Cobiz Financial (COBZ) 8-K CoBiz Financial Announces Fourth Quarter 2014 Results

Exhibit 99.1

CoBiz Financial Announces Fourth Quarter 2014 Results

Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $3.1 billion in assets, announced net income available to common shareholders of $6.8 million for the fourth quarter of 2014, or $0.17 per diluted common share, as compared to  $7.1 million, or $0.18 per diluted common share,  for the prior-year quarter. For the year ended December 31, 2014, net income available to common shareholders was $28.4 million, or $0.70 per diluted common share, versus $26.7 million, or $0.66 per diluted common share, for the year ended December 31, 2013.

Financial highlights –Fourth quarter 2014

· Loans at December 31, 2014 increased $48.5 million from September 30, 2014, and $321.2 million, or 15.4%, from December 31, 2013.

· Deposits at December 31, 2014 increased $125.9 million from September 30, 2014, and $213.3 million, or 9.4%, from December 31, 2013.

· Net interest income on a tax-equivalent basis (NII) increased $0.4 million from the third quarter of 2014 (linked-quarter), and $3.0 million, or 11.8%, from the prior-year quarter.

· The net interest margin expanded four basis points (0.04%) to 3.94% from the linked-quarter, and 15 basis points (0.15%) from the prior-year quarter.

Financial Summary

	Quarter ended (unaudited)										4Q14 change vs.
(in thousands, except per share amounts)	4Q14			3Q14			4Q13			3Q14				4Q13
Net interest income before provision	$	27,568		$	27,062		$	24,776		$	506	1.9	%	$	2,792	11.3	%
Provision for loan losses		(874)			(452)			(4,595)			(422)	(93.4)	%		3,721	81.0	%
Net interest income after provision		28,442			27,514			29,371			928	3.4	%		(929)	(3.2)	%
Total noninterest income		7,618			9,739			8,252			(2,121)	(21.8)	%		(634)	(7.7)	%
Total noninterest expense		25,538			25,047			26,639			491	2.0	%		(1,101)	(4.1)	%
Net income before income taxes		10,522			12,206			10,984			(1,684)	(13.8)	%		(462)	(4.2)	%
Provision for income taxes		3,540			4,315			3,709			(775)	(18.0)	%		(169)	(4.6)	%
Net income		6,982			7,891			7,275			(909)	(11.5)	%		(293)	(4.0)	%
Preferred stock dividends		(144)			(144)			(143)			-	-	%		(1)	(0.7)	%
Net income available to common shareholders	$	6,838		$	7,747		$	7,132		$	(909)	(11.7)	%	$	(294)	(4.1)	%
Diluted earnings per common share	$	0.17		$	0.19		$	0.18		$	(0.02)	(11.9)	%	$	(0.01)	(6.7)	%
KEY RATIOS
Net interest margin		3.94	%		3.90	%		3.79	%
Efficiency ratio(1)		71.16	%		67.75	%		72.57	%
Return on average assets		0.92	%		1.05	%		1.03	%
Return on average shareholders' equity		9.05	%		10.46	%		10.42	%
Noninterest income as a percentage of operating revenues		21.65	%		26.46	%		24.98	%

1 The efficiency ratio equals noninterest expenses adjusted to exclude gains and losses on OREO, other assets and investments, divided by the sum of tax equivalent net interest income and noninterest income. To calculate tax equivalent net interest income, the interest earned on tax exempt loans and investment securities has been adjusted to reflect the amount that would have been earned had these investments been subject to normal income taxation.

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“I am pleased with the growth we experienced in 2014,” said Chairman and CEO Steve Bangert. “We grew our loan portfolio $321 million, or 15.4%.  I was delighted to see the growth come from both markets, with Arizona contributing $109.8 million of the growth. We also had a very good quarter for deposit generation, with deposits increasing $125.9 million.  We are well positioned for a successful 2015.” 

Loans

· Loans at December 31, 2014 were $2.4 billion, increasing $48.5 million from September 30, 2014.   From December 31, 2013, loans increased $321.2 million, or 15.4%.

· Loans increased $33.8 million and $14.7 million, respectively, for Arizona and Colorado from September 30, 2014. From December 31, 2013, loans increased $109.8 million, or 19.5%, for Arizona and $211.4 million, or 13.9%, for Colorado.

	Quarter ended (unaudited)							4Q14 change vs.
(in thousands)	4Q14		3Q14		4Q13		3Q14				4Q13
LOANS
Commercial	$	977,699	$	962,438	$	824,453	$	15,261	1.6	%	$	153,246	18.6	%
Owner-occupied real estate		422,471		476,279		452,959		(53,808)	(11.3)	%		(30,488)	(6.7)	%
Investor real estate		567,248		487,821		447,905		79,427	16.3	%		119,343	26.6	%
Construction & land		181,864		182,288		127,952		(424)	(0.2)	%		53,912	42.1	%
Consumer		207,955		202,414		181,056		5,541	2.7	%		26,899	14.9	%
Other		48,338		45,829		50,034		2,509	5.5	%		(1,696)	(3.4)	%
Total loans	$	2,405,575	$	2,357,069	$	2,084,359	$	48,506	2.1	%	$	321,216	15.4	%

· New credit advanced of $177.2 million improved over the linked- and prior-year quarters. However, the level of loan paydowns and maturities in the fourth quarter, primarily in the Colorado portfolio, exceeded the linked- and prior-year quarters. 

· In the fourth quarter of 2014, gross credit commitments increased by $84.0 million, or 24.5% annualized, from the linked-quarter. However, advances on lines declined, which reduced the total line utilization rate to 39.1% at December 31, 2014 compared to 42.9% at September 30, 2014.

· Commercial line utilization was 36.2% at December 31, 2014, compared to 39.7% and 37.2%, respectively, at the linked- and prior-year quarter ends.

	Quarter ended (unaudited)
(in thousands)	4Q14		3Q14		2Q14		1Q14		4Q13
Loans - beginning balance	$	2,357,069	$	2,294,644	$	2,152,294	$	2,084,359	$	2,048,866
New credit extended		177,247		146,458		201,805		105,542		158,801
Credit advanced		100,921		106,011		117,203		90,736		79,126
Paydowns & maturities		(228,914)		(189,822)		(175,311)		(128,143)		(201,026)
Gross loan charge-offs		(748)		(222)		(1,347)		(200)		(1,408)
Loans - ending balance	$	2,405,575	$	2,357,069	$	2,294,644	$	2,152,294	$	2,084,359
Net change - loans outstanding	$	48,506	$	62,425	$	142,350	$	67,935	$	35,493

Deposits and Customer Repurchase Agreements (Customer Funding, which excludes brokered CDs)

· Customer Funding at December 31, 2014 increased $99.9 million from the linked-quarter end and $124.7 million from the prior-year quarter end. 

· The decrease in customer repurchase agreements of $88.5 million from the prior-year quarter end is the result of a concerted effort to transition clients out of our collateralized sweep product.

· Noninterest-bearing demand (NIB) accounts increased $71.2 million, or 28.2% annualized, on a linked-quarter basis. The percentage of NIB to total deposits was 43.1% at December 31, 2014.

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	Quarter ended (unaudited)							4Q14 change vs.
(in thousands)	4Q14		3Q14		4Q13		3Q14				4Q13
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	661,519	$	619,377	$	572,175	$	42,142	6.8	%	$	89,344	15.6	%
Interest-bearing demand		531,365		509,352		487,037		22,013	4.3	%		44,328	9.1	%
Savings		15,236		19,091		12,803		(3,855)	(20.2)	%		2,433	19.0	%
Certificates of deposits under $100		24,184		24,971		27,726		(787)	(3.2)	%		(3,542)	(12.8)	%
Certificates of deposits $100 and over		122,216		127,054		134,418		(4,838)	(3.8)	%		(12,202)	(9.1)	%
Reciprocal CDARS		64,607		64,610		83,173		(3)	(0.0)	%		(18,566)	(22.3)	%
Total interest-bearing deposits		1,419,127		1,364,455		1,317,332		54,672	4.0	%		101,795	7.7	%
Noninterest-bearing demand deposits		1,073,164		1,001,921		961,705		71,243	7.1	%		111,459	11.6	%
Customer repurchase agreements		49,976		76,041		138,494		(26,065)	(34.3)	%		(88,518)	(63.9)	%
Total deposits and customer repurchase agreements	$	2,542,267	$	2,442,417	$	2,417,531	$	99,850	4.1	%	$	124,736	5.2	%

Allowance for Loan and Credit Losses (Allowance) and Credit Quality

· Nonperforming assets were $15.0 million at December 31, 2014, compared to $12.0 million at September 30, 2014, and $19.0 million at December 31, 2013. 

· Net charge-offs were negligible for the fourth quarter of 2014 and $0.1 million for the full year 2014. Negative provisions for loan losses of $0.9 million and $4.1 million were recorded during the fourth quarter and full year 2014, respectively.

· The resulting Allowance equated to 1.36% of total loans, and the coverage of Allowance to nonperforming loans was 357.9% at December 31, 2014.

	Quarter ended (unaudited)
(in thousands)	4Q14			3Q14			4Q13
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	33,682		$	33,922		$	41,810
Provision for loan losses		(874)			(452)			(4,595)
Net recovery (charge-off)		(43)			212			(165)
Ending allowance for loan losses	$	32,765		$	33,682		$	37,050
CREDIT QUALITY
Nonaccrual loans	$	8,994		$	8,273		$	13,921
Loans 90 days or more past due and accruing interest		161			-			19
Total nonperforming loans		9,155			8,273			13,940
OREO and repossessed assets		5,819			3,750			5,097
Total nonperforming assets	$	14,974		$	12,023		$	19,037
Performing renegotiated loans	$	27,275		$	29,121		$	29,683
Classified loans	$	36,940		$	36,534		$	46,476
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.49	%		0.40	%		0.68	%
Nonperforming loans to total loans		0.38	%		0.35	%		0.67	%
Nonperforming loans and OREO to total loans and OREO		0.62	%		0.51	%		0.91	%
Allowance for loan and credit losses to total loans		1.36	%		1.43	%		1.78	%
Allowance for loan and credit losses to nonperforming loans		357.89	%		407.13	%		265.78	%

Shareholders’ Equity

· On January 22, 2015, the Board of Directors of the Company declared a quarterly cash dividend of $0.04 per common share. The dividend will be paid on February 9, 2015 to shareholders of record on February 2, 2015.

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	Quarter ended (unaudited)
(in thousands, except per share amounts)	4Q14			3Q14			4Q13
EQUITY MEASURES
Common shareholders' equity	$	251,431		$	245,392		$	223,747
Total shareholders' equity		308,769			302,730			281,085
Common shares outstanding at period end		40,770			40,691			40,368
Book value per common share	$	6.17		$	6.03		$	5.54
Tangible book value per common share *	$	6.11		$	5.96		$	5.47
Tangible common equity to tangible assets *		8.14	%		8.02	%		7.90	%
Tangible equity to tangible assets *		10.01	%		9.92	%		9.95	%
Tier 1 capital ratio		**			14.46	%		14.50	%
Total-risk based capital ratio		**			15.71	%		15.75	%

* 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 $28.5 million for the fourth quarter of 2014, an increase of $0.4 million from the linked-quarter.

· The net interest margin expanded four basis points on a linked-quarter basis to 3.94%.

· From the third quarter of 2014, average loans increased $32.7 million while average federal funds sold, interest-earning deposits and investments decreased $15.7 million.

o As a percentage of average earning assets, the Company’s investment portfolio declined to 17.1% from 17.9% at the linked-quarter end.

· Average deposits increased $99.4 million from the linked-quarter, with average non-interest bearing deposits increasing $70.3 million from the linked-quarter.

Noninterest Income

· Total noninterest income decreased $2.1 million to $7.6 million from the linked- quarter, primarily due to a decline in investment banking income.

· Noninterest income as a percentage of operating income was 21.7% for the fourth quarter of 2014.

	Quarter ended (unaudited)							4Q14 change vs.
(in thousands)	4Q14		3Q14		4Q13		3Q14				4Q13
Noninterest income:
Deposit service charges	$	1,404	$	1,424	$	1,276	$	(20)	(1.4)	%	$	128	10.0	%
Investment advisory income		1,454		1,418		1,364		36	2.5	%		90	6.6	%
Insurance income		2,872		2,622		2,617		250	9.5	%		255	9.7	%
Investment banking income		126		2,359		971		(2,233)	(94.7)	%		(845)	(87.0)	%
Other income		1,762		1,916		2,024		(154)	(8.0)	%		(262)	(12.9)	%
Total noninterest income	$	7,618	$	9,739	$	8,252	$	(2,121)	(21.8)	%	$	(634)	(7.7)	%

Operating Expenses

· Total noninterest expense increased $0.5 million to $25.5 million from the linked- quarter. Excluding net gains on OREO and investment securities, noninterest expenses were relatively flat as compared to the linked-quarter.

· The increase in noninterest expense (excluding net gains and losses) over the prior-year quarter is primarily related to investments in new personnel and annual merit increases effective in April 2014.

o Total full-time equivalent employees at December 31, 2014 were 534, compared to 535 at September 30, 2014 and 513 at December 31, 2013.

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	Quarter ended (unaudited)							4Q14 change vs.
(in thousands)	4Q14		3Q14		4Q13		3Q14				4Q13
Noninterest expense:
Salaries and employee benefits	$	17,173	$	16,996	$	16,224	$	177	1.0	%	$	949	5.8	%
Stock-based compensation expense		712		704		551		8	1.1	%		161	29.2	%
Occupancy expenses, premises and equipment		3,385		3,288		3,514		97	3.0	%		(129)	(3.7)	%
Amortization of intangibles		150		147		151		3	2.0	%		(1)	(0.7)	%
Other operating expenses		4,308		4,510		4,077		(202)	(4.5)	%		231	5.7	%
Net (gain) loss on OREO, repossessed assets and other		(200)		(604)		2,100		404	66.9	%		(2,300)	(109.5)	%
Loss on investment securities		10		6		22		4	66.7	%		(12)	(54.5)	%
Total noninterest expense	$	25,538	$	25,047	$	26,639	$	491	2.0	%	$	(1,101)	(4.1)	%

Earnings Conference Call

In conjunction with this release, you are invited to listen to the Company's conference call on Friday, January 23, 2015, at 9:00 am MST with Steve Bangert, chairman and CEO of CoBiz Financial Inc. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=101230 or by telephone at 877.493.9121, (conference ID # 51688132). 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 $3.1 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides banking services through Colorado Business Bank,  Arizona Business Bank and CoBiz Private 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.

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· 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  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.

December 31, 2014

(unaudited)

	Three months ended December 31,				Year ended December 31,
(in thousands, except per share amounts)	2014		2013		2014			2013
INCOME STATEMENT DATA
Interest income	$	29,611	$	26,954	$	114,317		$	106,127
Interest expense		2,043		2,178		8,429			10,426
NET INTEREST INCOME BEFORE PROVISION		27,568		24,776		105,888			95,701
Provision for loan losses		(874)		(4,595)		(4,155)			(8,804)
NET INTEREST INCOME AFTER PROVISION		28,442		29,371		110,043			104,505
Noninterest income		7,618		8,252		32,075			30,912
Noninterest expense		25,538		26,639		97,964			94,628
INCOME BEFORE INCOME TAXES		10,522		10,984		44,154			40,789
Provision for income taxes		3,540		3,709		15,147			13,351
NET INCOME FROM CONTINUING OPERATIONS		6,982		7,275		29,007			27,438
Income from discontinued operations, net of tax		-		-		-			173
NET INCOME	$	6,982	$	7,275	$	29,007		$	27,611
Preferred stock dividends		(144)		(143)		(574)			(944)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	6,838	$	7,132	$	28,433		$	26,667
EARNINGS PER COMMON SHARE
BASIC	$	0.17	$	0.18	$	0.70		$	0.66
DILUTED	$	0.17	$	0.18	$	0.70		$	0.66
EQUITY MEASURES
Common shares outstanding at period end (in thousands)						40,770			40,368
Book value per common share					$	6.17		$	5.54
Tangible book value per common share *					$	6.11		$	5.47
Tangible common equity to tangible assets *						8.14	%		7.90	%
Tangible equity to tangible assets *						10.01	%		9.95	%
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
PERIOD END BALANCES
Total assets					$	3,062,166		$	2,800,691
Investments						484,621			556,796
Loans						2,405,575			2,084,359
Intangible assets						2,526			2,798
Deposits						2,492,291			2,279,037
Subordinated debentures						72,166			72,166
Common shareholders' equity						251,431			223,747
Total shareholders' equity						308,769			281,085
Interest-earning assets						2,927,132			2,663,823
Interest-bearing liabilities						1,653,738			1,527,992
BALANCE SHEET AVERAGES
Average assets					$	2,925,168		$	2,702,211
Average investments						522,822			567,256
Average loans						2,259,265			1,991,251
Average deposits						2,337,116			2,118,910
Average subordinated debentures						72,166			85,216
Average shareholders' equity						295,477			268,342
Average interest-earning assets						2,802,605			2,584,657
Average interest-bearing liabilities						1,612,644			1,523,103

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CoBiz Financial Inc.

December 31, 2014

(unaudited)

	Three months ended December 31,					Year ended December 31,
(in thousands)		2014		2013			2014			2013
PROFITABILITY MEASURES
Net interest margin		3.94	%	3.79	%		3.91	%		3.81	%
Efficiency ratio - tax equivalent		71.16	%	72.57	%		70.95	%		72.49	%
Return on average assets		0.92	%	1.03	%		0.99	%		1.02	%
Return on average shareholders' equity		9.05	%	10.42	%		9.82	%		10.29	%
Noninterest income as a percentage of operating revenues		21.65	%	24.98	%		23.25	%		24.41	%
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans						$	8,994		$	13,921
Loans 90 days or more past due and accruing interest							161			19
Total nonperforming loans							9,155			13,940
OREO & repossessed assets							5,819			5,097
Total nonperforming assets						$	14,974		$	19,037
Performing renegotiated loans						$	27,275		$	29,683
Classified loans						$	36,940		$	46,476
Charge-offs						$	(2,517)		$	(4,591)
Recoveries							2,387			3,579
Net charge-offs						$	(130)		$	(1,012)
Nonperforming assets to total assets							0.49	%		0.68	%
Nonperforming loans to total loans							0.38	%		0.67	%
Nonperforming loans and OREO to total loans and OREO							0.62	%		0.91	%
Allowance for loan and credit losses to total loans							1.36	%		1.78	%
Allowance for loan and credit losses to nonperforming loans							357.89	%		265.78	%

										Total		NPAs as a
NONPERFORMING ASSETS BY MARKET	Colorado			Arizona			Total			in Category		%
Commercial	$	2,716		$	762		$	3,478		$	977,699	0.36	%
Real estate - mortgage		1,003			2,413			3,416			989,719	0.35	%
Construction & land		135			-			135			181,864	0.07	%
Consumer		2,126			-			2,126			207,955	1.02	%
Other loans		-			-			-			48,338	-	%
OREO & repossessed assets		5,517			302			5,819			5,819	-	%
NPAs	$	11,497		$	3,477		$	14,974		$	2,411,394	0.62	%
Total loans	$	1,732,453		$	673,122		$	2,405,575
Total loans and OREO		1,737,970			673,424			2,411,394
Nonperforming loans to loans		0.35	%		0.47	%		0.38	%
Nonperforming loans and OREO to total loans and OREO		0.66	%		0.52	%		0.62	%

8 | Page

CoBiz Financial Inc.

December 31, 2014

(unaudited)

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(in thousands, except per share amounts)	2014			2014			2014			2014			2013
Interest income	$	29,611		$	29,205		$	28,510		$	26,991		$	26,954
Interest expense		2,043			2,143			2,157			2,086			2,178
Net interest income before provision		27,568			27,062			26,353			24,905			24,776
Provision for loan losses		(874)			(452)			(941)			(1,888)			(4,595)
Net interest income after provision		28,442			27,514			27,294			26,793			29,371
Noninterest income:
Deposit service charges	$	1,404		$	1,424		$	1,394		$	1,376		$	1,276
Investment advisory income		1,454			1,418			1,442			1,422			1,364
Insurance income		2,872			2,622			2,894			2,762			2,617
Investment banking income		126			2,359			1,494			187			971
Other income		1,762			1,916			1,813			(66)			2,024
Total noninterest income		7,618			9,739			9,037			5,681			8,252
Noninterest expense:
Salaries and employee benefits	$	17,173		$	16,996		$	15,943		$	15,836		$	16,224
Stock-based compensation expense		712			704			711			1,014			551
Occupancy expenses, premises and equipment		3,385			3,288			3,492			3,204			3,514
Amortization of intangibles		150			147			149			151			151
Other operating expenses		4,308			4,510			4,583			4,126			4,077
Net (gain) loss on securities, other assets and OREO		(190)			(598)			(1,646)			(184)			2,122
Total noninterest expense		25,538			25,047			23,232			24,147			26,639
Net income before income taxes		10,522			12,206			13,099			8,327			10,984
Provision for income taxes		3,540			4,315			4,482			2,810			3,709
Net income		6,982			7,891			8,617			5,517			7,275
Preferred stock dividends		(144)			(144)			(143)			(143)			(143)
Net income available to common shareholders	$	6,838		$	7,747		$	8,474		$	5,374		$	7,132
Earnings per common share
Basic	$	0.17		$	0.19		$	0.21		$	0.13		$	0.18
Diluted	$	0.17		$	0.19		$	0.21		$	0.13		$	0.18
PROFITABILITY MEASURES
Net interest margin		3.94	%		3.90	%		3.92	%		3.90	%		3.79	%
Efficiency ratio - tax equivalent		71.16	%		67.75	%		68.49	%		77.39	%		72.57	%
Return on average assets		0.92	%		1.05	%		1.19	%		0.80	%		1.03	%
Return on average shareholders' equity		9.05	%		10.46	%		11.86	%		7.86	%		10.42	%
Noninterest income as a percentage of operating revenues		21.65	%		26.46	%		25.54	%		18.57	%		24.98	%
EQUITY MEASURES
Common shares outstanding at period end (in thousands)		40,770			40,691			40,642			40,622			40,368
Diluted weighted average common shares outstanding (in thousands)		40,374			40,228			40,134			39,979			39,831
Book value per common share	$	6.17		$	6.03		$	5.87		$	5.67		$	5.54
Tangible book value per common share *	$	6.11		$	5.96		$	5.81		$	5.60		$	5.47
Tangible common equity to tangible assets *		8.14	%		8.02	%		7.82	%		7.98	%		7.90	%
Tangible equity to tangible assets *		10.01	%		9.92	%		9.71	%		10.00	%		9.95	%
Tier 1 capital ratio		**			14.46	%		14.18	%		14.43	%		14.50	%
Total risk based capital ratio		**			15.71	%		15.43	%		15.68	%		15.75	%

* See accompanying Reconciliation of Non-GAAP Measures to GAAP

** Ratios unavailable at the time of release.

9 | Page

CoBiz Financial Inc.

December 31, 2014

(unaudited)

	At
	December 31,			September 30,			June 30,			March 31,			December 31,
(in thousands)	2014			2014			2014			2014			2013
PERIOD END BALANCES
Total assets	$	3,062,166		$	3,028,864		$	3,024,832		$	2,852,782		$	2,800,691
Investments		484,621			500,526			526,797			547,211			556,796
Loans		2,405,575			2,357,069			2,294,644			2,152,294			2,084,359
Intangible assets		2,526			2,676			2,498			2,647			2,798
Deposits		2,492,291			2,366,376			2,299,153			2,322,736			2,279,037
Subordinated debentures		72,166			72,166			72,166			72,166			72,166
Common shareholders' equity		251,431			245,392			238,760			230,182			223,747
Total shareholders' equity		308,769			302,730			296,098			287,520			281,085
Interest-earning assets		2,927,132			2,892,095			2,885,380			2,713,376			2,663,823
Interest-bearing liabilities		1,653,738			1,698,415			1,745,284			1,607,347			1,527,992
LOANS
Commercial	$	977,699		$	962,438		$	917,494		$	860,060		$	824,453
Real estate - mortgage		989,719			964,100			978,399			926,047			900,864
Construction & land		181,864			182,288			160,452			136,018			127,952
Consumer		207,955			202,414			194,339			183,156			181,056
Other		48,338			45,829			43,960			47,013			50,034
Gross loans		2,405,575			2,357,069			2,294,644			2,152,294			2,084,359
Less allowance for loan losses		(32,765)			(33,682)			(33,922)			(35,603)			(37,050)
Total net loans	$	2,372,810		$	2,323,387		$	2,260,722		$	2,116,691		$	2,047,309
Gross Loans - Colorado		1,732,453			1,717,764			1,683,720			1,600,759			1,521,070
Gross Loans - Arizona		673,122			639,305			610,924			551,535			563,289
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	661,519		$	619,377		$	599,234		$	590,596		$	572,175
Interest-bearing demand		531,365			509,352			491,347			542,304			487,037
Savings		15,236			19,091			15,134			13,979			12,803
Certificates of deposits under $100		24,184			24,971			25,704			26,965			27,726
Certificates of deposits $100 and over		122,216			127,054			126,487			130,226			134,418
Brokered CDs		-			-			19,996			-			-
Reciprocal CDARS		64,607			64,610			60,651			81,589			83,173
Total interest-bearing deposits		1,419,127			1,364,455			1,338,553			1,385,659			1,317,332
Noninterest-bearing demand deposits		1,073,164			1,001,921			960,600			937,077			961,705
Customer repurchase agreements		49,976			76,041			74,565			89,521			138,494
Total deposits and customer repurchase agreements	$	2,542,267		$	2,442,417		$	2,373,718		$	2,412,257		$	2,417,531
BALANCE SHEET AVERAGES
Average assets	$	3,003,084		$	2,983,493		$	2,913,504		$	2,797,695		$	2,792,837
Average investments		491,764			512,579			536,450			551,263			573,544
Average loans		2,360,469			2,327,777			2,236,728			2,108,563			2,048,592
Average deposits		2,450,685			2,351,330			2,267,573			2,276,814			2,253,875
Average subordinated debentures		72,166			72,166			72,166			72,166			72,166
Average shareholders' equity		306,226			299,404			291,469			284,527			277,118
Average interest-earning assets		2,877,329			2,860,327			2,792,091			2,677,847			2,673,332
Average interest-bearing liabilities		1,624,211			1,684,757			1,654,752			1,484,532			1,525,400
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	33,682		$	33,922		$	35,603		$	37,050		$	41,810
Provision for loan losses		(874)			(452)			(941)			(1,888)			(4,595)
Net recovery (charge-off)		(43)			212			(740)			441			(165)
Ending allowance for loan losses	$	32,765		$	33,682		$	33,922		$	35,603		$	37,050
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans	$	8,994		$	8,273		$	7,861		$	10,618		$	13,921
Loans 90 days or more past due and accruing interest		161			-			134			-			19
Total nonperforming loans		9,155			8,273			7,995			10,618			13,940
OREO and repossessed assets		5,819			3,750			4,148			4,911			5,097
Total nonperforming assets	$	14,974		$	12,023		$	12,143		$	15,529		$	19,037
Performing renegotiated loans	$	27,275		$	29,121		$	24,033		$	30,290		$	29,683
Classified loans	$	36,940		$	36,534		$	41,357		$	38,278		$	46,476
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.49	%		0.40	%		0.40	%		0.54	%		0.68	%
Nonperforming loans to total loans		0.38	%		0.35	%		0.35	%		0.49	%		0.67	%
Nonperforming loans and OREO to total loans and OREO		0.62	%		0.51	%		0.53	%		0.72	%		0.91	%
Allowance for loan and credit losses to total loans		1.36	%		1.43	%		1.48	%		1.65	%		1.78	%
Allowance for loan and credit losses to nonperforming loans		357.89	%		407.13	%		424.29	%		335.31	%		265.78	%

10 | Page

CoBiz Financial Inc.

December 31, 2014

(unaudited)

	For the three months ended,
	December 31, 2014							September 30, 2014							December 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	$	25,096		$	31	0.48	%	$	19,971		$	23	0.45	%	$	51,196		$	44	0.34	%
Investment securities		491,764			3,586	2.92	%		512,579			3,775	2.95	%		573,544			4,375	3.05	%
Loans		2,360,469			26,965	4.47	%		2,327,777			26,458	4.45	%		2,048,592			23,292	4.45	%
Total interest-earning assets	$	2,877,329		$	30,582	4.17	%	$	2,860,327		$	30,256	4.15	%	$	2,673,332		$	27,711	4.07	%
Noninterest-earning assets		125,755							123,166							119,505
Total assets	$	3,003,084						$	2,983,493						$	2,792,837
Liabilities and Shareholders' Equity
Deposits
Money market	$	645,435		$	517	0.32	%	$	626,199		$	508	0.32	%	$	608,818		$	532	0.35	%
Interest-bearing demand		528,639			196	0.15	%		499,467			209	0.17	%		418,181			227	0.22	%
Savings		16,723			3	0.07	%		16,791			3	0.07	%		11,712			2	0.07	%
Certificates of deposit
Reciprocal		64,160			48	0.30	%		64,174			51	0.32	%		89,793			77	0.34	%
Under $100		24,536			16	0.26	%		25,096			35	0.55	%		27,825			32	0.46	%
$100 and over		124,330			172	0.55	%		143,040			164	0.45	%		133,596			184	0.55	%
Total interest-bearing deposits	$	1,403,823		$	952	0.27	%	$	1,374,767		$	970	0.28	%	$	1,289,925		$	1,054	0.32	%
Other borrowings
Securities sold under agreements to repurchase		58,007			16	0.11	%		92,429			31	0.13	%		163,284			85	0.20	%
Other short-term borrowings		90,215			36	0.16	%		145,395			103	0.28	%		25			-	-	%
Long term-debt		72,166			1,039	5.63	%		72,166			1,039	5.63	%		72,166			1,039	5.63	%
Total interest-bearing liabilities	$	1,624,211		$	2,043	0.50	%	$	1,684,757		$	2,143	0.50	%	$	1,525,400		$	2,178	0.56	%
Noninterest-bearing demand accounts		1,046,862							976,563							963,950
Total deposits and interest-bearing liabilities		2,671,073							2,661,320							2,489,350
Other noninterest-bearing liabilities		25,785							22,769							26,369
Total liabilities		2,696,858							2,684,089							2,515,719
Total equity		306,226							299,404							277,118
Total liabilities and equity	$	3,003,084						$	2,983,493						$	2,792,837
Net interest income - taxable equivalent				$	28,539						$	28,113						$	25,533
Net interest spread						3.67	%						3.65	%						3.51	%
Net interest margin						3.94	%						3.90	%						3.79	%
Ratio of average interest-earning assets to average interest-bearing liabilities		177.15	%						169.78	%						175.25	%

11 | Page

CoBiz Financial Inc.

December 31, 2014

(unaudited)

	For the year ended December 31,
	2014							2013
				Interest		Average					Interest		Average
	Average			earned		yield		Average			earned		yield
(in thousands)	balance			or paid		or cost		balance			or paid		or cost
Assets
Federal funds sold and other	$	20,518		$	102	0.50	%	$	26,150		$	117	0.45	%
Investment securities		522,822			15,742	3.01	%		567,256			16,963	2.99	%
Loans		2,259,265			102,281	4.53	%		1,991,251			91,807	4.61	%
Total interest-earning assets	$	2,802,605		$	118,125	4.21	%	$	2,584,657		$	108,887	4.21	%
Noninterest-earning assets		122,563							117,554
Total assets	$	2,925,168						$	2,702,211
Liabilities and Shareholders' Equity
Deposits
Money market	$	610,525		$	1,954	0.32	%	$	595,922		$	2,434	0.41	%
Interest-bearing demand		488,255			886	0.18	%		375,581			862	0.23	%
Savings		15,140			10	0.07	%		13,349			8	0.06	%
Certificates of deposit
Reciprocal		69,465			222	0.32	%		89,051			349	0.39	%
Under $100		25,888			110	0.42	%		28,901			144	0.50	%
$100 and over		134,158			685	0.51	%		137,121			819	0.60	%
Total interest-bearing deposits	$	1,343,431		$	3,867	0.29	%	$	1,239,925		$	4,616	0.37	%
Other borrowings
Securities sold under agreements to repurchase		83,543			154	0.18	%		154,502			337	0.22	%
Other short-term borrowings		113,504			286	0.25	%		43,460			113	0.26	%
Long term-debt		72,166			4,122	5.71	%		85,216			5,360	6.29	%
Total interest-bearing liabilities	$	1,612,644		$	8,429	0.52	%	$	1,523,103		$	10,426	0.68	%
Noninterest-bearing demand accounts		993,685							878,985
Total deposits and interest-bearing liabilities		2,606,329							2,402,088
Other noninterest-bearing liabilities		23,362							31,781
Total liabilities		2,629,691							2,433,869
Total equity		295,477							268,342
Total liabilities and equity	$	2,925,168						$	2,702,211
Net interest income - taxable equivalent				$	109,696						$	98,461
Net interest spread						3.69	%						3.53	%
Net interest margin						3.91	%						3.81	%
Ratio of average interest-earning assets to average interest-bearing liabilities		173.79	%						169.70	%

12 | Page

CoBiz Financial Inc.

December 31, 2014

(unaudited)

Reconciliation of Non-GAAP Measures to GAAP

(in thousands, except per share amounts)

The Company believes these non-GAAP measures are useful to obtain an understanding of the operating results of the Company’s core business and reflects the basis on which management internally reviews financial performance and capital adequacy. These non-GAAP measures are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to non-GAAP performance measures that may be presented by other companies.

The following tables include non-GAAP financial measures related to tangible equity, tangible common equity and tangible assets.  The table below has been adjusted to exclude intangible assets and preferred stock.

		At
		December 31,			September 30,			June 30,			March 31,			December 31,
		2014			2014			2014			2014			2013
	Shareholders' equity as reported - GAAP	$	308,769		$	302,730		$	296,098		$	287,520		$	281,085
	Intangible assets		(2,526)			(2,676)			(2,498)			(2,647)			(2,798)
A	Tangible equity - non-GAAP		306,243			300,054			293,600			284,873			278,287
	Preferred stock		(57,338)			(57,338)			(57,338)			(57,338)			(57,338)
B	Tangible common equity - non-GAAP	$	248,905		$	242,716		$	236,262		$	227,535		$	220,949
	Total assets as reported - GAAP	$	3,062,166		$	3,028,864		$	3,024,832		$	2,852,782		$	2,800,691
	Intangible assets		(2,526)			(2,676)			(2,498)			(2,647)			(2,798)
C	Total tangible assets - non-GAAP	$	3,059,640		$	3,026,188		$	3,022,334		$	2,850,135		$	2,797,893
D	Common shares outstanding		40,770			40,691			40,642			40,622			40,368
B / C	Tangible common equity to tangible assets - non-GAAP		8.14	%		8.02	%		7.82	%		7.98	%		7.90	%
A / C	Tangible equity to tangible assets - non-GAAP		10.01	%		9.92	%		9.71	%		10.00	%		9.95	%
B / D	Tangible book value per common share - non-GAAP	$	6.11		$	5.96		$	5.81		$	5.60		$	5.47

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