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

Exhibit 99.1

CoBiz Financial Announces First Quarter 2015 Results

Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $3.1 billion in assets, announced net income available to common shareholders of $7.2 million for the first quarter of 2015, or $0.18 per diluted common share, as compared to $5.4 million, or $0.13 per diluted common share, for the prior-year quarter. Return on average assets for the first quarter of 2015 was 0.98% versus 0.80% for the prior-year quarter, and return on average shareholders’ equity was 9.5% for the first quarter of 2015 versus 7.9% for the prior-year quarter.

Financial Highlights –First Quarter 2015

· Loans at March 31, 2015 increased $44.0 million from December 31, 2014 and $297.2 million, or 13.8%, from March 31, 2014.

· Deposits at March 31, 2015 increased $54.9 million from December 31, 2014, and $224.5 million, or 9.7%, from March 31, 2014.  

· Net interest income on a tax-equivalent basis (NII) increased $0.6 million from the fourth quarter of 2014 (linked-quarter), and $3.4 million, or 13.3%, from the prior-year quarter.  

· The net interest margin (NIM) increased to 4.06% in the first quarter of 2015, from 3.94% in the linked-quarter and 3.90% in the prior-year quarter. The NIM benefited from recaptured past due interest from problem loan resolutions during the current quarter. Excluding these adjustments, the core NIM was 3.89% for the first quarter of 2015 (See accompanying Reconciliation of Non-GAAP measures to GAAP).

Financial Summary

	Quarter ended (unaudited)										1Q15 change vs.
(in thousands, except per share amounts)	1Q15			4Q14			1Q14			4Q14				1Q14
Net interest income before provision	$	28,001		$	27,568		$	24,905		$	433	1.6	%	$	3,096	12.4	%
Provision for loan losses		(789)			(874)			(1,888)			85	9.7	%		1,099	58.2	%
Net interest income after provision		28,790			28,442			26,793			348	1.2	%		1,997	7.5	%
Total noninterest income		7,318			7,492			5,494			(174)	(2.3)	%		1,824	33.2	%
Total noninterest expense		25,363			24,898			23,409			465	1.9	%		1,954	8.3	%
Net income before income taxes		10,745			11,036			8,878			(291)	(2.6)	%		1,867	21.0	%
Provision for income taxes		3,342			3,749			3,050			(407)	(10.9)	%		292	9.6	%
Income from continuing operations		7,403			7,287			5,828			116	1.6	%		1,575	27.0	%
Discontinued operations, net of tax(1)		(71)			(305)			(311)			234	76.7	%		240	77.2	%
Net income		7,332			6,982			5,517			350	5.0	%		1,815	32.9	%
Preferred stock dividends		(143)			(144)			(143)			1	0.7	%		-	0.0	%
Net income available to common shareholders	$	7,189		$	6,838		$	5,374		$	351	5.1	%	$	1,815	33.8	%
Diluted earnings per common share	$	0.18		$	0.17		$	0.13		$	0.01	4.8	%	$	0.05	35.4	%
KEY RATIOS
Net interest margin		4.06	%		3.94	%		3.90	%
Efficiency ratio(2)		69.42	%		69.63	%		75.49	%
Return on average assets		0.98	%		0.92	%		0.80	%
Return on average shareholders' equity		9.51	%		9.05	%		7.86	%
Noninterest income as a percentage of operating revenues		20.05	%		20.79	%		17.58	%

1 | Page

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

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

“We are off to a good start for 2015,” said Chairman and CEO Steve Bangert. “Despite continued headwinds from loan prepayments, we reported healthy loan growth. In addition, we had a good quarter for deposits, with deposit inflows exceeding net loan fundings. Our earnings were also supported by a strong net interest margin which benefited from favorable credit resolutions.” 

Loans

· Loans at March 31, 2015 were $2.4 billion, increasing $44.0 million from December 31, 2014. From March 31, 2014, loans increased $297.2 million, or 13.8%.

· Loans increased $47.1 million for Arizona but declined $3.1 million in Colorado from the linked-quarter end, as the Colorado market experienced a high level of paydowns and maturities, particularly within its commercial real estate portfolio.

	Quarter ended (unaudited)							1Q15 change vs.
(in thousands)	1Q15		4Q14		1Q14		4Q14				1Q14
LOANS
Commercial	$	1,034,189	$	977,699	$	860,060	$	56,490	5.8	%	$	174,129	20.2	%
Owner-occupied real estate		427,838		422,471		463,192		5,367	1.3	%		(35,354)	(7.6)	%
Investor real estate		546,947		567,248		462,855		(20,301)	(3.6)	%		84,092	18.2	%
Construction & land		179,749		181,864		136,018		(2,115)	(1.2)	%		43,731	32.2	%
Consumer		213,543		207,955		183,156		5,588	2.7	%		30,387	16.6	%
Other		47,276		48,338		47,013		(1,062)	(2.2)	%		263	0.6	%
Total loans	$	2,449,542	$	2,405,575	$	2,152,294	$	43,967	1.8	%	$	297,248	13.8	%

· The first quarter of the fiscal year is normally the lowest period for new credit extension, and the Company observed a typical decline from the linked-quarter. However, new credit extensions during the first quarter of 2015 improved from the prior-year quarter. 

· Paydowns and maturities, while less than the fourth quarter of 2014, were elevated in the first quarter of 2015 as compared to the prior-year quarter.  

	Quarter ended (unaudited)
(in thousands)	1Q15		4Q14		3Q14		2Q14		1Q14
Loans - beginning balance	$	2,405,575	$	2,357,069	$	2,294,644	$	2,152,294	$	2,084,359
New credit extended		151,539		177,247		146,458		201,805		105,542
Credit advanced		105,157		100,921		106,011		117,203		90,736
Paydowns & maturities		(211,937)		(228,914)		(189,822)		(175,311)		(128,143)
Gross loan charge-offs		(792)		(748)		(222)		(1,347)		(200)
Loans - ending balance	$	2,449,542	$	2,405,575	$	2,357,069	$	2,294,644	$	2,152,294
Net change - loans outstanding	$	43,967	$	48,506	$	62,425	$	142,350	$	67,935

· Commercial line utilization was 36.9% at March 31, 2015, compared to 36.2% and 38.7%, respectively, at the linked- and prior-year quarter ends.  

2 | Page

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

· Customer Funding at March 31, 2015 increased $63.8 million from the linked-quarter end and $193.8 million from the prior-year quarter end.  

· Noninterest-bearing demand (NIB) accounts had a seasonal decline of $13.1 million from the linked-quarter. The percentage of NIB to total deposits was 41.6% at March 31, 2015.  

	Quarter ended (unaudited)							1Q15 change vs.
(in thousands)	1Q15		4Q14		1Q14		4Q14				1Q14
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	687,199	$	661,519	$	590,596	$	25,680	3.9	%	$	96,603	16.4	%
Interest-bearing demand		589,401		531,365		542,304		58,036	10.9	%		47,097	8.7	%
Savings		16,811		15,236		13,979		1,575	10.3	%		2,832	20.3	%
Certificates of deposits under $100		23,405		24,184		26,965		(779)	(3.2)	%		(3,560)	(13.2)	%
Certificates of deposits $100 and over		113,030		122,216		130,226		(9,186)	(7.5)	%		(17,196)	(13.2)	%
Reciprocal CDARS		57,317		64,607		81,589		(7,290)	(11.3)	%		(24,272)	(29.7)	%
Total interest-bearing deposits		1,487,163		1,419,127		1,385,659		68,036	4.8	%		101,504	7.3	%
Noninterest-bearing demand deposits		1,060,054		1,073,164		937,077		(13,110)	(1.2)	%		122,977	13.1	%
Customer repurchase agreements		58,814		49,976		89,521		8,838	17.7	%		(30,707)	(34.3)	%
Total deposits and customer repurchase agreements	$	2,606,031	$	2,542,267	$	2,412,257	$	63,764	2.5	%	$	193,774	8.0	%

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

· Nonperforming assets were $11.9 million at March 31, 2015, compared to $15.0 million at December 31, 2014, and $15.5 million at March 31, 2014. 

· The Company had net recoveries of $0.5 million in the first quarter of 2015. A negative provision for loan losses of $0.8 million was recorded in the first quarter of 2015.

· The resulting Allowance equated to 1.33% of total loans, and the coverage of Allowance to nonperforming loans was 533.9% at March 31, 2015.

	Quarter ended (unaudited)
(in thousands)	1Q15			4Q14			1Q14
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	32,765		$	33,682		$	37,050
Provision for loan losses		(789)			(874)			(1,888)
Net recovery (charge-off)		526			(43)			441
Ending allowance for loan losses	$	32,502		$	32,765		$	35,603
CREDIT QUALITY
Nonaccrual loans	$	6,088		$	8,994		$	10,618
Loans 90 days or more past due and accruing interest		-			161			-
Total nonperforming loans		6,088			9,155			10,618
OREO and repossessed assets		5,786			5,819			4,911
Total nonperforming assets	$	11,874		$	14,974		$	15,529
Performing renegotiated loans	$	27,139		$	27,275		$	30,290
Classified loans	$	36,792		$	36,940		$	38,278
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.38	%		0.49	%		0.54	%
Nonperforming loans to total loans		0.25	%		0.38	%		0.49	%
Nonperforming loans and OREO to total loans and OREO		0.48	%		0.62	%		0.72	%
Allowance for loan and credit losses to total loans		1.33	%		1.36	%		1.65	%
Allowance for loan and credit losses to nonperforming loans		533.87	%		357.89	%		335.31	%

3 | Page

Shareholders’ Equity

· On April 16, 2015, the Board of Directors of the Company declared a quarterly cash dividend of $0.04 per common share. The dividend will be paid on May 4, 2015 to shareholders of record on April 27, 2015.

	Quarter ended (unaudited)
(in thousands, except per share amounts)	1Q15			4Q14			1Q14
EQUITY MEASURES
Common shareholders' equity	$	258,291		$	251,431		$	230,182
Total shareholders' equity		315,629			308,769			287,520
Common shares outstanding at period end		40,988			40,770			40,622
Book value per common share	$	6.30		$	6.17		$	5.67
Tangible book value per common share *	$	6.24		$	6.11		$	5.60
Tangible common equity to tangible assets *		8.29	%		8.14	%		7.98	%
Tangible equity to tangible assets *		10.14	%		10.01	%		10.00	%
Tier 1 capital ratio		**			14.42	%		14.43	%
Total-risk based capital ratio		**			15.67	%		15.68	%

* See accompanying Reconciliation of Non-GAAP measures to GAAP

** Ratios unavailable at the time of release.

Net Interest Income and Margin

· Net interest income on a tax-equivalent basis was $29.2 million for the first quarter of 2015, an increase of $0.6 million from the linked-quarter.  

· The reported net interest margin expanded 12 basis points on a linked-quarter basis to 4.06%. However, the core NIM was relatively stable (See accompanying Reconciliation of Non-GAAP measures to GAAP).

o Positively affecting net interest income and the NIM during the current quarter was past-due interest collected on problem loan resolutions of $1.2 million. Excluding these items, the core NIM for the first quarter of 2015 was 3.89%.

o Excluding prepayment penalties and other adjustments, the core NIM for the fourth quarter of 2014 was 3.90%.

· From December 31, 2014, average loans increased $48.7 million while average federal funds sold, interest-earning deposits and investments decreased $9.7 million.  

o As a a percentage of average interest-earning assets, the Company’s investment portfolio declined to 16.7% at March 31, 2015 from 17.1% at the linked-quarter end.

· Average deposits increased $44.9 million from the linked-quarter end, with average noninterest-bearing deposits decreasing $10.3 million from the linked-quarter end.

Noninterest Income

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

· Total noninterest income decreased $0.2 million to $7.3 million from the linked- quarter, primarily due to a decline in both miscellaneous loan fees and income from equity method investments.

· From the prior year quarter, noninterest income increased $1.8 million, or 33.2%.

o Noninterest income for the first quarter of 2014 was adversely impacted by a $1.3 million valuation adjustment on a limited partnership investment.

· Noninterest income as a percentage of operating income was 20.0% for the first quarter of 2015, as compared to 20.8% and 17.6%, respectively, for the linked- and prior-year quarters. 

4 | Page

	Quarter ended (unaudited)							1Q15 change vs.
(in thousands)	1Q15		4Q14		1Q14		4Q14				1Q14
Noninterest income:
Deposit service charges	$	1,493	$	1,404	$	1,376	$	89	6.3	%	$	117	8.5	%
Investment advisory income		1,495		1,454		1,422		41	2.8	%		73	5.1	%
Insurance income		2,950		2,872		2,762		78	2.7	%		188	6.8	%
Other income		1,380		1,762		(66)		(382)	(21.7)	%		1,446	NM	%
Total noninterest income	$	7,318	$	7,492	$	5,494	$	(174)	(2.3)	%	$	1,824	33.2	%

Operating Expenses

· Total noninterest expense increased $0.5 million from the linked- quarter and $2.0 million from the prior-year quarter.

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

o Total full-time equivalent employees at March 31, 2015 were 529, compared to 524 at December 31, 2014 and 512 at March 31, 2014.

· The efficiency ratio was 69.4% for the first quarter of 2015, as compared to 69.6% and 75.5%, respectively, for the linked- and prior-year quarters.

	Quarter ended (unaudited)							1Q15 change vs.
(in thousands)	1Q15		4Q14		1Q14		4Q14				1Q14
Noninterest expense:
Salaries and employee benefits	$	16,975	$	16,618	$	15,306	$	357	2.1	%	$	1,669	10.9	%
Stock-based compensation expense		1,165		712		1,014		453	63.6	%		151	14.9	%
Occupancy expenses, premises and equipment		3,149		3,358		3,097		(209)	(6.2)	%		52	1.7	%
Amortization of intangibles		150		150		151		-	-	%		(1)	(0.7)	%
Other operating expenses		3,893		4,229		4,025		(336)	(7.9)	%		(132)	(3.3)	%
Net (gain) loss on OREO, repossessed assets and other		31		(169)		(184)		200	118.3	%		215	116.8	%
Total noninterest expense	$	25,363	$	24,898	$	23,409	$	465	1.9	%	$	1,954	8.3	%

Earnings Conference Call

In conjunction with this release, you are invited to listen to the Company's conference call on Friday, April 17, 2015, at 9:00 am MDT with Steve Bangert, chairman and CEO of CoBiz Financial Inc. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=102017 or by telephone at 877.493.9121, (conference ID # 18899554). International callers may dial:  973.582.2750.  

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

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

Contact Information

CoBiz Financial Inc.

Lyne Andrich 303.312.3458

About CoBiz Financial

CoBiz Financial (NASDAQ:COBZ) is a $3.1 billion financial services company that serves the complete financial needs of businesses, business owners and professionals in Colorado and Arizona. The Company provides banking services through Colorado Business Bank, Arizona Business Bank and CoBiz Private Bank; wealth planning and investment management through CoBiz Wealth Management; and property and casualty insurance brokerage and employee benefits through CoBiz Insurance.  

5 | Page

Forward-Looking Information

This release contains forward-looking statements that describe CoBiz's future plans, strategies and expectations. Forward-looking statements include statements about future performance and results of operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "would”, "could", “should” or "may." Forward-looking statements speak only as of the date they are made. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Such risks and uncertainties include, among other things:

· Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Form 10-K.

· Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.

· Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.

· Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and related expenses.

· Our ability to manage growth effectively could adversely affect our results of operations and prospects.

· Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.

· The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.

· Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.

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

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

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

6 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

	Three months ended March 31,
(in thousands, except per share amounts)	2015			2014
INCOME STATEMENT DATA
Interest income	$	29,964		$	26,991
Interest expense		1,963			2,086
NET INTEREST INCOME BEFORE PROVISION		28,001			24,905
Provision for loan losses		(789)			(1,888)
NET INTEREST INCOME AFTER PROVISION		28,790			26,793
Noninterest income		7,318			5,494
Noninterest expense		25,363			23,409
INCOME BEFORE INCOME TAXES		10,745			8,878
Provision for income taxes		3,342			3,050
NET INCOME FROM CONTINUING OPERATIONS		7,403			5,828
Income from discontinued operations, net of tax		(71)			(311)
NET INCOME	$	7,332		$	5,517
Preferred stock dividends		(143)			(143)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	7,189		$	5,374
EARNINGS PER COMMON SHARE
BASIC	$	0.18		$	0.13
DILUTED	$	0.18		$	0.13
EQUITY MEASURES
Common shares outstanding at period end (in thousands)		40,988			40,622
Book value per common share	$	6.30		$	5.67
Tangible book value per common share *	$	6.24		$	5.60
Tangible common equity to tangible assets *		8.29	%		7.98	%
Tangible equity to tangible assets *		10.14	%		10.00	%
* See accompanying Reconciliation of Non-GAAP Measures to GAAP
PERIOD END BALANCES
Total assets	$	3,090,226		$	2,852,782
Investments		488,186			547,211
Loans		2,449,542			2,152,294
Intangible assets		2,376			2,647
Deposits		2,547,217			2,322,736
Subordinated debentures		72,166			72,166
Common shareholders' equity		258,291			230,182
Total shareholders' equity		315,629			287,520
Interest-earning assets		2,945,276			2,713,376
Interest-bearing liabilities		1,691,143			1,607,347
BALANCE SHEET AVERAGES
Average assets	$	3,038,010		$	2,797,695
Average investments		486,460			551,263
Average loans		2,409,171			2,108,563
Average deposits		2,495,616			2,276,814
Average subordinated debentures		72,166			72,166
Average shareholders' equity		312,757			284,527
Average interest-earning assets		2,916,283			2,677,847
Average interest-bearing liabilities		1,666,630			1,484,532

7 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

	Three months ended March 31,
(in thousands)		2015			2014
PROFITABILITY MEASURES
Net interest margin		4.06	%		3.90	%
Efficiency ratio - tax equivalent		69.42	%		75.49	%
Return on average assets		0.98	%		0.80	%
Return on average shareholders' equity		9.51	%		7.86	%
Noninterest income as a percentage of operating revenues		20.05	%		17.58	%
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans	$	6,088		$	10,618
Loans 90 days or more past due and accruing interest		-			-
Total nonperforming loans		6,088			10,618
OREO & repossessed assets		5,786			4,911
Total nonperforming assets	$	11,874		$	15,529
Performing renegotiated loans	$	27,139		$	30,290
Classified loans	$	36,792		$	38,278
Charge-offs	$	(792)		$	(200)
Recoveries		1,318			641
Net charge-offs	$	526		$	441
Nonperforming assets to total assets		0.38	%		0.54	%
Nonperforming loans to total loans		0.25	%		0.49	%
Nonperforming loans and OREO to total loans and OREO		0.48	%		0.72	%
Allowance for loan and credit losses to total loans		1.33	%		1.65	%
Allowance for loan and credit losses to nonperforming loans		533.87	%		335.31	%

										Total		NPAs as a
NONPERFORMING ASSETS BY MARKET	Colorado			Arizona			Total			in Category		%
Commercial	$	2,930		$	708		$	3,638		$	1,034,189	0.35	%
Real estate - mortgage		375			1,610			1,985			974,785	0.20	%
Construction & land		30			-			30			179,749	0.02	%
Consumer		435			-			435			213,543	0.20	%
Other loans		-			-			-			47,276	-	%
OREO & repossessed assets		5,491			295			5,786			5,786	-
NPAs	$	9,261		$	2,613		$	11,874		$	2,455,328	0.48	%
Total loans	$	1,729,317		$	720,225		$	2,449,542
Total loans and OREO		1,734,808			720,520			2,455,328
Nonperforming loans to loans		0.22	%		0.32	%		0.25	%
Nonperforming loans and OREO to total loans and OREO		0.53	%		0.36	%		0.48	%

8 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

	Three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands, except per share amounts)	2015			2014			2014			2014			2014
Interest income	$	29,964		$	29,611		$	29,205		$	28,510		$	26,991
Interest expense		1,963			2,043			2,143			2,157			2,086
Net interest income before provision		28,001			27,568			27,062			26,353			24,905
Provision for loan losses		(789)			(874)			(452)			(941)			(1,888)
Net interest income after provision		28,790			28,442			27,514			27,294			26,793
Noninterest income:
Deposit service charges	$	1,493		$	1,404		$	1,424		$	1,394		$	1,376
Investment advisory income		1,495			1,454			1,418			1,442			1,422
Insurance income		2,950			2,872			2,622			2,894			2,762
Investment banking income		1,380			1,762			1,916			1,813			(66)
Total noninterest income		7,318			7,492			7,380			7,543			5,494
Noninterest expense:
Salaries and employee benefits	$	16,975		$	16,618		$	15,513		$	15,430		$	15,306
Stock-based compensation expense		1,165			712			704			711			1,014
Occupancy expenses, premises and equipment		3,149			3,358			3,258			3,387			3,097
Amortization of intangibles		150			150			147			149			151
Other operating expenses		3,893			4,229			4,298			4,476			4,025
Net (gain) loss on securities, other assets and OREO		31			(169)			(598)			(1,646)			(184)
Total noninterest expense		25,363			24,898			23,322			22,507			23,409
Net income before income taxes		10,745			11,036			11,572			12,330			8,878
Provision for income taxes		3,342			3,749			4,039			4,180			3,050
Net income from continuing operations		7,403			7,287			7,533			8,150			5,828
Net income (loss) from discontinuing operations		(71)			(305)			358			467			(311)
Net income		7,332			6,982			7,891			8,617			5,517
Preferred stock dividends		(143)			(144)			(144)			(143)			(143)
Net income available to common shareholders	$	7,189		$	6,838		$	7,747		$	8,474		$	5,374
Earnings per common share
Basic	$	0.18		$	0.17		$	0.19		$	0.21		$	0.13
Diluted	$	0.18		$	0.17		$	0.19		$	0.21		$	0.13
PROFITABILITY MEASURES
Net interest margin		4.06	%		3.94	%		3.90	%		3.92	%		3.90	%
Efficiency ratio - tax equivalent		69.42	%		69.63	%		67.39	%		69.35	%		75.49	%
Return on average assets		0.98	%		0.92	%		1.05	%		1.19	%		0.80	%
Return on average shareholders' equity		9.51	%		9.05	%		10.46	%		11.86	%		7.86	%
Noninterest income as a percentage of operating revenues		20.05	%		20.79	%		20.79	%		21.66	%		17.58	%
EQUITY MEASURES
Common shares outstanding at period end (in thousands)		40,988			40,770			40,691			40,642			40,622
Diluted weighted average common shares outstanding (in thousands)		40,456			40,374			40,228			40,134			39,979
Book value per common share	$	6.30		$	6.17		$	6.03		$	5.87		$	5.67
Tangible book value per common share *	$	6.24		$	6.11		$	5.96		$	5.81		$	5.60
Tangible common equity to tangible assets *		8.29	%		8.14	%		8.02	%		7.82	%		7.98	%
Tangible equity to tangible assets *		10.14	%		10.01	%		9.92	%		9.71	%		10.00	%
Tier 1 capital ratio		**			14.42	%		14.46	%		14.18	%		14.43	%
Total risk based capital ratio		**			15.67	%		15.71	%		15.43	%		15.68	%

* See accompanying Reconciliation of Non-GAAP Measures to GAAP

** Ratios unavailable at the time of release.

9 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

	At
	March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands)	2015			2014			2014			2014			2014
PERIOD END BALANCES
Total assets	$	3,090,226		$	3,062,166		$	3,028,864		$	3,024,832		$	2,852,782
Investments		488,186			484,621			500,526			526,797			547,211
Loans		2,449,542			2,405,575			2,357,069			2,294,644			2,152,294
Intangible assets		2,376			2,526			2,676			2,498			2,647
Deposits		2,547,217			2,492,291			2,366,376			2,299,153			2,322,736
Subordinated debentures		72,166			72,166			72,166			72,166			72,166
Common shareholders' equity		258,291			251,431			245,392			238,760			230,182
Total shareholders' equity		315,629			308,769			302,730			296,098			287,520
Interest-earning assets		2,945,276			2,927,132			2,892,095			2,885,380			2,713,376
Interest-bearing liabilities		1,691,143			1,653,738			1,698,415			1,745,284			1,607,347
LOANS
Commercial	$	1,034,189		$	977,699		$	962,438		$	917,494		$	860,060
Real estate - mortgage		974,785			989,719			964,100			978,399			926,047
Construction & land		179,749			181,864			182,288			160,452			136,018
Consumer		213,543			207,955			202,414			194,339			183,156
Other		47,276			48,338			45,829			43,960			47,013
Gross loans		2,449,542			2,405,575			2,357,069			2,294,644			2,152,294
Less allowance for loan losses		(32,502)			(32,765)			(33,682)			(33,922)			(35,603)
Total net loans	$	2,417,040		$	2,372,810		$	2,323,387		$	2,260,722		$	2,116,691
Gross Loans - Colorado		1,729,317			1,732,453			1,717,764			1,683,720			1,600,759
Gross Loans - Arizona		720,225			673,122			639,305			610,924			551,535
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS
Money market	$	687,199		$	661,519		$	619,377		$	599,234		$	590,596
Interest-bearing demand		589,401			531,365			509,352			491,347			542,304
Savings		16,811			15,236			19,091			15,134			13,979
Certificates of deposits under $100		23,405			24,184			24,971			25,704			26,965
Certificates of deposits $100 and over		113,030			122,216			127,054			126,487			130,226
Brokered CDs		-			-			-			19,996			-
Reciprocal CDARS		57,317			64,607			64,610			60,651			81,589
Total interest-bearing deposits		1,487,163			1,419,127			1,364,455			1,338,553			1,385,659
Noninterest-bearing demand deposits		1,060,054			1,073,164			1,001,921			960,600			937,077
Customer repurchase agreements		58,814			49,976			76,041			74,565			89,521
Total deposits and customer repurchase agreements	$	2,606,031		$	2,542,267		$	2,442,417		$	2,373,718		$	2,412,257
BALANCE SHEET AVERAGES
Average assets	$	3,038,010		$	3,003,084		$	2,983,493		$	2,913,504		$	2,797,695
Average investments		486,460			491,764			512,579			536,450			551,263
Average loans		2,409,171			2,360,469			2,327,777			2,236,728			2,108,563
Average deposits		2,495,616			2,450,685			2,351,330			2,267,573			2,276,814
Average subordinated debentures		72,166			72,166			72,166			72,166			72,166
Average shareholders' equity		312,757			306,226			299,404			291,469			284,527
Average interest-earning assets		2,916,283			2,877,329			2,860,327			2,792,091			2,677,847
Average interest-bearing liabilities		1,666,630			1,624,211			1,684,757			1,654,752			1,484,532
ALLOWANCE FOR LOAN AND CREDIT LOSSES
Beginning allowance for loan losses	$	32,765		$	33,682		$	33,922		$	35,603		$	37,050
Provision for loan losses		(789)			(874)			(452)			(941)			(1,888)
Net recovery (charge-off)		526			(43)			212			(740)			441
Ending allowance for loan losses	$	32,502		$	32,765		$	33,682		$	33,922		$	35,603
CREDIT QUALITY
Nonperforming loans
Nonaccrual loans	$	6,088		$	8,994		$	8,273		$	7,861		$	10,618
Loans 90 days or more past due and accruing interest		-			161			-			134			-
Total nonperforming loans		6,088			9,155			8,273			7,995			10,618
OREO and repossessed assets		5,786			5,819			3,750			4,148			4,911
Total nonperforming assets	$	11,874		$	14,974		$	12,023		$	12,143		$	15,529
Performing renegotiated loans	$	27,139		$	27,275		$	29,121		$	24,033		$	30,290
Classified loans	$	36,792		$	36,940		$	36,534		$	41,357		$	38,278
ASSET QUALITY MEASURES
Nonperforming assets to total assets		0.38	%		0.49	%		0.40	%		0.40	%		0.54	%
Nonperforming loans to total loans		0.25	%		0.38	%		0.35	%		0.35	%		0.49	%
Nonperforming loans and OREO to total loans and OREO		0.48	%		0.62	%		0.51	%		0.53	%		0.72	%
Allowance for loan and credit losses to total loans		1.33	%		1.36	%		1.43	%		1.48	%		1.65	%
Allowance for loan and credit losses to nonperforming loans		533.87	%		357.89	%		407.13	%		424.29	%		335.31	%

10 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

	For the three months ended,
	March 31, 2015							December 31, 2014							March 31, 2014
				Interest		Average					Interest		Average					Interest		Average
	Average			earned		yield		Average			earned		yield		Average			earned		yield
(in thousands)	balance			or paid		or cost		balance			or paid		or cost		balance			or paid		or cost
Assets
Federal funds sold and other	$	20,652		$	12	0.23	%	$	25,096		$	31	0.48	%	$	18,021		$	24	0.53	%
Investment securities		486,460			3,527	2.90	%		491,764			3,586	2.92	%		551,263			4,258	3.09	%
Loans		2,409,171			27,597	4.58	%		2,360,469			26,965	4.47	%		2,108,563			23,562	4.47	%
Total interest-earning assets	$	2,916,283		$	31,136	4.27	%	$	2,877,329		$	30,582	4.17	%	$	2,677,847		$	27,844	4.16	%
Noninterest-earning assets		121,727							125,755							119,848
Total assets	$	3,038,010						$	3,003,084						$	2,797,695
Liabilities and Shareholders' Equity
Deposits
Money market	$	681,749		$	489	0.29	%	$	645,435		$	517	0.32	%	$	583,171		$	464	0.32	%
Interest-bearing demand		560,906			194	0.14	%		528,639			196	0.15	%		429,939			245	0.23	%
Savings		16,127			2	0.05	%		16,723			3	0.07	%		12,595			2	0.06	%
Certificates of deposit
Reciprocal		56,554			34	0.24	%		64,160			48	0.30	%		83,073			68	0.33	%
Under $100		23,739			24	0.41	%		24,536			16	0.26	%		27,589			30	0.44	%
$100 and over		120,002			151	0.51	%		124,330			172	0.55	%		136,689			178	0.53	%
Total interest-bearing deposits	$	1,459,077		$	894	0.25	%	$	1,403,823		$	952	0.27	%	$	1,273,056		$	987	0.31	%
Other borrowings
Securities sold under agreements to repurchase		54,707			10	0.07	%		58,007			16	0.11	%		104,534			63	0.24	%
Other short-term borrowings		80,680			51	0.25	%		90,215			36	0.16	%		34,776			20	0.23	%
Long term-debt		72,166			1,008	5.59	%		72,166			1,039	5.63	%		72,166			1,016	5.63	%
Total interest-bearing liabilities	$	1,666,630		$	1,963	0.47	%	$	1,624,211		$	2,043	0.50	%	$	1,484,532		$	2,086	0.57	%
Noninterest-bearing demand accounts		1,036,539							1,046,862							1,003,758
Total deposits and interest-bearing liabilities		2,703,169							2,671,073							2,488,290
Other noninterest-bearing liabilities		22,084							25,785							24,878
Total liabilities		2,725,253							2,696,858							2,513,168
Total equity		312,757							306,226							284,527
Total liabilities and equity	$	3,038,010						$	3,003,084						$	2,797,695
Net interest income - taxable equivalent				$	29,173						$	28,539						$	25,758
Net interest spread						3.80	%						3.67	%						3.59	%
Net interest margin						4.06	%						3.94	%						3.90	%
Ratio of average interest-earning assets to average interest-bearing liabilities		174.98	%						177.15	%						180.38	%

11 | Page

CoBiz Financial Inc.

March 31, 2015

(unaudited)

Reconciliation of Non-GAAP Measures to GAAP

(in thousands, except per share amounts)

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

The following tables include non-GAAP financial measures related to tangible equity, tangible common equity, tangible assets and net interest margin.  The tables below have been adjusted to exclude intangible assets, preferred stock, past due interest and prepayment penalties.

		At
		March 31,			December 31,			September 30,			June 30,			March 31,
		2015			2014			2014			2014			2014
	Shareholders' equity as reported - GAAP	$	315,629		$	308,769		$	302,730		$	296,098		$	287,520
	Intangible assets		(2,376)			(2,526)			(2,676)			(2,498)			(2,647)
A	Tangible equity - non-GAAP		313,253			306,243			300,054			293,600			284,873
	Preferred stock		(57,338)			(57,338)			(57,338)			(57,338)			(57,338)
B	Tangible common equity - non-GAAP	$	255,915		$	248,905		$	242,716		$	236,262		$	227,535
	Total assets as reported - GAAP	$	3,090,226		$	3,062,166		$	3,028,864		$	3,024,832		$	2,852,782
	Intangible assets		(2,376)			(2,526)			(2,676)			(2,498)			(2,647)
C	Total tangible assets - non-GAAP	$	3,087,850		$	3,059,640		$	3,026,188		$	3,022,334		$	2,850,135
D	Common shares outstanding		40,988			40,770			40,691			40,642			40,622
B / C	Tangible common equity to tangible assets - non-GAAP		8.29	%		8.14	%		8.02	%		7.82	%		7.98	%
A / C	Tangible equity to tangible assets - non-GAAP		10.14	%		10.01	%		9.92	%		9.71	%		10.00	%
B / D	Tangible book value per common share - non-GAAP	$	6.24		$	6.11		$	5.96		$	5.81		$	5.60

		At
		March 31,			December 31,
		2015			2014
E	Net interest income (tax equivalent) as reported - GAAP	$	29,173		$	28,539
F	Past due interest and prepayment penalties on problem loan resolutions		(1,169)			(232)
G	Core net interest income (tax equivalent) - non-GAAP	$	28,004		$	28,307
H	Total average interest-earning assets as reported	$	2,916,283		$	2,877,329
E / H	Net interest margin as reported - GAAP*		4.06	%		3.94	%
F / H	Effect of past due interest and prepayment penalties*		(0.17)	%		(0.04)	%
G / H	Core net interest margin - non-GAAP*		3.89	%		3.90	%
*	Annualized

12 | Page