CoBiz Financial Announces Third Quarter 2013 Results
Reports 22% increase in net income available to common shareholders
Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $2.8 billion in assets, announced net income available to common shareholders of $6.9 million for the third quarter of 2013, or $0.17 per diluted common share. Net income available to common shareholders for the third quarter of 2012 was $5.6 million, or $0.14 per diluted common share.
Return on average assets for the third quarter of 2013 was 1.02% versus 1.00% for the third quarter of 2012, and return on average shareholders’ equity increased to 10.34% for the third quarter of 2013 from 10.23% for the prior-year quarter.
Financial highlights – Third quarter 2013
· | Net interest income on a tax-equivalent basis was $25.1 million for the third quarter of 2013, an increase of $1.1 million from the second quarter of 2013 (linked-quarter). |
· | Loans increased 31.0 million, or 6.1% annualized, from the prior linked-quarter and $237.5 million, or 13.1%, from the prior-year quarter. |
· | Strong deposit generation of $233.2 million from the prior linked-quarter. Deposits increased $220.4 million, or 10.8%, from the prior-year quarter. |
· | Credit quality improved, as the ratio of nonperforming assets to total assets fell to 0.91% at September 30, 2013, the lowest quarterly level since mid-2008. |
· | In August 2013, the Company redeemed in full $21.0 million of 9% Subordinated Unsecured Promissory Notes (Notes). |
Financial Summary
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| Quarter ended | | | 3Q13 change vs. |
(in thousands, except per share amounts) | 3Q13 | | 2Q13 | | 3Q12 | | 2Q13 | | 3Q12 |
Net interest income before provision | $ | 24,375 | | $ | 23,365 | | $ | 23,247 | | $ | 1,010 | 4.3% | | $ | 1,128 | 4.9% |
Provision for loan losses | | (1,554) | | | (1,065) | | | (2,506) | | | (489) | 45.9% | | | 952 | (38.0)% |
Net interest income after provision | | 25,929 | | | 24,430 | | | 25,753 | | | 1,499 | 6.1% | | | 176 | 0.7% |
Total noninterest income | | 7,759 | | | 8,425 | | | 6,400 | | | (666) | (7.9)% | | | 1,359 | 21.2% |
Total noninterest expense | | 23,814 | | | 21,594 | | | 21,958 | | | 2,220 | 10.3% | | | 1,856 | 8.5% |
Net income before income taxes | | 9,874 | | | 11,261 | | | 10,195 | | | (1,387) | (12.3)% | | | (321) | (3.1)% |
Provision for income taxes | | 2,849 | | | 3,999 | | | 3,721 | | | (1,150) | (28.8)% | | | (872) | (23.4)% |
Income from continuing operations | | 7,025 | | | 7,262 | | | 6,474 | | | (237) | (3.3)% | | | 551 | 8.5% |
Discontinued operations, net of tax | | - | | | - | | | (125) | | | - | 0.0% | | | 125 | (100.0)% |
Net income | | 7,025 | | | 7,262 | | | 6,349 | | | (237) | (3.3)% | | | 676 | 10.6% |
Preferred stock dividends | | (144) | | | (143) | | | (717) | | | (1) | 0.7% | | | 573 | (79.9)% |
Net income available to common shareholders | $ | 6,881 | | $ | 7,119 | | $ | 5,632 | | $ | (238) | (3.3)% | | $ | 1,249 | 22.2% |
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Diluted earnings per common share | $ | 0.17 | | $ | 0.18 | | $ | 0.14 | | $ | (0.01) | (5.6)% | | $ | 0.03 | 21.4% |
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KEY RATIOS | | | | | | | | | | | | | | | | |
Net interest margin | | 3.87% | | | 3.85% | | | 4.00% | | | | | | | | |
Efficiency ratio | | 75.10% | | | 71.20% | | | 75.28% | | | | | | | | |
Return on average assets | | 1.02% | | | 1.09% | | | 1.00% | | | | | | | | |
Return on average shareholders' equity | | 10.34% | | | 10.93% | | | 10.23% | | | | | | | | |
Noninterest income as a percentage of operating revenues | | 24.15% | | | 26.50% | | | 21.59% | | | | | | | | |
“I was pleased to see the stabilization in our net interest margin this quarter, which expanded two basis points from the second quarter,” said Chairman and CEO Steve Bangert. “However, even more important is the
increase in net interest income on a tax equivalent basis, which increased to $25.1 million in the third quarter, a 4.6% increase from the second quarter of this year.
“Net loan growth was lower this period, as new loan activity was offset by a higher level of payoffs. However, our marketing efforts are reflected in the success we have had building our core deposit base.”
Loans
· | Loans at September 30, 2013 were $2.0 billion, increasing $31.0 million or 6.1% annualized from the prior linked-quarter. From the prior year, loans increased $237.5 million, or 13.1%. |
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| Quarter ended | | | 3Q13 change vs. |
(in thousands) | 3Q13 | | 2Q13 | | 3Q12 | | 2Q13 | | 3Q12 |
LOANS | | | | | | | | | | | | | | | | |
Commercial & industrial | $ | 815,424 | | $ | 813,186 | | $ | 663,880 | | $ | 2,238 | 0.3% | | $ | 151,544 | 22.8% |
Owner-occupied real estate | | 446,976 | | | 442,132 | | | 425,217 | | | 4,844 | 1.1% | | | 21,759 | 5.1% |
Investor real estate | | 443,516 | | | 442,447 | | | 425,607 | | | 1,069 | 0.2% | | | 17,909 | 4.2% |
Land acquisition & development | | 43,359 | | | 36,795 | | | 54,220 | | | 6,564 | 17.8% | | | (10,861) | (20.0)% |
Real estate - construction | | 61,787 | | | 58,332 | | | 56,180 | | | 3,455 | 5.9% | | | 5,607 | 10.0% |
Consumer | | 180,243 | | | 168,606 | | | 137,299 | | | 11,637 | 6.9% | | | 42,944 | 31.3% |
Other | | 57,561 | | | 56,346 | | | 49,004 | | | 1,215 | 2.2% | | | 8,557 | 17.5% |
Total loans | $ | 2,048,866 | | $ | 2,017,844 | | $ | 1,811,407 | | $ | 31,022 | 1.5% | | $ | 237,459 | 13.1% |
· | New loans of $136.1 million were added during the third quarter, and advances on existing lines totaled $88.7 million, an improvement over the prior-year quarter but down from a strong second quarter. |
· | During the third quarter, paydowns and maturities accelerated from recent quarters. The Company attributes part of the increase to borrowers refinancing into the long-term commercial real estate market. |
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| Quarter ended |
(in thousands) | 3Q13 | | 2Q13 | | 1Q13 | | 4Q12 | | 3Q12 |
Loans - beginning balance | $ | 2,017,844 | | $ | 1,925,806 | | $ | 1,926,432 | | $ | 1,811,407 | | $ | 1,766,688 |
New credit extended | | 136,138 | | | 149,053 | | | 78,587 | | | 205,723 | | | 134,767 |
Credit advanced | | 88,680 | | | 96,122 | | | 72,487 | | | 82,306 | | | 54,642 |
Paydowns & maturities | | (193,396) | | | (151,176) | | | (150,878) | | | (172,540) | | | (141,705) |
Gross loan charge-offs | | (400) | | | (1,961) | | | (822) | | | (464) | | | (2,985) |
Loans - ending balance | $ | 2,048,866 | | $ | 2,017,844 | | $ | 1,925,806 | | $ | 1,926,432 | | $ | 1,811,407 |
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Net change - loans outstanding | $ | 31,022 | | $ | 92,038 | | $ | (626) | | $ | 115,025 | | $ | 44,719 |
· | Total line utilization was 40.2% at September 30, 2013, as compared to 40.3% and 40.4% at June 30, 2013 and September 30, 2012, respectively. |
Deposits and Customer Repurchase Agreements (Customer Funding)
· | Customer Funding of $2.4 billion at September 30, 2013 increased $264.0 million on a linked-quarter basis. From September 30, 2012, Customer Funding increased $259.8 million. |
· | Noninterest-bearing demand (NIB) accounts increased $124.8 million on a linked-quarter basis, increasing the percentage of NIB to total deposits to 43.6% at September 30, 2013, from 40.2% at September 30, 2012. |
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| Quarter ended | | | 3Q13 change vs. |
(in thousands) | 3Q13 | | 2Q13 | | 3Q12 | | 2Q13 | | 3Q12 |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | | | | |
NOW and money market | $ | 869,947 | | $ | 797,179 | | $ | 813,202 | | $ | 72,768 | 9.1% | | $ | 56,745 | 7.0% |
Interest-bearing demand | | 137,698 | | | 101,194 | | | 117,915 | | | 36,504 | 36.1% | | | 19,783 | 16.8% |
Savings | | 11,272 | | | 11,612 | | | 10,659 | | | (340) | (2.9)% | | | 613 | 5.8% |
Certificates of deposits under $100 | | 28,098 | | | 29,359 | | | 30,574 | | | (1,261) | (4.3)% | | | (2,476) | (8.1)% |
Certificates of deposits $100 and over | | 133,243 | | | 136,077 | | | 162,595 | | | (2,834) | (2.1)% | | | (29,352) | (18.1)% |
Reciprocal CDARS | | 98,748 | | | 95,157 | | | 90,468 | | | 3,591 | 3.8% | | | 8,280 | 9.2% |
Total interest-bearing deposits | | 1,279,006 | | | 1,170,578 | | | 1,225,413 | | | 108,428 | 9.3% | | | 53,593 | 4.4% |
Noninterest-bearing demand deposits | | 990,187 | | | 865,393 | | | 823,363 | | | 124,794 | 14.4% | | | 166,824 | 20.3% |
Customer repurchase agreements | | 164,188 | | | 133,402 | | | 124,836 | | | 30,786 | 23.1% | | | 39,352 | 31.5% |
Total deposits and customer repurchase agreements | $ | 2,433,381 | | $ | 2,169,373 | | $ | 2,173,612 | | $ | 264,008 | 12.2% | | $ | 259,769 | 12.0% |
Allowance for Loan and Credit Losses and Credit Quality
· | Nonperforming assets (NPAs) were $25.5 million at September 30, 2013, as compared to $34.3 million at September 30, 2012. |
· | Classified loans decreased from the linked- and prior-year quarter ends by 24.2% and 46.4%, respectively. |
· | Due to the reduction in problem loans, a negative provision for loan losses of $1.6 million was recorded during the third quarter of 2013. |
· | The coverage of Allowance to nonperforming loans increased to 225.9% at September 30, 2013, from 168.7% at June 30, 2013. |
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| Quarter ended |
(in thousands) | 3Q13 | | 2Q13 | | 3Q12 |
ALLOWANCE FOR LOAN AND CREDIT LOSSES | | | | | | | | |
Beginning allowance for loan losses | $ | 43,232 | | $ | 44,874 | | $ | 51,101 |
Provision for loan losses | | (1,554) | | | (1,065) | | | (2,506) |
Net recovery (charge-off) | | 132 | | | (577) | | | (2,158) |
Ending allowance for loan losses | $ | 41,810 | | $ | 43,232 | | $ | 46,437 |
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Beginning allowance for credit losses | $ | - | | $ | - | | $ | 35 |
Provision for credit losses | | - | | | - | | | - |
Ending allowance for credit losses | $ | - | | $ | - | | $ | 35 |
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Total provision for loan and credit losses | $ | (1,554) | | $ | (1,065) | | $ | (2,506) |
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CREDIT QUALITY | | | | | | | | |
Nonaccrual loans | $ | 18,511 | | $ | 25,634 | | $ | 19,471 |
Loans 90 days or more past due and accruing interest | | - | | | - | | | 1,183 |
Total nonperforming loans | | 18,511 | | | 25,634 | | | 20,654 |
OREO and repossessed assets | | 6,960 | | | 7,185 | | | 13,619 |
Total nonperforming assets | $ | 25,471 | | $ | 32,819 | | $ | 34,273 |
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Performing renegotiated loans | $ | 28,814 | | $ | 29,623 | | $ | 34,637 |
Classified loans | $ | 48,735 | | $ | 64,300 | | $ | 90,882 |
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ASSET QUALITY MEASURES | | | | | | | | |
Nonperforming assets to total assets | | 0.91% | | | 1.20% | | | 1.34% |
Nonperforming loans to total loans | | 0.90% | | | 1.27% | | | 1.14% |
Nonperforming loans and OREO to total loans and OREO | | 1.24% | | | 1.62% | | | 1.88% |
Allowance for loan and credit losses to total loans | | 2.04% | | | 2.14% | | | 2.57% |
Allowance for loan and credit losses to nonperforming loans | | 225.87% | | | 168.65% | | | 225.00% |
Shareholders’ Equity
· | Total shareholders’ equity increased $6.3 million from June 30, 2013, to $272.9 million at September 30, 2013. |
· | The tangible common equity to tangible assets ratio held relatively stable at 7.6% at September 30, 2013 compared to June 30, 2013.* |
· | The Board of Directors of the Company declared a quarterly cash dividend of $0.03 per common share. The dividend will be paid on November 4, 2013, to shareholders of record on October 28, 2013. |
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| Quarter ended |
(in thousands, except per share amounts) | 3Q13 | | 2Q13 | | 3Q12 |
EQUITY MEASURES | | | | | | | | |
Common shareholders' equity | $ | 215,599 | | $ | 209,341 | | $ | 193,692 |
Total shareholders' equity | | 272,937 | | | 266,679 | | | 251,030 |
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Common shares outstanding at period end | | 40,300 | | | 40,282 | | | 39,729 |
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Book value per common share | $ | 5.35 | | $ | 5.20 | | $ | 4.88 |
Tangible book value per common share * | $ | 5.28 | | $ | 5.12 | | $ | 4.80 |
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Tangible common equity to tangible assets * | | 7.58% | | | 7.54% | | | 7.45% |
Tangible equity to tangible assets * | | 9.62% | | | 9.63% | | | 9.69% |
Tier 1 capital ratio | | ** | | | 14.52% | | | 15.08% |
Total-risk based capital ratio | | ** | | | 16.70% | | | 17.35% |
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* 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 $25.1 million for the third quarter of 2013, an increase of $1.1 million from the prior linked-quarter. |
· | The net interest margin expanded by two basis points on a linked-quarter basis to 3.87% mainly due to the redemption of the Notes in August 2013. |
· | Average earning assets of $2.6 billion increased $76.3 million on a linked-quarter basis. |
o | From the second quarter of 2013, average net loans increased $64.8 million, average federal funds sold and interest-earning deposits decreased $3.4 million, and average investments increased $14.9 million. |
· | The yield on average earning assets decreased two basis points to 4.14% on a linked-quarter basis. |
· | The rate paid on average interest-bearing liabilities decreased six basis points on a linked-quarter basis to 0.66%. |
Noninterest Income
· | As a percentage of total operating revenue, noninterest income was 24.1% for the third quarter of 2013 as compared to 26.5% for the second quarter of 2013 and 21.6% for the prior-year quarter. |
· | The Company observed increases across all noninterest income categories and operating units compared to the prior-year quarter. |
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| Quarter ended | | | 3Q13 change vs. |
(in thousands) | 3Q13 | | 2Q13 | | 3Q12 | | 2Q13 | | 3Q12 |
Noninterest income: | | | | | | | | | | | | | | | | |
Deposit service charges | $ | 1,359 | | $ | 1,352 | | $ | 1,218 | | $ | 7 | 0.5% | | $ | 141 | 11.6% |
Investment advisory income | | 1,306 | | | 1,295 | | | 1,176 | | | 11 | 0.8% | | | 130 | 11.1% |
Insurance income | | 2,862 | | | 3,210 | | | 2,412 | | | (348) | (10.8)% | | | 450 | 18.7% |
Investment banking income | | 689 | | | 576 | | | 253 | | | 113 | 19.6% | | | 436 | 172.3% |
Other income | | 1,543 | | | 1,992 | | | 1,341 | | | (449) | (22.5)% | | | 202 | 15.1% |
Total noninterest income | $ | 7,759 | | $ | 8,425 | | $ | 6,400 | | $ | (666) | (7.9)% | | $ | 1,359 | 21.2% |
Operating Expenses
· | The increase in compensation-related expenses over the linked- and prior-year quarters is attributed to an increase in bonus accruals, the recruitment of business development personnel, an increase in 401(k) matching expense and higher medical claims. |
· | The reduction in other operating expenses from the linked- and prior-year quarters is primarily due to a reduction in loan workout and Other Real Estate Owned (“OREO”) expenses. |
· | In the third quarter of 2013, the Company recognized a net gain on OREO, investments and other assets. |
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| Quarter ended | | | 3Q13 change vs. |
(in thousands) | 3Q13 | | 2Q13 | | 3Q12 | | 2Q13 | | 3Q12 |
Noninterest expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | $ | 16,373 | | $ | 14,720 | | $ | 14,004 | | $ | 1,653 | 11.2% | | $ | 2,369 | 16.9% |
Stock-based compensation expense | | 694 | | | 746 | | | 499 | | | (52) | (7.0)% | | | 195 | 39.1% |
Occupancy expenses, premises and equipment | | 3,289 | | | 3,155 | | | 3,307 | | | 134 | 4.2% | | | (18) | (0.5)% |
Amortization of intangibles | | 152 | | | 159 | | | 265 | | | (7) | (4.4)% | | | (113) | (42.6)% |
Other operating expenses | | 3,625 | | | 3,853 | | | 3,818 | | | (228) | (5.9)% | | | (193) | (5.1)% |
(Gain) loss on OREO, repossessed assets and other | | (347) | | | (561) | | | (102) | | | 214 | (38.1)% | | | (245) | 240.2% |
(Gain) loss on investment securities | | 28 | | | (478) | | | 167 | | | 506 | (105.9)% | | | (139) | (83.2)% |
Total noninterest expense | $ | 23,814 | | $ | 21,594 | | $ | 21,958 | | $ | 2,220 | 10.3% | | $ | 1,856 | 8.5% |
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, October 18, 2013, 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=96229 or by telephone at 877.493.9121, (conference ID # 73923180). 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 $2.8 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.
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CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
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| Three months ended September 30, | | Nine months ended September 30, |
(in thousands, except per share amounts) | 2013 | | 2012 | | 2013 | | 2012 |
INCOME STATEMENT DATA | | | | | | | | | | | |
Interest income | $ | 26,961 | | $ | 26,449 | | $ | 79,173 | | $ | 79,885 |
Interest expense | | 2,586 | | | 3,202 | | | 8,248 | | | 9,711 |
NET INTEREST INCOME BEFORE PROVISION | | 24,375 | | | 23,247 | | | 70,925 | | | 70,174 |
Provision for loan losses | | (1,554) | | | (2,506) | | | (4,209) | | | (4,396) |
NET INTEREST INCOME AFTER PROVISION | | 25,929 | | | 25,753 | | | 75,134 | | | 74,570 |
Noninterest income | | 7,759 | | | 6,400 | | | 22,660 | | | 19,887 |
Noninterest expense | | 23,814 | | | 21,958 | | | 67,989 | | | 67,958 |
INCOME BEFORE INCOME TAXES | | 9,874 | | | 10,195 | | | 29,805 | | | 26,499 |
Provision for income taxes | | 2,849 | | | 3,721 | | | 9,642 | | | 9,331 |
NET INCOME FROM CONTINUING OPERATIONS | | 7,025 | | | 6,474 | | | 20,163 | | | 17,168 |
Income (loss) from discontinued operations, net of tax | | - | | | (125) | | | 173 | | | (129) |
NET INCOME | $ | 7,025 | | $ | 6,349 | | $ | 20,336 | | $ | 17,039 |
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Preferred stock dividends | | (144) | | | (717) | | | (801) | | | (2,151) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 6,881 | | $ | 5,632 | | $ | 19,535 | | $ | 14,888 |
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EARNINGS PER COMMON SHARE | | | | | | | | | | | |
BASIC | $ | 0.17 | | $ | 0.14 | | $ | 0.49 | | $ | 0.38 |
DILUTED | $ | 0.17 | | $ | 0.14 | | $ | 0.49 | | $ | 0.38 |
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EQUITY MEASURES | | | | | | | | | | | |
Common shares outstanding at period end (in thousands) | | | | | | 40,300 | | | 39,729 |
Book value per common share | | | | | | | $ | 5.35 | | $ | 4.88 |
Tangible book value per common share * | | | | | | | $ | 5.28 | | $ | 4.80 |
Tangible common equity to tangible assets * | | | | | | | | 7.58% | | | 7.45% |
Tangible equity to tangible assets * | | | | | | | | 9.62% | | | 9.69% |
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* See accompanying Reconciliation of Non-GAAP Measures to GAAP | | | | | | |
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PERIOD END BALANCES | | | | | | | | | | | |
Total assets | | | | | | | $ | 2,807,955 | | $ | 2,559,954 |
Investments | | | | | | | | 582,889 | | | 601,230 |
Loans | | | | | | | | 2,048,866 | | | 1,811,407 |
Intangible assets | | | | | | | | 2,960 | | | 3,148 |
Deposits | | | | | | | | 2,269,193 | | | 2,048,776 |
Subordinated debentures | | | | | | | | 72,166 | | | 93,150 |
Common shareholders' equity | | | | | | | | 215,599 | | | 193,692 |
Total shareholders' equity | | | | | | | | 272,937 | | | 251,030 |
Interest-earning assets | | | | | | | | 2,625,334 | | | 2,382,653 |
Interest-bearing liabilities | | | | | | | | 1,515,360 | | | 1,443,399 |
| | | | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | | | |
Average assets | | | | | | | $ | 2,671,670 | | $ | 2,477,379 |
Average investments | | | | | | | | 565,136 | | | 623,865 |
Average loans | | | | | | | | 1,971,927 | | | 1,713,940 |
Average deposits | | | | | | | | 2,073,450 | | | 1,919,983 |
Average subordinated debentures | | | | | | | | 89,614 | | | 93,150 |
Average shareholders' equity | | | | | | | | 265,385 | | | 237,957 |
Average interest-earning assets | | | | | | | | 2,509,610 | | | 2,308,421 |
Average interest-bearing liabilities | | | | | | | | 1,522,328 | | | 1,464,960 |
| | | | | | | | | | | |
| | | | | | | | | | | |
|
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | |
| Three months ended September 30, | | Nine months ended September 30, |
(in thousands) | | 2013 | | | 2012 | | | 2013 | | | 2012 |
PROFITABILITY MEASURES | | | | | | | | | | | |
Net interest margin | | 3.87% | | | 4.00% | | | 3.89% | | | 4.14% |
Efficiency ratio | | 75.10% | | | 75.28% | | | 74.00% | | | 75.46% |
Return on average assets | | 1.02% | | | 1.00% | | | 1.02% | | | 0.92% |
Return on average shareholders' equity | | 10.34% | | | 10.23% | | | 10.25% | | | 9.56% |
Noninterest income as a percentage of operating revenues | | 24.15% | | | 21.59% | | | 24.21% | | | 22.08% |
| | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | |
Nonperforming loans | | | | | | | | | | | |
Nonaccrual loans | | | | | | | $ | 18,511 | | $ | 19,471 |
Loans 90 days or more past due and accruing interest | | | | | | - | | | 1,183 |
Total nonperforming loans | | | | | | | | 18,511 | | | 20,654 |
OREO & repossessed assets | | | | | | | | 6,960 | | | 13,619 |
Total nonperforming assets | | | | | | | $ | 25,471 | | $ | 34,273 |
| | | | | | | | | | | |
Performing renegotiated loans | | | | | | | $ | 28,814 | | $ | 34,637 |
Classified loans | | | | | | | $ | 48,735 | | $ | 90,882 |
| | | | | | | | | | | |
Charge-offs | | | | | | | $ | (3,183) | | $ | (8,136) |
Recoveries | | | | | | | | 2,336 | | | 3,340 |
Net charge-offs | | | | | | | $ | (847) | | $ | (4,796) |
| | | | | | | | | | | |
Nonperforming assets to total assets | | | | | | | | 0.91% | | | 1.34% |
Nonperforming loans to total loans | | | | | | | | 0.90% | | | 1.14% |
Nonperforming loans and OREO to total loans and OREO | | | | | | | | 1.24% | | | 1.88% |
Allowance for loan and credit losses to total loans | | | | | | | | 2.04% | | | 2.57% |
Allowance for loan and credit losses to nonperforming loans | | | | | | | | 225.87% | | | 225.00% |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | Total | | NPAs as a |
NONPERFORMING ASSETS BY MARKET | Colorado | | Arizona | | Total | | in Category | | % |
Commercial | $ | 2,598 | | $ | 705 | | $ | 3,303 | | $ | 815,424 | | 0.41% |
Real estate - mortgage | | 1,336 | | | 11,194 | | | 12,530 | | | 890,492 | | 1.41% |
Land acquisition & development | | 1,232 | | | 924 | | | 2,156 | | | 43,359 | | 4.97% |
Real estate - construction | | - | | | - | | | - | | | 61,787 | | 0.00% |
Consumer | | 522 | | | - | | | 522 | | | 180,243 | | 0.29% |
Other loans | | - | | | - | | | - | | | 57,561 | | 0.00% |
OREO & repossessed assets | | 5,869 | | | 1,091 | | | 6,960 | | | 6,960 | | - |
NPAs | $ | 11,557 | | $ | 13,914 | | $ | 25,471 | | $ | 2,055,826 | | 1.24% |
| | | | | | | | | | | | | |
Total loans | $ | 1,493,469 | | $ | 555,397 | | $ | 2,048,866 | | | | | |
Total loans and OREO | | 1,499,338 | | | 556,488 | | | 2,055,826 | | | | | |
Nonperforming loans to loans | | 0.38% | | | 2.31% | | | 0.90% | | | | | |
Nonperforming loans and OREO to total loans and OREO | | 0.77% | | | 2.50% | | | 1.24% | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | | |
| Three months ended |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
(in thousands) | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
COMMERCIAL BANKING | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | 26,854 | | $ | 26,068 | | $ | 25,958 | | $ | 26,158 | | $ | 26,364 |
Total interest expense | | 1,281 | | | 1,330 | | | 1,424 | | | 1,577 | | | 1,730 |
Net interest income | | 25,573 | | | 24,738 | | | 24,534 | | | 24,581 | | | 24,634 |
Provision for loan losses | | (1,449) | | | (822) | | | (1,031) | | | (18) | | | (2,324) |
Net interest income (loss) after provision | | 27,022 | | | 25,560 | | | 25,565 | | | 24,599 | | | 26,958 |
Noninterest income | | 2,795 | | | 3,236 | | | 2,681 | | | 3,756 | | | 2,495 |
Noninterest expense | | 8,612 | | | 8,917 | | | 8,215 | | | 8,631 | | | 7,261 |
Operating income | | 21,205 | | | 19,879 | | | 20,031 | | | 19,724 | | | 22,192 |
Amortization of intangibles | | - | | | - | | | - | | | - | | | - |
Provision (benefit) for income taxes | | 7,402 | | | 7,139 | | | 7,149 | | | 7,226 | | | 8,374 |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | 13,803 | | $ | 12,740 | | $ | 12,882 | | $ | 12,498 | | $ | 13,818 |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | 5,592 | | | 5,042 | | | 5,477 | | | 4,806 | | | 5,704 |
Net income | $ | 8,211 | | $ | 7,698 | | $ | 7,405 | | $ | 7,692 | | $ | 8,114 |
| | | | | | | | | | | | | | |
INVESTMENT BANKING | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | 1 | | $ | 1 | | $ | 1 | | $ | 1 | | $ | 1 |
Total interest expense | | - | | | - | | | - | | | - | | | - |
Net interest income | | 1 | | | 1 | | | 1 | | | 1 | | | 1 |
Provision for loan losses | | - | | | - | | | - | | | - | | | - |
Net interest income (loss) after provision | | 1 | | | 1 | | | 1 | | | 1 | | | 1 |
Noninterest income | | 690 | | | 576 | | | 66 | | | 3,358 | | | 253 |
Noninterest expense | | 992 | | | 916 | | | 845 | | | 1,630 | | | 833 |
Operating income | | (301) | | | (339) | | | (778) | | | 1,729 | | | (579) |
Amortization of intangibles | | - | | | - | | | - | | | - | | | - |
Provision (benefit) for income taxes | | (118) | | | (122) | | | (314) | | | 679 | | | (266) |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | (183) | | $ | (217) | | $ | (464) | | $ | 1,050 | | $ | (313) |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | 38 | | | 42 | | | 40 | | | 36 | | | 33 |
Net income (loss) | $ | (221) | | $ | (259) | | $ | (504) | | $ | 1,014 | | $ | (346) |
| | | | | | | | | | | | | | |
WEALTH MANAGEMENT | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | - | | $ | - | | $ | 1 | | $ | - | | $ | - |
Total interest expense | | 14 | | | 13 | | | 10 | | | 8 | | | 10 |
Net interest income | | (14) | | | (13) | | | (9) | | | (8) | | | (10) |
Provision for loan losses | | - | | | - | | | - | | | - | | | - |
Net interest income (loss) after provision | | (14) | | | (13) | | | (9) | | | (8) | | | (10) |
Noninterest income | | 1,306 | | | 1,299 | | | 1,112 | | | 1,109 | | | 1,176 |
Noninterest expense | | 1,041 | | | 1,074 | | | 1,059 | | | 1,372 | | | 1,050 |
Operating income | | 251 | | | 212 | | | 44 | | | (271) | | | 116 |
Amortization of intangibles | | 22 | | | 21 | | | 22 | | | 22 | | | 22 |
Provision (benefit) for income taxes | | 94 | | | 74 | | | 15 | | | (112) | | | 32 |
Net income (loss) from continuing operations | | 135 | | | 117 | | | 7 | | | (181) | | | 62 |
Income (loss) from discontinued operations, net of tax | | - | | | - | | | 173 | | | 453 | | | (125) |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | 135 | | $ | 117 | | $ | 180 | | $ | 272 | | $ | (63) |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | 82 | | | 97 | | | 105 | | | 165 | | | 150 |
Net income (loss) | $ | 53 | | $ | 20 | | $ | 75 | | $ | 107 | | $ | (213) |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | | |
| Three months ended |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
(in thousands) | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
INSURANCE | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | 2 | | $ | 2 | | $ | 1 | | $ | 1 | | $ | 2 |
Total interest expense | | 1 | | | 5 | | | 5 | | | 2 | | | - |
Net interest income | | 1 | | | (3) | | | (4) | | | (1) | | | 2 |
Provision for loan losses | | - | | | - | | | - | | | - | | | - |
Net interest income (loss) after provision | | 1 | | | (3) | | | (4) | | | (1) | | | 2 |
Noninterest income | | 2,862 | | | 3,210 | | | 2,510 | | | 2,341 | | | 2,412 |
Noninterest expense | | 2,311 | | | 2,573 | | | 2,315 | | | 2,276 | | | 2,201 |
Operating income | | 552 | | | 634 | | | 191 | | | 64 | | | 213 |
Amortization of intangibles | | 130 | | | 138 | | | 178 | | | 172 | | | 243 |
Provision (benefit) for income taxes | | 165 | | | 197 | | | 79 | | | (40) | | | (9) |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | 257 | | $ | 299 | | $ | (66) | | $ | (68) | | $ | (21) |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | 109 | | | 123 | | | 116 | | | 92 | | | 86 |
Net income (loss) | $ | 148 | | $ | 176 | | $ | (182) | | $ | (160) | | $ | (107) |
| | | | | | | | | | | | | | |
CORPORATE SUPPORT AND OTHER | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | 104 | | $ | 89 | | $ | 91 | | $ | 83 | | $ | 82 |
Total interest expense | | 1,290 | | | 1,447 | | | 1,428 | | | 1,452 | | | 1,462 |
Net interest income | | (1,186) | | | (1,358) | | | (1,337) | | | (1,369) | | | (1,380) |
Provision for loan losses | | (105) | | | (243) | | | (559) | | | (319) | | | (182) |
Net interest income (loss) after provision | | (1,081) | | | (1,115) | | | (778) | | | (1,050) | | | (1,198) |
Noninterest income | | 106 | | | 104 | | | 107 | | | 108 | | | 64 |
Noninterest expense | | 10,706 | | | 7,955 | | | 9,947 | | | 9,105 | | | 10,348 |
Operating income | | (11,681) | | | (8,966) | | | (10,618) | | | (10,047) | | | (11,482) |
Amortization of intangibles | | - | | | - | | | - | | | - | | | - |
Provision (benefit) for income taxes | | (4,694) | | | (3,289) | | | (4,135) | | | (3,826) | | | (4,410) |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | (6,987) | | $ | (5,677) | | $ | (6,483) | | $ | (6,221) | | $ | (7,072) |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | (5,821) | | | (5,304) | | | (5,738) | | | (5,099) | | | (5,973) |
Net loss | $ | (1,166) | | $ | (373) | | $ | (745) | | $ | (1,122) | | $ | (1,099) |
| | | | | | | | | | | | | | |
CONSOLIDATED | | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Total interest income | $ | 26,961 | | $ | 26,160 | | $ | 26,052 | | $ | 26,243 | | $ | 26,449 |
Total interest expense | | 2,586 | | | 2,795 | | | 2,867 | | | 3,039 | | | 3,202 |
Net interest income | | 24,375 | | | 23,365 | | | 23,185 | | | 23,204 | | | 23,247 |
Provision for loan losses | | (1,554) | | | (1,065) | | | (1,590) | | | (337) | | | (2,506) |
Net interest income (loss) after provision | | 25,929 | | | 24,430 | | | 24,775 | | | 23,541 | | | 25,753 |
Noninterest income | | 7,759 | | | 8,425 | | | 6,476 | | | 10,672 | | | 6,400 |
Noninterest expense | | 23,662 | | | 21,435 | | | 22,381 | | | 23,014 | | | 21,693 |
Operating income | | 10,026 | | | 11,420 | | | 8,870 | | | 11,199 | | | 10,460 |
Amortization of intangibles | | 152 | | | 159 | | | 200 | | | 194 | | | 265 |
Provision (benefit) for income taxes | | 2,849 | | | 3,999 | | | 2,794 | | | 3,927 | | | 3,721 |
Net income (loss) from continuing operations | | 7,025 | | | 7,262 | | | 5,876 | | | 7,078 | | | 6,474 |
Income (loss) from discontinued operations, net of tax | | - | | | - | | | 173 | | | 453 | | | (125) |
Net income (loss) before management | | | | | | | | | | | | | | |
fees and overhead allocations | $ | 7,025 | | $ | 7,262 | | $ | 6,049 | | $ | 7,531 | | $ | 6,349 |
Management fees and overhead | | | | | | | | | | | | | | |
allocations, net of tax | | - | | | - | | | - | | | - | | | - |
Net income | $ | 7,025 | | $ | 7,262 | | $ | 6,049 | | $ | 7,531 | | $ | 6,349 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | | |
| Three months ended |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
(in thousands, except per share amounts) | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
Interest income | $ | 26,961 | | $ | 26,160 | | $ | 26,052 | | $ | 26,243 | | $ | 26,449 |
Interest expense | | 2,586 | | | 2,795 | | | 2,867 | | | 3,039 | | | 3,202 |
Net interest income before provision | | 24,375 | | | 23,365 | | | 23,185 | | | 23,204 | | | 23,247 |
Provision for loan losses | | (1,554) | | | (1,065) | | | (1,590) | | | (337) | | | (2,506) |
Net interest income after provision | | 25,929 | | | 24,430 | | | 24,775 | | | 23,541 | | | 25,753 |
Noninterest income: | | | | | | | | | | | | | | |
Deposit service charges | $ | 1,359 | | $ | 1,352 | | $ | 1,328 | | $ | 1,220 | | $ | 1,218 |
Investment advisory income | | 1,306 | | | 1,295 | | | 1,112 | | | 1,109 | | | 1,176 |
Insurance income | | 2,862 | | | 3,210 | | | 2,510 | | | 2,341 | | | 2,412 |
Investment banking income | | 689 | | | 576 | | | 66 | | | 3,358 | | | 253 |
Other income | | 1,543 | | | 1,992 | | | 1,460 | | | 2,644 | | | 1,341 |
Total noninterest income | | 7,759 | | | 8,425 | | | 6,476 | | | 10,672 | | | 6,400 |
Noninterest expense: | | | | | | | | | | | | | | |
Salaries and employee benefits | $ | 16,373 | | $ | 14,720 | | $ | 14,484 | | $ | 15,526 | | $ | 14,004 |
Stock-based compensation expense | | 694 | | | 746 | | | 748 | | | 450 | | | 499 |
Occupancy expenses, premises and equipment | | 3,289 | | | 3,155 | | | 3,304 | | | 3,393 | | | 3,307 |
Amortization of intangibles | | 152 | | | 159 | | | 200 | | | 193 | | | 265 |
Other operating expenses | | 3,625 | | | 3,853 | | | 3,926 | | | 4,331 | | | 3,818 |
Net (gain) loss on securities, other assets and OREO | | (319) | | | (1,039) | | | (81) | | | (685) | | | 65 |
Total noninterest expense | | 23,814 | | | 21,594 | | | 22,581 | | | 23,208 | | | 21,958 |
Net income before income taxes | | 9,874 | | | 11,261 | | | 8,670 | | | 11,005 | | | 10,195 |
Provision for income taxes | | 2,849 | | | 3,999 | | | 2,794 | | | 3,927 | | | 3,721 |
Net income from continuing operations | | 7,025 | | | 7,262 | | | 5,876 | | | 7,078 | | | 6,474 |
Income (loss) from discontinued operations, net of tax | | - | | | - | | | 173 | | | 453 | | | (125) |
Net income | $ | 7,025 | | $ | 7,262 | | $ | 6,049 | | $ | 7,531 | | $ | 6,349 |
| | | | | | | | | | | | | | |
Preferred stock dividends | | (144) | | | (143) | | | (514) | | | (664) | | | (717) |
Net income available to common shareholders | $ | 6,881 | | $ | 7,119 | | $ | 5,535 | | $ | 6,867 | | $ | 5,632 |
| | | | | | | | | | | | | | |
Earnings per common share | | | | | | | | | | | | | | |
Basic | $ | 0.17 | | $ | 0.18 | | $ | 0.14 | | $ | 0.17 | | $ | 0.14 |
Diluted | $ | 0.17 | | $ | 0.18 | | $ | 0.14 | | $ | 0.17 | | $ | 0.14 |
| | | | | | | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | | | | | | |
Net interest margin | | 3.87% | | | 3.85% | | | 3.94% | | | 3.89% | | | 4.00% |
Efficiency ratio | | 75.10% | | | 71.20% | | | 75.80% | | | 70.30% | | | 75.28% |
Return on average assets | | 1.02% | | | 1.09% | | | 0.94% | | | 1.15% | | | 1.00% |
Return on average shareholders' equity | | 10.34% | | | 10.93% | | | 9.43% | | | 11.77% | | | 10.23% |
Noninterest income as a percentage of operating revenues | | 24.15% | | | 26.50% | | | 21.83% | | | 31.50% | | | 21.59% |
| | | | | | | | | | | | | | |
EQUITY MEASURES | | | | | | | | | | | | | | |
Common shares outstanding at period end (in thousands) | | 40,300 | | | 40,282 | | | 40,197 | | | 39,790 | | | 39,729 |
Diluted weighted average common shares outstanding (in thousands) | | 39,738 | | | 39,580 | | | 39,362 | | | 39,164 | | | 39,122 |
Book value per common share | $ | 5.35 | | $ | 5.20 | | $ | 5.13 | | $ | 5.02 | | $ | 4.88 |
Tangible book value per common share * | $ | 5.28 | | $ | 5.12 | | $ | 5.05 | | $ | 4.93 | | $ | 4.80 |
| | | | | | | | | | | | | | |
Tangible common equity to tangible assets * | | 7.58% | | | 7.54% | | | 7.75% | | | 7.40% | | | 7.45% |
Tangible equity to tangible assets * | | 9.62% | | | 9.63% | | | 9.94% | | | 9.56% | | | 9.69% |
Tier 1 capital ratio | | ** | | | 14.52% | | | 14.72% | | | 14.29% | | | 15.08% |
Total risk based capital ratio | | ** | | | 16.70% | | | 16.93% | | | 16.51% | | | 17.35% |
| | | | | | | | | | | | | | |
* See accompanying Reconciliation of Non-GAAP Measures to GAAP | | | | | | | | | |
** Ratios unavailable at the time of release. | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | | |
| At |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
(in thousands) | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
PERIOD END BALANCES | | | | | | | | | | | | | | |
Total assets | $ | 2,807,955 | | $ | 2,738,749 | | $ | 2,620,512 | | $ | 2,653,641 | | $ | 2,559,954 |
Investments | | 582,889 | | | 576,045 | | | 559,607 | | | 571,665 | | | 601,230 |
Loans | | 2,048,866 | | | 2,017,844 | | | 1,925,806 | | | 1,926,432 | | | 1,811,407 |
Intangible assets | | 2,960 | | | 3,112 | | | 3,373 | | | 3,573 | | | 3,148 |
Deposits | | 2,269,193 | | | 2,035,971 | | | 2,065,104 | | | 2,129,260 | | | 2,048,776 |
Subordinated debentures | | 72,166 | | | 93,150 | | | 93,150 | | | 93,150 | | | 93,150 |
Common shareholders' equity | | 215,599 | | | 209,341 | | | 206,179 | | | 199,713 | | | 193,692 |
Total shareholders' equity | | 272,937 | | | 266,679 | | | 263,517 | | | 257,051 | | | 251,030 |
Interest-earning assets | | 2,625,334 | | | 2,564,833 | | | 2,449,800 | | | 2,473,847 | | | 2,382,653 |
Interest-bearing liabilities | | 1,515,360 | | | 1,552,129 | | | 1,487,799 | | | 1,490,901 | | | 1,443,399 |
| | | | | | | | | | | | | | |
LOANS | | | | | | | | | | | | | | |
Commercial | $ | 815,424 | | $ | 813,186 | | $ | 742,239 | | $ | 729,442 | | $ | 663,880 |
Real estate - mortgage | | 890,492 | | | 884,579 | | | 889,171 | | | 880,377 | | | 850,824 |
Land acquisition & development | | 43,359 | | | 36,795 | | | 38,054 | | | 53,562 | | | 54,220 |
Real estate - construction | | 61,787 | | | 58,332 | | | 46,346 | | | 67,022 | | | 56,180 |
Consumer | | 180,243 | | | 168,606 | | | 157,973 | | | 149,638 | | | 137,299 |
Other | | 57,561 | | | 56,346 | | | 52,023 | | | 46,391 | | | 49,004 |
Gross loans | | 2,048,866 | | | 2,017,844 | | | 1,925,806 | | | 1,926,432 | | | 1,811,407 |
Less allowance for loan losses | | (41,810) | | | (43,232) | | | (44,874) | | | (46,866) | | | (46,437) |
Total net loans | $ | 2,007,056 | | $ | 1,974,612 | | $ | 1,880,932 | | $ | 1,879,566 | | $ | 1,764,970 |
| | | | | | | | | | | | | | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | | |
NOW and money market | $ | 869,947 | | $ | 797,179 | | $ | 846,204 | | $ | 866,250 | | $ | 813,202 |
Interest-bearing demand | | 137,698 | | | 101,194 | | | 118,085 | | | 118,433 | | | 117,915 |
Savings | | 11,272 | | | 11,612 | | | 11,429 | | | 24,813 | | | 10,659 |
Certificates of deposits under $100 | | 28,098 | | | 29,359 | | | 29,889 | | | 30,058 | | | 30,574 |
Certificates of deposits $100 and over | | 133,243 | | | 136,077 | | | 143,529 | | | 148,184 | | | 162,595 |
Reciprocal CDARS | | 98,748 | | | 95,157 | | | 81,631 | | | 82,127 | | | 90,468 |
Total interest-bearing deposits | | 1,279,006 | | | 1,170,578 | | | 1,230,767 | | | 1,269,865 | | | 1,225,413 |
Noninterest-bearing demand deposits | | 990,187 | | | 865,393 | | | 834,337 | | | 859,395 | | | 823,363 |
Customer repurchase agreements | | 164,188 | | | 133,402 | | | 124,882 | | | 127,887 | | | 124,836 |
Total deposits and customer repurchase agreements | $ | 2,433,381 | | $ | 2,169,373 | | $ | 2,189,986 | | $ | 2,257,147 | | $ | 2,173,612 |
| | | | | | | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | | | | | | |
Average assets | $ | 2,734,624 | | $ | 2,662,914 | | $ | 2,616,170 | | $ | 2,600,083 | | $ | 2,529,999 |
Average investments | | 573,375 | | | 558,464 | | | 563,461 | | | 586,482 | | | 607,696 |
Average loans | | 2,031,282 | | | 1,968,674 | | | 1,914,542 | | | 1,831,430 | | | 1,780,352 |
Average deposits | | 2,129,108 | | | 2,030,209 | | | 2,060,274 | | | 2,062,306 | | | 1,979,267 |
Average subordinated debentures | | 82,658 | | | 93,150 | | | 93,150 | | | 93,150 | | | 93,150 |
Average shareholders' equity | | 269,494 | | | 266,526 | | | 260,030 | | | 254,455 | | | 246,783 |
Average interest-earning assets | | 2,577,907 | | | 2,501,630 | | | 2,447,867 | | | 2,430,196 | | | 2,365,965 |
Average interest-bearing liabilities | | 1,536,699 | | | 1,535,232 | | | 1,494,590 | | | 1,477,566 | | | 1,468,194 |
| | | | | | | | | | | | | | |
ALLOWANCE FOR LOAN AND CREDIT LOSSES | | | | | | | | | | | | | | |
Beginning allowance for loan losses | $ | 43,232 | | $ | 44,874 | | $ | 46,866 | | $ | 46,437 | | $ | 51,101 |
Provision for loan losses | | (1,554) | | | (1,065) | | | (1,590) | | | (337) | | | (2,506) |
Net recovery (charge-off) | | 132 | | | (577) | | | (402) | | | 766 | | | (2,158) |
Ending allowance for loan losses | $ | 41,810 | | $ | 43,232 | | $ | 44,874 | | $ | 46,866 | | $ | 46,437 |
| | | | | | | | | | | | | | |
Beginning allowance for credit losses | $ | - | | $ | - | | $ | - | | $ | 35 | | $ | 35 |
Provision for credit losses | | - | | | - | | | - | | | (35) | | | - |
Ending allowance for credit losses | $ | - | | $ | - | | $ | - | | $ | - | | $ | 35 |
| | | | | | | | | | | | | | |
Total provision for loan and credit losses | $ | (1,554) | | $ | (1,065) | | $ | (1,590) | | $ | (372) | | $ | (2,506) |
| | | | | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | | | | |
Nonperforming loans | | | | | | | | | | | | | | |
Nonaccrual loans | $ | 18,511 | | $ | 25,634 | | $ | 30,420 | | $ | 19,677 | | $ | 19,471 |
Loans 90 days or more past due and accruing interest | | - | | | - | | | 407 | | | 35 | | | 1,183 |
Total nonperforming loans | | 18,511 | | | 25,634 | | | 30,827 | | | 19,712 | | | 20,654 |
OREO and repossessed assets | | 6,960 | | | 7,185 | | | 8,420 | | | 10,577 | | | 13,619 |
Total nonperforming assets | $ | 25,471 | | $ | 32,819 | | $ | 39,247 | | $ | 30,289 | | $ | 34,273 |
| | | | | | | | | | | | | | |
Performing renegotiated loans | $ | 28,814 | | $ | 29,623 | | $ | 31,619 | | $ | 43,321 | | $ | 34,637 |
Classified loans | $ | 48,735 | | $ | 64,300 | | $ | 67,677 | | $ | 81,205 | | $ | 90,882 |
| | | | | | | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | | | | | | |
Nonperforming assets to total assets | | 0.91% | | | 1.20% | | | 1.50% | | | 1.14% | | | 1.34% |
Nonperforming loans to total loans | | 0.90% | | | 1.27% | | | 1.60% | | | 1.02% | | | 1.14% |
Nonperforming loans and OREO to total loans and OREO | | 1.24% | | | 1.62% | | | 2.03% | | | 1.56% | | | 1.88% |
Allowance for loan and credit losses to total loans | | 2.04% | | | 2.14% | | | 2.33% | | | 2.43% | | | 2.57% |
Allowance for loan and credit losses to nonperforming loans | | 225.87% | | | 168.65% | | | 145.57% | | | 237.75% | | | 225.00% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| For the three months ended, |
| September 30, 2013 | | June 30, 2013 | | September 30, 2012 |
| | | | 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 | $ | 16,478 | | $ | 23 | 0.55% | | $ | 19,918 | | $ | 23 | 0.46% | | $ | 28,933 | | $ | 26 | 0.35% |
Investment securities | | 573,375 | | | 4,116 | 2.87% | | | 558,464 | | | 4,175 | 2.99% | | | 607,696 | | | 4,535 | 2.99% |
Loans | | 2,031,282 | | | 23,564 | 4.54% | | | 1,968,674 | | | 22,611 | 4.54% | | | 1,780,352 | | | 22,411 | 4.93% |
Allowance for loan losses | | (43,228) | | | | | | | (45,426) | | | | | | | (51,016) | | | | |
Total interest-earning assets | $ | 2,577,907 | | $ | 27,703 | 4.14% | | $ | 2,501,630 | | $ | 26,809 | 4.16% | | $ | 2,365,965 | | $ | 26,972 | 4.37% |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-earning assets | | 156,717 | | | | | | | 161,284 | | | | | | | 164,034 | | | | |
Total assets | $ | 2,734,624 | | | | | | $ | 2,662,914 | | | | | | $ | 2,529,999 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | |
NOW and money market | $ | 848,295 | | $ | 710 | 0.33% | | $ | 816,593 | | $ | 695 | 0.34% | | $ | 782,546 | | $ | 924 | 0.47% |
Interest-bearing demand | | 118,384 | | | 110 | 0.37% | | | 109,991 | | | 109 | 0.40% | | | 121,979 | | | 164 | 0.53% |
Savings | | 11,789 | | | 1 | 0.03% | | | 11,498 | | | 2 | 0.07% | | | 10,601 | | | 3 | 0.11% |
Certificates of deposit | | | | | | | | | | | | | | | | | | | | |
Reciprocal | | 95,401 | | | 86 | 0.36% | | | 88,897 | | | 92 | 0.42% | | | 91,515 | | | 114 | 0.49% |
Under $100 | | 28,457 | | | 34 | 0.47% | | | 29,585 | | | 38 | 0.52% | | | 30,838 | | | 46 | 0.59% |
$100 and over | | 130,956 | | | 189 | 0.57% | | | 139,585 | | | 207 | 0.59% | | | 165,152 | | | 296 | 0.71% |
Total interest-bearing deposits | $ | 1,233,282 | | $ | 1,130 | 0.36% | | $ | 1,196,149 | | $ | 1,143 | 0.38% | | $ | 1,202,631 | | $ | 1,547 | 0.51% |
Other borrowings | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 160,514 | | | 86 | 0.21% | | | 149,203 | | | 82 | 0.22% | | | 151,222 | | | 120 | 0.31% |
Other short-term borrowings | | 60,245 | | | 34 | 0.22% | | | 96,730 | | | 69 | 0.28% | | | 21,191 | | | 17 | 0.31% |
Long term-debt | | 82,658 | | | 1,336 | 6.32% | | | 93,150 | | | 1,501 | 6.37% | | | 93,150 | | | 1,518 | 6.38% |
Total interest-bearing liabilities | $ | 1,536,699 | | $ | 2,586 | 0.66% | | $ | 1,535,232 | | $ | 2,795 | 0.72% | | $ | 1,468,194 | | $ | 3,202 | 0.86% |
Noninterest-bearing demand accounts | | 895,826 | | | | | | | 834,060 | | | | | | | 776,636 | | | | |
Total deposits and interest-bearing liabilities | | 2,432,525 | | | | | | | 2,369,292 | | | | | | | 2,244,830 | | | | |
Other noninterest-bearing liabilities | | 32,605 | | | | | | | 27,096 | | | | | | | 38,386 | | | | |
Total liabilities | | 2,465,130 | | | | | | | 2,396,388 | | | | | | | 2,283,216 | | | | |
Total equity | | 269,494 | | | | | | | 266,526 | | | | | | | 246,783 | | | | |
Total liabilities and equity | $ | 2,734,624 | | | | | | $ | 2,662,914 | | | | | | $ | 2,529,999 | | | | |
Net interest income - taxable equivalent | | | | $ | 25,117 | | | | | | $ | 24,014 | | | | | | $ | 23,770 | |
Net interest spread | | | | | | 3.48% | | | | | | | 3.44% | | | | | | | 3.51% |
Net interest margin | | | | | | 3.87% | | | | | | | 3.85% | | | | | | | 4.00% |
Ratio of average interest-earning assets to | | | | | | | | | | | | | | | | | | | | |
average interest-bearing liabilities | | 167.76% | | | | | | | 162.95% | | | | | | | 161.15% | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
CoBiz Financial Inc. |
September 30, 2013 |
(unaudited) |
| | | | | | | | | | | | | |
| For the nine months ended September 30, |
| 2013 | | 2012 |
| | | | 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 | $ | 17,710 | | $ | 73 | 0.54% | | $ | 23,872 | | $ | 76 | 0.42% |
Investment securities | | 565,136 | | | 12,588 | 2.97% | | | 623,865 | | | 15,265 | 3.26% |
Loans | | 1,971,927 | | | 68,515 | 4.58% | | | 1,713,940 | | | 65,884 | 5.05% |
Allowance for loan losses | | (45,163) | | | | | | | (53,256) | | | | |
Total interest-earning assets | $ | 2,509,610 | | $ | 81,176 | 4.19% | | $ | 2,308,421 | | $ | 81,225 | 4.52% |
| | | | | | | | | | | | | |
Noninterest-earning assets | | 162,060 | | | | | | | 168,958 | | | | |
Total assets | $ | 2,671,670 | | | | | | $ | 2,477,379 | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market | $ | 837,033 | | $ | 2,195 | 0.35% | | $ | 771,182 | | $ | 2,850 | 0.49% |
Interest-bearing demand | | 115,768 | | | 342 | 0.39% | | | 112,068 | | | 457 | 0.54% |
Savings | | 13,900 | | | 6 | 0.06% | | | 10,623 | | | 9 | 0.11% |
Certificates of deposit | | | | | | | | | | | | | |
Reciprocal | | 88,801 | | | 272 | 0.41% | | | 91,884 | | | 342 | 0.50% |
Under $100 | | 29,264 | | | 112 | 0.51% | | | 31,980 | | | 155 | 0.65% |
$100 and over | | 138,309 | | | 635 | 0.61% | | | 166,020 | | | 931 | 0.75% |
Total interest-bearing deposits | $ | 1,223,075 | | $ | 3,562 | 0.39% | | $ | 1,183,757 | | $ | 4,744 | 0.54% |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 151,542 | | | 252 | 0.22% | | | 135,985 | | | 324 | 0.31% |
Other short-term borrowings | | 58,097 | | | 113 | 0.26% | | | 52,068 | | | 121 | 0.31% |
Long term-debt | | 89,614 | | | 4,321 | 6.36% | | | 93,150 | | | 4,522 | 6.38% |
Total interest-bearing liabilities | $ | 1,522,328 | | $ | 8,248 | 0.72% | | $ | 1,464,960 | | $ | 9,711 | 0.88% |
Noninterest-bearing demand accounts | | 850,375 | | | | | | | 736,226 | | | | |
Total deposits and interest-bearing liabilities | | 2,372,703 | | | | | | | 2,201,186 | | | | |
Other noninterest-bearing liabilities | | 33,582 | | | | | | | 38,236 | | | | |
Total liabilities | | 2,406,285 | | | | | | | 2,239,422 | | | | |
Total equity | | 265,385 | | | | | | | 237,957 | | | | |
Total liabilities and equity | $ | 2,671,670 | | | | | | $ | 2,477,379 | | | | |
Net interest income - taxable equivalent | | | | $ | 72,928 | | | | | | $ | 71,514 | |
Net interest spread | | | | | | 3.47% | | | | | | | 3.64% |
Net interest margin | | | | | | 3.89% | | | | | | | 4.14% |
Ratio of average interest-earning assets to | | | | | | | | | | | | | |
average interest-bearing liabilities | | 164.85% | | | | | | | 157.58% | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
CoBiz Financial Inc. |
September 30, 2013 |
(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 table includes non-GAAP financial measures related to tangible equity, tangible common equity, and tangible assets. These items have been adjusted to exclude intangible assets and preferred stock. |
| | | | | | | | | | | | | | | | |
| | | At |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
| | | | | | | | | | | | | | | | |
| Shareholders' equity as reported - GAAP | | $ | 272,937 | | $ | 266,679 | | $ | 263,517 | | $ | 257,051 | | $ | 251,030 |
| Intangible assets | | | (2,960) | | | (3,112) | | | (3,373) | | | (3,573) | | | (3,148) |
| | | | | | | | | | | | | | | | |
A | Tangible equity - non-GAAP | | | 269,977 | | | 263,567 | | | 260,144 | | | 253,478 | | | 247,882 |
| Preferred stock | | | (57,338) | | | (57,338) | | | (57,338) | | | (57,338) | | | (57,338) |
| | | | | | | | | | | | | | | | |
B | Tangible common equity - non-GAAP | | $ | 212,639 | | $ | 206,229 | | $ | 202,806 | | $ | 196,140 | | $ | 190,544 |
| | | | | | | | | | | | | | | | |
| Total assets as reported - GAAP | | $ | 2,807,955 | | $ | 2,738,749 | | $ | 2,620,512 | | $ | 2,653,641 | | $ | 2,559,954 |
| Intangible assets | | | (2,960) | | | (3,112) | | | (3,373) | | | (3,573) | | | (3,148) |
| | | | | | | | | | | | | | | | |
C | Total tangible assets - non-GAAP | | $ | 2,804,995 | | $ | 2,735,637 | | $ | 2,617,139 | | $ | 2,650,068 | | $ | 2,556,806 |
| | | | | | | | | | | | | | | | |
D | Common shares outstanding | | | 40,300 | | | 40,282 | | | 40,197 | | | 39,790 | | | 39,729 |
| | | | | | | | | | | | | | | | |
B / C | Tangible common equity to tangible assets - non-GAAP | | | 7.58% | | | 7.54% | | | 7.75% | | | 7.40% | | | 7.45% |
A / C | Tangible equity to tangible assets - non-GAAP | | | 9.62% | | | 9.63% | | | 9.94% | | | 9.56% | | | 9.69% |
B / D | Tangible book value per common share - non-GAAP | | $ | 5.28 | | $ | 5.12 | | $ | 5.05 | | $ | 4.93 | | $ | 4.80 |
