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| 8-K - 8-K - COBIZ FINANCIAL INC | cobz-20140717x8k.htm |
CoBiz Financial Announces Second Quarter 2014 Results
Net income available to common shareholders increased 58%;
27% annualized loan growth from first quarter 2014
Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $3.0 billion in assets, announced net income available to common shareholders of $8.5 million for the second quarter of 2014, or $0.21 per diluted common share. Net income available to common shareholders for the second quarter of 2013 was $7.1 million, or $0.18 per diluted common share. Return on average assets for the second quarter of 2014 was 1.19% versus 1.09% for the prior-year quarter, and return on average shareholders’ equity was 11.86% for the second quarter of 2014 versus 10.93% for the prior-year quarter.
Financial highlights – Second quarter 2014
|
· |
Income available to common shareholders increased by 58% from the first quarter of 2014 (linked-quarter) and 19% from the prior-year quarter. |
|
· |
Loans increased $142.4 million, or 26.5% annualized, from March 31, 2014 and $276.8 million, or 13.7%, from June 30, 2013. |
|
· |
Net interest income on a tax-equivalent basis (NII) increased $1.5 million from the linked-quarter, and $3.3 million, or 13.6%, from the prior-year quarter. The net interest margin expanded two basis points from the linked-quarter and 14 basis points from the prior-year quarter. |
|
· |
The efficiency ratio1 improved to 68.5% for the current quarter, compared to 77.4% for the first quarter of 2014 and 69.8% for the second quarter of 2013. The improvement was the result of NII and fee income growing at a greater rate than core noninterest expenses. |
Financial Summary
|
Quarter ended (unaudited) |
2Q14 change vs. |
|||||||||||||||
|
(in thousands, except per share amounts) |
2Q14 |
1Q14 |
2Q13 |
1Q14 |
2Q13 |
|||||||||||
|
Net interest income before provision |
$ |
26,353 |
$ |
24,905 |
$ |
23,365 |
$ |
1,448 | 5.8% |
$ |
2,988 | 12.8% | ||||
|
Provision for loan losses |
(941) | (1,888) | (1,065) | 947 | 50.2% | 124 | 11.6% | |||||||||
|
Net interest income after provision |
27,294 | 26,793 | 24,430 | 501 | 1.9% | 2,864 | 11.7% | |||||||||
|
Total noninterest income |
9,037 | 5,681 | 8,425 | 3,356 | 59.1% | 612 | 7.3% | |||||||||
|
Total noninterest expense |
23,232 | 24,147 | 21,594 | (915) |
(3.8)% |
1,638 | 7.6% | |||||||||
|
Net income before income taxes |
13,099 | 8,327 | 11,261 | 4,772 | 57.3% | 1,838 | 16.3% | |||||||||
|
Provision for income taxes |
4,482 | 2,810 | 3,999 | 1,672 | 59.5% | 483 | 12.1% | |||||||||
|
Net income |
8,617 | 5,517 | 7,262 | 3,100 | 56.2% | 1,355 | 18.7% | |||||||||
|
Preferred stock dividends |
(143) | (143) | (143) |
- |
0.0% |
- |
0.0% | |||||||||
|
Net income available to common shareholders |
$ |
8,474 |
$ |
5,374 |
$ |
7,119 |
$ |
3,100 | 57.7% |
$ |
1,355 | 19.0% | ||||
|
Diluted earnings per common share |
$ |
0.21 |
$ |
0.13 |
$ |
0.18 |
$ |
0.08 | 63.1% |
$ |
0.03 | 17.8% | ||||
|
KEY RATIOS |
||||||||||||||||
|
Net interest margin |
3.92% | 3.90% | 3.78% | |||||||||||||
|
Efficiency ratio(1) |
68.49% | 77.39% | 69.77% | |||||||||||||
|
Return on average assets |
1.19% | 0.80% | 1.09% | |||||||||||||
|
Return on average shareholders' equity |
11.86% | 7.86% | 10.93% | |||||||||||||
|
Noninterest income as a percentage of operating revenues |
25.54% | 18.57% | 26.50% | |||||||||||||
1The efficiency ratio equals noninterest expenses adjusted to exclude gains and losses on OREO, other assets and investments, divided by the sum of tax equivalent net interest income and noninterest income. To calculate tax equivalent net interest income, the interest earned on tax exempt loans and investment securities has been adjusted to reflect the amount that would have been earned had these investments been subject to normal income taxation.
“We are very pleased with the continued momentum we see across the franchise,” said Chairman and CEO Steve Bangert. “Loan generation for the second quarter was strong. Importantly, the growth was broad-based, with both Colorado and Arizona contributing and increases across all business lines. Sustained loan growth coupled with a stable net interest margin allowed for a meaningful increase in net interest income. Fee income during the quarter was also strong, and we continue to benefit from improving credit quality. Combined with disciplined expense management, we generated strong results for the quarter, reporting a return on average assets of 1.19%.”
1 | Page
Loans
|
· |
Loans at June 30, 2014, were $2.3 billion, increasing $142.4 million or 26.5% annualized from March 31, 2014. From June 30, 2013, loans increased $276.8 million, or 13.7%. |
|
· |
Loan growth was broad-based, increasing across both markets and most loan categories. Loans increased $59.4 million and $83.0 million, respectively, for Arizona and Colorado from the first quarter of 2014. |
|
· |
Loan growth reflected in the construction & land category is primarily related to construction loans. |
|
Quarter ended (unaudited) |
2Q14 change vs. |
|||||||||||||||
|
(in thousands) |
2Q14 |
1Q14 |
2Q13 |
1Q14 |
2Q13 |
|||||||||||
|
LOANS |
||||||||||||||||
|
Commercial & industrial |
$ |
917,494 |
$ |
860,060 |
$ |
813,186 |
$ |
57,434 | 6.7% |
$ |
104,308 | 12.8% | ||||
|
Owner-occupied real estate |
497,945 | 463,192 | 442,132 | 34,753 | 7.5% | 55,813 | 12.6% | |||||||||
|
Investor real estate |
480,454 | 462,855 | 442,447 | 17,599 | 3.8% | 38,007 | 8.6% | |||||||||
|
Construction & land |
160,452 | 136,018 | 95,127 | 24,434 | 18.0% | 65,325 | 68.7% | |||||||||
|
Consumer |
194,339 | 183,156 | 168,606 | 11,183 | 6.1% | 25,733 | 15.3% | |||||||||
|
Other |
43,960 | 47,013 | 56,346 | (3,053) |
(6.5)% |
(12,386) |
(22.0)% |
|||||||||
|
Total loans |
$ |
2,294,644 |
$ |
2,152,294 |
$ |
2,017,844 |
$ |
142,350 | 6.6% |
$ |
276,800 | 13.7% | ||||
|
· |
Strong new loan activity, coupled with an increase in advances on existing credit lines, outpaced paydowns and maturities. |
|
Quarter ended (unaudited) |
||||||||||||||
|
(in thousands) |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|||||||||
|
Loans - beginning balance |
$ |
2,152,294 |
$ |
2,084,359 |
$ |
2,048,866 |
$ |
2,017,844 |
$ |
1,925,806 | ||||
|
New credit extended |
201,805 | 105,542 | 158,801 | 136,138 | 149,053 | |||||||||
|
Credit advanced |
117,203 | 90,736 | 79,126 | 88,680 | 96,122 | |||||||||
|
Paydowns & maturities |
(175,311) | (128,143) | (201,026) | (193,396) | (151,176) | |||||||||
|
Gross loan charge-offs |
(1,347) | (200) | (1,408) | (400) | (1,961) | |||||||||
|
Loans - ending balance |
$ |
2,294,644 |
$ |
2,152,294 |
$ |
2,084,359 |
$ |
2,048,866 |
$ |
2,017,844 | ||||
|
Net change - loans outstanding |
$ |
142,350 |
$ |
67,935 |
$ |
35,493 |
$ |
31,022 |
$ |
92,038 | ||||
|
· |
Gross credit commitments increased $92.9 million during the second quarter of 2014, an annualized increase of 29.6% from the linked-quarter. |
|
· |
Line utilization was 41.5% at June 30, 2014, as compared to 38.7% and 40.3%, respectively, from the linked- and prior-year quarters. |
Deposits and Customer Repurchase Agreements (Customer Funding)
|
· |
Customer Funding (which excludes brokered CDs) for the second quarter of 2014 had a seasonal decrease of $58.5 million from the linked-quarter, but increased $184.3 million, or 8.5%, from the prior-year quarter. |
|
· |
Noninterest-bearing demand (NIB) accounts increased $23.5 million on a linked-quarter basis, and $95.2 million, or 11.0%, from June 30, 2013. The percentage of NIB to total deposits was 41.8% at June 30, 2014. |
|
· |
The decrease in customer repurchase agreements is the result of a concerted effort to transition clients out of our collateralized sweep product into other deposit categories. |
2 | Page
|
Quarter ended (unaudited) |
2Q14 change vs. |
|||||||||||||||
|
(in thousands) |
2Q14 |
1Q14 |
2Q13 |
1Q14 |
2Q13 |
|||||||||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
||||||||||||||||
|
Money market |
$ |
599,234 |
$ |
590,596 |
$ |
561,079 |
$ |
8,638 | 1.5% |
$ |
38,155 | 6.8% | ||||
|
Interest-bearing demand and NOW |
491,347 | 542,304 | 337,294 | (50,957) |
(9.4)% |
154,053 | 45.7% | |||||||||
|
Savings |
15,134 | 13,979 | 11,612 | 1,155 | 8.3% | 3,522 | 30.3% | |||||||||
|
Certificates of deposits under $100 |
25,704 | 26,965 | 29,359 | (1,261) |
(4.7)% |
(3,655) |
(12.4)% |
|||||||||
|
Certificates of deposits $100 and over |
126,487 | 130,226 | 136,077 | (3,739) |
(2.9)% |
(9,590) |
(7.0)% |
|||||||||
|
Brokered CDs |
19,996 |
- |
- |
19,996 | 100.0% | 19,996 | 100.0% | |||||||||
|
Reciprocal CDARS |
60,651 | 81,589 | 95,157 | (20,938) |
(25.7)% |
(34,506) |
(36.3)% |
|||||||||
|
Total interest-bearing deposits |
1,338,553 | 1,385,659 | 1,170,578 | (47,106) |
(3.4)% |
167,975 | 14.3% | |||||||||
|
Noninterest-bearing demand deposits |
960,600 | 937,077 | 865,393 | 23,523 | 2.5% | 95,207 | 11.0% | |||||||||
|
Customer repurchase agreements |
74,565 | 89,521 | 133,402 | (14,956) |
(16.7)% |
(58,837) |
(44.1)% |
|||||||||
|
Total deposits and customer repurchase agreements |
$ |
2,373,718 |
$ |
2,412,257 |
$ |
2,169,373 |
$ |
(38,539) |
(1.6)% |
$ |
204,345 | 9.4% | ||||
Allowance for Loan and Credit Losses (Allowance) and Credit Quality
|
· |
Nonperforming assets were $12.1 million at June 30, 2014, compared to $15.5 million at March 31, 2014 and $32.8 million at June 30, 2013. |
|
· |
Due to an improvement in overall credit quality metrics, a negative provision for loan losses of $0.9 million was recorded during the second quarter of 2014. |
|
· |
The coverage of Allowance to nonperforming loans increased to 424.3% at June 30, 2014, from 335.3% at March 31, 2014, and 168.7% at June 30, 2013. |
|
Quarter ended (unaudited) |
||||||||
|
(in thousands) |
2Q14 |
1Q14 |
2Q13 |
|||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
||||||||
|
Beginning allowance for loan losses |
$ |
35,603 |
$ |
37,050 |
$ |
44,874 | ||
|
Provision for loan losses |
(941) | (1,888) | (1,065) | |||||
|
Net recovery (charge-off) |
(740) | 441 | (577) | |||||
|
Ending allowance for loan losses |
$ |
33,922 |
$ |
35,603 |
$ |
43,232 | ||
|
CREDIT QUALITY |
||||||||
|
Nonaccrual loans |
$ |
7,861 |
$ |
10,618 |
$ |
25,634 | ||
|
Loans 90 days or more past due and accruing interest |
134 |
- |
- |
|||||
|
Total nonperforming loans |
7,995 | 10,618 | 25,634 | |||||
|
OREO and repossessed assets |
4,148 | 4,911 | 7,185 | |||||
|
Total nonperforming assets |
$ |
12,143 |
$ |
15,529 |
$ |
32,819 | ||
|
Performing renegotiated loans |
$ |
24,033 |
$ |
30,290 |
$ |
29,623 | ||
|
Classified loans |
$ |
41,357 |
$ |
38,278 |
$ |
64,300 | ||
|
ASSET QUALITY MEASURES |
||||||||
|
Nonperforming assets to total assets |
0.40% | 0.54% | 1.20% | |||||
|
Nonperforming loans to total loans |
0.35% | 0.49% | 1.27% | |||||
|
Nonperforming loans and OREO to total loans and OREO |
0.53% | 0.72% | 1.62% | |||||
|
Allowance for loan and credit losses to total loans |
1.48% | 1.65% | 2.14% | |||||
|
Allowance for loan and credit losses to nonperforming loans |
424.29% | 335.31% | 168.65% | |||||
3 | Page
Shareholders’ Equity
|
· |
Total shareholders’ equity increased $8.6 million from March 31, 2014, to $296.1 million at June 30, 2014. |
|
· |
The tangible common equity to tangible assets ratio decreased modestly to 7.8% at June 30, 2014, from 8.0% at March 31, 2014, due to strong asset generation late in the second quarter. |
|
· |
On July 17, 2014, the Board of Directors of the Company increased the quarterly cash dividend to $0.04 per common share from $0.035 per share. The dividend will be paid on August 4, 2014, to shareholders of record on July 28, 2014. |
|
Quarter ended (unaudited) |
||||||||
|
(in thousands, except per share amounts) |
2Q14 |
1Q14 |
2Q13 |
|||||
|
EQUITY MEASURES |
||||||||
|
Common shareholders' equity |
$ |
238,760 |
$ |
230,182 |
$ |
209,341 | ||
|
Total shareholders' equity |
296,098 | 287,520 | 266,679 | |||||
|
Common shares outstanding at period end |
40,642 | 40,622 | 40,282 | |||||
|
Book value per common share |
$ |
5.87 |
$ |
5.67 |
$ |
5.20 | ||
|
Tangible book value per common share * |
$ |
5.81 |
$ |
5.60 |
$ |
5.12 | ||
|
Tangible common equity to tangible assets * |
7.82% | 7.98% | 7.54% | |||||
|
Tangible equity to tangible assets * |
9.71% | 10.00% | 9.63% | |||||
|
Tier 1 capital ratio |
** |
14.43% | 14.52% | |||||
|
Total-risk based capital ratio |
** |
15.68% | 16.70% | |||||
|
* See accompanying Reconciliation of Non-GAAP measures to GAAP |
||||||||
|
** Ratios unavailable at the time of release. |
||||||||
Net Interest Income and Margin
|
· |
Net interest income on a tax-equivalent basis was $27.3 million for the second quarter of 2014, an increase of $1.5 million from the linked-quarter. |
|
· |
The net interest margin expanded by two basis points on a linked-quarter basis to 3.92%. |
|
· |
Average interest earning assets of $2.8 billion increased $114.2 million on a linked-quarter basis. |
|
o |
From the first quarter of 2014, average loans increased $128.2 million while average federal funds sold, interest-earning deposits and investments decreased $13.9 million. |
|
· |
The yield on average loans was stable compared to the linked-quarter at 4.47%. Overall, average loans as a percentage of average earning assets increased to 80.1% from 78.7% on a linked-quarter basis. |
|
· |
The rate paid on average interest-bearing liabilities decreased five basis points from the linked-quarter to 0.52%. |
Noninterest Income
|
· |
Total noninterest income increased $3.4 million to $9.0 million from the linked quarter, and $0.6 million from the prior-year quarter. |
|
· |
Other income for the first quarter of 2014 included a loss recognized on an equity method investment of $1.3 million, which reduced total noninterest income in that period. |
|
· |
Noninterest income as a percentage of operating income was 25.5% for the second quarter of 2014. |
|
Quarter ended (unaudited) |
2Q14 change vs. |
|||||||||||||||
|
(in thousands) |
2Q14 |
1Q14 |
2Q13 |
1Q14 |
2Q13 |
|||||||||||
|
Noninterest income: |
||||||||||||||||
|
Deposit service charges |
$ |
1,394 |
$ |
1,376 |
$ |
1,352 |
$ |
18 | 1.3% |
$ |
42 | 3.1% | ||||
|
Investment advisory income |
1,442 | 1,422 | 1,295 | 20 | 1.4% | 147 | 11.4% | |||||||||
|
Insurance income |
2,894 | 2,762 | 3,210 | 132 | 4.8% | (316) |
(9.8)% |
|||||||||
|
Investment banking income |
1,494 | 187 | 576 | 1,307 | 698.9% | 918 | 159.4% | |||||||||
|
Other income |
1,813 | (66) | 1,992 | 1,879 |
NM |
(179) |
(9.0)% |
|||||||||
|
Total noninterest income |
$ |
9,037 |
$ |
5,681 |
$ |
8,425 |
$ |
3,356 | 59.1% |
$ |
612 | 7.3% | ||||
NM-Not meaningful
4 | Page
Operating Expenses
|
· |
The increase in compensation-related expense from the prior-year quarter is attributed to the recruitment of new personnel, including those related to the expansion into two new markets in Colorado (Fort Collins and Colorado Springs), and the launch of CoBiz Private Bank. |
|
o |
Total full-time equivalent employees at June 30, 2014, were 525, as compared to 502 at June 30, 2013. |
|
· |
The Company consistently reported gains on its OREO and repossessed asset portfolio in the current quarter, as well as in the linked- and prior-year quarters. |
|
· |
During the second quarter of 2014, the Company recognized a net gain of $1.2 million on the sales and redemption of investment securities. |
|
Quarter ended (unaudited) |
2Q14 change vs. |
|||||||||||||||
|
(in thousands) |
2Q14 |
1Q14 |
2Q13 |
1Q14 |
2Q13 |
|||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits |
$ |
15,943 |
$ |
15,836 |
$ |
14,720 |
$ |
107 | 0.7% |
$ |
1,223 | 8.3% | ||||
|
Stock-based compensation expense |
711 | 1,014 | 746 | (303) |
(29.9)% |
(35) |
(4.7)% |
|||||||||
|
Occupancy expenses, premises and equipment |
3,492 | 3,204 | 3,155 | 288 | 9.0% | 337 | 10.7% | |||||||||
|
Amortization of intangibles |
149 | 151 | 159 | (2) |
(1.3)% |
(10) |
(6.3)% |
|||||||||
|
Other operating expenses |
4,583 | 4,126 | 3,853 | 457 | 11.1% | 730 | 18.9% | |||||||||
|
Net gain on OREO, repossessed assets and other |
(437) | (223) | (561) | (214) |
(96.0)% |
124 | 22.1% | |||||||||
|
(Gain) loss on investment securities |
(1,209) | 39 | (478) | (1,248) |
NM |
(731) |
(152.9)% |
|||||||||
|
Total noninterest expense |
$ |
23,232 |
$ |
24,147 |
$ |
21,594 |
$ |
(915) |
(3.8)% |
$ |
1,638 | 7.6% | ||||
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, July 18, 2014, at 9:00 am MST with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=99888 or by telephone at 877.493.9121, (conference ID # 66161945). 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
5 | Page
About CoBiz Financial
CoBiz Financial (NASDAQ:COBZ) is a $3.0 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides commercial banking services through Colorado Business Bank and Arizona Business Bank; wealth planning and investment management through CoBiz Wealth Management; property and casualty insurance brokerage and employee benefits through CoBiz Insurance; and investment banking services through Green Manning & Bunch.
Forward-Looking Information
This release contains forward-looking statements that describe CoBiz's future plans, strategies and expectations. Forward-looking statements include statements about future performance and results of operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "would”, "could", “should” or "may." Forward-looking statements speak only as of the date they are made. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Such risks and uncertainties include, among other things:
|
· |
Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Form 10-K. |
|
· |
Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly. |
|
· |
Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth. |
|
· |
Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and related expenses. |
|
· |
Our ability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects. |
|
· |
Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses. |
|
· |
Our net interest margin may be negatively impacted if we are unable to profitably deploy excess cash into higher yielding loans or investments. |
|
· |
The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment. |
|
· |
Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities. |
|
· |
Changes in legislative or regulatory requirements applicable to us and our subsidiaries and implementation of current legislative or regulatory requirements could increase costs, limit certain operations and adversely affect results of operations. |
|
· |
Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers' businesses. |
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
6 | Page
|
CoBiz Financial Inc. |
|||||||||||
|
June 30, 2014 |
|||||||||||
|
(unaudited) |
|||||||||||
|
Three months ended June 30, |
Six months ended June 30, |
||||||||||
|
(in thousands, except per share amounts) |
2014 |
2013 |
2014 |
2013 |
|||||||
|
INCOME STATEMENT DATA |
|||||||||||
|
Interest income |
$ |
28,510 |
$ |
26,160 |
$ |
55,501 |
$ |
52,212 | |||
|
Interest expense |
2,157 | 2,795 | 4,243 | 5,662 | |||||||
|
NET INTEREST INCOME BEFORE PROVISION |
26,353 | 23,365 | 51,258 | 46,550 | |||||||
|
Provision for loan losses |
(941) | (1,065) | (2,829) | (2,655) | |||||||
|
NET INTEREST INCOME AFTER PROVISION |
27,294 | 24,430 | 54,087 | 49,205 | |||||||
|
Noninterest income |
9,037 | 8,425 | 14,718 | 14,901 | |||||||
|
Noninterest expense |
23,232 | 21,594 | 47,379 | 44,175 | |||||||
|
INCOME BEFORE INCOME TAXES |
13,099 | 11,261 | 21,426 | 19,931 | |||||||
|
Provision for income taxes |
4,482 | 3,999 | 7,292 | 6,793 | |||||||
|
NET INCOME FROM CONTINUING OPERATIONS |
8,617 | 7,262 | 14,134 | 13,138 | |||||||
|
Income from discontinued operations, net of tax |
- |
- |
- |
173 | |||||||
|
NET INCOME |
$ |
8,617 |
$ |
7,262 |
$ |
14,134 |
$ |
13,311 | |||
|
Preferred stock dividends |
(143) | (143) | (286) | (657) | |||||||
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ |
8,474 |
$ |
7,119 |
$ |
13,848 |
$ |
12,654 | |||
|
EARNINGS PER COMMON SHARE |
|||||||||||
|
BASIC |
$ |
0.21 |
$ |
0.18 |
$ |
0.34 |
$ |
0.32 | |||
|
DILUTED |
$ |
0.21 |
$ |
0.18 |
$ |
0.34 |
$ |
0.32 | |||
|
EQUITY MEASURES |
|||||||||||
|
Common shares outstanding at period end (in thousands) |
40,642 | 40,282 | |||||||||
|
Book value per common share |
$ |
5.87 |
$ |
5.20 | |||||||
|
Tangible book value per common share * |
$ |
5.81 |
$ |
5.12 | |||||||
|
Tangible common equity to tangible assets * |
7.82% | 7.54% | |||||||||
|
Tangible equity to tangible assets * |
9.71% | 9.63% | |||||||||
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP |
|||||||||||
|
PERIOD END BALANCES |
|||||||||||
|
Total assets |
$ |
3,024,832 |
$ |
2,738,749 | |||||||
|
Investments |
526,797 | 576,045 | |||||||||
|
Loans |
2,294,644 | 2,017,844 | |||||||||
|
Intangible assets |
2,498 | 3,112 | |||||||||
|
Deposits |
2,299,153 | 2,035,971 | |||||||||
|
Subordinated debentures |
72,166 | 93,150 | |||||||||
|
Common shareholders' equity |
238,760 | 209,341 | |||||||||
|
Total shareholders' equity |
296,098 | 266,679 | |||||||||
|
Interest-earning assets |
2,885,380 | 2,608,065 | |||||||||
|
Interest-bearing liabilities |
1,745,284 | 1,552,129 | |||||||||
|
BALANCE SHEET AVERAGES |
|||||||||||
|
Average assets |
$ |
2,855,919 |
$ |
2,639,671 | |||||||
|
Average investments |
543,815 | 560,949 | |||||||||
|
Average loans |
2,173,000 | 1,941,758 | |||||||||
|
Average deposits |
2,272,169 | 2,045,158 | |||||||||
|
Average subordinated debentures |
72,166 | 93,150 | |||||||||
|
Average shareholders' equity |
288,017 | 263,296 | |||||||||
|
Average interest-earning assets |
2,735,285 | 2,474,898 | |||||||||
|
Average interest-bearing liabilities |
1,570,112 | 1,515,022 | |||||||||
7 | Page
|
|
||||||||||||
|
CoBiz Financial Inc. |
||||||||||||
|
June 30, 2014 |
||||||||||||
|
(unaudited) |
||||||||||||
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||
|
(in thousands) |
2014 |
2013 |
2014 |
2013 |
||||||||
|
PROFITABILITY MEASURES |
||||||||||||
|
Net interest margin |
3.92% | 3.78% | 3.91% | 3.82% | ||||||||
|
Efficiency ratio - tax equivalent |
68.49% | 69.77% | 72.62% | 71.96% | ||||||||
|
Return on average assets |
1.19% | 1.09% | 1.00% | 1.02% | ||||||||
|
Return on average shareholders' equity |
11.86% | 10.93% | 9.90% | 10.19% | ||||||||
|
Noninterest income as a percentage of operating revenues |
25.54% | 26.50% | 22.31% | 24.25% | ||||||||
|
CREDIT QUALITY |
||||||||||||
|
Nonperforming loans |
||||||||||||
|
Nonaccrual loans |
$ |
7,861 |
$ |
25,634 | ||||||||
|
Loans 90 days or more past due and accruing interest |
134 |
- |
||||||||||
|
Total nonperforming loans |
7,995 | 25,634 | ||||||||||
|
OREO & repossessed assets |
4,148 | 7,185 | ||||||||||
|
Total nonperforming assets |
$ |
12,143 |
$ |
32,819 | ||||||||
|
Performing renegotiated loans |
$ |
24,033 |
$ |
29,623 | ||||||||
|
Classified loans |
$ |
41,357 |
$ |
64,300 | ||||||||
|
Charge-offs |
$ |
(1,547) |
$ |
(2,783) | ||||||||
|
Recoveries |
1,248 | 1,804 | ||||||||||
|
Net charge-offs |
$ |
(299) |
$ |
(979) | ||||||||
|
Nonperforming assets to total assets |
0.40% | 1.20% | ||||||||||
|
Nonperforming loans to total loans |
0.35% | 1.27% | ||||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.53% | 1.62% | ||||||||||
|
Allowance for loan and credit losses to total loans |
1.48% | 2.14% | ||||||||||
|
Allowance for loan and credit losses to nonperforming loans |
424.29% | 168.65% | ||||||||||
|
Total |
NPAs as a |
||||||||||||
|
NONPERFORMING ASSETS BY MARKET |
Colorado |
Arizona |
Total |
in Category |
% |
||||||||
|
Commercial |
$ |
730 |
$ |
342 |
$ |
1,072 |
$ |
917,494 | 0.12% | ||||
|
Real estate - mortgage |
156 | 3,925 | 4,081 | 978,399 | 0.42% | ||||||||
|
Construction & land |
2,752 |
- |
2,752 | 160,452 | 1.72% | ||||||||
|
Consumer |
90 |
- |
90 | 194,339 | 0.05% | ||||||||
|
Other loans |
- |
- |
- |
43,960 | 0.00% | ||||||||
|
OREO & repossessed assets |
3,583 | 565 | 4,148 | 4,148 |
- |
||||||||
|
NPAs |
$ |
7,311 |
$ |
4,832 |
$ |
12,143 |
$ |
2,298,792 | 0.53% | ||||
|
Total loans |
$ |
1,683,720 |
$ |
610,924 |
$ |
2,294,644 | |||||||
|
Total loans and OREO |
1,687,303 | 611,489 | 2,298,792 | ||||||||||
|
Nonperforming loans to loans |
0.22% | 0.70% | 0.35% | ||||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.43% | 0.79% | 0.53% | ||||||||||
8 | Page
|
CoBiz Financial Inc. |
||||||||||||||
|
June 30, 2014 |
||||||||||||||
|
(unaudited) |
||||||||||||||
|
Three months ended |
||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||
|
(in thousands, except per share amounts) |
2014 |
2014 |
2013 |
2013 |
2013 |
|||||||||
|
Interest income |
$ |
28,510 |
$ |
26,991 |
$ |
26,954 |
$ |
26,961 |
$ |
26,160 | ||||
|
Interest expense |
2,157 | 2,086 | 2,178 | 2,586 | 2,795 | |||||||||
|
Net interest income before provision |
26,353 | 24,905 | 24,776 | 24,375 | 23,365 | |||||||||
|
Provision for loan losses |
(941) | (1,888) | (4,595) | (1,554) | (1,065) | |||||||||
|
Net interest income after provision |
27,294 | 26,793 | 29,371 | 25,929 | 24,430 | |||||||||
|
Noninterest income: |
||||||||||||||
|
Deposit service charges |
$ |
1,394 |
$ |
1,376 |
$ |
1,276 |
$ |
1,359 |
$ |
1,352 | ||||
|
Investment advisory income |
1,442 | 1,422 | 1,364 | 1,306 | 1,295 | |||||||||
|
Insurance income |
2,894 | 2,762 | 2,617 | 2,862 | 3,210 | |||||||||
|
Investment banking income |
1,494 | 187 | 971 | 689 | 576 | |||||||||
|
Other income |
1,813 | (66) | 2,024 | 1,543 | 1,992 | |||||||||
|
Total noninterest income |
9,037 | 5,681 | 8,252 | 7,759 | 8,425 | |||||||||
|
Noninterest expense: |
||||||||||||||
|
Salaries and employee benefits |
$ |
15,943 |
$ |
15,836 |
$ |
16,224 |
$ |
16,373 |
$ |
14,720 | ||||
|
Stock-based compensation expense |
711 | 1,014 | 551 | 694 | 746 | |||||||||
|
Occupancy expenses, premises and equipment |
3,492 | 3,204 | 3,514 | 3,289 | 3,155 | |||||||||
|
Amortization of intangibles |
149 | 151 | 151 | 152 | 159 | |||||||||
|
Other operating expenses |
4,583 | 4,126 | 4,077 | 3,625 | 3,853 | |||||||||
|
Net (gain) loss on securities, other assets and OREO |
(1,646) | (184) | 2,122 | (319) | (1,039) | |||||||||
|
Total noninterest expense |
23,232 | 24,147 | 26,639 | 23,814 | 21,594 | |||||||||
|
Net income before income taxes |
13,099 | 8,327 | 10,984 | 9,874 | 11,261 | |||||||||
|
Provision for income taxes |
4,482 | 2,810 | 3,709 | 2,849 | 3,999 | |||||||||
|
Net income |
8,617 | 5,517 | 7,275 | 7,025 | 7,262 | |||||||||
|
Preferred stock dividends |
(143) | (143) | (143) | (144) | (143) | |||||||||
|
Net income available to common shareholders |
$ |
8,474 |
$ |
5,374 |
$ |
7,132 |
$ |
6,881 |
$ |
7,119 | ||||
|
Earnings per common share |
||||||||||||||
|
Basic |
$ |
0.21 |
$ |
0.13 |
$ |
0.18 |
$ |
0.17 |
$ |
0.18 | ||||
|
Diluted |
$ |
0.21 |
$ |
0.13 |
$ |
0.18 |
$ |
0.17 |
$ |
0.18 | ||||
|
PROFITABILITY MEASURES |
||||||||||||||
|
Net interest margin |
3.92% | 3.90% | 3.79% | 3.80% | 3.78% | |||||||||
|
Efficiency ratio - tax equivalent |
68.49% | 77.39% | 72.57% | 73.41% | 69.77% | |||||||||
|
Return on average assets |
1.19% | 0.80% | 1.03% | 1.02% | 1.09% | |||||||||
|
Return on average shareholders' equity |
11.86% | 7.86% | 10.42% | 10.34% | 10.93% | |||||||||
|
Noninterest income as a percentage of operating revenues |
25.54% | 18.57% | 24.98% | 24.15% | 26.50% | |||||||||
|
EQUITY MEASURES |
||||||||||||||
|
Common shares outstanding at period end (in thousands) |
40,642 | 40,622 | 40,368 | 40,300 | 40,282 | |||||||||
|
Diluted weighted average common shares outstanding (in thousands) |
40,134 | 39,979 | 39,831 | 39,738 | 39,580 | |||||||||
|
Book value per common share |
$ |
5.87 |
$ |
5.67 |
$ |
5.54 |
$ |
5.35 |
$ |
5.20 | ||||
|
Tangible book value per common share * |
$ |
5.81 |
$ |
5.60 |
$ |
5.47 |
$ |
5.28 |
$ |
5.12 | ||||
|
Tangible common equity to tangible assets * |
7.82% | 7.98% | 7.90% | 7.58% | 7.54% | |||||||||
|
Tangible equity to tangible assets * |
9.71% | 10.00% | 9.95% | 9.62% | 9.63% | |||||||||
|
Tier 1 capital ratio |
** |
14.43% | 14.50% | 14.50% | 14.52% | |||||||||
|
Total risk based capital ratio |
** |
15.68% | 15.75% | 15.76% | 16.70% | |||||||||
|
* See accompanying Reconciliation of Non-GAAP Measures to GAAP |
||||||||||||||
|
** Ratios unavailable at the time of release. |
||||||||||||||
9 | Page
|
|
|||||||||||||||
|
CoBiz Financial Inc. |
|||||||||||||||
|
June 30, 2014 |
|||||||||||||||
|
(unaudited) |
|||||||||||||||
|
At |
|||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||
|
(in thousands) |
2014 |
2014 |
2013 |
2013 |
2013 |
||||||||||
|
PERIOD END BALANCES |
|||||||||||||||
|
Total assets |
$ |
3,024,832 |
$ |
2,852,782 |
$ |
2,800,691 |
$ |
2,807,955 |
$ |
2,738,749 | |||||
|
Investments |
526,797 | 547,211 | 556,796 | 582,889 | 576,045 | ||||||||||
|
Loans |
2,294,644 | 2,152,294 | 2,084,359 | 2,048,866 | 2,017,844 | ||||||||||
|
Intangible assets |
2,498 | 2,647 | 2,798 | 2,960 | 3,112 | ||||||||||
|
Deposits |
2,299,153 | 2,322,736 | 2,279,037 | 2,269,193 | 2,035,971 | ||||||||||
|
Subordinated debentures |
72,166 | 72,166 | 72,166 | 72,166 | 93,150 | ||||||||||
|
Common shareholders' equity |
238,760 | 230,182 | 223,747 | 215,599 | 209,341 | ||||||||||
|
Total shareholders' equity |
296,098 | 287,520 | 281,085 | 272,937 | 266,679 | ||||||||||
|
Interest-earning assets |
2,885,380 | 2,713,376 | 2,663,823 | 2,667,144 | 2,608,065 | ||||||||||
|
Interest-bearing liabilities |
1,745,284 | 1,607,347 | 1,527,992 | 1,515,360 | 1,552,129 | ||||||||||
|
LOANS |
|||||||||||||||
|
Commercial |
$ |
917,494 |
$ |
860,060 |
$ |
824,453 |
$ |
815,424 |
$ |
813,186 | |||||
|
Real estate - mortgage |
978,399 | 926,047 | 900,864 | 890,492 | 884,579 | ||||||||||
|
Construction & land |
160,452 | 136,018 | 127,952 | 105,146 | 95,127 | ||||||||||
|
Consumer |
194,339 | 183,156 | 181,056 | 180,243 | 168,606 | ||||||||||
|
Other |
43,960 | 47,013 | 50,034 | 57,561 | 56,346 | ||||||||||
|
Gross loans |
2,294,644 | 2,152,294 | 2,084,359 | 2,048,866 | 2,017,844 | ||||||||||
|
Less allowance for loan losses |
(33,922) | (35,603) | (37,050) | (41,810) | (43,232) | ||||||||||
|
Total net loans |
$ |
2,260,722 |
$ |
2,116,691 |
$ |
2,047,309 |
$ |
2,007,056 |
$ |
1,974,612 | |||||
|
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|||||||||||||||
|
Money market |
$ |
599,234 |
$ |
590,596 |
$ |
572,175 |
$ |
605,073 |
$ |
561,079 | |||||
|
Interest-bearing demand and NOW |
491,347 | 542,304 | 487,037 | 402,572 | 337,294 | ||||||||||
|
Savings |
15,134 | 13,979 | 12,803 | 11,272 | 11,612 | ||||||||||
|
Certificates of deposits under $100 |
25,704 | 26,965 | 27,726 | 28,098 | 29,359 | ||||||||||
|
Certificates of deposits $100 and over |
126,487 | 130,226 | 134,418 | 133,243 | 136,077 | ||||||||||
|
Brokered CDs |
19,996 |
- |
- |
- |
- |
||||||||||
|
Reciprocal CDARS |
60,651 | 81,589 | 83,173 | 98,748 | 95,157 | ||||||||||
|
Total interest-bearing deposits |
1,338,553 | 1,385,659 | 1,317,332 | 1,279,006 | 1,170,578 | ||||||||||
|
Noninterest-bearing demand deposits |
960,600 | 937,077 | 961,705 | 990,187 | 865,393 | ||||||||||
|
Customer repurchase agreements |
74,565 | 89,521 | 138,494 | 164,188 | 133,402 | ||||||||||
|
Total deposits and customer repurchase agreements |
$ |
2,373,718 |
$ |
2,412,257 |
$ |
2,417,531 |
$ |
2,433,381 |
$ |
2,169,373 | |||||
|
BALANCE SHEET AVERAGES |
|||||||||||||||
|
Average assets |
$ |
2,913,504 |
$ |
2,797,695 |
$ |
2,792,837 |
$ |
2,734,624 |
$ |
2,662,914 | |||||
|
Average investments |
536,450 | 551,263 | 573,544 | 573,375 | 558,464 | ||||||||||
|
Average loans |
2,236,728 | 2,108,563 | 2,048,592 | 2,031,282 | 1,968,674 | ||||||||||
|
Average deposits |
2,267,573 | 2,276,814 | 2,253,875 | 2,129,108 | 2,030,209 | ||||||||||
|
Average subordinated debentures |
72,166 | 72,166 | 72,166 | 82,658 | 93,150 | ||||||||||
|
Average shareholders' equity |
291,469 | 284,527 | 277,118 | 269,494 | 266,526 | ||||||||||
|
Average interest-earning assets |
2,792,091 | 2,677,847 | 2,673,332 | 2,621,135 | 2,547,056 | ||||||||||
|
Average interest-bearing liabilities |
1,654,752 | 1,484,532 | 1,525,400 | 1,536,699 | 1,535,232 | ||||||||||
|
ALLOWANCE FOR LOAN AND CREDIT LOSSES |
|||||||||||||||
|
Beginning allowance for loan losses |
$ |
35,603 |
$ |
37,050 |
$ |
41,810 |
$ |
43,232 |
$ |
44,874 | |||||
|
Provision for loan losses |
(941) | (1,888) | (4,595) | (1,554) | (1,065) | ||||||||||
|
Net recovery (charge-off) |
(740) | 441 | (165) | 132 | (577) | ||||||||||
|
Ending allowance for loan losses |
$ |
33,922 |
$ |
35,603 |
$ |
37,050 |
$ |
41,810 |
$ |
43,232 | |||||
10 | Page
|
CREDIT QUALITY |
||||||||||||||
|
Nonperforming loans |
||||||||||||||
|
Nonaccrual loans |
$ |
7,861 |
$ |
10,618 |
$ |
13,921 |
$ |
18,511 |
$ |
25,634 | ||||
|
Loans 90 days or more past due and accruing interest |
134 |
- |
19 |
- |
- |
|||||||||
|
Total nonperforming loans |
7,995 | 10,618 | 13,940 | 18,511 | 25,634 | |||||||||
|
OREO and repossessed assets |
4,148 | 4,911 | 5,097 | 6,960 | 7,185 | |||||||||
|
Total nonperforming assets |
$ |
12,143 |
$ |
15,529 |
$ |
19,037 |
$ |
25,471 |
$ |
32,819 | ||||
|
Performing renegotiated loans |
$ |
24,033 |
$ |
30,290 |
$ |
29,683 |
$ |
28,814 |
$ |
29,623 | ||||
|
Classified loans |
$ |
41,357 |
$ |
38,278 |
$ |
46,476 |
$ |
48,735 |
$ |
64,300 | ||||
|
ASSET QUALITY MEASURES |
||||||||||||||
|
Nonperforming assets to total assets |
0.40% | 0.54% | 0.68% | 0.91% | 1.20% | |||||||||
|
Nonperforming loans to total loans |
0.35% | 0.49% | 0.67% | 0.90% | 1.27% | |||||||||
|
Nonperforming loans and OREO to total loans and OREO |
0.53% | 0.72% | 0.91% | 1.24% | 1.62% | |||||||||
|
Allowance for loan and credit losses to total loans |
1.48% | 1.65% | 1.78% | 2.04% | 2.14% | |||||||||
|
Allowance for loan and credit losses to nonperforming loans |
424.29% | 335.31% | 265.78% | 225.87% | 168.65% |
11 | Page
|
CoBiz Financial Inc. |
||||||||||||||||||||
|
June 30, 2014 |
||||||||||||||||||||
|
(unaudited) |
||||||||||||||||||||
|
For the three months ended, |
||||||||||||||||||||
|
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
||||||||||||||||||
|
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 |
$ |
18,913 |
$ |
24 | 0.50% |
$ |
18,021 |
$ |
24 | 0.53% |
$ |
19,918 |
$ |
23 | 0.46% | |||||
|
Investment securities |
536,450 | 4,123 | 3.07% | 551,263 | 4,258 | 3.09% | 558,464 | 4,175 | 2.99% | |||||||||||
|
Loans |
2,236,728 | 25,296 | 4.47% | 2,108,563 | 23,562 | 4.47% | 1,968,674 | 22,611 | 4.54% | |||||||||||
|
Total interest-earning assets |
$ |
2,792,091 |
$ |
29,443 | 4.18% |
$ |
2,677,847 |
$ |
27,844 | 4.16% |
$ |
2,547,056 |
$ |
26,809 | 4.17% | |||||
|
Noninterest-earning assets |
121,413 | 119,848 | 115,858 | |||||||||||||||||
|
Total assets |
$ |
2,913,504 |
$ |
2,797,695 |
$ |
2,662,914 | ||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Deposits |
||||||||||||||||||||
|
Money market |
$ |
586,439 |
$ |
465 | 0.32% |
$ |
583,171 |
$ |
464 | 0.32% |
$ |
570,148 |
$ |
594 | 0.42% | |||||
|
Interest-bearing demand |
493,768 | 236 | 0.19% | 429,939 | 245 | 0.23% | 356,436 | 210 | 0.24% | |||||||||||
|
Savings |
14,389 | 2 | 0.06% | 12,595 | 2 | 0.06% | 11,498 | 2 | 0.07% | |||||||||||
|
Certificates of deposit |
||||||||||||||||||||
|
Reciprocal |
66,721 | 55 | 0.33% | 83,073 | 68 | 0.33% | 88,897 | 92 | 0.42% | |||||||||||
|
Under $100 |
27,693 | 29 | 0.42% | 27,589 | 30 | 0.44% | 29,585 | 38 | 0.52% | |||||||||||
|
$100 and over |
131,292 | 171 | 0.52% | 136,689 | 178 | 0.53% | 139,585 | 207 | 0.59% | |||||||||||
|
Total interest-bearing deposits |
$ |
1,320,302 |
$ |
958 | 0.29% |
$ |
1,273,056 |
$ |
987 | 0.31% |
$ |
1,196,149 |
$ |
1,143 | 0.38% | |||||
|
Other borrowings |
||||||||||||||||||||
|
Securities sold under agreements to repurchase |
79,615 | 44 | 0.22% | 104,534 | 63 | 0.24% | 149,203 | 82 | 0.22% | |||||||||||
|
Other short-term borrowings |
182,669 | 127 | 0.28% | 34,776 | 20 | 0.23% | 96,730 | 69 | 0.28% | |||||||||||
|
Long term-debt |
72,166 | 1,028 | 5.64% | 72,166 | 1,016 | 5.63% | 93,150 | 1,501 | 6.37% | |||||||||||
|
Total interest-bearing liabilities |
$ |
1,654,752 |
$ |
2,157 | 0.52% |
$ |
1,484,532 |
$ |
2,086 | 0.57% |
$ |
1,535,232 |
$ |
2,795 | 0.72% | |||||
|
Noninterest-bearing demand accounts |
947,271 | 1,003,758 | 834,060 | |||||||||||||||||
|
Total deposits and interest-bearing liabilities |
2,602,023 | 2,488,290 | 2,369,292 | |||||||||||||||||
|
Other noninterest-bearing liabilities |
20,012 | 24,878 | 27,096 | |||||||||||||||||
|
Total liabilities |
2,622,035 | 2,513,168 | 2,396,388 | |||||||||||||||||
|
Total equity |
291,469 | 284,527 | 266,526 | |||||||||||||||||
|
Total liabilities and equity |
$ |
2,913,504 |
$ |
2,797,695 |
$ |
2,662,914 | ||||||||||||||
|
Net interest income - taxable equivalent |
$ |
27,286 |
$ |
25,758 |
$ |
24,014 | ||||||||||||||
|
Net interest spread |
3.66% | 3.59% | 3.45% | |||||||||||||||||
|
Net interest margin |
3.92% | 3.90% | 3.78% | |||||||||||||||||
|
Ratio of average interest-earning assets to |
||||||||||||||||||||
|
average interest-bearing liabilities |
168.73% | 180.38% | 165.91% | |||||||||||||||||
12 | Page
|
CoBiz Financial Inc. |
|||||||||||||
|
June 30, 2014 |
|||||||||||||
|
(unaudited) |
|||||||||||||
|
For the six months ended June 30, |
|||||||||||||
|
2014 |
2013 |
||||||||||||
|
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 |
$ |
18,470 |
$ |
48 | 0.52% |
$ |
18,337 |
$ |
50 | 0.54% | |||
|
Investment securities |
543,815 | 8,381 | 3.08% | 560,949 | 8,472 | 3.02% | |||||||
|
Loans |
2,173,000 | 48,858 | 4.47% | 1,941,758 | 44,951 | 4.60% | |||||||
|
Total interest-earning assets |
$ |
2,735,285 |
$ |
57,287 | 4.17% |
$ |
2,521,044 |
$ |
53,473 | 4.22% | |||
|
Noninterest-earning assets |
120,634 | 118,627 | |||||||||||
|
Total assets |
$ |
2,855,919 |
$ |
2,639,671 | |||||||||
|
Liabilities and Shareholders' Equity |
|||||||||||||
|
Deposits |
|||||||||||||
|
Money market |
$ |
584,814 |
$ |
929 | 0.32% |
$ |
587,926 |
$ |
1,273 | 0.44% | |||
|
Interest-bearing demand |
462,030 | 481 | 0.21% | 357,820 | 444 | 0.25% | |||||||
|
Savings |
13,497 | 4 | 0.06% | 14,973 | 5 | 0.07% | |||||||
|
Certificates of deposit |
|||||||||||||
|
Reciprocal |
74,852 | 123 | 0.33% | 85,446 | 186 | 0.44% | |||||||
|
Under $100 |
27,641 | 59 | 0.43% | 29,674 | 78 | 0.53% | |||||||
|
$100 and over |
133,976 | 349 | 0.53% | 142,046 | 446 | 0.63% | |||||||
|
Total interest-bearing deposits |
$ |
1,296,810 |
$ |
1,945 | 0.30% |
$ |
1,217,885 |
$ |
2,432 | 0.40% | |||
|
Other borrowings |
|||||||||||||
|
Securities sold under agreements to repurchase |
92,005 | 107 | 0.23% | 146,982 | 166 | 0.22% | |||||||
|
Other short-term borrowings |
109,131 | 147 | 0.27% | 57,005 | 79 | 0.28% | |||||||
|
Long term-debt |
72,166 | 2,044 | 5.63% | 93,150 | 2,985 | 6.37% | |||||||
|
Total interest-bearing liabilities |
$ |
1,570,112 |
$ |
4,243 | 0.54% |
$ |
1,515,022 |
$ |
5,662 | 0.75% | |||
|
Noninterest-bearing demand accounts |
975,359 | 827,273 | |||||||||||
|
Total deposits and interest-bearing liabilities |
2,545,471 | 2,342,295 | |||||||||||
|
Other noninterest-bearing liabilities |
22,431 | 34,080 | |||||||||||
|
Total liabilities |
2,567,902 | 2,376,375 | |||||||||||
|
Total equity |
288,017 | 263,296 | |||||||||||
|
Total liabilities and equity |
$ |
2,855,919 |
$ |
2,639,671 | |||||||||
|
Net interest income - taxable equivalent |
$ |
53,044 |
$ |
47,811 | |||||||||
|
Net interest spread |
3.63% | 3.47% | |||||||||||
|
Net interest margin |
3.91% | 3.82% | |||||||||||
|
Ratio of average interest-earning assets to |
|||||||||||||
|
average interest-bearing liabilities |
174.21% | 166.40% | |||||||||||
13 | Page
|
CoBiz Financial Inc. |
||||||||||||||||
|
June 30, 2014 |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Reconciliation of Non-GAAP Measures to GAAP |
||||||||||||||||
|
(in thousands, except per share amounts) |
||||||||||||||||
|
The Company believes these non-GAAP measures are useful to obtain an understanding of the operating results of the Company’s core business and reflects the basis on which management internally reviews financial performance and capital adequacy. These non-GAAP measures are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to non-GAAP performance measures that may be presented by other companies. |
||||||||||||||||
|
The following tables include non-GAAP financial measures related to tangible equity, tangible common equity and tangible assets . The table below has been adjusted to exclude intangible assets and preferred stock. |
||||||||||||||||
|
At |
||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||
|
2014 |
2014 |
2013 |
2013 |
2013 |
||||||||||||
|
Shareholders' equity as reported - GAAP |
$ |
296,098 |
$ |
287,520 |
$ |
281,085 |
$ |
272,937 |
$ |
266,679 | ||||||
|
Intangible assets |
(2,498) | (2,647) | (2,798) | (2,960) | (3,112) | |||||||||||
|
A |
Tangible equity - non-GAAP |
293,600 | 284,873 | 278,287 | 269,977 | 263,567 | ||||||||||
|
Preferred stock |
(57,338) | (57,338) | (57,338) | (57,338) | (57,338) | |||||||||||
|
B |
Tangible common equity - non-GAAP |
$ |
236,262 |
$ |
227,535 |
$ |
220,949 |
$ |
212,639 |
$ |
206,229 | |||||
|
Total assets as reported - GAAP |
$ |
3,024,832 |
$ |
2,852,782 |
$ |
2,800,691 |
$ |
2,807,955 |
$ |
2,738,749 | ||||||
|
Intangible assets |
(2,498) | (2,647) | (2,798) | (2,960) | (3,112) | |||||||||||
|
C |
Total tangible assets - non-GAAP |
$ |
3,022,334 |
$ |
2,850,135 |
$ |
2,797,893 |
$ |
2,804,995 |
$ |
2,735,637 | |||||
|
D |
Common shares outstanding |
40,642 | 40,622 | 40,368 | 40,300 | 40,282 | ||||||||||
|
B / C |
Tangible common equity to tangible assets - non-GAAP |
7.82% | 7.98% | 7.90% | 7.58% | 7.54% | ||||||||||
|
A / C |
Tangible equity to tangible assets - non-GAAP |
9.71% | 10.00% | 9.95% | 9.62% | 9.63% | ||||||||||
|
B / D |
Tangible book value per common share - non-GAAP |
$ |
5.81 |
$ |
5.60 |
$ |
5.47 |
$ |
5.28 |
$ |
5.12 | |||||
14 | Page