CoBiz Financial Announces First Quarter 2010 Results
Reports continued improvement in the level of credit costs
DENVER, April 22 /PRNewswire-FirstCall/ -- CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.4 billion in assets, announced a net loss of $4.7 million for the first quarter of 2010, as compared to a net loss of $46.9 million for the first quarter of 2009. The net loss available to common shareholders was $0.15 per diluted common share versus a net loss of $2.07 per diluted common share in the prior year quarter (the first quarter of 2009 results included a $33.7 million, goodwill impairment charge, or $1.40 per diluted share). For the fourth quarter of 2009, the Company reported a net loss of $4.5 million, or $0.15 per diluted common share.
Financial Performance – First Quarter 2010
- The net loss available to common shareholders of $0.15 per diluted common share was a significant improvement from the net loss from core operations (excluding goodwill charges) of $0.67 per diluted common share in the first quarter of 2009 (see the accompanying reconciliation of Non-GAAP Measures to GAAP). The improvement was primarily driven by a decrease in provision for loan and credit losses (Provision).
- The first quarter marks the third consecutive decrease in quarterly Provision expense for the Company. Provision for the first quarter of 2010 decreased by $2.7 million, or 16%, from the fourth quarter of 2009 (linked-quarter) to $13.8 million from $16.5 million. The Provision for the first quarter of 2010 was 59% lower or $20.1 million less than the first quarter of 2009 Provision of $33.9 million.
- During the first quarter, the Company charged-off, net of recoveries, $17.0 million, as compared to $22.9 million in the fourth quarter of 2009.
- The allowance for loan and credit losses (Allowance) was 4.17% of total loans at March 31, 2010, and covered more than 101% of nonperforming loans (NPLs).
- Nonperforming assets decreased slightly during the first quarter to $100.0 million, or 4.13% of total assets, from $104.5 million or 4.24% of total assets at December 31, 2009.
- The net interest margin increased 16 basis points (0.16%) to 4.52% for the first quarter of 2010, from 4.36% in the fourth quarter of 2009. The net interest margin increased 14 basis points (0.14%) from 4.38% in the first quarter of 2009.
- Loans outstanding as of March 31, 2010, were $1.7 billion. Loan run-off decelerated during the quarter with a net decrease of $54.8 million from the fourth quarter of 2009. Total loans decreased by $97.3 million and $71.8 million in the fourth and third quarters of 2009, respectively. Loans were down $291.6 million, or 14.4%, from March 31, 2009. During the current quarter, new credit relationships of $37.1 million were added and $66.2 million was advanced on existing lines.
- Deposits and customer repurchase agreements (Customer Repos) decreased by $25.2 million on a linked-quarter basis. Deposits and Customer Repos excluding wholesale brokered sources (Customer Funding) decreased by $16.2 million on a linked-quarter basis. Year-over-year, Customer Funding increased by $390.2 million or 23.1%.
- Total noninterest-bearing demand accounts represented 27.5% of total deposits as of March 31, 2010, compared to 27.0% as of the prior year quarter.
"Overall, I am encouraged with our first quarter results," said Chairman and CEO Steve Bangert. "As expected, we continued to see a meaningful decrease in Provision expense, with Provision decreasing by 16% on a linked-quarter basis and 59% from the prior year. I was also pleased to see our asset quality continuing to stabilize, with nonperforming assets decreasing during the period.
"With confidence that our asset quality issues are under control, we are now increasing our efforts on building the franchise. We have several initiatives underway to grow the balance sheet and build profitable market share. Last year we announced the hiring of two new market presidents for our bank whose priority is to advance our business development efforts by implementing a consistent, bank-wide sales management program. We are also very close to introducing a jumbo mortgage product targeting professionals, owners and executives of the businesses we already serve. In addition, we are well underway with refining our wealth management offering – introducing broader investment choices and a more comprehensive financial planning approach.
"Although we benefited from lower credit costs in the first quarter, we did not see a pick-up in our earnings from the fourth quarter due to the expenses associated with these initiatives to grow the franchise. However, I am convinced that these are the right actions to position our company for a strong recovery along with the economy."
Loans
Total loans at March 31, 2010, were $1.73 billion, a decline of $54.8 million or 3.1% on a linked-quarter basis. We continue to diligently pursue new credit relationships at a time when the number of quality borrowers remains low and competition among banks to earn the business is high. Overall, the Company has seen a deceleration in net loan run-off over the last quarter. New credit relationships of $37.1 million were added during the quarter, a decline from the fourth quarter of 2009 when $63.9 million in new credit was extended. Advances on existing lines totaled $66.2 million during the current quarter, less than the $90.9 million drawn in the prior quarter. Reduced loan demand was offset in part by lower paydowns and maturities which slowed by $94.0 million on a linked-quarter basis to $158.1 million, the lowest level of paydown activity in the last five quarters.
Overall, Commercial and Industrial (C&I) loans comprised $566.3 million, or 32.8% of the total portfolio at March 31, 2010, compared to $559.6 million or 31.4% at December 31, 2009, and $630.6 million or 31.2% a year earlier. Commercial real estate accounted for 48.2% of total loans, with owner/occupied properties comprising a significant portion of this category. Our Land Acquisition and Development (A&D) loans totaled $122.7 million or 7.1% of the overall portfolio at March 31, 2010, compared to $152.7 million, or 8.6% at December 31, 2009 and $221.9 million, or 10.9%, at December 31, 2008. Over the past year management has focused on reducing the A&D portfolio by proactively working with its customers, taking aggressive steps in provisioning for and charging-off problem credits. As a result, the A&D portfolio was reduced by $107.1 million since March 31, 2009. Construction loans account for $116.7 million or 6.8% of the portfolio at March 31, 2010, compared to $144.5 million or 8.1% at December 31, 2009, and $171.2 million or 8.5% a year earlier.
Investment Securities
The Company had investment securities with a carrying value of $530.4 million at March 31, 2010, relatively unchanged from $529.5 million at December 31, 2009. The portfolio consists primarily of mortgage-backed securities (MBS), the overwhelming majority of which are backed by U.S. government agencies. These securities had an amortized cost of $361.6 million and a market value of $374.4 million at quarter end. The remaining MBS are non-agency, private-label securities with a net book value of $5.0 million and a market value of $2.4 million. At March 31, 2010, the Company had agency debentures with a book value of $72.1 million, an increase of $15.4 million compared to the prior linked-quarter. Investments also include $38.5 million of single-issuer trust preferred securities backed by 16 different financial institutions and $38.7 million of corporate debt securities issued primarily by six S&P 500 companies. All trust preferred securities in the Company's portfolio continue to pay dividends and were not deemed impaired at March 31, 2010. The fair value of the trust preferred and corporate debt securities was $79.4 million at March 31, 2010. The portfolio does not contain any collateralized debt obligations (CDOs) or securities backed by sub-prime mortgage loans.
The Company recognized a $0.2 million Other Than Temporary Impairment (OTTI) valuation loss during the first quarter of 2010. The valuation loss related to one private label MBS, which was previously deemed to have an OTTI.
Deposits and Customer Repo Balances
Deposit and Customer Repo balances ended the period at $2.1 billion, an increase of $277.8 million or 15.4% from the same period in 2009. On a linked-quarter basis, Deposit and Customer Repo balances decreased slightly by $25.2 million, or 1.2%. Customer Funding decreased by $16.2 million on a linked-quarter basis and grew by $390.2 million since the year earlier period, or 23.1%. The strong growth in core deposits is the result of a consistent, focused marketing effort by our business development officers, as well as our current customers maintaining more liquidity on their balance sheets. While loan growth continues to be a challenge, the bank is gaining market share by attracting and building depository relationships.
Total noninterest-bearing demand accounts represented 27.5% of total deposits as of March 31, 2010, and have been at or above 27.0% since the fourth quarter of 2008.
Weakened loan demand coupled with strong deposit generation has resulted in an improved liquidity position. As of March 31, 2010, total loans to Customer Funding was 83.0% compared to 119.4% at the year earlier period.
Allowance for Loan and Credit Losses and Credit Quality
Nonperforming assets (NPAs) decreased by $4.5 million during the quarter to $100.0 million at March 31, 2010. Total nonperforming loans decreased to $71.1 million as of March 31, 2010, from $79.2 million at December 31, 2009. NPLs to total loans decreased to 4.11% at the end of the current quarter, from 4.44% as of the end of the previous quarter. Other real estate owned acquired through foreclosure, and other foreclosed assets (OREO) increased $3.6 million to $29.0 million at quarter end.
Approximately 58.2% of NPAs are within the Colorado portfolio and 41.8% in Arizona. Construction and A&D loans continue to exhibit the greatest weakness with 8.2% and 20.4%, respectively, of total loans in their category on nonperforming status. There was improvement in the A&D portfolio as nonperforming loans dropped by $9.0 million on a linked-quarter basis from $34.0 million and nonperformers as a percent of the loan category fell by 1.9% (191 basis points) from 22.3%. Nonperforming C&I loans increased to $19.1 million or 3.4% of the category total from $13.2 million or 2.4% at December 31, 2009. Nonperforming Real Estate loans remain a manageable 2.0%, down from 2.3% of the category at the prior quarter end. Of the $29.0 million of OREO, $15.8 million, or 54.5%, was located in Colorado and $13.2 million, or 45.5%, was located in Arizona.
Provision for loan and credit loss for the quarter totaled $13.8 million, a decline of $20.1 million or 59.2% less than in the year-earlier period and $2.7 million, or 16.4%, less than the prior quarter. The Company charged-off (net of recoveries) $17.0 million in the first quarter of 2010 compared to $22.9 million prior quarter and $13.2 million during the year-earlier period. The Allowance decreased $3.2 million to $72.1 million at March 31, 2010, from $75.3 million at December 31, 2009. The Company's Allowance to total loans held for investment contracted slightly to 4.17% from 4.23% as of December 31, 2009. The Allowance was in excess of 101% of NPLs at March 31, 2010.
Shareholders' Equity and Regulatory Capital
As of March 31, 2010, total Shareholders' Equity was $224.5 million. The Company's total tangible shareholders' equity was $219.7 million. The tangible shareholders' equity to tangible assets ratio was 9.1% and the tangible common equity ratio was 6.5% at the end of the first quarter of 2010 (see the accompanying Reconciliation of Non-GAAP Measures to GAAP).
During the first quarter, the Company filed a universal shelf registration statement on Form S−3 with the Securities and Exchange Commission to register up to $100 million in securities. The Securities and Exchange Commission declared the registration statement effective on April 12, 2010. While the Company has no immediate plans to raise capital under the shelf registration statement, it provides the Company with the financial flexibility to do so at the appropriate time.
Net Interest Income and Margin
Net interest income on a tax equivalent basis for the first quarter of 2010 decreased by $1.8 million, or 6.9%, to $24.9 million from the same period in 2009. Net interest income on a tax equivalent basis for the fourth quarter of 2009 was $25.2 million. The first quarter 2010 net interest margin (NIM) of 4.52% expanded by 14 basis points and 16 basis points as compared to the first and fourth quarters of 2009, respectively.
Average earning assets decreased by $54.5 million on a linked-quarter basis as a result of a $73.3 million decrease in average net loans. Average investment securities increased $29.7 million on linked-quarter basis. Average customer funding decreased by $23.6 million on a linked-quarter basis but increased $337.4 million over the comparable quarter in 2009. Yields on average earning assets increased nominally by 5 basis points on a linked quarter basis and decreased 15 basis points from the first quarter of 2009. Rates paid on average interest-bearing liabilities decreased by 15 basis points on a linked-quarter basis and decreased by 18 basis points from the first quarter of 2009.
Noninterest Income
Noninterest income increased by $0.4 million on a linked-quarter basis to $6.9 million for the first quarter of 2010. Noninterest income was $6.1 million in the first quarter of 2009. As a percentage of total operating revenue, noninterest income increased to 21.8% for the first quarter of 2010 from 20.6% for the fourth quarter of 2009. Noninterest income as a percentage of total operating revenues was 18.7% for the first quarter of 2009.
The noninterest income linked-quarter increase of $0.4 million in the first quarter is attributable primarily to an increase of $0.6 million in insurance income and an increase of $0.1 million in investment banking income offset by a decrease of $0.4 million in other income. The increase in insurance income was primarily attributable to an increase in property and casualty income of $0.4 million and a $0.6 million increase in contingency income, offset by a decline of $0.4 million in insurance commissions on the placement of life insurance policies in wealth transfer cases. The decrease in other income is primarily attributable to a decline of $0.2 million in fees on the sale of customer swaps.
Operating Expenses
Noninterest expenses for the first quarter of 2010 increased to $26.3 million from $23.8 million for the fourth quarter of 2009. Noninterest expenses during the first quarter of 2009, including a $33.7 million noncash goodwill impairment charge, were $57.3 million.
Salaries and employee benefit expenses increased by $1.9 million on a linked-quarter basis to $14.9 million. Salaries and employee benefits during the first quarter of 2009 were $13.8 million. The linked-quarter increase in salaries and employee benefit expense is primarily attributable to increases in bonus expense and payroll taxes. Bonus expense varies based on the management's expectations of year-end payments. Bonus expense for the fourth quarter of 2009 was minimal due to the low level of bonus payments awarded in 2009. Payroll taxes increase in the first quarter of each year when tax limits reset. The increase in salaries and employee benefits over the comparable period in 2009 is primarily attributable to the Company's successful efforts in attracting a number of talented employees during the latter half of 2009 and management's expectations that the Company's financial performance will continue to improve during 2010. Overall, the Company's full-time equivalent employees increased to 545 at the end of the first quarter of 2010 from 537 a year earlier.
Other operating expenses increased by $0.6 million on a linked-quarter basis. Year-over-year, other operating expenses increased by $1.3 million. Contributing to the linked-quarter change were increases to legal expenses of $0.3 million and FDIC assessments of $0.3 million. Contributing to the year-over-year change were increases to FDIC assessments of $0.5 million and loan work out and OREO holding costs of $0.6 million.
The Company's efficiency ratio for the first quarter of 2010 was 77.75%, compared to 70.34% for the fourth quarter of 2009 and 67.09% for the first quarter of 2009. This increased trend is the result of higher loan workout costs and significant increases in FDIC insurance premiums, as well as the cost of recent hires and variable incentive expense.
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, April 23, 2010, at 9:00 am MDT with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=68080 or by telephone at 877.493.9121 (conference ID # 68685222).
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.
About CoBiz Financial
CoBiz Financial Inc. (www.cobizfinancial.com) is a $2.4 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, risk management consulting and employee benefits brokerage and 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 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. |
|||||||
March 31, 2010 |
|||||||
(unaudited) |
|||||||
Three months ended March 31, |
|||||||
(in thousands, except per share amounts) |
2010 |
2009 |
|||||
INCOME STATEMENT DATA |
|||||||
Interest income |
$ 29,919 |
$ 33,534 |
|||||
Interest expense |
5,166 |
6,955 |
|||||
NET INTEREST INCOME BEFORE PROVISION |
24,753 |
26,579 |
|||||
Provision for loan losses |
13,820 |
33,747 |
|||||
NET INTEREST INCOME (LOSS) AFTER PROVISION |
10,933 |
(7,168) |
|||||
Noninterest income |
6,885 |
6,121 |
|||||
Noninterest expense |
26,273 |
23,631 |
|||||
Impairment of goodwill |
- |
33,697 |
|||||
LOSS BEFORE INCOME TAXES |
(8,455) |
(58,375) |
|||||
Benefit for income taxes |
(3,436) |
(10,928) |
|||||
NET LOSS |
(5,019) |
(47,447) |
|||||
Net loss attributable to noncontrolling interest |
322 |
498 |
|||||
NET LOSS AFTER NONCONTROLLING INTEREST |
$ (4,697) |
$ (46,949) |
|||||
Preferred stock dividends |
(938) |
(930) |
|||||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ (5,635) |
$ (47,879) |
|||||
EARNINGS (LOSS) PER COMMON SHARE |
|||||||
BASIC |
$ (0.15) |
$ (2.07) |
|||||
DILUTED |
$ (0.15) |
$ (2.07) |
|||||
WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) |
|||||||
BASIC |
36,476 |
23,174 |
|||||
DILUTED |
36,476 |
23,174 |
|||||
EQUITY MEASURES |
|||||||
Common Shares Outstanding at Period End (in thousands) |
36,760 |
23,421 |
|||||
Book Value Per Common Share |
$ 4.42 |
$ 6.04 |
|||||
Tangible Book Value Per Common Share * |
$ 4.29 |
$ 5.28 |
|||||
Tangible Common Equity to Tangible Assets * |
6.53% |
4.75% |
|||||
Tangible Equity to Tangible Assets * |
9.09% |
7.11% |
|||||
* See accompanying Non-GAAP reconciliation. |
|||||||
PERIOD END BALANCES |
|||||||
Total Assets |
$ 2,421,040 |
$ 2,623,923 |
|||||
Loans |
1,727,874 |
2,016,350 |
|||||
Loans Held For Sale |
- |
3,100 |
|||||
Goodwill and Intangible Assets |
4,749 |
17,878 |
|||||
Deposits |
1,940,520 |
1,676,482 |
|||||
Subordinated Debentures |
93,150 |
93,150 |
|||||
Common Shareholders' Equity |
162,466 |
141,555 |
|||||
Total Shareholders' Equity |
224,471 |
203,049 |
|||||
Interest-Earning Assets |
2,224,511 |
2,441,130 |
|||||
Interest-Bearing Liabilities |
1,646,056 |
1,945,511 |
|||||
BALANCE SHEET AVERAGES |
|||||||
Average Assets |
$ 2,431,019 |
$ 2,658,588 |
|||||
Average Loans |
1,754,384 |
2,025,349 |
|||||
Average Deposits |
1,934,222 |
1,630,537 |
|||||
Average Subordinated Debentures |
93,150 |
93,150 |
|||||
Average Shareholders' Equity |
230,745 |
253,652 |
|||||
Average Interest-Earning Assets |
2,234,775 |
2,475,708 |
|||||
Average Interest-Bearing Liabilities |
1,651,471 |
1,947,119 |
|||||
CoBiz Financial Inc. |
|||||||
March 31, 2010 |
|||||||
(unaudited) |
|||||||
Three months ended March 31, |
|||||||
(in thousands) |
2010 |
2009 |
|||||
PROFITABILITY MEASURES |
|||||||
Net Interest Margin |
4.52% |
4.38% |
|||||
Efficiency Ratio |
77.75% |
67.09% |
|||||
Return on Average Assets |
(0.78)% |
(7.08)% |
|||||
Return on Average Shareholders' Equity |
(8.26)% |
(74.24)% |
|||||
Noninterest Income as a Percentage of Operating Revenues |
21.76% |
18.72% |
|||||
CREDIT QUALITY |
|||||||
Nonperforming Loans |
|||||||
Loans 90 days or more past due and accruing interest |
$ 2,054 |
$ 522 |
|||||
Nonaccrual loans |
69,003 |
43,121 |
|||||
Total nonperforming loans |
71,057 |
43,643 |
|||||
OREO & Repossessed Assets |
28,951 |
8,879 |
|||||
Total nonperforming assets |
$ 100,008 |
$ 52,522 |
|||||
Charge-offs |
$ (18,242) |
$ (13,242) |
|||||
Recoveries |
1,209 |
5 |
|||||
Net Charge-offs |
$ (17,033) |
$ (13,237) |
|||||
ASSET QUALITY MEASURES |
|||||||
Nonperforming Assets to Total Assets |
4.13% |
2.00% |
|||||
Nonperforming Loans to Total Loans |
4.11% |
2.16% |
|||||
Nonperforming Loans and OREO to Total Loans and OREO |
5.69% |
2.59% |
|||||
Allowance for Loan and Credit Losses to Total Loans (excluding loans held for sale) |
4.17% |
3.16% |
|||||
Allowance for Loan and Credit Losses to Nonperforming Loans |
101.41% |
146.12% |
|||||
NONPERFORMING ASSETS BY MARKET |
Colorado |
Arizona |
|||||
Commercial |
$ 14,701 |
$ 4,434 |
|||||
Real Estate - mortgage |
6,509 |
9,950 |
|||||
Land Acquisition & Development |
14,122 |
10,872 |
|||||
Real Estate - construction |
6,600 |
2,931 |
|||||
Consumer |
542 |
246 |
|||||
Other Loans |
- |
150 |
|||||
Other Real Estate Owned |
15,766 |
13,185 |
|||||
NPAs |
$ 58,240 |
$ 41,768 |
|||||
Total Loans |
$ 1,128,208 |
$ 599,666 |
|||||
Total Loans and OREO |
1,143,974 |
612,851 |
|||||
Nonperforming Loans to Total Loans |
3.76% |
4.77% |
|||||
Nonperforming Loans and OREO to Total Loans and OREO |
5.09% |
6.82% |
|||||
CoBiz Financial Inc. |
||||||||||||||
March 31, 2010 |
||||||||||||||
(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 March 31, 2010 |
$ 25,471 |
$ 1 |
$ (9) |
$ (3) |
$ (707) |
$ 24,753 |
||||||||
Quarter ended December 31, 2009 |
25,670 |
1 |
(7) |
(3) |
(669) |
24,992 |
||||||||
Annualized quarterly growth |
(3.1)% |
.0% |
(115.9)% |
.0% |
(23.0)% |
(3.9)% |
||||||||
Quarter ended March 31, 2009 |
$ 27,809 |
$ 3 |
$ - |
$ (2) |
$ (1,231) |
$ 26,579 |
||||||||
Annual growth |
(8.4)% |
(66.7)% |
(100.0)% |
(50.0)% |
42.6% |
(6.9)% |
||||||||
Noninterest income |
||||||||||||||
Quarter ended March 31, 2010 |
$ 2,396 |
$ 301 |
$ 1,369 |
$ 3,173 |
$ (354) |
$ 6,885 |
||||||||
Quarter ended December 31, 2009 |
2,542 |
175 |
1,362 |
2,580 |
(167) |
6,492 |
||||||||
Annualized quarterly growth |
(23.3)% |
292.0% |
2.1% |
93.2% |
(454.1)% |
24.6% |
||||||||
Quarter ended March 31, 2009 |
$ 1,929 |
$ 104 |
$ 1,224 |
$ 3,384 |
$ (520) |
$ 6,121 |
||||||||
Annual growth |
24.2% |
189.4% |
11.8% |
(6.2)% |
31.9% |
12.5% |
||||||||
Net loss |
||||||||||||||
Quarter ended March 31, 2010 |
$ (852) |
$ (444) |
$ (158) |
$ (180) |
$ (3,063) |
$ (4,697) |
||||||||
Quarter ended December 31, 2009 |
(1,512) |
(479) |
(200) |
(213) |
(2,134) |
(4,538) |
||||||||
Annualized quarterly growth |
177.0% |
29.6% |
85.2% |
62.8% |
(176.6)% |
(14.2)% |
||||||||
Quarter ended March 31, 2009 |
$ (27,791) |
$ (1,322) |
$ (3,470) |
$ (13,220) |
$ (1,146) |
$ (46,949) |
||||||||
Annual growth |
96.9% |
66.4% |
95.4% |
98.6% |
(167.3)% |
90.0% |
||||||||
Earnings per share (diluted) |
||||||||||||||
Quarter ended March 31, 2010 |
$ (0.02) |
$ (0.01) |
$ - |
$ - |
$ (0.12) |
$ (0.15) |
||||||||
Quarter ended December 31, 2009 |
(0.04) |
(0.01) |
(0.01) |
(0.01) |
(0.08) |
(0.15) |
||||||||
Annualized quarterly growth |
202.8% |
.0% |
405.6% |
405.6% |
(202.8)% |
.0% |
||||||||
Quarter ended March 31, 2009 |
$ (1.20) |
$ (0.06) |
$ (0.15) |
$ (0.57) |
$ (0.09) |
$ (2.07) |
||||||||
Annual growth |
98.3% |
83.3% |
100.0% |
100.0% |
(33.3)% |
92.8% |
||||||||
Total loans |
||||||||||||||
At March 31, 2010 |
$ 1,727,874 |
|||||||||||||
At December 31, 2009 |
1,782,686 |
|||||||||||||
Annualized quarterly growth |
(12.5)% |
|||||||||||||
At March 31, 2009 |
$ 2,019,450 |
|||||||||||||
Annual growth |
(14.4)% |
|||||||||||||
Total deposits and customer repurchase agreements |
||||||||||||||
At March 31, 2010 |
$ 2,083,464 |
|||||||||||||
At December 31, 2009 |
2,108,627 |
|||||||||||||
Annualized quarterly growth |
(4.8)% |
|||||||||||||
At March 31, 2009 |
$ 1,805,677 |
|||||||||||||
Annual growth |
15.4% |
|||||||||||||
CoBiz Financial Inc. |
|||||||||||
March 31, 2010 |
|||||||||||
(unaudited) |
|||||||||||
Three months ended |
|||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||
(in thousands) |
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
COMMERCIAL BANKING |
|||||||||||
Income Statement |
|||||||||||
Total interest income |
$ 29,556 |
$ 30,685 |
$ 31,901 |
$ 32,820 |
$ 33,508 |
||||||
Total interest expense |
4,085 |
5,015 |
5,497 |
5,490 |
5,699 |
||||||
Net interest income |
25,471 |
25,670 |
26,404 |
27,330 |
27,809 |
||||||
Provision for loan losses |
11,361 |
14,593 |
19,838 |
35,249 |
33,747 |
||||||
Net interest income (loss) after provision |
14,110 |
11,077 |
6,566 |
(7,919) |
(5,938) |
||||||
Noninterest income |
2,396 |
2,542 |
2,311 |
2,773 |
1,929 |
||||||
Noninterest expense |
8,779 |
7,837 |
8,231 |
10,323 |
8,142 |
||||||
Impairment of goodwill |
- |
- |
- |
- |
15,348 |
||||||
Income (loss) before income taxes |
7,727 |
5,782 |
646 |
(15,469) |
(27,499) |
||||||
Provision (benefit) for income taxes |
2,503 |
1,513 |
14 |
(4,768) |
(4,813) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ 5,224 |
$ 4,269 |
$ 632 |
$ (10,701) |
$ (22,686) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
6,076 |
5,781 |
5,219 |
3,107 |
5,105 |
||||||
Net income (loss) |
$ (852) |
$ (1,512) |
$ (4,587) |
$ (13,808) |
$ (27,791) |
||||||
INVESTMENT BANKING |
|||||||||||
Income Statement |
|||||||||||
Total interest income |
$ 1 |
$ 1 |
$ 2 |
$ 1 |
$ 3 |
||||||
Total interest expense |
- |
- |
- |
- |
- |
||||||
Net interest income |
1 |
1 |
2 |
1 |
3 |
||||||
Provision for loan losses |
- |
- |
- |
- |
- |
||||||
Net interest income (loss) after provision |
1 |
1 |
2 |
1 |
3 |
||||||
Noninterest income |
301 |
175 |
476 |
399 |
104 |
||||||
Noninterest expense |
976 |
999 |
1,154 |
955 |
916 |
||||||
Impairment of goodwill |
- |
- |
3,049 |
- |
2,230 |
||||||
Income (loss) before income taxes |
(674) |
(823) |
(3,725) |
(555) |
(3,039) |
||||||
Provision (benefit) for income taxes |
(271) |
(377) |
(1,347) |
(209) |
(1,755) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ (403) |
$ (446) |
$ (2,378) |
$ (346) |
$ (1,284) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
41 |
33 |
30 |
30 |
38 |
||||||
Net income (loss) |
$ (444) |
$ (479) |
$ (2,408) |
$ (376) |
$ (1,322) |
||||||
INVESTMENT ADVISORY AND TRUST |
|||||||||||
Income Statement |
|||||||||||
Total interest income |
$ - |
$ - |
$ - |
$ - |
$ - |
||||||
Total interest expense |
9 |
7 |
6 |
3 |
- |
||||||
Net interest income |
(9) |
(7) |
(6) |
(3) |
- |
||||||
Provision for loan losses |
- |
- |
- |
- |
- |
||||||
Net interest income (loss) after provision |
(9) |
(7) |
(6) |
(3) |
- |
||||||
Noninterest income |
1,369 |
1,362 |
1,292 |
1,308 |
1,224 |
||||||
Noninterest expense |
1,398 |
1,563 |
1,336 |
1,698 |
1,655 |
||||||
Impairment of goodwill |
- |
- |
3,437 |
- |
3,081 |
||||||
Income (loss) before income taxes |
(38) |
(208) |
(3,487) |
(393) |
(3,512) |
||||||
Provision (benefit) for income taxes |
(15) |
(107) |
(794) |
(152) |
(153) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ (23) |
$ (101) |
$ (2,693) |
$ (241) |
$ (3,359) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
135 |
99 |
87 |
84 |
111 |
||||||
Net income (loss) |
$ (158) |
$ (200) |
$ (2,780) |
$ (325) |
$ (3,470) |
||||||
CoBiz Financial Inc. |
|||||||||||
March 31, 2010 |
|||||||||||
(unaudited) |
|||||||||||
Three months ended |
|||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||
(in thousands) |
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Total interest income |
$ - |
$ - |
$ - |
$ - |
$ - |
||||||
Total interest expense |
3 |
3 |
4 |
4 |
2 |
||||||
Net interest income |
(3) |
(3) |
(4) |
(4) |
(2) |
||||||
Provision for loan losses |
- |
- |
- |
- |
- |
||||||
Net interest income (loss) after provision |
(3) |
(3) |
(4) |
(4) |
(2) |
||||||
Noninterest income |
3,173 |
2,580 |
3,019 |
2,795 |
3,384 |
||||||
Noninterest expense |
3,255 |
2,748 |
2,961 |
2,966 |
3,474 |
||||||
Impairment of goodwill |
- |
- |
5,977 |
- |
13,038 |
||||||
Income (loss) before income taxes |
(85) |
(171) |
(5,923) |
(175) |
(13,130) |
||||||
Provision (benefit) for income taxes |
(26) |
(58) |
(1,548) |
(63) |
(24) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ (59) |
$ (113) |
$ (4,375) |
$ (112) |
$ (13,106) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
121 |
100 |
90 |
90 |
114 |
||||||
Net income (loss) |
$ (180) |
$ (213) |
$ (4,465) |
$ (202) |
$ (13,220) |
||||||
CORPORATE SUPPORT AND OTHER |
|||||||||||
Income Statement |
|||||||||||
Total interest income |
$ 362 |
$ 287 |
$ 199 |
$ 20 |
$ 23 |
||||||
Total interest expense |
1,069 |
956 |
1,008 |
1,118 |
1,254 |
||||||
Net interest income |
(707) |
(669) |
(809) |
(1,098) |
(1,231) |
||||||
Provision for loan losses |
2,459 |
1,964 |
424 |
- |
- |
||||||
Net interest income (loss) after provision |
(3,166) |
(2,633) |
(1,233) |
(1,098) |
(1,231) |
||||||
Noninterest income |
(354) |
(167) |
(119) |
760 |
(520) |
||||||
Noninterest expense |
11,865 |
10,696 |
9,821 |
8,331 |
9,444 |
||||||
Income (loss) before income taxes |
(15,385) |
(13,496) |
(11,173) |
(8,669) |
(11,195) |
||||||
Provision (benefit) for income taxes |
(5,627) |
(5,243) |
(4,244) |
(4,548) |
(4,183) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ (9,758) |
$ (8,253) |
$ (6,929) |
$ (4,121) |
$ (7,012) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
(6,373) |
(6,013) |
(5,426) |
(3,311) |
(5,368) |
||||||
Net income (loss) |
$ (3,385) |
$ (2,240) |
$ (1,503) |
$ (810) |
$ (1,644) |
||||||
Net (income) loss attributable to noncontrolling interest |
322 |
106 |
- |
(290) |
498 |
||||||
Net income (loss) after noncontrolling interest |
$ (3,063) |
$ (2,134) |
$ (1,503) |
$ (1,100) |
$ (1,146) |
||||||
CONSOLIDATED |
|||||||||||
Income Statement |
|||||||||||
Total interest income |
$ 29,919 |
$ 30,973 |
$ 32,102 |
$ 32,841 |
$ 33,534 |
||||||
Total interest expense |
5,166 |
5,981 |
6,515 |
6,615 |
6,955 |
||||||
Net interest income |
24,753 |
24,992 |
25,587 |
26,226 |
26,579 |
||||||
Provision for loan losses |
13,820 |
16,557 |
20,262 |
35,249 |
33,747 |
||||||
Net interest income (loss) after provision |
10,933 |
8,435 |
5,325 |
(9,023) |
(7,168) |
||||||
Noninterest income |
6,885 |
6,492 |
6,979 |
8,035 |
6,121 |
||||||
Noninterest expense |
26,273 |
23,843 |
23,503 |
24,273 |
23,631 |
||||||
Impairment of goodwill |
- |
- |
12,463 |
- |
33,697 |
||||||
Income (loss) before income taxes |
(8,455) |
(8,916) |
(23,662) |
(25,261) |
(58,375) |
||||||
Provision (benefit) for income taxes |
(3,436) |
(4,272) |
(7,919) |
(9,740) |
(10,928) |
||||||
Net income (loss) before management |
|||||||||||
fees and overhead allocations |
$ (5,019) |
$ (4,644) |
$ (15,743) |
$ (15,521) |
$ (47,447) |
||||||
Management fees and overhead |
|||||||||||
allocations, net of tax |
- |
- |
- |
- |
- |
||||||
Net income (loss) |
$ (5,019) |
$ (4,644) |
$ (15,743) |
$ (15,521) |
$ (47,447) |
||||||
Net (income) loss attributable to noncontrolling interest |
322 |
106 |
- |
(290) |
498 |
||||||
Net income (loss) after noncontrolling interest |
$ (4,697) |
$ (4,538) |
$ (15,743) |
$ (15,811) |
$ (46,949) |
||||||
CoBiz Financial Inc. |
|||||||||||||
March 31, 2010 |
|||||||||||||
(unaudited) |
|||||||||||||
Three months ended |
|||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||||
(in thousands, except per share amounts) |
2010 |
2009 |
2009 |
2009 |
2009 |
||||||||
Interest income |
$ 29,919 |
$ 30,973 |
$ 32,102 |
$ 32,841 |
$ 33,534 |
||||||||
Interest expense |
5,166 |
5,981 |
6,515 |
6,615 |
6,955 |
||||||||
Net interest income before provision |
24,753 |
24,992 |
25,587 |
26,226 |
26,579 |
||||||||
Provision for loan losses |
13,820 |
16,557 |
20,262 |
35,249 |
33,747 |
||||||||
Net interest income (loss) after provision |
10,933 |
8,435 |
5,325 |
(9,023) |
(7,168) |
||||||||
Noninterest income: |
|||||||||||||
Deposit service charges |
$ 1,258 |
$ 1,212 |
$ 1,282 |
$ 1,248 |
$ 1,177 |
||||||||
Investment advisory and trust income |
1,369 |
1,362 |
1,292 |
1,308 |
1,224 |
||||||||
Insurance income |
3,173 |
2,580 |
3,019 |
2,795 |
3,384 |
||||||||
Investment banking income |
301 |
175 |
476 |
399 |
104 |
||||||||
Other income |
784 |
1,163 |
910 |
2,285 |
232 |
||||||||
Total noninterest income |
6,885 |
6,492 |
6,979 |
8,035 |
6,121 |
||||||||
Noninterest expense: |
|||||||||||||
Salaries and employee benefits |
$ 14,947 |
$ 13,049 |
$ 13,350 |
$ 13,081 |
$ 13,836 |
||||||||
Stock-based compensation expense |
419 |
410 |
313 |
411 |
409 |
||||||||
Occupancy expenses, premises and equipment |
3,434 |
3,333 |
3,320 |
3,288 |
3,274 |
||||||||
Amortization of intangibles |
161 |
167 |
169 |
169 |
169 |
||||||||
Other operating expenses |
5,889 |
5,261 |
5,426 |
5,632 |
4,584 |
||||||||
Impairment of goodwill |
- |
- |
12,463 |
- |
33,697 |
||||||||
Net loss on securities, other assets and OREO |
1,423 |
1,623 |
925 |
1,692 |
1,359 |
||||||||
Total noninterest expense |
26,273 |
23,843 |
35,966 |
24,273 |
57,328 |
||||||||
Net Loss before income taxes |
(8,455) |
(8,916) |
(23,662) |
(25,261) |
(58,375) |
||||||||
Benefit for income taxes |
(3,436) |
(4,272) |
(7,919) |
(9,740) |
(10,928) |
||||||||
Net loss |
(5,019) |
(4,644) |
(15,743) |
(15,521) |
(47,447) |
||||||||
Net (income) loss attributable to noncontrolling interest |
322 |
106 |
- |
(290) |
498 |
||||||||
Net loss after noncontrolling interest |
$ (4,697) |
$ (4,538) |
$ (15,743) |
$ (15,811) |
$ (46,949) |
||||||||
Preferred stock dividends |
(938) |
(936) |
(935) |
(932) |
(930) |
||||||||
Net loss available to common shareholders |
$ (5,635) |
$ (5,474) |
$ (16,678) |
$ (16,743) |
$ (47,879) |
||||||||
Earnings (loss) per common share |
|||||||||||||
Basic |
$ (0.15) |
$ (0.15) |
$ (0.50) |
$ (0.72) |
$ (2.07) |
||||||||
Diluted |
$ (0.15) |
$ (0.15) |
$ (0.50) |
$ (0.72) |
$ (2.07) |
||||||||
Weighted average shares outstanding (in thousands) |
|||||||||||||
Basic |
36,476 |
36,440 |
33,581 |
23,194 |
23,174 |
||||||||
Diluted |
36,476 |
36,440 |
33,581 |
23,194 |
23,174 |
||||||||
PROFITABILITY MEASURES |
|||||||||||||
Net Interest Margin |
4.52% |
4.36% |
4.40% |
4.38% |
4.38% |
||||||||
Efficiency Ratio |
77.75% |
70.34% |
69.33% |
66.47% |
67.09% |
||||||||
Return on Average Assets |
(0.78)% |
(0.73)% |
(2.48)% |
(2.46)% |
(7.08)% |
||||||||
Return on Average Shareholders' Equity |
(8.26)% |
(7.67)% |
(25.11)% |
(30.77)% |
(74.24)% |
||||||||
Noninterest Income as a Percentage of Operating Revenues |
21.76% |
20.62% |
21.43% |
23.45% |
18.72% |
||||||||
CoBiz Financial Inc. |
|||||||||||||
March 31, 2010 |
|||||||||||||
(unaudited) |
|||||||||||||
At |
|||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||||
(in thousands, except per share amounts) |
2010 |
2009 |
2009 |
2009 |
2009 |
||||||||
PERIOD END BALANCES |
|||||||||||||
Total Assets |
$ 2,421,040 |
$ 2,466,015 |
$ 2,537,665 |
$ 2,540,833 |
$ 2,623,923 |
||||||||
Loans |
1,727,874 |
1,780,866 |
1,878,125 |
1,949,590 |
2,016,350 |
||||||||
Loans Held for Sale |
- |
1,820 |
1,844 |
2,185 |
3,100 |
||||||||
Goodwill and Intangible Assets |
4,749 |
4,910 |
5,078 |
17,708 |
17,878 |
||||||||
Deposits |
1,940,520 |
1,968,833 |
1,933,418 |
1,758,635 |
1,676,482 |
||||||||
Subordinated Debentures |
93,150 |
93,150 |
93,150 |
93,150 |
93,150 |
||||||||
Common Shareholders' Equity |
162,466 |
168,579 |
172,338 |
131,518 |
141,555 |
||||||||
Total Shareholders' Equity |
224,471 |
230,451 |
234,080 |
193,132 |
203,049 |
||||||||
Interest-Earning Assets |
2,224,511 |
2,270,381 |
2,355,281 |
2,344,099 |
2,441,130 |
||||||||
Interest-Bearing Liabilities |
1,646,056 |
1,659,248 |
1,728,059 |
1,848,425 |
1,945,511 |
||||||||
LOANS |
|||||||||||||
Commercial |
$ 566,321 |
$ 559,612 |
$ 579,524 |
$ 603,278 |
$ 630,567 |
||||||||
Real estate - mortgage |
832,918 |
832,123 |
859,329 |
892,488 |
890,037 |
||||||||
Land Acquisition & Development |
122,657 |
152,667 |
178,949 |
183,388 |
229,777 |
||||||||
Real estate - construction |
116,725 |
144,455 |
165,923 |
171,747 |
171,158 |
||||||||
Consumer |
72,198 |
76,103 |
82,021 |
85,385 |
83,157 |
||||||||
Other |
17,055 |
15,906 |
12,379 |
13,304 |
11,654 |
||||||||
Gross loans |
1,727,874 |
1,780,866 |
1,878,125 |
1,949,590 |
2,016,350 |
||||||||
Less allowance for loan losses |
(71,903) |
(75,116) |
(81,499) |
(75,256) |
(63,361) |
||||||||
Net loans held for investment |
1,655,971 |
1,705,750 |
1,796,626 |
1,874,334 |
1,952,989 |
||||||||
Loans held for sale |
- |
1,820 |
1,844 |
2,185 |
3,100 |
||||||||
Total net loans |
$ 1,655,971 |
$ 1,707,570 |
$ 1,798,470 |
$ 1,876,519 |
$ 1,956,089 |
||||||||
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS |
|||||||||||||
NOW and money market |
$ 720,202 |
$ 708,445 |
$ 583,877 |
$ 524,622 |
$ 520,605 |
||||||||
Savings |
10,780 |
10,552 |
9,952 |
9,432 |
9,560 |
||||||||
Eurodollar |
102,029 |
107,500 |
113,936 |
103,303 |
100,249 |
||||||||
Certificates of deposits under $100,000 |
49,779 |
52,430 |
53,942 |
56,657 |
59,835 |
||||||||
Certificates of deposits $100,000 and over |
336,443 |
358,424 |
420,962 |
405,888 |
311,348 |
||||||||
Reciprocal CDARS |
186,900 |
178,382 |
191,211 |
117,408 |
108,961 |
||||||||
Brokered deposits |
1,397 |
10,332 |
35,367 |
65,972 |
113,800 |
||||||||
Total interest-bearing deposits |
1,407,530 |
1,426,065 |
1,409,247 |
1,283,282 |
1,224,358 |
||||||||
Noninterest-bearing demand deposits |
532,990 |
542,768 |
524,171 |
475,353 |
452,124 |
||||||||
Customer repurchase agreements |
142,944 |
139,794 |
125,662 |
118,958 |
129,195 |
||||||||
Total deposits and customer repurchase agreements |
$ 2,083,464 |
$ 2,108,627 |
$ 2,059,080 |
$ 1,877,593 |
$ 1,805,677 |
||||||||
BALANCE SHEET AVERAGES |
|||||||||||||
Average Assets |
$ 2,431,019 |
$ 2,472,318 |
$ 2,518,393 |
$ 2,580,448 |
$ 2,658,588 |
||||||||
Average Loans |
1,754,384 |
1,836,782 |
1,920,384 |
2,012,342 |
2,025,349 |
||||||||
Average Deposits |
1,934,222 |
1,966,157 |
1,835,662 |
1,719,953 |
1,630,537 |
||||||||
Average Subordinated Debentures |
93,150 |
93,150 |
93,150 |
93,150 |
93,150 |
||||||||
Average Shareholders' Equity |
230,745 |
234,844 |
248,781 |
206,127 |
253,669 |
||||||||
Average Interest-Earning Assets |
2,234,775 |
2,289,621 |
2,322,410 |
2,419,408 |
2,475,708 |
||||||||
Average Interest-Bearing Liabilities |
1,651,471 |
1,679,788 |
1,741,117 |
1,894,779 |
1,947,119 |
||||||||
CREDIT QUALITY |
|||||||||||||
Nonperforming Loans |
|||||||||||||
Loans 90 days or more past due and accruing interest |
$ 2,054 |
$ 509 |
$ 3,949 |
$ 35 |
$ 522 |
||||||||
Nonaccrual loans |
69,003 |
78,689 |
71,785 |
67,394 |
43,121 |
||||||||
Total nonperforming loans |
71,057 |
79,198 |
75,734 |
67,429 |
43,643 |
||||||||
OREO and Repossessed Assets |
28,951 |
25,318 |
22,452 |
26,461 |
8,879 |
||||||||
Total nonperforming assets |
$ 100,008 |
$ 104,516 |
$ 98,186 |
$ 93,890 |
$ 52,522 |
||||||||
ASSET QUALITY MEASURES |
|||||||||||||
Nonperforming Assets to Total Assets |
4.13% |
4.24% |
3.87% |
3.70% |
2.00% |
||||||||
Nonperforming Loans to Total Loans |
4.11% |
4.44% |
4.03% |
3.45% |
2.16% |
||||||||
Nonperforming Loans and OREO to Total Loans and OREO |
5.69% |
5.78% |
5.16% |
4.75% |
2.59% |
||||||||
Allowance for Loan and Credit Losses to Total Loans (excluding loans held for sale) |
4.17% |
4.23% |
4.35% |
3.87% |
3.16% |
||||||||
Allowance for Loan and Credit Losses to Nonperforming Loans |
101.41% |
97.28% |
107.86% |
111.99% |
146.12% |
||||||||
EQUITY MEASURES |
|||||||||||||
Common shares outstanding at period end (in thousands) |
36,760 |
36,724 |
36,694 |
23,460 |
23,421 |
||||||||
Book Value Per Common Share |
$ 4.42 |
$ 4.59 |
$ 4.70 |
$ 5.61 |
$ 6.04 |
||||||||
Tangible Book Value Per Common Share * |
$ 4.29 |
$ 4.46 |
$ 4.56 |
$ 4.85 |
$ 5.28 |
||||||||
Tangible Common Equity to Tangible Assets * |
6.53% |
6.65% |
6.60% |
4.51% |
4.75% |
||||||||
Tangible Equity to Tangible Assets * |
9.09% |
9.16% |
9.04% |
6.95% |
7.11% |
||||||||
Tier 1 Capital Ratio |
** |
13.81% |
13.95% |
10.78% |
11.55% |
||||||||
Total Risk Based Capital Ratio |
** |
16.13% |
16.25% |
13.44% |
13.89% |
||||||||
* See accompanying Non-GAAP reconciliation. |
|||||||||||||
** Ratios unavailable at the time of release. |
|||||||||||||
CoBiz Financial Inc. |
||||||||||||||
March 31, 2010 |
||||||||||||||
(unaudited) |
||||||||||||||
Three months ended |
||||||||||||||
March 31, 2010 |
December 31, 2009 |
March 31, 2009 |
||||||||||||
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 |
$ 17,204 |
$ 19 |
0.44% |
$ 28,390 |
$ 31 |
0.43% |
$ 5,482 |
$ 27 |
1.97% |
|||||
Investment securities |
537,517 |
5,933 |
4.42% |
507,858 |
5,947 |
4.68% |
489,608 |
6,351 |
5.19% |
|||||
Loans |
1,754,384 |
24,138 |
5.50% |
1,836,782 |
25,178 |
5.36% |
2,025,349 |
27,344 |
5.40% |
|||||
Allowance for loan losses |
(74,330) |
(83,409) |
(44,731) |
|||||||||||
Total interest-earning assets |
$ 2,234,775 |
$ 30,090 |
5.20% |
$ 2,289,621 |
$ 31,156 |
5.15% |
$ 2,475,708 |
$ 33,722 |
5.35% |
|||||
Noninterest-earning assets |
||||||||||||||
Cash and due from banks |
35,489 |
35,684 |
35,861 |
|||||||||||
Other |
160,755 |
147,013 |
147,019 |
|||||||||||
Total assets |
$ 2,431,019 |
$ 2,472,318 |
$ 2,658,588 |
|||||||||||
Liabilities and Shareholders' Equity |
||||||||||||||
Deposits |
||||||||||||||
NOW and money market |
$ 703,959 |
$ 1,330 |
0.77% |
$ 667,682 |
$ 1,498 |
0.89% |
$ 535,324 |
$ 1,540 |
1.17% |
|||||
Savings |
10,406 |
10 |
0.39% |
9,916 |
12 |
0.48% |
10,260 |
12 |
0.47% |
|||||
Eurodollar |
111,958 |
262 |
0.94% |
113,745 |
312 |
1.07% |
97,063 |
310 |
1.28% |
|||||
Certificates of deposit |
||||||||||||||
Brokered |
5,616 |
30 |
2.17% |
17,265 |
87 |
2.00% |
30,846 |
69 |
0.91% |
|||||
Reciprocal |
174,013 |
506 |
1.18% |
182,016 |
637 |
1.39% |
101,706 |
365 |
1.46% |
|||||
Under $100,000 |
51,204 |
214 |
1.69% |
53,715 |
258 |
1.91% |
70,045 |
532 |
3.08% |
|||||
$100,000 and over |
345,324 |
1,358 |
1.59% |
386,874 |
1,852 |
1.90% |
345,406 |
2,109 |
2.48% |
|||||
Total interest-bearing deposits |
$ 1,402,480 |
$ 3,710 |
1.07% |
$ 1,431,213 |
$ 4,656 |
1.29% |
$ 1,190,650 |
$ 4,937 |
1.68% |
|||||
Other borrowings |
||||||||||||||
Securities sold under agreements to repurchase |
132,258 |
291 |
0.88% |
135,529 |
330 |
0.95% |
123,820 |
272 |
0.88% |
|||||
Other short-term borrowings |
23,583 |
16 |
0.27% |
19,896 |
19 |
0.37% |
539,499 |
506 |
0.38% |
|||||
Long term-debt |
93,150 |
1,149 |
4.93% |
93,150 |
976 |
4.10% |
93,150 |
1,240 |
5.32% |
|||||
Total interest-bearing liabilities |
$ 1,651,471 |
$ 5,166 |
1.26% |
$ 1,679,788 |
$ 5,981 |
1.41% |
$ 1,947,119 |
$ 6,955 |
1.44% |
|||||
Noninterest-bearing demand accounts |
531,742 |
534,944 |
439,887 |
|||||||||||
Total deposits and interest-bearing liabilities |
2,183,213 |
2,214,732 |
2,387,006 |
|||||||||||
Other noninterest-bearing liabilities |
15,935 |
21,509 |
17,913 |
|||||||||||
Total liabilities |
2,199,148 |
2,236,241 |
2,404,919 |
|||||||||||
Total equity |
231,871 |
236,077 |
253,669 |
|||||||||||
Total liabilities and equity |
$ 2,431,019 |
$ 2,472,318 |
$ 2,658,588 |
|||||||||||
Net interest income - taxable equivalent |
$ 24,924 |
$ 25,175 |
$ 26,767 |
|||||||||||
Net interest spread |
3.94% |
3.74% |
3.91% |
|||||||||||
Net interest margin |
4.52% |
4.36% |
4.38% |
|||||||||||
Ratio of average interest-earning assets to |
||||||||||||||
average interest-bearing liabilities |
135.32% |
136.30% |
127.15% |
|||||||||||
CoBiz Financial Inc. |
|||||||||||
March 31, 2010 |
|||||||||||
(unaudited) |
|||||||||||
Reconciliation of Non-GAAP Measures to GAAP |
|||||||||||
(in thousands, except per share amounts) |
|||||||||||
The Company believes these Non-GAAP measurements 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 measurements 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 table includes Non-GAAP financial measurements related to tangible equity, tangible common equity and tangible assets. These items have been adjusted to exclude goodwill, intangible assets and preferred stock. |
|||||||||||
March 31, 2010 |
December 31, 2009 |
September 30, 2009 |
June 30, 2009 |
March 31, 2009 |
|||||||
Shareholders' equity as reported - GAAP |
$ 224,471 |
$ 230,451 |
$ 234,080 |
$ 193,132 |
$ 203,049 |
||||||
Goodwill and intangible assets |
(4,749) |
(4,910) |
(5,078) |
(17,708) |
(17,878) |
||||||
Tangible equity - Non-GAAP |
219,722 |
225,541 |
229,002 |
175,424 |
185,171 |
||||||
Preferred stock |
(62,005) |
(61,872) |
(61,742) |
(61,614) |
(61,494) |
||||||
Tangible common equity - Non-GAAP |
$ 157,717 |
$ 163,669 |
$ 167,260 |
$ 113,810 |
$ 123,677 |
||||||
Total assets as reported - GAAP |
$ 2,421,040 |
$ 2,466,015 |
$ 2,537,665 |
$ 2,540,833 |
$ 2,623,923 |
||||||
Goodwill and intangible assets |
(4,749) |
(4,910) |
(5,078) |
(17,708) |
(17,878) |
||||||
Total tangible assets - Non-GAAP |
$ 2,416,291 |
$ 2,461,105 |
$ 2,532,587 |
$ 2,523,125 |
$ 2,606,045 |
||||||
Common shares outstanding |
36,760 |
36,724 |
36,694 |
23,460 |
23,421 |
||||||
Tangible equity to tangible assets - Non-GAAP |
9.09% |
9.16% |
9.04% |
6.95% |
7.11% |
||||||
Tangible common equity to tangible assets - Non-GAAP |
6.53% |
6.65% |
6.60% |
4.51% |
4.75% |
||||||
Tangible book value per common share - Non-GAAP |
$ 4.29 |
$ 4.46 |
$ 4.56 |
$ 4.85 |
$ 5.28 |
||||||
The following table includes a Non-GAAP financial measurement related to diluted loss per common share and has been adjusted to exclude impairment on goodwill and intangible assets as well as the tax effect resulting from impairment charges. |
|||||||||||
Three months ended |
|||
March 31, 2009 |
|||
Net loss attributable to common shareholders - GAAP |
$ (47,879) |
||
Impairment of goodwill and intangible assets |
33,817 |
||
Benefit for income taxes on impairment charge |
(1,495) |
||
Net loss - Non-GAAP |
$ (15,557) |
||
Diluted loss per common share - GAAP |
$ (2.07) |
||
Impairment charge per diluted share |
1.40 |
||
Diluted loss per common share - Non-GAAP |
$ (0.67) |
||
SOURCE CoBiz Financial
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