Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COBIZ FINANCIAL INC | a12-16643_18k.htm |
Exhibit 99.1
CoBiz Financial Announces Second Quarter 2012 Results
Net income of $6.2 million; Annualized quarterly loan growth of 21%
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.5 billion in assets, announced net income of $6.2 million for the second quarter of 2012, as compared to net income of $3.8 million for the second quarter of 2011. Net income available to common shareholders was $0.14 per diluted common share versus $0.08 per diluted common share in the prior-year quarter.
Financial Highlights — Second quarter 2012
· After preferred dividends, net income available to common shareholders increased $2.5 million, or 88%, to $5.4 million from $2.9 million for the quarter ended June 30, 2011.
· The Company continued to have success growing loans. Outstanding loans increased 5.3% (21.1% annualized) or $88.2 million during the quarter, building on the 2.5% (10.1% annualized) loan increase achieved in the first quarter of 2012.
· Continued improvement in credit quality led to a $1.8 million negative provision expense in the second quarter of 2012.
Financial Summary
|
|
|
Quarter ended |
|
2Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
|
1Q12 |
|
2Q11 |
| |||||||||
|
Net interest income before provision |
|
$ |
23,624 |
|
$ |
23,303 |
|
$ |
24,331 |
|
$ |
321 |
|
1.4 |
% |
$ |
(707 |
) |
(2.9 |
)% |
|
Provision for loan losses |
|
(1,820 |
) |
(70 |
) |
1,982 |
|
(1,750 |
) |
2,500.0 |
% |
(3,802 |
) |
(191.8 |
)% | |||||
|
Net interest income after provision |
|
25,444 |
|
23,373 |
|
22,349 |
|
2,071 |
|
8.9 |
% |
3,095 |
|
13.8 |
% | |||||
|
Total noninterest income |
|
7,753 |
|
8,211 |
|
8,790 |
|
(458 |
) |
(5.6 |
)% |
(1,037 |
) |
(11.8 |
)% | |||||
|
Total noninterest expense |
|
23,850 |
|
24,646 |
|
25,253 |
|
(796 |
) |
(3.2 |
)% |
(1,403 |
) |
(5.6 |
)% | |||||
|
Net income before income taxes |
|
9,347 |
|
6,938 |
|
5,886 |
|
2,409 |
|
34.7 |
% |
3,461 |
|
58.8 |
% | |||||
|
Provision for income taxes |
|
3,197 |
|
2,398 |
|
2,047 |
|
799 |
|
33.3 |
% |
1,150 |
|
56.2 |
% | |||||
|
Net income |
|
6,150 |
|
4,540 |
|
3,839 |
|
1,610 |
|
35.5 |
% |
2,311 |
|
60.2 |
% | |||||
|
Preferred stock dividends |
|
(717 |
) |
(717 |
) |
(949 |
) |
— |
|
0.0 |
% |
232 |
|
(24.4 |
)% | |||||
|
Net income available to common shareholders |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
2,890 |
|
$ |
1,610 |
|
42.1 |
% |
$ |
2,543 |
|
88.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
KEY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.19 |
% |
4.23 |
% |
4.40 |
% |
|
|
|
|
|
|
|
| |||||
|
Efficiency ratio |
|
74.32 |
% |
76.77 |
% |
73.40 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average assets |
|
1.00 |
% |
0.75 |
% |
0.64 |
% |
|
|
|
|
|
|
|
| |||||
|
Return on average shareholders’ equity |
|
10.22 |
% |
8.12 |
% |
7.37 |
% |
|
|
|
|
|
|
|
| |||||
|
Noninterest income as a percentage of operating revenues |
|
24.71 |
% |
26.06 |
% |
26.54 |
% |
|
|
|
|
|
|
|
| |||||
“Our operating results continue to improve, reflecting our focus on our strategic initiatives, particularly loan growth and credit quality” said Chairman and CEO Steve Bangert. “The increase in loans during the second quarter was broad-based, across both Colorado and Arizona and nearly all loan categories. It was particularly gratifying to see the progress in the Arizona market, which reported net loan growth for the first time since 2008.
“Our continuing success in attracting new customers to the franchise while retaining and expanding existing relationships should offer us continued opportunities for growth. We believe that we are well positioned to take advantage of solidifying economic environments in both of our markets during the second half of the year.”
Loans
· Loans at June 30, 2012 were $1.8 billion, an increase of $88.2 million and $109.7 million from the linked- and prior-year quarter ends, respectively.
· The Commercial & Industrial (C&I) portfolio totaled $628.3 million, or 35.6% of total loans at June 30, 2012. Commercial real estate accounted for 47.1% of total loans, with owner-occupied properties tied to the Company’s C&I portfolio representing 51.9% of this category. Overall, 60.0% of total loans at June 30, 2012 related to the Company’s C&I book.
|
|
|
|
|
|
|
|
|
2Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
|
1Q12 |
|
2Q11 |
| |||||||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial & industrial |
|
$ |
628,327 |
|
$ |
594,812 |
|
$ |
592,390 |
|
$ |
33,515 |
|
5.6 |
% |
$ |
35,937 |
|
6.1 |
% |
|
Owner occupied real estate |
|
431,968 |
|
429,666 |
|
417,637 |
|
2,302 |
|
0.5 |
% |
14,331 |
|
3.4 |
% | |||||
|
Investor real estate |
|
400,673 |
|
376,028 |
|
355,015 |
|
24,645 |
|
6.6 |
% |
45,658 |
|
12.9 |
% | |||||
|
Land acquisition & development |
|
56,455 |
|
58,218 |
|
72,104 |
|
(1,763 |
) |
(3.0 |
)% |
(15,649 |
) |
(21.7 |
)% | |||||
|
Real estate - construction |
|
65,761 |
|
57,422 |
|
76,605 |
|
8,339 |
|
14.5 |
% |
(10,844 |
) |
(14.2 |
)% | |||||
|
Consumer |
|
132,510 |
|
116,833 |
|
104,887 |
|
15,677 |
|
13.4 |
% |
27,623 |
|
26.3 |
% | |||||
|
Other |
|
50,994 |
|
45,468 |
|
38,312 |
|
5,526 |
|
12.2 |
% |
12,682 |
|
33.1 |
% | |||||
|
Total loans |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,656,950 |
|
$ |
88,241 |
|
5.3 |
% |
$ |
109,738 |
|
6.6 |
% |
· New credit of $164.4 million was added during the second quarter and advances on existing lines totaled $77.7 million. New and advanced loans were offset by paydowns and maturities of $152.0 million during the second quarter. In addition, the Company charged-off, excluding recoveries, $1.8 million during the second quarter.
· Gross credit commitments were relatively flat on a linked-quarter basis but increased by $46.0 million from the prior-year quarter.
· Supporting loan growth was an increase in advance rates. Overall, total credit line utilization increased to 42.0% from 40.1% on a linked-quarter basis.
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
4Q11 |
|
3Q11 |
|
2Q11 |
| |||||
|
Loans - beginning balance |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
$ |
1,636,164 |
|
|
New credit extended |
|
164,414 |
|
96,251 |
|
93,706 |
|
107,904 |
|
94,037 |
| |||||
|
Credit advanced |
|
77,683 |
|
72,540 |
|
59,709 |
|
58,371 |
|
54,610 |
| |||||
|
Paydowns & maturities |
|
(152,017 |
) |
(124,456 |
) |
(169,778 |
) |
(159,991 |
) |
(124,856 |
) | |||||
|
Gross loan charge-offs |
|
(1,839 |
) |
(3,312 |
) |
(6,012 |
) |
(3,435 |
) |
(3,005 |
) | |||||
|
Loans - ending balance |
|
$ |
1,766,688 |
|
$ |
1,678,447 |
|
$ |
1,637,424 |
|
$ |
1,659,799 |
|
$ |
1,656,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net change - loans outstanding |
|
$ |
88,241 |
|
$ |
41,023 |
|
$ |
(22,375 |
) |
$ |
2,849 |
|
$ |
20,786 |
|
|
Net change, excluding charge-offs |
|
90,080 |
|
44,335 |
|
(16,363 |
) |
6,284 |
|
23,791 |
| |||||
Investment Securities
· The Company had investment securities available for sale with a carrying value of $612.0 million at June 30, 2012, a $20.4 million decrease from March 31, 2012.
· The unrealized gain on the investment portfolio increased $0.1 million from March 31, 2012, to $15.1 million at June 30, 2012.
Deposits and Customer Repurchase Agreements (Repo)
· Deposit and Customer Repo balances at June 30, 2012 were $2.1 billion, an increase of $51.7 million and $16.6 million from the linked- and prior-year quarter ends, respectively.
· Noninterest-bearing demand accounts were 39.1% of total deposits at June 30, 2012.
· As a result of the Company’s favorable funding mix, the average cost of total deposits for the second quarter of 2012 decreased to 33 basis points, compared to 45 basis points in the prior-year quarter.
|
|
|
|
|
|
|
|
|
2Q12 change vs. |
| |||||||||||
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
|
1Q12 |
|
2Q11 |
| |||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
767,102 |
|
$ |
768,620 |
|
$ |
713,701 |
|
$ |
(1,518 |
) |
(0.2 |
)% |
$ |
53,401 |
|
7.5 |
% |
|
Savings |
|
10,278 |
|
10,978 |
|
10,221 |
|
(700 |
) |
(6.4 |
)% |
57 |
|
0.6 |
% | |||||
|
Eurodollar |
|
— |
|
— |
|
94,047 |
|
— |
|
0.0 |
% |
(94,047 |
) |
(100.0 |
)% | |||||
|
Interest-bearing demand |
|
115,684 |
|
115,377 |
|
— |
|
307 |
|
0.3 |
% |
115,684 |
|
100.0 |
% | |||||
|
Certificates of deposits under $100,000 |
|
31,399 |
|
32,231 |
|
37,282 |
|
(832 |
) |
(2.6 |
)% |
(5,883 |
) |
(15.8 |
)% | |||||
|
Certificates of deposits $100,000 and over |
|
166,938 |
|
165,798 |
|
227,968 |
|
1,140 |
|
0.7 |
% |
(61,030 |
) |
(26.8 |
)% | |||||
|
Reciprocal CDARS |
|
94,336 |
|
87,978 |
|
92,817 |
|
6,358 |
|
7.2 |
% |
1,519 |
|
1.6 |
% | |||||
|
Total interest-bearing deposits |
|
1,185,737 |
|
1,180,982 |
|
1,176,036 |
|
4,755 |
|
0.4 |
% |
9,701 |
|
0.8 |
% | |||||
|
Noninterest-bearing demand deposits |
|
761,252 |
|
722,982 |
|
736,692 |
|
38,270 |
|
5.3 |
% |
24,560 |
|
3.3 |
% | |||||
|
Customer repurchase agreements |
|
127,144 |
|
118,499 |
|
144,843 |
|
8,645 |
|
7.3 |
% |
(17,699 |
) |
(12.2 |
)% | |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,074,133 |
|
$ |
2,022,463 |
|
$ |
2,057,571 |
|
$ |
51,670 |
|
2.6 |
% |
$ |
16,562 |
|
0.8 |
% |
Allowance for Loan and Credit Losses and Credit Quality
· Nonperforming assets (NPAs) were $38.6 million at June 30, 2012, a decrease of 40.7% from the prior-year quarter.
· NPAs to total assets decreased to 1.53% at June 30, 2012 from 2.69% at June 30, 2011.
· As a result of the improvement in credit quality measures and growth in the loan portfolio, the Allowance for Loan and Credit Losses (Allowance) to Loan ratio decreased to 2.89%. The coverage of Allowance to nonperforming loans was 205%.
· The Company had a net recovery on loans for the second quarter of $0.1 million.
· Due to improvement in the Company’s credit quality, a provision for loan loss reversal of $1.8 million was recorded during the quarter.
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
| |||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
| |||
|
Beginning allowance for loan losses |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
61,995 |
|
|
Provision for loan losses |
|
(1,820 |
) |
(70 |
) |
1,982 |
| |||
|
Net recovery (charge-off) |
|
143 |
|
(2,781 |
) |
(2,057 |
) | |||
|
Ending allowance for loan losses |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
61,920 |
|
|
|
|
|
|
|
|
|
| |||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
Provision for credit losses |
|
— |
|
— |
|
— |
| |||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
| |||
|
Total provision for loan and credit losses |
|
$ |
(1,820 |
) |
$ |
(70 |
) |
$ |
1,982 |
|
|
|
|
|
|
|
|
|
| |||
|
CREDIT QUALITY |
|
|
|
|
|
|
| |||
|
Nonaccrual loans |
|
$ |
24,950 |
|
$ |
27,941 |
|
$ |
41,000 |
|
|
Loans 90 days or more past due and accruing interest |
|
— |
|
— |
|
360 |
| |||
|
Total nonperforming loans |
|
24,950 |
|
27,941 |
|
41,360 |
| |||
|
OREO and repossessed assets |
|
13,651 |
|
17,224 |
|
23,748 |
| |||
|
Total nonperforming assets |
|
$ |
38,601 |
|
$ |
45,165 |
|
$ |
65,108 |
|
|
|
|
|
|
|
|
|
| |||
|
Performing renegotiated loans |
|
$ |
36,010 |
|
$ |
27,184 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
| |||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
| |||
|
Nonperforming assets to total assets |
|
1.53 |
% |
1.84 |
% |
2.69 |
% | |||
|
Nonperforming loans to total loans |
|
1.41 |
% |
1.66 |
% |
2.50 |
% | |||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.17 |
% |
2.66 |
% |
3.87 |
% | |||
|
Allowance for loan and credit losses to total loans (excluding loans held for sale) |
|
2.89 |
% |
3.15 |
% |
3.74 |
% | |||
|
Allowance for loan and credit losses to nonperforming loans |
|
204.95 |
% |
189.02 |
% |
149.86 |
% | |||
Shareholders’ Equity
· Total shareholders’ equity was $243.4 million at June 30, 2012, an increase of $3.8 million and $34.3 million from the linked- and prior-year quarter ends, respectively.
· The year-over-year equity increase is the result of positive earnings retained by the Company, an equity offering executed in the first quarter of 2012 for net proceeds of $11.8 million, as well as the reversal of a $15.6 million deferred tax asset (DTA) valuation allowance recorded in the fourth quarter of 2011.
· Tangible common equity increased to 7.2% of tangible assets at June 30, 2012, from 5.9% at the prior-year quarter end.
· The Board of Directors of the Company declared a $0.02 cash dividend on our common stock to be paid on August 6, 2012 to shareholders of record on July 30, 2012.
|
(in thousands, except per share amounts) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
| |||
|
EQUITY MEASURES |
|
|
|
|
|
|
| |||
|
Common shareholders’ equity |
|
$ |
186,097 |
|
$ |
182,291 |
|
$ |
146,440 |
|
|
Total shareholders’ equity |
|
243,435 |
|
239,629 |
|
209,137 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Common shares outstanding at period end |
|
39,708 |
|
39,697 |
|
37,042 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Book value per common share |
|
$ |
4.69 |
|
$ |
4.59 |
|
$ |
3.95 |
|
|
Tangible book value per common share * |
|
4.60 |
|
4.51 |
|
3.85 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Tangible common equity to tangible assets * |
|
7.23 |
% |
7.29 |
% |
5.91 |
% | |||
|
Tangible equity to tangible assets * |
|
9.50 |
% |
9.63 |
% |
8.51 |
% | |||
|
Tier 1 capital ratio |
|
|
** |
14.93 |
% |
13.45 |
% | |||
|
Total-risk based capital ratio |
|
|
** |
17.28 |
% |
15.97 |
% | |||
* 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 second quarter of 2012 increased $0.4 million on a tax-equivalent basis from the prior linked-quarter, to $24.1 million.
· Net interest margin (NIM) for the second quarter of 2012 contracted by four basis points on a linked-quarter basis to 4.19%, and decreased 21 basis points from the prior-year quarter NIM of 4.40%, primarily due to the flat yield curve environment.
· Average earning assets of $2.31 billion increased $61.4 million during the second quarter of 2012 from the first quarter of 2012.
· The average net loan portfolio increased $67.2 million from the first quarter of 2012, while average cash and investments decreased $5.8 million during the second quarter of 2012.
· The yield on average earning assets in the second quarter of 2012 decreased six basis points to 4.57% from 4.63% in the first quarter of 2012.
· The rate paid on average interest-bearing liabilities decreased four basis points on a linked-quarter basis to 0.87%.
· Including noninterest-bearing demand accounts, the rate paid on average deposits was 0.33% in the second quarter of 2012 compared to 0.35% and 0.45% in the respective linked-and prior-year quarters.
Noninterest Income
· As a percentage of total operating revenue, noninterest income fell to 24.7% for the second quarter, from 26.1% for the first quarter of 2012, and 26.5% for the prior-year quarter.
· The linked-quarter decrease in noninterest income for the second quarter of 2012 is primarily attributable to lower revenues recognized on equity method investments, which totaled $1.4 million in the first quarter of 2012 versus $0.5 million in the current period.
· The reduction in noninterest income from the prior year quarter relates primarily to the Investment Banking segment, which did not close any transactions in the second quarter of 2012.
|
|
|
Quarter ended |
|
2Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
|
1Q12 |
|
2Q11 |
| |||||||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,223 |
|
$ |
1,245 |
|
$ |
1,224 |
|
$ |
(22 |
) |
(1.8 |
)% |
$ |
(1 |
) |
(0.1 |
)% |
|
Investment advisory and trust income |
|
1,253 |
|
1,231 |
|
1,543 |
|
22 |
|
1.8 |
% |
(290 |
) |
(18.8 |
)% | |||||
|
Insurance income |
|
3,400 |
|
3,439 |
|
3,288 |
|
(39 |
) |
(1.1 |
)% |
112 |
|
3.4 |
% | |||||
|
Investment banking income |
|
148 |
|
74 |
|
857 |
|
74 |
|
100.0 |
% |
(709 |
) |
(82.7 |
)% | |||||
|
Other income |
|
1,729 |
|
2,222 |
|
1,878 |
|
(493 |
) |
(22.2 |
)% |
(149 |
) |
(7.9 |
)% | |||||
|
Total noninterest income |
|
$ |
7,753 |
|
$ |
8,211 |
|
$ |
8,790 |
|
$ |
(458 |
) |
(5.6 |
)% |
$ |
(1,037 |
) |
(11.8 |
)% |
Operating Expenses
· The Company’s efficiency ratio for the second quarter of 2012 was 74.3%, compared to 76.8% for the first quarter of 2012 and 73.4% for the second quarter of 2011.
· Salaries and employee benefits decreased $0.8 million in the second quarter of 2012 on a linked-quarter basis. The decrease was primarily due to a reduction in bonus accruals, as well as seasonal reductions in vacation expense and payroll taxes. In addition, the Company recognized less expense due to the previously announced termination of its supplemental executive retirement plan.
· The decline in compensation related expenses over the prior year quarter is attributed to lower base salaries and vacation expense due to reduced headcount, decreased bonus expense and better claims experience on the Company’s self-insured medical plan.
· In the second quarter of 2012, the Company recorded losses on OREO of $1.1 million, compared to $0.4 million and $1.5 million in the linked-and prior year quarter ends, respectively.
· In the current and prior year periods, the Company recognized net gains on the redemption of investment securities.
|
|
|
Quarter ended |
|
2Q12 change vs. |
| |||||||||||||||
|
(in thousands) |
|
2Q12 |
|
1Q12 |
|
2Q11 |
|
1Q12 |
|
2Q11 |
| |||||||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,746 |
|
$ |
15,573 |
|
$ |
15,953 |
|
$ |
(827 |
) |
(5.3 |
)% |
$ |
(1,207 |
) |
(7.6 |
)% |
|
Stock-based compensation expense |
|
516 |
|
489 |
|
341 |
|
27 |
|
5.5 |
% |
175 |
|
51.3 |
% | |||||
|
Occupancy expenses, premises and equipment |
|
3,426 |
|
3,533 |
|
3,322 |
|
(107 |
) |
(3.0 |
)% |
104 |
|
3.1 |
% | |||||
|
Amortization of intangibles |
|
159 |
|
160 |
|
159 |
|
(1 |
) |
(0.6 |
)% |
— |
|
0.0 |
% | |||||
|
Other operating expenses |
|
4,474 |
|
4,438 |
|
4,535 |
|
36 |
|
0.8 |
% |
(61 |
) |
(1.3 |
)% | |||||
|
OREO and repossessed assets |
|
1,070 |
|
419 |
|
1,457 |
|
651 |
|
155.4 |
% |
(387 |
) |
(26.6 |
)% | |||||
|
Investment securities |
|
(541 |
) |
34 |
|
(514 |
) |
(575 |
) |
NM |
|
(27 |
) |
5.3 |
% | |||||
|
Total noninterest expense |
|
$ |
23,850 |
|
$ |
24,646 |
|
$ |
25,253 |
|
$ |
(796 |
) |
(3.2 |
)% |
$ |
(1,403 |
) |
(5.6 |
)% |
NM = Not meaningful
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, July 20, 2012, at 9:00 am MDT with Steve Bangert, CoBiz Chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=87891 or by telephone at 877.493.9121, (conference ID #93565773). 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 $2.5 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”, “should” 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 and implementation of current legislative or regulatory requirements could increase costs, limit certain operations and adversely affect results of operations.
· Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
| ||||||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
26,842 |
|
$ |
28,177 |
|
$ |
53,436 |
|
$ |
56,368 |
|
|
Interest expense |
|
3,218 |
|
3,846 |
|
6,509 |
|
7,793 |
| ||||
|
NET INTEREST INCOME BEFORE PROVISION |
|
23,624 |
|
24,331 |
|
46,927 |
|
48,575 |
| ||||
|
Provision for loan losses |
|
(1,820 |
) |
1,982 |
|
(1,890 |
) |
3,622 |
| ||||
|
NET INTEREST INCOME AFTER PROVISION |
|
25,444 |
|
22,349 |
|
48,817 |
|
44,953 |
| ||||
|
Noninterest income |
|
7,753 |
|
8,790 |
|
15,964 |
|
16,822 |
| ||||
|
Noninterest expense |
|
23,850 |
|
25,253 |
|
48,496 |
|
50,704 |
| ||||
|
INCOME BEFORE INCOME TAXES |
|
9,347 |
|
5,886 |
|
16,285 |
|
11,071 |
| ||||
|
Provision for income taxes |
|
3,197 |
|
2,047 |
|
5,595 |
|
4,006 |
| ||||
|
NET INCOME |
|
$ |
6,150 |
|
$ |
3,839 |
|
$ |
10,690 |
|
$ |
7,065 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Preferred stock dividends |
|
(717 |
) |
(949 |
) |
(1,434 |
) |
(1,895 |
) | ||||
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
5,433 |
|
$ |
2,890 |
|
$ |
9,256 |
|
$ |
5,170 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
$ |
0.14 |
|
$ |
0.08 |
|
$ |
0.24 |
|
$ |
0.14 |
|
|
DILUTED |
|
$ |
0.14 |
|
$ |
0.08 |
|
$ |
0.24 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
| ||||
|
Common shares outstanding at period end (in thousands) |
|
|
|
|
|
39,708 |
|
37,042 |
| ||||
|
Book value per common share |
|
|
|
|
|
$ |
4.69 |
|
$ |
3.95 |
| ||
|
Tangible book value per common share * |
|
|
|
|
|
$ |
4.60 |
|
$ |
3.85 |
| ||
|
Tangible common equity to tangible assets * |
|
|
|
|
|
7.23 |
% |
5.91 |
% | ||||
|
Tangible equity to tangible assets * |
|
|
|
|
|
9.50 |
% |
8.51 |
% | ||||
* See accompanying Non-GAAP reconciliation.
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
|
|
|
|
$ |
2,530,133 |
|
$ |
2,418,235 |
|
|
Loans |
|
|
|
|
|
1,766,688 |
|
1,656,950 |
| ||
|
Intangible assets |
|
|
|
|
|
3,439 |
|
3,718 |
| ||
|
Deposits |
|
|
|
|
|
1,946,989 |
|
1,912,728 |
| ||
|
Subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||
|
Common shareholders’ equity |
|
|
|
|
|
186,097 |
|
146,440 |
| ||
|
Total shareholders’ equity |
|
|
|
|
|
243,435 |
|
209,137 |
| ||
|
Interest-earning assets |
|
|
|
|
|
2,355,707 |
|
2,254,775 |
| ||
|
Interest-bearing liabilities |
|
|
|
|
|
1,480,256 |
|
1,444,031 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
| ||
|
Average assets |
|
|
|
|
|
$ |
2,450,965 |
|
$ |
2,408,079 |
|
|
Average loans |
|
|
|
|
|
1,680,561 |
|
1,646,834 |
| ||
|
Average deposits |
|
|
|
|
|
1,890,100 |
|
1,917,664 |
| ||
|
Average subordinated debentures |
|
|
|
|
|
93,150 |
|
93,150 |
| ||
|
Average shareholders’ equity |
|
|
|
|
|
233,546 |
|
207,139 |
| ||
|
Average interest-earning assets |
|
|
|
|
|
2,279,515 |
|
2,246,035 |
| ||
|
Average interest-bearing liabilities |
|
|
|
|
|
1,463,434 |
|
1,457,358 |
| ||
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
| ||||||
|
(in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Net interest margin |
|
4.19 |
% |
4.40 |
% |
4.21 |
% |
4.41 |
% | ||
|
Efficiency ratio |
|
74.32 |
% |
73.40 |
% |
75.55 |
% |
74.01 |
% | ||
|
Return on average assets |
|
1.00 |
% |
0.64 |
% |
0.88 |
% |
0.59 |
% | ||
|
Return on average shareholders’ equity |
|
10.22 |
% |
7.37 |
% |
9.20 |
% |
6.88 |
% | ||
|
Noninterest income as a percentage of operating revenues |
|
24.71 |
% |
26.54 |
% |
25.38 |
% |
25.72 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming loans |
|
|
|
|
|
|
|
|
| ||
|
Nonaccrual loans |
|
|
|
|
|
$ |
24,950 |
|
$ |
41,000 |
|
|
Loans 90 days or more past due and accruing interest |
|
|
|
|
|
— |
|
360 |
| ||
|
Total nonperforming loans |
|
|
|
|
|
$ |
24,950 |
|
$ |
41,360 |
|
|
OREO & repossessed assets |
|
|
|
|
|
13,651 |
|
23,748 |
| ||
|
Total nonperforming assets |
|
|
|
|
|
$ |
38,601 |
|
$ |
65,108 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Performing renegotiated loans |
|
|
|
|
|
$ |
36,010 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Charge-offs |
|
|
|
|
|
$ |
(5,151 |
) |
$ |
(9,299 |
) |
|
Recoveries |
|
|
|
|
|
2,513 |
|
1,705 |
| ||
|
Net charge-offs |
|
|
|
|
|
$ |
(2,638 |
) |
$ |
(7,594 |
) |
|
|
|
|
|
|
|
|
|
|
| ||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
| ||
|
Nonperforming assets to total assets |
|
|
|
|
|
1.53 |
% |
2.69 |
% | ||
|
Nonperforming loans to total loans |
|
|
|
|
|
1.41 |
% |
2.50 |
% | ||
|
Nonperforming loans and OREO to total loans and OREO |
|
|
|
|
|
2.17 |
% |
3.87 |
% | ||
|
Allowance for loan and credit losses to total loans |
|
|
|
|
|
2.89 |
% |
3.74 |
% | ||
|
Allowance for loan and credit losses to nonperforming loans |
|
|
|
|
|
204.95 |
% |
149.86 |
% | ||
|
|
|
|
|
|
|
|
|
Total |
|
NPAs as a |
| ||||
|
NONPERFORMING ASSETS BY MARKET |
|
Colorado |
|
Arizona |
|
Total |
|
in Category |
|
% |
| ||||
|
Commercial |
|
$ |
1,588 |
|
$ |
1,481 |
|
$ |
3,069 |
|
$ |
628,327 |
|
0.49 |
% |
|
Real estate - mortgage |
|
3,446 |
|
10,090 |
|
13,536 |
|
832,641 |
|
1.63 |
% | ||||
|
Land acquisition & development |
|
2,766 |
|
3,516 |
|
6,282 |
|
56,455 |
|
11.13 |
% | ||||
|
Real estate - construction |
|
328 |
|
900 |
|
1,228 |
|
65,761 |
|
1.87 |
% | ||||
|
Consumer |
|
234 |
|
601 |
|
835 |
|
132,510 |
|
0.63 |
% | ||||
|
Other loans |
|
— |
|
— |
|
— |
|
50,994 |
|
0.00 |
% | ||||
|
OREO & repossessed assets |
|
9,037 |
|
4,614 |
|
13,651 |
|
13,651 |
|
— |
| ||||
|
NPAs |
|
$ |
17,399 |
|
$ |
21,202 |
|
$ |
38,601 |
|
$ |
1,780,339 |
|
2.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans |
|
$ |
1,247,308 |
|
$ |
519,380 |
|
$ |
1,766,688 |
|
|
|
|
| |
|
Total loans and OREO |
|
1,256,345 |
|
523,994 |
|
1,780,339 |
|
|
|
|
| ||||
|
Nonperforming loans to loans |
|
0.67 |
% |
3.19 |
% |
1.41 |
% |
|
|
|
| ||||
|
Nonperforming loans and OREO to total loans and OREO |
|
1.38 |
% |
4.05 |
% |
2.17 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
| ||||||
|
|
|
Commercial |
|
Investment |
|
Wealth |
|
|
|
Support and |
|
|
| ||||||
|
(in thousands, except per share amounts) |
|
Banking |
|
Banking |
|
Management |
|
Insurance |
|
Other |
|
Consolidated |
| ||||||
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2012 |
|
$ |
24,993 |
|
$ |
1 |
|
$ |
(13 |
) |
$ |
1 |
|
$ |
(1,358 |
) |
$ |
23,624 |
|
|
Quarter ended March 31, 2012 |
|
24,663 |
|
3 |
|
(8 |
) |
— |
|
(1,355 |
) |
23,303 |
| ||||||
|
Annualized quarterly growth |
|
5.4 |
% |
(268.1 |
)% |
(251.4 |
)% |
— |
|
(.9 |
)% |
5.5 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2011 |
|
$ |
25,577 |
|
$ |
2 |
|
$ |
(11 |
) |
$ |
(1 |
) |
$ |
(1,236 |
) |
$ |
24,331 |
|
|
Annual growth |
|
(2.3 |
)% |
(50.0 |
)% |
(18.2 |
)% |
200.0 |
% |
(9.9 |
)% |
(2.9 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2012 |
|
$ |
2,965 |
|
$ |
148 |
|
$ |
2,134 |
|
$ |
2,517 |
|
$ |
(11 |
) |
$ |
7,753 |
|
|
Quarter ended March 31, 2012 |
|
3,430 |
|
74 |
|
2,261 |
|
2,410 |
|
36 |
|
8,211 |
| ||||||
|
Annualized quarterly growth |
|
(54.5 |
)% |
402.2 |
% |
(22.6 |
)% |
17.9 |
% |
(525.1 |
)% |
(22.4 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2011 |
|
$ |
3,065 |
|
$ |
857 |
|
$ |
2,381 |
|
$ |
2,450 |
|
$ |
37 |
|
$ |
8,790 |
|
|
Annual growth |
|
(3.3 |
)% |
(82.7 |
)% |
(10.4 |
)% |
2.7 |
% |
(129.7 |
)% |
(11.8 |
)% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2012 |
|
$ |
8,837 |
|
$ |
(455 |
) |
$ |
(359 |
) |
$ |
12 |
|
$ |
(1,885 |
) |
$ |
6,150 |
|
|
Quarter ended March 31, 2012 |
|
6,567 |
|
(531 |
) |
(252 |
) |
(57 |
) |
(1,187 |
) |
4,540 |
| ||||||
|
Annualized quarterly growth |
|
139.0 |
% |
57.6 |
% |
(170.8 |
)% |
486.9 |
% |
(236.5 |
)% |
142.6 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2011 |
|
$ |
7,910 |
|
$ |
(105 |
) |
$ |
(161 |
) |
$ |
(3 |
) |
$ |
(3,802 |
) |
$ |
3,839 |
|
|
Annual growth |
|
11.7 |
% |
(333.3 |
)% |
(123.0 |
)% |
500.0 |
% |
50.4 |
% |
60.2 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Earnings per share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2012 |
|
$ |
0.23 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
— |
|
$ |
(0.07 |
) |
$ |
0.14 |
|
|
Quarter ended March 31, 2012 |
|
0.17 |
|
(0.01 |
) |
(0.01 |
) |
— |
|
(0.05 |
) |
0.10 |
| ||||||
|
Annualized quarterly growth |
|
142.0 |
% |
.0 |
% |
.0 |
% |
— |
|
(160.9 |
)% |
160.9 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Quarter ended June 30, 2011 |
|
$ |
0.21 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(0.13 |
) |
$ |
0.08 |
|
|
Annual growth |
|
9.5 |
% |
(100.0 |
)% |
(100.0 |
)% |
.0 |
% |
46.2 |
% |
75.0 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,766,688 |
| |||||
|
At March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
1,678,447 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
21.1 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,656,950 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
6.6 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total deposits and customer repurchase agreements |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,074,133 |
| |||||
|
At March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
2,022,463 |
| ||||||
|
Annualized quarterly growth |
|
|
|
|
|
|
|
|
|
|
|
10.3 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
At June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,057,571 |
| |||||
|
Annual growth |
|
|
|
|
|
|
|
|
|
|
|
.8 |
% | ||||||
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
COMMERCIAL BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,759 |
|
$ |
26,476 |
|
$ |
27,214 |
|
$ |
27,797 |
|
$ |
27,964 |
|
|
Total interest expense |
|
1,766 |
|
1,813 |
|
1,948 |
|
2,155 |
|
2,387 |
| |||||
|
Net interest income |
|
24,993 |
|
24,663 |
|
25,266 |
|
25,642 |
|
25,577 |
| |||||
|
Provision for loan losses |
|
(1,841 |
) |
637 |
|
727 |
|
(2,068 |
) |
584 |
| |||||
|
Net interest income (loss) after provision |
|
26,834 |
|
24,026 |
|
24,539 |
|
27,710 |
|
24,993 |
| |||||
|
Noninterest income |
|
2,965 |
|
3,430 |
|
2,808 |
|
1,653 |
|
3,065 |
| |||||
|
Noninterest expense |
|
7,424 |
|
9,648 |
|
8,616 |
|
7,403 |
|
7,526 |
| |||||
|
Income (loss) before income taxes |
|
22,375 |
|
17,808 |
|
18,731 |
|
21,960 |
|
20,532 |
| |||||
|
Provision (benefit) for income taxes |
|
8,161 |
|
6,523 |
|
2,812 |
|
8,149 |
|
7,409 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
14,214 |
|
$ |
11,285 |
|
$ |
15,919 |
|
$ |
13,811 |
|
$ |
13,123 |
|
|
Management fees and overhead allocations, net of tax |
|
5,377 |
|
4,718 |
|
5,916 |
|
5,705 |
|
5,213 |
| |||||
|
Net income |
|
$ |
8,837 |
|
$ |
6,567 |
|
$ |
10,003 |
|
$ |
8,106 |
|
$ |
7,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INVESTMENT BANKING |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
3 |
|
$ |
2 |
|
$ |
1 |
|
$ |
2 |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income |
|
1 |
|
3 |
|
2 |
|
1 |
|
2 |
| |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
3 |
|
2 |
|
1 |
|
2 |
| |||||
|
Noninterest income |
|
148 |
|
74 |
|
5,431 |
|
205 |
|
857 |
| |||||
|
Noninterest expense |
|
823 |
|
871 |
|
3,160 |
|
868 |
|
980 |
| |||||
|
Income (loss) before income taxes |
|
(674 |
) |
(794 |
) |
2,273 |
|
(662 |
) |
(121 |
) | |||||
|
Provision (benefit) for income taxes |
|
(260 |
) |
(303 |
) |
870 |
|
(253 |
) |
(52 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(414 |
) |
$ |
(491 |
) |
$ |
1,403 |
|
$ |
(409 |
) |
$ |
(69 |
) |
|
Management fees and overhead allocations, net of tax |
|
41 |
|
40 |
|
33 |
|
47 |
|
36 |
| |||||
|
Net income (loss) |
|
$ |
(455 |
) |
$ |
(531 |
) |
$ |
1,370 |
|
$ |
(456 |
) |
$ |
(105 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
|
Total interest expense |
|
13 |
|
8 |
|
3 |
|
2 |
|
12 |
| |||||
|
Net interest income |
|
(13 |
) |
(8 |
) |
(3 |
) |
(2 |
) |
(11 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
(13 |
) |
(8 |
) |
(3 |
) |
(2 |
) |
(11 |
) | |||||
|
Noninterest income |
|
2,134 |
|
2,261 |
|
2,610 |
|
2,154 |
|
2,381 |
| |||||
|
Noninterest expense |
|
2,459 |
|
2,384 |
|
2,187 |
|
2,191 |
|
2,388 |
| |||||
|
Income (loss) before income taxes |
|
(338 |
) |
(131 |
) |
420 |
|
(39 |
) |
(18 |
) | |||||
|
Provision (benefit) for income taxes |
|
(140 |
) |
(44 |
) |
(21 |
) |
(4 |
) |
(14 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(198 |
) |
$ |
(87 |
) |
$ |
441 |
|
$ |
(35 |
) |
$ |
(4 |
) |
|
Management fees and overhead allocations, net of tax |
|
161 |
|
165 |
|
156 |
|
164 |
|
157 |
| |||||
|
Net income (loss) |
|
$ |
(359 |
) |
$ |
(252 |
) |
$ |
285 |
|
$ |
(199 |
) |
$ |
(161 |
) |
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INSURANCE |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
$ |
— |
|
|
Total interest expense |
|
— |
|
— |
|
— |
|
1 |
|
1 |
| |||||
|
Net interest income |
|
1 |
|
— |
|
1 |
|
— |
|
(1 |
) | |||||
|
Provision for loan losses |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net interest income (loss) after provision |
|
1 |
|
— |
|
1 |
|
— |
|
(1 |
) | |||||
|
Noninterest income |
|
2,517 |
|
2,410 |
|
2,194 |
|
2,089 |
|
2,450 |
| |||||
|
Noninterest expense |
|
2,318 |
|
2,328 |
|
2,300 |
|
2,181 |
|
2,307 |
| |||||
|
Income (loss) before income taxes |
|
200 |
|
82 |
|
(105 |
) |
(92 |
) |
142 |
| |||||
|
Provision (benefit) for income taxes |
|
81 |
|
36 |
|
(314 |
) |
(29 |
) |
58 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
119 |
|
$ |
46 |
|
$ |
209 |
|
$ |
(63 |
) |
$ |
84 |
|
|
Management fees and overhead allocations, net of tax |
|
107 |
|
103 |
|
80 |
|
115 |
|
87 |
| |||||
|
Net income (loss) |
|
$ |
12 |
|
$ |
(57 |
) |
$ |
129 |
|
$ |
(178 |
) |
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CORPORATE SUPPORT AND OTHER |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
81 |
|
$ |
115 |
|
$ |
67 |
|
$ |
(187 |
) |
$ |
210 |
|
|
Total interest expense |
|
1,439 |
|
1,470 |
|
1,481 |
|
1,480 |
|
1,446 |
| |||||
|
Net interest income |
|
(1,358 |
) |
(1,355 |
) |
(1,414 |
) |
(1,667 |
) |
(1,236 |
) | |||||
|
Provision for loan losses |
|
21 |
|
(707 |
) |
(347 |
) |
2,068 |
|
1,398 |
| |||||
|
Net interest income (loss) after provision |
|
(1,379 |
) |
(648 |
) |
(1,067 |
) |
(3,735 |
) |
(2,634 |
) | |||||
|
Noninterest income |
|
(11 |
) |
36 |
|
40 |
|
(50 |
) |
37 |
| |||||
|
Noninterest expense |
|
10,826 |
|
9,415 |
|
10,350 |
|
10,587 |
|
12,052 |
| |||||
|
Income (loss) before income taxes |
|
(12,216 |
) |
(10,027 |
) |
(11,377 |
) |
(14,372 |
) |
(14,649 |
) | |||||
|
Provision (benefit) for income taxes |
|
(4,645 |
) |
(3,814 |
) |
(15,359 |
) |
(5,511 |
) |
(5,354 |
) | |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
(7,571 |
) |
$ |
(6,213 |
) |
$ |
3,982 |
|
$ |
(8,861 |
) |
$ |
(9,295 |
) |
|
Management fees and overhead allocations, net of tax |
|
(5,686 |
) |
(5,026 |
) |
(6,185 |
) |
(6,031 |
) |
(5,493 |
) | |||||
|
Net income (loss) |
|
$ |
(1,885 |
) |
$ |
(1,187 |
) |
$ |
10,167 |
|
$ |
(2,830 |
) |
$ |
(3,802 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest income |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
$ |
27,612 |
|
$ |
28,177 |
|
|
Total interest expense |
|
3,218 |
|
3,291 |
|
3,432 |
|
3,638 |
|
3,846 |
| |||||
|
Net interest income |
|
23,624 |
|
23,303 |
|
23,852 |
|
23,974 |
|
24,331 |
| |||||
|
Provision for loan losses |
|
(1,820 |
) |
(70 |
) |
380 |
|
— |
|
1,982 |
| |||||
|
Net interest income (loss) after provision |
|
25,444 |
|
23,373 |
|
23,472 |
|
23,974 |
|
22,349 |
| |||||
|
Noninterest income |
|
7,753 |
|
8,211 |
|
13,083 |
|
6,051 |
|
8,790 |
| |||||
|
Noninterest expense |
|
23,850 |
|
24,646 |
|
26,613 |
|
23,230 |
|
25,253 |
| |||||
|
Income (loss) before income taxes |
|
9,347 |
|
6,938 |
|
9,942 |
|
6,795 |
|
5,886 |
| |||||
|
Provision (benefit) for income taxes |
|
3,197 |
|
2,398 |
|
(12,012 |
) |
2,352 |
|
2,047 |
| |||||
|
Net income (loss) before management fees and overhead allocations |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
|
Management fees and overhead allocations, net of tax |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Net income |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
(in thousands, except per share amounts) |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
|
2011 |
| |||||
|
Interest income |
|
$ |
26,842 |
|
$ |
26,594 |
|
$ |
27,284 |
|
$ |
27,612 |
|
$ |
28,177 |
|
|
Interest expense |
|
3,218 |
|
3,291 |
|
3,432 |
|
3,638 |
|
3,846 |
| |||||
|
Net interest income before provision |
|
23,624 |
|
23,303 |
|
23,852 |
|
23,974 |
|
24,331 |
| |||||
|
Provision for loan losses |
|
(1,820 |
) |
(70 |
) |
380 |
|
— |
|
1,982 |
| |||||
|
Net interest income after provision |
|
25,444 |
|
23,373 |
|
23,472 |
|
23,974 |
|
22,349 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposit service charges |
|
$ |
1,223 |
|
$ |
1,245 |
|
$ |
1,223 |
|
$ |
1,274 |
|
$ |
1,224 |
|
|
Investment advisory and trust income |
|
1,253 |
|
1,231 |
|
1,298 |
|
1,291 |
|
1,543 |
| |||||
|
Insurance income |
|
3,400 |
|
3,439 |
|
3,501 |
|
2,952 |
|
3,288 |
| |||||
|
Investment banking income |
|
148 |
|
74 |
|
5,431 |
|
205 |
|
857 |
| |||||
|
Other income |
|
1,729 |
|
2,222 |
|
1,630 |
|
329 |
|
1,878 |
| |||||
|
Total noninterest income |
|
7,753 |
|
8,211 |
|
13,083 |
|
6,051 |
|
8,790 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
$ |
14,746 |
|
$ |
15,573 |
|
$ |
17,826 |
|
$ |
14,212 |
|
$ |
15,953 |
|
|
Stock-based compensation expense |
|
516 |
|
489 |
|
357 |
|
372 |
|
341 |
| |||||
|
Occupancy expenses, premises and equipment |
|
3,426 |
|
3,533 |
|
3,576 |
|
3,358 |
|
3,322 |
| |||||
|
Amortization of intangibles |
|
159 |
|
160 |
|
159 |
|
160 |
|
159 |
| |||||
|
Other operating expenses |
|
4,474 |
|
4,438 |
|
3,940 |
|
4,272 |
|
4,535 |
| |||||
|
Net loss on securities, other assets and OREO |
|
529 |
|
453 |
|
755 |
|
856 |
|
943 |
| |||||
|
Total noninterest expense |
|
23,850 |
|
24,646 |
|
26,613 |
|
23,230 |
|
25,253 |
| |||||
|
Net income before income taxes |
|
9,347 |
|
6,938 |
|
9,942 |
|
6,795 |
|
5,886 |
| |||||
|
Provision (benefit) for income taxes |
|
3,197 |
|
2,398 |
|
(12,012 |
) |
2,352 |
|
2,047 |
| |||||
|
Net income |
|
$ |
6,150 |
|
$ |
4,540 |
|
$ |
21,954 |
|
$ |
4,443 |
|
$ |
3,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Preferred stock dividends |
|
(717 |
) |
(717 |
) |
(717 |
) |
(2,535 |
) |
(949 |
) | |||||
|
Net income available to common shareholders |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
$ |
1,908 |
|
$ |
2,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
0.08 |
|
|
Diluted |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
PROFITABILITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
4.19 |
% |
4.23 |
% |
4.27 |
% |
4.32 |
% |
4.40 |
% | |||||
|
Efficiency ratio |
|
74.32 |
% |
76.77 |
% |
70.01 |
% |
74.52 |
% |
73.40 |
% | |||||
|
Return on average assets |
|
1.00 |
% |
0.75 |
% |
3.61 |
% |
0.74 |
% |
0.64 |
% | |||||
|
Return on average shareholders’ equity |
|
10.22 |
% |
8.12 |
% |
42.89 |
% |
8.50 |
% |
7.37 |
% | |||||
|
Noninterest income as a percentage of operating revenues |
|
24.71 |
% |
26.06 |
% |
35.42 |
% |
20.15 |
% |
26.54 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EQUITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares outstanding at period end (in thousands) |
|
39,708 |
|
39,697 |
|
37,090 |
|
37,067 |
|
37,042 |
| |||||
|
Book value per common share |
|
$ |
4.69 |
|
$ |
4.59 |
|
$ |
4.39 |
|
$ |
3.83 |
|
$ |
3.95 |
|
|
Tangible book value per common share * |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
$ |
3.73 |
|
$ |
3.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tangible common equity to tangible assets * |
|
7.23 |
% |
7.29 |
% |
6.58 |
% |
5.74 |
% |
5.91 |
% | |||||
|
Tangible equity to tangible assets * |
|
9.50 |
% |
9.63 |
% |
8.95 |
% |
8.12 |
% |
8.51 |
% | |||||
|
Tier 1 capital ratio |
|
|
** |
14.93 |
% |
13.98 |
% |
13.21 |
% |
13.45 |
% | |||||
|
Total risk based capital ratio |
|
|
** |
17.28 |
% |
16.33 |
% |
15.68 |
% |
15.97 |
% | |||||
* See accompanying Non-GAAP reconciliation.
** Ratios unavailable at the time of release.
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
At |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2011 |
|
2011 |
|
2011 |
| |||||
|
PERIOD END BALANCES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
|
Loans |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
|
1,659,799 |
|
1,656,950 |
| |||||
|
Intangible assets |
|
3,439 |
|
3,239 |
|
3,399 |
|
3,558 |
|
3,718 |
| |||||
|
Deposits |
|
1,946,989 |
|
1,903,964 |
|
1,918,406 |
|
1,880,517 |
|
1,912,728 |
| |||||
|
Subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Common shareholders’ equity |
|
186,097 |
|
182,291 |
|
162,744 |
|
141,982 |
|
146,440 |
| |||||
|
Total shareholders’ equity |
|
243,435 |
|
239,629 |
|
220,082 |
|
199,341 |
|
209,137 |
| |||||
|
Interest-earning assets |
|
2,355,707 |
|
2,284,829 |
|
2,239,700 |
|
2,241,026 |
|
2,254,775 |
| |||||
|
Interest-bearing liabilities |
|
1,480,256 |
|
1,460,302 |
|
1,438,691 |
|
1,472,311 |
|
1,444,031 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LOANS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Commercial |
|
$ |
628,327 |
|
$ |
594,812 |
|
$ |
568,962 |
|
$ |
587,345 |
|
$ |
592,390 |
|
|
Real estate - mortgage |
|
832,641 |
|
805,694 |
|
784,491 |
|
782,771 |
|
772,652 |
| |||||
|
Land acquisition & development |
|
56,455 |
|
58,218 |
|
61,977 |
|
67,944 |
|
72,104 |
| |||||
|
Real estate - construction |
|
65,761 |
|
57,422 |
|
63,141 |
|
68,442 |
|
76,605 |
| |||||
|
Consumer |
|
132,510 |
|
116,833 |
|
116,676 |
|
112,709 |
|
104,887 |
| |||||
|
Other |
|
50,994 |
|
45,468 |
|
42,177 |
|
40,588 |
|
38,312 |
| |||||
|
Gross loans |
|
1,766,688 |
|
1,678,447 |
|
1,637,424 |
|
1,659,799 |
|
1,656,950 |
| |||||
|
Less allowance for loan losses |
|
(51,101 |
) |
(52,778 |
) |
(55,629 |
) |
(59,695 |
) |
(61,920 |
) | |||||
|
Total net loans |
|
$ |
1,715,587 |
|
$ |
1,625,669 |
|
$ |
1,581,795 |
|
$ |
1,600,104 |
|
$ |
1,595,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
NOW and money market |
|
$ |
767,102 |
|
$ |
768,620 |
|
$ |
773,826 |
|
$ |
718,689 |
|
$ |
713,701 |
|
|
Interest-bearing demand |
|
115,684 |
|
115,377 |
|
10,385 |
|
— |
|
— |
| |||||
|
Savings |
|
10,278 |
|
10,978 |
|
10,631 |
|
10,251 |
|
10,221 |
| |||||
|
Eurodollar |
|
— |
|
— |
|
97,748 |
|
104,971 |
|
94,047 |
| |||||
|
Certificates of deposits under $100,000 |
|
31,399 |
|
32,231 |
|
34,575 |
|
36,126 |
|
37,282 |
| |||||
|
Certificates of deposits $100,000 and over |
|
166,938 |
|
165,798 |
|
180,790 |
|
208,965 |
|
227,968 |
| |||||
|
Reciprocal CDARS |
|
94,336 |
|
87,978 |
|
89,638 |
|
93,909 |
|
92,817 |
| |||||
|
Total interest-bearing deposits |
|
1,185,737 |
|
1,180,982 |
|
1,197,593 |
|
1,172,911 |
|
1,176,036 |
| |||||
|
Noninterest-bearing demand deposits |
|
761,252 |
|
722,982 |
|
720,813 |
|
707,606 |
|
736,692 |
| |||||
|
Customer repurchase agreements |
|
127,144 |
|
118,499 |
|
127,948 |
|
131,877 |
|
144,843 |
| |||||
|
Total deposits and customer repurchase agreements |
|
$ |
2,074,133 |
|
$ |
2,022,463 |
|
$ |
2,046,354 |
|
$ |
2,012,394 |
|
$ |
2,057,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
BALANCE SHEET AVERAGES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
2,476,936 |
|
$ |
2,424,709 |
|
$ |
2,413,877 |
|
$ |
2,385,937 |
|
$ |
2,404,666 |
|
|
Average loans |
|
1,712,917 |
|
1,647,846 |
|
1,654,437 |
|
1,656,737 |
|
1,648,368 |
| |||||
|
Average deposits |
|
1,893,456 |
|
1,886,707 |
|
1,904,601 |
|
1,880,859 |
|
1,910,382 |
| |||||
|
Average subordinated debentures |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
|
93,150 |
| |||||
|
Average shareholders’ equity |
|
242,098 |
|
224,899 |
|
203,064 |
|
207,462 |
|
208,886 |
| |||||
|
Average interest-earning assets |
|
2,310,064 |
|
2,248,628 |
|
2,246,836 |
|
2,230,789 |
|
2,244,327 |
| |||||
|
Average interest-bearing liabilities |
|
1,481,794 |
|
1,444,649 |
|
1,462,576 |
|
1,447,242 |
|
1,454,821 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for loan losses |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
59,695 |
|
$ |
61,920 |
|
$ |
61,995 |
|
|
Provision for loan losses |
|
(1,820 |
) |
(70 |
) |
380 |
|
— |
|
1,982 |
| |||||
|
Net recovery (charge-off) |
|
143 |
|
(2,781 |
) |
(4,446 |
) |
(2,225 |
) |
(2,057 |
) | |||||
|
Ending allowance for loan losses |
|
$ |
51,101 |
|
$ |
52,778 |
|
$ |
55,629 |
|
$ |
59,695 |
|
$ |
61,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Beginning allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
$ |
61 |
|
$ |
61 |
|
|
Provision for credit losses |
|
— |
|
— |
|
(26 |
) |
— |
|
— |
| |||||
|
Ending allowance for credit losses |
|
$ |
35 |
|
$ |
35 |
|
$ |
35 |
|
$ |
61 |
|
$ |
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total provision for loan and credit losses |
|
$ |
(1,820 |
) |
$ |
(70 |
) |
$ |
354 |
|
$ |
— |
|
$ |
1,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming Loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonaccrual loans |
|
$ |
24,950 |
|
$ |
27,941 |
|
$ |
27,024 |
|
$ |
41,365 |
|
$ |
41,000 |
|
|
Loans 90 days or more past due and accruing interest |
|
— |
|
— |
|
212 |
|
— |
|
360 |
| |||||
|
Total nonperforming loans |
|
24,950 |
|
27,941 |
|
27,236 |
|
41,365 |
|
41,360 |
| |||||
|
OREO and repossessed assets |
|
13,651 |
|
17,224 |
|
18,502 |
|
20,986 |
|
23,748 |
| |||||
|
Total nonperforming assets |
|
$ |
38,601 |
|
$ |
45,165 |
|
$ |
45,738 |
|
$ |
62,351 |
|
$ |
65,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Performing renegotiated loans |
|
$ |
36,010 |
|
$ |
27,184 |
|
$ |
20,633 |
|
$ |
659 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
ASSET QUALITY MEASURES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to total assets |
|
1.53 |
% |
1.84 |
% |
1.89 |
% |
2.58 |
% |
2.69 |
% | |||||
|
Nonperforming loans to total loans |
|
1.41 |
% |
1.66 |
% |
1.66 |
% |
2.49 |
% |
2.50 |
% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
|
2.17 |
% |
2.66 |
% |
2.76 |
% |
3.71 |
% |
3.87 |
% | |||||
|
Allowance for loan and credit losses to total loans |
|
2.89 |
% |
3.15 |
% |
3.40 |
% |
3.60 |
% |
3.74 |
% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
|
204.95 |
% |
189.02 |
% |
204.38 |
% |
144.46 |
% |
149.86 |
% | |||||
CoBiz Financial Inc.
June 30, 2012
(unaudited)
|
|
|
Three months ended, |
| ||||||||||||||||||||||
|
|
|
June 30, 2012 |
|
March 31, 2012 |
|
June 30, 2011 |
| ||||||||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Federal funds sold and other |
|
$ |
21,379 |
|
$ |
24 |
|
0.44 |
% |
$ |
21,276 |
|
$ |
26 |
|
0.48 |
% |
$ |
36,953 |
|
$ |
38 |
|
0.41 |
% |
|
Investment securities |
|
629,087 |
|
5,331 |
|
3.39 |
% |
634,960 |
|
5,399 |
|
3.40 |
% |
621,276 |
|
5,864 |
|
3.78 |
% | ||||||
|
Loans |
|
1,712,917 |
|
21,937 |
|
5.07 |
% |
1,647,846 |
|
21,536 |
|
5.17 |
% |
1,648,368 |
|
22,584 |
|
5.42 |
% | ||||||
|
Allowance for loan losses |
|
(53,319 |
) |
|
|
|
|
(55,454 |
) |
|
|
|
|
(62,270 |
) |
|
|
|
| ||||||
|
Total interest-earning assets |
|
$ |
2,310,064 |
|
$ |
27,292 |
|
4.57 |
% |
$ |
2,248,628 |
|
$ |
26,961 |
|
4.63 |
% |
$ |
2,244,327 |
|
$ |
28,486 |
|
4.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Noninterest-earning assets |
|
166,872 |
|
|
|
|
|
176,081 |
|
|
|
|
|
160,339 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
2,476,936 |
|
|
|
|
|
$ |
2,424,709 |
|
|
|
|
|
$ |
2,404,666 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NOW and money market |
|
$ |
764,077 |
|
$ |
938 |
|
0.49 |
% |
$ |
766,870 |
|
$ |
988 |
|
0.52 |
% |
$ |
721,222 |
|
$ |
1,181 |
|
0.66 |
% |
|
Interest-bearing demand |
|
110,928 |
|
137 |
|
0.50 |
% |
102,894 |
|
156 |
|
0.61 |
% |
— |
|
— |
|
0.00 |
% | ||||||
|
Savings |
|
10,386 |
|
3 |
|
0.12 |
% |
10,882 |
|
3 |
|
0.11 |
% |
9,870 |
|
5 |
|
0.20 |
% | ||||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
— |
|
— |
|
0.00 |
% |
93,224 |
|
174 |
|
0.74 |
% | ||||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reciprocal |
|
94,652 |
|
115 |
|
0.49 |
% |
89,480 |
|
113 |
|
0.51 |
% |
97,478 |
|
144 |
|
0.59 |
% | ||||||
|
Under $100,000 |
|
31,758 |
|
50 |
|
0.63 |
% |
33,360 |
|
59 |
|
0.71 |
% |
38,794 |
|
93 |
|
0.96 |
% | ||||||
|
$100,000 and over |
|
165,506 |
|
308 |
|
0.75 |
% |
167,463 |
|
327 |
|
0.79 |
% |
232,456 |
|
535 |
|
0.92 |
% | ||||||
|
Total interest-bearing deposits |
|
$ |
1,177,307 |
|
$ |
1,551 |
|
0.53 |
% |
$ |
1,170,949 |
|
$ |
1,646 |
|
0.57 |
% |
$ |
1,193,044 |
|
$ |
2,132 |
|
0.72 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Securities sold under agreements to repurchase |
|
125,525 |
|
97 |
|
0.31 |
% |
131,072 |
|
107 |
|
0.32 |
% |
160,832 |
|
209 |
|
0.51 |
% | ||||||
|
Other short-term borrowings |
|
85,812 |
|
68 |
|
0.31 |
% |
49,478 |
|
36 |
|
0.29 |
% |
7,795 |
|
4 |
|
0.20 |
% | ||||||
|
Long-term debt |
|
93,150 |
|
1,502 |
|
6.38 |
% |
93,150 |
|
1,502 |
|
6.38 |
% |
93,150 |
|
1,501 |
|
6.37 |
% | ||||||
|
Total interest-bearing liabilities |
|
$ |
1,481,794 |
|
$ |
3,218 |
|
0.87 |
% |
$ |
1,444,649 |
|
$ |
3,291 |
|
0.91 |
% |
$ |
1,454,821 |
|
$ |
3,846 |
|
1.05 |
% |
|
Noninterest-bearing demand accounts |
|
716,149 |
|
|
|
|
|
715,758 |
|
|
|
|
|
717,338 |
|
|
|
|
| ||||||
|
Total deposits and interest-bearing liabilities |
|
2,197,943 |
|
|
|
|
|
2,160,407 |
|
|
|
|
|
2,172,159 |
|
|
|
|
| ||||||
|
Other noninterest-bearing liabilities |
|
36,895 |
|
|
|
|
|
39,403 |
|
|
|
|
|
23,621 |
|
|
|
|
| ||||||
|
Total liabilities |
|
2,234,838 |
|
|
|
|
|
2,199,810 |
|
|
|
|
|
2,195,780 |
|
|
|
|
| ||||||
|
Total equity |
|
242,098 |
|
|
|
|
|
224,899 |
|
|
|
|
|
208,886 |
|
|
|
|
| ||||||
|
Total liabilities and equity |
|
$ |
2,476,936 |
|
|
|
|
|
$ |
2,424,709 |
|
|
|
|
|
$ |
2,404,666 |
|
|
|
|
| |||
|
Net interest income - taxable equivalent |
|
|
|
$ |
24,074 |
|
|
|
|
|
$ |
23,670 |
|
|
|
|
|
$ |
24,640 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
3.70 |
% |
|
|
|
|
3.72 |
% |
|
|
|
|
3.83 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
4.19 |
% |
|
|
|
|
4.23 |
% |
|
|
|
|
4.40 |
% | ||||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
155.90 |
% |
|
|
|
|
155.65 |
% |
|
|
|
|
154.27 |
% |
|
|
|
| ||||||
CoBiz Financial Inc.
June 30, 2012
|
|
|
For the six months ended June 30, |
| ||||||||||||||
|
|
|
2012 |
|
2011 |
| ||||||||||||
|
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||
|
|
|
Average |
|
earned |
|
yield |
|
Average |
|
earned |
|
yield |
| ||||
|
(in thousands) |
|
balance |
|
or paid |
|
or cost |
|
balance |
|
or paid |
|
or cost |
| ||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Federal funds sold and other |
|
$ |
21,327 |
|
$ |
50 |
|
0.46 |
% |
$ |
38,095 |
|
$ |
75 |
|
0.39 |
% |
|
Investment securities |
|
632,007 |
|
10,730 |
|
3.40 |
% |
625,159 |
|
11,855 |
|
3.79 |
% | ||||
|
Loans |
|
1,680,561 |
|
43,473 |
|
5.12 |
% |
1,646,834 |
|
44,953 |
|
5.43 |
% | ||||
|
Allowance for loan losses |
|
(54,380 |
) |
|
|
|
|
(64,053 |
) |
|
|
|
| ||||
|
Total interest earning-assets |
|
$ |
2,279,515 |
|
$ |
54,253 |
|
4.60 |
% |
$ |
2,246,035 |
|
$ |
56,883 |
|
4.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Noninterest-earning assets |
|
171,450 |
|
|
|
|
|
162,044 |
|
|
|
|
| ||||
|
Total assets |
|
$ |
2,450,965 |
|
|
|
|
|
$ |
2,408,079 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NOW and money market |
|
$ |
765,466 |
|
$ |
1,926 |
|
0.51 |
% |
$ |
698,922 |
|
$ |
2,287 |
|
0.66 |
% |
|
Interest-bearing demand |
|
107,044 |
|
293 |
|
0.55 |
% |
— |
|
— |
|
0.00 |
% | ||||
|
Savings |
|
10,632 |
|
6 |
|
0.11 |
% |
9,618 |
|
10 |
|
0.21 |
% | ||||
|
Eurodollar |
|
— |
|
— |
|
0.00 |
% |
95,433 |
|
356 |
|
0.74 |
% | ||||
|
Certificates of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Brokered under $100,000 |
|
— |
|
— |
|
0.00 |
% |
10 |
|
— |
|
1.37 |
% | ||||
|
Reciprocal |
|
92,080 |
|
228 |
|
0.50 |
% |
123,391 |
|
407 |
|
0.67 |
% | ||||
|
Under $100,000 |
|
32,554 |
|
109 |
|
0.67 |
% |
40,035 |
|
200 |
|
1.01 |
% | ||||
|
$100,000 and over |
|
166,480 |
|
635 |
|
0.77 |
% |
230,941 |
|
1,124 |
|
0.98 |
% | ||||
|
Total interest-bearing deposits |
|
$ |
1,174,256 |
|
$ |
3,197 |
|
0.55 |
% |
$ |
1,198,350 |
|
$ |
4,384 |
|
0.74 |
% |
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Securities sold under agreements to repurchase |
|
128,283 |
|
204 |
|
0.31 |
% |
158,826 |
|
416 |
|
0.52 |
% | ||||
|
Other short-term borrowings |
|
67,745 |
|
104 |
|
0.30 |
% |
7,032 |
|
9 |
|
0.25 |
% | ||||
|
Long-term debt |
|
93,150 |
|
3,004 |
|
6.38 |
% |
93,150 |
|
2,984 |
|
6.37 |
% | ||||
|
Total interest-bearing liabilities |
|
$ |
1,463,434 |
|
$ |
6,509 |
|
0.89 |
% |
$ |
1,457,358 |
|
$ |
7,793 |
|
1.07 |
% |
|
Noninterest-bearing demand accounts |
|
715,844 |
|
|
|
|
|
719,314 |
|
|
|
|
| ||||
|
Total deposits and interest-bearing liabilities |
|
2,179,278 |
|
|
|
|
|
2,176,672 |
|
|
|
|
| ||||
|
Other noninterest-bearing liabilities |
|
38,141 |
|
|
|
|
|
24,268 |
|
|
|
|
| ||||
|
Total liabilities |
|
2,217,419 |
|
|
|
|
|
2,200,940 |
|
|
|
|
| ||||
|
Total equity |
|
233,546 |
|
|
|
|
|
207,139 |
|
|
|
|
| ||||
|
Total liabilities and equity |
|
$ |
2,450,965 |
|
|
|
|
|
$ |
2,408,079 |
|
|
|
|
| ||
|
Net interest income - taxable equivalent |
|
|
|
$ |
47,744 |
|
|
|
|
|
$ |
49,090 |
|
|
| ||
|
Net interest spread |
|
|
|
|
|
3.71 |
% |
|
|
|
|
3.82 |
% | ||||
|
Net interest margin |
|
|
|
|
|
4.21 |
% |
|
|
|
|
4.41 |
% | ||||
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
155.76 |
% |
|
|
|
|
154.12 |
% |
|
|
|
| ||||
CoBiz Financial Inc.
June 30, 2012
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(in thousands, except per share amounts)
The Company believes these Non-GAAP measurements are useful to obtain an understanding of the operating results of the Company’s core business and reflects the basis on which management internally reviews financial performance and capital adequacy. These Non-GAAP measurements are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to Non-GAAP performance measures that may be presented by other companies.
The following table includes Non-GAAP financial measurements related to tangible equity, tangible common equity, and tangible assets. These items have been adjusted to exclude intangible assets and preferred stock. The table also includes Non-GAAP financial measurements related to earnings per share as adjusted for items the Company does not believe are representative of its core earnings.
|
|
|
|
At |
| |||||||||||||
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
|
|
|
2012 |
|
2012 |
|
2011 |
|
2011 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
Shareholders’ equity as reported - GAAP |
|
$ |
243,435 |
|
$ |
239,629 |
|
$ |
220,082 |
|
$ |
199,341 |
|
$ |
209,137 |
|
|
|
Intangible assets |
|
(3,439 |
) |
(3,239 |
) |
(3,399 |
) |
(3,558 |
) |
(3,718 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A |
Tangible equity - Non-GAAP |
|
239,996 |
|
236,390 |
|
216,683 |
|
195,783 |
|
205,419 |
| |||||
|
|
Preferred stock |
|
(57,338 |
) |
(57,338 |
) |
(57,338 |
) |
(57,359 |
) |
(62,697 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B |
Tangible common equity - Non-GAAP |
|
$ |
182,658 |
|
$ |
179,052 |
|
$ |
159,345 |
|
$ |
138,424 |
|
$ |
142,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
Total assets as reported - GAAP |
|
$ |
2,530,133 |
|
$ |
2,458,289 |
|
$ |
2,423,504 |
|
$ |
2,416,052 |
|
$ |
2,418,235 |
|
|
|
Intangible assets |
|
(3,439 |
) |
(3,239 |
) |
(3,399 |
) |
(3,558 |
) |
(3,718 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
C |
Total tangible assets - Non-GAAP |
|
$ |
2,526,694 |
|
$ |
2,455,050 |
|
$ |
2,420,105 |
|
$ |
2,412,494 |
|
$ |
2,414,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
D |
Common shares outstanding |
|
39,708 |
|
39,697 |
|
37,090 |
|
37,067 |
|
37,042 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / C |
Tangible common equity to tangible assets - Non-GAAP |
|
7.23 |
% |
7.29 |
% |
6.58 |
% |
5.74 |
% |
5.91 |
% | |||||
|
A / C |
Tangible equity to tangible assets - Non-GAAP |
|
9.50 |
% |
9.63 |
% |
8.95 |
% |
8.12 |
% |
8.51 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
B / D |
Tangible book value per common share - Non-GAAP |
|
$ |
4.60 |
|
$ |
4.51 |
|
$ |
4.30 |
|
$ |
3.73 |
|
$ |
3.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
Net income available to common shareholders as reported - GAAP |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
21,237 |
|
$ |
1,908 |
|
$ |
2,890 |
|
|
|
Effect of excluding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
E |
Deferred tax valuation allowance |
|
— |
|
— |
|
(15,596 |
) |
— |
|
— |
| |||||
|
F |
Accretion of preferred stock discount recorded in the quarter of redemption and original issuance costs |
|
— |
|
— |
|
— |
|
1,753 |
|
— |
| |||||
|
|
Adjusted net income available to common shareholders- Non-GAAP |
|
$ |
5,433 |
|
$ |
3,823 |
|
$ |
5,641 |
|
$ |
3,661 |
|
$ |
2,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
Earnings per common share - GAAP |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.57 |
|
$ |
0.05 |
|
$ |
0.08 |
|
|
E / D |
Effect of deferred tax valuation allowance |
|
— |
|
— |
|
(0.42 |
) |
— |
|
— |
| |||||
|
F / D |
Effect of discount accretion and issuance cost exclusion |
|
— |
|
— |
|
— |
|
0.05 |
|
— |
| |||||
|
|
Adjusted earnings per common share - Non-GAAP |
|
$ |
0.14 |
|
$ |
0.10 |
|
$ |
0.15 |
|
$ |
0.10 |
|
$ |
0.08 |
|