Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | a12-3501_18k.htm |
Exhibit 99.1
CoBiz Financial Announces Fourth Quarter 2011 Results
Reports net income of $22.0 million; reversal of deferred tax asset valuation allowance
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.4 billion in assets, announced net income of $22.0 million for the fourth quarter of 2011, as compared to a net loss of $12.3 million for the fourth quarter of 2010. Net income available to common shareholders was $0.57 per diluted common share versus a net loss of $0.36 per diluted common share in the prior-year quarter.
For the year ended December 31, 2011, the Company reported net income of $33.5 million, or $0.76 per diluted common share, versus a net loss of $22.6 million, or $0.72 loss per diluted common share, for the year ended December 31, 2010.
Financial Highlights — Fourth Quarter 2011
· During the fourth quarter of 2011, the Company fully reversed the $15.6 million deferred tax asset (DTA) valuation allowance originally recorded in the fourth quarter of 2010. The reversal impacted reported earnings per share for the current and prior years’ quarters by $0.42; excluding the DTA valuation allowance, diluted earnings per share for the fourth quarter of 2011 was $0.15, versus $0.06 for the prior-year quarter. (1)
· Excluding the DTA valuation from each period, net income was $6.4 million, a 91.4% improvement over the $3.3 million for the fourth quarter of 2010. (1)
· Core operating results for the fourth quarter also compares favorably to the third quarter of 2011 diluted earnings per common share of $0.05 (which included a charge of $0.05 per diluted common share related to the redemption of preferred stock issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program). Excluding the one-time charge, the Company’s diluted earnings per common share for the third quarter of 2011was $0.10. (1)
· Driving the growth in core operating results was continued improvement in credit quality, stronger fee income and controlled expenses.
(1)Please see accompanying reconciliation of non-GAAP measures to GAAP
Financial Summary
|
|
|
Quarter ended |
|
4Q11 change vs. |
| |||||||||||||||
|
(Dollars in thousands, except per share amounts) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
|
3Q11 |
|
4Q10 |
| |||||||||
|
Net interest income before provision |
|
$ |
23,852 |
|
$ |
23,974 |
|
$ |
24,018 |
|
$ |
(122 |
) |
(0.5 |
)% |
$ |
(166 |
) |
(0.7 |
)% |
|
Provision for loan losses |
|
380 |
|
— |
|
3,519 |
|
380 |
|
— |
|
(3,139 |
) |
(89.2 |
)% | |||||
|
Net interest income after provision |
|
23,472 |
|
23,974 |
|
20,499 |
|
(502 |
) |
(2.1 |
)% |
2,973 |
|
14.5 |
% | |||||
|
Total noninterest income |
|
13,083 |
|
6,051 |
|
10,357 |
|
7,032 |
|
116.2 |
% |
2,726 |
|
26.3 |
% | |||||
|
Total noninterest expense |
|
26,613 |
|
23,230 |
|
27,169 |
|
3,383 |
|
14.6 |
% |
(556 |
) |
(2.0 |
)% | |||||
|
Net income before income taxes |
|
9,942 |
|
6,795 |
|
3,687 |
|
3,147 |
|
46.3 |
% |
6,255 |
|
169.7 |
% | |||||
|
Provision (benefit) for income taxes |
|
(12,012 |
) |
2,352 |
|
15,951 |
|
(14,364 |
) |
(610.7 |
)% |
(27,963 |
) |
(175.3 |
)% | |||||
|
Net income (loss) |
|
21,954 |
|
4,443 |
|
(12,264 |
) |
17,511 |
|
394.1 |
% |
34,218 |
|
(279.0 |
)% | |||||
|
Net income attributable to noncontrolling interest |
|
— |
|
— |
|
(10 |
) |
— |
|
— |
|
10 |
|
(100.0 |
)% | |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
(12,274 |
) |
$ |
17,511 |
|
394.1 |
% |
$ |
34,228 |
|
(278.9 |
)% |
|
Preferred stock dividends |
|
(717 |
) |
(2,535 |
) |
(944 |
) |
1,818 |
|
(71.7 |
)% |
227 |
|
(24.0 |
)% | |||||
|
Net income (loss) available to common shareholders |
|
$ |
21,237 |
|
$ |
1,908 |
|
$ |
(13,218 |
) |
$ |
19,329 |
|
1,013.1 |
% |
$ |
34,455 |
|
(260.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deferred tax valuation allowance |
|
(15,596 |
) |
— |
|
15,596 |
|
(15,596 |
) |
NM |
|
— |
|
NM |
| |||||
|
Accretion of preferred stock discount in quarter of redemption |
|
— |
|
1,753 |
|
— |
|
(1,753 |
) |
NM |
|
— |
|
NM |
| |||||
|
Adjusted net income available to common shareholders - Non-GAAP (1) |
|
$ |
5,641 |
|
$ |
3,661 |
|
$ |
2,378 |
|
$ |
1,980 |
|
54.1 |
% |
$ |
3,263 |
|
137.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings per common share - GAAP |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
(0.36 |
) |
$ |
0.52 |
|
NM |
|
$ |
0.93 |
|
NM |
|
|
Effect of deferred tax valuation allowance |
|
(0.42 |
) |
— |
|
0.42 |
|
(0.42 |
) |
NM |
|
(0.84 |
) |
NM |
| |||||
|
Effect of discount accretion |
|
— |
|
0.05 |
|
— |
|
(0.05 |
) |
NM |
|
— |
|
NM |
| |||||
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.15 |
|
$ |
0.10 |
|
$ |
0.06 |
|
$ |
0.05 |
|
51.0 |
% |
$ |
0.09 |
|
149.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
KEY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.27 |
% |
4.32 |
% |
4.26 |
% |
|
|
|
|
|
|
|
| |||||
|
Efficiency ratio |
|
70.01 |
% |
74.52 |
% |
74.23 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average assets |
|
3.61 |
% |
0.74 |
% |
(1.99 |
)% |
|
|
|
|
|
|
|
| |||||
|
Return on average shareholders' equity |
|
42.89 |
% |
8.50 |
% |
(22.50 |
)% |
|
|
|
|
|
|
|
| |||||
|
Noninterest income as a percentage of operating revenues |
|
35.42 |
% |
20.2 |
% |
30.13 |
% |
|
|
|
|
|
|
|
| |||||
NM = Not Meaningful
“I was very pleased with the improvement in our linked-quarter core operating results that were driven by increased fee income, particularly Investment Banking, which closed 75% of its annual revenue in the fourth quarter,” said Chairman and CEO Steve Bangert. “For the full year, the improvement in our earnings was the result of decreased credit expense reflecting significant progress made in reducing our problem loan levels.
“In 2012, we will continue our focus on increasing noninterest income and improving the operating margins of our fee-based business lines. As important, we will maintain our Commercial Banking marketing efforts that we anticipate will translate into net loan portfolio growth over the coming year.”
Loans
· Loans at December 31, 2011 were $1.6 billion, a decrease of $22.4 million and $6.3 million from the linked- and prior-year quarter ends, respectively.
· Portfolio composition improved as concentrations in Land Acquisition & Development and Construction have decreased. The Commercial & Industrial (C&I) portfolio totaled $569.0 million, or 34.7% of total Loans at December 31, 2011. Commercial real estate accounted for 47.9% of total Loans, with owner-occupied properties tied to the Company’s C&I portfolio, representing 53.7% of this category. Overall, 60.5% of total Loans relate to the Company’s C&I book.
|
|
|
|
|
|
|
|
|
4Q11 change vs. |
| |||||||||||
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
|
3Q11 |
|
4Q10 |
| |||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial & industrial |
|
$ |
568,962 |
|
$ |
587,345 |
|
$ |
565,145 |
|
$ |
(18,383 |
) |
(3.1 |
)% |
$ |
3,817 |
|
0.7 |
% |
|
Real estate - mortgage |
|
784,491 |
|
782,771 |
|
783,675 |
|
1,720 |
|
0.2 |
% |
816 |
|
0.1 |
% | |||||
|
Land acquisition & development |
|
61,977 |
|
67,944 |
|
83,871 |
|
(5,967 |
) |
(8.8 |
)% |
(21,894 |
) |
(26.1 |
)% | |||||
|
Real estate - construction |
|
63,141 |
|
68,442 |
|
86,862 |
|
(5,301 |
) |
(7.7 |
)% |
(23,721 |
) |
(27.3 |
)% | |||||
|
Consumer |
|
116,676 |
|
112,709 |
|
94,607 |
|
3,967 |
|
3.5 |
% |
22,069 |
|
23.3 |
% | |||||
|
Other |
|
42,177 |
|
40,588 |
|
29,567 |
|
1,589 |
|
3.9 |
% |
12,610 |
|
42.6 |
% | |||||
|
Total loans |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
$ |
1,643,727 |
|
$ |
(22,375 |
) |
(1.3 |
)% |
$ |
(6,303 |
) |
(0.4 |
)% |
· New credit of $93.7 million was added during the fourth quarter and advances on existing lines totaled $59.7 million. New and advanced loans were offset by paydowns and maturities of $169.8 million during the fourth quarter. In addition, the Company charged-off, excluding recoveries, $6.0 million during the current quarter.
· While outstanding loans decreased during the fourth quarter, overall credit commitments increased by $10 million, or 1.05% on a linkedquarter basis. In particular, C&I commitments increased by $12.3 million or 1.9% from the third quarter of 2011, and $44.4 million, or 7.25% from the prior-year quarter.
· The increase in gross commitments combined with higher paydowns on pre-existing lines drove line utilization rates below 40%. Notably, C&I line utilization dropped to 39.5%.
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
2Q11 |
|
1Q11 |
|
4Q10 |
| |||||
|
Loans - beginning balance |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
$ |
1,636,164 |
|
$ |
1,643,727 |
|
$ |
1,642,623 |
|
|
New credit extended |
|
93,706 |
|
107,904 |
|
94,037 |
|
72,396 |
|
77,089 |
| |||||
|
Credit advanced |
|
59,709 |
|
58,371 |
|
54,610 |
|
62,227 |
|
65,343 |
| |||||
|
Paydowns & maturities |
|
(169,778 |
) |
(159,991 |
) |
(124,856 |
) |
(135,892 |
) |
(136,191 |
) | |||||
|
Gross loan charge-offs |
|
(6,012 |
) |
(3,435 |
) |
(3,005 |
) |
(6,294 |
) |
(5,137 |
) | |||||
|
Loans - ending balance |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
$ |
1,636,164 |
|
$ |
1,643,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net change - loans outstanding |
|
$ |
(22,375 |
) |
$ |
2,849 |
|
$ |
20,786 |
|
$ |
(7,563 |
) |
$ |
1,104 |
|
|
Net change, excluding charge-offs |
|
(16,363 |
) |
6,284 |
|
23,791 |
|
(1,269 |
) |
6,241 |
| |||||
Investment Securities
· The Company had investment securities available for sale with a carrying value of $623.5 million at December 31, 2011, a $10.7 million increase from September 30, 2011.
· The unrealized gain on the investment portfolio decreased $0.7 million from September 30, 2011, to $10.3 million at December 31, 2011.
Deposits and Customer Repurchase Agreements (Repo)
· Deposit and Customer Repo balances ended the period at $2.0 billion, an increase of $34.0 million on a linked-quarter basis and a decrease of $0.7 million from the prior-year quarter.
· Noninterest-bearing demand accounts were 37.6% of total deposits at December 31, 2011.
· As a result of the Company’s favorable funding mix, the average cost of total deposits for the fourth quarter of 2011 decreased to 36 basis points, compared to 40 basis points in the third quarter of 2011 and 51 basis points in the prior-year quarter.
|
|
|
|
|
|
|
|
|
4Q11 change vs. |
| |||||||||||
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
|
3Q11 |
|
4Q10 |
| |||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
773,826 |
|
$ |
718,689 |
|
$ |
663,572 |
|
$ |
55,137 |
|
7.7 |
% |
$ |
110,254 |
|
16.6 |
% |
|
Savings |
|
10,631 |
|
10,251 |
|
9,144 |
|
380 |
|
3.7 |
% |
1,487 |
|
16.3 |
% | |||||
|
Eurodollar |
|
97,748 |
|
104,971 |
|
105,793 |
|
(7,223 |
) |
(6.9 |
)% |
(8,045 |
) |
(7.6 |
)% | |||||
|
Interest-bearing demand |
|
10,385 |
|
— |
|
— |
|
10,385 |
|
100.0 |
% |
10,385 |
|
100.0 |
% | |||||
|
Certificates of deposits under $100,000 |
|
34,575 |
|
36,126 |
|
41,845 |
|
(1,551 |
) |
(4.3 |
)% |
(7,270 |
) |
(17.4 |
)% | |||||
|
Certificates of deposits $100,000 and over |
|
180,790 |
|
208,965 |
|
229,701 |
|
(28,175 |
) |
(13.5 |
)% |
(48,911 |
) |
(21.3 |
)% | |||||
|
Reciprocal CDARS |
|
89,638 |
|
93,909 |
|
157,679 |
|
(4,271 |
) |
(4.5 |
)% |
(68,041 |
) |
(43.2 |
)% | |||||
|
Brokered deposits |
|
— |
|
— |
|
100 |
|
— |
|
— |
|
(100 |
) |
(100.0 |
)% | |||||
|
Total interest-bearing deposits |
|
1,197,593 |
|
1,172,911 |
|
1,207,834 |
|
24,682 |
|
2.1 |
% |
(10,241 |
) |
(0.8 |
)% | |||||
|
Noninterest-bearing demand deposits |
|
720,813 |
|
707,606 |
|
681,534 |
|
13,207 |
|
1.9 |
% |
39,279 |
|
5.8 |
% | |||||
|
Customer repurchase agreements |
|
127,948 |
|
131,877 |
|
157,690 |
|
(3,929 |
) |
(3.0 |
)% |
(29,742 |
) |
(18.9 |
)% | |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,046,354 |
|
$ |
2,012,394 |
|
$ |
2,047,058 |
|
$ |
33,960 |
|
1.7 |
% |
$ |
(704 |
) |
(0.0 |
)% |
Allowance for Loan and Credit Losses and Credit Quality
· Nonperforming assets (NPAs) were $45.7 million at December 31, 2011, a 26.6% decrease on a linked-quarter basis, and a decrease of 32.6% from the prior-year quarter.
· NPAs to total assets decreased to 1.89% at December 31, 2011, from 2.58% at September 30, 2011 and 2.83% at December 31, 2010.
· As a result of the improvement in credit quality measures, the Allowance for Loan and Credit Losses (Allowance) to Loan ratio decreased to 3.40%. The coverage of Allowance to nonperforming loans increased to over 200%.
· NPAs are nearly evenly distributed between the Colorado and Arizona markets.
· Net charge-offs for the period increased to $4.4 million from $2.2 million in the linked-quarter and $3.0 million in the prior-year quarter. Charge-offs during the current quarter were concentrated in two credits previously identified as impaired and reserved for.
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
| |||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
| |||
|
Beginning allowance for loan losses |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
65,325 |
|
|
Provision for loan losses |
|
380 |
|
— |
|
3,519 |
| |||
|
Net charge-offs |
|
(4,446 |
) |
(2,225 |
) |
(2,952 |
) | |||
|
Ending allowance for loan losses |
|
$ |
55,629 |
|
$ |
59,695 |
|
$ |
65,892 |
|
|
|
|
|
|
|
|
|
| |||
|
Beginning allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
|
Provision for credit losses |
|
(26 |
) |
— |
|
(94 |
) | |||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
61 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
| |||
|
Total provision for loan and credit losses |
|
$ |
354 |
|
$ |
— |
|
$ |
3,425 |
|
|
|
|
|
|
|
|
|
| |||
|
CREDIT QUALITY |
|
|
|
|
|
|
| |||
|
Nonaccrual loans |
|
$ |
27,024 |
|
$ |
41,365 |
|
$ |
42,532 |
|
|
Loans 90 days or more past due and accruing interest |
|
212 |
|
— |
|
202 |
| |||
|
Total nonperforming loans |
|
27,236 |
|
41,365 |
|
42,734 |
| |||
|
OREO and repossessed assets |
|
18,502 |
|
20,986 |
|
25,095 |
| |||
|
Total nonperforming assets |
|
$ |
45,738 |
|
$ |
62,351 |
|
$ |
67,829 |
|
|
|
|
|
|
|
|
|
| |||
|
Performing renegotiated loans |
|
$ |
20,633 |
|
$ |
659 |
|
$ |
16,488 |
|
|
|
|
|
|
|
|
|
| |||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
| |||
|
Nonperforming assets to total assets |
|
1.89 |
% |
2.58 |
% |
2.83 |
% | |||
|
Nonperforming loans to total loans |
|
1.66 |
% |
2.49 |
% |
2.60 |
% | |||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.76 |
% |
3.71 |
% |
4.06 |
% | |||
|
Allowance for loan and credit losses to total loans |
|
3.40 |
% |
3.60 |
% |
4.01 |
% | |||
|
Allowance for loan and credit losses to nonperforming loans |
|
204.38 |
% |
144.46 |
% |
154.33 |
% | |||
Shareholders’ Equity
· Total shareholders’ equity increased by $20.7 million on a linked-quarter basis. The increase was primarily due to the reversal of the $15.6 million DTA valuation allowance originally recorded in the fourth quarter of 2010.
· The recapture of the DTA allowance, combined with the Company’s positive core earnings, increased tangible book value per share to $4.30. (1)
· The Board of Directors of the Company declared a $0.01 cash dividend on our common stock to be paid on February 6, 2012, to shareholders of record on January 30, 2012.
|
(in thousands, except per share amounts) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
| |||
|
EQUITY MEASURES |
|
|
|
|
|
|
| |||
|
Common shareholders’ equity |
|
$ |
162,744 |
|
$ |
141,982 |
|
$ |
139,324 |
|
|
Total shareholders’ equity |
|
220,082 |
|
199,341 |
|
201,738 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Common shares outstanding at period end |
|
37,090 |
|
37,067 |
|
36,877 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Book value per common share |
|
$ |
4.39 |
|
$ |
3.83 |
|
$ |
3.78 |
|
|
Tangible book value per common share * |
|
$ |
4.30 |
|
$ |
3.73 |
|
$ |
3.67 |
|
|
|
|
|
|
|
|
|
| |||
|
Tangible common equity to tangible assets * |
|
6.58 |
% |
5.74 |
% |
5.65 |
% | |||
|
Tangible equity to tangible assets * |
|
8.95 |
% |
8.12 |
% |
8.27 |
% | |||
|
Tier 1 capital ratio |
|
|
** |
13.21 |
% |
12.90 |
% | |||
|
Total risk-based capital ratio |
|
|
** |
15.68 |
% |
15.50 |
% | |||
* See accompanying reconciliation of non-GAAP measures to GAAP
** Ratios unavailable at the time of release.
Net Interest Income and Margin
· Net interest income for the fourth quarter of 2011 decreased $0.1 million on a tax equivalent basis from the prior linked-quarter, to $24.2 million.
· The fourth quarter 2011 net interest margin (NIM) of 4.27% was relatively level with the fourth quarter of 2010 NIM of 4.26%, but decreased five basis points from the prior linked-quarter NIM of 4.32%, primarily due to a shift in the earning asset mix.
· Average earning assets of $2.25 billion increased $16.0 million during the fourth quarter of 2011 compared to the prior linked-quarter.
· The average net loan portfolio decreased $2.3 million and the average investment portfolio increased $14.9 million during the fourth quarter of 2011 compared to the prior-linked quarter.
· The yield on average earning assets in the fourth quarter of 2011 decreased eight basis points to 4.69%, compared to 4.77% in the third quarter of 2011.
· The rate paid on average interest-bearing liabilities decreased seven basis points on a linked-quarter basis to 0.92%. The Company continues to see a reduction in higher cost CD balances while maintaining a significant portion of its funding in the form of noninterest-bearing demand balances.
· Including noninterest-bearing demand accounts, the rate paid on average deposits was 0.36% in the fourth quarter of 2011 compared to 0.40% and 0.51% in the respective linked- and prior-year quarters.
Noninterest Income
· As a percentage of total operating revenue, noninterest income increased to 35.4% for the fourth quarter of 2011 from 20.2% for the third quarter of 2011 and 30.1% for the fourth quarter of 2010. For the full year, noninterest income to operating revenue was 27.2% for 2011 as compared to 26.6% for 2010.
· The linked-quarter increase in noninterest income for the fourth quarter of 2011 is primarily attributable to Investment Banking revenue, as well as increases in earnings on equity method investments, valuations on customer swaps and insurance revenue.
· Given the transactional nature of some of the Company’s noninterest income sources, quarterly noninterest income can be volatile and the timing of fee recognition is difficult to predict. The Investment Banking segment recognized $7.2 million of revenue in 2011, of which $5.4 million, or 75%, was recognized in the fourth quarter.
|
|
|
Quarter ended |
|
4Q11 change vs. |
| |||||||||||||||
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
|
3Q11 |
|
4Q10 |
| |||||||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,223 |
|
$ |
1,274 |
|
$ |
1,178 |
|
$ |
(51 |
) |
(4.0 |
)% |
$ |
45 |
|
3.8 |
% |
|
Investment advisory and trust income |
|
1,298 |
|
1,291 |
|
1,315 |
|
7 |
|
0.5 |
% |
(17 |
) |
(1.3 |
)% | |||||
|
Insurance income |
|
3,501 |
|
2,952 |
|
3,139 |
|
549 |
|
18.6 |
% |
362 |
|
11.5 |
% | |||||
|
Investment banking income |
|
5,431 |
|
205 |
|
2,766 |
|
5,226 |
|
2,549.3 |
% |
2,665 |
|
96.3 |
% | |||||
|
Other income |
|
1,630 |
|
329 |
|
1,959 |
|
1,301 |
|
395.4 |
% |
(329 |
) |
(16.8 |
)% | |||||
|
Total noninterest income |
|
$ |
13,083 |
|
$ |
6,051 |
|
$ |
10,357 |
|
$ |
7,032 |
|
116.2 |
% |
$ |
2,726 |
|
26.3 |
% |
Operating Expenses
· The Company’s efficiency ratio for the fourth quarter of 2011 was 70.0%, compared to 74.5% for the third quarter of 2011 and 74.2% for the fourth quarter of 2010. For the full year, the efficiency ratio was 73.0% for 2011, as compared to 76.5% for 2010.
· Salaries and employee benefits increased $3.6 million in the fourth quarter of 2011 on a linked-quarter basis. The increase was primarily due to higher bonuses and commission expense related to higher fourth quarter revenue levels, as well as an increase in medical claims for the Company’s self-insured plan.
· Other operating expenses decreased $0.3 million on a linked-quarter basis primarily due to decreases in loan workout- and OREO-related costs.
· Included in net loss on securities, other assets and OREO is a $0.7 million charge related to the closure of a branch location in Surprise, Arizona.
|
|
|
Quarter ended |
|
4Q11 change vs. |
| |||||||||||||||
|
(in thousands) |
|
4Q11 |
|
3Q11 |
|
4Q10 |
|
3Q11 |
|
4Q10 |
| |||||||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
17,826 |
|
$ |
14,212 |
|
$ |
15,937 |
|
$ |
3,614 |
|
25.4 |
% |
$ |
1,889 |
|
11.9 |
% |
|
Stock-based compensation expense |
|
357 |
|
372 |
|
411 |
|
(15 |
) |
(4.0 |
)% |
(54 |
) |
(13.1 |
)% | |||||
|
Occupancy expenses, premises and equipment |
|
3,576 |
|
3,358 |
|
3,289 |
|
218 |
|
6.5 |
% |
287 |
|
8.7 |
% | |||||
|
Amortization of intangibles |
|
159 |
|
160 |
|
160 |
|
(1 |
) |
(0.6 |
)% |
(1 |
) |
(0.6 |
)% | |||||
|
Other operating expenses |
|
3,940 |
|
4,272 |
|
5,712 |
|
(332 |
) |
(7.8 |
)% |
(1,772 |
) |
(31.0 |
)% | |||||
|
Net loss on securities, other assets and OREO |
|
755 |
|
856 |
|
1,660 |
|
(101 |
) |
(11.8 |
)% |
(905 |
) |
(54.5 |
)% | |||||
|
Total noninterest expense |
|
$ |
26,613 |
|
$ |
23,230 |
|
$ |
27,169 |
|
$ |
3,383 |
|
14.6 |
% |
$ |
(556 |
) |
(2.0 |
)% |
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, January 27, 2012, 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=84287 or by telephone at 877.493.9121, (conference ID # 38568305). 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 $2.4 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides commercial banking services through Colorado Business Bank and Arizona Business Bank; wealth planning and investment management through CoBiz Wealth Management, and trust services through CoBiz Trust; property and casualty insurance brokerage and employee benefits through CoBiz Insurance; investment banking services through Green Manning & Bunch; and executive benefits consulting and wealth transfer services through Financial Designs Ltd.
Forward-Looking Information
This release contains forward-looking statements that describe CoBiz’s future plans, strategies and expectations. All forward-looking statements are based on assumptions and
involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “would”, “could” or “may.” Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
· Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Form 10-K.
· Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.
· Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.
· Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and related expenses.
· Our ability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects.
· Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.
· Our net interest margin may be negatively impacted if we are unable to profitably deploy excess cash into higher yielding loans or investments.
· The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.
· Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.
· Changes in legislative or regulatory requirements applicable to us and our subsidiaries could increase costs, limit certain operations and adversely affect results of operations.
· Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
| ||||||||
|
(in thousands, except per share amounts) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
27,284 |
|
$ |
28,252 |
|
$ |
111,264 |
|
$ |
115,979 |
|
|
Interest expense |
|
3,432 |
|
4,234 |
|
14,863 |
|
19,148 |
| ||||
|
NET INTEREST INCOME BEFORE PROVISION |
|
23,852 |
|
24,018 |
|
96,401 |
|
96,831 |
| ||||
|
Provision for loan losses |
|
380 |
|
3,519 |
|
4,002 |
|
35,127 |
| ||||
|
NET INTEREST INCOME AFTER PROVISION |
|
23,472 |
|
20,499 |
|
92,399 |
|
61,704 |
| ||||
|
Noninterest income |
|
13,083 |
|
10,357 |
|
35,956 |
|
35,008 |
| ||||
|
Noninterest expense |
|
26,613 |
|
27,169 |
|
100,547 |
|
109,112 |
| ||||
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
9,942 |
|
3,687 |
|
27,808 |
|
(12,400 |
) | ||||
|
Provision (benefit) for income taxes |
|
(12,012 |
) |
15,951 |
|
(5,654 |
) |
10,028 |
| ||||
|
NET INCOME (LOSS) BEFORE NONCONTROLLING INTEREST |
|
21,954 |
|
(12,264 |
) |
33,462 |
|
(22,428 |
) | ||||
|
Net income attributable to noncontrolling interest |
|
— |
|
(10 |
) |
— |
|
(209 |
) | ||||
|
NET INCOME (LOSS) |
|
$ |
21,954 |
|
$ |
(12,274 |
) |
$ |
33,462 |
|
$ |
(22,637 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Preferred stock dividends |
|
(717 |
) |
(944 |
) |
(5,147 |
) |
(3,764 |
) | ||||
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
21,237 |
|
$ |
(13,218 |
) |
$ |
28,315 |
|
$ |
(26,401 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS (LOSS) PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
$ |
0.57 |
|
$ |
(0.36 |
) |
$ |
0.76 |
|
$ |
(0.72 |
) |
|
DILUTED |
|
$ |
0.57 |
|
$ |
(0.36 |
) |
$ |
0.76 |
|
$ |
(0.72 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
| ||||
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
37,090 |
|
36,877 |
| ||||
|
Book value per common share |
|
|
|
|
|
$ |
4.39 |
|
$ |
3.78 |
| ||
|
Tangible book value per common share * |
|
|
|
|
|
$ |
4.30 |
|
$ |
3.67 |
| ||
|
Tangible common equity to tangible assets * |
|
|
|
|
|
6.58 |
% |
5.65 |
% | ||||
|
Tangible equity to tangible assets * |
|
|
|
|
|
8.95 |
% |
8.27 |
% | ||||
|
* See accompanying Non-GAAP reconciliation. |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
|
|
|
|
$ |
2,423,504 |
|
$ |
2,395,088 |
|
|
Loans |
|
|
|
|
|
1,637,424 |
|
1,643,727 |
| ||
|
Intangible assets |
|
|
|
|
|
3,399 |
|
4,119 |
| ||
|
Deposits |
|
|
|
|
|
1,918,406 |
|
1,889,368 |
| ||
|
Subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||
|
Common shareholders’ equity |
|
|
|
|
|
162,744 |
|
139,324 |
| ||
|
Total shareholders’ equity |
|
|
|
|
|
220,082 |
|
201,738 |
| ||
|
Interest-earning assets |
|
|
|
|
|
2,239,700 |
|
2,239,254 |
| ||
|
Interest-bearing liabilities |
|
|
|
|
|
1,438,691 |
|
1,472,686 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
| ||
|
Average assets |
|
|
|
|
|
$ |
2,403,960 |
|
$ |
2,434,002 |
|
|
Average loans |
|
|
|
|
|
1,651,247 |
|
1,693,546 |
| ||
|
Average deposits |
|
|
|
|
|
1,905,095 |
|
1,938,670 |
| ||
|
Average subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||
|
Average shareholders’ equity |
|
|
|
|
|
206,193 |
|
222,656 |
| ||
|
Average interest-earning assets |
|
|
|
|
|
2,242,395 |
|
2,225,698 |
| ||
|
Average interest-bearing liabilities |
|
|
|
|
|
1,456,302 |
|
1,596,709 |
| ||
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
| ||||||
|
(in thousands) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Net interest margin |
|
4.27 |
% |
4.26 |
% |
4.35 |
% |
4.37 |
% | ||
|
Efficiency ratio |
|
70.01 |
% |
74.23 |
% |
73.01 |
% |
76.49 |
% | ||
|
Return on average assets |
|
3.61 |
% |
(1.99 |
)% |
1.39 |
% |
(0.93 |
)% | ||
|
Return on average shareholders’ equity |
|
42.89 |
% |
(22.50 |
)% |
16.23 |
% |
(10.17 |
)% | ||
|
Noninterest income as a percentage of operating revenues |
|
35.42 |
% |
30.13 |
% |
27.17 |
% |
26.55 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming loans |
|
|
|
|
|
|
|
|
| ||
|
Nonaccrual loans |
|
|
|
|
|
$ |
27,024 |
|
$ |
42,532 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
|
|
|
212 |
|
202 |
| ||
|
Total nonperforming loans |
|
|
|
|
|
27,236 |
|
42,734 |
| ||
|
OREO & repossessed assets |
|
|
|
|
|
18,502 |
|
25,095 |
| ||
|
Total nonperforming assets |
|
|
|
|
|
$ |
45,738 |
|
$ |
67,829 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Performing renegotiated loans |
|
|
|
|
|
$ |
20,633 |
|
$ |
16,488 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Charge-offs |
|
|
|
|
|
$ |
(18,746 |
) |
$ |
(50,627 |
) |
|
Recoveries |
|
|
|
|
|
4,481 |
|
6,276 |
| ||
|
Net charge-offs |
|
|
|
|
|
$ |
(14,265 |
) |
$ |
(44,351 |
) |
|
|
|
|
|
|
|
|
|
|
| ||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming assets to total assets |
|
|
|
|
|
1.89 |
% |
2.83 |
% | ||
|
Nonperforming loans to total loans |
|
|
|
|
|
1.66 |
% |
2.60 |
% | ||
|
Nonperforming loans and OREO to total loans and OREO |
|
|
|
|
|
2.76 |
% |
4.06 |
% | ||
|
Allowance for loan and credit losses to total loans |
|
|
|
|
|
3.40 |
% |
4.01 |
% | ||
|
Allowance for loan and credit losses to nonperforming loans |
|
|
|
|
|
204.38 |
% |
154.33 |
% | ||
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
| ||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
| ||||
|
Commercial |
|
$ |
1,101 |
|
$ |
2,004 |
|
$ |
3,105 |
|
$ |
568,962 |
|
0.55 |
% |
|
Real estate - mortgage |
|
1,412 |
|
7,883 |
|
9,295 |
|
784,491 |
|
1.18 |
% | ||||
|
Land acquisition & development |
|
2,964 |
|
2,148 |
|
5,112 |
|
61,977 |
|
8.25 |
% | ||||
|
Real estate - construction |
|
6,085 |
|
900 |
|
6,985 |
|
63,141 |
|
11.06 |
% | ||||
|
Consumer |
|
345 |
|
2,394 |
|
2,739 |
|
116,676 |
|
2.35 |
% | ||||
|
Other loans |
|
— |
|
— |
|
— |
|
42,177 |
|
0.00 |
% | ||||
|
OREO & repossessed assets |
|
10,887 |
|
7,615 |
|
18,502 |
|
18,502 |
|
— |
| ||||
|
NPAs |
|
$ |
22,794 |
|
$ |
22,944 |
|
$ |
45,738 |
|
$ |
1,655,926 |
|
2.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans |
|
$ |
1,112,219 |
|
$ |
525,205 |
|
$ |
1,637,424 |
|
|
|
|
| |
|
Total loans and OREO |
|
1,123,106 |
|
532,820 |
|
1,655,926 |
|
|
|
|
| ||||
|
Nonperforming loans to loans |
|
1.07 |
% |
2.92 |
% |
1.66 |
% |
|
|
|
| ||||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.03 |
% |
4.31 |
% |
2.76 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
| ||||||
|
|
|
Commercial |
|
Investment |
|
Wealth |
|
|
|
Support and |
|
|
| ||||||
|
(in thousands, except per share amounts) |
|
Banking |
|
Banking |
|
Management |
|
Insurance |
|
Other |
|
Consolidated |
| ||||||
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
25,266 |
|
$ |
2 |
|
$ |
(3 |
) |
$ |
1 |
|
$ |
(1,414 |
) |
$ |
23,852 |
|
|
Quarter ended September 30, 2011 |
|
25,642 |
|
1 |
|
(2 |
) |
— |
|
(1,667 |
) |
23,974 |
| ||||||
|
Annualized quarterly growth |
|
(5.8 |
)% |
396.7 |
% |
(198.4 |
)% |
— |
|
60.2 |
% |
(2.0 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2010 |
|
$ |
25,213 |
|
$ |
3 |
|
$ |
(10 |
) |
$ |
(1 |
) |
$ |
(1,187 |
) |
$ |
24,018 |
|
|
Annual growth |
|
.2 |
% |
(33.3 |
)% |
70.0 |
% |
200.0 |
% |
(19.1 |
)% |
(.7 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
2,808 |
|
$ |
5,431 |
|
$ |
2,610 |
|
$ |
2,194 |
|
$ |
40 |
|
$ |
13,083 |
|
|
Quarter ended September 30, 2011 |
|
1,653 |
|
205 |
|
2,154 |
|
2,089 |
|
(50 |
) |
6,051 |
| ||||||
|
Annualized quarterly growth |
|
277.2 |
% |
NM |
|
84.0 |
% |
19.9 |
% |
714.1 |
% |
461.1 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2010 |
|
$ |
2,920 |
|
$ |
2,766 |
|
$ |
2,458 |
|
$ |
1,996 |
|
$ |
217 |
|
$ |
10,357 |
|
|
Annual growth |
|
(3.8 |
)% |
96.3 |
% |
6.2 |
% |
9.9 |
% |
(81.6 |
)% |
26.3 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
10,003 |
|
$ |
1,370 |
|
$ |
285 |
|
$ |
129 |
|
$ |
10,167 |
|
$ |
21,954 |
|
|
Quarter ended September 30, 2011 |
|
8,106 |
|
(456 |
) |
(199 |
) |
(178 |
) |
(2,830 |
) |
4,443 |
| ||||||
|
Annualized quarterly growth |
|
92.8 |
% |
NM |
|
964.9 |
% |
684.3 |
% |
NM |
|
NM |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2010 |
|
$ |
(756 |
) |
$ |
243 |
|
$ |
(480 |
) |
$ |
(570 |
) |
$ |
(10,711 |
) |
$ |
(12,274 |
) |
|
Annual growth |
|
1,423.1 |
% |
463.8 |
% |
159.4 |
% |
122.6 |
% |
194.9 |
% |
278.9 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Earnings per share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2011 |
|
$ |
0.27 |
|
$ |
0.03 |
|
$ |
0.01 |
|
$ |
— |
|
$ |
0.26 |
|
$ |
0.57 |
|
|
Quarter ended September 30, 2011 |
|
0.22 |
|
(0.01 |
) |
(0.01 |
) |
— |
|
(0.15 |
) |
0.05 |
| ||||||
|
Annualized quarterly growth |
|
90.2 |
% |
NM |
|
793.5 |
% |
— |
|
NM |
|
NM |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended December 31, 2010 |
|
$ |
(0.02 |
) |
$ |
0.01 |
|
$ |
(0.01 |
) |
$ |
(0.02 |
) |
$ |
(0.32 |
) |
$ |
(0.36 |
) |
|
Annual growth |
|
1,450.0 |
% |
200.0 |
% |
200.0 |
% |
100.0 |
% |
181.3 |
% |
258.3 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,637,424 |
| |||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
1,659,799 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
(5.3 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,643,727 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
(.4 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total deposits and customer repurchase agreements |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,046,354 |
| |||||
|
At September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
2,012,394 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
6.7 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,047,058 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
(.0 |
)% | ||||||
NM = Not Meaningful
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands) |
|
2011 |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
COMMERCIAL BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
27,214 |
|
$ |
27,797 |
|
$ |
27,964 |
|
$ |
27,945 |
|
$ |
27,977 |
|
|
Total interest expense |
|
1,948 |
|
2,155 |
|
2,387 |
|
2,508 |
|
2,764 |
| |||||
|
Net interest income |
|
25,266 |
|
25,642 |
|
25,577 |
|
25,437 |
|
25,213 |
| |||||
|
Provision for loan losses |
|
727 |
|
(2,068 |
) |
584 |
|
1,327 |
|
4,677 |
| |||||
|
Net interest income (loss) after provision |
|
24,539 |
|
27,710 |
|
24,993 |
|
24,110 |
|
20,536 |
| |||||
|
Noninterest income |
|
2,808 |
|
1,653 |
|
3,065 |
|
2,459 |
|
2,920 |
| |||||
|
Noninterest expense |
|
8,616 |
|
7,403 |
|
7,526 |
|
8,098 |
|
9,560 |
| |||||
|
Income (loss) before income taxes |
|
18,731 |
|
21,960 |
|
20,532 |
|
18,471 |
|
13,896 |
| |||||
|
Provision (benefit) for income taxes |
|
2,812 |
|
8,149 |
|
7,409 |
|
6,952 |
|
9,338 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
15,919 |
|
$ |
13,811 |
|
$ |
13,123 |
|
$ |
11,519 |
|
$ |
4,558 |
|
|
Management fees and overhead allocations, net of tax |
|
5,916 |
|
5,705 |
|
5,213 |
|
6,145 |
|
5,314 |
| |||||
|
Net income (loss) |
|
$ |
10,003 |
|
$ |
8,106 |
|
$ |
7,910 |
|
$ |
5,374 |
|
$ |
(756 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INVESTMENT BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
2 |
|
$ |
1 |
|
$ |
2 |
|
$ |
3 |
|
$ |
3 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
2 |
|
1 |
|
2 |
|
3 |
|
3 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
2 |
|
1 |
|
2 |
|
3 |
|
3 |
| |||||
|
Noninterest income |
|
5,431 |
|
205 |
|
857 |
|
744 |
|
2,766 |
| |||||
|
Noninterest expense |
|
3,160 |
|
868 |
|
980 |
|
893 |
|
2,294 |
| |||||
|
Income (loss) before income taxes |
|
2,273 |
|
(662 |
) |
(121 |
) |
(146 |
) |
475 |
| |||||
|
Provision (benefit) for income taxes |
|
870 |
|
(253 |
) |
(52 |
) |
(58 |
) |
191 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
1,403 |
|
$ |
(409 |
) |
$ |
(69 |
) |
$ |
(88 |
) |
$ |
284 |
|
|
Management fees and overhead allocations, net of tax |
|
33 |
|
47 |
|
36 |
|
35 |
|
41 |
| |||||
|
Net income (loss) |
|
$ |
1,370 |
|
$ |
(456 |
) |
$ |
(105 |
) |
$ |
(123 |
) |
$ |
243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
|
Total interest expense |
|
3 |
|
2 |
|
12 |
|
14 |
|
11 |
| |||||
|
Net interest income |
|
(3 |
) |
(2 |
) |
(11 |
) |
(13 |
) |
(10 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(3 |
) |
(2 |
) |
(11 |
) |
(13 |
) |
(10 |
) | |||||
|
Noninterest income |
|
2,610 |
|
2,154 |
|
2,381 |
|
2,280 |
|
2,458 |
| |||||
|
Noninterest expense |
|
2,187 |
|
2,191 |
|
2,388 |
|
2,388 |
|
2,654 |
| |||||
|
Income (loss) before income taxes |
|
420 |
|
(39 |
) |
(18 |
) |
(121 |
) |
(206 |
) | |||||
|
Provision (benefit) for income taxes |
|
(21 |
) |
(4 |
) |
(14 |
) |
(54 |
) |
98 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
441 |
|
$ |
(35 |
) |
$ |
(4 |
) |
$ |
(67 |
) |
$ |
(304 |
) |
|
Management fees and overhead allocations, net of tax |
|
156 |
|
164 |
|
157 |
|
151 |
|
176 |
| |||||
|
Net income (loss) |
|
$ |
285 |
|
$ |
(199 |
) |
$ |
(161 |
) |
$ |
(218 |
) |
$ |
(480 |
) |
|
INSURANCE |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
1 |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
|
Total interest expense |
|
— |
|
1 |
|
1 |
|
2 |
|
2 |
| |||||
|
Net interest income |
|
1 |
|
— |
|
(1 |
) |
(2 |
) |
(1 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
— |
|
(1 |
) |
(2 |
) |
(1 |
) | |||||
|
Noninterest income |
|
2,194 |
|
2,089 |
|
2,450 |
|
2,539 |
|
1,996 |
| |||||
|
Noninterest expense |
|
2,300 |
|
2,181 |
|
2,307 |
|
2,361 |
|
2,333 |
| |||||
|
Income (loss) before income taxes |
|
(105 |
) |
(92 |
) |
142 |
|
176 |
|
(338 |
) | |||||
|
Provision (benefit) for income taxes |
|
(314 |
) |
(29 |
) |
58 |
|
71 |
|
145 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
209 |
|
$ |
(63 |
) |
$ |
84 |
|
$ |
105 |
|
$ |
(483 |
) |
|
Management fees and overhead allocations, net of tax |
|
80 |
|
115 |
|
87 |
|
86 |
|
87 |
| |||||
|
Net income (loss) |
|
$ |
129 |
|
$ |
(178 |
) |
$ |
(3 |
) |
$ |
19 |
|
$ |
(570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CORPORATE SUPPORT AND OTHER |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
67 |
|
$ |
(187 |
) |
$ |
210 |
|
$ |
242 |
|
$ |
270 |
|
|
Total interest expense |
|
1,481 |
|
1,480 |
|
1,446 |
|
1,423 |
|
1,457 |
| |||||
|
Net interest income |
|
(1,414 |
) |
(1,667 |
) |
(1,236 |
) |
(1,181 |
) |
(1,187 |
) | |||||
|
Provision for loan losses |
|
(347 |
) |
2,068 |
|
1,398 |
|
313 |
|
(1,158 |
) | |||||
|
Net interest income (loss) after provision |
|
(1,067 |
) |
(3,735 |
) |
(2,634 |
) |
(1,494 |
) |
(29 |
) | |||||
|
Noninterest income |
|
40 |
|
(50 |
) |
37 |
|
10 |
|
217 |
| |||||
|
Noninterest expense |
|
10,350 |
|
10,587 |
|
12,052 |
|
11,711 |
|
10,328 |
| |||||
|
Income (loss) before income taxes |
|
(11,377 |
) |
(14,372 |
) |
(14,649 |
) |
(13,195 |
) |
(10,140 |
) | |||||
|
Provision (benefit) for income taxes |
|
(15,359 |
) |
(5,511 |
) |
(5,354 |
) |
(4,952 |
) |
6,179 |
| |||||
|
Net income (loss) before management Allowance for loan and credit losses to total loans |
|
$ |
3,982 |
|
$ |
(8,861 |
) |
$ |
(9,295 |
) |
$ |
(8,243 |
) |
$ |
(16,319 |
) |
|
Management fees and overhead allocations, net of tax |
|
(6,185 |
) |
(6,031 |
) |
(5,493 |
) |
(6,417 |
) |
(5,618 |
) | |||||
|
Net income (loss) |
|
$ |
10,167 |
|
$ |
(2,830 |
) |
$ |
(3,802 |
) |
$ |
(1,826 |
) |
$ |
(10,701 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
(10 |
) | |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
10,167 |
|
$ |
(2,830 |
) |
$ |
(3,802 |
) |
$ |
(1,826 |
) |
$ |
(10,711 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
27,284 |
|
$ |
27,612 |
|
$ |
28,177 |
|
$ |
28,191 |
|
$ |
28,252 |
|
|
Total interest expense |
|
3,432 |
|
3,638 |
|
3,846 |
|
3,947 |
|
4,234 |
| |||||
|
Net interest income |
|
23,852 |
|
23,974 |
|
24,331 |
|
24,244 |
|
24,018 |
| |||||
|
Provision for loan losses |
|
380 |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
| |||||
|
Net interest income (loss) after provision |
|
23,472 |
|
23,974 |
|
22,349 |
|
22,604 |
|
20,499 |
| |||||
|
Noninterest income |
|
13,083 |
|
6,051 |
|
8,790 |
|
8,032 |
|
10,357 |
| |||||
|
Noninterest expense |
|
26,613 |
|
23,230 |
|
25,253 |
|
25,451 |
|
27,169 |
| |||||
|
Income (loss) before income taxes |
|
9,942 |
|
6,795 |
|
5,886 |
|
5,185 |
|
3,687 |
| |||||
|
Provision (benefit) for income taxes |
|
(12,012 |
) |
2,352 |
|
2,047 |
|
1,959 |
|
15,951 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,264 |
) |
|
Management fees and overhead allocations, net of tax |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net income (loss) |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,264 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
(10 |
) | |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,274 |
) |
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands, except per share amounts) |
|
2011 |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
| |||||
|
Interest income |
|
$ |
27,284 |
|
$ |
27,612 |
|
$ |
28,177 |
|
$ |
28,191 |
|
$ |
28,252 |
|
|
Interest expense |
|
3,432 |
|
3,638 |
|
3,846 |
|
3,947 |
|
4,234 |
| |||||
|
Net interest income before provision |
|
23,852 |
|
23,974 |
|
24,331 |
|
24,244 |
|
24,018 |
| |||||
|
Provision for loan losses |
|
380 |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
| |||||
|
Net interest income after provision |
|
23,472 |
|
23,974 |
|
22,349 |
|
22,604 |
|
20,499 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,223 |
|
$ |
1,274 |
|
$ |
1,224 |
|
$ |
1,239 |
|
$ |
1,178 |
|
|
Investment advisory and trust income |
|
1,298 |
|
1,291 |
|
1,543 |
|
1,426 |
|
1,315 |
| |||||
|
Insurance income |
|
3,501 |
|
2,952 |
|
3,288 |
|
3,393 |
|
3,139 |
| |||||
|
Investment banking income |
|
5,431 |
|
205 |
|
857 |
|
744 |
|
2,766 |
| |||||
|
Other income |
|
1,630 |
|
329 |
|
1,878 |
|
1,230 |
|
1,959 |
| |||||
|
Total noninterest income |
|
13,083 |
|
6,051 |
|
8,790 |
|
8,032 |
|
10,357 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
17,826 |
|
$ |
14,212 |
|
$ |
15,953 |
|
$ |
14,723 |
|
$ |
15,937 |
|
|
Stock-based compensation expense |
|
357 |
|
372 |
|
341 |
|
424 |
|
411 |
| |||||
|
Occupancy expenses, premises and equipment |
|
3,576 |
|
3,358 |
|
3,322 |
|
3,354 |
|
3,289 |
| |||||
|
Amortization of intangibles |
|
159 |
|
160 |
|
159 |
|
160 |
|
160 |
| |||||
|
Other operating expenses |
|
3,940 |
|
4,272 |
|
4,535 |
|
5,428 |
|
5,712 |
| |||||
|
Net loss on securities, other assets and OREO |
|
755 |
|
856 |
|
943 |
|
1,362 |
|
1,660 |
| |||||
|
Total noninterest expense |
|
26,613 |
|
23,230 |
|
25,253 |
|
25,451 |
|
27,169 |
| |||||
|
Net income (loss) before income taxes |
|
9,942 |
|
6,795 |
|
5,886 |
|
5,185 |
|
3,687 |
| |||||
|
Provision (benefit) for income taxes |
|
(12,012 |
) |
2,352 |
|
2,047 |
|
1,959 |
|
15,951 |
| |||||
|
Net income (loss) |
|
21,954 |
|
4,443 |
|
3,839 |
|
3,226 |
|
(12,264 |
) | |||||
|
Net income attributable to noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
(10 |
) | |||||
|
Net income (loss) after noncontrolling interest |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
$ |
3,226 |
|
$ |
(12,274 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Preferred stock dividends |
|
(717 |
) |
(2,535 |
) |
(949 |
) |
(946 |
) |
(944 |
) | |||||
|
Net income (loss) available to common shareholders |
|
$ |
21,237 |
|
$ |
1,908 |
|
$ |
2,890 |
|
$ |
2,280 |
|
$ |
(13,218 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings (loss) per common share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
0.08 |
|
$ |
0.06 |
|
$ |
(0.36 |
) |
|
Diluted |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
0.08 |
|
$ |
0.06 |
|
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.27 |
% |
4.32 |
% |
4.40 |
% |
4.41 |
% |
4.26 |
% | |||||
|
Efficiency ratio |
|
70.01 |
% |
74.52 |
% |
73.40 |
% |
74.63 |
% |
74.23 |
% | |||||
|
Return on average assets |
|
3.61 |
% |
0.74 |
% |
0.64 |
% |
0.54 |
% |
(1.99 |
)% | |||||
|
Return on average shareholders’ equity |
|
42.89 |
% |
8.50 |
% |
7.37 |
% |
6.38 |
% |
(22.50 |
)% | |||||
|
Noninterest income as a percentage of operating revenues |
|
35.42 |
% |
20.15 |
% |
26.54 |
% |
24.89 |
% |
30.13 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares outstanding at period end (in thousands) |
|
37,090 |
|
37,067 |
|
37,042 |
|
37,044 |
|
36,877 |
| |||||
|
Book value per common share |
|
$ |
4.39 |
|
$ |
3.83 |
|
$ |
3.95 |
|
$ |
3.86 |
|
$ |
3.78 |
|
|
Tangible book value per common share * |
|
$ |
4.30 |
|
$ |
3.73 |
|
$ |
3.85 |
|
$ |
3.76 |
|
$ |
3.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tangible common equity to tangible assets * |
|
6.58 |
% |
5.74 |
% |
5.91 |
% |
5.78 |
% |
5.65 |
% | |||||
|
Tangible equity to tangible assets * |
|
8.95 |
% |
8.12 |
% |
8.51 |
% |
8.37 |
% |
8.27 |
% | |||||
|
Tier 1 capital ratio |
|
|
** |
13.21 |
% |
13.45 |
% |
12.97 |
% |
12.90 |
% | |||||
|
Total risk based capital ratio |
|
|
** |
15.68 |
% |
15.97 |
% |
15.53 |
% |
15.50 |
% | |||||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
|
|
|
At |
| |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
(in thousands) |
|
2011 |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
| |||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
$ |
2,413,226 |
|
$ |
2,395,088 |
|
|
Loans |
|
1,637,424 |
|
1,659,799 |
|
1,656,950 |
|
1,636,164 |
|
1,643,727 |
| |||||
|
Intangible assets |
|
3,399 |
|
3,558 |
|
3,718 |
|
3,877 |
|
4,119 |
| |||||
|
Deposits |
|
1,918,406 |
|
1,880,517 |
|
1,912,728 |
|
1,933,284 |
|
1,889,368 |
| |||||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Common shareholders’ equity |
|
162,744 |
|
141,982 |
|
146,440 |
|
143,103 |
|
139,324 |
| |||||
|
Total shareholders’ equity |
|
220,082 |
|
199,341 |
|
209,137 |
|
205,658 |
|
201,738 |
| |||||
|
Interest-earning assets |
|
2,239,700 |
|
2,241,026 |
|
2,316,694 |
|
2,255,418 |
|
2,239,254 |
| |||||
|
Interest-bearing liabilities |
|
1,438,691 |
|
1,472,311 |
|
1,444,031 |
|
1,425,828 |
|
1,472,686 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial |
|
$ |
568,962 |
|
$ |
587,345 |
|
$ |
592,390 |
|
$ |
562,220 |
|
$ |
565,145 |
|
|
Real estate - mortgage |
|
784,491 |
|
782,771 |
|
772,652 |
|
776,801 |
|
783,675 |
| |||||
|
Land acquisition & development |
|
61,977 |
|
67,944 |
|
72,104 |
|
76,120 |
|
83,871 |
| |||||
|
Real estate - construction |
|
63,141 |
|
68,442 |
|
76,605 |
|
85,359 |
|
86,862 |
| |||||
|
Consumer |
|
116,676 |
|
112,709 |
|
104,887 |
|
99,457 |
|
94,607 |
| |||||
|
Other |
|
42,177 |
|
40,588 |
|
38,312 |
|
36,207 |
|
29,567 |
| |||||
|
Gross loans |
|
1,637,424 |
|
1,659,799 |
|
1,656,950 |
|
1,636,164 |
|
1,643,727 |
| |||||
|
Less allowance for loan losses |
|
(55,629 |
) |
(59,695 |
) |
(61,920 |
) |
(61,995 |
) |
(65,892 |
) | |||||
|
Total net loans |
|
$ |
1,581,795 |
|
$ |
1,600,104 |
|
$ |
1,595,030 |
|
$ |
1,574,169 |
|
$ |
1,577,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
773,826 |
|
$ |
718,689 |
|
$ |
713,701 |
|
$ |
696,114 |
|
$ |
663,572 |
|
|
Savings |
|
10,631 |
|
10,251 |
|
10,221 |
|
9,590 |
|
9,144 |
| |||||
|
Allowance for loan and credit losses to total loans |
|
97,748 |
|
104,971 |
|
94,047 |
|
91,042 |
|
105,793 |
| |||||
|
Interest-bearing demand |
|
10,385 |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Certificates of deposits under $100,000 |
|
34,575 |
|
36,126 |
|
37,282 |
|
39,860 |
|
41,845 |
| |||||
|
Certificates of deposits $100,000 and over |
|
180,790 |
|
208,965 |
|
227,968 |
|
234,830 |
|
229,701 |
| |||||
|
Reciprocal CDARS |
|
89,638 |
|
93,909 |
|
92,817 |
|
103,568 |
|
157,679 |
| |||||
|
Brokered deposits |
|
— |
|
— |
|
— |
|
— |
|
100 |
| |||||
|
Total interest-bearing deposits |
|
1,197,593 |
|
1,172,911 |
|
1,176,036 |
|
1,175,004 |
|
1,207,834 |
| |||||
|
Noninterest-bearing demand deposits |
|
720,813 |
|
707,606 |
|
736,692 |
|
758,280 |
|
681,534 |
| |||||
|
Customer repurchase agreements |
|
127,948 |
|
131,877 |
|
144,843 |
|
157,674 |
|
157,690 |
| |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,046,354 |
|
$ |
2,012,394 |
|
$ |
2,057,571 |
|
$ |
2,090,958 |
|
$ |
2,047,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
2,413,877 |
|
$ |
2,385,937 |
|
$ |
2,404,666 |
|
$ |
2,411,530 |
|
$ |
2,447,772 |
|
|
Average loans |
|
1,654,437 |
|
1,656,737 |
|
1,648,368 |
|
1,645,283 |
|
1,621,893 |
| |||||
|
Average deposits |
|
1,904,601 |
|
1,880,859 |
|
1,910,382 |
|
1,925,028 |
|
1,945,744 |
| |||||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Average shareholders’ equity |
|
203,064 |
|
207,462 |
|
208,886 |
|
205,175 |
|
216,441 |
| |||||
|
Average interest-earning assets |
|
2,246,836 |
|
2,230,789 |
|
2,244,327 |
|
2,247,763 |
|
2,246,857 |
| |||||
|
Average interest-bearing liabilities |
|
1,462,576 |
|
1,447,242 |
|
1,454,821 |
|
1,459,927 |
|
1,530,333 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for loan losses |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
61,995 |
|
$ |
65,892 |
|
$ |
65,325 |
|
|
Provision for loan losses |
|
380 |
|
— |
|
1,982 |
|
1,640 |
|
3,519 |
| |||||
|
Net charge-offs |
|
(4,446 |
) |
(2,225 |
) |
(2,057 |
) |
(5,537 |
) |
(2,952 |
) | |||||
|
Ending allowance for loan losses |
|
$ |
55,629 |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
61,995 |
|
$ |
65,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for credit losses |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
155 |
|
|
Provision for credit losses |
|
(26 |
) |
— |
|
— |
|
— |
|
(94 |
) | |||||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total provision for loan and credit losses |
|
$ |
354 |
|
$ |
— |
|
$ |
1,982 |
|
$ |
1,640 |
|
$ |
3,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming Loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonaccrual loans |
|
$ |
27,024 |
|
$ |
41,365 |
|
$ |
41,000 |
|
$ |
39,231 |
|
$ |
42,532 |
|
|
Loans 90 days or more past due and accruing interest |
|
212 |
|
— |
|
360 |
|
1,238 |
|
202 |
| |||||
|
Total nonperforming loans |
|
27,236 |
|
41,365 |
|
41,360 |
|
40,469 |
|
42,734 |
| |||||
|
OREO and repossessed assets |
|
18,502 |
|
20,986 |
|
23,748 |
|
23,581 |
|
25,095 |
| |||||
|
Total nonperforming assets |
|
$ |
45,738 |
|
$ |
62,351 |
|
$ |
65,108 |
|
$ |
64,050 |
|
$ |
67,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Performing renegotiated loans |
|
$ |
20,633 |
|
$ |
659 |
|
$ |
— |
|
$ |
— |
|
$ |
16,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to total assets |
|
1.89 |
% |
2.58 |
% |
2.69 |
% |
2.65 |
% |
2.83 |
% | |||||
|
Nonperforming loans to total loans |
|
1.66 |
% |
2.49 |
% |
2.50 |
% |
2.47 |
% |
2.60 |
% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.76 |
% |
3.71 |
% |
3.87 |
% |
3.86 |
% |
4.06 |
% | |||||
|
Allowance for loan and credit losses to total loans |
|
3.40 |
% |
3.60 |
% |
3.74 |
% |
3.79 |
% |
4.01 |
% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
|
204.38 |
% |
144.46 |
% |
149.86 |
% |
153.34 |
% |
154.33 |
% | |||||
CoBiz Financial Inc.
December 31, 2011
(unaudited)
|
|
|
Three months ended |
| ||||||||||||||||||||||
|
|
|
December 31, 2011 |
|
September 30, 2011 |
|
December 31, 2010 |
| ||||||||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Federal funds sold and other |
|
$ |
25,755 |
|
$ |
28 |
|
0.43 |
% |
$ |
26,980 |
|
$ |
27 |
|
0.39 |
% |
$ |
95,601 |
|
$ |
76 |
|
0.31 |
% |
|
Investment securities |
|
625,062 |
|
5,475 |
|
3.50 |
% |
610,128 |
|
5,413 |
|
3.55 |
% |
594,719 |
|
5,539 |
|
3.73 |
% | ||||||
|
Loans |
|
1,654,437 |
|
22,106 |
|
5.23 |
% |
1,656,737 |
|
22,516 |
|
5.32 |
% |
1,621,893 |
|
22,742 |
|
5.49 |
% | ||||||
|
Allowance for loan losses |
|
(58,418 |
) |
|
|
|
|
(63,056 |
) |
|
|
|
|
(65,356 |
) |
|
|
|
| ||||||
|
Total interest-earning assets |
|
$ |
2,246,836 |
|
$ |
27,609 |
|
4.69 |
% |
$ |
2,230,789 |
|
$ |
27,956 |
|
4.77 |
% |
$ |
2,246,857 |
|
$ |
28,357 |
|
4.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest-earning assets |
|
167,041 |
|
|
|
|
|
155,148 |
|
|
|
|
|
200,915 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
2,413,877 |
|
|
|
|
|
$ |
2,385,937 |
|
|
|
|
|
$ |
2,447,772 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NOW and money market |
|
$ |
759,980 |
|
$ |
1,007 |
|
0.53 |
% |
$ |
726,054 |
|
$ |
1,072 |
|
0.59 |
% |
$ |
705,463 |
|
$ |
1,139 |
|
0.64 |
% |
|
Savings |
|
10,267 |
|
3 |
|
0.12 |
% |
10,473 |
|
4 |
|
0.15 |
% |
9,263 |
|
7 |
|
0.30 |
% | ||||||
|
Eurodollar |
|
97,607 |
|
165 |
|
0.66 |
% |
97,005 |
|
180 |
|
0.73 |
% |
113,303 |
|
229 |
|
0.79 |
% | ||||||
|
Interest-bearing demand |
|
5,665 |
|
2 |
|
0.14 |
% |
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% | ||||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Brokered |
|
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% |
100 |
|
1 |
|
1.38 |
% | ||||||
|
Reciprocal |
|
93,824 |
|
127 |
|
0.54 |
% |
93,158 |
|
130 |
|
0.55 |
% |
152,801 |
|
301 |
|
0.78 |
% | ||||||
|
Under $100,000 |
|
35,255 |
|
69 |
|
0.78 |
% |
36,585 |
|
79 |
|
0.86 |
% |
42,805 |
|
122 |
|
1.13 |
% | ||||||
|
$100,000 and over |
|
189,882 |
|
368 |
|
0.77 |
% |
216,096 |
|
431 |
|
0.79 |
% |
250,399 |
|
680 |
|
1.08 |
% | ||||||
|
Total interest-bearing deposits |
|
$ |
1,192,480 |
|
$ |
1,741 |
|
0.58 |
% |
$ |
1,179,371 |
|
$ |
1,896 |
|
0.64 |
% |
$ |
1,274,134 |
|
$ |
2,479 |
|
0.77 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Securities sold under agreements to repurchase |
|
148,590 |
|
155 |
|
0.41 |
% |
160,807 |
|
216 |
|
0.53 |
% |
162,771 |
|
234 |
|
0.56 |
% | ||||||
|
Other short-term borrowings |
|
28,356 |
|
19 |
|
0.26 |
% |
13,914 |
|
9 |
|
0.25 |
% |
278 |
|
1 |
|
0.70 |
% | ||||||
|
Long term-debt |
|
93,150 |
|
1,517 |
|
6.37 |
% |
93,150 |
|
1,517 |
|
6.37 |
% |
93,150 |
|
1,520 |
|
6.39 |
% | ||||||
|
Total interest-bearing liabilities |
|
$ |
1,462,576 |
|
$ |
3,432 |
|
0.92 |
% |
$ |
1,447,242 |
|
$ |
3,638 |
|
0.99 |
% |
$ |
1,530,333 |
|
$ |
4,234 |
|
1.09 |
% |
|
Noninterest-bearing demand accounts |
|
712,121 |
|
|
|
|
|
701,488 |
|
|
|
|
|
671,610 |
|
|
|
|
| ||||||
|
Total deposits and interest-bearing liabilities |
|
2,174,697 |
|
|
|
|
|
2,148,730 |
|
|
|
|
|
2,201,943 |
|
|
|
|
| ||||||
|
Other noninterest-bearing liabilities |
|
36,116 |
|
|
|
|
|
29,745 |
|
|
|
|
|
29,192 |
|
|
|
|
| ||||||
|
Total liabilities |
|
2,210,813 |
|
|
|
|
|
2,178,475 |
|
|
|
|
|
2,231,135 |
|
|
|
|
| ||||||
|
Total equity |
|
203,064 |
|
|
|
|
|
207,462 |
|
|
|
|
|
216,637 |
|
|
|
|
| ||||||
|
Total liabilities and equity |
|
$ |
2,413,877 |
|
|
|
|
|
$ |
2,385,937 |
|
|
|
|
|
$ |
2,447,772 |
|
|
|
|
| |||
|
Net interest income - taxable equivalent |
|
|
|
$ |
24,177 |
|
|
|
|
|
$ |
24,318 |
|
|
|
|
|
$ |
24,123 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
3.77 |
% |
|
|
|
|
3.78 |
% |
|
|
|
|
3.71 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
4.27 |
% |
|
|
|
|
4.32 |
% |
|
|
|
|
4.26 |
% | ||||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
153.62 |
% |
|
|
|
|
154.14 |
% |
|
|
|
|
146.82 |
% |
|
|
|
| ||||||
|
|
|
For the year ended December 31, |
| ||||||||||||||
|
|
|
2011 |
|
2010 |
| ||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Federal funds sold and other |
|
$ |
32,183 |
|
$ |
130 |
|
0.40 |
% |
$ |
44,995 |
|
$ |
182 |
|
0.40 |
% |
|
Investment securities |
|
621,346 |
|
22,743 |
|
3.66 |
% |
557,673 |
|
22,235 |
|
3.99 |
% | ||||
|
Loans |
|
1,651,247 |
|
89,575 |
|
5.42 |
% |
1,693,546 |
|
94,063 |
|
5.55 |
% | ||||
|
Allowance for loan losses |
|
(62,381 |
) |
|
|
|
|
(70,516 |
) |
|
|
|
| ||||
|
Total interest earning-assets |
|
$ |
2,242,395 |
|
$ |
112,448 |
|
4.86 |
% |
$ |
2,225,698 |
|
$ |
116,480 |
|
5.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Noninterest-earning assets |
|
161,565 |
|
|
|
|
|
208,304 |
|
|
|
|
| ||||
|
Total assets |
|
$ |
2,403,960 |
|
|
|
|
|
$ |
2,434,002 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NOW and money market |
|
$ |
721,151 |
|
$ |
4,366 |
|
0.61 |
% |
$ |
708,936 |
|
$ |
4,910 |
|
0.69 |
% |
|
Savings |
|
9,997 |
|
17 |
|
0.17 |
% |
9,683 |
|
31 |
|
0.32 |
% | ||||
|
Eurodollar |
|
96,378 |
|
701 |
|
0.73 |
% |
111,768 |
|
1,023 |
|
0.92 |
% | ||||
|
Interest-bearing demand |
|
1,605 |
|
2 |
|
0.12 |
% |
— |
|
— |
|
0.00 |
% | ||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Brokered |
|
5 |
|
— |
|
1.38 |
% |
1,762 |
|
38 |
|
2.16 |
% | ||||
|
Reciprocal |
|
108,318 |
|
664 |
|
0.61 |
% |
167,038 |
|
1,616 |
|
0.97 |
% | ||||
|
Under $100,000 |
|
37,961 |
|
348 |
|
0.92 |
% |
46,863 |
|
664 |
|
1.42 |
% | ||||
|
$100,000 and over |
|
216,850 |
|
1,923 |
|
0.89 |
% |
301,546 |
|
4,056 |
|
1.35 |
% | ||||
|
Total interest-bearing deposits |
|
$ |
1,192,265 |
|
$ |
8,021 |
|
0.67 |
% |
$ |
1,347,596 |
|
$ |
12,338 |
|
0.92 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Securities sold under agreements to repurchase |
|
156,745 |
|
787 |
|
0.50 |
% |
148,454 |
|
1,096 |
|
0.74 |
% | ||||
|
Other short-term borrowings |
|
14,142 |
|
37 |
|
0.26 |
% |
7,509 |
|
23 |
|
0.31 |
% | ||||
|
Long-term debt |
|
93,150 |
|
6,018 |
|
6.37 |
% |
93,150 |
|
5,691 |
|
6.11 |
% | ||||
|
Total interest-bearing liabilities |
|
$ |
1,456,302 |
|
$ |
14,863 |
|
1.01 |
% |
$ |
1,596,709 |
|
$ |
19,148 |
|
1.20 |
% |
|
Noninterest-bearing demand accounts |
|
712,830 |
|
|
|
|
|
591,074 |
|
|
|
|
| ||||
|
Total deposits and interest-bearing liabilities |
|
2,169,132 |
|
|
|
|
|
2,187,783 |
|
|
|
|
| ||||
|
Other noninterest-bearing liabilities |
|
28,635 |
|
|
|
|
|
22,980 |
|
|
|
|
| ||||
|
Total liabilities |
|
2,197,767 |
|
|
|
|
|
2,210,763 |
|
|
|
|
| ||||
|
Total equity |
|
206,193 |
|
|
|
|
|
223,239 |
|
|
|
|
| ||||
|
Total liabilities and equity |
|
$ |
2,403,960 |
|
|
|
|
|
$ |
2,434,002 |
|
|
|
|
| ||
|
Net interest income - taxable equivalent |
|
|
|
$ |
97,585 |
|
|
|
|
|
$ |
97,332 |
|
|
| ||
|
Allowance for loan and credit losses to total loans |
|
|
|
|
|
3.85 |
% |
|
|
|
|
3.86 |
% | ||||
|
Net interest margin |
|
|
|
|
|
4.35 |
% |
|
|
|
|
4.37 |
% | ||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
153.98 |
% |
|
|
|
|
139.39 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
December 31, 2011
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(in thousands, except per share amounts)
The Company believes these Non-GAAP measurements are useful to obtain an understanding of the operating results of the Company’s core business and reflects the basis on which management internally reviews financial performance and capital adequacy. These Non-GAAP measurements are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to Non-GAAP performance measures that may be presented by other companies.
The following table includes Non-GAAP financial measurements related to tangible equity, tangible common equity, and tangible assets. These items have been adjusted to exclude intangible assets and preferred stock. The table also includes Non-GAAP financial measurements related to earnings per share as adjusted for items the Company does not believe are representative of its core earnings.
|
|
|
|
|
At |
| |||||||||||||
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| |||||
|
|
|
|
|
2011 |
|
2011 |
|
2011 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Shareholders’ equity as reported - GAAP |
|
$ |
220,082 |
|
$ |
199,341 |
|
$ |
209,137 |
|
$ |
205,658 |
|
$ |
201,738 |
|
|
|
|
Intangible assets |
|
(3,399 |
) |
(3,558 |
) |
(3,718 |
) |
(3,877 |
) |
(4,119 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A |
|
Tangible equity - Non-GAAP |
|
216,683 |
|
195,783 |
|
205,419 |
|
201,781 |
|
197,619 |
| |||||
|
|
|
Preferred stock |
|
(57,338 |
) |
(57,359 |
) |
(62,697 |
) |
(62,555 |
) |
(62,414 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B |
|
Tangible common equity - Non-GAAP |
|
$ |
159,345 |
|
$ |
138,424 |
|
$ |
142,722 |
|
$ |
139,226 |
|
$ |
135,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Total assets as reported - GAAP |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
$ |
2,413,226 |
|
$ |
2,395,088 |
|
|
|
|
Intangible assets |
|
(3,399 |
) |
(3,558 |
) |
(3,718 |
) |
(3,877 |
) |
(4,119 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
C |
|
Total tangible assets - Non-GAAP |
|
$ |
2,420,105 |
|
$ |
2,412,494 |
|
$ |
2,414,517 |
|
$ |
2,409,349 |
|
$ |
2,390,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
D |
|
Common shares outstanding |
|
37,090 |
|
37,067 |
|
37,042 |
|
37,044 |
|
36,877 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / C |
|
Tangible common equity to tangible assets - Non-GAAP |
|
6.58 |
% |
5.74 |
% |
5.91 |
% |
5.78 |
% |
5.65 |
% | |||||
|
A / C |
|
Tangible equity to tangible assets - Non-GAAP |
|
8.95 |
% |
8.12 |
% |
8.51 |
% |
8.37 |
% |
8.27 |
% | |||||
|
B / D |
|
Tangible book value per common share - Non-GAAP |
|
$ |
4.30 |
|
$ |
3.73 |
|
$ |
3.85 |
|
$ |
3.76 |
|
$ |
3.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Net income available to common shareholders as reported - GAAP |
|
$ |
21,237 |
|
$ |
1,908 |
|
|
|
|
|
$ |
(13,218 |
) | ||
|
|
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
E |
|
Deferred tax valuation allowance |
|
(15,596 |
) |
— |
|
|
|
|
|
15,596 |
| |||||
|
F |
|
Accretion of preferred stock discount recorded in the quarter of redemption and original issuance costs |
|
— |
|
1,753 |
|
|
|
|
|
— |
| |||||
|
|
|
Adjusted net income available to common shareholders- Non-GAAP |
|
$ |
5,641 |
|
$ |
3,661 |
|
|
|
|
|
$ |
2,378 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
Earnings per common share - GAAP |
|
$ |
0.57 |
|
$ |
0.05 |
|
|
|
|
|
$ |
(0.36 |
) | ||
|
E / D |
|
Effect of deferred tax valuation allowance |
|
(0.42 |
) |
— |
|
|
|
|
|
0.42 |
| |||||
|
F / D |
|
Effect of discount accretion and issuance cost exclusion |
|
— |
|
0.05 |
|
|
|
|
|
— |
| |||||
|
|
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.15 |
|
$ |
0.10 |
|
|
|
|
|
$ |
0.06 |
| ||