CoBiz Financial Reports Third Quarter 2009 Results
- Press Release
- Source: CoBiz Financial Inc.
- On 6:40 pm EDT, Thursday October 22, 2009
DENVER, Oct. 22 /PRNewswire-FirstCall/ -- CoBiz Financial Inc. (Nasdaq: COBZ - News), a financial services company with $2.5 billion in assets, announced a net loss of $6.7 million for the third quarter of 2009 from core operations, excluding a pre-tax goodwill impairment of $12.5 million (see the accompanying reconciliation of Non-GAAP Measures to GAAP). The net loss available to common shareholders from core operations was $0.23 per diluted common share, excluding noncash charges from goodwill impairment of $0.27 per diluted share (see the accompanying reconciliation of Non-GAAP Measures to GAAP). Including these charges, the third quarter net loss applicable to common shareholders was $16.7 million, or $0.50 per diluted share.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| COBZ | 4.00 | -0.23 |
Financial Performance - Third Quarter 2009
- During the third quarter, the Company completed a successful common equity placement of $55.8 million, net of expenses. The offering brought the tangible shareholders' equity ratio to 9.04% and the tangible common equity ratio to 6.60% at the end of the third quarter of 2009 from 6.95% and 4.51%, respectively, at June 30, 2009 (see the accompanying reconciliation of Non-GAAP Measures to GAAP).
- During the third quarter, the Company eliminated all goodwill from its balance sheet and recognized a $12.5 million noncash, goodwill impairment charge related to non-banking activities. For the full year, the company has recorded $46.2 million in goodwill impairment charges. The charge has no impact on our liquidity position, tangible capital or regulatory capital.
- The provision for loan and credit losses for the third quarter decreased by $14.9 million, or 42.5% from the second quarter of 2009 to $20.2 million. The third quarter provision covered 144% of net charge-offs ($14.0 million) for the period. The resulting allowance for loan and credit losses (Allowance) increased to 4.35% of total loans. For the year, the loan and credit loss provision was $89.2 million and 176% of year-to-date net charge-offs.
- Nonperforming assets ended the quarter at $98.2 million, or 3.87% of total assets, up slightly from $93.9 million or 3.70% of total assets at June 30, 2009.
- The net interest margin increased to 4.40% for the third quarter of 2009, from 4.38% in the second quarter of 2009. The net interest margin increased 30 basis points (0.30%) from 4.10% in the third quarter of 2008.
- During the third quarter, net interest income increased by $1.3 million, or 5.6%, over the comparable quarter in 2008 to $25.6 million. For the nine months ended September 2009, net interest income increased by $8.7 million or 12.5% to $78.4 million.
- The Company recognized a $0.9 million, pre-tax loss on securities, other assets and OREO as compared to $1.7 million in the second quarter of 2009.
- Loans outstanding as of September 30, 2009, decreased by $71.8 million to $1.9 billion from June 30, 2009 (linked-quarter).
- Deposits and customer repurchase agreements (Customer Repo's) increased by $181.5 million on a linked-quarter basis, or 38.3% annualized. Deposits and Customer Repo's excluding wholesale brokered sources (Customer Funding) increased by $212.1 million on a linked-quarter basis, or 46.4% annualized. Year-over-year, Customer Funding increased by $268.3 million or 15.3%.
- Total noninterest-bearing demand accounts represented 27.1% of total deposits as of September 30, 2009, compared to 25.3% at the prior-year period.
"We were very pleased to have successfully completed our equity offering during such a difficult environment for the industry, meaningfully increasing our tangible common equity levels," said Chairman and CEO Steve Bangert. "The new equity, combined with some recent key hires, will enable us to continue building our franchise during these challenging times.
"While problem asset levels remain elevated, I was encouraged by the significant decrease in credit costs from the prior quarter," said Bangert. "Although we are seeing some evidence that asset quality is starting to stabilize, we felt it prudent to continue building a strong Allowance coverage. Our current Allowance of 4.35% is one of the highest in the industry and remains over 100% of our nonperforming loans.
Loan demand was disappointing during the quarter, however, our Bankers made considerable progress in building market share by attracting and building depository relationships. With our liquidity at record levels and the new capital, I am excited about the possibilities for our franchise when the economic recovery takes hold. The ultimate decrease in credit costs, combined with an increase in market share, should translate into significant earnings momentum as our existing client-base begins to borrow again."
Loans
Loans for Colorado Business Bank and Arizona Business Bank, collectively the Bank, ended the period just under $1.9 billion, a decrease of $71.8 million, or 14.6% annualized, over June 2009. Total credit extended this quarter was $126.6 million. The Company extended $49.2 million of credit to new client relationships and $77.4 million in loan advances during the third quarter which was offset by a higher level of pay-downs and maturities.
Year-to-date, loans have decreased by $151.3 million, or 10% annualized. Although we continue to actively market new relationships, we have seen a significant decrease in quality loan demand in our markets.
Overall, Commercial and Industrial (C&I) loans comprised $579.5 million of the total portfolio as of September 2009 compared to $621.1 million or 31.0% a year earlier. Commercial Real Estate accounted for 45.7%, with owner/occupied properties comprising just over half of this category or 23.0% of total loans. Land acquisition and development loans (A&D) decreased to $179.0 million or 9.5% of the total portfolio at the end of third quarter from $243.3 million a year ago. Construction loans, excluding A&D, accounted for $165.9 million or 8.8% of the portfolio at September 30, 2009 as compared to $218.1 million a year ago.
Investment Securities
The Company recognized a $0.5 million pretax Other Than Temporary Impairment (OTTI) valuation loss during the third quarter of 2009 (approximately 0.10% of the investment portfolio). The valuation loss related to two private label, mortgage-backed securities (MBS), one of which was previously deemed to have an OTTI.
The Company had investment securities with a carrying value totaling $483.9 million at September 30, 2009, an increase of $33.9 million from the prior quarter. The portfolio consists primarily of mortgage-backed securities, the overwhelming majority of which are backed by U.S. government agencies. These securities had a net book value of $391.6 million and a market value of $405.7 million at quarter end. The remaining MBS are non-agency, private-label securities with a net book value of $5.6 million and a market value of $2.6 million. At September 30, 2009, the Company had $25.0 million in U.S. Government Agencies, which were purchased during the third quarter. Investments also include $21.8 million of single-issuer trust preferred securities backed by 14 different financial institutions and $25.5 million of corporate debt securities issued primarily by six S&P 500 companies. The fair value of these securities was $47.6 million at September 30, 2009. The portfolio does not contain any collateralized debt obligations (CDOs) or securities backed by sub-prime mortgage loans.
Deposits and Customer Repo Balances
Deposit and Customer Repo balances ended the period at $2.1 billion, an increase of $181.6 million from the same period in 2008, or 9.7%. On a linked-quarter basis, Deposit and Customer Repo balances increased by $181.5 million. Customer Funding (excluding brokered deposits from non-relationship sources) increased $212.1 million on a linked-quarter basis and $268.3 million from the prior year period. The quarterly growth was well diversified, with 63 separate relationships having balance increases of more than $1 million. The second quarter of 2009 had 60 relationships with increases of over $1 million. The strong growth in core deposits is the result of a consistent, focused marketing effort by our business development officers.
Total noninterest-bearing demand accounts represented 27.1% of total deposits as of September 30, 2009, as compared to 25.3% at the prior-year period.
Allowance for Loan and Credit Losses and Credit Quality
The rate of increase of nonperforming assets (NPAs) slowed considerably during the third quarter: NPAs increased by $4.3 million, or 4.6% from $93.9 million in June 2009 to $98.2 million at September 2009. Total nonperforming loans (NPLs) increased to $75.7 million as of September 30, 2009, from $67.4 million at June 30, 2009. NPLs to total loans increased to 4.03% at the end of the current quarter, from 3.45% as of the end of the prior linked-quarter. Other Real Estate Owned acquired through foreclosure (OREO) decreased by $4.0 million during the period to $22.5 million.
Of the total, 57% of NPAs, or $55.9 million, are within the Colorado portfolio and 43%, or $42.3 million, are in Arizona. Land A&D and Construction loans continue to exhibit the greatest weakness with 17.0% and 4.3%, respectively, of total loans in their category on nonaccrual status. Nonaccruing C&I and Real Estate loans remained manageable at 2.2% and 2.5%, respectively. Of the $22.5 million of OREO, $14.7 million, or 65%, was located in Colorado and $7.8 million, or 35%, was located in Arizona.
Our third quarter loan and credit loss provision of $20.2 million decreased by 42.5% or $14.9 million from the second quarter and 40.4% or $13.7 million from the first quarter of 2009. The Company charged-off (net of recoveries) $14.0 million in loans during the third quarter of 2009 and $50.6 million in the first nine months of 2009. Overall, the Company provided $38.6 million more in provision for loan and credit losses than it has charged-off during the year. As a result, the Allowance increased to $81.7 million as of September 30, 2009, from $43.1 million as of December 31, 2008. The Company's Allowance to total loans held for investment increased to 4.35% as of September 30, 2009, from 2.12% as of December 31, 2008. The Allowance was nearly 108% of NPLs at September 30, 2009.
Shareholders' Equity and Regulatory Capital
During the third quarter, the Company successfully completed a follow-on offering of its common stock, enhancing its already strong regulatory capital position and significantly improving its tangible common equity ratio. The company raised $59.4 million, gross of transaction expenses. As of the end of the third quarter, total Shareholders' Equity was $234.1 million. The Company's total tangible shareholders' equity was $229.0 million. The offering brought the tangible shareholders' equity ratio to 9.04% and the tangible common equity ratio to 6.60% at the end of the third quarter of 2009 from 6.95% and 4.51%, respectively, at June 2009 (see the accompanying Reconciliation of Non-GAAP Measures to GAAP).
As of September 30, 2009, the Company was significantly in excess of what is considered "Well-Capitalized" with an expected Tier 1 Capital ratio of 13.95%, and Total Capital ratio of 16.25%. Under the risk-based capital guidelines, the Allowance qualifies as Tier 2 equity up to 1.25% of risk-weighted assets. Consequently, due to the level of the Company's provisioning for loan losses, approximately $55.1 million of Allowance was disallowed at September 30, 2009, under the risk-based capital rules, which equated to 2.66% of risk-weighted assets.
Net Interest Income & Margin
Net interest income on a tax equivalent basis for the third quarter of 2009 increased to $25.8 million from $24.4 million for the third quarter of 2008, a 5.4% increase. Net interest income on a tax equivalent basis was $26.4 million for the second quarter of 2009. During the current quarter, our net interest margin (NIM) on a tax equivalent basis expanded to 4.40% vs. 4.10% as of the third quarter of 2008 and increased by two basis points (0.02%) on a linked-quarter basis. Nonaccrual loans adversely affect our reported NIM by approximately 20 basis points.
Average earning assets decreased by $97.0 million on a linked-quarter basis, mainly due to a decrease in average loans of $92.0 million and an increase in average Allowance of $7.2 million (which the Company includes in its interest-earning assets as a contra-asset account). Average Customer Funding increased $106.1 million from the prior linked-quarter. The combined impact of the average earning asset decrease and Customer Funding increase resulted in a short-term wholesale funding decrease of $210.3 million on a linked-quarter basis.
Yields on average earning assets were up slightly in the third quarter of 2009 on a linked-quarter basis, increasing by a 3 basis points (0.03%). Rates paid on average interest-bearing liabilities decreased 2 basis points (0.02%) compared to the second quarter of 2009.
Noninterest Income
Noninterest income decreased by $1.1 million on a linked-quarter basis to $7.0 million for the third quarter. Noninterest income was $9.4 million in the third quarter of 2008. As a percentage of total operating revenue, noninterest income was 21.4% for the third quarter of 2009 vs. 28.0% for the prior-year quarter.
On a linked-quarter basis, the third quarter was negatively impacted by a $0.3 million decrease in earnings on equity method investments and a $0.6 million decrease in earnings on our customer swap products.
In general, all of our business segments continue to be 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.
Operating Expenses
Noninterest expenses for the third quarter of 2009 were $23.5 million as compared to $24.3 million for the second quarter of 2009. Noninterest expenses for the third quarter of 2008 were $21.7 million.
Salaries and employee benefits increased by $0.3 million on a linked-quarter basis to $13.4 million. Cost-containment initiatives implemented in the second quarter, primarily reductions to incentive compensation and 401(k) expenses, have worked to offset increases in salaries as the company continues to attract lending and management talent.
Other operating expenses were relatively stable on a linked-quarter basis as FDIC insurance cost decreases of $1.1 million due to the special assessment by the FDIC in the second quarter were offset by loan workout expense increases of $1.1 million. Compared to the third quarter 2008, other expense rose by $2.0 million, an increase primarily driven by higher FDIC costs of $0.7 million and higher loan workout expenses of $1.6 million. FDIC insurance costs and loan workout expenses respectively totaled $1.0 million and $1.8 million during the third quarter of 2009.
Overall, the Company's third quarter operating expenses decreased by $0.8 million compared with the second quarter. The Company's efficiency ratio for the first nine months of 2009 was 67.6%, a step back from the prior-year period ratio of 66.2%.
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, October 23, 2009, 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=62792 or by telephone at 877.493.9121, (conference ID #34736946).
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 $2.5 billion financial holding company headquartered in Denver. The Company operates Colorado Business Bank and Arizona Business Bank, full-service commercial banking institutions that offer a broad range of sophisticated banking services -- including credit, treasury management, investment and deposit products -- to a targeted customer base of professionals and small to mid-sized businesses. CoBiz also offers trust and fiduciary services through CoBiz Trust; property and casualty insurance brokerage and risk management consulting services through CoBiz Insurance; investment banking services through Green Manning & Bunch; the management of stock and bond portfolios for individuals and institutions through CoBiz Trust, Alexander Capital Management Group and Wagner Investment Management, Inc.; and employee and executive benefits consulting and wealth transfer services through Financial Designs, Ltd.
Forward-looking Information
This release contains forward-looking statements that describe CoBiz's future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "would", "could" or "may." Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
- Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent 10-K.
- Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.
- Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.
- Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and leases and related expenses.
- Our inability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects.
- Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.
- The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.
- Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.
- Changes in legislative or regulatory requirements applicable to us and our subsidiaries could increase costs, limit certain operations and adversely affect results of operations.
- Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers' businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Three months
ended September Nine months ended
30, September 30,
(in thousands, except ---------------- -----------------
per share amounts) 2009 2008 2009 2008
--------------------- ---- ---- ---- ----
INCOME STATEMENT DATA
Interest income $32,102 $36,052 $98,477 $109,088
Interest expense 6,515 11,814 20,085 39,376
----- ------ ------ ------
NET INTEREST INCOME
BEFORE PROVISION 25,587 24,238 78,392 69,712
Provision for loan
losses 20,262 5,335 89,258 16,352
------ ----- ------ ------
NET INTEREST INCOME
AFTER PROVISION 5,325 18,903 (10,866) 53,360
Noninterest income 6,979 9,422 21,135 28,723
Noninterest expense 23,503 21,703 71,407 66,085
Impairment of goodwill 12,463 - 46,160 -
------ --- ------ ---
INCOME (LOSS) BEFORE
INCOME TAXES (23,662) 6,622 (107,298) 15,998
Provision (benefit)
for income taxes (7,919) 2,422 (28,587) 5,712
------ ----- ------- -----
NET INCOME (LOSS) (15,743) 4,200 (78,711) 10,286
Net (income) loss
attributable to
noncontrolling
interest - (37) 208 (345)
--- --- --- ----
NET INCOME (LOSS)
ATTRIBUTABLE TO COBIZ
FINANCIAL $(15,743) $4,163 $(78,503) $9,941
======== ====== ======== ======
Preferred stock
dividends (935) - (2,797) -
---- --- ------ ---
NET INCOME (LOSS)
AVAILABLE TO COMMON
SHAREHOLDERS $(16,678) $4,163 $(81,300) $9,941
======== ====== ======== ======
EARNINGS (LOSS) PER
COMMON SHARE
BASIC $(0.50) $0.18 $(3.05) $0.43
------ ----- ------ -----
DILUTED $(0.50) $0.18 $(3.05) $0.43
------ ----- ------ -----
WEIGHTED AVERAGE SHARES
OUTSTANDING (in
thousands)
BASIC 33,581 23,104 26,688 23,063
------ ------ ------ ------
DILUTED 33,581 23,232 26,688 23,240
------ ------ ------ ------
COMMON SHARES OUTSTANDING
AT PERIOD END
(in thousands) 36,694 23,361
------ ------
BOOK VALUE PER COMMON
SHARE $4.70 $8.33
----- -----
PERIOD END BALANCES
Total Assets $2,537,665 $2,606,107
Loans 1,878,125 2,001,685
Loans held for sale 1,844 -
Goodwill and Intangible
Assets 5,078 51,658
Deposits 1,933,418 1,737,262
Subordinated Debentures 93,150 92,550
Common Shareholders'
Equity 172,338 194,523
Total Shareholders'
Equity 234,080 194,523
Interest-Earning Assets 2,355,281 2,421,375
Interest-Bearing
Liabilities 1,728,059 1,951,678
BALANCE SHEET AVERAGES
Average Assets $2,585,178 $2,483,357
Average Loans 1,985,641 1,893,407
Average Deposits 1,729,468 1,754,675
Average Subordinated
Debentures 93,150 74,742
Average Shareholders'
Equity 236,051 194,890
Average Interest-Earning
Assets 2,405,281 2,313,088
Average Interest-Bearing
Liabilities 1,860,250 1,838,793
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Three months
ended Nine months
September ended September
30, 30,
------------ ----------------
(in thousands) 2009 2008 2009 2008
-------------- ---- ---- ---- ----
PROFITABILITY MEASURES
Net Interest Margin 4.40% 4.10% 4.39% 4.06%
Efficiency Ratio 69.33% 61.28% 67.61% 66.19%
Return on Average Assets -2.48% 0.65% -4.06% 0.54%
Return on Average Shareholders'
Equity -25.11% 8.49% -44.46% 6.81%
Noninterest Income as a
Percentage of Operating Revenues 21.43% 27.99% 21.24% 29.18%
CREDIT QUALITY
Nonperforming Loans
Loans 90 days or more past due
and accruing
interest $3,949 $1,650
Nonaccrual loans 71,785 22,254
------ ------
Total nonperforming loans $75,734 $23,904
OREO & Repossessed Assets 22,452 7,008
------ -----
Total nonperforming assets $98,186 $30,912
======= =======
Charge-offs $(52,835) $(8,819)
Recoveries 2,225 127
----- ---
Net Charge-offs $(50,610) $(8,692)
======== =======
ASSET QUALITY MEASURES
Nonperforming Assets to Total
Assets 3.87% 1.19%
Nonperforming Loans to Total
Loans 4.03% 1.19%
Nonperforming Loans and OREO
to Total Loans and OREO 5.16% 1.54%
Allowance for Loan and Credit
Losses to Total Loans (excluding
loans held for sale) 4.35% 1.40%
Allowance for Loan and Credit
Losses to Nonperforming Loans 107.86% 116.98%
NONPERFORMING
ASSETS BY Total NPAs as a
MARKET Colorado Arizona Total in Category % of Total
------------- -------- ------- ----- ----------- ----------
Commercial $7,851 $4,814 $12,665 $579,524 2.19%
Term Real
Estate 13,423 8,315 21,738 859,329 2.53%
Land
Acquisition &
Development 13,328 17,051 30,379 178,949 16.98%
Construction 5,081 1,973 7,054 165,923 4.25%
Consumer 1,520 5 1,525 82,021 1.86%
Other Loans - 2,373 2,373 14,223 16.68%
Other Real
Estate Owned 14,657 7,795 22,452 22,452
------ ----- ------ ------ ----
NPAs $55,860 $42,326 $98,186 $1,902,421 5.16%
======= ======= ======= ========== ====
Total Loans $1,200,694 $679,275 $1,879,969
Total Loans
and OREO 1,215,351 687,070 1,902,421
Nonperforming
Loans to
Loans 3.43% 5.08% 4.03%
Nonperforming
Loans and
OREO to Total
Loans and
OREO 4.60% 6.16% 5.16%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Investment Investment
(in thousands, except per Commercial Banking Advisory
share amounts) Banking Services and Trust
------------------------- ------- -------- ---------
Net interest income
Quarter ended September
30, 2009 $26,404 $2 $(6)
Quarter ended June 30,
2009 27,330 1 (3)
Annualized quarterly
growth (13.4)% 396.7% (396.7)%
Quarter ended September
30, 2008 $25,516 $11 $-
Annual growth 3.5% (81.8)% (100.0)%
Noninterest income
Quarter ended September
30, 2009 $2,311 $476 $1,292
Quarter ended June 30,
2009 2,773 399 1,308
Annualized quarterly
growth (66.1)% 76.6% (4.9)%
Quarter ended September
30, 2008 $3,048 $1,062 $1,517
Annual growth (24.2)% (55.2)% (14.8)%
Net income
Quarter ended September
30, 2009 $(4,587) $(2,408) $(2,780)
Quarter ended June 30,
2009 (13,808) (376) (325)
Annualized quarterly
growth 264.9% (2,144.1)% (2,996.9)%
Quarter ended September
30, 2008 $5,292 $(235) $(140)
Annual growth (186.7)% (924.7)% (1,885.7)%
Earnings per share (diluted)
Quarter ended September
30, 2009 $(0.14) $(0.07) $(0.08)
Quarter ended June 30,
2009 (0.60) (0.02) (0.01)
Annualized quarterly
growth 304.2% (991.8)% (2,777.2)%
Quarter ended September
30, 2008 $0.23 $(0.01) $(0.01)
Annual growth (160.9)% (600.0)% (700.0)%
Total loans
At September 30, 2009
At June 30, 2009
Annualized quarterly
growth
At September 30, 2008
Annual growth
Total deposits and customer
repurchase agreements
At September 30, 2009
At June 30, 2009
Annualized quarterly
growth
At September 30, 2008
Annual growth
Corporate
(in thousands, except per Support and
share amounts) Insurance Other Consolidated
------------------------- --------- ----- ------------
Net interest income
Quarter ended
September 30,
2009 $(4) $(809) $25,587
Quarter ended
June 30, 2009 (4) (1,098) 26,226
Annualized
quarterly
growth .0% 104.4% (9.7)%
Quarter ended
September 30,
2008 $(2) $(1,287) $24,238
Annual growth (100.0)% 37.1% 5.6%
Noninterest income
Quarter ended
September 30,
2009 $3,019 $(119) $6,979
Quarter ended
June 30, 2009 2,795 760 8,035
Annualized
quarterly
growth 31.8% (458.9)% (52.1)%
Quarter ended
September 30,
2008 $3,743 $52 $9,422
Annual growth (19.3)% (328.8)% (25.9)%
Net income
Quarter ended
September 30,
2009 $(4,465) $(1,503) $(15,743)
Quarter ended
June 30, 2009 (202) (1,100) (15,811)
Annualized
quarterly
growth (8,372.8)% (145.4)% 1.7%
Quarter ended
September 30,
2008 $25 $(779) $4,163
Annual growth (17,960.0)% (92.9)% (478.2)%
Earnings per share
(diluted)
Quarter ended
September 30,
2009 $(0.13) $(0.08) $(0.50)
Quarter ended
June 30, 2009 (0.01) (0.08) (0.72)
Annualized
quarterly
growth (4,760.9)% .0% 121.2%
Quarter ended
September 30,
2008 $- $(0.03) $0.18
Annual growth (100.0)% (166.7)% (377.8)%
Total loans
At September
30, 2009 $1,879,969
At June 30,
2009 1,951,775
Annualized
quarterly
growth (14.6)%
At September
30, 2008 $2,001,685
Annual growth (6.1)%
Total deposits and
customer repurchase
agreements
At September
30, 2009 $2,059,080
At June 30,
2009 1,877,593
Annualized
quarterly
growth 38.3%
At September
30, 2008 $1,877,526
Annual growth 9.7%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Three months ended
------------------
September June March December September
30, 30, 31, 31, 30,
(in thousands) 2009 2009 2009 2008 2008
-------------- ---- ---- ---- ---- ----
COMMERCIAL BANKING
------------------
Income Statement
Total interest
income $31,901 $32,820 $33,508 $35,780 $36,012
Total interest
expense 5,497 5,490 5,699 8,603 10,496
----- ----- ----- ----- ------
Net interest
income 26,404 27,330 27,809 27,177 25,516
Provision for
loan losses 19,838 35,249 33,747 23,444 5,335
------ ------ ------ ------ -----
Net interest
income (loss)
after provision 6,566 (7,919) (5,938) 3,733 20,181
Noninterest
income 2,311 2,773 1,929 1,475 3,048
Noninterest
expense 8,231 10,323 23,490 9,184 8,485
----- ------ ------ ----- -----
Income (loss)
before income
taxes 646 (15,469) (27,499) (3,976) 14,744
Provision
(benefit) for
income taxes 14 (4,768) (4,813) (1,994) 5,680
-- ------ ------ ------ -----
Net income (loss)
before management
fees and overhead
allocations $632 $(10,701) $(22,686) $(1,982) $9,064
---- -------- -------- ------- ------
Management fees
and overhead
allocations,
net of tax 5,219 3,107 5,105 4,740 3,772
----- ----- ----- ----- -----
Net income (loss) $(4,587) $(13,808) $(27,791) $(6,722) $5,292
======= ======== ======== ======= ======
INVESTMENT BANKING
------------------
Income Statement
Total interest
income $2 $1 $3 $8 $11
Total interest
expense - - - - -
--- --- --- --- ---
Net interest
income 2 1 3 8 11
Provision for
loan losses - - - - -
--- --- --- --- ---
Net interest
income (loss)
after provision 2 1 3 8 11
Noninterest
income 476 399 104 504 1,062
Noninterest
expense 4,203 955 3,146 1,142 1,369
----- --- ----- ----- -----
Income (loss)
before income
taxes (3,725) (555) (3,039) (630) (296)
Provision
(benefit) for
income taxes (1,347) (209) (1,755) (247) (102)
------ ---- ------ ---- ----
Net income (loss)
before management
fees and overhead
allocations $(2,378) $(346) $(1,284) $(383) $(194)
------- ----- ------- ----- -----
Management fees
and overhead
allocations,
net of tax 30 30 38 34 41
--- --- --- --- ---
Net income (loss) $(2,408) $(376) $(1,322) $(417) $(235)
======= ===== ======= ===== =====
INVESTMENT ADVISORY AND TRUST
-----------------------------
Income Statement
Total interest
income $- $- $- $- $-
Total interest
expense 6 3 - 3 -
- - - - -
Net interest
income (6) (3) - (3) -
Provision for
loan losses - - - - -
- - - - -
Net interest
income (loss)
after provision (6) (3) - (3) -
Noninterest
income 1,292 1,308 1,224 1,413 1,517
Noninterest
expense 4,773 1,698 4,736 1,255 1,570
----- ----- ----- ----- -----
Income (loss)
before income
taxes (3,487) (393) (3,512) 155 (53)
Provision
(benefit) for
income taxes (794) (152) (153) 51 7
---- ---- ---- -- ---
Net income (loss)
before management
fees and overhead
allocations $(2,693) $(241) $(3,359) $104 $(60)
------- ----- ------- ---- ----
Management fees
and overhead
allocations,
net of tax 87 84 111 66 80
--- --- --- --- ---
Net income
(loss) $(2,780) $(325) $(3,470) $38 $(140)
======= ===== ======= === =====
INSURANCE
---------
Income Statement
Total interest
income $- $- $- $- $-
Total interest
expense 4 4 2 4 2
--- --- --- --- ---
Net interest
income (4) (4) (2) (4) (2)
Provision for
loan losses - - - - -
--- --- --- --- ---
Net interest
income (loss)
after provision (4) (4) (2) (4) (2)
Noninterest
income 3,019 2,795 3,384 3,594 3,743
Noninterest
expense 8,938 2,966 16,512 3,353 3,488
----- ----- ------ ----- -----
Income (loss)
before income
taxes (5,923) (175) (13,130) 237 253
Provision
(benefit) for
income taxes (1,548) (63) (24) 85 127
------ --- --- -- ---
Net income (loss)
before management
fees and
overhead
allocations $(4,375) $(112) $(13,106) $152 $126
------- ----- -------- ---- ----
Management fees
and overhead
allocations,
net of tax 90 90 114 83 101
--- --- --- --- ---
Net income (loss) $(4,465) $(202) $(13,220) $69 $25
======= ===== ======== === ===
CORPORATE SUPPORT AND OTHER
---------------------------
Income Statement
Total interest
income $199 $20 $23 $32 $29
Total interest
expense 1,008 1,118 1,254 1,571 1,316
----- ----- ----- ----- -----
Net interest
income (809) (1,098) (1,231) (1,539) (1,287)
Provision for
loan losses 424 - - - -
--- - - - -
Net interest
income (loss)
after provision (1,233) (1,098) (1,231) (1,539) (1,287)
Noninterest
income (119) 760 (520) 69 52
Noninterest
expense 9,821 8,331 9,444 8,698 6,791
----- ----- ----- ----- -----
Income (loss)
before income
taxes (11,173) (8,669) (11,195) (10,168) (8,026)
Provision
(benefit) for
income taxes (4,244) (4,548) (4,183) (3,698) (3,290)
------ ------ ------ ------ ------
Net income (loss)
before management
fees and overhead
allocations $(6,929) $(4,121) $(7,012) $(6,470) $(4,736)
------- ------- ------- ------- -------
Management fees
and overhead
allocations,
net of tax (5,426) (3,311) (5,368) (4,923) (3,994)
------ ------ ------ ------ ------
Net income (loss) $(1,503) $(810) $(1,644) $(1,547) $(742)
Noncontrolling
interest - (290) 498 (34) (37)
--- ---- --- --- ---
Net income (loss)
attributable to
CoBiz Financial $(1,503) $(1,100) $(1,146) $(1,581) $(779)
======= ======= ======= ======= =====
CONSOLIDATED
------------
Income Statement
Total interest
income $32,102 $32,841 $33,534 $35,820 $36,052
Total interest
expense 6,515 6,615 6,955 10,181 11,814
----- ----- ----- ------ ------
Net interest
income 25,587 26,226 26,579 25,639 24,238
Provision for
loan losses 20,262 35,249 33,747 23,444 5,335
------ ------ ------ ------ -----
Net interest
income (loss)
after provision 5,325 (9,023) (7,168) 2,195 18,903
Noninterest
income 6,979 8,035 6,121 7,055 9,422
Noninterest
expense 35,966 24,273 57,328 23,632 21,703
------ ------ ------ ------ ------
Income (loss)
before income
taxes (23,662) (25,261) (58,375) (14,382) 6,622
Provision
(benefit) for
income taxes (7,919) (9,740) (10,928) (5,803) 2,422
------ ------ ------- ------ -----
Net income (loss)
before management
fees and overhead
allocations $(15,743) $(15,521) $(47,447) $(8,579) $4,200
-------- -------- -------- ------- ------
Management fees
and overhead
allocations,
net of tax - - - - -
--- --- --- --- ---
Net income
(loss) $(15,743) $(15,521) $(47,447) $(8,579) $4,200
Noncontrolling
interest - (290) 498 (34) (37)
--- ---- --- --- ---
Net income
(loss)
attributable to
CoBiz Financial $(15,743) $(15,811) $(46,949) $(8,613) $4,163
======== ======== ======== ======= ======
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Three months ended
------------------
(in thousands,
except per share September June March December September
amounts) 30, 2009 30, 2009 31, 2009 31, 2008 30, 2008
----------------- -------- -------- -------- -------- --------
Interest income $32,102 $32,841 $33,534 $35,820 $36,052
Interest expense 6,515 6,615 6,955 10,181 11,814
----- ----- ----- ------ ------
Net interest
income before
provision 25,587 26,226 26,579 25,639 24,238
Provision for loan
losses 20,262 35,249 33,747 23,444 5,335
------ ------ ------ ------ -----
Net interest
income (loss)
after provision 5,325 (9,023) (7,168) 2,195 18,903
----- ------ ------ ----- ------
Noninterest income:
Deposit service
charges $1,282 $1,248 $1,177 $1,111 $1,045
Investment
advisory and
trust income 1,292 1,308 1,224 1,413 1,517
Insurance income 3,019 2,795 3,384 3,594 3,743
Investment banking
income 476 399 104 504 1,062
Other income 910 2,285 232 433 2,055
--- ----- --- --- -----
Total noninterest
income 6,979 8,035 6,121 7,055 9,422
----- ----- ----- ----- -----
Noninterest expense:
Salaries and
employee benefits $13,350 $13,081 $13,836 $12,052 $13,383
Stock based
compensation
expense 313 411 409 489 393
Occupancy expenses,
premises and
equipment 3,320 3,288 3,274 3,417 3,274
Amortization of
intangibles 169 169 169 169 166
Other operating
expenses 5,426 5,632 4,584 4,070 3,390
Impairment of
goodwill 12,463 - 33,697 - -
Net loss on
securities,
other assets and
OREO 925 1,692 1,359 3,435 1,097
--- ----- ----- ----- -----
Total noninterest
expense 35,966 24,273 57,328 23,632 21,703
------ ------ ------ ------ ------
Income (loss)
before income
taxes (23,662) (25,261) (58,375) (14,382) 6,622
Provision (benefit)
for income taxes (7,919) (9,740) (10,928) (5,803) 2,422
------ ------ ------- ------ -----
Net income (loss) (15,743) (15,521) (47,447) (8,579) 4,200
Net (income) loss
attributable to
noncontrolling
interest - (290) 498 (34) (37)
--- ---- --- --- ---
Net (income)
loss
attributable
to CoBiz
Financial $(15,743) $(15,811) $(46,949) $(8,613) $4,163
======== ======== ======== ======= ======
Preferred stock
dividends (935) (932) (930) (124) -
---- ---- ---- ---- -
Net income (loss)
available to
common
shareholders $(16,678) $(16,743) $(47,879) $(8,737) $4,163
======== ======== ======== ======= ======
Earnings (loss) per
common share
Basic $(0.50) $(0.72) $(2.07) $(0.38) $0.18
------ ------ ------ ------ -----
Diluted $(0.50) $(0.72) $(2.07) $(0.38) $0.18
------ ------ ------ ------ -----
Weighted average
shares outstanding
(in thousands)
Basic 33,581 23,194 23,174 23,144 23,104
------ ------ ------ ------ ------
Diluted 33,581 23,194 23,174 23,144 23,232
------ ------ ------ ------ ------
Common shares
outstanding at
period end (in
thousands) 36,694 23,460 23,421 23,375 23,361
------ ------ ------ ------ ------
Book value per
common share $4.70 $5.61 $6.04 $8.16 $8.33
----- ----- ----- ----- -----
PROFITABILITY
MEASURES
Net Interest Margin 4.40% 4.38% 4.38% 4.15% 4.10%
Efficiency Ratio 69.33% 66.47% 67.09% 61.84% 61.28%
Return on Average
Assets (2.48)% (2.46)% (7.16)% -1.28% 0.65%
Return on Average
Shareholders'
Equity (25.11)% (30.77)% (75.65)% -16.78% 8.49%
Noninterest Income
as a Percentage of
Operating Revenues 21.43% 23.45% 18.72% 21.58% 27.99%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
At
---------------------------------------------------------
September June March December September
30, 30, 31, 31, 30,
(in thousands) 2009 2009 2009 2008 2008
-------------- ---- ---- ---- ---- ----
PERIOD END
BALANCES
Total Assets $2,537,665 $2,540,833 $2,623,923 $2,684,275 $2,606,107
Loans 1,878,125 1,949,590 2,016,350 2,031,253 2,001,685
Loans held
for sale 1,844 2,185 3,100 - -
Goodwill and
Intangible
Assets 5,078 17,708 17,878 51,864 51,658
Deposits 1,933,418 1,758,635 1,676,482 1,639,031 1,737,262
Subordinated
Debentures 93,150 93,150 93,150 93,150 92,550
Common
Shareholders'
Equity 172,338 131,518 141,555 190,635 194,523
Total
Shareholders'
Equity 234,080 193,132 203,049 252,099 194,523
Interest-
Earning
Assets 2,355,281 2,344,099 2,441,130 2,498,484 2,421,375
Interest-
Bearing
Liabilities 1,728,059 1,848,425 1,945,511 1,954,991 1,951,678
LOANS
Commercial $579,524 $603,278 $630,567 $648,968 $621,128
Real
estate -
mortgage 980,345 1,009,960 1,039,957 1,017,444 982,084
Real estate -
construction 223,856 237,663 250,767 266,928 305,819
Consumer 82,021 85,385 83,405 86,701 80,336
Other 12,379 13,304 11,654 11,212 12,318
------ ------ ------ ------ ------
Gross loans 1,878,125 1,949,590 2,016,350 2,031,253 2,001,685
Less
allowance
for loan
losses (81,499) (75,256) (63,361) (42,851) (27,703)
------- ------- ------- ------- -------
Net loans
held for
investment 1,796,626 1,874,334 1,952,989 1,988,402 1,973,982
Loans held
for sale 1,844 2,185 3,100 - -
----- ----- ----- --- ---
Total net
loans $1,798,470 $1,876,519 $1,956,089 $1,988,402 $1,973,982
========== ========== ========== ========== ==========
DEPOSITS AND
CUSTOMER
REPURCHASE
AGREEMENTS
NOW and
money
market $583,877 $524,622 $520,605 $565,948 $528,272
Savings 9,952 9,432 9,560 9,274 10,617
Eurodollar 113,936 103,303 100,249 88,025 101,723
Certificates of
deposits under
$100,000 53,942 56,657 59,835 76,559 97,017
Certificates
of deposits
$100,000 and
over 420,962 405,888 311,348 287,039 312,053
Reciprocal
CDARS 191,211 117,408 108,961 91,844 125,951
Brokered
deposits 35,367 65,972 113,800 66,611 122,093
------ ------ ------- ------ -------
Total
interest-
bearing
deposits 1,409,247 1,283,282 1,224,358 1,185,300 1,297,726
Noninterest-
bearing
demand
deposits 524,171 475,353 452,124 453,731 439,536
Customer
repurchase
agreements 125,662 118,958 129,195 133,478 140,264
------- ------- ------- ------- -------
Total
deposits and
customer
repurchase
agreements $2,059,080 $1,877,593 $1,805,677 $1,772,509 $1,877,526
========== ========== ========== ========== ==========
BALANCE
SHEET
AVERAGES
Average
Assets $2,518,393 $2,580,448 $2,658,588 $2,668,533 $2,548,811
Average
Loans 1,920,384 2,012,342 2,025,349 2,025,859 1,967,742
Average
Deposits 1,835,662 1,719,953 1,630,537 1,711,063 1,738,114
Average
Subordinated
Debentures 93,150 93,150 93,150 92,902 79,837
Average
Shareholders'
Equity 248,781 206,127 251,706 204,222 195,124
Average
Interest-
Earning
Assets 2,322,410 2,419,408 2,475,708 2,479,183 2,374,202
Average
Interest-
Bearing
Liabilities 1,741,117 1,894,779 1,947,119 1,998,161 1,900,532
CREDIT
QUALITY
Nonperforming
Loans
Loans 90
days or
more past
due and
accruing
interest $3,949 $35 $522 $1,292 $1,650
Nonaccrual
loans 71,785 67,394 43,121 39,786 22,254
------ ------ ------ ------ ------
Total
nonperforming
loans $75,734 $67,429 $43,643 $41,078 $23,904
OREO and
Repossessed
Assets 22,452 26,461 8,879 5,941 7,008
------ ------ ----- ----- -----
Total
nonperforming
assets $98,186 $93,890 $52,522 $47,019 $30,912
======= ======= ======= ======= =======
ASSET
QUALITY
MEASURES
Nonperforming
Assets to Total
Assets 3.87% 3.70% 2.00% 1.75% 1.19%
Nonperforming
Loans to Total
Loans 4.03% 3.45% 2.16% 2.02% 1.19%
Nonperforming
Loans and OREO
to Total Loans
and OREO 5.16% 4.75% 2.59% 2.31% 1.54%
Allowance for
Loan and
Credit Losses
to Total Loans
(excluding
loans held for
sale) 4.35% 3.87% 3.16% 2.12% 1.40%
Allowance for
Loan and
Credit Losses to
Nonperforming
Loans 107.86% 111.99% 146.12% 104.95% 116.98%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
For the three months ended
September 30,
--------------------------
2009
Interest Average
Average earned yield
(in thousands) balance or paid or cost
-------------- ------- ------- -------
Assets
Federal funds sold and other $14,259 $27 0.74%
Investment securities 462,761 5,741 4.96%
Loans 1,920,384 26,507 5.40%
Allowance for loan losses (74,994)
------- -------
Total interest-earning assets $2,322,410 $32,275 5.29%
Noninterest-earning assets
Cash and due from banks 43,201
Other 152,782
-------
Total assets $2,518,393
==========
Liabilities and Shareholders'
Equity
Deposits
NOW and money market $548,706 $1,516 1.10%
Savings 9,455 12 0.50%
Eurodollar 114,388 355 1.21%
Certificates of deposit
Brokered under $100,000 48,063 154 1.27%
Reciprocal 131,212 480 1.45%
Under $100,000 55,826 341 2.42%
$100,000 and over 418,675 2,224 2.11%
------- -----
Total interest-bearing deposits $1,326,325 $5,082 1.38%
Other borrowings
Securities sold under agreements to
repurchase 121,466 277 0.89%
Other short-term borrowings 200,176 127 0.25%
Long term-debt 93,150 1,029 4.32%
------ -----
Total interest-bearing liabilities $1,741,117 $6,515 1.37%
Noninterest-bearing demand
accounts 509,337
-------
Total deposits and interest-bearing
liabilities 2,250,454
Other noninterest-bearing
liabilities 17,922
------
Total liabilities 2,268,376
Total equity 250,017
-------
Total liabilities and equity $2,518,393
==========
Net interest income $25,760
=======
Net interest spread 3.92%
Net interest margin 4.40%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 133.39%
For the three months ended
September 30,
--------------------------
2008
Interest Average
Average earned yield
(in thousands) balance or paid or cost
-------------- ------- ------- -------
Assets
Federal funds sold and other $7,435 $55 2.89%
Investment securities 425,965 5,571 5.23%
Loans 1,967,742 30,632 6.09%
Allowance for loan losses (26,940)
------- -------
Total interest-earning assets $2,374,202 $36,258 5.93%
Noninterest-earning assets
Cash and due from banks 43,038
Other 131,571
-------
Total assets $2,548,811
==========
Liabilities and Shareholders'
Equity
Deposits
NOW and money market $610,777 $2,771 1.80%
Savings 10,358 29 1.11%
Eurodollar 120,725 572 1.85%
Certificates of deposit
Brokered under $100,000 102,624 780 3.02%
Reciprocal 49,050 266 2.16%
Under $100,000 90,120 782 3.45%
$100,000 and over 321,325 2,646 3.28%
------- -----
Total interest-bearing deposits $1,304,979 $7,846 2.30%
Other borrowings
Securities sold under agreements to
repurchase 151,276 608 1.57%
Other short-term borrowings 364,440 2,217 2.38%
Long term-debt 79,837 1,143 5.60%
------ -----
Total interest-bearing liabilities $1,900,532 $11,814 2.40%
Noninterest-bearing demand
accounts 433,135
-------
Total deposits and interest-bearing
liabilities 2,333,667
Other noninterest-bearing
liabilities 20,020
------
Total liabilities 2,353,687
Total equity 195,124
-------
Total liabilities and equity $2,548,811
==========
Net interest income $24,444
=======
Net interest spread 3.53%
Net interest margin 4.10%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 124.92%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
For the nine months ended
September 30,
-------------------------
2009
Interest Average
Average earned yield
(in thousands) balance or paid or cost
-------------- ------- ------- --------
Assets
Federal funds sold and other $7,828 $75 1.26%
Investment securities 474,434 18,160 5.10%
Loans 1,985,641 80,786 5.37%
Allowance for loan losses (62,622)
------- -------
Total interest earning-assets $2,405,281 $99,021 5.30%
Noninterest-earning assets
Cash and due from banks 38,075
Other 141,822
-------
Total assets $2,585,178
==========
Liabilities and Shareholders'
Equity
Deposits
NOW and money market $533,555 $4,513 1.13%
Savings 9,642 35 0.49%
Eurodollar 103,318 993 1.27%
Certificates of deposits
Brokered under $100,000 38,456 340 1.18%
Reciprocal 116,473 1,251 1.44%
Under $100,000 63,796 1,285 2.69%
$100,000 and over 394,274 6,606 2.24%
------- -----
Total interest-bearing deposits $1,259,514 $15,023 1.46%
Other borrowings
Securities sold under agreements to
repurchase 121,523 808 0.88%
Other short-term borrowings 386,063 866 0.30%
Long-term debt 93,150 3,388 4.80%
------ -----
Total interest-bearing liabilities $1,860,250 $20,085 1.35%
Noninterest-bearing demand
accounts 469,953
-------
Total deposits and interest-bearing
liabilities 2,330,203
Other noninterest-bearing
liabilities 17,942
------
Total liabilities and preferred
securities 2,348,145
Total equity 237,033
-------
Total liabilities and equity $2,585,178
==========
Net interest income $78,936
=======
Net interest spread 3.95%
Net interest margin 4.39%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 129.30%
For the nine months ended
September 30,
-------------------------
2008
Interest Average
Average earned yield
(in thousands) balance or paid or cost
-------------- ------- ------- --------
Assets
Federal funds sold and other $8,500 $221 3.42%
Investment securities 411,181 16,044 5.20%
Loans 1,917,487 93,340 6.40%
Allowance for loan losses (24,080)
------- --------
Total interest earning-assets $2,313,088 $109,605 6.17%
Noninterest-earning assets
Cash and due from banks 42,450
Other 127,819
-------
Total assets $2,483,357
==========
Liabilities and Shareholders'
Equity
Deposits
NOW and money market $654,270 $10,368 2.12%
Savings 10,854 112 1.38%
Eurodollar 107,295 1,737 2.13%
Certificates of deposits
Brokered under $100,000 101,964 3,124 4.08%
Reciprocal 26,098 533 2.73%
Under $100,000 96,331 2,907 4.03%
$100,000 and over 326,481 9,217 3.77%
------- -----
Total interest-bearing deposits $1,323,293 $27,998 2.77%
Other borrowings
Securities sold under agreements to
repurchase 152,096 2,230 1.93%
Other short-term borrowings 288,662 5,789 2.63%
Long-term debt 74,742 3,359 5.90%
------ -----
Total interest-bearing liabilities $1,838,793 $39,376 2.81%
Noninterest-bearing demand
accounts 431,382
-------
Total deposits and interest-bearing
liabilities 2,270,175
Other noninterest-bearing
liabilities 18,292
------
Total liabilities and preferred
securities 2,288,467
Total equity 194,890
-------
Total liabilities and equity $2,483,357
==========
Net interest income $70,229
=======
Net interest spread 3.37%
Net interest margin 4.06%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 125.79%
CoBiz Financial Inc.
September 30, 2009
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
-------------------------------------------
-----------------------------------------------------------------------
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 reflects adjustments to net income and earnings per
share, as reported, to exclude the effects of goodwill impairment.
-----------------------------------------------------------------------
Three months ended
September 30,
-------------
2009
----
Net (loss) as reported - GAAP $(15,743)
Effect of excluding:
Goodwill impairment 12,463
Provision (benefit) for income taxes (3,457)
--------------------------------------- -------
Net loss, excluding goodwill - Non-GAAP $(6,737)
======================================= =======
Earnings (loss) per common share - GAAP $(0.50)
Effect of excluding goodwill impairment charge 0.27
---------------------------------------------- ----
Earnings (loss) per common share, excluding
goodwill - Non-GAAP $(0.23)
=========================================== ======
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
--------- ---------
September June
30, 2009 30, 2009
--------- ---------
Total shareholders' equity as reported - GAAP $234,080 $193,132
Goodwill and intangible assets (5,078) (17,708)
-------------------------- -------- --------
Tangible equity - Non-GAAP $229,002 $175,424
Preferred stock (61,742) (61,614)
--------------------------------- -------- --------
Tangible common equity - Non-GAAP $167,260 $113,810
======== ========
Total assets as reported - GAAP $2,537,665 $2,540,833
Goodwill and intangible assets (5,078) (17,708)
-------------------------------- ---------- ----------
Total tangible assets - Non-GAAP $2,532,587 $2,523,125
========== ==========
Shareholders' equity to assets as reported -
GAAP 9.22% 7.60%
Tangible equity to tangible assets - Non-GAAP 9.04% 6.95%
Tangible common equity to tangible assets -
Non-GAAP 6.60% 4.51%
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