COBIZ FINANCIAL INC 
By DENVER, Jan. 28 /PRNewswire-FirstCall/ -- CoBiz Financial Inc. (Nasdaq: COBZ), a financial services company with $2.5 billion in assets, announced a net loss of $4.5 million for the fourth quarter of 2009, as compared to a net loss of $8.6 million for the fourth quarter of 2008. The net loss available to common shareholders was $0.15 per diluted common share versus a net loss of $0.38 per diluted common share in the prior year quarter.
For the year ended December 31, 2009, the net loss from core operations was $41.8 million, or $1.56 per diluted common share, excluding noncash charges from goodwill impairment (see the accompanying reconciliation of Non-GAAP Measures to GAAP). Including these charges, the net loss was $83.0 million, or $2.98 per diluted share. For the year ended December 31, 2008, net income was $1.3 million or $0.05 per diluted common share.
Financial Performance - Fourth Quarter 2009
-- The net loss available to common shareholders for the fourth quarter of
2009 was $0.15 per diluted common share, a 35% improvement from the net
loss from core operations (excluding goodwill charges) of $0.23 per
diluted common share in the third quarter of 2009 (linked-quarter). (See
the accompanying reconciliation of Non-GAAP Measures to GAAP). The
current quarter results were also a 47% improvement over the net loss
reported in the fourth quarter of 2008.
-- Provision for loan and credit losses (Provision) decreased for the
second consecutive quarter. The Provision for the fourth quarter
decreased by $3.7 million from the third quarter of 2009 to $16.5
million from $20.2 million. The fourth quarter 2009 Provision was $6.8
million less than the fourth quarter of 2008 Provision of $23.4 million.
-- During the fourth quarter, the Company charged-off, net of recoveries,
$22.9 million. The resulting allowance for loan and credit losses
(Allowance) was 4.23% of total loans. For the full year, net charge-offs
were $73.5 million. For the year, the loan and credit loss provision was
$105.7 million or 143.7% of year-to-date net charge-offs.
-- Nonperforming assets ended the quarter at $104.5 million, or 4.24% of
total assets, up from $98.2 million or 3.87% of total assets at
September 30, 2009.
-- The net interest margin decreased slightly to 4.36% for the fourth
quarter of 2009, from 4.40% in the third quarter of 2009. The net
interest margin increased 21 basis points (0.21%) from 4.15% in the
fourth quarter of 2008.
-- Loans outstanding as of December 31, 2009, decreased by $97.3 million on
a linked-quarter basis to $1.78 billion. As a result, net interest
income decreased by $0.6 million, from the third quarter 2009. However,
for the full year, net interest income increased by $8.0 million, or
8.4% to $103.4 million over 2008 due to a strong net interest margin.
-- Deposits and customer repurchase agreements (Customer Repo's) increased
by $49.5 million on a linked-quarter basis. Deposits and Customer Repo's
excluding wholesale brokered sources (Customer Funding) increased by
$74.6 million on a linked-quarter basis, or 14.6% annualized.
Year-over-year, Customer Funding increased by $392.4 million or 23.0%.
-- Total noninterest-bearing demand accounts represented 27.6% of total
deposits as of December 31, 2009, compared to 27.1% as of the prior
quarter.
-- The Company recognized a $1.6 million, pre-tax loss on securities, other
assets and OREO as compared to $0.9 million in the third quarter of
2009. For the full year, the Company recognized $5.6 million of losses
on securities, other assets and OREO.
"2009 was a tough year and one I wasn't sorry to see come to an end," said Chairman and CEO Steve Bangert. "However, I think it's important to take what we learned over the past year and make our Company stronger. Any company can do well in good times; it is a company's response to difficulty that differentiates it from its competitors.
"I am very proud of how our management team and employees responded to this demanding environment. During the past year, we addressed some of the larger challenges facing our company, clearing the way for positive momentum in the coming year. Within the past 18 months, we successfully raised capital on three separate occasions. We faced our credit issues head-on, provisioning $105.7 million and building our Allowance coverage to one of the highest in our peer group. We made significant investments in a newly formed Special Assets group, and have decreased our Land and Construction concentrations. More importantly, at a time when earnings were under extreme pressure, we continued to invest in the franchise by recruiting three key positions: Director of Wealth Management, as well as Colorado and Arizona Bank Market Presidents, which will allow us to focus on growing market share.
"While 2010 will not be without challenges, I am hopeful for the promises it holds and the potential opportunities. We exit 2009 with a stronger capital base, record liquidity and a deeper management team. As a result of our challenges, we have become more efficient, disciplined and focused, and are well prepared to continue building the franchise."
Loans
Total loans ended the period just over $1.78 billion, a decrease of $97.3 million from September 30, 2009. Although we continue to actively market new relationships, we have seen a significant decrease in quality loan demand in our markets. Total credit extended this quarter increased from the prior quarter to $154.8 million, from $126.6 million. However, credit extensions were offset by a higher level of maturities and pay-downs, including gross charge-offs of $23.7 million during the fourth quarter.
Year-to-date, loans have decreased by $248.6 million, or 12.2%. Credit extended in 2009 totaled $624.6 million, including $237.8 million of loans to new credit relationships. Loan advances during the year were offset by greater levels of loan maturities and pay-downs, including gross charge-offs of $76.6 million for the year.
Overall, Commercial and Industrial (C&I) loans comprised $559.6 million, or 31.4% of the total portfolio as of December 31, 2009 compared to $649.0 million, or 31.9%, a year earlier. Commercial Real Estate accounted for 52.5% of total loans, with owner/occupied properties comprising a significant portion of this category. Land acquisition and development loans (A&D) decreased to $152.7 million or 8.6% of the total portfolio at the end of fourth quarter from $221.9 million, or 10.9%, a year ago. Construction loans, excluding A&D, accounted for $144.5 million or 8.1% of the portfolio at December 31, 2009, as compared to $192.1 million, or 9.5%, a year ago.
Investment Securities
The Company had investment securities with a carrying value totaling $529.5 million at December 31, 2009, an increase of $45.6 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 $386.4 million and a market value of $400.8 million at quarter end. The remaining MBS are non-agency, private-label securities with a net book value of $5.3 million and a market value of $2.4 million. At December 31, 2009, the Company had $56.7 million in agency debentures, of which $31.7 million were purchased during the fourth quarter. The fair value of the agency securities was $56.5 million at year-end. Investments also include $35.0 million of single-issuer trust preferred securities backed by 13 different financial institutions and $31.7 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. The fair value of these securities was $67.4 million at December 31, 2009. The portfolio does not contain any collateralized debt obligations (CDOs) or securities backed by sub-prime mortgage loans.
The Company recognized a $0.1 million Other Than Temporary Impairment (OTTI) valuation loss during the fourth quarter of 2009. The valuation loss related to one private label mortgage-backed security (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 $336.1 million from the same period in 2008, or 19.0%. On a linked-quarter basis, Deposit and Customer Repo balances increased by $49.5 million. Customer Funding (excluding brokered deposits from non-relationship sources) increased $74.6 million on a linked-quarter basis and $392.4 million from the prior year period. 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 making considerable progress in building market share by attracting and building depository relationships.
Total noninterest-bearing demand accounts represented 27.6% of total deposits as of December 31, 2009, relatively level with the prior-year period.
The decrease in loan demand, coupled with strong deposit generation has contributed to a better liquidity position. As of December 31, 2009, total loans to Customer Funding decreased to 85.0% from 119.1% at the prior year end.
Allowance for Loan and Credit Losses and Credit Quality
Nonperforming assets (NPAs) increased by $6.3 million during the quarter to $104.5 million at December 31, 2009. Total nonperforming loans (NPLs) increased to $79.2 million as of December 31, 2009, from $75.7 million at September 30, 2009. NPLs to total loans increased to 4.44% at the end of the current quarter, from 4.03% as of the end of the prior linked-quarter. Other real estate owned acquired through foreclosure, and other foreclosed assets (OREO) was $25.3 million at year end 2009.
Of the total, 53% of NPAs, or $55.0 million, are within the Colorado portfolio and 47%, or $49.5 million, are in Arizona. Land A&D and Construction loans continue to exhibit the greatest weakness with 22.3% and 6.7%, respectively, of total loans in their category on nonaccrual status. Nonaccruing C&I and Real Estate loans remained manageable at 2.4% and 2.3%, respectively. Of the $25.3 million of OREO, $15.2 million, or 60%, was located in Colorado and $10.1 million, or 40%, was located in Arizona.
The fourth quarter loan and credit loss provision of $16.5 million represents a decrease of 18.1% or $3.7 million from the third quarter and 29.5% or $6.9 million from the fourth quarter of 2008. The Company charged-off (net of recoveries) $22.9 million in loans during the fourth quarter of 2009 and $73.5 million for the full year of 2009. Overall, the Company provided $32.2 million more in provision for loan and credit losses than it has charged-off during the year. As a result, the Allowance increased to $75.3 million as of December 31, 2009, from $43.1 million as of December 31, 2008. The Company's Allowance to total loans held for investment increased to 4.23% as of December 31, 2009, from 2.12% as of December 31, 2008. The Allowance was over 97% of NPLs at December 31, 2009.
While the Land A&D portfolio represents only 8.6% of total loans, the Company estimates that approximately 61% of its current year Provision, and 59% of its gross charge-offs in 2009 related to Land A&D.
Shareholders' Equity and Regulatory Capital
Over the last 18 months, the Company successfully raised capital on three separate occasions:
-- In the third quarter of 2008, the Company raised $20.4 million through a
private offering of subordinated debt that qualified as Tier 2 capital;
-- In the fourth quarter of 2008, the Company qualified for a $64.5 million
investment from the U.S. Treasury Department as part of the Capital
Purchase Program (CPP) under the Emergency Economic Stabilization Act of
2008; and
-- During the third quarter of 2009, the Company completed a successful
common equity placement of $55.8 million, net of expenses.
As of December 31, 2009, total Shareholders' Equity was $230.5 million. The Company's total tangible shareholders' equity was $225.5 million. The tangible shareholders' equity to tangible assets ratio was 9.2% and the tangible common equity ratio was 6.7% at the end of the fourth quarter of 2009 as compared to 7.6% and 5.3%, respectively, at December 31, 2008 (see the accompanying Reconciliation of Non-GAAP Measures to GAAP).
As of December 31, 2009, the Company was significantly in excess of what is considered "Well-Capitalized" with an expected Tier 1 Capital ratio of 13.81%, and Total Capital ratio of 16.13%. 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 $49.4 million of Allowance was disallowed at December 31, 2009, under the risk-based capital rules, which equated to 2.44% of risk-weighted assets.
The Company is planning to file a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission to register up to $100 million in securities. The Company anticipates that the registration statement would be filed within the next several weeks. 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.
This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any securities. It is the Company's intention to file a shelf registration statement, however there can be no assurance that the Company will actually make such a filing or that the Securities and Exchange Commission will declare the registration statement effective.
Net Interest Income and Margin
Net interest income on a tax equivalent basis for the fourth quarter of 2009 decreased by $0.7 million, or 2.6%, to $25.2 million from the same period in 2008. Net interest income on a tax equivalent basis for the third quarter of 2009 was $25.8 million. The net interest margin (NIM) expanded by 21 basis points to 4.36% as compared to the fourth quarter of 2008 and remained relatively consistent with the 4.40% NIM reported in the third quarter of 2009. Increased levels of nonaccrual loans continue to have an adverse effect on our reported NIM.
Average earning assets decreased by $32.8 million on a linked-quarter basis as a result of $92.0 million decrease in loans, net of an increase in the average allowance for loan losses of $8.4 million. Investment securities increased $45.1 million on linked-quarter basis. Customer funding increased $175.4 million on a linked-quarter basis and $352.4 million from the fourth quarter of 2008. Yields on average earning assets decreased by 14 basis points on a linked quarterly basis and 49 basis points from the fourth quarter of 2008 while rates paid on average interest-bearing liabilities increased nominally by 4 basis points on a linked-quarterly basis and decreased by 60 basis points from the fourth quarter of 2008.
Noninterest Income
Noninterest income decreased by $0.5 million on a linked-quarter basis to $6.5 million for the fourth quarter of 2009. Noninterest income was $7.1 million in the fourth quarter of 2008. As a percentage of total operating revenue, noninterest income was 20.6% for the fourth quarter of 2009 vs. 21.6% for the prior-year quarter.
The noninterest income decline of $0.5 million in the fourth quarter is attributable to a decrease in investment banking and insurance income. In general, all of our business segments continue to be negatively impacted by market conditions in 2009. Although our Investment Banking segment continues to have a diversified backlog of engaged transactions, restricted credit markets and substantial uncertainty over sellers' future performance and cash-flow, had an adverse impact on the number of deals closed as well as on the number of deals actively engaged during 2009. Our Insurance Segment's revenues were adversely affected by a continued soft premium market for property and casualty insurance. Similarly, the decline in the broader equity market negatively impacted Investment Advisory earnings.
Operating Expenses
Noninterest expenses for the fourth quarter of 2009 were $23.8 million as compared to $36.0 million for the third quarter of 2009. The third quarter of 2009 included a noncash goodwill impairment charge of $12.5 million. Noninterest expenses in the fourth quarter of 2008 were $23.6 million.
Salaries and employee benefit expenses decreased by $0.3 million on a linked-quarter basis to $13.0 million. During 2009 the Company was able to attract a number of talented employees and costs have risen accordingly, increasing in fourth quarter by $1.0 million as compared to $12.0 million in the prior-year quarter. Overall, the company's full-time equivalents increased by 9.4 to 544.7 from December 31, 2008. The majority of the new hires came in the third and fourth quarters of 2009.
Other operating expenses were stable on a linked-quarter basis showing a slight decrease of $0.2 million during the fourth quarter of 2009, largely the result of lower loan workout costs relative to the third quarter costs.
Net loss on securities, other assets and OREO increased to $1.6 million as compared to third quarter losses of $0.9 million and was primarily attributed to sales and valuation activity in the OREO portfolio.
Excluding the third quarter noncash goodwill impairment charge, the Company's fourth quarter expenses increased by $0.3 million on a linked-quarter basis. The Company's efficiency ratio for the year ended December 31, 2009 was 68.3% as compared to 65.1% for 2008, an unfavorable change relating to higher loan workout costs and significant increases in FDIC insurance premiums offset by cost-cutting initiatives and decreases in incentive compensation across all levels of the organization. (See the accompanying reconciliation of Non-GAAP Measures to GAAP).
Earnings Conference Call
In conjunction with this release, you are invited to listen to the Company's conference call on Friday, January 29, 2010, at 9:00 am MST with Steve Bangert, CoBiz chairman and CEO. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=65239 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.
December 31, 2009
(unaudited)
Three months ended Year ended
December 31, December 31,
------------ ------------
(in thousands, except
per share amounts) 2009 2008 2009 2008
--------------------- ---- ---- ---- ----
INCOME STATEMENT DATA
Interest income $30,973 $35,820 $129,450 $144,908
Interest expense 5,981 10,181 26,066 49,557
----- ------ ------ ------
NET INTEREST INCOME
BEFORE PROVISION 24,992 25,639 103,384 95,351
Provision for loan
losses 16,557 23,444 105,815 39,796
------ ------ ------- ------
NET INTEREST INCOME
(LOSS) AFTER PROVISION 8,435 2,195 (2,431) 55,555
Noninterest income 6,492 7,055 27,627 35,778
Noninterest expense 23,843 23,632 95,250 89,717
Impairment of goodwill - - 46,160 -
--- --- ------ ---
INCOME (LOSS) BEFORE
INCOME TAXES (8,916) (14,382) (116,214) 1,616
Benefit for income taxes (4,272) (5,803) (32,859) (91)
------ ------ ------- ---
NET INCOME (LOSS) BEFORE
NONCONTROLLING INTEREST (4,644) (8,579) (83,355) 1,707
Net (income) loss
attributable to
noncontrolling interest 106 (34) 314 (379)
--- --- --- ----
NET INCOME (LOSS) $(4,538) $(8,613) $(83,041) $1,328
======= ======= ======== ======
Preferred stock
dividends (936) (124) (3,733) (124)
---- ---- ------ ----
NET INCOME (LOSS)
AVAILABLE TO COMMON
SHAREHOLDERS $(5,474) $(8,737) $(86,774) $1,204
======= ======= ======== ======
EARNINGS (LOSS) PER
COMMON SHARE
BASIC $(0.15) $(0.38) $(2.98) $0.05
------ ------ ------ -----
DILUTED $(0.15) $(0.38) $(2.98) $0.05
------ ------ ------ -----
WEIGHTED AVERAGE SHARES
OUTSTANDING (in
thousands)
BASIC 36,440 23,144 29,146 23,082
------ ------ ------ ------
DILUTED 36,440 23,144 29,146 23,255
------ ------ ------ ------
EQUITY MEASURES
Common Shares Outstanding at Period
End (in thousands) 36,724 23,375
------ ------
Book Value Per Common Share $4.59 $8.16
Tangible Book Value Per Common Share $4.46 $5.94
Tangible Common Equity to
Tangible Assets 6.65% 5.27%
Tangible Equity to Tangible Assets 9.16% 7.61%
Tier 1 Capital Ratio (1) 13.81% 12.29%
Total Risk Based Capital Ratio (1) 16.13% 14.50%
(1) Ratios for the current period are preliminary and are subject to
change upon completion of the Company's regulatory filings.
PERIOD END BALANCES
Total Assets $2,466,015 $2,684,275
Loans 1,780,866 2,031,253
Loans Held For Sale 1,820 -
Goodwill and Intangible Assets 4,910 51,864
Deposits 1,968,833 1,639,031
Subordinated Debentures 93,150 93,150
Common Shareholders' Equity 168,579 190,635
Total Shareholders' Equity 230,451 252,099
Interest-Earning Assets 2,270,381 2,498,484
Interest-Bearing Liabilities 1,659,248 1,954,991
BALANCE SHEET AVERAGES
Average Assets $2,556,706 $2,529,901
Average Loans 1,948,120 1,944,728
Average Deposits 1,789,127 1,743,712
Average Subordinated Debentures 93,150 79,306
Average Shareholders' Equity 235,722 197,235
Average Interest-Earning Assets 2,376,128 2,354,838
Average Interest-Bearing Liabilities 1,814,763 1,878,852
CoBiz Financial Inc.
December 31, 2009
(unaudited)
Three months ended Year ended
December 31, December 31,
------------ ------------
(in thousands) 2009 2008 2009 2008
-------------- ---- ---- ---- ----
PROFITABILITY MEASURES
Net Interest Margin 4.36% 4.15% 4.38% 4.08%
Efficiency Ratio 70.34% 61.84% 68.27% 65.10%
Return on Average
Assets (0.73)% (1.28)% (3.25)% 0.05%
Return on Average
Shareholders' Equity (7.67)% (16.78)% (35.23)% 0.67%
Noninterest Income
as a Percentage of
Operating Revenues 20.62% 21.58% 21.09% 27.28%
CREDIT QUALITY
Nonperforming Loans
Loans 90 Days or More
Past Due and
Accruing Interest $509 $1,292
Nonaccrual Loans 78,689 39,786
------ ------
Total Nonperforming
Loans $79,198 $41,078
OREO & Repossessed Assets 25,318 5,941
------ -----
Total Nonperforming
Assets $104,516 $47,019
======== =======
Charge-offs $(76,577) $(17,144)
Recoveries 3,028 156
----- ---
Net Charge-offs $(73,549) $(16,988)
======== ========
ASSET QUALITY MEASURES
Nonperforming Assets to Total Assets 4.24% 1.75%
Nonperforming Loans to Total Loans 4.44% 2.02%
Nonperforming Loans and OREO to Total Loans
and OREO 5.78% 2.31%
Allowance for Loan and Credit Losses to
Total Loans
(excluding loans held for sale) 4.23% 2.12%
Allowance for Loan and Credit Losses to
Nonperforming Loans
(excluding loans held for sale) 97.28% 104.95%
Total NPAs
NONPERFORMING ASSETS in as a %
BY MARKET Colorado Arizona Total Category of Loans
-------------------- -------- ------- ----- -------- --------
Commercial $8,658 $4,537 $13,195 $559,612 2.36%
Term Real Estate 9,000 9,832 18,832 832,123 2.26%
Land Acquisition &
Development 17,358 16,675 34,033 152,667 22.29%
Construction 3,900 5,732 9,632 144,455 6.67%
Consumer 905 252 1,157 76,103 1.52%
Other Loans - 2,349 2,349 17,726 13.25%
OREO & Repossessed
Assets 15,169 10,149 25,318 25,318 -
------ ------ ------ ------ ---
NPAs $54,990 $49,526 $104,516 $1,808,004 5.78%
======= ======= ======== ========== ====
Total Loans $1,156,522 $626,164 $1,782,686
Total Loans
and OREO 1,171,691 636,313 1,808,004
Nonperforming Loans
to Loans 3.44% 6.29% 4.44%
Nonperforming Loans
and OREO to Total
Loans and OREO 4.69% 7.78% 5.78%
CoBiz Financial Inc.
December 31, 2009
(unaudited)
Investment Investment
(in thousands, except Commercial Banking Advisory
per share amounts) Banking Services and Trust
--------------------- ------- -------- ---------
Net interest income
Quarter ended
December 31, 2009 $25,670 $1 $(7)
Quarter ended
September 30, 2009 26,404 2 (6)
Annualized
quarterly growth (11.0)% (198.4)% (66.1)%
Quarter ended
December 31, 2008 $27,177 $8 $(3)
Annual growth (5.5)% (87.5)% (133.3)%
Noninterest income
Quarter ended
December 31, 2009 $2,542 $175 $1,362
Quarter ended
September 30, 2009 2,311 476 1,292
Annualized
quarterly growth 39.7% (250.9)% 21.5%
Quarter ended
December 31, 2008 $1,475 $504 $1,413
Annual growth 72.3% (65.3)% (3.6)%
Net income (loss)
Quarter ended
December 31, 2009 $(1,512) $(479) $(200)
Quarter ended
September 30, 2009 (4,587) (2,408) (2,780)
Annualized
quarterly growth 266.0% 317.8% 368.2%
Quarter ended
December 31, 2008 $(6,722) $(417) $38
Annual growth 77.5% (14.9)% (626.3)%
Earnings per share (diluted)
Quarter ended
December 31, 2009 $(0.04) $(0.01) $(0.01)
Quarter ended
September 30, 2009 (0.14) (0.07) (0.08)
Annualized
quarterly growth 283.4% 340.1% 347.1%
Quarter ended
December 31, 2008 $(0.29) $(0.02) $-
Annual growth 86.2% 50.0% (100.0)%
Total loans
At December 31, 2009
At September
30, 2009
Annualized
quarterly growth
At December 31, 2008
Annual growth
Total deposits and customer
repurchase agreements
At December 31, 2009
At September
30, 2009
Annualized
quarterly growth
At December 31, 2008
Annual growth
Corporate
Support
(in thousands, except and
per share amounts) Insurance Other Consolidated
--------------------- --------- ----- ------------
Net interest income
Quarter ended
December 31, 2009 $(3) $(669) $24,992
Quarter ended
September 30, 2009 (4) (809) 25,587
Annualized
quarterly growth 99.2% 68.7% (9.2)%
Quarter ended
December 31, 2008 $(4) $(1,539) $25,639
Annual growth 25.0% 56.5% (2.5)%
Noninterest income
Quarter ended
December 31, 2009 $2,580 $(167) $6,492
Quarter ended
September 30, 2009 3,019 (119) 6,979
Annualized
quarterly growth (57.7)% (160.0)% (27.7)%
Quarter ended
December 31, 2008 $3,594 $69 $7,055
Annual growth (28.2)% (342.0)% (8.0)%
Net income (loss)
Quarter ended
December 31, 2009 $(213) $(2,134) $(4,538)
Quarter ended
September 30, 2009 (4,465) (1,503) (15,743)
Annualized
quarterly growth 377.8% (166.6)% 282.4%
Quarter ended
December 31, 2008 $69 $(1,581) $(8,613)
Annual growth (408.7)% (35.0)% 47.3%
Earnings per share (diluted)
Quarter ended
December 31, 2009 $(0.01) $(0.08) $(0.15)
Quarter ended
September 30, 2009 (0.13) (0.08) (0.50)
Annualized
quarterly growth 366.2% .0% 277.7%
Quarter ended
December 31, 2008 $- $(0.07) $(0.38)
Annual growth (100.0)% (14.3)% 60.5%
Total loans
At December 31, 2009 $1,782,686
At September
30, 2009 1,879,969
Annualized
quarterly growth (20.5)%
At December 31, 2008 $2,031,253
Annual growth (12.2)%
Total deposits and customer
repurchase agreements
At December 31, 2009 $2,108,627
At September
30, 2009 2,059,080
Annualized
quarterly growth 9.5%
At December 31, 2008 $1,772,509
Annual growth 19.0%
CoBiz Financial Inc.
December 31, 2009
(unaudited)
Three months ended
------------------
December September June March December
31, 30, 30, 31, 31,
(in thousands) 2009 2009 2009 2009 2008
-------------- ---- ---- ---- ---- ----
COMMERCIAL BANKING
------------------
Income Statement
Total interest
income $30,685 $31,901 $32,820 $33,508 $35,780
Total interest
expense 5,015 5,497 5,490 5,699 8,603
----- ----- ----- ----- -----
Net interest income 25,670 26,404 27,330 27,809 27,177
Provision for loan
losses 14,593 19,838 35,249 33,747 23,444
------ ------ ------ ------ ------
Net interest
income (loss)
after provision 11,077 6,566 (7,919) (5,938) 3,733
Noninterest income 2,542 2,311 2,773 1,929 1,475
Noninterest expense 7,837 8,231 10,323 8,142 9,184
Impairment of
goodwill - - - 15,348 -
--- --- --- ------ ---
Income (loss) before
income taxes 5,782 646 (15,469) (27,499) (3,976)
Provision (benefit)
for income taxes 1,513 14 (4,768) (4,813) (1,994)
----- --- ------ ------ ------
Net income (loss) before
management fees and
overhead allocations $4,269 $632 $(10,701) $(22,686) $(1,982)
------ ---- -------- -------- -------
Management fees and
overhead allocations,
net of tax 5,781 5,219 3,107 5,105 4,740
----- ----- ----- ----- -----
Net income (loss) $(1,512) $(4,587) $(13,808) $(27,791) $(6,722)
======= ======= ======== ======== =======
INVESTMENT BANKING
------------------
Income Statement
Total interest
income $1 $2 $1 $3 $8
Total interest
expense - - - - -
--- --- --- --- ---
Net interest income 1 2 1 3 8
Provision for loan
losses - - - - -
--- --- --- --- ---
Net interest
income (loss)
after provision 1 2 1 3 8
Noninterest income 175 476 399 104 504
Noninterest expense 999 1,154 955 916 1,142
Impairment of
goodwill - 3,049 - 2,230 -
--- ----- --- ----- ---
Income (loss) before
income taxes (823) (3,725) (555) (3,039) (630)
Provision (benefit)
for income taxes (377) (1,347) (209) (1,755) (247)
---- ------ ---- ------ ----
Net income (loss) before
management fees and
overhead allocations $(446) $(2,378) $(346) $(1,284) $(383)
----- ------- ----- ------- -----
Management fees and
overhead allocations,
net of tax 33 30 30 38 34
--- --- --- --- ---
Net income (loss) $(479) $(2,408) $(376) $(1,322) $(417)
===== ======= ===== ======= =====
INVESTMENT ADVISORY
AND TRUST
-------------------
Income Statement
Total interest
income $- $- $- $- $-
Total interest
expense 7 6 3 - 3
--- --- --- --- ---
Net interest income (7) (6) (3) - (3)
Provision for loan
losses - - - - -
--- --- --- --- ---
Net interest
income (loss)
after provision (7) (6) (3) - (3)
Noninterest income 1,362 1,292 1,308 1,224 1,413
Noninterest expense 1,563 1,336 1,698 1,655 1,255
Impairment of
goodwill - 3,437 - 3,081 -
--- ----- --- ----- ---
Income (loss) before
income taxes (208) (3,487) (393) (3,512) 155
Provision (benefit)
for income taxes (107) (794) (152) (153) 51
---- ---- ---- ---- ---
Net income (loss) before
management fees and
overhead allocations $(101) $(2,693) $(241) $(3,359) $104
----- ------- ----- ------- ----
Management fees and
overhead allocations,
net of tax 99 87 84 111 66
--- --- --- --- ---
Net income (loss) $(200) $(2,780) $(325) $(3,470) $38
===== ======= ===== ======= ===
INSURANCE
---------
Income Statement
Total interest
income $- $- $- $- $-
Total interest
expense 3 4 4 2 4
--- --- --- --- ---
Net interest income (3) (4) (4) (2) (4)
Provision for loan
losses - - - - -
--- --- --- --- ---
Net interest
income (loss)
after provision (3) (4) (4) (2) (4)
Noninterest income 2,580 3,019 2,795 3,384 3,594
Noninterest expense 2,748 2,961 2,966 3,474 3,353
Impairment of
goodwill - 5,977 - 13,038 -
--- ----- --- ------ ---
Income (loss) before
income taxes (171) (5,923) (175) (13,130) 237
Provision (benefit)
for income taxes (58) (1,548) (63) (24) 85
--- ------ --- --- ---
Net income (loss) before
management fees and
overhead allocations $(113) $(4,375) $(112) $(13,106) $152
----- ------- ----- -------- ----
Management fees and
overhead allocations,
net of tax 100 90 90 114 83
--- --- --- --- ---
Net income (loss) $(213) $(4,465) $(202) $(13,220) $69
===== ======= ===== ======== ===
CORPORATE SUPPORT
AND OTHER
-----------------
Income Statement
Total interest
income $287 $199 $20 $23 $32
Total interest
expense 956 1,008 1,118 1,254 1,571
--- ----- ----- ----- -----
Net interest income (669) (809) (1,098) (1,231) (1,539)
Provision for loan
losses 1,964 424 - - -
----- --- --- --- ---
Net interest
income (loss)
after provision (2,633) (1,233) (1,098) (1,231) (1,539)
Noninterest income (167) (119) 760 (520) 69
Noninterest expense 10,696 9,821 8,331 9,444 8,698
------ ----- ----- ----- -----
Income (loss) before
income taxes (13,496) (11,173) (8,669) (11,195) (10,168)
Provision (benefit)
for income taxes (5,243) (4,244) (4,548) (4,183) (3,698)
------ ------ ------ ------ ------
Net income (loss) before
management fees and
overhead
allocations $(8,253) $(6,929) $(4,121) $(7,012) $(6,470)
------- ------- ------- ------- -------
Management fees and
overhead allocations,
net of tax (6,013) (5,426) (3,311) (5,368) (4,923)
------ ------ ------ ------ ------
Net income (loss) $(2,240) $(1,503) $(810) $(1,644) $(1,547)
Net (income) loss
attributable to
noncontrolling
interest 106 - (290) 498 (34)
--- --- ---- --- ---
Net income (loss)
attributable to
CoBiz Financial $(2,134) $(1,503) $(1,100) $(1,146) $(1,581)
======= ======= ======= ======= =======
CONSOLIDATED
------------
Income Statement
Total interest
income $30,973 $32,102 $32,841 $33,534 $35,820
Total interest
expense 5,981 6,515 6,615 6,955 10,181
----- ----- ----- ----- ------
Net interest income 24,992 25,587 26,226 26,579 25,639
Provision for loan
losses 16,557 20,262 35,249 33,747 23,444
------ ------ ------ ------ ------
Net interest
income (loss)
after provision 8,435 5,325 (9,023) (7,168) 2,195
Noninterest income 6,492 6,979 8,035 6,121 7,055
Noninterest expense 23,843 23,503 24,273 23,631 23,632
Impairment of
goodwill - 12,463 - 33,697 -
--- ------ --- ------ ---
Income (loss) before
income taxes (8,916) (23,662) (25,261) (58,375) (14,382)
Provision (benefit)
for income taxes (4,272) (7,919) (9,740) (10,928) (5,803)
------ ------ ------ ------- ------
Net income (loss) before
management fees and
overhead
allocations $(4,644) $(15,743) $(15,521) $(47,447) $(8,579)
------- -------- -------- -------- -------
Management fees and
overhead allocations,
net of tax - - - - -
--- --- --- --- ---
Net income (loss) $(4,644) $(15,743) $(15,521) $(47,447) $(8,579)
Net (income) loss
attributable to
