Exhibit 99.1
CoBiz Financial Announces Fourth Quarter 2008 Results
Bolsters Allowance for Loan Losses, Capital Levels
Denver – CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.7 billion in assets, announced a net loss of $8.6 million, or $0.38 loss per fully diluted share (EPS) for the fourth quarter of 2008. For the full year ended December 31, 2008, net income was $1.3 million, or $0.05 per diluted share. Net income was $5.5 million in the fourth quarter 2007 and $23.0 million for the year ended 2007. Diluted EPS was $0.23 for the fourth quarter of 2007, and $0.96 for the year ended 2007.
Financial Performance – Fourth Quarter 2008
· Fourth quarter results included a $23.44 million (pre-tax) loan loss provision, as compared to $5.34 million for the third quarter of 2008, and $1.47 million for the fourth quarter of 2007.
· Improved net interest margin: 4.15% in fourth quarter of 2008 vs. 4.10% in the third quarter (linked-quarter).
· Capital investment of $64.5 million from the U.S. Treasury Department.
· Tangible equity ratio of 7.61%; estimated total risk-based capital ratio of 14.5%.
· Quarterly loan growth of $29.6 million, or 5.9% annualized; year-over-year loan growth of $184.9 million, or 10.0%.
· Deposits and customer repurchase agreements (Customer Repo’s) decreased by $105.0 million on a linked-quarter basis. Deposits and Customer Repo’s excluding wholesale brokered sources (Customer Funding) decreased by $49.5 million on a linked-quarter basis.
· Nonperforming assets ended the year at $47.0 million, or 1.75% of total assets.
· Allowance for loan and credit losses (Allowance) increased to 2.12% of total loans as compared to 1.40% as of September 30, 2008, and 1.12% as of December 31, 2007.
· Fourth quarter results include a $2.2 million pre-tax loss on a valuation adjustment of Other Real Estate Owned (OREO).
· The Company recognized a $1.2 million pre-tax impairment charge on a trust preferred security.
“This past year has proven to be extremely challenging for financial service companies; CoBiz has not been immune to the issues plaguing the industry, particularly with the national economic slowdown beginning to impact Colorado in the fourth quarter,” said Chairman and CEO Steve Bangert. “While Colorado remains one of the healthier markets in which to do business, we do anticipate continued softening as national conditions further erode.”
For the year 2008, the Company’s pre-tax, pre-provision earnings were $40.7 million. Excluding pre-tax valuation losses of $4.6 million on OREO and investment securities, the Company’s pre-tax earnings were $45.3 million, or 10.0% higher than 2007 pre-tax, pre-provision earnings.
“During 2008, we built our loan loss reserve and capital ratios to the highest levels in our company’s history. In 2009, we anticipate the challenging economic cycle will present numerous consolidation opportunities for the industry and are positioning ourselves to take advantage of them as they are presented to us.
“To that end, we delayed the release of our fourth quarter results as we underwent a comprehensive independent review triggered by discussions with several potential equity partners. Until we identify a transaction, we have no immediate plans to issue new capital, but believe the current environment has created tremendous consolidation opportunities similar to those experienced in the late 1980s and early 1990s. Our management team was heavily involved in the bank mergers and acquisitions market during that time of consolidation. Our level of expertise in this arena will enable us to take full advantage of a rich acquisition and stabilization environment.”
Loans
Loans for Colorado Business Bank and Arizona Business Bank, collectively, the Bank, ended the period just over $2.0 billion, an increase of $184.9 million, or 10.0%, over the same period in 2007. As expected, loan growth slowed during the fourth quarter of 2008 with a net increase of $29.6 million, or 5.9% annualized. Most of the growth came from our Commercial & Industrial Loans (C&I) and Term Commercial Mortgages. The growth in Term Commercial Mortgages relates to owner-occupied buildings closely tied to our C&I portfolio. Construction loans were down for the quarter and continue to be reduced as a percentage of the total portfolio, accounting for 13.1% of loans as of December 31, 2008, vs. 16.8% a year earlier.
We remain committed to the communities we serve and our goal to be the leading provider of financial solutions to businesses and professionals in our markets. We continue to lend to credit-worthy customers, and in 2008 advanced $473.3 million on new credit lines to both existing and new relationships.
Investment Securities
The Company recognized an other-than-temporary impairment (“OTTI”) valuation loss during the fourth quarter of 2008 of $1.2 million pretax, or $0.03 per diluted share. The valuation loss during the fourth quarter related to a publicly traded, single-issue bank trust preferred security that was not previously deemed to have an OTTI.
Deposits and Customer Repo Balances
Deposit and Customer Repo balances ended the period at $1.8 billion, a decrease of $138.5 million from the same period in 2007. On a linked-quarter basis, Deposit and Customer Repo balances decreased by $105.0 million. Customer Funding (excluding brokered deposits from non-relationship sources) decreased $49.5 million on a linked-quarter basis, and $57.0 million from the prior year end. Total noninterest-bearing demand accounts represented 27.7% of total deposits as of December 31, 2008, as compared to 25.2% as of December 31, 2007.
Brokered funding represented 4.1% of total deposits as of the current quarter, as compared to 8.5% of total deposits a year earlier.
Allowance for Loan and Credit Losses and Credit Quality
The Company conducts operations in Colorado and Arizona. While the Colorado economy has outperformed the majority of other metropolitan areas nationally over the last year, it began to show increasing signs of weakness during the fourth quarter. These broader economic trends have impacted our Colorado loan portfolio, which has seen an increase in adversely graded credits. The Arizona market continues to work through the issues related to a severely depressed residential housing market.
Total nonperforming loans (NPLs) increased to $41.1 million as of December 31, 2008, from $23.9 million at September 30, 2008. NPLs to total loans increased to 2.02% at year-end, from 1.19% as of the end of the third quarter of 2008. Including OREO of $5.9 million as of December 2008, total nonperforming assets (NPAs) were $47.0 million at year end, as compared to $30.9 million as of the prior linked quarter.
The majority of the increase in NPAs was in the Colorado portfolio. Total NPAs in Colorado increased by $12.3 million during the fourth quarter to $23.4 million, mainly in the Construction and Term Real Estate portfolio. NPAs in Arizona increased by $3.8 to $23.6 million on a linked-quarter basis.
During the fourth quarter of 2008, we recorded a $23.4 million loan and credit loss provision, as compared to $5.4 million for the third quarter of 2008, and $1.5 million for the fourth quarter of 2007. The Company charged-off (net of recoveries) $8.3 million in loans during the fourth quarter of 2008, and $17.0 million for the full year of 2008. Overall, the Company provided $22.5 million more in provision for loan and credit losses than it has charged-off during the year. As a result, the Allowance was increased to $43.1 million as of December 31, 2008, from $20.6 million as of December 31, 2007. The Company’s Allowance to total loans increased to 2.12% as of December 31, 2008, from 1.40% as of September 30, 2008, and 1.12% December 31, 2007. The Allowance was 105.0% of NPLs as of the end of 2008.
Shareholders’ Equity and Regulatory Capital
In the fourth quarter, the Company received a $64.5 million investment from the U.S. Treasury Department as part of the Capital Purchase Program (CPP) under the Emergency Economic Stabilization Act of 2008. Including the CPP capital infusion, as of the end of the fourth quarter, total Shareholders’ Equity was $252.1 million. The Company’s total tangible equity was $200.2 million, and its tangible equity to tangible asset ratio was 7.61%.
As of December 31, 2008, the Bank was well-capitalized with a Tier 1 Capital ratio of 10.23%, and Total Capital ratio of 11.49%. 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 December 31, 2008, is expected to be 11.97%, and its Total Capital ratio is expected to be 14.48%.
Net Interest Income & Margin
Net interest income on a tax equivalent basis for the fourth quarter of 2008 increased to $25.8 million from $24.4 million for the third quarter of 2008, a 22.8% annualized increase. Net interest income on a tax equivalent basis was $23.1 million for the fourth quarter of 2007. During the fourth quarter, our net interest margin (NIM) on a tax equivalent basis expanded to 4.15% vs. 4.10% as of the third quarter. Excluding nonaccrual loans from earning assets, the NIM would have been 4.20% as of December 31, 2008.
Average earning asset balances grew by $105.0 million on a linked-quarter basis, due to $58.1 million in average loan growth and $51.7 million in average securities growth. The net increase in earning assets was primarily funded by the CPP and an increase in average other short-term borrowings. Average noninterest-bearing demand deposits increased $12.3 million from the prior linked quarter. Yields on average earning assets decreased 29 basis points (0.29%) from the third quarter of 2008 to the fourth quarter of 2008, while rates paid on average interest-bearing liabilities decreased 45 basis points (0.45%).
Noninterest Income
Noninterest income decreased by $2.4 million on a linked-quarter basis to $7.0 million for the fourth quarter. Noninterest income was $9.4 million in the third quarter of 2008, and $8.3 million in the fourth quarter of 2007. As a percentage of total operating revenue, noninterest income was 21.5% for the fourth quarter of 2008 vs. 26.6% for the prior-year quarter.
Operating results for 2008 include noninterest income 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.
In general, all of our business segments have been negatively impacted by current market conditions. Our Insurance Segment’s revenues have been adversely affected by a continued soft premium market for P&C insurance; the decline in the broader equity market has negatively impacted Investment Advisory earnings; and Investment Banking transactions have been curtailed due to market uncertainty and valuation issues. However, the majority of the variance from the third quarter of 2008 and the fourth quarter of 2007 relates to the Investment Banking segment, a decrease in earnings on equity method investments and income from credit valuation adjustments on our customer accommodation interest-rate swaps.
Operating Expenses
Noninterest expenses for the fourth quarter of 2008 were $23.6 million, as compared to $21.7 million for the third quarter of 2008. Noninterest expenses for the fourth quarter of 2007 were $20.9 million. (2008 noninterest expenses were affected by the acquisitions of Wagner and CoBiz Insurance-AZ.)
Driving the linked-quarter increase was a $2.2 million write-down on the carrying value of OREO, as well as the $1.2 million OTTI charge. Salaries and employee benefits decreased from the third quarter due to the downward adjustment of variable compensation accruals.
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company’s conference call on Friday, February 13, 2009 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=54611 or by telephone at 877.493.9121, (conference ID #79736378).
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 $2.7 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.
December 31, 2008
(unaudited)
| | Three months ended December 31, | | Year ended December 31, | |
(in thousands, except per share amounts) | | 2008 | | 2007 | | 2008 | | 2007 | |
INCOME STATEMENT DATA | | | | | | | | | |
Interest income | | $ | 35,820 | | $ | 40,164 | | $ | 144,908 | | $ | 154,510 | |
Interest expense | | 10,181 | | 17,275 | | 49,557 | | 66,611 | |
NET INTEREST INCOME BEFORE PROVISION | | 25,639 | | 22,889 | | 95,351 | | 87,899 | |
Provision for loan losses | | 23,444 | | 1,469 | | 39,796 | | 3,936 | |
NET INTEREST INCOME AFTER PROVISION | | 2,195 | | 21,420 | | 55,555 | | 83,963 | |
Noninterest income | | 7,021 | | 8,308 | | 35,399 | | 28,289 | |
Noninterest expense | | 23,632 | | 20,852 | | 89,717 | | 75,515 | |
INCOME (LOSS) BEFORE INCOME TAXES | | (14,416 | ) | 8,876 | | 1,237 | | 36,737 | |
Provision (benefit) for income taxes | | (5,803 | ) | 3,402 | | (91 | ) | 13,713 | |
NET INCOME (LOSS) | | (8,613 | ) | 5,474 | | 1,328 | | 23,024 | |
Preferred stock dividends | | (124 | ) | — | | (124 | ) | — | |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | | $ | (8,737 | ) | $ | 5,474 | | $ | 1,204 | | $ | 23,024 | |
| | | | | | | | | |
EARNINGS (LOSS) PER COMMON SHARE | | | | | | | | | |
BASIC | | $ | (0.38 | ) | $ | 0.24 | | $ | 0.05 | | $ | 0.98 | |
DILUTED | | $ | (0.38 | ) | $ | 0.23 | | $ | 0.05 | | $ | 0.96 | |
WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) | | | | | | | | | |
BASIC | | 23,144 | | 23,079 | | 23,082 | | 23,552 | |
DILUTED | | 23,144 | | 23,508 | | 23,255 | | 24,090 | |
| | | | | | | | | |
COMMON SHARES OUTSTANDING AT PERIOD END (in thousands) | | | | | | 23,375 | | 22,993 | |
BOOK VALUE PER COMMON SHARE | | | | | | $ | 8.16 | | $ | 8.23 | |
| | | | | | | | | |
PERIOD END BALANCES | | | | | | | | | |
Total Assets | | | | | | $ | 2,684,275 | | $ | 2,391,012 | |
Loans | | | | | | 2,031,253 | | 1,846,326 | |
Goodwill and Intangible Assets | | | | | | 51,864 | | 45,498 | |
Deposits | | | | | | 1,639,031 | | 1,742,689 | |
Subordinated Debentures | | | | | | 93,150 | | 72,166 | |
Common Shareholders’ Equity | | | | | | 190,635 | | 189,270 | |
Total Shareholders’ Equity | | | | | | 252,099 | | 189,270 | |
Interest-Earning Assets | | | | | | 2,498,484 | | 2,225,621 | |
Interest-Bearing Liabilities | | | | | | 1,954,991 | | 1,741,559 | |
| | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | |
Average Assets | | | | | | $ | 2,529,901 | | $ | 2,218,625 | |
Average Loans | | | | | | 1,944,728 | | 1,665,379 | |
Average Deposits | | | | | | 1,743,712 | | 1,564,650 | |
Average Subordinated Debentures | | | | | | 79,306 | | 72,166 | |
Average Shareholders’ Equity | | | | | | 197,235 | | 189,502 | |
Average Interest-Earning Assets | | | | | | 2,354,838 | | 2,065,738 | |
Average Interest-Bearing Liabilities | | | | | | 1,878,852 | | 1,571,789 | |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | Three months ended December 31, | | Year ended December 31, | | | |
(in thousands) | | 2008 | | 2007 | | 2008 | | 2007 | | | |
| | | | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | | | |
Net Interest Margin | | 4.15 | % | 4.21 | % | 4.08 | % | 4.28 | % | | |
Efficiency Ratio | | 61.84 | % | 64.87 | % | 65.10 | % | 64.10 | % | | |
Return on Average Assets | | (1.28 | )% | 0.93 | % | 0.05 | % | 1.04 | % | | |
Return on Average Shareholders’ Equity | | (16.78 | )% | 11.45 | % | 0.67 | % | 12.15 | % | | |
Noninterest Income as a Percentage of Operating Revenues | | 21.50 | % | 26.63 | % | 27.07 | % | 24.35 | % | | |
| | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | |
Nonperforming Loans | | | | | | | | | | | |
Loans 90 days or more past due and accruing interest | | | | | | $ | 1,292 | | $ | 2,208 | | | |
Nonaccrual loans | | | | | | 39,786 | | 1,202 | | | |
Total nonperforming loans | | | | | | $ | 41,078 | | $ | 3,410 | | | |
OREO and Repossessed Assets | | | | | | 5,941 | | 90 | | | |
Total nonperforming assets | | | | | | $ | 47,019 | | $ | 3,500 | | | |
| | | | | | | | | | | |
Charge-offs | | | | | | (17,144 | ) | (1,838 | ) | | |
Recoveries | | | | | | 156 | | 74 | | | |
Net Charge-offs | | | | | | $ | (16,988 | ) | $ | (1,764 | ) | | |
| | | | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | | | |
Nonperforming Assets to Total Assets | | | | | | 1.75 | % | 0.15 | % | | |
Nonperforming Loans to Total Loans | | | | | | 2.02 | % | 0.18 | % | | |
Nonperforming Loans and OREO to Total Loans and OREO | | | | | | 2.31 | % | 0.19 | % | | |
Allowance for Loan and Credit Losses to Total Loans | | | | | | 2.12 | % | 1.12 | % | | |
Allowance for Loan and Credit Losses to Nonperforming Loans | | | | | | 104.95 | % | 604.69 | % | | |
| | | | | | | | Total Loans | | NPAs as a | |
NONPERFORMING ASSETS BY MARKET | | Colorado | | Arizona | | Total | | in Category | | % of Loans | |
Commercial | | $ | 8,428 | | $ | 937 | | $ | 9,365 | | $ | 648,968 | | 1.44 | % |
Real Estate - mortgage | | 5,658 | | 8,331 | | 13,989 | | 1,017,444 | | 1.37 | % |
Real Estate - construction | | 8,973 | | 7,450 | | 16,423 | | 266,927 | | 6.15 | % |
Consumer | | 221 | | 1,080 | | 1,301 | | 86,701 | | 1.50 | % |
Other Loans | | — | | — | | — | | 11,213 | | 0.00 | % |
Other Real Estate Owned | | 114 | | 5,827 | | 5,941 | | — | | — | |
NPAs | | $ | 23,394 | | $ | 23,625 | | $ | 47,019 | | $ | 2,031,253 | | 2.31 | % |
| | | | | | | | | | | |
Total Loans | | $ | 1,279,173 | | $ | 752,080 | | $ | 2,031,253 | | | | | |
Total Loans and OREO | | 1,279,287 | | 757,907 | | 2,037,194 | | | | | |
| | | | | | | | | | | |
Non-performing Loans/ Loans | | 1.82 | % | 2.37 | % | 2.02 | % | | | | |
Nonperforming Loans and OREO to Total Loans and OREO | | 1.83 | % | 3.12 | % | 2.31 | % | | | | |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | | | | | Investment | | | | Corporate | | | |
| | Commercial | | Investment | | Advisory | | | | Support and | | | |
(in thousands, except per share amounts) | | Banking | | Banking | | and Trust | | Insurance | | Other | | Consolidated | |
Net interest income | �� | | | | | | | | | | | | |
Quarter ended December 31, 2008 | | $ | 27,177 | | $ | 8 | | $ | (3 | ) | $ | (4 | ) | $ | (1,539 | ) | $ | 25,639 | |
Quarter ended September 30, 2008 | | $ | 25,516 | | $ | 11 | | $ | — | | $ | (2 | ) | $ | (1,287 | ) | $ | 24,238 | |
Annualized quarterly growth | | 25.8 | % | (108.2 | )% | — | | (396.7 | )% | (77.7 | )% | 22.9 | % |
| | | | | | | | | | | | | |
Quarter ended December 31, 2007 | | $ | 24,402 | | $ | 29 | | $ | 1 | | $ | 1 | | $ | (1,544 | ) | $ | 22,889 | |
Annual growth | | 11.4 | % | (72.4 | )% | (400.0 | )% | (500.0 | )% | 3 | % | 12.0 | % |
| | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | |
Quarter ended December 31, 2008 | | $ | 1,475 | | $ | 504 | | $ | 1,413 | | $ | 3,594 | | $ | 35 | | $ | 7,021 | |
Quarter ended September 30, 2008 | | $ | 3,048 | | $ | 1,062 | | $ | 1,517 | | $ | 3,743 | | $ | 15 | | $ | 9,385 | |
Annualized quarterly growth | | (204.7 | )% | (208.5 | )% | (27.2 | )% | (15.8 | )% | 529.0 | % | (99.9 | )% |
| | | | | | | | | | | | | |
Quarter ended December 31, 2007 | | $ | 2,586 | | $ | 2,240 | | $ | 1,205 | | $ | 2,238 | | $ | 39 | | $ | 8,308 | |
Annual growth | | (43.0 | )% | (77.5 | )% | 17.3 | % | 60.6 | % | (10.3 | )% | (15.5 | )% |
| | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | |
Quarter ended December 31, 2008 | | $ | (6,722 | ) | $ | (417 | ) | $ | 38 | | $ | 69 | | $ | (1,581 | ) | $ | (8,613 | ) |
Quarter ended September 30, 2008 | | $ | 5,292 | | $ | (235 | ) | $ | (140 | ) | $ | 25 | | $ | (779 | ) | $ | 4,163 | |
Annualized quarterly growth | | (900.7 | )% | (307.3 | )% | 504.4 | % | 698.3 | % | (408.5 | )% | (1,217.6 | )% |
| | | | | | | | | | | | | |
Quarter ended December 31, 2007 | | $ | 7,050 | | $ | 116 | | $ | (90 | ) | $ | (177 | ) | $ | (1,425 | ) | $ | 5,474 | |
Annual growth | | (195.3 | )% | (459.5 | )% | 142.2 | % | 139.0 | % | (10.9 | )% | (257.3 | )% |
| | | | | | | | | | | | | |
Earnings per share (diluted) | | | | | | | | | | | | | |
Quarter ended December 31, 2008 | | $ | (0.29 | ) | $ | (0.02 | ) | $ | — | | $ | — | | $ | (0.07 | ) | $ | (0.38 | ) |
Quarter ended September 30, 2008 | | $ | 0.23 | | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | | $ | (0.03 | ) | $ | 0.18 | |
Annualized quarterly growth | | (897.0 | )% | (396.7 | )% | 396.7 | % | — | | (529.0 | )% | (1,234.3 | )% |
| | | | | | | | | | | | | |
Quarter ended December 31, 2007 | | $ | 0.30 | | $ | — | | $ | — | | $ | (0.01 | ) | $ | (0.06 | ) | $ | 0.23 | |
Annual growth | | (196.7 | )% | (100.0 | )% | — | | 100.0 | % | (16.7 | )% | (265.2 | )% |
(in thousands) | | | | | | | | | | | | Consolidated | |
Total loans | | | | | | | | | | | | | |
At December 31, 2008 | | | | | | | | | | | | $ | 2,031,253 | |
At September 30, 2008 | | | | | | | | | | | | 2,001,685 | |
Annualized quarterly growth | | | | | | | | | | | | 5.9 | % |
| | | | | | | | | | | | | |
At December 31, 2007 | | | | | | | | | | | | $ | 1,846,326 | |
Annual growth | | | | | | | | | | | | 10.0 | % |
| | | | | | | | | | | | | |
Total deposits and customer repurchase agreements | | | | | | | | | | | | | |
At December 31, 2008 | | | | | | | | | | | | $ | 1,772,509 | |
At September 30, 2008 | | | | | | | | | | | | 1,877,526 | |
Annualized quarterly growth | | | | | | | | | | | | (22.2 | )% |
| | | | | | | | | | | | | |
At December 31, 2007 | | | | | | | | | | | | $ | 1,911,025 | |
Annual growth | | | | | | | | | | | | (7.2 | )% |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | Three months ended | |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |
(in thousands) | | 2008 | | 2008 | | 2008 | | 2008 | | 2007 | |
| | | | | | | | | | | |
COMMERCIAL BANKING | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | 35,780 | | $ | 36,012 | | $ | 35,597 | | $ | 37,347 | | $ | 40,091 | |
Total interest expense | | 8,603 | | 10,496 | | 10,991 | | 13,898 | | 15,689 | |
Net interest income | | 27,177 | | 25,516 | | 24,606 | | 23,449 | | 24,402 | |
Provision for loan losses | | 23,444 | | 5,335 | | 5,986 | | 5,031 | | 1,469 | |
Net interest income after provision | | 3,733 | | 20,181 | | 18,620 | | 18,418 | | 22,933 | |
Noninterest income | | 1,475 | | 3,048 | | 2,502 | | 1,760 | | 2,586 | |
Noninterest expense | | 9,184 | | 8,485 | | 7,546 | | 7,883 | | 9,198 | |
Income before income taxes | | (3,976 | ) | 14,744 | | 13,576 | | 12,295 | | 16,321 | |
Provision (benefit) for income taxes | | (1,994 | ) | 5,680 | | 5,031 | | 4,575 | | 6,090 | |
Net income before management fees and overhead allocations | | $ | (1,982 | ) | $ | 9,064 | | $ | 8,545 | | $ | 7,720 | | $ | 10,231 | |
Management fees and overhead allocations, net of tax | | 4,740 | | 3,772 | | 3,886 | | 4,274 | | 3,181 | |
Net income (loss) | | $ | (6,722 | ) | $ | 5,292 | | $ | 4,659 | | $ | 3,446 | | $ | 7,050 | |
| | | | | | | | | | | |
INVESTMENT BANKING | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | 8 | | $ | 11 | | $ | 12 | | $ | 7 | | $ | 29 | |
Total interest expense | | — | | — | | — | | — | | — | |
Net interest income | | 8 | | 11 | | 12 | | 7 | | 29 | |
Provision for loan losses | | — | | — | | — | | — | | — | |
Net interest income after provision | | 8 | | 11 | | 12 | | 7 | | 29 | |
Noninterest income | | 504 | | 1,062 | | 3,196 | | 293 | | 2,240 | |
Noninterest expense | | 1,142 | | 1,369 | | 1,679 | | 927 | | 1,990 | |
Income before income taxes | | (630 | ) | (296 | ) | 1,529 | | (627 | ) | 279 | |
Provision (benefit) for income taxes | | (247 | ) | (102 | ) | 588 | | (237 | ) | 111 | |
Net income before management fees and overhead allocations | | $ | (383 | ) | $ | (194 | ) | $ | 941 | | $ | (390 | ) | $ | 168 | |
Management fees and overhead allocations, net of tax | | 34 | | 41 | | 40 | | 49 | | 52 | |
Net income (loss) | | $ | (417 | ) | $ | (235 | ) | $ | 901 | | $ | (439 | ) | $ | 116 | |
| | | | | | | | | | | |
INVESTMENT ADVISORY AND TRUST | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | — | | $ | — | | $ | — | | $ | 3 | | $ | 1 | |
Total interest expense | | 3 | | — | | 4 | | 1 | | — | |
Net interest income | | (3 | ) | — | | (4 | ) | 2 | | 1 | |
Provision for loan losses | | — | | — | | — | | — | | — | |
Net interest income after provision | | (3 | ) | — | | (4 | ) | 2 | | 1 | |
Noninterest income | | 1,413 | | 1,517 | | 1,739 | | 1,676 | | 1,205 | |
Noninterest expense | | 1,255 | | 1,570 | | 1,703 | | 1,695 | | 1,239 | |
Income before income taxes | | 155 | | (53 | ) | 32 | | (17 | ) | (33 | ) |
Provision (benefit) for income taxes | | 51 | | 7 | | 22 | | 4 | | (8 | ) |
Net income before management fees and overhead allocations | | $ | 104 | | $ | (60 | ) | $ | 10 | | $ | (21 | ) | $ | (25 | ) |
Management fees and overhead allocations, net of tax | | 66 | | 80 | | 89 | | 86 | | 65 | |
Net income (loss) | | $ | 38 | | $ | (140 | ) | $ | (79 | ) | $ | (107 | ) | $ | (90 | ) |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | Three months ended | |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |
(in thousands) | | 2008 | | 2008 | | 2008 | | 2008 | | 2007 | |
| | | | | | | | | | | |
INSURANCE | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | 2 | |
Total interest expense | | 4 | | 2 | | 2 | | 3 | | 1 | |
Net interest income | | (4 | ) | (2 | ) | (2 | ) | 1 | | 1 | |
Provision for loan losses | | — | | — | | — | | — | | — | |
Net interest income after provision | | (4 | ) | (2 | ) | (2 | ) | 1 | | 1 | |
Noninterest income | | 3,594 | | 3,743 | | 4,153 | | 3,623 | | 2,238 | |
Noninterest expense | | 3,353 | | 3,488 | | 3,839 | | 3,410 | | 2,325 | |
Income before income taxes | | 237 | | 253 | | 312 | | 214 | | (86 | ) |
Provision (benefit) for income taxes | | 85 | | 127 | | 130 | | 93 | | (21 | ) |
Net income before management fees and overhead allocations | | $ | 152 | | $ | 126 | | $ | 182 | | $ | 121 | | $ | (65 | ) |
Management fees and overhead allocations, net of tax | | 83 | | 101 | | 99 | | 121 | | 112 | |
Net income (loss) | | $ | 69 | | $ | 25 | | $ | 83 | | $ | — | | $ | (177 | ) |
| | | | | | | | | | | |
CORPORATE SUPPORT AND OTHER | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | 32 | | $ | 29 | | $ | 30 | | $ | 36 | | $ | 41 | |
Total interest expense | | 1,571 | | 1,316 | | 1,146 | | 1,517 | | 1,585 | |
Net interest income | | (1,539 | ) | (1,287 | ) | (1,116 | ) | (1,481 | ) | (1,544 | ) |
Provision for loan losses | | — | | — | | — | | — | | — | |
Net interest income after provision | | (1,539 | ) | (1,287 | ) | (1,116 | ) | (1,481 | ) | (1,544 | ) |
Noninterest income | | 35 | | 15 | | (20 | ) | 71 | | 39 | |
Noninterest expense | | 8,698 | | 6,791 | | 7,710 | | 7,990 | | 6,100 | |
Income before income taxes | | (10,202 | ) | (8,063 | ) | (8,846 | ) | (9,400 | ) | (7,605 | ) |
Provision (benefit) for income taxes | | (3,698 | ) | (3,290 | ) | (3,351 | ) | (3,565 | ) | (2,770 | ) |
Net income before management fees and overhead allocations | | $ | (6,504 | ) | $ | (4,773 | ) | $ | (5,495 | ) | $ | (5,835 | ) | $ | (4,835 | ) |
Management fees and overhead allocations, net of tax | | (4,923 | ) | (3,994 | ) | (4,114 | ) | (4,530 | ) | (3,410 | ) |
Net income (loss) | | $ | (1,581 | ) | $ | (779 | ) | $ | (1,381 | ) | $ | (1,305 | ) | $ | (1,425 | ) |
| | | | | | | | | | | |
CONSOLIDATED | | | | | | | | | | | |
Income Statement | | | | | | | | | | | |
Total interest income | | $ | 35,820 | | $ | 36,052 | | $ | 35,639 | | $ | 37,397 | | $ | 40,164 | |
Total interest expense | | 10,181 | | 11,814 | | 12,143 | | 15,419 | | 17,275 | |
Net interest income | | 25,639 | | 24,238 | | 23,496 | | 21,978 | | 22,889 | |
Provision for loan losses | | 23,444 | | 5,335 | | 5,986 | | 5,031 | | 1,469 | |
Net interest income after provision | | 2,195 | | 18,903 | | 17,510 | | 16,947 | | 21,420 | |
Noninterest income | | 7,021 | | 9,385 | | 11,570 | | 7,423 | | 8,308 | |
Noninterest expense | | 23,632 | | 21,703 | | 22,477 | | 21,905 | | 20,852 | |
Income before income taxes | | (14,416 | ) | 6,585 | | 6,603 | | 2,465 | | 8,876 | |
Provision (benefit) for income taxes | | (5,803 | ) | 2,422 | | 2,420 | | 870 | | 3,402 | |
Net income before management fees and overhead allocations | | $ | (8,613 | ) | $ | 4,163 | | $ | 4,183 | | $ | 1,595 | | $ | 5,474 | |
Management fees and overhead allocations, net of tax | | — | | — | | — | | — | | — | |
Net income (loss) | | $ | (8,613 | ) | $ | 4,163 | | $ | 4,183 | | $ | 1,595 | | $ | 5,474 | |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | Three months ended | |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |
(in thousands, except per share amounts) | | 2008 | | 2008 | | 2008 | | 2008 | | 2007 | |
Interest income | | $ | 35,820 | | $ | 36,052 | | $ | 35,639 | | $ | 37,397 | | $ | 40,164 | |
Interest expense | | 10,181 | | 11,814 | | 12,143 | | 15,419 | | 17,275 | |
Net interest income before provision | | 25,639 | | 24,238 | | 23,496 | | 21,978 | | 22,889 | |
Provision for loan losses | | 23,444 | | 5,335 | | 5,986 | | 5,031 | | 1,469 | |
Net interest income after provision | | 2,195 | | 18,903 | | 17,510 | | 16,947 | | 21,420 | |
Noninterest income: | | | | | | | | | | | |
Deposit service charges | | 1,111 | | 1,045 | | 972 | | 939 | | 920 | |
Other loan fees | | 265 | | 218 | | 337 | | 197 | | 494 | |
Investment advisory and trust income | | 1,413 | | 1,517 | | 1,739 | | 1,676 | | 1,205 | |
Insurance income | | 3,594 | | 3,743 | | 4,153 | | 3,623 | | 2,238 | |
Investment banking income | | 504 | | 1,062 | | 3,196 | | 293 | | 2,240 | |
Other income | | 134 | | 1,800 | | 1,173 | | 695 | | 1,211 | |
Total noninterest income | | 7,021 | | 9,385 | | 11,570 | | 7,423 | | 8,308 | |
Noninterest expense: | | | | | | | | | | | |
Salaries and employee benefits | | 12,052 | | 13,383 | | 15,616 | | 14,550 | | 13,206 | |
Stock based compensation expense | | 489 | | 393 | | 462 | | 423 | | 412 | |
Occupancy expenses, premises and equipment | | 3,417 | | 3,274 | | 3,247 | | 3,137 | | 3,024 | |
Amortization of intangibles | | 169 | | 166 | | 186 | | 204 | | 118 | |
Other operating expenses | | 4,070 | | 3,390 | | 2,957 | | 3,540 | | 3,477 | |
Loss/(gain) on sale of other assets and securities | | 3,435 | | 1,097 | | 9 | | 51 | | 615 | |
Total noninterest expense | | 23,632 | | 21,703 | | 22,477 | | 21,905 | | 20,852 | |
Income (loss) before income taxes | | (14,416 | ) | 6,585 | | 6,603 | | 2,465 | | 8,876 | |
Provision (benefit) for income taxes | | (5,803 | ) | 2,422 | | 2,420 | | 870 | | 3,402 | |
Net income (loss) | | (8,613 | ) | 4,163 | | 4,183 | | 1,595 | | 5,474 | |
Preferred stock dividends | | (124 | ) | — | | — | | — | | — | |
Net income (loss) available to common shareholders | | $ | (8,737 | ) | $ | 4,163 | | $ | 4,183 | | $ | 1,595 | | $ | 5,474 | |
| | | | | | | | | | | |
Earnings (loss) per common share | | | | | | | | | | | |
Basic | | $ | (0.38 | ) | $ | 0.18 | | $ | 0.18 | | $ | 0.07 | | $ | 0.24 | |
Diluted | | $ | (0.38 | ) | $ | 0.18 | | $ | 0.18 | | $ | 0.07 | | $ | 0.23 | |
| | | | | | | | | | | |
Weighted average shares outstanding (in thousands) | | | | | | | | | | | |
Basic | | 23,144 | | 23,104 | | 23,068 | | 23,017 | | 23,079 | |
Diluted | | 23,144 | | 23,232 | | 23,207 | | 23,281 | | 23,508 | |
| | | | | | | | | | | |
Common shares outstanding at period end (in thousands) | | 23,375 | | 23,361 | | 23,095 | | 23,056 | | 22,993 | |
Book value per common share | | $ | 8.16 | | $ | 8.33 | | $ | 8.33 | | $ | 8.33 | | $ | 8.23 | |
| | | | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | | | |
Net Interest Margin | | 4.15 | % | 4.10 | % | 4.08 | % | 3.99 | % | 4.21 | % |
Efficiency Ratio | | 61.84 | % | 61.28 | % | 64.07 | % | 74.33 | % | 64.87 | % |
Return on Average Assets | | (1.28 | )% | 0.65 | % | 0.67 | % | 0.27 | % | 0.93 | % |
Return on Average Shareholders’ Equity | | (16.78 | )% | 8.49 | % | 8.64 | % | 3.29 | % | 11.45 | % |
Noninterest Income as a Percentage of Operating Revenues | | 21.50 | % | 27.91 | % | 32.99 | % | 25.25 | % | 26.63 | % |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | At | |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |
(in thousands) | | 2008 | | 2008 | | 2008 | | 2008 | | 2007 | |
PERIOD END BALANCES | | | | | | | | | | | |
Total Assets | | $ | 2,684,275 | | $ | 2,606,107 | | $ | 2,548,171 | | $ | 2,449,298 | | $ | 2,391,012 | |
Loans | | 2,031,253 | | 2,001,685 | | 1,961,177 | | 1,875,284 | | 1,846,326 | |
Goodwill and Intangible Assets | | 51,864 | | 51,658 | | 51,824 | | 52,008 | | 45,498 | |
Deposits | | 1,639,031 | | 1,737,262 | | 1,651,933 | | 1,781,406 | | 1,742,689 | |
Subordinated Debentures | | 93,150 | | 92,550 | | 72,166 | | 72,166 | | 72,166 | |
Common Shareholders’ Equity | | 190,635 | | 194,523 | | 192,492 | | 192,114 | | 189,270 | |
Total Shareholders’ Equity | | 252,099 | | 194,523 | | 192,492 | | 192,114 | | 189,270 | |
Interest-Earning Assets | | 2,498,484 | | 2,421,375 | | 2,358,157 | | 2,264,960 | | 2,225,621 | |
Interest-Bearing Liabilities | | 1,954,991 | | 1,951,678 | | 1,889,499 | | 1,809,121 | | 1,741,559 | |
| | | | | | | | | | | |
LOANS | | | | | | | | | | | |
Commercial | | $ | 648,968 | | $ | 621,128 | | $ | 618,677 | | $ | 572,008 | | $ | 576,959 | |
Real Estate - mortgage | | 1,017,444 | | 982,084 | | 929,949 | | 907,962 | | 874,226 | |
Real Estate - construction | | 266,927 | | 305,819 | | 323,554 | | 308,756 | | 309,568 | |
Consumer | | 86,701 | | 80,336 | | 76,457 | | 73,078 | | 71,422 | |
Other | | 11,213 | | 12,318 | | 12,540 | | 13,480 | | 14,151 | |
Gross loans | | 2,031,253 | | 2,001,685 | | 1,961,177 | | 1,875,284 | | 1,846,326 | |
Less allowance for loan losses | | (42,851 | ) | (27,703 | ) | (25,727 | ) | (23,340 | ) | (20,043 | ) |
Net loans | | $ | 1,988,402 | | $ | 1,973,982 | | $ | 1,935,450 | | $ | 1,851,944 | | $ | 1,826,283 | |
| | | | | | | | | | | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | |
NOW and money market | | $ | 565,948 | | $ | 528,272 | | $ | 626,500 | | $ | 697,965 | | $ | 631,391 | |
Savings | | 9,274 | | 10,617 | | 10,726 | | 11,699 | | 11,546 | |
Eurodollar | | 88,025 | | 101,723 | | 100,771 | | 96,069 | | 77,444 | |
Certificates of deposits under $100,000 | | 76,559 | | 97,017 | | 89,059 | | 99,650 | | 112,319 | |
Certificates of deposits $100,000 and over | | 287,039 | | 312,053 | | 340,926 | | 328,820 | | 308,673 | |
Reciprocal CDARS | | 91,844 | | 125,951 | | 16,341 | | 14,625 | | 14,159 | |
Brokered deposits | | 66,611 | | 122,093 | | 21,465 | | 101,703 | | 148,081 | |
Total interest-bearing deposits | | 1,185,300 | | 1,297,726 | | 1,205,788 | | 1,350,531 | | 1,303,613 | |
Noninterest-bearing demand deposits | | 453,731 | | 439,536 | | 446,145 | | 430,875 | | 439,076 | |
Customer repurchase agreements | | 133,478 | | 140,264 | | 131,717 | | 151,680 | | 168,336 | |
Total deposits and customer repurchase agreements | | $ | 1,772,509 | | $ | 1,877,526 | | $ | 1,783,650 | | $ | 1,933,086 | | $ | 1,911,025 | |
| | | | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | | | |
Average Assets | | $ | 2,668,533 | | $ | 2,548,811 | | $ | 2,502,900 | | $ | 2,397,638 | | $ | 2,327,835 | |
Average Loans | | 2,025,859 | | 1,967,742 | | 1,930,674 | | 1,853,493 | | 1,796,787 | |
Average Deposits | | 1,711,063 | | 1,738,114 | | 1,752,757 | | 1,773,337 | | 1,722,486 | |
Average Subordinated Debentures | | 92,902 | | 79,837 | | 72,166 | | 72,166 | | 72,166 | |
Average Shareholders’ Equity | | 204,222 | | 195,124 | | 194,794 | | 194,750 | | 189,669 | |
Average Interest-Earning Assets | | 2,479,183 | | 2,374,202 | | 2,334,972 | | 2,229,415 | | 2,173,297 | |
Average Interest-Bearing Liabilities | | 1,998,161 | | 1,900,532 | | 1,850,421 | | 1,764,746 | | 1,669,527 | |
| | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | |
Nonperforming Loans | | | | | | | | | | | |
Loans 90 days or more past due and accruing interest | | $ | 1,292 | | $ | 1,650 | | $ | 1,096 | | $ | 4,825 | | $ | 2,208 | |
Nonaccrual loans | | 39,786 | | 22,254 | | 19,078 | | 12,974 | | 1,202 | |
Total nonperforming loans | | $ | 41,078 | | $ | 23,904 | | $ | 20,174 | | $ | 17,799 | | $ | 3,410 | |
OREO and Repossessed Assets | | 5,941 | | 7,008 | | 2,580 | | 5 | | 90 | |
Total nonperforming assets | | $ | 47,019 | | $ | 30,912 | | $ | 22,754 | | $ | 17,804 | | $ | 3,500 | |
| | | | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | | | |
Nonperforming Assets to Total Assets | | 1.75 | % | 1.19 | % | 0.89 | % | 0.73 | % | 0.15 | % |
Nonperforming Loans to Total Loans | | 2.02 | % | 1.19 | % | 1.03 | % | 0.95 | % | 0.18 | % |
Nonperforming Loans and OREO to Total Loans and OREO | | 2.31 | % | 1.54 | % | 1.16 | % | 0.95 | % | 0.19 | % |
Allowance for Loan and Credit Losses to Total Loans | | 2.12 | % | 1.40 | % | 1.32 | % | 1.28 | % | 1.12 | % |
Allowance for Loan and Credit Losses to Nonperforming Loans | | 104.95 | % | 116.98 | % | 128.66 | % | 134.37 | % | 604.69 | % |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | For the three months ended December 31, | |
| | | | 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 | | $ | 6,348 | | $ | 53 | | 3.27 | % | $ | 7,010 | | $ | 97 | | 5.41 | % |
Investment securities | | 477,700 | | 6,254 | | 5.24 | % | 388,573 | | 5,100 | | 5.14 | % |
Loans | | 2,025,859 | | 29,715 | | 5.74 | % | 1,796,787 | | 35,136 | | 7.65 | % |
Allowance for loan losses | | (30,724 | ) | | | | | (19,073 | ) | | | | |
Total interest-earning assets | | $ | 2,479,183 | | $ | 36,022 | | 5.64 | % | $ | 2,173,297 | | $ | 40,333 | | 7.26 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 51,984 | | | | | | 45,857 | | | | | |
Other | | 137,366 | | | | | | 108,681 | | | | | |
Total assets | | $ | 2,668,533 | | | | | | $ | 2,327,835 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market | | $ | 527,066 | | $ | 1,912 | | 1.44 | % | $ | 616,220 | | $ | 4,779 | | 3.08 | % |
Savings | | 8,319 | | 10 | | 0.48 | % | 11,238 | | 52 | | 1.84 | % |
Eurodollar | | 110,712 | | 443 | | 1.57 | % | 71,760 | | 640 | | 3.54 | % |
Certificates of deposit | | | | | | | | | | | | | |
Brokered under $100,000 | | 111,739 | | 794 | | 2.82 | % | 156,472 | | 2,052 | | 5.20 | % |
Under $100,000 | | 221,428 | | 1,316 | | 2.36 | % | 129,624 | | 1,605 | | 4.91 | % |
$100,000 and over | | 286,318 | | 2,197 | | 3.05 | % | 286,929 | | 3,514 | | 4.86 | % |
Total interest-bearing deposits | | $ | 1,265,582 | | $ | 6,672 | | 2.09 | % | $ | 1,272,243 | | $ | 12,642 | | 3.94 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 132,738 | | 439 | | 1.29 | % | 193,249 | | 1,588 | | 3.22 | % |
Other short-term borrowings | | 506,939 | | 1,539 | | 1.19 | % | 131,869 | | 1,627 | | 4.83 | % |
Subordinated debentures | | 92,902 | | 1,531 | | 6.45 | % | 72,166 | | 1,418 | | 7.69 | % |
Total interest-bearing liabilities | | $ | 1,998,161 | | $ | 10,181 | | 2.01 | % | $ | 1,669,527 | | $ | 17,275 | | 4.09 | % |
Noninterest-bearing demand accounts | | 445,481 | | | | | | 450,243 | | | | | |
Total deposits and interest-bearing liabilities | | 2,443,642 | | | | | | 2,119,770 | | | | | |
Other noninterest-bearing liabilities | | 20,669 | | | | | | 18,396 | | | | | |
Total liabilities | | 2,464,311 | | | | | | 2,138,166 | | | | | |
Shareholders’ equity | | 204,222 | | | | | | 189,669 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,668,533 | | | | | | $ | 2,327,835 | | | | | |
Net interest income | | | | $ | 25,841 | | | | | | $ | 23,058 | | | |
Net interest spread | | | | | | 3.63 | % | | | | | 3.17 | % |
Net interest margin | | | | | | 4.15 | % | | | | | 4.21 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 124.07 | % | | | | | 130.17 | % | | | | |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
| | For the year ended December 31, | |
| | | | 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 | | 7,958 | | $ | 274 | | 3.44 | % | $ | 8,557 | | $ | 456 | | 5.33 | % |
Investment securities | | 427,902 | | 22,298 | | 5.21 | % | 410,361 | | 21,207 | | 5.17 | % |
Loans | | 1,944,728 | | 123,055 | | 6.33 | % | 1,665,379 | | 133,446 | | 8.01 | % |
Allowance for loan losses | | (25,750 | ) | | | | | (18,559 | ) | | | | |
Total interest earning-assets | | $ | 2,354,838 | | $ | 145,627 | | 6.11 | % | $ | 2,065,738 | | $ | 155,109 | | 7.51 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 44,846 | | | | | | 45,097 | | | | | |
Other | | 130,217 | | | | | | 107,790 | | | | | |
Total assets | | $ | 2,529,901 | | | | | | $ | 2,218,625 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and money market | | $ | 622,295 | | $ | 12,280 | | 1.97 | % | $ | 584,677 | | $ | 18,673 | | 3.19 | % |
Savings | | 10,217 | | 122 | | 1.19 | % | 11,184 | | 194 | | 1.73 | % |
Eurodollar | | 108,154 | | 2,180 | | 2.02 | % | 26,326 | | 985 | | 3.74 | % |
Certificates of deposits | | | | | | | | | | | | | |
Brokered under $100,000 | | 104,421 | | 3,919 | | 3.75 | % | 114,867 | | 6,066 | | 5.28 | % |
Under $100,000 | | 147,314 | | 4,755 | | 3.23 | % | 117,331 | | 5,693 | | 4.85 | % |
$100,000 and over | | 316,385 | | 11,415 | | 3.61 | % | 270,980 | | 13,253 | | 4.89 | % |
Total interest-bearing deposits | | $ | 1,308,786 | | $ | 34,671 | | 2.65 | % | $ | 1,125,365 | | $ | 44,864 | | 3.99 | % |
Other borrowings | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | 147,230 | | 2,669 | | 1.81 | % | 228,342 | | 8,379 | | 3.67 | % |
Other short-term borrowings | | 343,530 | | 7,327 | | 2.13 | % | 145,916 | | 7,717 | | 5.29 | % |
Subordinated debentures | | 79,306 | | 4,890 | | 6.17 | % | 72,166 | | 5,651 | | 7.83 | % |
Total interest-bearing liabilities | | $ | 1,878,852 | | $ | 49,557 | | 2.64 | % | $ | 1,571,789 | | $ | 66,611 | | 4.24 | % |
Noninterest-bearing demand accounts | | 434,926 | | | | | | 439,285 | | | | | |
Total deposits and interest-bearing liabilities | | 2,313,778 | | | | | | 2,011,074 | | | | | |
Other noninterest-bearing liabilities | | 18,888 | | | | | | 18,049 | | | | | |
Total liabilities and preferred securities | | 2,332,666 | | | | | | 2,029,123 | | | | | |
Shareholders’ equity | | 197,235 | | | | | | 189,502 | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,529,901 | | | | | | $ | 2,218,625 | | | | | |
Net interest income | | | | $ | 96,070 | | | | | | $ | 88,498 | | | |
Net interest spread | | | | | | 3.47 | % | | | | | 3.27 | % |
Net interest margin | | | | | | 4.08 | % | | | | | 4.28 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 125.33 | % | | | | | 131.43 | % | | | | |
CoBiz Financial Inc.
December 31, 2008
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
The following table reflects adjustments to pre-tax net income, as reported, to exclude the effects of the provision for loan and credit losses and valuation adjustments recorded on OREO and investment securities.
| | December 31, 2008 | | December 31, 2007 | |
| | | | | |
Pre-tax net income as reported - GAAP | | $ | 1,237 | | $ | 36,737 | |
| | | | | |
Effect of excluding the provision for loan and credit losses | | 39,478 | | 3,936 | |
| | | | | |
Adjusted pre-tax net income (Non-GAAP) | | $ | 40,715 | | $ | 40,673 | |
| | | | | |
Effect of excluding the valuation adjustments | | | | | |
OREO write-down | | 2,920 | | — | |
Trust Preferred Securities OTTI | | 1,280 | | 494 | |
FNMA Preferred Security OTTI | | 377 | | — | |
| | | | | |
Adjusted pre-tax net income (Non-GAAP) | | $ | 45,292 | | $ | 41,167 | |
| | | | | |
Pre-tax net income decrease as reported - GAAP | | -96.6 | % | | |
| | | | | |
Adjusted pre-tax net income increase (Non-GAAP) | | 10.0 | % | | |
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.
| | December 31, 2008 | |
| | | |
Shareholders’ equity as reported - GAAP | | $ | 252,099 | |
| | | |
Goodwill and intangible assets | | (51,864 | ) |
| | | |
Tangible equity - Non-GAAP | | $ | 200,235 | |
| | | |
Total assets as reported - GAAP | | $ | 2,684,275 | |
| | | |
Goodwill and intangible assets | | (51,864 | ) |
| | | |
Total tangible assets - Non-GAAP | | $ | 2,632,411 | |
| | | |
Shareholders’ equity to total assets as reported - GAAP | | 9.39 | % |
| | | |
Tangible equity to total tangible assets - Non-GAAP | | 7.61 | % |
