1,551 |
|
$ |
1,553 |
|
$ |
1,424 |
|
$ |
(2) |
|
(0.1) |
% |
$ |
127 |
|
8.9 |
% |
|
Investment advisory income |
|
|
1,418 |
|
|
1,416 |
|
|
1,388 |
|
|
2 |
|
0.1 |
% |
|
30 |
|
2.2 |
% |
|
Insurance income |
|
|
3,286 |
|
|
3,120 |
|
|
2,937 |
|
|
166 |
|
5.3 |
% |
|
349 |
|
11.9 |
% |
|
Other investments |
|
|
215 |
|
|
1,348 |
|
|
453 |
|
|
(1,133) |
|
(84.1) |
% |
|
(238) |
|
(52.5) |
% |
|
Derivative valuation |
|
|
737 |
|
|
- |
|
|
154 |
|
|
737 |
|
100.0 |
% |
|
583 |
|
378.6 |
% |
|
Other income |
|
|
2,167 |
|
|
1,849 |
|
|
1,629 |
|
|
318 |
|
17.2 |
% |
|
538 |
|
33.0 |
% |
|
Total noninterest income |
|
$ |
9,374 |
|
$ |
9,286 |
|
$ |
7,985 |
|
$ |
88 |
|
0.9 |
% |
$ |
1,389 |
|
17.4 |
% |
•Noninterest income increased $1.4 million, or 17.4%, from the prior-year quarter and $0.1 million, or 0.9%, from the linked-quarter. On a linked-quarter basis, a decrease of $1.1 million in other investments was offset by higher income in other areas, most notably the mark-to-market adjustment on the Company’s derivative portfolio. The increase in other income is primarily from fees recognized on the sale of interest rate swaps.
•Noninterest income as a percentage of taxable equivalent operating revenue was 22.7% for the fourth quarter of 2016, compared to 21.1% in the prior-year quarter and 22.9% in the linked-quarter.
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended (unaudited) |
|
|
4Q16 change vs. |
|
||||||||||||||
|
(in thousands) |
|
4Q16 |
|
3Q16 |
|
4Q15 |
|
3Q16 |
|
4Q15 |
|
|||||||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
18,378 |
|
$ |
17,480 |
|
$ |
17,808 |
|
$ |
898 |
|
5.1 |
% |
$ |
570 |
|
3.2 |
% |
|
Occupancy expenses, premises and equipment |
|
|
3,934 |
|
|
4,025 |
|
|
3,301 |
|
|
(91) |
|
(2.3) |
% |
|
633 |
|
19.2 |
% |
|
Amortization of intangibles |
|
|
150 |
|
|
150 |
|
|
150 |
|
|
- |
|
- |
% |
|
- |
|
- |
% |
|
Other operating expenses |
|
|
4,659 |
|
|
4,486 |
|
|
4,704 |
|
|
173 |
|
3.9 |
% |
|
(45) |
|
(1.0) |
% |
|
Net gain on OREO, repossessed assets and other |
|
|
(33) |
|
|
(98) |
|
|
(246) |
|
|
65 |
|
66.3 |
% |
|
213 |
|
86.6 |
% |
|
Total noninterest expense |
|
$ |
27,088 |
|
$ |
26,043 |
|
$ |
25,717 |
|
$ |
1,045 |
|
4.0 |
% |
$ |
1,371 |
|
5.3 |
% |
•Noninterest expense increased $1.4 million, or 5.3%, from the prior-year quarter and $1.0 million from the linked-quarter. The increase in noninterest expense compared to the prior-year quarter was due to increases in salaries, employee benefits and occupancy expenses. The increase in salaries and employee benefits was due to higher incentive compensation based on improved operating results. The increase in occupancy expense was due to the lease of the Company’s new headquarters location.
•The efficiency ratio was 65.6% for the fourth quarter of 2016, compared to 68.5% and 64.5%, respectively, for the prior-year and linked-quarters.
4 | Page
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, January 27, 2017 at 9:00 am MDT with Steve Bangert, chairman and CEO of CoBiz Financial Inc. The call can be accessed via the Internet at https://www.webcaster4.com/Webcast/Page/989/19138 or by telephone at 877.493.9121 (conference ID # 86290694).
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
5 | Page
About CoBiz Financial
CoBiz Financial (NASDAQ:COBZ) is a $3.6 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides banking services through Colorado Business Bank, Arizona Business Bank and CoBiz Private Bank; wealth planning and investment management through CoBiz Wealth Management; and property and casualty insurance brokerage and employee benefits through CoBiz Insurance.
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 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.
•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.
•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.
6 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
||||||||
|
(in thousands, except per share amounts) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
32,779 |
|
$ |
31,081 |
|
$ |
127,782 |
|
$ |
121,266 |
|
|
Interest expense |
|
|
2,891 |
|
|
2,845 |
|
|
11,731 |
|
|
9,590 |
|
|
NET INTEREST INCOME BEFORE PROVISION |
|
|
29,888 |
|
|
28,236 |
|
|
116,051 |
|
|
111,676 |
|
|
Provision for loan losses |
|
|
349 |
|
|
5,390 |
|
|
(2,101) |
|
|
6,420 |
|
|
NET INTEREST INCOME AFTER PROVISION |
|
|
29,539 |
|
|
22,846 |
|
|
118,152 |
|
|
105,256 |
|
|
Noninterest income |
|
|
9,374 |
|
|
7,985 |
|
|
34,160 |
|
|
30,667 |
|
|
Noninterest expense |
|
|
27,088 |
|
|
25,717 |
|
|
105,231 |
|
|
100,177 |
|
|
INCOME BEFORE INCOME TAXES |
|
|
11,825 |
|
|
5,114 |
|
|
47,081 |
|
|
35,746 |
|
|
Provision for income taxes |
|
|
3,092 |
|
|
714 |
|
|
12,182 |
|
|
9,606 |
|
|
NET INCOME FROM CONTINUING OPERATIONS |
|
|
8,733 |
|
|
4,400 |
|
|
34,899 |
|
|
26,140 |
|
|
Loss from discontinued operations, net of tax |
|
|
- |
|
|
- |
|
|
- |
|
|
(71) |
|
|
NET INCOME |
|
$ |
8,733 |
|
$ |
4,400 |
|
$ |
34,899 |
|
$ |
26,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
- |
|
|
- |
|
|
- |
|
|
(320) |
|
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
8,733 |
|
$ |
4,400 |
|
$ |
34,899 |
|
$ |
25,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
|
$ |
0.21 |
|
$ |
0.11 |
|
$ |
0.84 |
|
$ |
0.63 |
|
|
DILUTED |
|
$ |
0.21 |
|
$ |
0.11 |
|
$ |
0.84 |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
|
|
|
41,555 |
|
|
41,122 |
|
|
Book value per common share |
|
|
|
|
|
|
|
$ |
7.27 |
|
$ |
6.65 |
|
|
Tangible book value per common share * |
|
|
|
|
|
|
|
$ |
7.24 |
|
$ |
6.60 |
|
|
Tangible common equity to tangible assets * |
|
|
|
|
|
|
|
|
8.29 |
% |
|
8.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
$ |
3,630,313 |
|
$ |
3,351,767 |
|
|
Investments |
|
|
|
|
|
|
|
|
510,387 |
|
|
512,812 |
|
|
Loans |
|
|
|
|
|
|
|
|
2,934,105 |
|
|
2,699,205 |
|
|
Intangible assets |
|
|
|
|
|
|
|
|
1,326 |
|
|
1,926 |
|
|
Deposits |
|
|
|
|
|
|
|
|
3,029,783 |
|
|
2,741,712 |
|
|
Subordinated debentures |
|
|
|
|
|
|
|
|
131,277 |
|
|
131,197 |
|
|
Common shareholders' equity |
|
|
|
|
|
|
|
|
302,310 |
|
|
273,536 |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
3,471,208 |
|
|
3,230,664 |
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
2,012,466 |
|
|
1,872,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
|
|
|
|
|
$ |
3,435,703 |
|
$ |
3,149,310 |
|
|
Average investments |
|
|
|
|
|
|
|
|
483,328 |
|
|
499,219 |
|
|
Average loans |
|
|
|
|
|
|
|
|
2,793,516 |
|
|
2,517,766 |
|
|
Average deposits |
|
|
|
|
|
|
|
|
2,860,754 |
|
|
2,614,410 |
|
|
Average subordinated debentures |
|
|
|
|
|
|
|
|
131,236 |
|
|
102,884 |
|
|
Average shareholders' equity |
|
|
|
|
|
|
|
|
287,327 |
|
|
297,180 |
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
3,309,281 |
|
|
3,041,127 |
|
|
Average interest-bearing liabilities |
|
|
|
|
|
|
|
|
1,882,979 |
|
|
1,759,619 |
|
7 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
||||||||
|
(in thousands) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.75 |
% |
|
3.73 |
% |
|
3.73 |
% |
|
3.86 |
% |
|
Efficiency ratio - taxable equivalent * |
|
|
65.57 |
% |
|
68.51 |
% |
|
66.79 |
% |
|
67.91 |
% |
|
Return on average assets |
|
|
0.98 |
% |
|
0.53 |
% |
|
1.02 |
% |
|
0.83 |
% |
|
Return on average shareholders' equity |
|
|
11.56 |
% |
|
6.37 |
% |
|
12.15 |
% |
|
8.77 |
% |
|
Noninterest income as a percentage of taxable equivalent operating revenue * |
|
|
22.66 |
% |
|
21.07 |
% |
|
21.66 |
% |
|
20.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
|
|
|
|
|
|
$ |
2,638 |
|
$ |
15,717 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
|
|
|
|
|
|
657 |
|
|
505 |
|
|
Total nonperforming loans |
|
|
|
|
|
|
|
|
3,295 |
|
|
16,222 |
|
|
OREO & repossessed assets |
|
|
|
|
|
|
|
|
5,079 |
|
|
5,079 |
|
|
Total nonperforming assets |
|
|
|
|
|
|
|
$ |
8,374 |
|
$ |
21,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing renegotiated loans |
|
|
|
|
|
|
|
$ |
23,612 |
|
$ |
28,196 |
|
|
Classified loans |
|
|
|
|
|
|
|
$ |
57,905 |
|
$ |
51,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
|
|
|
|
|
|
$ |
(7,804) |
|
$ |
(1,296) |
|
|
Recoveries |
|
|
|
|
|
|
|
|
2,512 |
|
|
2,797 |
|
|
Net (charge-offs) recoveries |
|
|
|
|
|
|
|
$ |
(5,292) |
|
$ |
1,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
|
|
|
|
|
|
0.23 |
% |
|
0.64 |
% |
|
Nonperforming loans to total loans |
|
|
|
|
|
|
|
|
0.11 |
% |
|
0.60 |
% |
|
Nonperforming loans and OREO to total loans and OREO |
|
|
|
|
|
|
|
|
0.28 |
% |
|
0.79 |
% |
|
Allowance for loan and credit losses to total loans |
|
|
|
|
|
|
|
|
1.13 |
% |
|
1.51 |
% |
|
Allowance for loan and credit losses to nonperforming loans |
|
|
|
|
|
|
|
|
1,010.41 |
% |
|
250.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
|
|||||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
|
||||
|
Commercial |
|
$ |
1,966 |
|
$ |
236 |
|
$ |
2,202 |
|
$ |
1,217,732 |
|
0.18 |
% |
|
Real estate - mortgage |
|
|
- |
|
|
269 |
|
|
269 |
|
|
1,171,123 |
|
0.02 |
% |
|
Construction & land |
|
|
657 |
|
|
- |
|
|
657 |
|
|
174,451 |
|
0.38 |
% |
|
Consumer |
|
|
167 |
|
|
- |
|
|
167 |
|
|
267,013 |
|
0.06 |
% |
|
Other loans |
|
|
- |
|
|
- |
|
|
- |
|
|
103,786 |
|
- |
% |
|
OREO & repossessed assets |
|
|
4,903 |
|
|
176 |
|
|
5,079 |
|
|
5,079 |
|
- |
|
|
NPAs |
|
$ |
7,693 |
|
$ |
681 |
|
$ |
8,374 |
|
$ |
2,939,184 |
|
0.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
1,869,086 |
|
$ |
1,065,019 |
|
$ |
2,934,105 |
|
|
|
|
|
|
|
Total loans and OREO |
|
|
1,873,989 |
|
|
1,065,195 |
|
|
2,939,184 |
|
|
|
|
|
|
|
Nonperforming loans to loans |
|
|
0.15 |
% |
|
0.05 |
% |
|
0.11 |
% |
|
|
|
|
|
|
Nonperforming loans and OREO to total loans and OREO |
|
|
0.41 |
% |
|
0.06 |
% |
|
0.28 |
% |
|
|
|
|
|
8 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
Three months ended |
|
|||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
|
(in thousands, except per share amounts) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
|||||
|
Interest income |
|
$ |
32,779 |
|
$ |
32,308 |
|
$ |
31,500 |
|
$ |
31,195 |
|
$ |
31,081 |
|
|
Interest expense |
|
|
2,891 |
|
|
2,907 |
|
|
2,967 |
|
|
2,966 |
|
|
2,845 |
|
|
Net interest income before provision |
|
|
29,888 |
|
|
29,401 |
|
|
28,533 |
|
|
28,229 |
|
|
28,236 |
|
|
Provision for loan losses |
|
|
349 |
|
|
(1,168) |
|
|
(1,652) |
|
|
370 |
|
|
5,390 |
|
|
Net interest income after provision |
|
|
29,539 |
|
|
30,569 |
|
|
30,185 |
|
|
27,859 |
|
|
22,846 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
$ |
1,551 |
|
$ |
1,553 |
|
$ |
1,470 |
|
$ |
1,485 |
|
$ |
1,424 |
|
|
Investment advisory income |
|
|
1,418 |
|
|
1,416 |
|
|
1,430 |
|
|
1,450 |
|
|
1,388 |
|
|
Insurance income |
|
|
3,286 |
|
|
3,120 |
|
|
3,112 |
|
|
3,050 |
|
|
2,937 |
|
|
Other investments |
|
|
215 |
|
|
1,348 |
|
|
420 |
|
|
494 |
|
|
453 |
|
|
Derivative valuation |
|
|
737 |
|
|
- |
|
|
(163) |
|
|
(293) |
|
|
154 |
|
|
Other income |
|
|
2,167 |
|
|
1,849 |
|
|
1,543 |
|
|
1,502 |
|
|
1,629 |
|
|
Total noninterest income |
|
|
9,374 |
|
|
9,286 |
|
|
7,812 |
|
|
7,688 |
|
|
7,985 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
18,378 |
|
$ |
17,480 |
|
$ |
17,984 |
|
$ |
17,629 |
|
$ |
17,808 |
|
|
Occupancy expenses, premises and equipment |
|
|
3,934 |
|
|
4,025 |
|
|
3,517 |
|
|
3,490 |
|
|
3,301 |
|
|
Amortization of intangibles |
|
|
150 |
|
|
150 |
|
|
150 |
|
|
150 |
|
|
150 |
|
|
Other operating expenses |
|
|
4,659 |
|
|
4,486 |
|
|
4,610 |
|
|
4,560 |
|
|
4,704 |
|
|
Net (gain) loss on securities, other assets and OREO |
|
|
(33) |
|
|
(98) |
|
|
7 |
|
|
3 |
|
|
(246) |
|
|
Total noninterest expense |
|
|
27,088 |
|
|
26,043 |
|
|
26,268 |
|
|
25,832 |
|
|
25,717 |
|
|
Net income before income taxes |
|
|
11,825 |
|
|
13,812 |
|
|
11,729 |
|
|
9,715 |
|
|
5,114 |
|
|
Provision for income taxes |
|
|
3,092 |
|
|
3,543 |
|
|
3,197 |
|
|
2,350 |
|
|
714 |
|
|
Net income |
|
$ |
8,733 |
|
$ |
10,269 |
|
$ |
8,532 |
|
$ |
7,365 |
|
$ |
4,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.21 |
|
$ |
0.25 |
|
$ |
0.21 |
|
$ |
0.18 |
|
$ |
0.11 |
|
|
Diluted |
|
$ |
0.21 |
|
$ |
0.25 |
|
$ |
0.21 |
|
$ |
0.18 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.75 |
% |
|
3.74 |
% |
|
3.72 |
% |
|
3.73 |
% |
|
3.73 |
% |
|
Efficiency ratio - taxable equivalent * |
|
|
65.57 |
% |
|
64.50 |
% |
|
68.71 |
% |
|
68.63 |
% |
|
68.51 |
% |
|
Return on average assets |
|
|
0.98 |
% |
|
1.18 |
% |
|
1.01 |
% |
|
0.88 |
% |
|
0.53 |
% |
|
Return on average shareholders' equity |
|
|
11.56 |
% |
|
14.04 |
% |
|
12.19 |
% |
|
10.74 |
% |
|
6.37 |
% |
|
Noninterest income as a percentage of taxable equivalent operating revenue * |
|
|
22.66 |
% |
|
22.91 |
% |
|
20.44 |
% |
|
20.43 |
% |
|
21.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at period end (in thousands) |
|
|
41,555 |
|
|
41,465 |
|
|
41,433 |
|
|
41,355 |
|
|
41,122 |
|
|
Diluted weighted average common shares outstanding (in thousands) |
|
|
41,371 |
|
|
41,192 |
|
|
41,105 |
|
|
40,829 |
|
|
40,874 |
|
|
Book value per common share |
|
$ |
7.27 |
|
$ |
7.13 |
|
$ |
6.90 |
|
$ |
6.72 |
|
$ |
6.65 |
|
|
Tangible book value per common share * |
|
$ |
7.24 |
|
$ |
7.10 |
|
$ |
6.86 |
|
$ |
6.67 |
|
$ |
6.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets * |
|
|
8.29 |
% |
|
8.53 |
% |
|
8.23 |
% |
|
8.23 |
% |
|
8.11 |
% |
|
Tier 1 capital ratio |
|
|
** |
% |
|
11.52 |
% |
|
10.75 |
% |
|
10.52 |
% |
|
10.47 |
% |
|
Total risk based capital ratio |
|
|
** |
% |
|
14.47 |
% |
|
13.77 |
% |
|
13.66 |
% |
|
13.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
** Ratios unavailable at the time of release.
9 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
At |
|
|||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
|
(in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
|||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,630,313 |
|
$ |
3,452,498 |
|
$ |
3,457,516 |
|
$ |
3,357,000 |
|
$ |
3,351,767 |
|
|
Investments |
|
|
510,387 |
|
|
455,082 |
|
|
477,617 |
|
|
495,012 |
|
|
512,812 |
|
|
Loans |
|
|
2,934,105 |
|
|
2,827,105 |
|
|
2,813,703 |
|
|
2,716,888 |
|
|
2,699,205 |
|
|
Intangible assets |
|
|
1,326 |
|
|
1,476 |
|
|
1,626 |
|
|
1,776 |
|
|
1,926 |
|
|
Deposits |
|
|
3,029,783 |
|
|
2,937,193 |
|
|
2,806,344 |
|
|
2,774,364 |
|
|
2,741,712 |
|
|
Subordinated debentures |
|
|
131,277 |
|
|
131,256 |
|
|
131,236 |
|
|
131,216 |
|
|
131,197 |
|
|
Common shareholders' equity |
|
|
302,310 |
|
|
295,837 |
|
|
286,052 |
|
|
277,811 |
|
|
273,536 |
|
|
Interest-earning assets |
|
|
3,471,208 |
|
|
3,309,804 |
|
|
3,325,368 |
|
|
3,229,226 |
|
|
3,230,664 |
|
|
Interest-bearing liabilities |
|
|
2,012,466 |
|
|
1,896,216 |
|
|
1,956,402 |
|
|
1,879,671 |
|
|
1,872,033 |
|
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
1,217,732 |
|
$ |
1,196,088 |
|
$ |
1,218,723 |
|
$ |
1,181,185 |
|
$ |
1,175,379 |
|
|
Real estate - mortgage |
|
|
1,171,123 |
|
|
1,098,983 |
|
|
1,053,867 |
|
|
1,009,682 |
|
|
1,016,268 |
|
|
Construction & land |
|
|
174,451 |
|
|
170,594 |
|
|
184,620 |
|
|
208,701 |
|
|
201,281 |
|
|
Consumer |
|
|
267,013 |
|
|
263,871 |
|
|
258,773 |
|
|
258,345 |
|
|
253,317 |
|
|
Other |
|
|
103,786 |
|
|
97,569 |
|
|
97,720 |
|
|
58,975 |
|
|
52,960 |
|
|
Gross loans |
|
|
2,934,105 |
|
|
2,827,105 |
|
|
2,813,703 |
|
|
2,716,888 |
|
|
2,699,205 |
|
|
Less allowance for loan losses |
|
|
(33,293) |
|
|
(33,529) |
|
|
(34,344) |
|
|
(35,285) |
|
|
(40,686) |
|
|
Total net loans |
|
$ |
2,900,812 |
|
$ |
2,793,576 |
|
$ |
2,779,359 |
|
$ |
2,681,603 |
|
$ |
2,658,519 |
|
|
Gross loans - Colorado |
|
$ |
1,869,086 |
|
$ |
1,868,582 |
|
$ |
1,867,772 |
|
$ |
1,822,739 |
|
$ |
1,845,292 |
|
|
Gross loans - Arizona |
|
$ |
1,065,019 |
|
$ |
958,523 |
|
$ |
945,931 |
|
$ |
894,149 |
|
$ |
853,913 |
|
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
$ |
861,856 |
|
$ |
854,928 |
|
$ |
853,815 |
|
$ |
834,152 |
|
$ |
804,777 |
|
|
Interest-bearing demand |
|
|
714,062 |
|
|
681,256 |
|
|
591,355 |
|
|
600,415 |
|
|
585,524 |
|
|
Savings |
|
|
19,561 |
|
|
20,403 |
|
|
19,097 |
|
|
18,165 |
|
|
18,078 |
|
|
Certificates of deposits under $100 |
|
|
19,899 |
|
|
20,151 |
|
|
19,836 |
|
|
21,078 |
|
|
21,515 |
|
|
Certificates of deposits $100 and over |
|
|
87,692 |
|
|
87,593 |
|
|
89,008 |
|
|
92,161 |
|
|
94,260 |
|
|
Reciprocal CDARS |
|
|
44,250 |
|
|
46,316 |
|
|
49,210 |
|
|
36,816 |
|
|
37,223 |
|
|
Total interest-bearing deposits |
|
|
1,747,320 |
|
|
1,710,647 |
|
|
1,622,321 |
|
|
1,602,787 |
|
|
1,561,377 |
|
|
Noninterest-bearing demand deposits |
|
|
1,282,463 |
|
|
1,226,546 |
|
|
1,184,023 |
|
|
1,171,577 |
|
|
1,180,335 |
|
|
Total deposits |
|
|
3,029,783 |
|
|
2,937,193 |
|
|
2,806,344 |
|
|
2,774,364 |
|
|
2,741,712 |
|
|
Customer repurchase agreements |
|
|
27,639 |
|
|
52,114 |
|
|
37,908 |
|
|
39,141 |
|
|
47,459 |
|
|
Total deposits and customer repurchase agreements |
|
$ |
3,057,422 |
|
$ |
2,989,307 |
|
$ |
2,844,252 |
|
$ |
2,813,505 |
|
$ |
2,789,171 |
|
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
3,538,428 |
|
$ |
3,456,974 |
|
$ |
3,394,960 |
|
$ |
3,351,087 |
|
$ |
3,298,242 |
|
|
Average investments |
|
|
475,750 |
|
|
462,766 |
|
|
487,309 |
|
|
507,797 |
|
|
512,638 |
|
|
Average loans |
|
|
2,871,288 |
|
|
2,822,334 |
|
|
2,777,790 |
|
|
2,701,483 |
|
|
2,651,689 |
|
|
Average deposits |
|
|
3,021,429 |
|
|
2,909,307 |
|
|
2,801,499 |
|
|
2,708,483 |
|
|
2,738,796 |
|
|
Average subordinated debentures |
|
|
131,266 |
|
|
131,245 |
|
|
131,225 |
|
|
131,206 |
|
|
131,187 |
|
|
Average shareholders' equity |
|
|
300,665 |
|
|
290,973 |
|
|
281,617 |
|
|
275,863 |
|
|
274,196 |
|
|
Average interest-earning assets |
|
|
3,397,679 |
|
|
3,322,596 |
|
|
3,286,863 |
|
|
3,228,872 |
|
|
3,183,463 |
|
|
Average interest-bearing liabilities |
|
|
1,887,410 |
|
|
1,869,875 |
|
|
1,883,198 |
|
|
1,891,527 |
|
|
1,835,549 |
|
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning allowance for loan losses |
|
$ |
33,529 |
|
$ |
34,344 |
|
$ |
35,285 |
|
$ |
40,686 |
|
$ |
34,899 |
|
|
Provision for loan losses |
|
|
349 |
|
|
(1,168) |
|
|
(1,652) |
|
|
370 |
|
|
5,390 |
|
|
Net (charge-off) recovery |
|
|
(585) |
|
|
353 |
|
|
711 |
|
|
(5,771) |
|
|
397 |
|
|
Ending allowance for loan losses |
|
$ |
33,293 |
|
$ |
33,529 |
|
$ |
34,344 |
|
$ |
35,285 |
|
$ |
40,686 |
|
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
2,638 |
|
$ |
5,046 |
|
$ |
5,994 |
|
$ |
8,244 |
|
$ |
15,717 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
657 |
|
|
- |
|
|
- |
|
|
- |
|
|
505 |
|
|
Total nonperforming loans |
|
|
3,295 |
|
|
5,046 |
|
|
5,994 |
|
|
8,244 |
|
|
16,222 |
|
|
OREO and repossessed assets |
|
|
5,079 |
|
|
5,079 |
|
|
5,079 |
|
|
5,079 |
|
|
5,079 |
|
|
Total nonperforming assets |
|
$ |
8,374 |
|
$ |
10,125 |
|
$ |
11,073 |
|
$ |
13,323 |
|
$ |
21,301 |
|
|
Performing renegotiated loans |
|
$ |
23,612 |
|
$ |
25,291 |
|
$ |
27,240 |
|
$ |
26,523 |
|
$ |
28,196 |
|
|
Classified loans |
|
$ |
57,905 |
|
$ |
58,376 |
|
$ |
58,163 |
|
$ |
60,700 |
|
$ |
51,078 |
|
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.23 |
% |
|
0.29 |
% |
|
0.32 |
% |
|
0.40 |
% |
|
0.64 |
% |
|
Nonperforming loans to total loans |
|
|
0.11 |
% |
|
0.18 |
% |
|
0.21 |
% |
|
0.30 |
% |
|
0.60 |
% |
|
Nonperforming loans and OREO to total loans and OREO |
|
|
0.28 |
% |
|
0.36 |
% |
|
0.39 |
% |
|
0.49 |
% |
|
0.79 |
% |
|
Allowance for loan and credit losses to total loans |
|
|
1.13 |
% |
|
1.19 |
% |
|
1.22 |
% |
|
1.30 |
% |
|
1.51 |
% |
|
Allowance for loan and credit losses to nonperforming loans |
|
|
1010.41 |
% |
|
664.47 |
% |
|
572.97 |
% |
|
428.01 |
% |
|
250.81 |
% |
10 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
For the three months ended, |
|
||||||||||||||||||||||
|
|
|
December 31, 2016 |
|
September 30, 2016 |
|
December 31, 2015 |
|
||||||||||||||||||
|
|
|
|
|
|
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 |
|
$ |
50,641 |
|
$ |
64 |
|
0.49 |
% |
$ |
37,496 |
|
$ |
50 |
|
0.52 |
% |
$ |
19,136 |
|
$ |
14 |
|
0.29 |
% |
|
Investment securities |
|
|
475,750 |
|
|
3,234 |
|
2.72 |
% |
|
462,766 |
|
|
3,224 |
|
2.79 |
% |
|
512,638 |
|
|
3,518 |
|
2.75 |
% |
|
Loans |
|
|
2,871,288 |
|
|
31,578 |
|
4.30 |
% |
|
2,822,334 |
|
|
30,877 |
|
4.28 |
% |
|
2,651,689 |
|
|
29,221 |
|
4.31 |
% |
|
Total interest-earning assets |
|
$ |
3,397,679 |
|
$ |
34,876 |
|
4.02 |
% |
$ |
3,322,596 |
|
$ |
34,151 |
|
4.03 |
% |
$ |
3,183,463 |
|
$ |
32,753 |
|
4.04 |
% |
|
Noninterest-earning assets |
|
|
140,749 |
|
|
|
|
|
|
|
134,378 |
|
|
|
|
|
|
|
114,779 |
|
|
|
|
|
|
|
Total assets |
|
$ |
3,538,428 |
|
|
|
|
|
|
$ |
3,456,974 |
|
|
|
|
|
|
$ |
3,298,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
$ |
857,720 |
|
$ |
588 |
|
0.27 |
% |
$ |
862,607 |
|
$ |
600 |
|
0.28 |
% |
$ |
812,953 |
|
$ |
553 |
|
0.27 |
% |
|
Interest-bearing demand |
|
|
671,858 |
|
|
271 |
|
0.16 |
% |
|
606,481 |
|
|
241 |
|
0.16 |
% |
|
581,622 |
|
|
202 |
|
0.14 |
% |
|
Savings |
|
|
20,059 |
|
|
3 |
|
0.06 |
% |
|
19,621 |
|
|
2 |
|
0.04 |
% |
|
18,749 |
|
|
3 |
|
0.06 |
% |
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reciprocal |
|
|
44,636 |
|
|
21 |
|
0.19 |
% |
|
48,257 |
|
|
24 |
|
0.20 |
% |
|
34,796 |
|
|
15 |
|
0.17 |
% |
|
Under $100 |
|
|
19,986 |
|
|
18 |
|
0.36 |
% |
|
20,559 |
|
|
19 |
|
0.37 |
% |
|
21,626 |
|
|
21 |
|
0.39 |
% |
|
$100 and over |
|
|
88,214 |
|
|
113 |
|
0.51 |
% |
|
86,621 |
|
|
110 |
|
0.51 |
% |
|
97,759 |
|
|
124 |
|
0.50 |
% |
|
Total interest-bearing deposits |
|
$ |
1,702,473 |
|
$ |
1,014 |
|
0.24 |
% |
$ |
1,644,146 |
|
$ |
996 |
|
0.24 |
% |
$ |
1,567,505 |
|
$ |
918 |
|
0.23 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
|
44,985 |
|
|
7 |
|
0.06 |
% |
|
57,400 |
|
|
9 |
|
0.06 |
% |
|
52,090 |
|
|
8 |
|
0.06 |
% |
|
Other short-term borrowings |
|
|
8,686 |
|
|
17 |
|
0.77 |
% |
|
37,084 |
|
|
51 |
|
0.54 |
% |
|
84,767 |
|
|
71 |
|
0.33 |
% |
|
Long-term debt |
|
|
131,266 |
|
|
1,853 |
|
5.52 |
% |
|
131,245 |
|
|
1,851 |
|
5.52 |
% |
|
131,187 |
|
|
1,849 |
|
5.52 |
% |
|
Total interest-bearing liabilities |
|
$ |
1,887,410 |
|
$ |
2,891 |
|
0.60 |
% |
$ |
1,869,875 |
|
$ |
2,907 |
|
0.61 |
% |
$ |
1,835,549 |
|
$ |
2,846 |
|
0.61 |
% |
|
Noninterest-bearing demand accounts |
|
|
1,318,956 |
|
|
|
|
|
|
|
1,265,161 |
|
|
|
|
|
|
|
1,171,291 |
|
|
|
|
|
|
|
Total deposits and interest-bearing liabilities |
|
|
3,206,366 |
|
|
|
|
|
|
|
3,135,036 |
|
|
|
|
|
|
|
3,006,840 |
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
31,397 |
|
|
|
|
|
|
|
30,965 |
|
|
|
|
|
|
|
17,206 |
|
|
|
|
|
|
|
Total liabilities |
|
|
3,237,763 |
|
|
|
|
|
|
|
3,166,001 |
|
|
|
|
|
|
|
3,024,046 |
|
|
|
|
|
|
|
Total equity |
|
|
300,665 |
|
|
|
|
|
|
|
290,973 |
|
|
|
|
|
|
|
274,196 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
3,538,428 |
|
|
|
|
|
|
$ |
3,456,974 |
|
|
|
|
|
|
$ |
3,298,242 |
|
|
|
|
|
|
|
Net interest income - taxable equivalent |
|
|
|
|
$ |
31,985 |
|
|
|
|
|
|
$ |
31,244 |
|
|
|
|
|
|
$ |
29,907 |
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
3.43 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
|
3.74 |
% |
|
|
|
|
|
|
3.73 |
% |
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
|
180.02 |
% |
|
|
|
|
|
|
177.69 |
% |
|
|
|
|
|
|
173.43 |
% |
|
|
|
|
|
11 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
|
|
|
For the year ended December 31, |
|
||||||||||||||
|
|
|
2016 |
|
2015 |
|
||||||||||||
|
|
|
|
|
|
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 |
|
$ |
32,437 |
|
$ |
166 |
|
0.51 |
% |
$ |
24,142 |
|
$ |
58 |
|
0.24 |
% |
|
Investment securities |
|
|
483,328 |
|
|
13,412 |
|
2.77 |
% |
|
499,219 |
|
|
13,935 |
|
2.79 |
% |
|
Loans |
|
|
2,793,516 |
|
|
121,735 |
|
4.36 |
% |
|
2,517,766 |
|
|
112,994 |
|
4.49 |
% |
|
Total interest-earning assets |
|
$ |
3,309,281 |
|
$ |
135,313 |
|
4.09 |
% |
$ |
3,041,127 |
|
$ |
126,987 |
|
4.18 |
% |
|
Noninterest-earning assets |
|
|
126,422 |
|
|
|
|
|
|
|
108,183 |
|
|
|
|
|
|
|
Total assets |
|
$ |
3,435,703 |
|
|
|
|
|
|
$ |
3,149,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
$ |
842,870 |
|
$ |
2,298 |
|
0.27 |
% |
$ |
758,389 |
|
$ |
2,102 |
|
0.28 |
% |
|
Interest-bearing demand |
|
|
604,799 |
|
|
934 |
|
0.15 |
% |
|
585,241 |
|
|
789 |
|
0.13 |
% |
|
Savings |
|
|
18,904 |
|
|
10 |
|
0.05 |
% |
|
18,015 |
|
|
10 |
|
0.06 |
% |
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reciprocal |
|
|
43,728 |
|
|
81 |
|
0.19 |
% |
|
45,187 |
|
|
99 |
|
0.22 |
% |
|
Under $100 |
|
|
20,684 |
|
|
77 |
|
0.37 |
% |
|
22,687 |
|
|
90 |
|
0.40 |
% |
|
$100 and over |
|
|
89,950 |
|
|
454 |
|
0.50 |
% |
|
107,608 |
|
|
550 |
|
0.51 |
% |
|
Total interest-bearing deposits |
|
$ |
1,620,935 |
|
$ |
3,854 |
|
0.24 |
% |
$ |
1,537,127 |
|
$ |
3,640 |
|
0.24 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
|
45,967 |
|
|
28 |
|
0.06 |
% |
|
57,280 |
|
|
36 |
|
0.06 |
% |
|
Other short-term borrowings |
|
|
84,841 |
|
|
466 |
|
0.55 |
% |
|
62,328 |
|
|
178 |
|
0.29 |
% |
|
Long term-debt |
|
|
131,236 |
|
|
7,383 |
|
5.63 |
% |
|
102,884 |
|
|
5,736 |
|
5.58 |
% |
|
Total interest-bearing liabilities |
|
$ |
1,882,979 |
|
$ |
11,731 |
|
0.62 |
% |
$ |
1,759,619 |
|
$ |
9,590 |
|
0.55 |
% |
|
Noninterest-bearing demand accounts |
|
|
1,239,819 |
|
|
|
|
|
|
|
1,077,283 |
|
|
|
|
|
|
|
Total deposits and interest-bearing liabilities |
|
|
3,122,798 |
|
|
|
|
|
|
|
2,836,902 |
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
25,578 |
|
|
|
|
|
|
|
15,228 |
|
|
|
|
|
|
|
Total liabilities |
|
|
3,148,376 |
|
|
|
|
|
|
|
2,852,130 |
|
|
|
|
|
|
|
Total equity |
|
|
287,327 |
|
|
|
|
|
|
|
297,180 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
3,435,703 |
|
|
|
|
|
|
$ |
3,149,310 |
|
|
|
|
|
|
|
Net interest income - taxable equivalent |
|
|
|
|
$ |
123,582 |
|
|
|
|
|
|
$ |
117,397 |
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
3.47 |
% |
|
|
|
|
|
|
3.63 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
3.86 |
% |
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
|
175.75 |
% |
|
|
|
|
|
|
172.83 |
% |
|
|
|
|
|
12 | Page
CoBiz Financial Inc.
December 31, 2016
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(in thousands, except per share amounts)
The Company believes these non-GAAP measures are useful to obtain an understanding of the operating results of the Company’s core business and reflect the basis on which management internally reviews financial performance and capital adequacy. These non-GAAP measures are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to non-GAAP performance measures that may be presented by other companies.
The following table includes non-GAAP financial measures related to tangible common equity, tangible assets and tangible book value per common share. Shareholders’ equity and total assets have been adjusted to exclude intangible assets.
|
|
|
|
At |
|
|||||||||||||
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
|
|
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
|||||
|
|
Shareholders' equity as reported - GAAP |
|
$ |
302,310 |
|
$ |
295,837 |
|
$ |
286,052 |
|
$ |
277,811 |
|
$ |
273,536 |
|
|
|
Intangible assets |
|
|
(1,326) |
|
|
(1,476) |
|
|
(1,626) |
|
|
(1,776) |
|
|
(1,926) |
|
|
A |
Tangible common equity - non-GAAP |
|
$ |
300,984 |
|
$ |
294,361 |
|
$ |
284,426 |
|
$ |
276,035 |
|
$ |
271,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets as reported - GAAP |
|
$ |
3,630,313 |
|
$ |
3,452,498 |
|
$ |
3,457,516 |
|
$ |
3,357,000 |
|
$ |
3,351,767 |
|
|
|
Intangible assets |
|
|
(1,326) |
|
|
(1,476) |
|
|
(1,626) |
|
|
(1,776) |
|
|
(1,926) |
|
|
B |
Total tangible assets - non-GAAP |
|
$ |
3,628,987 |
|
$ |
3,451,022 |
|
$ |
3,455,890 |
|
$ |
3,355,224 |
|
$ |
3,349,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C |
Common shares outstanding |
|
$ |
41,555 |
|
$ |
41,465 |
|
$ |
41,433 |
|
$ |
41,355 |
|
$ |
41,122 |
|
|
A / B |
Tangible common equity to tangible assets - non-GAAP |
|
|
8.29 |
% |
|
8.53 |
% |
|
8.23 |
% |
|
8.23 |
% |
|
8.11 |
% |
|
A / C |
Tangible book value per common share - non-GAAP |
|
$ |
7.24 |
|
$ |
7.10 |
|
$ |
6.86 |
|
$ |
6.67 |
|
$ |
6.60 |
|
The following table includes non-GAAP financial measures used in the computation of the efficiency ratio and the ratio of noninterest income to taxable equivalent operating revenue. The efficiency ratio equals noninterest expense adjusted to exclude gains and losses on other real estate owned (OREO), other assets and investments, divided by the sum of tax equivalent net interest income and noninterest income. To calculate tax equivalent net interest income, the interest earned on tax exempt loans and investment securities has been adjusted to reflect the amount that would have been earned had these investments been subject to normal income taxation.
|
|
|
|
Three months ended |
|
|||||||||||||
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
|
|
(in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
|||||
|
|
Noninterest expense - GAAP |
|
$ |
27,088 |
|
$ |
26,043 |
|
$ |
26,268 |
|
$ |
25,832 |
|
$ |
25,717 |
|
|
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on securities, other assets and OREO |
|
|
33 |
|
|
98 |
|
|
(7) |
|
|
(3) |
|
|
246 |
|
|
D |
Adjusted noninterest expense - non-GAAP |
|
$ |
27,121 |
|
$ |
26,141 |
|
$ |
26,261 |
|
$ |
25,829 |
|
$ |
25,963 |
|
|
|
Net interest income - GAAP |
|
$ |
29,888 |
|
$ |
29,401 |
|
$ |
28,533 |
|
$ |
28,229 |
|
$ |
28,236 |
|
|
E |
Noninterest income - GAAP |
|
|
9,374 |
|
|
9,286 |
|
|
7,812 |
|
|
7,688 |
|
|
7,985 |
|
|
|
Operating revenue |
|
|
39,262 |
|
|
38,687 |
|
|
36,345 |
|
|
35,917 |
|
|
36,221 |
|
|
|
Taxable equivalent adjustment |
|
|
2,097 |
|
|
1,843 |
|
|
1,874 |
|
|
1,717 |
|
|
1,673 |
|
|
F |
Operating revenue - taxable equivalent - non-GAAP |
|
$ |
41,359 |
|
$ |
40,530 |
|
$ |
38,219 |
|
$ |
37,634 |
|
$ |
37,894 |
|
|
D / F |
Efficiency ratio - taxable equivalent - non-GAAP |
|
|
65.57 |
% |
|
64.50 |
% |
|
68.71 |
% |
|
68.63 |
% |
|
68.51 |
% |
|
E / F |
Noninterest income as a percentage of taxable equivalent operating revenue - non-GAAP |
|
|
22.66 |
% |
|
22.91 |
% |
|
20.44 |
% |
|
20.43 |
% |
|
21.07 |
% |
13 | Page