Exhibit 99.1
CoBiz Inc. Reports 23% Diluted EPS Growth for the Third Quarter 2006
Denver — CoBiz Inc. (Nasdaq: COBZ), a financial services holding company with $2.1 billion in assets, reported third quarter 2006 diluted EPS of $0.27, an increase of 22.7% from third quarter 2005 diluted EPS of $0.22. For the year-to-date 2006 period, diluted EPS was $0.74, an increase of 19.4% from 2005 year-to-date diluted EPS of $0.62. Return on average equity was 16.6% for the current quarter versus 14.9% a year earlier, and 16.1% year-to-date versus 14.9% in the prior year’s period. Return on average assets was 1.18% for the current quarter versus 1.08% a year earlier, and 1.14% year-to-date versus 1.07% in the prior year’s period.
Third Quarter 2006 Highlights
(Compared with one year ago)
· Net interest income grew 10.2%
· Non-interest income increased 34.1%
· Average loans and deposits were up 20.5% and 12.4%, respectively
· Credit quality remains strong with 0.03% nonperforming assets to total assets
“Our performance this quarter highlights the strength of our franchise and the synergies we have built between our core banking and fee-based businesses,” said Chairman and CEO Steve Bangert. “The increased earnings across all operating segments of our company reflect the positive impact of our banking operations and our ongoing strategy to reduce our exposure to interest rates by increasing our non-interest income.”
Net Interest Income & Margin
Net interest income for the third quarter of 2006 increased to $20.2 million, up $1.9 million or 10.2% versus the third quarter of 2005. Year-to-date net interest income for 2006 was $58.6 million, up $6.3 million or 12.1% over the same period last year. These increases were primarily attributable to strong loan growth in both the Colorado and Arizona markets.
The net interest margin decreased during the third quarter, down 16 basis points compared to the prior year’s quarter (4.14% versus 4.30%) and down six basis points on a year-to-date basis compared to the same period in 2005 (4.19% versus 4.25%).
“Our net interest income growth was excellent during the third quarter and reflects the continued strong economy in both the Colorado and Arizona markets,” said Bangert. “However, the margin was slightly below our expectations due to the sizeable yield curve inversion during the quarter, the Federal Reserve’s decision to halt interest rate increases in early August, and continued competitive deposit pricing pressures in both of our markets.”
Non-Interest Income
Non-interest income for the third quarter of 2006 increased to $7.3 million, up $1.9 million or 34.1% over the third quarter of 2005. For the year-to-date period, non-interest income reached $20.8 million, an increase of $3.4 million or 19.3% versus the same period in 2005. As a percentage of total operating revenue, non-interest income increased to 26.5% in the third quarter of this year compared to 22.9% in the third quarter of 2005.
Each of the Company’s fee-based businesses posted increased revenue for the quarter. The Investment Banking Services and Insurance segments posted particularly strong increases of 46.2% and 47.6%, respectively, versus the same quarter in 2005. For the year, these two segments generated growth of 52.9% and 17.8%, respectively.
“We have been pleased with the growth in our insurance businesses, particularly the wealth transfer division at Financial Designs,” commented Bangert. “In addition, investment banking had a strong quarter and the pipeline at Green Manning & Bunch is very healthy and should translate into a good fourth quarter.”
Operating Expenses
Operating expenses increased $2.2 million or 14.7% versus the third quarter of 2005. On a year-to-date basis, operating expenses increased $5.4 million or 11.7%. The increase in expenses during both periods was due to increases in compensation, primarily from the continued hiring of seasoned bankers, bonuses paid in conjunction with the quarter’s increases in fee-based income and the impact of expensing stock-based compensation under SFAS 123(R).
The efficiency ratio decreased to 63.5% during the third quarter of 2006 versus 64.2% in the prior year’s quarter. For the year, the efficiency ratio is 64.0% versus 65.2% in the same period of 2005.
Loans and Deposits
Average loan balances were $1.48 billion during the quarter, an increase of $248.4 million or 20.2% over balances of $1.23 billion one year ago. Arizona Business Bank grew its loan balances by 29.0% on a period-ending basis while Colorado Business Bank experienced 14.7% growth. On a dollar basis, the growth was evenly split between the two markets. Loan balances grew at a 16.7% annualized pace during the third quarter, with Arizona and Colorado increasing 28.1% and 10.7%, respectively.
Average deposit balances were $1.40 billion during the quarter, an increase of $113.0 million or 8.7% over balances of $1.29 billion one year ago. Period-ending deposits and customer repurchase agreements grew $185.3 million or 12.7% versus the prior year’s
quarter. On this basis, the Colorado and Arizona banks grew balances by 13.1% and 11.3%, respectively.
“The loan growth in both of our markets was excellent during the third quarter, led by very strong growth in our C&I portfolio,” stated Bangert. “Although we continued to experience heightened competition for deposit balances during the quarter, the fourth quarter has historically been our strongest quarter for deposit gathering.”
Credit Quality
Credit quality continued to be strong during the third quarter with nonperforming assets to total assets of three basis points (0.03%), a slight improvement from the prior year’s level of four basis points (0.04%). The allowance for loan and credit losses increased to $18.3 million at quarter-end, up $1.9 million from last year’s $16.4 million allowance. Contributing to the increase were loan recoveries of $0.4 million during the third quarter. For the year, the Company’s loan recoveries have exceeded loan charge-offs by $0.2 million.
The allowance for loan and credit losses as a percentage of total loans decreased to 1.21% at the end of the quarter, compared to 1.29% a year ago. The decrease in the percentage of allowance for loan and credit losses to total loans is consistent with the overall improvement in our credit quality measures.
Earnings Conference Call
In conjunction with this earnings release, you are invited to listen to the company’s conference call on Friday, October 20, 2006 at 11:00 am ET with Steve Bangert, CoBiz chairman and CEO. The call can be accessed over the Internet at http://www.videonewswire.com/event.asp?id=35785 or by telephone at (888) 868-9079 (conference ID #7888474). International callers may dial (973) 935-8510.
Contact Information
CoBiz Inc.
Lyne Andrich 303.312.3458
Sue Hermann 303.312.3488
About CoBiz Inc.
CoBiz Inc. (www.cobizinc.com) is a $2.1 billion financial holding company headquartered in Denver. The company operates Colorado Business Bank and Arizona Business Bank, full-service commercial banking institutions that offer a broad range of sophisticated banking services — including credit, treasury management, investment and deposit products — to a targeted customer base of professionals and small to mid-sized businesses. CoBiz also offers trust and fiduciary services through CoBiz Private Asset Management; property and casualty insurance brokerage and risk management consulting
services through CoBiz Insurance; investment banking services through Green Manning & Bunch; the management of stock and bond portfolios for individuals and institutions through Alexander Capital Management Group; and employee and executive benefits consulting and wealth transfer services through Financial Designs.
Forward-looking Information
This release contains forward-looking statements that describe CoBiz’s future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
· Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent 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 leases and related expenses.
· Our inability 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.
· 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 could increase costs, limit certain operations and adversely affect results of operations.
· Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly
update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands, except per share amounts)
| | Quarter Ended September 30, | | Nine Months Ended September 30, | |
| | 2006 | | 2005 | | 2006 | | 2005 | |
INCOME STATEMENT DATA | | | | | | | | | |
Interest income | | $ | 35,759 | | $ | 27,011 | | $ | 99,699 | | $ | 74,703 | |
Interest expense | | 15,595 | | 8,712 | | 41,114 | | 22,451 | |
NET INTEREST INCOME BEFORE PROVISION | | 20,164 | | 18,299 | | 58,585 | | 52,252 | |
Provision for loan and credit losses | | 75 | | 847 | | 1,162 | | 1,942 | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | | 20,089 | | 17,452 | | 57,423 | | 50,310 | |
Noninterest income | | 7,283 | | 5,430 | | 20,842 | | 17,464 | |
Noninterest expense | | 17,487 | | 15,243 | | 50,906 | | 45,556 | |
INCOME BEFORE INCOME TAXES | | 9,885 | | 7,639 | | 27,359 | | 22,218 | |
Provision for income taxes | | 3,629 | | 2,595 | | 10,018 | | 7,942 | |
NET INCOME | | $ | 6,256 | | $ | 5,044 | | $ | 17,341 | | $ | 14,276 | |
| | | | | | | | | |
EARNINGS PER COMMON SHARE | | | | | | | | | |
BASIC | | $ | 0.28 | | $ | 0.23 | | $ | 0.77 | | $ | 0.64 | |
DILUTED | | $ | 0.27 | | $ | 0.22 | | $ | 0.74 | | $ | 0.62 | |
WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) | | | | | | | | | |
BASIC | | 22,612 | | 22,217 | | 22,504 | | 22,135 | |
DILUTED | | 23,437 | | 23,095 | | 23,322 | | 23,081 | |
| | | | | | | | | |
COMMON SHARES OUTSTANDING AT PERIOD END | | | | | | 22,650 | | 22,224 | |
BOOK VALUE PER SHARE - COMMON | | | | | | $ | 6.87 | | $ | 5.97 | |
| | | | | | | | | |
PERIOD END BALANCES | | | | | | | | | |
Total Assets | | | | | | $ | 2,130,468 | | $ | 1,864,518 | |
Loans (net) | | | | | | 1,498,779 | | 1,254,051 | |
Goodwill and Intangible Assets | | | | | | 41,662 | | 41,628 | |
Deposits | | | | | | 1,396,337 | | 1,312,458 | |
Junior Subordinated Debentures | | | | | | 72,166 | | 72,166 | |
Common Shareholders’ Equity | | | | | | 155,628 | | 132,632 | |
Interest-Earning Assets | | | | | | 1,974,052 | | 1,720,392 | |
Interest-Bearing Liabilities | | | | | | 1,518,651 | | 1,284,220 | |
| | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | |
Average Assets | | | | | | $ | 2,031,782 | | $ | 1,787,243 | |
Average Loans (net) | | | | | | 1,403,588 | | 1,163,400 | |
Average Deposits | | | | | | 1,371,748 | | 1,220,945 | |
Average Junior Subordinated Debentures | | | | | | 72,166 | | 69,346 | |
Average Common Shareholders’ Equity | | | | | | 143,965 | | 128,255 | |
Average Interest-Earning Assets | | | | | | 1,881,317 | | 1,652,586 | |
Average Interest-Bearing Liabilities | | | | | | 1,444,620 | | 1,252,024 | |
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands, except per share amounts)
| | Quarter Ended September 30, | | Nine Months Ended September 30, | |
| | 2006 | | 2005 | | 2006 | | 2005 | |
PROFITABILITY MEASURES | | | | | | | | | |
Net Interest Margin | | 4.14 | % | 4.30 | % | 4.19 | % | 4.25 | % |
Efficiency Ratio | | 63.54 | % | 64.18 | % | 64.00 | % | 65.15 | % |
Return on Average Assets | | 1.18 | % | 1.08 | % | 1.14 | % | 1.07 | % |
Return on Average Common Shareholders’ Equity | | 16.60 | % | 14.90 | % | 16.10 | % | 14.88 | % |
Noninterest Income as a Percentage of Operating Revenues | | 26.53 | % | 22.88 | % | 26.24 | % | 25.05 | % |
| | | | | | | | | |
CREDIT QUALITY | | | | | | | | | |
Nonperforming Loans | | | | | | | | | |
Loans 90 days or more past due and still accruing interest | | | | | | $ | 196 | | $ | 225 | |
Nonaccrual Loans | | | | | | 448 | | 480 | |
Total Nonperforming loans | | | | | | $ | 644 | | $ | 705 | |
Repossessed Assets | | | | | | — | | 6 | |
Total Nonperforming assets | | | | | | $ | 644 | | $ | 711 | |
| | | | | | | | | |
Charge-offs | | | | | | (288 | ) | (612 | ) |
Recoveries | | | | | | 512 | | 436 | |
Net Charge-Offs | | | | | | $ | 224 | | $ | (176 | ) |
| | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | |
Nonperforming Assets to Total Assets | | | | | | 0.03 | % | 0.04 | % |
Nonperforming Loans to Total Loans | | | | | | 0.04 | % | 0.06 | % |
Allowance for Loan and Credit Losses to Total Loans | | | | | | 1.21 | % | 1.29 | % |
Allowance for Loan and Credit Losses to Nonperforming Loans | | | | | | 2840.37 | % | 2331.91 | % |
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands)
| | Colorado | | Arizona | | Investment | | Investment | | | | Corporate | | | |
| | Business | | Business | | Banking | | Advisory | | | | Support and | | | |
| | Bank | | Bank | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Net interest income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2006 | | $ | 13,986 | | $ | 7,487 | | $ | 34 | | $ | 5 | | $ | (2 | ) | $ | (1,346 | ) | $ | 20,164 | |
Quarter ended June 30, 2006 | | $ | 13,999 | | $ | 6,852 | | $ | 7 | | $ | 6 | | $ | 2 | | $ | (1,304 | ) | $ | 19,562 | |
Annualized quarterly growth | | (.4 | )% | 36.8 | % | 1,530.3 | % | (66.1 | )% | (793.5 | )% | 12.8 | % | 12.2 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2005 | | $ | 13,333 | | $ | 5,923 | | $ | 4 | | $ | 3 | | $ | — | | $ | (964 | ) | $ | 18,299 | |
Annual growth | | 4.9 | % | 26.4 | % | 750.0 | % | 66.7 | % | (100.0 | )% | (39.6 | )% | 10.2 | % |
| | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2006 | | $ | 1,251 | | $ | 418 | | $ | 1,063 | | $ | 1,030 | | $ | 3,525 | | $ | (4 | ) | $ | 7,283 | |
Quarter ended June 30, 2006 | | $ | 1,135 | | $ | 361 | | $ | 1,908 | | $ | 1,042 | | $ | 2,766 | | $ | 7 | | $ | 7,219 | |
Annualized quarterly growth | | 40.5 | % | 62.6 | % | (175.7 | )% | (4.6 | )% | 108.9 | % | (623.4 | )% | 3.5 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2005 | | $ | 1,043 | | $ | 293 | | $ | 727 | | $ | 978 | | $ | 2,389 | | $ | — | | $ | 5,430 | |
Annual growth | | 19.9 | % | 42.7 | % | 46.2 | % | 5.3 | % | 47.6 | % | (100.0 | )% | 34.1 | % |
| | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2006 | | $ | 5,019 | | $ | 2,219 | | $ | (68 | ) | $ | 49 | | $ | 229 | | $ | (1,192 | ) | $ | 6,256 | |
Quarter ended June 30, 2006 | | $ | 4,583 | | $ | 2,101 | | $ | 317 | | $ | 25 | | $ | (14 | ) | $ | (1,206 | ) | $ | 5,806 | |
Annualized quarterly growth | | 37.7 | % | 22.3 | % | (481.8 | )% | 380.9 | % | (6,886.3 | )% | (4.6 | )% | 30.7 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2005 | | $ | 4,625 | | $ | 1,513 | | $ | (123 | ) | $ | 30 | | $ | (63 | ) | $ | (938 | ) | $ | 5,044 | |
Annual growth | | 8.5 | % | 46.7 | % | 44.7 | % | 63.3 | % | 463.5 | % | (27.1 | )% | 24.0 | % |
| | | | | | | | | | | | | | | |
Earnings Per Share (Diluted) | | | | | | | | | | | | | | | |
Quarter ended September 30, 2006 | | $ | 0.21 | | $ | 0.10 | | $ | — | | $ | — | | $ | 0.01 | | $ | (0.05 | ) | $ | 0.27 | |
Quarter ended June 30, 2006 | | $ | 0.20 | | $ | 0.09 | | $ | 0.01 | | $ | — | | $ | — | | $ | (0.05 | ) | $ | 0.25 | |
Annualized quarterly growth | | 19.8 | % | 44.1 | % | (396.7 | )% | — | | — | | .0 | % | 31.7 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2005 | | $ | 0.20 | | $ | 0.07 | | $ | (0.01 | ) | $ | — | | $ | — | | $ | (0.04 | ) | $ | 0.22 | |
Annual growth | | 5.0 | % | 42.9 | % | 100.0 | % | .0 | % | 100.0 | % | (25.0 | )% | 22.7 | % |
| | Colorado | | Arizona | | Investment | | Investment | | | | Corporate | | | |
| | Business | | Business | | Banking | | Advisory | | | | Support and | | | |
| | Bank | | Bank | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Total loans | | | | | | | | | | | | | | | |
At September 30, 2006 | | $ | 980,140 | | $ | 536,309 | | $ | — | | $ | — | | $ | — | | $ | 45 | | $ | 1,516,494 | |
At June 30, 2006 | | $ | 954,389 | | $ | 500,879 | | $ | — | | $ | — | | $ | — | | $ | 17 | | $ | 1,455,285 | |
Annualized quarterly growth | | 10.7 | % | 28.1 | % | — | | — | | — | | 653.5 | % | 16.7 | % |
| | | | | | | | | | | | | | | |
At September 30, 2005 | | $ | 854,627 | | $ | 415,791 | | $ | — | | $ | — | | $ | — | | $ | 73 | | $ | 1,270,491 | |
Annual growth | | 14.7 | % | 29.0 | % | .0 | % | .0 | % | .0 | % | (38.4 | )% | 19.4 | % |
| | | | | | | | | | | | | | | |
Total deposits and customer repurchase agreements | | | | | | | | | | | | | | | |
At September 30, 2006 | | $ | 1,318,720 | | $ | 323,130 | | $ | — | | $ | 833 | | $ | — | | $ | — | | $ | 1,642,683 | |
At June 30, 2006 | | $ | 1,332,349 | | $ | 311,744 | | $ | — | | $ | 891 | | $ | — | | $ | — | | $ | 1,644,984 | |
Annualized quarterly growth | | (4.1 | )% | 14.5 | % | — | | (25.8 | )% | — | | — | | (.6 | )% |
| | | | | | | | | | | | | | | |
At September 30, 2005 | | $ | 1,166,010 | | $ | 290,445 | | $ | — | | $ | 880 | | $ | — | | $ | — | | $ | 1,457,335 | |
Annual growth | | 13.1 | % | 11.3 | % | .0 | % | (5.3 | )% | .0 | % | .0 | % | 12.7 | % |
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands)
| | For the Quarter ended September 30, 2006 | |
| | Colorado | | Arizona | | Investment | | Investment | | | | Corporate | | | |
| | Business | | Business | | Banking | | Advisory | | | | Support and | | | |
| | Bank | | Bank | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | | | |
Total interest income | | $ | 25,817 | | $ | 9,816 | | $ | 34 | | $ | 5 | | $ | 2 | | $ | 85 | | $ | 35,759 | |
Total interest expense | | 11,831 | | 2,329 | | — | | — | | 4 | | 1,431 | | 15,595 | |
Net interest income | | 13,986 | | 7,487 | | 34 | | 5 | | (2 | ) | (1,346 | ) | 20,164 | |
Provision for credit losses | | (60 | ) | 150 | | — | | — | | — | | (15 | ) | 75 | |
Net interest income after provision for credit losses | | 14,046 | | 7,337 | | 34 | | 5 | | (2 | ) | (1,331 | ) | 20,089 | |
Noninterest income | | 1,251 | | 418 | | 1,063 | | 1,030 | | 3,525 | | (4 | ) | 7,283 | |
Noninterest expense and minority interest | | 2,788 | | 2,462 | | 1,135 | | 885 | | 3,005 | | 7,212 | | 17,487 | |
Income before income taxes | | 12,509 | | 5,293 | | (38 | ) | 150 | | 518 | | (8,547 | ) | 9,885 | |
Provision for income taxes | | 4,556 | | 2,002 | | (8 | ) | 58 | | 210 | | (3,189 | ) | 3,629 | |
Net income before management fees and overhead allocations | | $ | 7,953 | | $ | 3,291 | | $ | (30 | ) | $ | 92 | | $ | 308 | | $ | (5,358 | ) | $ | 6,256 | |
Management fees and overhead allocations, net of tax | | 2,934 | | 1,072 | | 38 | | 43 | | 79 | | (4,166 | ) | — | |
Net income | | $ | 5,019 | | $ | 2,219 | | $ | (68 | ) | $ | 49 | | $ | 229 | | $ | (1,192 | ) | $ | 6,256 | |
| | For the Quarter ended June 30, 2006 | |
| | Colorado | | Arizona | | Investment | | Investment | | | | Corporate | | | |
| | Business | | Business | | Banking | | Advisory | | | | Support and | | | |
| | Bank | | Bank | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | | | |
Total interest income | | $ | 24,417 | | $ | 8,749 | | $ | 7 | | $ | 6 | | $ | 2 | | $ | 37 | | $ | 33,218 | |
Total interest expense | | 10,418 | | 1,897 | | — | | — | | — | | 1,341 | | 13,656 | |
Net interest income | | 13,999 | | 6,852 | | 7 | | 6 | | 2 | | (1,304 | ) | 19,562 | |
Provision for credit losses | | 722 | | (35 | ) | — | | — | | — | | — | | 687 | |
Net interest income after provision for credit losses | | 13,277 | | 6,887 | | 7 | | 6 | | 2 | | (1,304 | ) | 18,875 | |
Noninterest income | | 1,135 | | 361 | | 1,908 | | 1,042 | | 2,766 | | 7 | | 7,219 | |
Noninterest expense and minority interest | | 2,594 | | 2,210 | | 1,324 | | 925 | | 2,634 | | 7,125 | | 16,812 | |
Income before income taxes | | 11,818 | | 5,038 | | 591 | | 123 | | 134 | | (8,422 | ) | 9,282 | |
Provision for income taxes | | 4,454 | | 1,908 | | 235 | | 53 | | 67 | | (3,241 | ) | 3,476 | |
Net income before management fees and overhead allocations | | $ | 7,364 | | $ | 3,130 | | $ | 356 | | $ | 70 | | $ | 67 | | $ | (5,181 | ) | $ | 5,806 | |
Management fees and overhead allocations, net of tax | | 2,781 | | 1,029 | | 39 | | 45 | | 81 | | (3,975 | ) | — | |
Net income | | $ | 4,583 | | $ | 2,101 | | $ | 317 | | $ | 25 | | $ | (14 | ) | $ | (1,206 | ) | $ | 5,806 | |
| | For the Quarter ended September 30, 2005 | |
| | Colorado | | Arizona | | Investment | | Investment | | | | Corporate | | | |
| | Business | | Business | | Banking | | Advisory | | | | Support and | | | |
| | Bank | | Bank | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | | | |
Total interest income | | $ | 19,757 | | $ | 7,216 | | $ | 4 | | $ | 3 | | $ | — | | $ | 31 | | $ | 27,011 | |
Total interest expense | | 6,424 | | 1,293 | | — | | — | | — | | 995 | | 8,712 | |
Net interest income | | 13,333 | | 5,923 | | 4 | | 3 | | — | | (964 | ) | 18,299 | |
Provision for credit losses | | 463 | | 434 | | — | | — | | — | | (50 | ) | 847 | |
Net interest income after provision for credit losses | | 12,870 | | 5,489 | | 4 | | 3 | | — | | (914 | ) | 17,452 | |
Noninterest income | | 1,043 | | 293 | | 727 | | 978 | | 2,389 | | — | | 5,430 | |
Noninterest expense and minority interest | | 3,040 | | 2,197 | | 877 | | 867 | | 2,384 | | 5,878 | | 15,243 | |
Income before income taxes | | 10,873 | | 3,585 | | (146 | ) | 114 | | 5 | | (6,792 | ) | 7,639 | |
Provision for income taxes | | 3,815 | | 1,341 | | (55 | ) | 46 | | 7 | | (2,559 | ) | 2,595 | |
Net income before management fees and overhead allocations | | $ | 7,058 | | $ | 2,244 | | $ | (91 | ) | $ | 68 | | $ | (2 | ) | $ | (4,233 | ) | $ | 5,044 | |
Management fees and overhead allocations, net of tax | | 2,433 | | 731 | | 32 | | 38 | | 61 | | (3,295 | ) | — | |
Net income | | $ | 4,625 | | $ | 1,513 | | $ | (123 | ) | $ | 30 | | $ | (63 | ) | $ | (938 | ) | $ | 5,044 | |
CoBiz Inc
September 30, 2006
(unaudited)
(Dollars in thousands)
| | Quarter ended September 30, | | Nine Months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2006 | | 2005 | | Amount | | % | | 2006 | | 2005 | | Amount | | % | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | |
Deposit service charges | | $ | 679 | | $ | 678 | | $ | 1 | | 0 | % | $ | 2,104 | | $ | 2,150 | | $ | (46 | ) | (2 | )% |
Other loan fees | | 186 | | 196 | | (10 | ) | (5 | )% | 555 | | 542 | | 13 | | 2 | % |
Investment advisory and trust income | | 1,030 | | 978 | | 52 | | 5 | % | 3,054 | | 2,945 | | 109 | | 4 | % |
Insurance income | | 3,525 | | 2,389 | | 1,136 | | 48 | % | 9,088 | | 7,712 | | 1,376 | | 18 | % |
Investment banking income | | 1,063 | | 727 | | 336 | | 46 | % | 4,118 | | 2,694 | | 1,424 | | 53 | % |
Other income | | 800 | | 462 | | 338 | | 73 | % | 1,923 | | 1,421 | | 502 | | 35 | % |
Gain on sale of other assets and securities | | — | | — | | — | | 100 | % | — | | — | | — | | 100 | % |
Total noninterest income | | $ | 7,283 | | $ | 5,430 | | $ | 1,853 | | 34 | % | $ | 20,842 | | $ | 17,464 | | $ | 3,378 | | 19 | % |
| | Quarter ended September 30, | | Nine Months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2006 | | 2005 | | Amount | | % | | 2006 | | 2005 | | Amount | | % | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 11,544 | | $ | 9,795 | | $ | 1,749 | | 18 | % | $ | 33,364 | | $ | 29,141 | | $ | 4,223 | | 14 | % |
Stock-based compensation | | 311 | | — | | 311 | | 100 | % | 855 | | — | | 855 | | 100 | % |
Occupancy expenses, premises and equipment | | 2,961 | | 2,814 | | 147 | | 5 | % | 8,517 | | 8,181 | | 336 | | 4 | % |
Amortization of intangibles | | 118 | | 137 | | (19 | ) | (14 | )% | 355 | | 415 | | (60 | ) | (14 | )% |
Other operating expenses | | 2,506 | | 2,484 | | 22 | | 1 | % | 7,742 | | 7,680 | | 62 | | 1 | % |
Loss on sale of other assets and securities | | 47 | | 13 | | 34 | | 262 | % | 73 | | 139 | | (66 | ) | (47 | )% |
Total noninterest expenses | | $ | 17,487 | | $ | 15,243 | | $ | 2,244 | | 15 | % | $ | 50,906 | | $ | 45,556 | | $ | 5,350 | | 12 | % |
| | September 30, 2006 | | December 31, 2005 | | September 30, 2005 | |
| | | | % of | | | | % of | | | | % of | |
| | Amount | | Portfolio | | Amount | | Portfolio | | Amount | | Portfolio | |
LOANS | | | | | | | | | | | | | |
Commercial | | $ | 451,593 | | 30.1 | % | $ | 421,497 | | 32.0 | % | $ | 412,121 | | 32.9 | % |
Real Estate - mortgage | | 706,749 | | 47.2 | % | 682,503 | | 51.9 | % | 647,614 | | 51.6 | % |
Real Estate - construction | | 280,437 | | 18.7 | % | 150,680 | | 11.5 | % | 135,585 | | 10.8 | % |
Consumer | | 64,269 | | 4.3 | % | 65,932 | | 5.0 | % | 63,108 | | 5.0 | % |
Other | | 13,446 | | 0.9 | % | 12,056 | | 0.9 | % | 12,063 | | 1.0 | % |
Gross loans | | 1,516,494 | | 101.2 | % | 1,332,668 | | 101.3 | % | 1,270,491 | | 101.3 | % |
Less allowance for loan losses | | (17,715 | ) | (1.2 | )% | (16,906 | ) | (1.3 | )% | (16,440 | ) | (1.3 | )% |
Net loans | | $ | 1,498,779 | | 100.0 | % | $ | 1,315,762 | | 100.0 | % | $ | 1,254,051 | | 100.0 | % |
| | September 30, 2006 | | December 31, 2005 | | September 30, 2005 | |
| | | | % of | | | | % of | | | | % of | |
| | Amount | | Portfolio | | Amount | | Portfolio | | Amount | | Portfolio | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | |
NOW and money market accounts | | $ | 500,262 | | 30.5 | % | $ | 502,283 | | 32.5 | % | $ | 470,358 | | 32.3 | % |
Savings | | 11,304 | | 0.7 | % | 8,461 | | 0.5 | % | 9,632 | | 0.7 | % |
Certificates of deposits under $100,000 | | 70,850 | | 4.3 | % | 81,336 | | 5.3 | % | 87,114 | | 6.0 | % |
Certificates of deposits $100,000 and over | | 376,350 | | 22.9 | % | 298,781 | | 19.4 | % | 311,567 | | 21.4 | % |
Total interest-bearing deposits | | 958,766 | | 58.4 | % | 890,861 | | 57.7 | % | 878,671 | | 60.3 | % |
Noninterest-bearing demand deposits | | 437,571 | | 26.6 | % | 436,091 | | 28.3 | % | 433,787 | | 29.8 | % |
Customer repurchase agreements | | 246,346 | | 15.0 | % | 216,725 | | 14.0 | % | 144,877 | | 9.9 | % |
Total deposits and customer repurchase agreements | | $ | 1,642,683 | | 100.0 | % | $ | 1,543,677 | | 100.0 | % | $ | 1,457,335 | | 100.0 | % |
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands)
| | For the quarter ended September 30, | |
| | | | 2006 | | | | | | 2005 | | | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | earned | | yield | | Average | | earned | | yield | |
| | Balance | | or paid | | or cost | | Balance | | or paid | | or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | $ | 7,068 | | $ | 120 | | 6.64 | % | $ | 2,750 | | $ | 48 | | 6.83 | % |
Investment securities | | 476,049 | | 5,595 | | 4.60 | % | 479,920 | | 4,616 | | 3.76 | % |
Loans | | 1,480,819 | | 30,172 | | 7.97 | % | 1,232,413 | | 22,448 | | 7.13 | % |
Allowance for loan losses | | (17,524 | ) | — | | | | (15,979 | ) | — | | | |
Total interest earning assets | | $ | 1,946,412 | | $ | 35,887 | | 7.21 | % | $ | 1,699,104 | | $ | 27,112 | | 6.24 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 46,342 | | | | | | 47,869 | | | | | |
Other | | 106,671 | | | | | | 98,255 | | | | | |
TOTAL ASSETS | | $ | 2,099,425 | | | | | | $ | 1,845,228 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market deposits | | $ | 508,351 | | $ | 3,611 | | 2.82 | % | $ | 458,639 | | $ | 2,071 | | 1.79 | % |
Savings deposits | | 10,319 | | 32 | | 1.23 | % | 10,195 | | 11 | | 0.43 | % |
Certificates of deposits | | | | | | | | | | | | | |
Under $100,000 | | 75,258 | | 796 | | 4.20 | % | 85,301 | | 639 | | 2.97 | % |
$100,000 and over | | 384,684 | | 4,584 | | 4.73 | % | 308,218 | | 2,412 | | 3.10 | % |
Total Interest-bearing deposits | | $ | 978,612 | | $ | 9,023 | | 3.66 | % | $ | 862,353 | | $ | 5,133 | | 2.36 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase and other short-term borrowings | | 454,215 | | 5,134 | | 4.42 | % | 342,351 | | 2,583 | | 2.95 | % |
Junior subordinated debentures | | 72,166 | | 1,438 | | 7.80 | % | 64,994 | | 996 | | 6.00 | % |
Total interest-bearing liabilities | | $ | 1,504,993 | | $ | 15,595 | | 4.09 | % | $ | 1,269,698 | | $ | 8,712 | | 2.71 | % |
Noninterest-bearing demand accounts | | 425,798 | | | | | | 429,100 | | | | | |
Total deposits and interest-bearing liabilities | | 1,930,791 | | | | | | 1,698,798 | | | | | |
Other noninterest-bearing liabilities | | 19,033 | | | | | | 12,089 | | | | | |
Total liabilities and preferred securities | | 1,949,824 | | | | | | 1,710,887 | | | | | |
Shareholders’ equity | | 149,601 | | | | | | 134,341 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,099,425 | | | | | | $ | 1,845,228 | | | | | |
Net interest income | | | | $ | 20,292 | | | | | | $ | 18,400 | | | |
Net interest spread | | | | | | 3.12 | % | | | | | 3.53 | % |
Net interest margin | | | | | | 4.14 | % | | | | | 4.30 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 129.33 | % | | | | | 133.82 | % | | | | |
CoBiz Inc.
September 30, 2006
(unaudited)
(Dollars in thousands)
| | For the nine months ended September 30, | |
| | | | 2006 | | | | | | 2005 | | | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | earned | | yield | | Average | | earned | | yield | |
| | Balance | | or paid | | or cost | | Balance | | or paid | | or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | $ | 6,275 | | $ | 297 | | 6.32 | % | $ | 3,629 | | $ | 166 | | 6.12 | % |
Investment securities | | 471,454 | | 15,992 | | 4.54 | % | 485,557 | | 13,633 | | 3.75 | % |
Loans | | 1,420,812 | | 83,792 | | 7.88 | % | 1,178,780 | | 61,226 | | 6.94 | % |
Allowance for loan losses | | (17,224 | ) | — | | | | (15,380 | ) | — | | | |
Total interest earning assets | | $ | 1,881,317 | | $ | 100,081 | | 7.11 | % | $ | 1,652,586 | | $ | 75,025 | | 6.07 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 47,135 | | | | | | 40,978 | | | | | |
Other | | 103,330 | | | | | | 93,679 | | | | | |
TOTAL ASSETS | | $ | 2,031,782 | | | | | | $ | 1,787,243 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market deposits | | $ | 510,395 | | $ | 10,034 | | 2.63 | % | $ | 451,824 | | $ | 4,837 | | 1.43 | % |
Savings deposits | | 8,994 | | 61 | | 0.91 | % | 10,878 | | 30 | | 0.37 | % |
Certificates of deposits | | | | | | | | | | | | | |
Under $100,000 | | 79,151 | | 2,317 | | 3.91 | % | 82,778 | | 1,691 | | 2.73 | % |
$100,000 and over | | 346,150 | | 11,227 | | 4.34 | % | 280,502 | | 5,834 | | 2.78 | % |
Total Interest-bearing deposits | | $ | 944,690 | | $ | 23,639 | | 3.35 | % | $ | 825,982 | | $ | 12,392 | | 2.01 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase and other short-term borrowings | | 427,764 | | 13,453 | | 4.20 | % | 356,696 | | 6,840 | | 2.56 | % |
Junior subordinated debentures | | 72,166 | | 4,022 | | 7.45 | % | 69,346 | | 3,219 | | 6.21 | % |
Total interest-bearing liabilities | | $ | 1,444,620 | | $ | 41,114 | | 3.80 | % | $ | 1,252,024 | | $ | 22,451 | | 2.40 | % |
Noninterest-bearing demand accounts | | 427,058 | | | | | | 394,963 | | | | | |
Total deposits and interest-bearing liabilities | | 1,871,678 | | | | | | 1,646,987 | | | | | |
Other noninterest-bearing liabilities | | 16,139 | | | | | | 12,001 | | | | | |
Total liabilities and preferred securities | | 1,887,817 | | | | | | 1,658,988 | | | | | |
Shareholders’ equity | | 143,965 | | | | | | 128,255 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,031,782 | | | | | | $ | 1,787,243 | | | | | |
Net interest income | | | | $ | 58,967 | | | | | | $ | 52,574 | | | |
Net interest spread | | | | | | 3.31 | % | | | | | 3.67 | % |
Net interest margin | | | | | | 4.19 | % | | | | | 4.25 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 130.23 | % | | | | | 131.99 | % | | | | |