EX-99.1 2 a12-16643_1ex99d1.htm EX-99.1

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