CoBiz Financial Announces First Quarter 2014 Results
Reports strong loan growth and expanding margin
Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $2.9 billion in assets, announced net income available to common shareholders of $5.4 million for the first quarter of 2014, or $0.13 per diluted common share. Net income available to common shareholders for the first quarter of 2013 was $5.5 million, or $0.14 per diluted common share. Return on average assets for the first quarter of 2014 was 0.80% versus 0.94% for the prior-year quarter, and return on average shareholders’ equity was 7.9% for the first quarter of 2014 versus 9.4% for the prior-year quarter.
Financial highlights – First quarter 2014
| · | | Loans increased $67.9 million, or 13.2% annualized, from December 31, 2013 and $226.5 million, or 11.8%, from March 31, 2014. |
| · | | Seasonally soft noninterest income was adversely impacted by a $1.3 million valuation adjustment on a limited partnership investment, reducing diluted earnings per common share by $0.02 per share in the first quarter. |
| · | | The net interest margin expanded 11 basis points from the fourth quarter of 2013 (linked-quarter) to 3.90%, and increased by three basis points from the prior-year quarter. |
| · | | Net interest income on a tax-equivalent basis (NII) increased $0.2 million from the prior linked-quarter and $2.0 million, or 8.2%, from the prior-year quarter. |
| · | | The Company continues to benefit from improving asset quality, and recorded a negative provision for loan losses of $1.9 million during the first quarter of 2014. |
Financial Summary
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| Quarter ended (unaudited) | | | 1Q14 change vs. |
(in thousands, except per share amounts) | 1Q14 | | 4Q13 | | 1Q13 | | 4Q13 | | 1Q13 |
Net interest income before provision | $ | 24,905 | | $ | 24,776 | | $ | 23,185 | | $ | 129 | 0.5% | | $ | 1,720 | 7.4% |
Provision for loan losses | | (1,888) | | | (4,595) | | | (1,590) | | | 2,707 | 58.9% | | | (298) | (18.7)% |
Net interest income after provision | | 26,793 | | | 29,371 | | | 24,775 | | | (2,578) | (8.8)% | | | 2,018 | 8.1% |
Total noninterest income | | 5,681 | | | 8,252 | | | 6,476 | | | (2,571) | (31.2)% | | | (795) | (12.3)% |
Total noninterest expense | | 24,147 | | | 26,639 | | | 22,581 | | | (2,492) | (9.4)% | | | 1,566 | 6.9% |
Net income before income taxes | | 8,327 | | | 10,984 | | | 8,670 | | | (2,657) | (24.2)% | | | (343) | (4.0)% |
Provision for income taxes | | 2,810 | | | 3,709 | | | 2,794 | | | (899) | (24.2)% | | | 16 | 0.6% |
Income from continuing operations | | 5,517 | | | 7,275 | | | 5,876 | | | (1,758) | (24.2)% | | | (359) | (6.1)% |
Discontinued operations, net of tax | | - | | | - | | | 173 | | | - | 0.0% | | | (173) | (100.0)% |
Net income | | 5,517 | | | 7,275 | | | 6,049 | | | (1,758) | (24.2)% | | | (532) | (8.8)% |
Preferred stock dividends | | (143) | | | (143) | | | (514) | | | - | 0.0% | | | 371 | 72.2% |
Net income available to common shareholders | $ | 5,374 | | $ | 7,132 | | $ | 5,535 | | $ | (1,758) | (24.6)% | | $ | (161) | (2.9)% |
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Diluted earnings per common share | $ | 0.13 | | $ | 0.18 | | $ | 0.14 | | $ | (0.05) | (27.8)% | | $ | (0.01) | (7.1)% |
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KEY RATIOS | | | | | | | | | | | | | | | | |
Net interest margin | | 3.90% | | | 3.79% | | | 3.87% | | | | | | | | |
Efficiency ratio | | 77.39% | | | 72.57% | | | 74.28% | | | | | | | | |
Return on average assets | | 0.80% | | | 1.03% | | | 0.94% | | | | | | | | |
Return on average shareholders' equity | | 7.86% | | | 10.42% | | | 9.43% | | | | | | | | |
Noninterest income as a percentage of operating revenues | | 18.57% | | | 24.98% | | | 21.83% | | | | | | | | |
“I was pleased with our core operating results for the first quarter,” said Chairman and CEO Steve Bangert. “As a franchise, we are executing extremely well with strong loan growth and an expanding net interest margin. In both Colorado and Arizona, the pipeline of new business opportunities is very encouraging.”
Loans
| · | | Loans at March 31, 2014, were $2.2 billion, increasing $67.9 million or 13.2% annualized from the prior linked-quarter. From March 31, 2013, loans increased $226.5 million, or 11.8%. |
| Quarter ended (unaudited) | | | 1Q14 change vs. |
(in thousands) | 1Q14 | | 4Q13 | | 1Q13 | | 4Q13 | | 1Q13 |
LOANS | | | | | | | | | | | | | | | | |
Commercial & industrial | $ | 860,060 | | $ | 824,453 | | $ | 742,239 | | $ | 35,607 | 4.3% | | $ | 117,821 | 15.9% |
Owner-occupied real estate | | 463,192 | | | 452,959 | | | 438,118 | | | 10,233 | 2.3% | | | 25,074 | 5.7% |
Investor real estate | | 462,855 | | | 447,905 | | | 451,053 | | | 14,950 | 3.3% | | | 11,802 | 2.6% |
Construction & land | | 136,018 | | | 127,952 | | | 84,400 | | | 8,066 | 6.3% | | | 51,618 | 61.2% |
Consumer | | 183,156 | | | 181,056 | | | 157,973 | | | 2,100 | 1.2% | | | 25,183 | 15.9% |
Other | | 47,013 | | | 50,034 | | | 52,023 | | | (3,021) | (6.0)% | | | (5,010) | (9.6)% |
Total loans | $ | 2,152,294 | | $ | 2,084,359 | | $ | 1,925,806 | | $ | 67,935 | 3.3% | | $ | 226,488 | 11.8% |
| · | | New loans of $105.5 million were added during the first quarter of 2014 and advances on existing lines totaled $90.7 million. |
| · | | During the first quarter of 2014, paydowns and maturities moderated after steadily increasing throughout 2013. Paydowns and maturities were $128.1 million in the first quarter of 2014, versus $201.0 million in the prior linked-quarter and $150.9 million in the prior-year quarter. |
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| Quarter ended (unaudited) |
(in thousands) | 1Q14 | | 4Q13 | | 3Q13 | | 2Q13 | | 1Q13 |
Loans - beginning balance | $ | 2,084,359 | | $ | 2,048,866 | | $ | 2,017,844 | | $ | 1,925,806 | | $ | 1,926,432 |
New credit extended | | 105,542 | | | 158,801 | | | 136,138 | | | 149,053 | | | 78,587 |
Credit advanced | | 90,736 | | | 79,126 | | | 88,680 | | | 96,122 | | | 72,487 |
Paydowns & maturities | | (128,143) | | | (201,026) | | | (193,396) | | | (151,176) | | | (150,878) |
Gross loan charge-offs | | (200) | | | (1,408) | | | (400) | | | (1,961) | | | (822) |
Loans - ending balance | $ | 2,152,294 | | $ | 2,084,359 | | $ | 2,048,866 | | $ | 2,017,844 | | $ | 1,925,806 |
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Net change - loans outstanding | $ | 67,935 | | $ | 35,493 | | $ | 31,022 | | $ | 92,038 | | $ | (626) |
| · | | Gross credit commitments increased by $55.2 million during the first quarter of 2014, an annualized increase of 18.6% from the prior linked-quarter. |
| · | | The line utilization rate was 38.7% at March 31, 2014, as compared to 37.6% and 37.9% at December 31, 2013 and March 31, 2013, respectively. Line utilization increased as advances outpaced the increase in credit commitments. |
Deposits and Customer Repurchase Agreements (Customer Funding)
| · | | Customer funding of $2.4 billion at March 31, 2014 decreased by $5.3 million on a linked-quarter basis. From March 31, 2013, Customer Funding increased $222.3 million. |
| · | | Noninterest-bearing demand (NIB) accounts decreased $24.6 million on a linked-quarter basis, but increased by $102.7 million from March 31, 2013. The percentage of NIB to total deposits was 40.3% at March 31, 2014. |
| · | | The decrease in customer repurchase agreements on a linked-quarter basis is the result of a concerted effort to transition clients out of our collateralized sweep product into other deposit categories. |
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| Quarter ended (unaudited) | | | 1Q14 change vs. |
(in thousands) | 1Q14 | | 4Q13 | | 1Q13 | | 4Q13 | | 1Q13 |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | | |
Money market | $ | 590,596 | | $ | 572,175 | | $ | 600,580 | | $ | 18,421 | 3.2% | | $ | (9,984) | (1.7)% |
Interest-bearing demand and NOW | | 542,304 | | | 487,037 | | | 363,709 | | | 55,267 | 11.3% | | | 178,595 | 49.1% |
Savings | | 13,979 | | | 12,803 | | | 11,429 | | | 1,176 | 9.2% | | | 2,550 | 22.3% |
Certificates of deposits under $100 | | 26,965 | | | 27,726 | | | 29,889 | | | (761) | (2.7)% | | | (2,924) | (9.8)% |
Certificates of deposits $100 and over | | 130,226 | | | 134,418 | | | 143,529 | | | (4,192) | (3.1)% | | | (13,303) | (9.3)% |
Reciprocal CDARS | | 81,589 | | | 83,173 | | | 81,631 | | | (1,584) | (1.9)% | | | (42) | (0.1)% |
Total interest-bearing deposits | | 1,385,659 | | | 1,317,332 | | | 1,230,767 | | | 68,327 | 5.2% | | | 154,892 | 12.6% |
Noninterest-bearing demand deposits | | 937,077 | | | 961,705 | | | 834,337 | | | (24,628) | (2.6)% | | | 102,740 | 12.3% |
Customer repurchase agreements | | 89,521 | | | 138,494 | | | 124,882 | | | (48,973) | (35.4)% | | | (35,361) | (28.3)% |
Total deposits and customer repurchase agreements | $ | 2,412,257 | | $ | 2,417,531 | | $ | 2,189,986 | | $ | (5,274) | (0.2)% | | $ | 222,271 | 10.1% |
Allowance for Loan and Credit Losses (Allowance) and Credit Quality
| · | | Nonperforming assets were $15.5 million at March 31, 2014, compared to $39.2 million at March 31, 2013 and $19.0 million at December 31, 2013. |
| · | | Classified loans decreased from the linked- and prior-year quarter ends by 17.6% and 43.4%, respectively. |
| · | | Due to an improvement in credit quality metrics, a negative provision for loan losses of $1.9 million was recorded during the first quarter of 2014. |
| · | | The coverage of Allowance to nonperforming loans increased to 335.3% at March 31, 2014, from 145.6% at March 31, 2013 and 265.8% at December 31, 2013. |
| · | | The Allowance decreased to $35.6 million at March 31, 2014 from $44.9 million at March 31, 2013. |
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| Quarter ended (unaudited) |
(in thousands) | 1Q14 | | 4Q13 | | 1Q13 |
ALLOWANCE FOR LOAN AND CREDIT LOSSES | | | | | | | | |
Beginning allowance for loan losses | $ | 37,050 | | $ | 41,810 | | $ | 46,866 |
Provision for loan losses | | (1,888) | | | (4,595) | | | (1,590) |
Net recovery (charge-off) | | 441 | | | (165) | | | (402) |
Ending allowance for loan losses | $ | 35,603 | | $ | 37,050 | | $ | 44,874 |
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CREDIT QUALITY | | | | | | | | |
Nonaccrual loans | $ | 10,618 | | $ | 13,921 | | $ | 30,420 |
Loans 90 days or more past due and accruing interest | | - | | | 19 | | | 407 |
Total nonperforming loans | | 10,618 | | | 13,940 | | | 30,827 |
OREO and repossessed assets | | 4,911 | | | 5,097 | | | 8,420 |
Total nonperforming assets | $ | 15,529 | | $ | 19,037 | | $ | 39,247 |
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Performing renegotiated loans | $ | 30,290 | | $ | 29,683 | | $ | 31,619 |
Classified loans | $ | 38,278 | | $ | 46,476 | | $ | 67,677 |
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ASSET QUALITY MEASURES | | | | | | | | |
Nonperforming assets to total assets | | 0.54% | | | 0.68% | | | 1.50% |
Nonperforming loans to total loans | | 0.49% | | | 0.67% | | | 1.60% |
Nonperforming loans and OREO to total loans and OREO | | 0.72% | | | 0.91% | | | 2.03% |
Allowance for loan and credit losses to total loans | | 1.65% | | | 1.78% | | | 2.33% |
Allowance for loan and credit losses to nonperforming loans | | 335.31% | | | 265.78% | | | 145.57% |
Shareholders’ Equity
| · | | Total shareholders’ equity increased $6.4 million from December 31, 2013, to $287.5 million at March 31, 2014. |
| · | | The tangible common equity to tangible assets ratio increased to 8.0% at March 31, 2014. |
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| Quarter ended (unaudited) |
(in thousands, except per share amounts) | 1Q14 | | 4Q13 | | 1Q13 |
EQUITY MEASURES | | | | | | | | |
Common shareholders' equity | $ | 230,182 | | $ | 223,747 | | $ | 206,179 |
Total shareholders' equity | | 287,520 | | | 281,085 | | | 263,517 |
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Common shares outstanding at period end | | 40,622 | | | 40,368 | | | 40,197 |
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Book value per common share | $ | 5.67 | | $ | 5.54 | | $ | 5.13 |
Tangible book value per common share * | $ | 5.60 | | $ | 5.47 | | $ | 5.05 |
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Tangible common equity to tangible assets * | | 7.98% | | | 7.90% | | | 7.75% |
Tangible equity to tangible assets * | | 10.00% | | | 9.95% | | | 9.94% |
Tier 1 capital ratio | | ** | | | 14.50% | | | 14.72% |
Total-risk based capital ratio | | ** | | | 15.75% | | | 16.93% |
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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 $25.8 million for the first quarter of 2014, an increase of $0.2 million from the prior linked-quarter. |
| · | | The net interest margin expanded by 11 basis points on a linked-quarter basis to 3.90%. |
| · | | Average earning assets of $2.7 billion increased $4.5 million on a linked-quarter basis. |
| o | | From the fourth quarter of 2013, average loans increased $60.0 million while average federal funds sold, interest-earning deposits and investments decreased $55.5 million. |
| · | | The yield on average earning assets increased nine basis points to 4.16% on a linked-quarter basis, primarily due to the shift in earning asset mix out of cash and investments into loans. |
| · | | The rate paid on average interest-bearing liabilities was relatively stable from the linked-quarter at 0.57%. |
Noninterest Income
| · | | Recurring fee-based sources - deposit services charges, insurance revenue and investment advisory income - recognized increases over the prior-linked quarter, as well as over the prior-year quarter. |
| · | | Progress growing recurring revenues was offset by investment banking revenues, which are transactional by nature and were weak in the first quarter of 2014. |
| · | | The decrease in other income is primarily attributed to a loss recognized on an equity method investment of $1.3 million before taxes. |
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| Quarter ended (unaudited) | | | 1Q14 change vs. |
(in thousands) | 1Q14 | | 4Q13 | | 1Q13 | | 4Q13 | | 1Q13 |
Noninterest income: | | | | | | | | | | | | | | | | |
Deposit service charges | $ | 1,376 | | $ | 1,276 | | $ | 1,328 | | $ | 100 | 7.8% | | $ | 48 | 3.6% |
Investment advisory income | | 1,422 | | | 1,364 | | | 1,112 | | | 58 | 4.3% | | | 310 | 27.9% |
Insurance income | | 2,762 | | | 2,617 | | | 2,510 | | | 145 | 5.5% | | | 252 | 10.0% |
Investment banking income | | 187 | | | 971 | | | 66 | | | (784) | (80.7)% | | | 121 | 183.3% |
Other income | | (66) | | | 2,024 | | | 1,460 | | | (2,090) | (103.3)% | | | (1,526) | (104.5)% |
Total noninterest income | $ | 5,681 | | $ | 8,252 | | $ | 6,476 | | $ | (2,571) | (31.2)% | | $ | (795) | (12.3)% |
Operating Expenses
| · | | The increase in compensation related expense from the prior-year quarter is attributed to annual merit raises effective after the first quarter of 2013, as well as the recruitment of new personnel, including those related to the expansion into two new markets in Colorado (Fort Collins and Colorado Springs), and the launch of CoBiz Private Bank. |
| o | | Total full-time equivalent employees at March 31, 2014 were 527, as compared to 500 at March 31, 2013. |
| · | | In the first quarter of 2014 and 2013, the Company reported modest gains on its OREO and repossessed asset portfolio. During the fourth quarter of 2013, the Company recognized a net loss on OREO, repossessed and other assets of $2.1 million. The loss was attributed to a valuation adjustment on the Company’s single largest OREO property that was reappraised in the fourth quarter of 2013. The carrying value was written down from $5.4 million to $3.3 million. |
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| Quarter ended (unaudited) | | | 1Q14 change vs. |
(in thousands) | 1Q14 | | 4Q13 | | 1Q13 | | 4Q13 | | 1Q13 |
Noninterest expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | $ | 15,836 | | $ | 16,224 | | $ | 14,484 | | $ | (388) | (2.4)% | | $ | 1,352 | 9.3% |
Stock-based compensation expense | | 1,014 | | | 551 | | | 748 | | | 463 | 84.0% | | | 266 | 35.6% |
Occupancy expenses, premises and equipment | | 3,204 | | | 3,514 | | | 3,304 | | | (310) | (8.8)% | | | (100) | (3.0)% |
Amortization of intangibles | | 151 | | | 151 | | | 200 | | | - | 0.0% | | | (49) | (24.5)% |
Other operating expenses | | 4,126 | | | 4,077 | | | 3,926 | | | 49 | 1.2% | | | 200 | 5.1% |
(Gain) loss on OREO, repossessed assets and other | | (223) | | | 2,100 | | | (70) | | | (2,323) | (110.6)% | | | (153) | (218.6)% |
(Gain) loss on investment securities | | 39 | | | 22 | | | (11) | | | 17 | 77.3% | | | 50 | 454.5% |
Total noninterest expense | $ | 24,147 | | $ | 26,639 | | $ | 22,581 | | $ | (2,492) | (9.4)% | | $ | 1,566 | 6.9% |
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Thursday, April 24, 2014, at 9:00 am MST with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=98669 or by telephone at 877.493.9121, (conference ID # 19470645). 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 $2.9 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. |
March 31, 2014 |
(unaudited) |
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| | | | | | | Three months ended March 31, |
(in thousands, except per share amounts) | | | | | | | 2014 | | 2013 |
INCOME STATEMENT DATA | | | | | | | | | | | |
Interest income | | | | | | | $ | 26,991 | | $ | 26,052 |
Interest expense | | | | | | | | 2,086 | | | 2,867 |
NET INTEREST INCOME BEFORE PROVISION | | | | | | | | 24,905 | | | 23,185 |
Provision for loan losses | | | | | | | | (1,888) | | | (1,590) |
NET INTEREST INCOME AFTER PROVISION | | | | | | | | 26,793 | | | 24,775 |
Noninterest income | | | | | | | | 5,681 | | | 6,476 |
Noninterest expense | | | | | | | | 24,147 | | | 22,581 |
INCOME BEFORE INCOME TAXES | | | | | | | | 8,327 | | | 8,670 |
Provision for income taxes | | | | | | | | 2,810 | | | 2,794 |
NET INCOME FROM CONTINUING OPERATIONS | | | | | | | | 5,517 | | | 5,876 |
Income from discontinued operations, net of tax | | | | | | | | - | | | 173 |
NET INCOME | | | | | | | $ | 5,517 | | $ | 6,049 |
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Preferred stock dividends | | | | | | | | (143) | | | (514) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | | | | | | $ | 5,374 | | $ | 5,535 |
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EARNINGS PER COMMON SHARE | | | | | | | | | | | |
BASIC | | | | | | | $ | 0.13 | | $ | 0.14 |
DILUTED | | | | | | | $ | 0.13 | | $ | 0.14 |
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EQUITY MEASURES | | | | | | | | | | | |
Common shares outstanding at period end (in thousands) | | | | | | 40,622 | | | 40,197 |
Book value per common share | | | | | | | $ | 5.67 | | $ | 5.13 |
Tangible book value per common share * | | | | | | | $ | 5.60 | | $ | 5.05 |
Tangible common equity to tangible assets * | | | | | | | | 7.98% | | | 7.75% |
Tangible equity to tangible assets * | | | | | | | | 10.00% | | | 9.94% |
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* See accompanying Reconciliation of Non-GAAP Measures to GAAP | | | | | | |
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PERIOD END BALANCES | | | | | | | | | | | |
Total assets | | | | | | | $ | 2,852,782 | | $ | 2,620,512 |
Investments | | | | | | | | 547,211 | | | 559,607 |
Loans | | | | | | | | 2,152,294 | | | 1,925,806 |
Intangible assets | | | | | | | | 2,647 | | | 3,373 |
Deposits | | | | | | | | 2,322,736 | | | 2,065,104 |
Subordinated debentures | | | | | | | | 72,166 | | | 93,150 |
Common shareholders' equity | | | | | | | | 230,182 | | | 206,179 |
Total shareholders' equity | | | | | | | | 287,520 | | | 263,517 |
Interest-earning assets | | | | | | | | 2,713,376 | | | 2,494,674 |
Interest-bearing liabilities | | | | | | | | 1,607,347 | | | 1,487,799 |
| | | | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | | | |
Average assets | | | | | | | $ | 2,797,695 | | $ | 2,616,170 |
Average investments | | | | | | | | 551,263 | | | 563,461 |
Average loans | | | | | | | | 2,108,563 | | | 1,914,542 |
Average deposits | | | | | | | | 2,276,814 | | | 2,060,274 |
Average subordinated debentures | | | | | | | | 72,166 | | | 93,150 |
Average shareholders' equity | | | | | | | | 284,527 | | | 260,030 |
Average interest-earning assets | | | | | | | | 2,677,847 | | | 2,494,741 |
Average interest-bearing liabilities | | | | | | | | 1,484,532 | | | 1,494,590 |
| | | | | | | | | | | |
| | | | | | | | | | | |
|
CoBiz Financial Inc. |
March 31, 2014 |
(unaudited) |
| | | | | | | | | | | |
| | | | | | | Three months ended March 31, |
(in thousands) | | | | | | | | 2014 | | | 2013 |
PROFITABILITY MEASURES | | | | | | | | | | | |
Net interest margin | | | | | | | | 3.90% | | | 3.87% |
Efficiency ratio - tax equivalent | | | | | | | | 77.39% | | | 74.28% |
Return on average assets | | | | | | | | 0.80% | | | 0.94% |
Return on average shareholders' equity | | | | | | | | 7.86% | | | 9.43% |
Noninterest income as a percentage of operating revenues | | | | | | | | 18.57% | | | 21.83% |
| | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | |
Nonperforming loans | | | | | | | | | | | |
Nonaccrual loans | | | | | | | $ | 10,618 | | $ | 30,420 |
Loans 90 days or more past due and accruing interest | | | | | | | | - | | | 407 |
Total nonperforming loans | | | | | | | | 10,618 | | | 30,827 |
OREO & repossessed assets | | | | | | | | 4,911 | | | 8,420 |
Total nonperforming assets | | | | | | | $ | 15,529 | | $ | 39,247 |
| | | | | | | | | | | |
Performing renegotiated loans | | | | | | | $ | 30,290 | | $ | 31,619 |
Classified loans | | | | | | | $ | 38,278 | | $ | 67,677 |
| | | | | | | | | | | |
Charge-offs | | | | | | | $ | (200) | | $ | (822) |
Recoveries | | | | | | | | 641 | | | 420 |
Net recoveries (charge-offs) | | | | | | | $ | 441 | | $ | (402) |
| | | | | | | | | | | |
Nonperforming assets to total assets | | | | | | | | 0.54% | | | 1.50% |
Nonperforming loans to total loans | | | | | | | | 0.49% | | | 1.60% |
Nonperforming loans and OREO to total loans and OREO | | | | | | | | 0.72% | | | 2.03% |
Allowance for loan and credit losses to total loans | | | | | | | | 1.65% | | | 2.33% |
Allowance for loan and credit losses to nonperforming loans | | | | | | | | 335.31% | | | 145.57% |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | Total | | NPAs as a |
NONPERFORMING ASSETS BY MARKET | Colorado | | Arizona | | Total | | in Category | | % |
Commercial | $ | 988 | | $ | 714 | | $ | 1,702 | | $ | 860,060 | | 0.20% |
Real estate - mortgage | | 549 | | | 4,580 | | | 5,129 | | | 926,047 | | 0.55% |
Construction & land | | 3,681 | | | - | | | 3,681 | | | 136,018 | | 2.71% |
Consumer | | 106 | | | - | | | 106 | | | 183,156 | | 0.06% |
Other loans | | - | | | - | | | - | | | 47,013 | | 0.00% |
OREO & repossessed assets | | 3,583 | | | 1,328 | | | 4,911 | | | 4,911 | | - |
NPAs | $ | 8,907 | | $ | 6,622 | | $ | 15,529 | | $ | 2,157,205 | | 0.72% |
| | | | | | | | | | | | | |
Total loans | $ | 1,600,759 | | $ | 551,535 | | $ | 2,152,294 | | | | | |
Total loans and OREO | | 1,604,342 | | | 552,863 | | | 2,157,205 | | | | | |
Nonperforming loans to loans | | 0.33% | | | 0.96% | | | 0.49% | | | | | |
Nonperforming loans and OREO to total loans and OREO | | 0.56% | | | 1.20% | | | 0.72% | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CoBiz Financial Inc. |
March 31, 2014 |
(unaudited) |
| | | | | | | | | | | | | | |
| Three months ended |
| March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
(in thousands, except per share amounts) | 2014 | | 2013 | | 2013 | | 2013 | | 2013 |
Interest income | $ | 26,991 | | $ | 26,954 | | $ | 26,961 | | $ | 26,160 | | $ | 26,052 |
Interest expense | | 2,086 | | | 2,178 | | | 2,586 | | | 2,795 | | | 2,867 |
Net interest income before provision | | 24,905 | | | 24,776 | | | 24,375 | | | 23,365 | | | 23,185 |
Provision for loan losses | | (1,888) | | | (4,595) | | | (1,554) | | | (1,065) | | | (1,590) |
Net interest income after provision | | 26,793 | | | 29,371 | | | 25,929 | | | 24,430 | | | 24,775 |
Noninterest income: | | | | | | | | | | | | | | |
Deposit service charges | $ | 1,376 | | $ | 1,276 | | $ | 1,359 | | $ | 1,352 | | $ | 1,328 |
Investment advisory income | | 1,422 | | | 1,364 | | | 1,306 | | | 1,295 | | | 1,112 |
Insurance income | | 2,762 | | | 2,617 | | | 2,862 | | | 3,210 | | | 2,510 |
Investment banking income | | 187 | | | 971 | | | 689 | | | 576 | | | 66 |
Other income | | (66) | | | 2,024 | | | 1,543 | | | 1,992 | | | 1,460 |
Total noninterest income | | 5,681 | | | 8,252 | | | 7,759 | | | 8,425 | | | 6,476 |
Noninterest expense: | | | | | | | | | | | | | | |
Salaries and employee benefits | $ | 15,836 | | $ | 16,224 | | $ | 16,373 | | $ | 14,720 | | $ | 14,484 |
Stock-based compensation expense | | 1,014 | | | 551 | | | 694 | | | 746 | | | 748 |
Occupancy expenses, premises and equipment | | 3,204 | | | 3,514 | | | 3,289 | | | 3,155 | | | 3,304 |
Amortization of intangibles | | 151 | | | 151 | | | 152 | | | 159 | | | 200 |
Other operating expenses | | 4,126 | | | 4,077 | | | 3,625 | | | 3,853 | | | 3,926 |
Net (gain) loss on securities, other assets and OREO | | (184) | | | 2,122 | | | (319) | | | (1,039) | | | (81) |
Total noninterest expense | | 24,147 | | | 26,639 | | | 23,814 | | | 21,594 | | | 22,581 |
Net income before income taxes | | 8,327 | | | 10,984 | | | 9,874 | | | 11,261 | | | 8,670 |
Provision for income taxes | | 2,810 | | | 3,709 | | | 2,849 | | | 3,999 | | | 2,794 |
Net income from continuing operations | | 5,517 | | | 7,275 | | | 7,025 | | | 7,262 | | | 5,876 |
Income from discontinued operations, net of tax | | - | | | - | | | - | | | - | | | 173 |
Net income | $ | 5,517 | | $ | 7,275 | | $ | 7,025 | | $ | 7,262 | | $ | 6,049 |
| | | | | | | | | | | | | | |
Preferred stock dividends | | (143) | | | (143) | | | (144) | | | (143) | | | (514) |
Net income available to common shareholders | $ | 5,374 | | $ | 7,132 | | $ | 6,881 | | $ | 7,119 | | $ | 5,535 |
| | | | | | | | | | | | | | |
Earnings per common share | | | | | | | | | | | | | | |
Basic | $ | 0.13 | | $ | 0.18 | | $ | 0.17 | | $ | 0.18 | | $ | 0.14 |
Diluted | $ | 0.13 | | $ | 0.18 | | $ | 0.17 | | $ | 0.18 | | $ | 0.14 |
| | | | | | | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | | | | | | |
Net interest margin | | 3.90% | | | 3.79% | | | 3.80% | | | 3.78% | | | 3.87% |
Efficiency ratio - tax equivalent | | 77.39% | | | 72.57% | | | 73.41% | | | 69.77% | | | 74.28% |
Return on average assets | | 0.80% | | | 1.03% | | | 1.02% | | | 1.09% | | | 0.94% |
Return on average shareholders' equity | | 7.86% | | | 10.42% | | | 10.34% | | | 10.93% | | | 9.43% |
Noninterest income as a percentage of operating revenues | | 18.57% | | | 24.98% | | | 24.15% | | | 26.50% | | | 21.83% |
| | | | | | | | | | | | | | |
EQUITY MEASURES | | | | | | | | | | | | | | |
Common shares outstanding at period end (in thousands) | | 40,622 | | | 40,368 | | | 40,300 | | | 40,282 | | | 40,197 |
Diluted weighted average common shares outstanding (in thousands) | | 39,979 | | | 39,831 | | | 39,738 | | | 39,580 | | | 39,362 |
Book value per common share | $ | 5.67 | | $ | 5.54 | | $ | 5.35 | | $ | 5.20 | | $ | 5.13 |
Tangible book value per common share * | $ | 5.60 | | $ | 5.47 | | $ | 5.28 | | $ | 5.12 | | $ | 5.05 |
| | | | | | | | | | | | | | |
Tangible common equity to tangible assets * | | 7.98% | | | 7.90% | | | 7.58% | | | 7.54% | | | 7.75% |
Tangible equity to tangible assets * | | 10.00% | | | 9.95% | | | 9.62% | | | 9.63% | | | 9.94% |
Tier 1 capital ratio | | ** | | | 14.50% | | | 14.50% | | | 14.52% | | | 14.72% |
Total risk based capital ratio | | ** | | | 15.75% | | | 15.76% | | | 16.70% | | | 16.93% |
| | | | | | | | | | | | | | |
* See accompanying Reconciliation of Non-GAAP Measures to GAAP | | | | | | | | | |
** Ratios unavailable at the time of release. | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
CoBiz Financial Inc. |
March 31, 2014 |
(unaudited) |
| | | | | | | | | | | | | | |
| At |
| March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
(in thousands) | 2014 | | 2013 | | 2013 | | 2013 | | 2013 |
PERIOD END BALANCES | | | | | | | | | | | | | | |
Total assets | $ | 2,852,782 | | $ | 2,800,691 | | $ | 2,807,955 | | $ | 2,738,749 | | $ | 2,620,512 |
Investments | | 547,211 | | | 556,796 | | | 582,889 | | | 576,045 | | | 559,607 |
Loans | | 2,152,294 | | | 2,084,359 | | | 2,048,866 | | | 2,017,844 | | | 1,925,806 |
Intangible assets | | 2,647 | | | 2,798 | | | 2,960 | | | 3,112 | | | 3,373 |
Deposits | | 2,322,736 | | | 2,279,037 | | | 2,269,193 | | | 2,035,971 | | | 2,065,104 |
Subordinated debentures | | 72,166 | | | 72,166 | | | 72,166 | | | 93,150 | | | 93,150 |
Common shareholders' equity | | 230,182 | | | 223,747 | | | 215,599 | | | 209,341 | | | 206,179 |
Total shareholders' equity | | 287,520 | | | 281,085 | | | 272,937 | | | 266,679 | | | 263,517 |
Interest-earning assets | | 2,713,376 | | | 2,663,823 | | | 2,667,144 | | | 2,608,065 | | | 2,494,674 |
Interest-bearing liabilities | | 1,607,347 | | | 1,527,992 | | | 1,515,360 | | | 1,552,129 | | | 1,487,799 |
| | | | | | | | | | | | | | |
LOANS | | | | | | | | | | | | | | |
Commercial | $ | 860,060 | | $ | 824,453 | | $ | 815,424 | | $ | 813,186 | | $ | 742,239 |
Real estate - mortgage | | 926,047 | | | 900,864 | | | 890,492 | | | 884,579 | | | 889,171 |
Construction & land | | 136,018 | | | 127,952 | | | 105,146 | | | 95,127 | | | 84,400 |
Consumer | | 183,156 | | | 181,056 | | | 180,243 | | | 168,606 | | | 157,973 |
Other | | 47,013 | | | 50,034 | | | 57,561 | | | 56,346 | | | 52,023 |
Gross loans | | 2,152,294 | | | 2,084,359 | | | 2,048,866 | | | 2,017,844 | | | 1,925,806 |
Less allowance for loan losses | | (35,603) | | | (37,050) | | | (41,810) | | | (43,232) | | | (44,874) |
Total net loans | $ | 2,116,691 | | $ | 2,047,309 | | $ | 2,007,056 | | $ | 1,974,612 | | $ | 1,880,932 |
| | | | | | | | | | | | | | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | | |
Money market | $ | 590,596 | | $ | 572,175 | | $ | 605,073 | | $ | 561,079 | | $ | 600,580 |
Interest-bearing demand and NOW | | 542,304 | | | 487,037 | | | 402,572 | | | 337,294 | | | 363,709 |
Savings | | 13,979 | | | 12,803 | | | 11,272 | | | 11,612 | | | 11,429 |
Certificates of deposits under $100 | | 26,965 | | | 27,726 | | | 28,098 | | | 29,359 | | | 29,889 |
Certificates of deposits $100 and over | | 130,226 | | | 134,418 | | | 133,243 | | | 136,077 | | | 143,529 |
Reciprocal CDARS | | 81,589 | | | 83,173 | | | 98,748 | | | 95,157 | | | 81,631 |
Total interest-bearing deposits | | 1,385,659 | | | 1,317,332 | | | 1,279,006 | | | 1,170,578 | | | 1,230,767 |
Noninterest-bearing demand deposits | | 937,077 | | | 961,705 | | | 990,187 | | | 865,393 | | | 834,337 |
Customer repurchase agreements | | 89,521 | | | 138,494 | | | 164,188 | | | 133,402 | | | 124,882 |
Total deposits and customer repurchase agreements | $ | 2,412,257 | | $ | 2,417,531 | | $ | 2,433,381 | | $ | 2,169,373 | | $ | 2,189,986 |
| | | | | | | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | | | | | | |
Average assets | $ | 2,797,695 | | $ | 2,792,837 | | $ | 2,734,624 | | $ | 2,662,914 | | $ | 2,616,170 |
Average investments | | 551,263 | | | 573,544 | | | 573,375 | | | 558,464 | | | 563,461 |
Average loans | | 2,108,563 | | | 2,048,592 | | | 2,031,282 | | | 1,968,674 | | | 1,914,542 |
Average deposits | | 2,276,814 | | | 2,253,875 | | | 2,129,108 | | | 2,030,209 | | | 2,060,274 |
Average subordinated debentures | | 72,166 | | | 72,166 | | | 82,658 | | | 93,150 | | | 93,150 |
Average shareholders' equity | | 284,527 | | | 277,118 | | | 269,494 | | | 266,526 | | | 260,030 |
Average interest-earning assets | | 2,677,847 | | | 2,673,332 | | | 2,621,135 | | | 2,547,056 | | | 2,494,741 |
Average interest-bearing liabilities | | 1,484,532 | | | 1,525,400 | | | 1,536,699 | | | 1,535,232 | | | 1,494,590 |
| | | | | | | | | | | | | | |
ALLOWANCE FOR LOAN AND CREDIT LOSSES | | | | | | | | | | | | | | |
Beginning allowance for loan losses | $ | 37,050 | | $ | 41,810 | | $ | 43,232 | | $ | 44,874 | | $ | 46,866 |
Provision for loan losses | | (1,888) | | | (4,595) | | | (1,554) | | | (1,065) | | | (1,590) |
Net recovery (charge-off) | | 441 | | | (165) | | | 132 | | | (577) | | | (402) |
Ending allowance for loan losses | $ | 35,603 | | $ | 37,050 | | $ | 41,810 | | $ | 43,232 | | $ | 44,874 |
| | | | | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | | | | |
Nonperforming loans | | | | | | | | | | | | | | |
Nonaccrual loans | $ | 10,618 | | $ | 13,921 | | $ | 18,511 | | $ | 25,634 | | $ | 30,420 |
Loans 90 days or more past due and accruing interest | | - | | | 19 | | | - | | | - | | | 407 |
Total nonperforming loans | | 10,618 | | | 13,940 | | | 18,511 | | | 25,634 | | | 30,827 |
OREO and repossessed assets | | 4,911 | | | 5,097 | | | 6,960 | | | 7,185 | | | 8,420 |
Total nonperforming assets | $ | 15,529 | | $ | 19,037 | | $ | 25,471 | | $ | 32,819 | | $ | 39,247 |
| | | | | | | | | | | | | | |
Performing renegotiated loans | $ | 30,290 | | $ | 29,683 | | $ | 28,814 | | $ | 29,623 | | $ | 31,619 |
Classified loans | $ | 38,278 | | $ | 46,476 | | $ | 48,735 | | $ | 64,300 | | $ | 67,677 |
| | | | | | | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | | | | | | |
Nonperforming assets to total assets | | 0.54% | | | 0.68% | | | 0.91% | | | 1.20% | | | 1.50% |
Nonperforming loans to total loans | | 0.49% | | | 0.67% | | | 0.90% | | | 1.27% | | | 1.60% |
Nonperforming loans and OREO to total loans and OREO | | 0.72% | | | 0.91% | | | 1.24% | | | 1.62% | | | 2.03% |
Allowance for loan and credit losses to total loans | | 1.65% | | | 1.78% | | | 2.04% | | | 2.14% | | | 2.33% |
Allowance for loan and credit losses to nonperforming loans | | 335.31% | | | 265.78% | | | 225.87% | | | 168.65% | | | 145.57% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
CoBiz Financial Inc. |
March 31, 2014 |
(unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| For the three months ended, |
| March 31, 2014 | | December 31, 2013 | | March 31, 2013 |
| | | | Interest | Average | | | | | Interest | Average | | | | | Interest | Average |
| Average | | earned | yield | | Average | | earned | yield | | Average | | earned | yield |
(in thousands) | balance | | or paid | or cost | | balance | | or paid | or cost | | balance | | or paid | or cost |
Assets | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other | $ | 18,021 | | $ | 24 | 0.53% | | $ | 51,196 | | $ | 44 | 0.34% | | $ | 16,738 | | $ | 27 | 0.65% |
Investment securities | | 551,263 | | | 4,258 | 3.09% | | | 573,544 | | | 4,375 | 3.05% | | | 563,461 | | | 4,297 | 3.05% |
Loans | | 2,108,563 | | | 23,562 | 4.47% | | | 2,048,592 | | | 23,292 | 4.45% | | | 1,914,542 | | | 22,340 | 4.67% |
Total interest-earning assets | $ | 2,677,847 | | $ | 27,844 | 4.16% | | $ | 2,673,332 | | $ | 27,711 | 4.07% | | $ | 2,494,741 | | $ | 26,664 | 4.28% |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-earning assets | | 119,848 | | | | | | | 119,505 | | | | | | | 121,429 | | | | |
Total assets | $ | 2,797,695 | | | | | | $ | 2,792,837 | | | | | | $ | 2,616,170 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | |
Money market | $ | 583,171 | | $ | 464 | 0.32% | | $ | 608,818 | | $ | 532 | 0.35% | | $ | 605,903 | | $ | 678 | 0.45% |
Interest-bearing demand and NOW | | 429,939 | | | 245 | 0.23% | | | 418,181 | | | 227 | 0.22% | | | 359,218 | | | 235 | 0.27% |
Savings | | 12,595 | | | 2 | 0.06% | | | 11,712 | | | 2 | 0.07% | | | 18,488 | | | 3 | 0.07% |
Certificates of deposit | | | | | | | | | | | | | | | | | | | | |
Reciprocal | | 83,073 | | | 68 | 0.33% | | | 89,793 | | | 77 | 0.34% | | | 81,957 | | | 94 | 0.47% |
Under $100 | | 27,589 | | | 30 | 0.44% | | | 27,825 | | | 32 | 0.46% | | | 29,764 | | | 40 | 0.55% |
$100 and over | | 136,689 | | | 178 | 0.53% | | | 133,596 | | | 184 | 0.55% | | | 144,534 | | | 239 | 0.67% |
Total interest-bearing deposits | $ | 1,273,056 | | $ | 987 | 0.31% | | $ | 1,289,925 | | $ | 1,054 | 0.32% | | $ | 1,239,864 | | $ | 1,289 | 0.42% |
Other borrowings | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 104,534 | | | 63 | 0.24% | | | 163,284 | | | 85 | 0.20% | | | 144,737 | | | 84 | 0.23% |
Other short-term borrowings | | 34,776 | | | 20 | 0.23% | | | 25 | | | - | 0.00% | | | 16,839 | | | 10 | 0.24% |
Long term-debt | | 72,166 | | | 1,016 | 5.63% | | | 72,166 | | | 1,039 | 5.63% | | | 93,150 | | | 1,484 | 6.37% |
Total interest-bearing liabilities | $ | 1,484,532 | | $ | 2,086 | 0.57% | | $ | 1,525,400 | | $ | 2,178 | 0.56% | | $ | 1,494,590 | | $ | 2,867 | 0.77% |
Noninterest-bearing demand accounts | | 1,003,758 | | | | | | | 963,950 | | | | | | | 820,410 | | | | |
Total deposits and interest-bearing liabilities | | 2,488,290 | | | | | | | 2,489,350 | | | | | | | 2,315,000 | | | | |
Other noninterest-bearing liabilities | | 24,878 | | | | | | | 26,369 | | | | | | | 41,140 | | | | |
Total liabilities | | 2,513,168 | | | | | | | 2,515,719 | | | | | | | 2,356,140 | | | | |
Total equity | | 284,527 | | | | | | | 277,118 | | | | | | | 260,030 | | | | |
Total liabilities and equity | $ | 2,797,695 | | | | | | $ | 2,792,837 | | | | | | $ | 2,616,170 | | | | |
Net interest income - taxable equivalent | | | | $ | 25,758 | | | | | | $ | 25,533 | | | | | | $ | 23,797 | |
Net interest spread | | | | | | 3.59% | | | | | | | 3.51% | | | | | | | 3.51% |
Net interest margin | | | | | | 3.90% | | | | | | | 3.79% | | | | | | | 3.87% |
Ratio of average interest-earning assets to | | | | | | | | | | | | | | | | | | | | |
average interest-bearing liabilities | | 180.38% | | | | | | | 175.25% | | | | | | | 166.92% | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
CoBiz Financial Inc. |
March 31, 2014 |
(unaudited) |
| | | | | | | | | | | | | | | | |
Reconciliation of Non-GAAP Measures to GAAP | | | | | | | | | | | | | | | |
(in thousands, except per share amounts) | | | | | | | | | | | | | | | |
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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.
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The following tables include non-GAAP financial measures related to tangible equity, tangible common equity, tangible assets and adjusted earnings per share (EPS). The table below has been adjusted to exclude intangible assets and preferred stock. |
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| | | At |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | | 2014 | | 2013 | | 2013 | | 2013 | | 2013 |
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| Shareholders' equity as reported - GAAP | | $ | 287,520 | | $ | 281,085 | | $ | 272,937 | | $ | 266,679 | | $ | 263,517 |
| Intangible assets | | | (2,647) | | | (2,798) | | | (2,960) | | | (3,112) | | | (3,373) |
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A | Tangible equity - non-GAAP | | | 284,873 | | | 278,287 | | | 269,977 | | | 263,567 | | | 260,144 |
| Preferred stock | | | (57,338) | | | (57,338) | | | (57,338) | | | (57,338) | | | (57,338) |
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B | Tangible common equity - non-GAAP | | $ | 227,535 | | $ | 220,949 | | $ | 212,639 | | $ | 206,229 | | $ | 202,806 |
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| Total assets as reported - GAAP | | $ | 2,852,782 | | $ | 2,800,691 | | $ | 2,807,955 | | $ | 2,738,749 | | $ | 2,620,512 |
| Intangible assets | | | (2,647) | | | (2,798) | | | (2,960) | | | (3,112) | | | (3,373) |
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C | Total tangible assets - non-GAAP | | $ | 2,850,135 | | $ | 2,797,893 | | $ | 2,804,995 | | $ | 2,735,637 | | $ | 2,617,139 |
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D | Common shares outstanding | | | 40,622 | | | 40,368 | | | 40,300 | | | 40,282 | | | 40,197 |
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B / C | Tangible common equity to tangible assets - non-GAAP | | | 7.98% | | | 7.90% | | | 7.58% | | | 7.54% | | | 7.75% |
A / C | Tangible equity to tangible assets - non-GAAP | | | 10.00% | | | 9.95% | | | 9.62% | | | 9.63% | | | 9.94% |
B / D | Tangible book value per common share - non-GAAP | | $ | 5.60 | | $ | 5.47 | | $ | 5.28 | | $ | 5.12 | | $ | 5.05 |
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| | | | | | | | | | | | Three months ended |
| | | | | | | | | | | | March 31, 2014 |
| | | | | | | | | | | | Amount | | Diluted EPS |
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| Net income available to common shareholders - GAAP | | | | | | | | | | | $ | 5,374 | | $ | 0.13 |
| Effect of earnings on equity method investments (after tax) - non-GAAP | | | | | | | | | | | $ | (798) | | $ | (0.02) |
