Exhibit 99.1
CoBiz Financial Reports Third Quarter 2008 Results
Announces successful completion of $20.4 million capital raise
Denver — CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.6 billion in assets, reported third quarter 2008 diluted earnings per share (EPS) of $0.18, consistent with the second quarter of 2008 and $0.25 diluted EPS a year ago. Net income was $4.2 million in the second and third quarters of 2008 vs. $6.0 million for the third quarter of 2007. For the nine months ended September 30, 2008, net income was $9.9 million vs. $17.6 million for the comparable period in 2007.
Financial Performance – Third Quarter 2008
• Net income of $4.2 million, or $0.18 per diluted share, unchanged from the second quarter of 2008 (linked-quarter).
• Commercial banking improved $0.03 per diluted share, however, the Investment Banking segment’s contribution decreased by $0.05 per diluted share on a linked quarter basis.
• Stable net interest margin on a linked-quarter basis: 4.13% in third quarter of 2008 vs. 4.11% in the second quarter.
• Noninterest income as a percentage of operating revenues was 27.9% for the third quarter.
• Quarterly loan growth of $40.5 million or 8.2% annualized; year over year loan growth of $253.4 million, or 14.5%.
• Deposits and customer repurchase agreements (Customer Repo) increased by $93.9 million from the second quarter and $11.5 million from September 2007.
• Provision for loan and credit losses of $5.4 million (pre-tax) for the current quarter, as compared to $5.6 million for the second quarter of 2008, and $1.4 million for the third quarter of 2007.
• Net loan charge-offs of $3.4 million for the third quarter, or 0.17% of average loans for the quarter; net charge-offs for the nine months ended September 30, 2008 totaled $8.7 million, or 0.45% of year-to-date average loans.
• Nonperforming assets to total assets at 1.19%.
• Allowance for loan and credit losses (Allowance) increased to 1.40% of total loans as compared to 1.32% as of June 30, 2008 and 1.10% as of September 30, 2007.
• Third quarter results include a $0.8 million pre-tax loss on the sale of OREO that occurred subsequent to quarter-end, or $0.02 per diluted share.
• The Company recognized a $0.3 million pre-tax OTTI loss on Fannie Mae preferred stock, or $0.01 per diluted share.
• Issuance of $20.4 million of privately placed subordinated debentures.
“I remain encouraged by the fundamentals of our earnings during this time of national and international economic uncertainty,” said Chairman and CEO Steve Bangert. “We continue to see growth in our loan portfolio and maintain a very stable and healthy net interest margin. However, because of the economic environment, we have maintained a prudent Allowance to Total Loans coverage that has increased to 1.40% from 1.10% to reflect our current portfolio. I expect to exit the current credit cycle in a position of
strength, and look forward to the earnings momentum we will gain when our credit costs return to a more normalized level.”
“During the third quarter, we announced the successful completion of $20.4 million of privately placed subordinated debentures. I believe our ability to raise additional capital during a very difficult climate for the industry is a testament to the franchise,” said Bangert. “The capital raised will allow us to pursue future growth opportunities and emerge through these turbulent times a stronger institution.”
Loans
Loans (for Colorado Business Bank and Arizona Business Bank, collectively, the Bank) ended the period just over $2.0 billion, an increase of $253.4 million, or 14.5%, over the same period in 2007. As expected, loan growth tempered during the third quarter of 2008 with a net increase of $40.5 million, or 8.2% annualized, as compared to a very strong second quarter that had net growth of $85.9 million, or 18.4% annualized. Most of the growth came from Term Commercial Mortgages. The majority of the growth in Term Commercial Mortgages relates to owner-occupied buildings closely tied to our C&I portfolio. Construction loans were down for the period, and continue to be reduced as a percentage of the total portfolio, accounting for 15.5% of net loans as of September 30, 2008 vs. 17.3% a year earlier.
Deposits and Customer Repo Balances
Deposit and Customer Repo balances ended the period at $1.9 billion, an increase of $11.5 million from the same period in 2007. On a linked-quarter basis, Deposit and Customer Repo balances increased by $93.9 million. The majority of the change is attributed to an increased utilization of brokered deposits in the Bank’s funding mix, as the Bank shifted out of FHLB advances and Fed Funds Purchased. Brokered deposits totaled $122.1 million as of September 30, 2008, vs. $21.5 million as of June 30, 2008. Brokered funding represented 7.03% of total deposits as of the current quarter, but was only 1.30% as of the second quarter of 2008. Brokered funding was 7.58% of total deposits a year earlier.
This past quarter has been particularly challenging in terms of deposit generation. As a business bank, the vast majority of our depositors maintain balances well in excess of the FDIC insurance limits. The recent market turmoil has created a “flight to quality” mindset whereby customers are more concerned with perceived safety than rates earned on their investments. As a result, the Bank has migrated a significant portion of its core deposits from Money Market and NOW accounts into certificates of deposits (CDs) offered through the Certificate of Deposit Account Registry Service ® (CDARS) program.
The CDARS program is designed to provide full FDIC insurance on deposit amounts larger than the stated minimum by exchanging or reciprocating larger depository relationships with other member banks. Our depositors’ funds are broken into smaller amounts and placed with other banks that are members of the network. Each member bank issues CDs in amounts under $100,000, so the entire deposit is eligible for FDIC
insurance. CDARS are technically brokered deposits; however, the Company considers the reciprocal deposits placed through the CDARS program as core funding and does not report the balances as brokered sources in its internal or external financial reports. As of September 30, 2008, the Bank had $126.0 million of reciprocal CDARS deposits outstanding. In exchange for the protection of principal offered by the CDARS program, the Bank is able to pay a much lower interest rate on the depositors’ funds. Yields paid on CDs less than $100,000 have decreased by more than 80 basis points from the second quarter, helping to stabilize our net interest margin.
Allowance for Loan and Credit Losses and Credit Quality
Total nonperforming assets (NPAs) increased to $30.9 million at September 30, 2008, from $22.8 million at June 30, 2008. NPAs to total assets remains under peer group averages at 1.19% as of the current quarter. Nonperforming loans (NPLs) were $23.9 million as of September 30, 2008, or 1.19% of total loans. Included in our NPAs as of quarter end were four foreclosed properties (OREO) totaling $7.0 million, one of which was sold for a $0.8 million loss subsequent to quarter end, however, the loss was fully recognized in the third quarter. The remaining three properties, all located in Phoenix, have a carrying value of $5.2 million.
Our Arizona bank’s NPLs were $12.9 million, or 1.76% of its total loans as of September 30, 2008. The majority of Arizona’s problem loans continue to be concentrated within its Land Acquisition and Development (A&D) portfolio.
Approximately 63% of our total loans are within Colorado. Although that portfolio has seen modest deterioration, it continues to perform well overall. Colorado’s NPLs totaled $11.0 million at the end of the current quarter or 0.87% of its total loans. Over one-third of Colorado’s NPLs are attributed to a single credit – which was also included in our first and second quarter NPLs.
During the third quarter of 2008, we recorded a $5.4 million loan and credit loss provision, as compared to $5.6 million for the second quarter of 2008, and $1.4 million for the third quarter of 2007. The Company charged-off (net of recoveries) $3.4 million in loans during the third quarter of 2008, and $8.7 million for the nine months of 2008. For the year, the Company has provided $7.3 million more in provision for loan and credit losses than it has charged-off. As a result, the Allowance has increased to $28.0 million as of September 30, 2008, from $20.6 million as of December 31, 2007. The Company’s Allowance to total loans increased to 1.40% as of September 30, 2008 from 1.32% as of June 30, 2008 and 1.12% December 31, 2007. The Allowance is at 117.0% of NPLs as of the end of the third quarter of 2008.
Shareholders’ Equity and Regulatory Capital
As of the end of the third quarter, total Shareholders’ Equity was $194.5 million, or $8.33 per share. The Company’s total tangible equity was $142.9 million, and its tangible equity to tangible asset ratio was 5.59%.
Total Risk-Based Capital for the consolidated company increased by $25.0 million during the third quarter and by 178 basis points. The majority of the increase is attributed to the $20.4 million private offering of subordinated debt raised in the third quarter that qualifies as Tier II capital. In addition, the Company continues to have good internal capital generation to support its operations and common dividend program. The Company’s Board of Directors reaffirmed its quarterly common stock dividend, currently at $0.07 per share.
As of September 30, 2008, the Bank was well-capitalized with an expected Tier 1 Capital ratio of 10.61%, and Total Capital ratio of 11.86%. The minimum ratios to be considered well-capitalized under the risk-based capital standards are 6% and 10%, respectively. At the holding company level, the Company’s Tier 1 Capital ratio as of September 30, 2008, is expected to be 9.75%, and its Total Capital ratio 12.13%.
In light of the national financial crisis and the enactment of the Emergency Economic Stabilization Act of 2008, U.S. government agencies are taking various actions in an attempt to enhance financial stability. These include the U.S. Treasury Department’s Troubled Asset Relief Program Capital Purchase Program, which offers to all U.S. banking organizations the opportunity to issue and sell preferred stock, along with warrants to purchase common stock, to the U.S. Treasury on what may be considered attractive terms. In addition, the FDIC has initiated the Temporary Liquidity Guarantee Program that will provide a 100 percent guarantee for a limited period of time to noninterest bearing transaction deposits. Coverage under the Temporary Liquidity Guarantee Program is available for 30 days without charge and thereafter at a cost of 10 basis points per annum for noninterest bearing transaction deposits. Although the Company’s capital ratios remain well above the minimum levels required for well capitalized status and have not been adversely affected in any significant respect by the national financial crisis, we are assessing our participation in both programs but have not yet made a definitive decision as to whether we will participate.
Net Interest Income & Margin
Net interest income on a tax equivalent basis for the third quarter of 2008 increased to $24.4 million from $23.7 million for the second quarter of 2008, a 13.2% annualized increase. Net interest income on a tax equivalent basis was $22.4 million for the third quarter of 2007. During the third quarter, our net interest margin remained relatively steady at 4.13% vs. 4.11% as of the second quarter.
Average earning asset balances grew by $37.6 million on a linked-quarter basis, mainly due to $35.4 million in average loan growth. The net increase in earning assets was primarily funded by an increase in average other short-term borrowings of $54.2 million. Average noninterest-bearing demand deposits were down $6.9 million from the prior linked quarter. Yields on average earning assets decreased 8 basis points (0.08%) from the second quarter of 2008 to the third quarter of 2008, while rates paid on average interest-bearing liabilities decreased 16 basis points (0.16%). Deposit generation through the end of the third quarter remained a challenge as funds migrated to the safety of US Treasuries and to larger, national banks perceived as “too big to fail.” As a defensive
measure, the Company transferred client balances from Money Market and NOW accounts into CDARS. The result was a reduction in the cost of our interest-bearing deposits as the Company sets rates on its CDARS product generally slightly above that of a risk-free instrument.
Noninterest Income
Noninterest income improved significantly for the first nine months of 2008 to $28.4 million, from $20.0 million for the same period in 2007, an increase of 42.0%. Operating results for 2008 include noninterest income of $4.8 million from the Company’s two recent acquisitions: Wagner Investment Management, Inc. (Wagner) and Bernard Dietrich & Associates (renamed CoBiz Insurance-AZ). The transactions were completed on December 31, 2007 and January 2, 2008, respectively. Accordingly, their operating results are included in our 2008 totals, but not in any prior periods reported. As a percentage of total operating revenue, noninterest income was 28.9% for the nine months ended September 30, 2008 vs. 23.5% for the prior year period.
On a linked-quarter basis, noninterest income decreased by $2.2 million to $9.4 million in the third quarter from $11.6 million in the second quarter of 2008. The majority of the decrease was related to the Investment Banking segment.
Insurance
Insurance revenues were $3.7 million in the third quarter down from $4.2 million in the second quarter of 2008, and $2.1 million in the third quarter of 2007. Year-to-date, insurance revenues totaled $11.5 million vs. $7.2 million for the prior year period. For the first half of the year, CoBiz ranked first among bank holding companies in our asset class — assets less than $5 billion — in terms of insurance revenues. The Company ranked 20th among all U.S. financial institutions.
• The segment was positively affected by the addition of CoBiz Insurance-AZ, which contributed $3.3 million in revenue during 2008.
• CoBiz Insurance-CO generated $1.7 million in year-to-date revenue thus far, a 5.6% improvement over 2007. Revenue growth for the division continues to be difficult as premiums in the P&C marketplace continue to be very soft – with average commissions decreasing by 10-15% from the prior year.
• The Group Employee Benefits area continues to see steady revenue growth, and has improved revenues year-to-date by 8.6% over the same period in 2007 to $2.8 million.
• Revenue for the wealth transfer division increased by 26.5% in 2008 over the first nine months of 2007. Revenues from the division are transactional in nature, as estate planning goals are primarily achieved through the placement of life insurance. In 2007, the wealth transfer division had a disappointing year as several large cases did not close as a result of medical underwriting issues. However, based on the number and quality of cases currently in underwriting, Management expects the division’s full year 2008 results to significantly improve over its 2007 results.
Investment Banking
Investment banking revenues were $1.1 million for the third quarter, as compared to $3.2 million in the second quarter of 2008. Year-to-date, Investment Banking recognized $4.6 million in revenues vs. $4.4 million for the same period in 2007. The segment contributed $0.04 per diluted share in the second quarter of 2008, as compared to a net loss of $0.01 for the third quarter. Year-to-date, the segment earnings per share are $0.01.
The segment continues to have a diversified backlog of engaged transactions, however, a greater number of engaged deals are being placed on hold. Deal activity has moderated due to global economic slowdown and inflationary pressures that continue to strain financial performance of cyclical middle-market businesses. This combination of events may delay exits as business owners focus on their operations and wait for valuations to improve. As a consequence, Management remains cautious on the segment’s outlook for the next six to nine months.
Investment Advisory & Trust
The segment’s revenues were $1.5 million in the third quarter, 25.0% greater than the third quarter of 2007, but down $0.2 million from the second quarter of 2008. For the nine months ended September 30, 2008, the segment’s revenues were $4.9 million, as compared to $3.6 million for the nine months ended September 30, 2007. The Company closed the acquisition of Wagner as of December 31, 2007. The Wagner acquisition had no impact on the Company’s results of operation for 2007 but year-to-date has contributed $1.5 million in revenues to the segment in 2008.
Discretionary Assets under Management (AUM) were $833.5 million as of September 30, 2008. Total AUM, including custody and advisory assets, were $1.5 billion (including a very significant advisory client base on which we receive an hourly consulting fee, as opposed to a basis-point-fee on AUM).
In general, a decline in the broader equity market has negatively impacted the segment’s AUM levels. Existing discretionary assets have decreased due to negative equity returns and attracting new assets is proving to be difficult given general market conditions. Continued pressure on AUM levels continue to adversely impact revenue growth. The segment had a net operating loss of $0.1 million (pre-tax earnings before parent company management fees and allocations) for 2008 vs. a positive contribution of $0.3 million for the same period in 2007.
Deposit Service Charges
Deposit service charges are up 29.7% from the prior-year quarter, mainly due to treasury management analysis fees. Year-to-date, deposit service charges have increased by 32.3%. We provide customers with the option of paying for treasury
management services in cash or by maintaining additional noninterest-bearing account balances. The earnings credit rate applied to analysis balances has decreased as general interest rates have declined. As a result, we are collecting more of our fees in the form of “hard-dollar” cash, vs. “soft-dollar” compensating balances.
Other Income
Other income is comprised of increases in the cash surrender value of BOLI, earnings on equity method investments, merchant charges, bankcard fees, wire transfer fees, foreign exchange fees, safe deposit income and fees collected in conjunction with our customer hedge program. Other income was $1.8 million during the third quarter of 2008, an increase of $0.7 million over the second quarter of 2008 and $1.1 million over the comparable period in 2007. The increase was mainly attributed to earnings on equity method investments and the sale of interest-rate swaps to our customers.
Operating Expenses
Noninterest expenses for the first nine months of 2008 were $66.1 million, as compared to $54.7 million for the same period in 2007. Our 2008 noninterest expenses were affected by the acquisitions of Wagner and CoBiz Insurance-AZ. Combined, they added $1.3 million in operating expenses for the current quarter, and $4.3 million for the first nine months of 2008. Without Wagner and CoBiz Insurance-AZ, year-to-date noninterest expense increased 13.1% in 2008 over 2007.
Operating expenses totaled $21.7 million for the third quarter of 2008, a decrease of $0.8 million, or 3.4%, from the second quarter of 2008. Contributing to the linked-quarter decrease were:
• An net decrease in total salaries and benefits of $2.3 million:
• Fixed compensation components were down $0.2 million;
• Variable compensation expense was down $2.0 million due to the weaker commissionable income recognized in the quarter and lower accruals for discretionary management bonuses;
• Marketing related costs, primarily charitable donations, were down $0.2 million from the prior quarter.
These positive variances were off set by the following increases in noninterest expense during the period:
• Due to a reversal of provision for off-balance sheet credit losses in the second quarter, net off-balance sheet credit costs were up by $0.3 million;
• The third quarter includes an Other Than Temporary Impairment charge of $0.3 million on FNMA preferred securities;
• A $0.8 million loss was recognized on the disposal of an Arizona OREO property. In addition, the Company recorded nearly $0.3 million more in OREO and loan work-out expenses.
For the third quarter of 2008, our efficiency ratio improved to 61.3% from 64.1% from the second quarter of 2008. On a year-to-date basis, our efficiency ratio was 66.2%, an increase from 63.8% reported for the same period in 2007.
Economic Conditions
The economic situation for the company’s operations continues to be a disparate “tale of two cities.” The Denver metropolitan area posted positive year-over-year job growth of 1.9%, placing it in the top 10 nationally. Office and industrial vacancy rates remain stable with a positive absorption of 75,000 square feet (sq. ft.) of office space in the third quarter. Colorado is still viewed as a safe place to invest, with a number of companies continuing to relocate to or expand in the state.
The Phoenix metropolitan area, conversely, continues to struggle with year-over-year negative job growth of 1.9%, which was the second-highest in the nation. Negative job growth has been forecast for the rest of 2008 and all of 2009. Predictably, office and industrial vacancy rates are up 4.2% and 4.5%, respectively, year over year. It is expected that this year’s absorption of office space in Phoenix will be the lowest since 2002.
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, October 24, 2008 at 11:00 am ET with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=51621 or by telephone at 877.493.9121, (conference ID #65871999).
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. 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.
Contact Information
CoBiz Financial Inc.
Lyne Andrich 303.312.3458
Sue Hermann 303.312.3488
About CoBiz Financial
CoBiz Financial Inc. (www.cobizfinancial.com) is a $2.6 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 Trust; 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 CoBiz Trust, Alexander Capital Management Group and Wagner Investment Management, Inc.; and employee and executive benefits consulting and wealth transfer services through Financial Designs, Ltd.
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 “would”, “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 Financial Inc.
September 30, 2008
(unaudited)
| | Three months ended September 30, | | Nine months ended September 30, | |
(in thousands, except per share amounts) | | 2008 | | 2007 | | 2008 | | 2007 | |
INCOME STATEMENT DATA | | | | | | | | | |
Interest income | | $ | 36,052 | | $ | 39,703 | | $ | 109,088 | | $ | 114,346 | |
Interest expense | | 11,814 | | 17,413 | | 39,376 | | 49,336 | |
NET INTEREST INCOME BEFORE PROVISION | | 24,238 | | 22,290 | | 69,712 | | 65,010 | |
Provision for loan losses | | 5,335 | | 1,430 | | 16,352 | | 2,467 | |
NET INTEREST INCOME AFTER PROVISION | | 18,903 | | 20,860 | | 53,360 | | 62,543 | |
Noninterest income | | 9,385 | | 7,024 | | 28,378 | | 19,981 | |
Noninterest expense | | 21,703 | | 18,273 | | 66,085 | | 54,663 | |
INCOME BEFORE INCOME TAXES | | 6,585 | | 9,611 | | 15,653 | | 27,861 | |
Provision for income taxes | | 2,422 | | 3,604 | | 5,712 | | 10,311 | |
NET INCOME | | $ | 4,163 | | $ | 6,007 | | $ | 9,941 | | $ | 17,550 | |
| | | | | | | | | |
EARNINGS PER COMMON SHARE | | | | | | | | | |
BASIC | | $ | 0.18 | | $ | 0.25 | | $ | 0.43 | | $ | 0.74 | |
DILUTED | | $ | 0.18 | | $ | 0.25 | | $ | 0.43 | | $ | 0.72 | |
WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) | | | | | | | | | |
BASIC | | 23,104 | | 23,664 | | 23,063 | | 23,711 | |
DILUTED | | 23,232 | | 24,150 | | 23,240 | | 24,286 | |
| | | | | | | | | |
COMMON SHARES OUTSTANDING AT PERIOD END (in thousands) | | | | | | 23,361 | | 23,398 | |
BOOK VALUE PER COMMON SHARE | | | | | | $ | 8.33 | | $ | 8.21 | |
| | | | | | | | | |
PERIOD END BALANCES | | | | | | | | | |
Total Assets | | | | | | $ | 2,606,107 | | $ | 2,277,123 | |
Loans (net) | | | | | | 1,973,982 | | 1,729,750 | |
Goodwill and Intangible Assets | | | | | | 51,658 | | 42,064 | |
Deposits | | | | | | 1,737,262 | | 1,659,031 | |
Subordinated Debentures | | | | | | 92,550 | | 72,166 | |
Common Shareholders’ Equity | | | | | | 194,523 | | 192,024 | |
Interest-Earning Assets | | | | | | 2,399,121 | | 2,117,678 | |
Interest-Bearing Liabilities | | | | | | 1,951,678 | | 1,609,631 | |
| | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | |
Average Assets | | | | | | $ | 2,483,357 | | $ | 2,181,822 | |
Average Loans (net) | | | | | | 1,893,407 | | 1,602,710 | |
Average Deposits | | | | | | 1,754,675 | | 1,511,461 | |
Average Subordinated Debentures | | | | | | 74,742 | | 72,166 | |
Average Common Shareholders’ Equity | | | | | | 194,890 | | 189,446 | |
Average Interest-Earning Assets | | | | | | 2,296,221 | | 2,027,071 | |
Average Interest-Bearing Liabilities | | | | | | 1,838,793 | | 1,538,854 | |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
| | Three months ended September 30, | | Nine months ended September 30, | |
(in thousands) | | 2008 | | 2007 | | 2008 | | 2007 | |
PROFITABILITY MEASURES | | | | | | | | | |
Net Interest Margin | | 4.13 | % | 4.26 | % | 4.09 | % | 4.32 | % |
Efficiency Ratio | | 61.28 | % | 61.77 | % | 66.19 | % | 63.82 | % |
Return on Average Assets | | 0.65 | % | 1.06 | % | 0.54 | % | 1.08 | % |
Return on Average Common Shareholders’ Equity | | 8.49 | % | 12.29 | % | 6.81 | % | 12.39 | % |
Noninterest Income as a Percentage of Operating Revenues | | 27.91 | % | 23.96 | % | 28.93 | % | 23.51 | % |
| | | | | | | | | |
CREDIT QUALITY | | | | | | | | | |
Nonperforming Loans | | | | | | | | | |
Loans 90 days or more past due and accruing interest | | | | | | $ | 1,650 | | $ | 844 | |
Nonaccrual loans | | | | | | 22,254 | | 719 | |
Total nonperforming loans | | | | | | $ | 23,904 | | $ | 1,563 | |
Repossessed Assets | | | | | | 7,008 | | 447 | |
Total nonperforming assets | | | | | | $ | 30,912 | | $ | 2,010 | |
| | | | | | | | | |
Charge-offs | | | | | | (8,820 | ) | (1,803 | ) |
Recoveries | | | | | | 127 | | 48 | |
Net Charge-offs | | | | | | $ | (8,693 | ) | $ | (1,755 | ) |
| | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | |
Nonperforming Assets to Total Assets | | | | | | 1.19 | % | 0.09 | % |
Nonperforming Loans to Total Loans | | | | | | 1.19 | % | 0.09 | % |
Nonperforming Loans and OREO to Total Loans and OREO | | | | | | 1.54 | % | 0.11 | % |
Allowance for Loan and Credit Losses to Total Loans | | | | | | 1.40 | % | 1.10 | % |
Allowance for Loan and Credit Losses to Nonperforming Loans | | | | | | 116.98 | % | 1225.85 | % |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
| | | | Investment | | Investment | | | | Corporate | | | |
| | Commercial | | Banking | | Advisory | | | | Support and | | | |
(in thousands, except per share amounts) | | Banking | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Net interest income | | | | | | | | | | | | | |
Quarter ended September 30, 2008 | | $ | 25,516 | | $ | 11 | | $ | — | | $ | (2 | ) | $ | (1,287 | ) | $ | 24,238 | |
Quarter ended June 30, 2008 | | 24,606 | | 12 | | (4 | ) | (2 | ) | (1,116 | ) | 23,496 | |
Annualized quarterly growth | | 14.7 | % | (33.2 | )% | 397.8 | % | .0 | % | (61.0 | )% | 12.6 | % |
| | | | | | | | | | | | | |
Quarter ended September 30, 2007 | | $ | 23,680 | | $ | 34 | | $ | — | | $ | 1 | | $ | (1,425 | ) | $ | 22,290 | |
Annual growth | | 7.8 | % | (67.6 | )% | .0 | % | (300.0 | )% | 9.7 | % | 8.7 | % |
| | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | |
Quarter ended September 30, 2008 | | $ | 3,048 | | $ | 1,062 | | $ | 1,517 | | $ | 3,743 | | $ | 15 | | $ | 9,385 | |
Quarter ended June 30, 2008 | | 2,502 | | 3,196 | | 1,739 | | 4,153 | | (20 | ) | 11,570 | |
Annualized quarterly growth | | 86.8 | % | (265.6 | )% | (50.8 | )% | (39.3 | )% | 696.2 | % | (75.1 | )% |
| | | | | | | | | | | | | |
Quarter ended September 30, 2007 | | $ | 1,662 | | $ | 2,059 | | $ | 1,214 | | $ | 2,089 | | $ | — | | $ | 7,024 | |
Annual growth | | 83.4 | % | (48.4 | )% | 25.0 | % | 79.2 | % | 100.0 | % | 33.6 | % |
| | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | |
Quarter ended September 30, 2008 | | $ | 5,292 | | $ | (235 | ) | $ | (140 | ) | $ | 25 | | $ | (779 | ) | $ | 4,163 | |
Quarter ended June 30, 2008 | | 4,659 | | 901 | | (79 | ) | 83 | | (1,381 | ) | 4,183 | |
Annualized quarterly growth | | 54.1 | % | (501.6 | )% | (307.2 | )% | (278.0 | )% | 173.4 | % | (1.9 | )% |
| | | | | | | | | | | | | |
Quarter ended September 30, 2007 | | $ | 7,272 | | $ | 351 | | $ | 12 | | $ | (219 | ) | $ | (1,409 | ) | $ | 6,007 | |
Annual growth | | (27.2 | )% | (167.0 | )% | (1,266.7 | )% | 111.4 | % | 44.7 | % | (30.7 | )% |
| | | | | | | | | | | | | |
Earnings per share (diluted) | | | | | | | | | | | | | |
Quarter ended September 30, 2008 | | $ | 0.23 | | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | | $ | (0.03 | ) | $ | 0.18 | |
Quarter ended June 30, 2008 | | 0.20 | | 0.04 | | (0.00 | ) | 0.00 | | (0.06 | ) | 0.18 | |
Annualized quarterly growth | | 57.9 | % | (500.3 | )% | (770.8 | )% | (397.8 | )% | 197.3 | % | (.6 | )% |
| | | | | | | | | | | | | |
Quarter ended September 30, 2007 | | $ | 0.30 | | $ | 0.01 | | $ | — | | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.25 | |
Annual growth | | (23.3 | )% | (200.0 | )% | (100.0 | )% | 100.0 | % | 40.0 | % | (28.0 | )% |
| | | | Investment | | Investment | | | | Corporate | | | |
| | Commercial | | Banking | | Advisory | | | | Support and | | | |
(in thousands) | | Banking | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Total loans | | | | | | | | | | | | | |
At September 30, 2008 | | | | | | | | | | | | $ | 2,001,685 | |
At June 30, 2008 | | | | | | | | | | | | 1,961,177 | |
Annualized quarterly growth | | | | | | | | | | | | 8.2 | % |
| | | | | | | | | | | | | |
At September 30, 2007 | | | | | | | | | | | | $ | 1,748,333 | |
Annual growth | | | | | | | | | | | | 14.5 | % |
| | | | | | | | | | | | | |
Total deposits and customer repurchase agreements | | | | | | | | | | | | | |
At September 30, 2008 | | | | | | | | | | | | $ | 1,877,526 | |
At June 30, 2008 | | | | | | | | | | | | 1,783,650 | |
Annualized quarterly growth | | | | | | | | | | | | 20.9 | % |
| | | | | | | | | | | | | |
At September 30, 2007 | | | | | | | | | | | | $ | 1,866,004 | |
Annual growth | | | | | | | | | | | | .6 | % |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
Three Months Ended September 30, 2008
| | | | Investment | | Investment | | | | Corporate | | | |
| | Commercial | | Banking | | Advisory | | | | Support and | | | |
(in thousands) | | Banking | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | |
Total interest income | | $ | 36,012 | | $ | 11 | | $ | — | | $ | — | | $ | 29 | | $ | 36,052 | |
Total interest expense | | 10,496 | | — | | — | | 2 | | 1,316 | | 11,814 | |
Net interest income | | 25,516 | | 11 | | — | | (2 | ) | (1,287 | ) | 24,238 | |
Provision for loan losses | | 5,335 | | — | | — | | — | | — | | 5,335 | |
Net interest income after provision | | 20,181 | | 11 | | — | | (2 | ) | (1,287 | ) | 18,903 | |
Noninterest income | | 3,048 | | 1,062 | | 1,517 | | 3,743 | | 15 | | 9,385 | |
Noninterest expense | | 8,485 | | 1,369 | | 1,570 | | 3,488 | | 6,791 | | 21,703 | |
Income before income taxes | | 14,744 | | (296 | ) | (53 | ) | 253 | | (8,063 | ) | 6,585 | |
Provision for income taxes | | 5,680 | | (102 | ) | 7 | | 127 | | (3,290 | ) | 2,422 | |
Net income before management fees and overhead allocations | | $ | 9,064 | | $ | (194 | ) | $ | (60 | ) | $ | 126 | | $ | (4,773 | ) | $ | 4,163 | |
Management fees and overhead allocations, net of tax | | 3,772 | | 41 | | 80 | | 101 | | (3,994 | ) | — | |
Net income | | $ | 5,292 | | $ | (235 | ) | $ | (140 | ) | $ | 25 | | $ | (779 | ) | $ | 4,163 | |
Three Months Ended June 30, 2008
| | | | Investment | | Investment | | | | Corporate | | | |
| | Commercial | | Banking | | Advisory | | | | Support and | | | |
| | Banking | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | |
Total interest income | | $ | 35,597 | | $ | 12 | | $ | — | | $ | — | | $ | 30 | | $ | 35,639 | |
Total interest expense | | 10,991 | | — | | 4 | | 2 | | 1,146 | | 12,143 | |
Net interest income | | 24,606 | | 12 | | (4 | ) | (2 | ) | (1,116 | ) | 23,496 | |
Provision for loan losses | | 5,986 | | — | | — | | — | | — | | 5,986 | |
Net interest income after provision | | 18,620 | | 12 | | (4 | ) | (2 | ) | (1,116 | ) | 17,510 | |
Noninterest income | | 2,502 | | 3,196 | | 1,739 | | 4,153 | | (20 | ) | 11,570 | |
Noninterest expense | | 7,546 | | 1,679 | | 1,703 | | 3,839 | | 7,710 | | 22,477 | |
Income before income taxes | | 13,576 | | 1,529 | | 32 | | 312 | | (8,846 | ) | 6,603 | |
Provision for income taxes | | 5,031 | | 588 | | 22 | | 130 | | (3,351 | ) | 2,420 | |
Net income before management fees and overhead allocations | | $ | 8,545 | | $ | 941 | | $ | 10 | | $ | 182 | | $ | (5,495 | ) | $ | 4,183 | |
Management fees and overhead allocations, net of tax | | 3,886 | | 40 | | 89 | | 99 | | (4,114 | ) | — | |
Net income | | $ | 4,659 | | $ | 901 | | $ | (79 | ) | $ | 83 | | $ | (1,381 | ) | $ | 4,183 | |
Three Months Ended September 30, 2007
| | | | Investment | | Investment | | | | Corporate | | | |
| | Commercial | | Banking | | Advisory | | | | Support and | | | |
| | Banking | | Services | | and Trust | | Insurance | | Other | | Consolidated | |
Income Statement | | | | | | | | | | | | | |
Total interest income | | $ | 39,626 | | $ | 34 | | $ | — | | $ | 1 | | $ | 42 | | $ | 39,703 | |
Total interest expense | | 15,946 | | — | | — | | — | | 1,467 | | 17,413 | |
Net interest income | | 23,680 | | 34 | | — | | 1 | | (1,425 | ) | 22,290 | |
Provision for loan losses | | 1,430 | | — | | — | | — | | — | | 1,430 | |
Net interest income after provision | | 22,250 | | 34 | | — | | 1 | | (1,425 | ) | 20,860 | |
Noninterest income | | 1,662 | | 2,059 | | 1,214 | | 2,089 | | — | | 7,024 | |
Noninterest expense | | 6,685 | | 1,441 | | 1,070 | | 2,246 | | 6,831 | | 18,273 | |
Income before income taxes | | 17,227 | | 652 | | 144 | | (156 | ) | (8,256 | ) | 9,611 | |
Provision for income taxes | | 6,481 | | 250 | | 69 | | (46 | ) | (3,150 | ) | 3,604 | |
Net income before management fees and overhead allocations | | $ | 10,746 | | $ | 402 | | $ | 75 | | $ | (110 | ) | $ | (5,106 | ) | $ | 6,007 | |
Management fees and overhead allocations, net of tax | | 3,474 | | 51 | | 63 | | 109 | | (3,697 | ) | — | |
Net income | | $ | 7,272 | | $ | 351 | | $ | 12 | | $ | (219 | ) | $ | (1,409 | ) | $ | 6,007 | |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
| | Three months ended September 30, | | Nine months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
(in thousands) | | 2008 | | 2007 | | Amount | | % | | 2008 | | 2007 | | Amount | | % | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | |
Deposit service charges | | $ | 1,045 | | $ | 806 | | $ | 239 | | 29.7 | % | $ | 2,956 | | $ | 2,234 | | $ | 722 | | 32.3 | % |
Other loan fees | | 218 | | 194 | | 24 | | 12.4 | % | 752 | | 529 | | 223 | | 42.2 | % |
Investment advisory and trust income | | 1,517 | | 1,214 | | 303 | | 25.0 | % | 4,929 | | 3,558 | | 1,371 | | 38.5 | % |
Insurance income | | 3,743 | | 2,089 | | 1,654 | | 79.2 | % | 11,519 | | 7,159 | | 4,360 | | 60.9 | % |
Investment banking income | | 1,062 | | 2,059 | | (997 | ) | (48.4 | )% | 4,551 | | 4,441 | | 110 | | 2.5 | % |
Other income | | 1,800 | | 662 | | 1,138 | | 171.9 | % | 3,671 | | 2,060 | | 1,611 | | 78.2 | % |
Total noninterest income | | $ | 9,385 | | $ | 7,024 | | $ | 2,361 | | 33.6 | % | $ | 28,378 | | $ | 19,981 | | $ | 8,397 | | 42.0 | % |
| | Three months ended September 30, | | Nine months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
(in thousands) | | 2008 | | 2007 | | Amount | | % | | 2008 | | 2007 | | Amount | | % | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 13,383 | | $ | 11,689 | | $ | 1,694 | | 14.5 | % | $ | 43,548 | | $ | 35,443 | | $ | 8,105 | | 22.9 | % |
Stock based compensation expense | | 393 | | 404 | | (11 | ) | (2.7 | )% | 1,279 | | 1,111 | | 168 | | 15.1 | % |
Occupancy expenses, premises and equipment | | 3,274 | | 2,843 | | 431 | | 15.2 | % | 9,658 | | 8,517 | | 1,141 | | 13.4 | % |
Amortization of intangibles | | 166 | | 118 | | 48 | | 40.7 | % | 555 | | 355 | | 200 | | 56.3 | % |
Other operating expenses | | 3,390 | | 3,053 | | 337 | | 11.0 | % | 9,887 | | 8,815 | | 1,072 | | 12.2 | % |
Loss on other assets and securities | | 1,097 | | 166 | | 931 | | 560.8 | % | 1,158 | | 422 | | 736 | | 174.4 | % |
Total noninterest expenses | | $ | 21,703 | | $ | 18,273 | | $ | 3,430 | | 18.8 | % | $ | 66,085 | | $ | 54,663 | | $ | 11,422 | | 20.9 | % |
| | September 30, 2008 | | December 31, 2007 | | September 30, 2007 | |
| | | | % of | | | | % of | | | | % of | |
(in thousands) | | Amount | | Portfolio | | Amount | | Portfolio | | Amount | | Portfolio | |
LOANS | | | | | | | | | | | | | |
Commercial | | $ | 621,128 | | 31.4 | % | $ | 576,959 | | 31.6 | % | $ | 537,447 | | 31.1 | % |
Real Estate - mortgage | | 982,084 | | 49.8 | % | 874,226 | | 47.9 | % | 834,416 | | 48.2 | % |
Real Estate - construction | | 305,819 | | 15.5 | % | 309,568 | | 17.0 | % | 299,069 | | 17.3 | % |
Consumer | | 80,336 | | 4.1 | % | 71,422 | | 3.9 | % | 62,414 | | 3.6 | % |
Other | | 12,318 | | 0.6 | % | 14,151 | | 0.8 | % | 14,987 | | 0.9 | % |
Gross loans | | 2,001,685 | | 101.4 | % | 1,846,326 | | 101.1 | % | 1,748,333 | | 101.1 | % |
Less allowance for loan losses | | (27,703 | ) | (1.4 | )% | (20,043 | ) | (1.1 | )% | (18,583 | ) | (1.1 | )% |
Net loans | | $ | 1,973,982 | | 100.0 | % | $ | 1,826,283 | | 100.0 | % | $ | 1,729,750 | | 100.0 | % |
| | September 30, 2008 | | December 31, 2007 | | September 30, 2007 | |
| | | | % of | | | | % of | | | | % of | |
(in thousands) | | Amount | | Portfolio | | Amount | | Portfolio | | Amount | | Portfolio | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | |
NOW and money market | | $ | 528,272 | | 28.1 | % | $ | 631,391 | | 33.0 | % | $ | 584,890 | | 31.3 | % |
Savings | | 10,617 | | 0.6 | % | 11,546 | | 0.6 | % | 11,028 | | 0.6 | % |
Eurodollar | | 101,723 | | 5.4 | % | 77,444 | | 4.1 | % | 68,544 | | 3.7 | % |
Certificates of deposits under $100,000 | | 97,017 | | 5.2 | % | 112,125 | | 5.9 | % | 112,930 | | 6.1 | % |
Certificates of deposits $100,000 and over | | 312,053 | | 16.6 | % | 308,867 | | 16.2 | % | 281,004 | | 15.1 | % |
Reciprocal CDARS | | 125,951 | | 6.7 | % | 14,159 | | 0.7 | % | 16,091 | | 0.9 | % |
Brokered deposits | | 122,093 | | 6.5 | % | 148,081 | | 7.7 | % | 125,792 | | 6.7 | % |
Total interest-bearing deposits | | 1,297,726 | | 69.1 | % | 1,303,613 | | 68.2 | % | 1,200,279 | | 64.3 | % |
Noninterest-bearing demand deposits | | 439,536 | | 23.4 | % | 439,076 | | 23.0 | % | 458,752 | | 24.6 | % |
Customer repurchase agreements | | 140,264 | | 7.5 | % | 168,336 | | 8.8 | % | 206,973 | | 11.1 | % |
Total deposits and customer repurchase agreements | | $ | 1,877,526 | | 100.0 | % | $ | 1,911,025 | | 100.0 | % | $ | 1,866,004 | | 100.0 | % |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
| | For the three months ended September 30, | |
| | | | 2008 | | | | | | 2007 | | | |
| | | | 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 | | $ | 7,435 | | $ | 55 | | 2.89 | % | $ | 9,681 | | $ | 122 | | 4.93 | % |
Investment securities | | 425,965 | | 5,571 | | 5.23 | % | 413,797 | | 5,362 | | 5.18 | % |
Loans | | 1,946,465 | | 30,632 | | 6.16 | % | 1,685,184 | | 34,359 | | 7.98 | % |
Allowance for loan losses | | (26,940 | ) | | | | | (18,914 | ) | | | | |
Total interest-earning assets | | $ | 2,352,925 | | $ | 36,258 | | 5.98 | % | $ | 2,089,748 | | $ | 39,843 | | 7.41 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 43,038 | | | | | | 45,173 | | | | | |
Other | | 152,848 | | | | | | 108,961 | | | | | |
Total assets | | $ | 2,548,811 | | | | | | $ | 2,243,882 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market | | $ | 610,777 | | $ | 2,771 | | 1.80 | % | $ | 604,560 | | $ | 5,128 | | 3.37 | % |
Savings | | 10,358 | | 29 | | 1.11 | % | 11,076 | | 50 | | 1.79 | % |
Eurodollar | | 120,725 | | 572 | | 1.85 | % | 32,687 | | 345 | | 4.13 | % |
Certificates of deposit | | | | | | | | | | | | | |
Brokered under $100,000 | | 102,624 | | 780 | | 3.02 | % | 117,014 | | 1,580 | | 5.36 | % |
Under $100,000 | | 139,170 | | 1,048 | | 3.00 | % | 125,538 | | 1,564 | | 4.94 | % |
$100,000 and over | | 321,325 | | 2,646 | | 3.28 | % | 274,535 | | 3,450 | | 4.99 | % |
Total interest-bearing deposits | | $ | 1,304,979 | | $ | 7,846 | | 2.39 | % | $ | 1,165,410 | | $ | 12,117 | | 4.12 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 151,276 | | 608 | | 1.57 | % | 232,880 | | 2,211 | | 3.72 | % |
Other short-term borrowings | | 364,440 | | 2,217 | | 2.38 | % | 121,951 | | 1,657 | | 5.32 | % |
Long term-debt | | 79,837 | | 1,143 | | 5.60 | % | 72,166 | | 1,428 | | 7.74 | % |
Total interest-bearing liabilities | | $ | 1,900,532 | | $ | 11,814 | | 2.46 | % | $ | 1,592,407 | | $ | 17,413 | | 4.32 | % |
Noninterest-bearing demand accounts | | 433,135 | | | | | | 439,811 | | | | | |
Total deposits and interest-bearing liabilities | | 2,333,667 | | | | | | 2,032,218 | | | | | |
Other noninterest-bearing liabilities | | 20,020 | | | | | | 17,799 | | | | | |
Total liabilities | | 2,353,687 | | | | | | 2,050,017 | | | | | |
Shareholders’ equity | | 195,124 | | | | | | 193,865 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,548,811 | | | | | | $ | 2,243,882 | | | | | |
Net interest income | | | | $ | 24,444 | | | | | | $ | 22,430 | | | |
Net interest spread | | | | | | 3.52 | % | | | | | 3.09 | % |
Net interest margin | | | | | | 4.13 | % | | | | | 4.26 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 123.80 | % | | | | | 131.23 | % | | | | |
| | For the nine months ended September 30, | |
| | | | 2008 | | | | | | 2007 | | | |
| | | | 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 | | $ | 8,500 | | $ | 221 | | 3.42 | % | $ | 9,078 | | $ | 359 | | 5.21 | % |
Investment securities | | 411,181 | | 16,044 | | 5.20 | % | 417,704 | | 16,108 | | 5.14 | % |
Loans | | 1,900,620 | | 93,340 | | 6.45 | % | 1,618,674 | | 98,310 | | 8.01 | % |
Allowance for loan losses | | (24,080 | ) | | | | | (18,385 | ) | | | | |
Total interest-earning assets | | $ | 2,296,221 | | $ | 109,605 | | 6.22 | % | $ | 2,027,071 | | $ | 114,777 | | 7.41 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 42,450 | | | | | | 44,841 | | | | | |
Other | | 144,686 | | | | | | 109,910 | | | | | |
Total assets | | $ | 2,483,357 | | | | | | $ | 2,181,822 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market | | $ | 654,270 | | $ | 10,368 | | 2.12 | % | $ | 574,047 | | $ | 13,893 | | 3.24 | % |
Savings | | 10,854 | | 112 | | 1.38 | % | 11,165 | | 143 | | 1.71 | % |
Eurodollar | | 107,295 | | 1,737 | | 2.13 | % | 11,016 | | 345 | | 4.13 | % |
Certificates of deposits | | | | | | | | | | | | | |
Brokered under $100,000 | | 101,964 | | 3,124 | | 4.08 | % | 100,847 | | 4,014 | | 5.32 | % |
Under $100,000 | | 122,429 | | 3,440 | | 3.75 | % | 113,188 | | 4,087 | | 4.83 | % |
$100,000 and over | | 326,481 | | 9,217 | | 3.77 | % | 265,606 | | 9,740 | | 4.90 | % |
Total interest-bearing deposits | | $ | 1,323,293 | | $ | 27,998 | | 2.82 | % | $ | 1,075,869 | | $ | 32,222 | | 4.00 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 152,096 | | 2,230 | | 1.93 | % | 240,169 | | 6,791 | | 3.73 | % |
Other short-term borrowings | | 288,662 | | 5,789 | | 2.63 | % | 150,650 | | 6,090 | | 5.33 | % |
Long-term debt | | 74,742 | | 3,359 | | 5.90 | % | 72,166 | | 4,233 | | 7.73 | % |
Total interest-bearing liabilities | | $ | 1,838,793 | | $ | 39,376 | | 2.84 | % | $ | 1,538,854 | | $ | 49,336 | | 4.27 | % |
Noninterest-bearing demand accounts | | 431,382 | | | | | | 435,592 | | | | | |
Total deposits and interest-bearing liabilities | | 2,270,175 | | | | | | 1,974,446 | | | | | |
Other noninterest-bearing liabilities | | 18,292 | | | | | | 17,930 | | | | | |
Total liabilities and preferred securities | | 2,288,467 | | | | | | 1,992,376 | | | | | |
Shareholders’ equity | | 194,890 | | | | | | 189,446 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,483,357 | | | | | | $ | 2,181,822 | | | | | |
Net interest income | | | | $ | 70,229 | | | | | | $ | 65,441 | | | |
Net interest spread | | | | | | 3.37 | % | | | | | 3.14 | % |
Net interest margin | | | | | | 4.09 | % | | | | | 4.32 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 124.88 | % | | | | | 131.73 | % | | | | |
CoBiz Financial Inc.
September 30, 2008
(unaudited)
Reconciliation of Non-GAAP Measure to GAAP
The following table includes Non-GAAP financial measurements related to tangible equity and tangible assets. These items have been adjusted to exclude goodwill and intangible assets.
| | September 30, 2008 | |
| | | |
Shareholders’ equity as reported - GAAP | | $ | 194,523 | |
| | | |
Goodwill and intangible assets | | (51,658 | ) |
| | | |
Tangible equity - Non-GAAP | | $ | 142,865 | |
| | | |
Total assets as reported - GAAP | | $ | 2,606,107 | |
| | | |
Goodwill and intangible assets | | (51,658 | ) |
| | | |
Total tangible assets - Non-GAAP | | $ | 2,554,449 | |
| | | |
Shareholders’ equity to total assets as reported - GAAP | | 7.46 | % |
| | | |
Tangible equity to total tangible assets as reported - Non-GAAP | | 5.59 | % |
