Cobiz Financial (COBZ) 8-K CoBiz Financial Announces Third Quarter 2015 Results

Exhibit 99.1

CoBiz Financial Announces Third Quarter 2015 Results

Denver -- CoBiz Financial Inc. (NASDAQ: COBZ), a financial services company with $3.3 billion in assets, announced net income available to common shareholders of $6.9 million for the third quarter of 2015, or $0.17 per diluted common share. Return on average assets for the third quarter of 2015 was 0.87% and return on average shareholders’ equity was 9.8% for the third quarter of 2015.

Financial Highlights – Third Quarter 2015

· Loans at September 30, 2015 increased $124.9 million from June 30, 2015, or 19.9% annualized, and $264.0 million, or 11.2%, from September 30, 2014.

· Deposits at September 30, 2015 increased $75.0 million from June 30, 2015, or 11.3% annualized, and $341.0 million, or 14.4%, from September 30, 2014.

· A provision for loan losses of $0.8 million was recorded in the third quarter of 2015, as compared to $1.1 million in the second quarter of 2015 and a negative provision of $0.5 million in the third quarter of 2014.

· In the third quarter of 2015 the Company recorded its first full period of interest expense of $0.9 million on the subordinated notes issued on June 25, 2015.

Financial Summary

	Quarter ended (unaudited)										3Q15 change vs.
(in thousands, except per share amounts)	3Q15			2Q15			3Q14			2Q15				3Q14
Net interest income before provision	$	27,367		$	28,072		$	27,062		$	(705)	(2.5)	%	$	305	1.1	%
Provision for loan losses		762			1,057			(452)			(295)	(27.9)	%		1,214	268.6	%
Net interest income after provision		26,605			27,015			27,514			(410)	(1.5)	%		(909)	(3.3)	%
Total noninterest income		7,424			7,940			7,380			(516)	(6.5)	%		44	0.6	%
Total noninterest expense		24,738			24,359			23,322			379	1.6	%		1,416	6.1	%
Net income before income taxes		9,291			10,596			11,572			(1,305)	(12.3)	%		(2,281)	(19.7)	%
Provision for income taxes		2,337			3,213			4,039			(876)	(27.3)	%		(1,702)	(42.1)	%
Income from continuing operations		6,954			7,383			7,533			(429)	(5.8)	%		(579)	(7.7)	%
Discontinued operations, net of tax(1)		-			-			358			-	-	%		(358)	(100.0)	%
Net income		6,954			7,383			7,891			(429)	(5.8)	%		(937)	(11.9)	%
Preferred stock dividends		(33)			(144)			(144)			111	77.1	%		111	77.1	%
Net income available to common shareholders	$	6,921		$	7,239		$	7,747		$	(318)	(4.4)	%	$	(826)	(10.7)	%
Diluted earnings per common share	$	0.17		$	0.17		$	0.19		$	-	-	%	$	(0.02)	(10.8)	%
KEY RATIOS
Net interest margin		3.72	%		3.96	%		3.90	%
Efficiency ratio(2)		68.25	%		65.48	%		67.39	%
Return on average assets		0.87	%		0.96	%		1.05	%
Return on average shareholders' equity		9.76	%		9.26	%		10.46	%
Noninterest income as a percentage of operating revenues		20.43	%		21.26	%		20.79	%

(1) The Company discontinued the operations of its investment banking subsidiary, Green Manning & Bunch (GMB), as of March 31, 2015. GMB’s operations have been reported as discontinued operations retrospectively for all periods presented throughout this earnings release.

(2) The efficiency ratio equals noninterest expense adjusted to exclude gains and losses on other real estate owned (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.

1 | Page

“Loan origination was very strong this quarter,” said Chairman and CEO Steve Bangert, “although we didn’t see the full earnings impact because much of it came late in the quarter.  I am also pleased with our core deposit generation with deposit inflows outpacing loan development over the last year, allowing us to profitably fund our growth. Both of our markets, Arizona and Colorado, are presenting us with great opportunities. If favorable economic conditions hold in our markets, we believe we are well positioned to grow earnings going forward.”

Loans

· Loans at September 30, 2015 were $2.6 billion, an increase of $124.9 million from June 30, 2015. From September 30, 2014, loans increased $264.0 million, or 11.2%.

· Loans increased $70.8 million in the Arizona market and $54.1 million in the Colorado market from June 30, 2015. 

	Quarter ended (unaudited)							3Q15 change vs.
(in thousands)	3Q15		2Q15		3Q14		2Q15				3Q14
LOANS
Commercial	$	1,173,950	$	1,100,416	$	962,438	$	73,534	6.7	%	$	211,512	22.0	%
Owner-occupied real estate		443,907		435,921		476,279		7,986	1.8	%		(32,372)	(6.8)	%
Investor real estate		474,284		499,002		487,821		(24,718)	(5.0)	%		(13,537)	(2.8)	%
Construction & land		229,284		203,262		182,288		26,022	12.8	%		46,996	25.8	%
Consumer		244,994		212,730		202,414		32,264	15.2	%		42,580	21.0	%
Other		54,634		44,782		45,829		9,852	22.0	%		8,805	19.2	%
Total loans	$	2,621,053	$	2,496,113	$	2,357,069	$	124,940	5.0	%	$	263,984	11.2	%

· New credit extensions during the third quarter of 2015 improved from the second quarter of 2015 (linked-quarter). However, the Company continued to experience a high level of paydowns and maturities, particularly within the commercial real estate portfolio. 

· Commercial line utilization was 34.7% at September 30, 2015, compared to 36.3% and 39.7%, respectively, at the linked- and prior-year quarter ends.

	Quarter ended (unaudited)
(in thousands)	3Q15		2Q15		1Q15		4Q14		3Q14
Loans - beginning balance	$	2,496,113	$	2,449,542	$	2,405,575	$	2,357,069	$	2,294,644
New credit extended		261,764		197,340		151,539		177,247		146,458
Credit advanced		131,936		114,932		105,157		100,921		106,011
Paydowns & maturities		(268,673)		(265,459)		(211,937)		(228,914)		(189,822)
Gross loan charge-offs		(87)		(242)		(792)		(748)		(222)
Loans - ending balance	$	2,621,053	$	2,496,113	$	2,449,542	$	2,405,575	$	2,357,069
Net change - loans outstanding	$	124,940	$	46,571	$	43,967	$	48,506	$	62,425

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

· Customer Funding at September 30, 2015 increased $78.9 million from June 30, 2015 and $327.2 million from September 30, 2014.

· Noninterest-bearing demand accounts increased $73.1 million from June 30, 2015 and were 41.7% of total deposits at September 30, 2015.   

2 | Page

	Quarter ended (unaudited)							3Q15 change vs.
(in thousands)	3Q15		2Q15		3Q14		2Q15				3Q14
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	832,131	$	770,076	$	619,377	$	62,055	8.1	%	$	212,754	34.3	%
Interest-bearing demand		572,848		618,272		509,352		(45,424)	(7.3)	%		63,496	12.5	%
Savings		18,540		19,384		19,091		(844)	(4.4)	%		(551)	(2.9)	%
Certificates of deposits under $100		22,220		22,487		24,971		(267)	(1.2)	%		(2,751)	(11.0)	%
Certificates of deposits $100 and over		100,958		105,111		127,054		(4,153)	(4.0)	%		(26,096)	(20.5)	%
Reciprocal CDARS		32,969		42,424		64,610		(9,455)	(22.3)	%		(31,641)	(49.0)	%
Total interest-bearing deposits		1,579,666		1,577,754		1,364,455		1,912	0.1	%		215,211	15.8	%
Noninterest-bearing demand deposits		1,127,747		1,054,632		1,001,921		73,115	6.9	%		125,826	12.6	%
Customer repurchase agreements		62,182		58,328		76,041		3,854	6.6	%		(13,859)	(18.2)	%
Total deposits and customer repurchase agreements	$	2,769,595	$	2,690,714	$	2,442,417	$	78,881	2.9	%	$	327,178	13.4	%

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

· The level of problem credits remains low, with nonperforming assets of $10.4 million at September 30, 2015, compared to $9.9 million at June 30, 2015, and $12.0 million at September 30, 2014. 

· The Company recognized net recoveries of $0.3 million during the third quarter of 2015.

· The Allowance was 1.33% of total loans at September 30, 2015.

	Quarter ended (unaudited)
(in thousands)	3Q15			2Q15			3Q14
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	33,832		$	32,502		$	33,922
Provision for loan losses		762			1,057			(452)
Net recovery (charge-off)		305			273			212
Ending allowance for loan losses	$	34,899		$	33,832		$	33,682
CREDIT QUALITY
Nonaccrual loans	$	4,881		$	4,075		$	8,273
Loans 90 days or more past due and accruing interest		-			-			-
Total nonperforming loans		4,881			4,075			8,273
OREO and repossessed assets		5,481			5,786			3,750
Total nonperforming assets	$	10,362		$	9,861		$	12,023
Performing renegotiated loans	$	29,567		$	29,806		$	29,121
Classified loans	$	41,190		$	46,277		$	36,534
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.31	%		0.31	%		0.40	%
Nonperforming loans to total loans		0.19	%		0.16	%		0.35	%
Nonperforming loans and OREO to total loans and OREO		0.39	%		0.39	%		0.51	%
Allowance for loan and credit losses to total loans		1.33	%		1.36	%		1.43	%
Allowance for loan and credit losses to nonperforming loans		715.00	%		830.23	%		407.13	%

Shareholders’ Equity and Long-Term Debt 

· On June 25, 2015, the Company issued $60 million of unsecured fixed-to-floating rate subordinated notes due 2030 (Notes). Unless redeemed, the Notes will bear 5.625% annual interest until June 25, 2025, and thereafter until maturity in June 2030 at a floating rate equal to LIBOR plus 317 basis points.

· The Company used the net proceeds of the Notes to redeem its Small Business Lending Fund (SBLF) preferred stock. The SBLF shares were included in Tier 1 capital, whereas the Notes qualify as Tier 2 capital. As a result, the Company’s Tier 1 capital ratio declined; however, while total regulatory capital did not change significantly as a result of the transactions, shareholders’ equity did decline.

3 | Page

· On October 2, 2015, the Board of Directors of the Company declared a quarterly cash dividend of $0.045 per common share. The dividend will be paid on November 2, 2015 to shareholders of record on October 26, 2015.

	Quarter ended (unaudited)
(in thousands, except per share amounts)	3Q15			2Q15			3Q14
EQUITY MEASURES
Common shareholders' equity	$	269,969		$	265,307		$	245,392
Total shareholders' equity		269,969			322,645			302,730
Common shares outstanding at period end		41,067			41,028			40,691
Book value per common share	$	6.57		$	6.47		$	6.03
Tangible book value per common share *	$	6.52		$	6.41		$	5.96
Tangible common equity to tangible assets *		8.10	%		8.32	%		8.02	%
Tangible equity to tangible assets *		8.10	%		10.13	%		9.92	%
Tier 1 capital ratio		**			13.30	%		14.46	%
Total-risk based capital ratio		**			16.47	%		15.71	%

* 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 $28.9 million for the third quarter of 2015, a decrease of $0.5 million from the linked-quarter.

· The third quarter of 2015 reflected the first full quarter of interest expense related to the Notes issued in late June 2015. The incremental quarterly interest expense was $0.8 million as compared to the second quarter of 2015.

· Net Interest Margin (NIM) contracted 24 basis points on a linked-quarter basis to 3.72%.

o NIM was adversely impacted by the Notes offering, which contributed 11 basis points of the contraction to the reported NIM compared to the linked-quarter.

o In addition, loan yields declined on a linked-quarter basis by 15 basis points, in part due to a reduction in past-due interest collected on problem loan resolutions and prepayment penalties, which were particularly pronounced in the first half of 2015.

· Offsetting the NIM compression was an increase in the earning asset base, and improved deposit composition.

o From June 30, 2015, average loans increased $72.3 million while average federal funds sold, interest-earning deposits and investments increased $33.1 million.

o Average deposits increased $43.4 million from June 30, 2015, with average noninterest-bearing deposits increasing $50.9 million from June 30, 2015.

Noninterest Income

· The Company has decided to focus on fee-based business lines with recurring revenue, and as of March 31, 2015 ceased offering investment banking services. The operations of GMB have been reported as discontinued operations retrospectively for all periods presented.

· Total noninterest income declined from the linked-quarter primarily due to lower income on equity method investments.

· Noninterest income as a percentage of operating income was 20.4% for the third quarter of 2015, as compared to 21.3% and 20.8%, respectively, for the linked- and prior-year quarters.

4 | Page

	Quarter ended (unaudited)							3Q15 change vs.
(in thousands)	3Q15		2Q15		3Q14		2Q15				3Q14
Noninterest income:
Deposit service charges	$	1,490	$	1,455	$	1,424	$	35	2.4	%	$	66	4.6	%
Investment advisory income		1,478		1,471		1,418		7	0.5	%		60	4.2	%
Insurance income		3,023		3,137		2,622		(114)	(3.6)	%		401	15.3	%
Other income		1,433		1,877		1,916		(444)	(23.7)	%		(483)	(25.2)	%
Total noninterest income	$	7,424	$	7,940	$	7,380	$	(516)	(6.5)	%	$	44	0.6	%

Operating Expenses

· Total noninterest expense increased $0.4 million from the linked-quarter and $1.4 million from the prior-year quarter.

· The decrease in compensation related expenses over the linked-quarter is primarily due to an increase in deferred direct loan origination costs (which are credited against salary expense) related to higher loan origination levels.

· Total full-time equivalent employees at September 30, 2015 were relatively unchanged from June 30, 2015 at 530, versus 524 at September 30, 2014.

· The increase in other operating expenses over the linked- and prior-year quarters is the result of higher service contracts fees, which are a function of client transaction volumes, and higher professional services fees.

· The prior-year quarter benefited from greater net gains on OREO and other assets of $0.6 million, which reduced total noninterest expense.

· The efficiency ratio was 68.3% for the third quarter of 2015, as compared to 65.5% and 67.4%, respectively, for the linked- and prior-year quarters.

	Quarter ended (unaudited)							3Q15 change vs.
(in thousands)	3Q15		2Q15		3Q14		2Q15				3Q14
Noninterest expense:
Salaries and employee benefits	$	15,916	$	16,216	$	15,513	$	(300)	(1.9)	%	$	403	2.6	%
Stock-based compensation expense		707		739		704		(32)	(4.3)	%		3	0.4	%
Occupancy expenses, premises and equipment		3,371		3,258		3,258		113	3.5	%		113	3.5	%
Amortization of intangibles		150		150		147		-	-	%		3	2.0	%
Other operating expenses		4,653		4,091		4,298		562	13.7	%		355	8.3	%
Net (gain) loss on OREO, repossessed assets and other		(59)		(95)		(598)		36	37.9	%		539	90.1	%
Total noninterest expense	$	24,738	$	24,359	$	23,322	$	379	1.6	%	$	1,416	6.1	%

Earnings Conference Call

In conjunction with this release, you are invited to listen to the Company's conference call on Friday, October 16, 2015, at 9:00 am MDT with Steve Bangert, chairman and CEO of CoBiz Financial Inc. The call can be accessed via the Internet at https://www.webcaster4.com/Webcast/Page/989/10729 or by telephone at 877.493.9121, (conference ID # 3577331). International callers may dial:  973.582.2750.

Explanation of the Company’s Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding our results of operations and reflects the basis on which management internally reviews financial performance and capital adequacy. We believe these measures provide important supplemental information to investors. However, you should not rely on non-GAAP financial measures alone as measures of our performance. Please see the accompanying Reconciliation of Non-GAAP Measures to GAAP for additional information.

Contact Information

CoBiz Financial Inc.

Lyne Andrich 303.312.3458

5 | Page

About CoBiz Financial

CoBiz Financial (NASDAQ:COBZ) is a $3.3 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; and property and casualty insurance brokerage and employee benefits through CoBiz Insurance.

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 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.

· 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.

· Changes in legislative or regulatory requirements applicable to us and our subsidiaries and implementation of current legislative or regulatory requirements could increase costs, limit certain operations and adversely affect results of operations.

· Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers' businesses.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

6 | Page

CoBiz Financial Inc.

September 30, 2015

(unaudited)

	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share amounts)	2015		2014		2015			2014
INCOME STATEMENT DATA
Interest income	$	30,177	$	29,205	$	90,185		$	84,706
Interest expense		2,810		2,143		6,745			6,386
NET INTEREST INCOME BEFORE PROVISION		27,367		27,062		83,440			78,320
Provision for loan losses		762		(452)		1,030			(3,281)
NET INTEREST INCOME AFTER PROVISION		26,605		27,514		82,410			81,601
Noninterest income		7,424		7,380		22,682			20,417
Noninterest expense		24,738		23,322		74,460			69,238
INCOME BEFORE INCOME TAXES		9,291		11,572		30,632			32,780
Provision for income taxes		2,337		4,039		8,892			11,269
NET INCOME FROM CONTINUING OPERATIONS		6,954		7,533		21,740			21,511
Income (loss) from discontinued operations, net of tax		-		358		(71)			514
NET INCOME	$	6,954	$	7,891	$	21,669		$	22,025
Preferred stock dividends		(33)		(144)		(320)			(430)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	6,921	$	7,747	$	21,349		$	21,595
EARNINGS PER COMMON SHARE
BASIC	$	0.17	$	0.19	$	0.52		$	0.53
DILUTED	$	0.17	$	0.19	$	0.52		$	0.53
EQUITY MEASURES
Common shares outstanding at period end (in thousands)						41,067			40,691
Book value per common share					$	6.57		$	6.03
Tangible book value per common share *					$	6.52		$	5.96
Tangible common equity to tangible assets *						8.10	%		8.02	%
Tangible equity to tangible assets *						8.10	%		9.92	%
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
PERIOD END BALANCES
Total assets					$	3,307,772		$	3,028,864
Investments						513,864			500,526
Loans						2,621,053			2,357,069
Intangible assets						2,076			2,676
Deposits						2,707,413			2,366,376
Subordinated debentures						131,178			72,166
Common shareholders' equity						269,969			245,392
Total shareholders' equity						269,969			302,730
Interest-earning assets						3,171,849			2,892,095
Interest-bearing liabilities						1,883,026			1,698,415
BALANCE SHEET AVERAGES
Average assets					$	3,099,120		$	2,898,911
Average investments						494,697			533,289
Average loans						2,472,634			2,225,159
Average deposits						2,572,494			2,298,846
Average subordinated debentures						93,346			72,166
Average shareholders' equity						304,926			291,854
Average interest-earning assets						2,992,855			2,777,424
Average interest-bearing liabilities						1,734,032			1,608,747

7 | Page

CoBiz Financial Inc.

September 30, 2015

(unaudited)

	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2015			2014			2015			2014
PROFITABILITY MEASURES
Net interest margin		3.72	%		3.90	%		3.91	%		3.91	%
Efficiency ratio - tax equivalent		68.25	%		67.39	%		67.70	%		70.55	%
Return on average assets		0.87	%		1.05	%		0.93	%		1.02	%
Return on average shareholders' equity		9.76	%		10.46	%		9.50	%		10.09	%
Noninterest income as a percentage of operating revenues		20.43	%		20.79	%		20.59	%		20.10	%
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans							$	4,881		$	8,273
Loans 90 days or more past due and accruing interest								-			-
Total nonperforming loans								4,881			8,273
OREO & repossessed assets								5,481			3,750
Total nonperforming assets							$	10,362		$	12,023
Performing renegotiated loans							$	29,567		$	29,121
Classified loans							$	41,190		$	36,534
Charge-offs							$	(1,121)		$	(1,769)
Recoveries								2,225			1,682
Net charge-offs							$	1,104		$	(87)
Nonperforming assets to total assets								0.31	%		0.40	%
Nonperforming loans to total loans								0.19	%		0.35	%
Nonperforming loans and OREO to total loans and OREO								0.39	%		0.51	%
Allowance for loan and credit losses to total loans								1.33	%		1.43	%
Allowance for loan and credit losses to nonperforming loans								715.00	%		407.13	%

										Total		NPAs as a
NONPERFORMING ASSETS BY MARKET	Colorado			Arizona			Total			in Category		%
Commercial	$	3,256		$	937		$	4,193		$	1,173,950	0.36	%
Real estate - mortgage		-			518			518			918,191	0.06	%
Construction & land		28			-			28			229,284	0.01	%
Consumer		142			-			142			244,994	0.06	%
Other loans		-			-			-			54,634	-	%
OREO & repossessed assets		5,305			176			5,481			5,481	-
NPAs	$	8,731		$	1,631		$	10,362		$	2,626,534	0.39	%
Total loans	$	1,798,543		$	822,510		$	2,621,053
Total loans and OREO		1,803,848			822,686			2,626,534
Nonperforming loans to loans		0.19	%		0.18	%		0.19	%
Nonperforming loans and OREO to total loans and OREO		0.48	%		0.20	%		0.39	%

8 | Page

CoBiz Financial Inc.

September 30, 2015

(unaudited)

	Three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(in thousands, except per share amounts)	2015			2015			2015			2014			2014
Interest income	$	30,177		$	30,044		$	29,964		$	29,611		$	29,205
Interest expense		2,810			1,972			1,963			2,043			2,143
Net interest income before provision		27,367			28,072			28,001			27,568			27,062
Provision for loan losses		762			1,057			(789)			(874)			(452)
Net interest income after provision		26,605			27,015			28,790			28,442			27,514
Noninterest income:
Deposit service charges	$	1,490		$	1,455		$	1,493		$	1,404		$	1,424
Investment advisory income		1,478			1,471			1,495			1,454			1,418
Insurance income		3,023			3,137			2,950			2,872			2,622
Other income		1,433			1,877			1,380			1,762			1,916
Total noninterest income		7,424			7,940			7,318			7,492			7,380
Noninterest expense:
Salaries and employee benefits	$	15,916		$	16,216		$	16,975		$	16,618		$	15,513
Stock-based compensation expense		707			739			1,165			712			704
Occupancy expenses, premises and equipment		3,371			3,258			3,149			3,358			3,258
Amortization of intangibles		150			150			150			150			147
Other operating expenses		4,653			4,091			3,893			4,229			4,298
Net (gain) loss on securities, other assets and OREO		(59)			(95)			31			(169)			(598)
Total noninterest expense		24,738			24,359			25,363			24,898			23,322
Net income before income taxes		9,291			10,596			10,745			11,036			11,572
Provision for income taxes		2,337			3,213			3,342			3,749			4,039
Net income from continuing operations		6,954			7,383			7,403			7,287			7,533
Net income (loss) from discontinued operations		-			-			(71)			(305)			358
Net income		6,954			7,383			7,332			6,982			7,891
Preferred stock dividends		(33)			(144)			(143)			(144)			(144)
Net income available to common shareholders	$	6,921		$	7,239		$	7,189		$	6,838		$	7,747
Earnings per common share
Basic	$	0.17		$	0.17		$	0.18		$	0.17		$	0.19
Diluted	$	0.17		$	0.17		$	0.18		$	0.17		$	0.19
PROFITABILITY MEASURES
Net interest margin		3.72	%		3.96	%		4.06	%		3.94	%		3.90	%
Efficiency ratio - tax equivalent		68.25	%		65.48	%		69.42	%		69.63	%		67.39	%
Return on average assets		0.87	%		0.96	%		0.98	%		0.92	%		1.05	%
Return on average shareholders' equity		9.76	%		9.26	%		9.51	%		9.05	%		10.46	%
Noninterest income as a percentage of operating revenues		20.43	%		21.26	%		20.05	%		20.79	%		20.79	%
EQUITY MEASURES
Common shares outstanding at period end (in thousands)		41,067			41,028			40,988			40,770			40,691
Diluted weighted average common shares outstanding (in thousands)		40,824			40,742			40,456			40,374			40,228
Book value per common share	$	6.57		$	6.47		$	6.30		$	6.17		$	6.03
Tangible book value per common share *	$	6.52		$	6.41		$	6.24		$	6.11		$	5.96
Tangible common equity to tangible assets *		8.10	%		8.32	%		8.29	%		8.14	%		8.02	%
Tangible equity to tangible assets *		8.10	%		10.13	%		10.14	%		10.01	%		9.92	%
Tier 1 capital ratio		**			13.30	%		13.14	%		14.42	%		14.46	%
Total risk based capital ratio		**			16.47	%		14.11	%		15.67	%		15.71	%

* See accompanying Reconciliation of Non-GAAP Measures to GAAP

** Ratios unavailable at the time of release.

9 | Page

CoBiz Financial Inc.

September 30, 2015

(unaudited)

	At
	September 30,			June 30,			March 31,			December 31,			September 30,
(in thousands)	2015			2015			2015			2014			2014
PERIOD END BALANCES
Total assets	$	3,307,772		$	3,166,092		$	3,090,226		$	3,062,166		$	3,028,864
Investments		513,864			493,292			488,186			484,621			500,526
Loans		2,621,053			2,496,113			2,449,542			2,405,575			2,357,069
Intangible assets		2,076			2,226			2,376			2,526			2,676
Deposits		2,707,413			2,632,386			2,547,217			2,492,291			2,366,376
Subordinated debentures		131,178			131,159			72,166			72,166			72,166
Common shareholders' equity		269,969			265,307			258,291			251,431			245,392
Total shareholders' equity		269,969			322,645			315,629			308,769			302,730
Interest-earning assets		3,171,849			3,008,533			2,945,276			2,927,132			2,892,095
Interest-bearing liabilities		1,883,026			1,767,240			1,691,143			1,653,738			1,698,415
LOANS
Commercial	$	1,173,950		$	1,100,416		$	1,034,189		$	977,699		$	962,438
Real estate - mortgage		918,191			934,923			974,785			989,719			964,100
Construction & land		229,284			203,262			179,749			181,864			182,288
Consumer		244,994			212,730			213,543			207,955			202,414
Other		54,634			44,782			47,276			48,338			45,829
Gross loans		2,621,053			2,496,113			2,449,542			2,405,575			2,357,069
Less allowance for loan losses		(34,899)			(33,832)			(32,502)			(32,765)			(33,682)
Total net loans	$	2,586,154		$	2,462,281		$	2,417,040		$	2,372,810		$	2,323,387
Gross Loans - Colorado	$	1,798,543		$	1,744,418		$	1,729,317		$	1,732,453		$	1,717,764
Gross Loans - Arizona	$	822,510		$	751,695		$	720,225		$	673,122		$	639,305
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	832,131		$	770,076		$	687,199		$	661,519		$	619,377
Interest-bearing demand		572,848			618,272			589,401			531,365			509,352
Savings		18,540			19,384			16,811			15,236			19,091
Certificates of deposits under $100		22,220			22,487			23,405			24,184			24,971
Certificates of deposits $100 and over		100,958			105,111			113,030			122,216			127,054
Reciprocal CDARS		32,969			42,424			57,317			64,607			64,610
Total interest-bearing deposits		1,579,666			1,577,754			1,487,163			1,419,127			1,364,455
Noninterest-bearing demand deposits		1,127,747			1,054,632			1,060,054			1,073,164			1,001,921
Customer repurchase agreements		62,182			58,328			58,814			49,976			76,041
Total deposits and customer repurchase agreements	$	2,769,595		$	2,690,714		$	2,606,031		$	2,542,267		$	2,442,417
BALANCE SHEET AVERAGES
Average assets	$	3,181,097		$	3,076,682		$	3,038,010		$	3,003,084		$	2,983,493
Average investments		513,469			483,867			486,460			491,764			512,579
Average loans		2,539,774			2,467,522			2,409,171			2,360,469			2,327,777
Average deposits		2,631,887			2,588,477			2,495,616			2,450,685			2,351,330
Average subordinated debentures		131,167			76,056			72,166			72,166			72,166
Average shareholders' equity		282,686			319,664			312,757			306,226			299,404
Average interest-earning assets		3,080,460			2,975,133			2,916,283			2,877,329			2,860,327
Average interest-bearing liabilities		1,804,693			1,729,251			1,666,630			1,624,211			1,684,757
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	33,832		$	32,502		$	32,765		$	33,682		$	33,922
Provision for loan losses		762			1,057			(789)			(874)			(452)
Net recovery (charge-off)		305			273			526			(43)			212
Ending allowance for loan losses	$	34,899		$	33,832		$	32,502		$	32,765		$	33,682
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans	$	4,881		$	4,075		$	6,088		$	8,994		$	8,273
Loans 90 days or more past due and accruing interest		-			-			-			161			-
Total nonperforming loans		4,881			4,075			6,088			9,155			8,273
OREO and repossessed assets		5,481			5,786			5,786			5,819			3,750
Total nonperforming assets	$	10,362		$	9,861		$	11,874		$	14,974		$	12,023
Performing renegotiated loans	$	29,567		$	29,806		$	27,139		$	27,275		$	29,121
Classified loans	$	41,190		$	46,277		$	36,792		$	36,940		$	36,534
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.31	%		0.31	%		0.38	%		0.49	%		0.40	%
Nonperforming loans to total loans		0.19	%		0.16	%		0.25	%		0.38	%		0.35	%
Nonperforming loans and OREO to total loans and OREO		0.39	%		0.39	%		0.48	%		0.62	%		0.51	%
Allowance for loan and credit losses to total loans		1.33	%		1.36	%		1.33	%		1.36	%		1.43	%
Allowance for loan and credit losses to nonperforming loans		715.00	%		830.23	%		533.87	%		357.89	%		407.13	%

10 | Page

CoBiz Financial Inc.

September 30, 2015

(unaudited)

	For the three months ended,
	September 30, 2015							June 30, 2015							September 30, 2014
				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	$	27,217		$	17	0.24	%	$	23,744		$	15	0.25	%	$	19,971		$	23	0.45	%
Investment securities		513,469			3,540	2.76	%		483,867			3,350	2.77	%		512,579			3,775	2.95	%
Loans		2,539,774			28,162	4.34	%		2,467,522			28,014	4.49	%		2,327,777			26,458	4.45	%
Total interest-earning assets	$	3,080,460		$	31,719	4.04	%	$	2,975,133		$	31,379	4.18	%	$	2,860,327		$	30,256	4.15	%
Noninterest-earning assets		100,637							101,549							123,166
Total assets	$	3,181,097						$	3,076,682						$	2,983,493
Liabilities and Shareholders' Equity
Deposits
Money market	$	798,098		$	546	0.27	%	$	738,879		$	514	0.28	%	$	626,199		$	508	0.32	%
Interest-bearing demand		575,977			193	0.13	%		622,334			200	0.13	%		499,467			209	0.17	%
Savings		19,047			3	0.06	%		18,097			2	0.04	%		16,791			3	0.07	%
Certificates of deposit
Reciprocal		37,333			19	0.20	%		52,391			31	0.24	%		64,174			51	0.32	%
Under $100		22,401			22	0.39	%		23,008			23	0.40	%		25,096			35	0.55	%
$100 and over		103,636			133	0.51	%		109,321			142	0.52	%		143,040			164	0.45	%
Total interest-bearing deposits	$	1,556,492		$	916	0.23	%	$	1,564,030		$	912	0.23	%	$	1,374,767		$	970	0.28	%
Other borrowings
Securities sold under agreements to repurchase		60,687			9	0.06	%		61,626			9	0.06	%		92,429			31	0.13	%
Other short-term borrowings		56,347			37	0.26	%		27,539			19	0.27	%		145,395			103	0.28	%
Long term-debt		131,167			1,848	5.51	%		76,056			1,032	5.37	%		72,166			1,039	5.63	%
Total interest-bearing liabilities	$	1,804,693		$	2,810	0.61	%	$	1,729,251		$	1,972	0.45	%	$	1,684,757		$	2,143	0.50	%
Noninterest-bearing demand accounts		1,075,395							1,024,447							976,563
Total deposits and interest-bearing liabilities		2,880,088							2,753,698							2,661,320
Other noninterest-bearing liabilities		18,323							3,320							22,769
Total liabilities		2,898,411							2,757,018							2,684,089
Total equity		282,686							319,664							299,404
Total liabilities and equity	$	3,181,097						$	3,076,682						$	2,983,493
Net interest income - taxable equivalent				$	28,909						$	29,407						$	28,113
Net interest spread						3.43	%						3.73	%						3.65	%
Net interest margin						3.72	%						3.96	%						3.90	%
Ratio of average interest-earning assets to average interest-bearing liabilities		170.69	%						172.05	%						169.78	%

11 | Page

	For the nine months ended September 30,
	2015							2014
				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	$	25,524		$	44	0.23	%	$	18,976		$	71	0.49	%
Investment securities		494,697			10,417	2.81	%		533,289			12,156	3.04	%
Loans		2,472,634			83,773	4.47	%		2,225,159			75,316	4.46	%
Total interest-earning assets	$	2,992,855		$	94,234	4.16	%	$	2,777,424		$	87,543	4.16	%
Noninterest-earning assets		106,265							121,487
Total assets	$	3,099,120						$	2,898,911
Liabilities and Shareholders' Equity
Deposits
Money market	$	740,002		$	1,549	0.28	%	$	598,761		$	1,437	0.32	%
Interest-bearing demand		586,461			587	0.13	%		474,646			690	0.19	%
Savings		17,768			7	0.05	%		14,607			7	0.06	%
Certificates of deposit
Reciprocal		48,689			84	0.23	%		71,253			174	0.33	%
Under $100		23,044			69	0.40	%		32,131			94	0.39	%
$100 and over		110,927			426	0.51	%		131,683			513	0.52	%
Total interest-bearing deposits	$	1,526,891		$	2,722	0.24	%	$	1,323,081		$	2,915	0.29	%
Other borrowings
Securities sold under agreements to repurchase		59,029			28	0.06	%		92,148			138	0.20	%
Other short-term borrowings		54,766			107	0.26	%		121,352			250	0.27	%
Long term-debt		93,346			3,888	5.49	%		72,166			3,083	5.63	%
Total interest-bearing liabilities	$	1,734,032		$	6,745	0.52	%	$	1,608,747		$	6,386	0.53	%
Noninterest-bearing demand accounts		1,045,603							975,765
Total deposits and interest-bearing liabilities		2,779,635							2,584,512
Other noninterest-bearing liabilities		14,559							22,545
Total liabilities		2,794,194							2,607,057
Total equity		304,926							291,854
Total liabilities and equity	$	3,099,120						$	2,898,911
Net interest income - taxable equivalent				$	87,489						$	81,157
Net interest spread						3.64	%						3.64	%
Net interest margin						3.91	%						3.91	%
Ratio of average interest-earning assets to average interest-bearing liabilities		172.60	%						172.65	%

12 | Page

CoBiz Financial Inc.

September 30, 2015

(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
		September 30,			June 30,			March 31,			December 31,			September 30,
		2015			2015			2015			2014			2014
	Shareholders' equity as reported - GAAP	$	269,969		$	322,645		$	315,629		$	308,769		$	302,730
	Intangible assets		(2,076)			(2,226)			(2,376)			(2,526)			(2,676)
A	Tangible equity - non-GAAP		267,893			320,419			313,253			306,243			300,054
	Preferred stock		-			(57,338)			(57,338)			(57,338)			(57,338)
B	Tangible common equity - non-GAAP	$	267,893		$	263,081		$	255,915		$	248,905		$	242,716
	Total assets as reported - GAAP	$	3,307,772		$	3,166,092		$	3,090,226		$	3,062,166		$	3,028,864
	Intangible assets		(2,076)			(2,226)			(2,376)			(2,526)			(2,676)
C	Total tangible assets - non-GAAP	$	3,305,696		$	3,163,866		$	3,087,850		$	3,059,640		$	3,026,188
D	Common shares outstanding		41,067			41,028			40,988			40,770			40,691
B / C	Tangible common equity to tangible assets - non-GAAP		8.10	%		8.32	%		8.29	%		8.14	%		8.02	%
A / C	Tangible equity to tangible assets - non-GAAP		8.10	%		10.13	%		10.14	%		10.01	%		9.92	%
B / D	Tangible book value per common share - non-GAAP	$	6.52		$	6.41		$	6.24		$	6.11		$	5.96

13 | Page