Form 8-K COBIZ FINANCIAL INC For: Jan 22

January 22, 2015 5:11 PM EST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, �D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):January 22, 2015

CoBiz Financial Inc.


(Exact name of registrant as specified in its charter)

Commission file number 001-15955

Colorado

�������

84-0826324



(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

821 17th Street

Denver, Colorado

80202



(Address of principal executive offices)

(Zip Code)

(303) 312 - 3400


(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02. �Results of Operations and Financial Condition.

On January22, 2015, CoBiz Financial Inc. issued a press release announcing its earnings for the fourth quarter of 2014, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.�

The information in this report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01. Other Events

The Board of Directors of CoBiz Financial Inc. declared a $0.04 cash dividend on its common stock for the first quarter of 2015.��This dividend will be paid on February9, 2015, to shareholders of record on February2, 2015.

Item 9.01. Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits

����������������������������� �99.1���� Press release issued on January22, 2015

2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

CoBiz Financial Inc.

(Registrant)

Date: January 22, 2015

/s/ Lyne Andrich

Lyne Andrich

EVP & CFO

3


EXHIBIT INDEX

anuary

Exhibit Number

����

Description

99.1

Press release issued on January 22, 2015

4


Exhibit 99.1

CoBiz Financial Announces Fourth�Quarter�2014 Results

Denver -- CoBiz Financial Inc. (“Company”) (NASDAQ: COBZ), a financial services company with $3.1 billion in assets, announced net income available to common shareholders of $6.8 million for the fourth quarter of 2014, or $0.17 per diluted common share, as compared to��$7.1 million, or $0.18 per diluted common share,��for the prior-year quarter. For the year ended December 31, 2014, net income available to common shareholders was $28.4 million, or $0.70 per diluted common share, versus $26.7 million, or $0.66 per diluted common share, for the year ended December 31, 2013.

Financial highlights –Fourth�quarter�2014

·

Loans at December 31, 2014 increased $48.5 million from September 30, 2014, and $321.2 million, or 15.4%, from December 31, 2013.

·

Deposits at December 31, 2014 increased $125.9 million from September 30, 2014, and $213.3 million, or 9.4%, from December 31, 2013.

·

Net interest income on a tax-equivalent basis (NII) increased $0.4 million from the third quarter of 2014 (linked-quarter), and $3.0 million, or 11.8%, from the prior-year quarter.

·

The net interest margin expanded four basis points (0.04%) to 3.94% from the linked-quarter, and 15 basis points (0.15%) from the prior-year quarter.

Financial Summary

����

Quarter ended (unaudited)

4Q14 change vs.

(in thousands, except per share amounts)

4Q14

3Q14

4Q13

3Q14

����

4Q13

����

Net interest income before provision

$

27,568�

$

27,062�

$

24,776�

$

506�

1.9�

%�

$

2,792�

11.3�

%

Provision for loan losses

(874)

(452)

(4,595)

(422)

(93.4)

%�

3,721�

81.0�

%

Net interest income after provision

28,442�

27,514�

29,371�

928�

3.4�

%�

(929)

(3.2)

%

Total noninterest income

7,618�

9,739�

8,252�

(2,121)

(21.8)

%�

(634)

(7.7)

%

Total noninterest expense

25,538�

25,047�

26,639�

491�

2.0�

%�

(1,101)

(4.1)

%

Net income before income taxes

10,522�

12,206�

10,984�

(1,684)

(13.8)

%�

(462)

(4.2)

%

Provision for income taxes

3,540�

4,315�

3,709�

(775)

(18.0)

%�

(169)

(4.6)

%

Net income

6,982�

7,891�

7,275�

(909)

(11.5)

%�

(293)

(4.0)

%

Preferred stock dividends

(144)

(144)

(143)

�-

�-

%�

(1)

(0.7)

%

Net income available to common shareholders

$

6,838�

$

7,747�

$

7,132�

$

(909)

(11.7)

%�

$

(294)

(4.1)

%

Diluted earnings per common share

$

0.17�

$

0.19�

$

0.18�

$

(0.02)

(11.9)

%�

$

(0.01)

(6.7)

%

KEY RATIOS

����

����

����

Net interest margin

3.94�

%

3.90�

%

3.79�

%

Efficiency ratio(1)

71.16�

%

67.75�

%

72.57�

%

Return on average assets

0.92�

%

1.05�

%

1.03�

%

Return on average shareholders' equity

9.05�

%

10.46�

%

10.42�

%

Noninterest income as a percentage of operating revenues

21.65�

%

26.46�

%

24.98�

%


1

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

1�|�Page


“I am pleased with the growth we experienced in 2014,” said Chairman and CEO Steve Bangert. “We grew our loan portfolio $321 million, or 15.4%.��I was delighted to see the growth come from both markets, with Arizona contributing $109.8 million of the growth. We also had a very good quarter for deposit generation, with deposits increasing $125.9 million.��We are well positioned for a successful 2015.”�

Loans

·

Loans at December 31, 2014 were $2.4 billion, increasing $48.5 million from September 30, 2014.���From December 31, 2013, loans increased $321.2 million, or 15.4%.

·

Loans increased $33.8 million and $14.7 million, respectively, for Arizona and Colorado from September 30, 2014. From December 31, 2013, loans increased $109.8 million, or 19.5%, for Arizona and $211.4 million, or 13.9%, for Colorado.

����

Quarter ended (unaudited)

4Q14 change vs.

(in thousands)

4Q14

3Q14

4Q13

3Q14

����

4Q13

����

LOANS

Commercial

$

977,699�

$

962,438�

$

824,453�

$

15,261�

1.6�

%�

$

153,246�

18.6�

%�

Owner-occupied real estate

422,471�

476,279�

452,959�

(53,808)

(11.3)

%�

(30,488)

(6.7)

%�

Investor real estate

567,248�

487,821�

447,905�

79,427�

16.3�

%�

119,343�

26.6�

%�

Construction & land

181,864�

182,288�

127,952�

(424)

(0.2)

%�

53,912�

42.1�

%�

Consumer

207,955�

202,414�

181,056�

5,541�

2.7�

%�

26,899�

14.9�

%�

Other

48,338�

45,829�

50,034�

2,509�

5.5�

%�

(1,696)

(3.4)

%�

Total loans

$

2,405,575�

$

2,357,069�

$

2,084,359�

$

48,506�

2.1�

%�

$

321,216�

15.4�

%�

·

New credit advanced of $177.2 million improved over the linked- and prior-year quarters. However, the level of loan paydowns and maturities in the fourth quarter, primarily in the Colorado portfolio, exceeded the linked- and prior-year quarters.�

·

In the fourth quarter of 2014, gross credit commitments increased by $84.0 million, or 24.5% annualized, from the linked-quarter. However, advances on lines declined, which reduced the total line utilization rate to 39.1% at December 31, 2014 compared to 42.9% at September 30, 2014.

·

Commercial line utilization was 36.2% at December 31, 2014, compared to 39.7% and 37.2%, respectively, at the linked- and prior-year quarter ends.

Quarter ended (unaudited)

(in thousands)

����

4Q14

����

3Q14

����

2Q14

����

1Q14

����

4Q13

Loans - beginning balance

$

2,357,069�

$

2,294,644�

$

2,152,294�

$

2,084,359�

$

2,048,866�

New credit extended

177,247�

146,458�

201,805�

105,542�

158,801�

Credit advanced

100,921�

106,011�

117,203�

90,736�

79,126�

Paydowns & maturities

(228,914)

(189,822)

(175,311)

(128,143)

(201,026)

Gross loan charge-offs

(748)

(222)

(1,347)

(200)

(1,408)

Loans - ending balance

$

2,405,575�

$

2,357,069�

$

2,294,644�

$

2,152,294�

$

2,084,359�

Net change - loans outstanding

$

48,506�

$

62,425�

$

142,350�

$

67,935�

$

35,493�

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

·

Customer Funding at December 31, 2014 increased $99.9 million from the linked-quarter end and $124.7 million from the prior-year quarter end.�

·

The decrease in customer repurchase agreements of $88.5 million from the prior-year quarter end is the result of a concerted effort to transition clients out of our collateralized sweep product.

·

Noninterest-bearing demand (NIB) accounts increased $71.2 million, or 28.2% annualized, on a linked-quarter basis. The percentage of NIB to total deposits was 43.1% at December 31, 2014.

2�|�Page


���

Quarter ended (unaudited)

4Q14 change vs.

(in thousands)

���

4Q14

���

3Q14

���

4Q13

���

3Q14

���

4Q13

DEPOSITS�AND�CUSTOMER REPURCHASE�AGREEMENTS

���

���

Money market

$

661,519�

$

619,377�

$

572,175�

$

42,142�

6.8�

%�

$

89,344�

15.6�

%

Interest-bearing demand

531,365�

509,352�

487,037�

22,013�

4.3�

%�

44,328�

9.1�

%

Savings

15,236�

19,091�

12,803�

(3,855)

(20.2)

%�

2,433�

19.0�

%

Certificates of deposits under $100

24,184�

24,971�

27,726�

(787)

(3.2)

%�

(3,542)

(12.8)

%

Certificates of deposits $100 and over

122,216�

127,054�

134,418�

(4,838)

(3.8)

%�

(12,202)

(9.1)

%

Reciprocal CDARS

64,607�

64,610�

83,173�

(3)

(0.0)

%�

(18,566)

(22.3)

%

Total interest-bearing deposits

1,419,127�

1,364,455�

1,317,332�

54,672�

4.0�

%�

101,795�

7.7�

%

Noninterest-bearing demand deposits

1,073,164�

1,001,921�

961,705�

71,243�

7.1�

%�

111,459�

11.6�

%

Customer repurchase agreements

49,976�

76,041�

138,494�

(26,065)

(34.3)

%�

(88,518)

(63.9)

%

Total deposits and customer repurchase agreements

$

2,542,267�

$

2,442,417�

$

2,417,531�

$

99,850�

4.1�

%�

$

124,736�

5.2�

%

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

·

Nonperforming assets were $15.0 million at December 31, 2014, compared to $12.0 million at September 30, 2014, and $19.0 million at December 31, 2013.�

·

Net charge-offs were negligible for the fourth quarter of 2014 and $0.1 million for the full year 2014. Negative provisions for loan losses of $0.9 million and $4.1 million were recorded during the fourth quarter and full year 2014, respectively.

·

The resulting Allowance equated to 1.36% of total loans, and the coverage of Allowance to nonperforming loans was 357.9% at December 31, 2014.

Quarter ended (unaudited)

(in thousands)

����

4Q14

����

3Q14

����

4Q13

����

ALLOWANCE FOR LOAN AND CREDIT LOSSES

Beginning allowance for loan losses

$

33,682�

$

33,922�

$

41,810�

Provision for loan losses

(874)

(452)

(4,595)

Net recovery (charge-off)

(43)

212�

(165)

Ending allowance for loan losses

$

32,765�

$

33,682�

$

37,050�

CREDIT QUALITY

Nonaccrual loans

$

8,994�

$

8,273�

$

13,921�

Loans 90 days or more past due and accruing interest

161�

�-

19�

Total nonperforming loans

9,155�

8,273�

13,940�

OREO and repossessed assets

5,819�

3,750�

5,097�

Total nonperforming assets

$

14,974�

$

12,023�

$

19,037�

Performing renegotiated loans

$

27,275�

$

29,121�

$

29,683�

Classified loans

$

36,940�

$

36,534�

$

46,476�

ASSET QUALITY MEASURES

Nonperforming assets to total assets

0.49�

%�

0.40�

%�

0.68�

%�

Nonperforming loans to total loans

0.38�

%�

0.35�

%�

0.67�

%�

Nonperforming loans and OREO to total loans and OREO

0.62�

%�

0.51�

%�

0.91�

%�

Allowance for loan and credit losses to total loans

1.36�

%�

1.43�

%�

1.78�

%�

Allowance for loan and credit losses to nonperforming loans

357.89�

%�

407.13�

%�

265.78�

%�

Shareholders’ Equity

·

On January 22, 2015, the Board of Directors of�the Company declared a quarterly cash dividend of $0.04 per common share. The dividend will be paid on February 9, 2015 to shareholders of record on February 2, 2015.

3�|�Page


Quarter ended (unaudited)

(in thousands, except per share amounts)

����

4Q14

����

3Q14

����

4Q13

����

EQUITY MEASURES

Common shareholders' equity

$

251,431�

$

245,392�

$

223,747�

Total shareholders' equity

308,769�

302,730�

281,085�

Common shares outstanding at period end

40,770�

40,691�

40,368�

Book value per common share

$

6.17�

$

6.03�

$

5.54�

Tangible book value per common share *

$

6.11�

$

5.96�

$

5.47�

Tangible common equity to tangible assets *

8.14�

%�

8.02�

%�

7.90�

%�

Tangible equity to tangible assets *

10.01�

%�

9.92�

%�

9.95�

%�

Tier 1 capital ratio

**

14.46�

%�

14.50�

%�

Total-risk based capital ratio

**

15.71�

%�

15.75�

%�


* See accompanying Reconciliation of Non-GAAP measures to GAAP

** Ratios unavailable at the time of release.

Net Interest Income and Margin

·

Net interest income on a tax-equivalent basis was $28.5 million for the fourth quarter of 2014, an increase of $0.4 million from the linked-quarter.

·

The net interest margin expanded four basis points on a linked-quarter basis to 3.94%.

·

From the third quarter of 2014, average loans increased $32.7 million while average federal funds sold, interest-earning deposits and investments decreased $15.7 million.

o

As a percentage of average earning assets, the Company’s investment portfolio declined to 17.1% from 17.9% at the linked-quarter end.

·

Average deposits increased $99.4 million from the linked-quarter, with average non-interest bearing deposits increasing $70.3 million from the linked-quarter.

Noninterest Income

·

Total noninterest income decreased $2.1 million to $7.6 million from the linked- quarter, primarily due to a decline in investment banking income.

·

Noninterest income as a percentage of operating income was 21.7% for the fourth quarter of 2014.

Quarter ended (unaudited)

4Q14 change vs.

(in thousands)

����

4Q14

����

3Q14

����

4Q13

����

3Q14

����

4Q13

����

Noninterest income:

����

����

Deposit service charges

$

1,404�

$

1,424�

$

1,276�

$

(20)

(1.4)

%�

$

128�

10.0�

%�

Investment advisory income

1,454�

1,418�

1,364�

36�

2.5�

%�

90�

6.6�

%�

Insurance income

2,872�

2,622�

2,617�

250�

9.5�

%�

255�

9.7�

%�

Investment banking income

126�

2,359�

971�

(2,233)

(94.7)

%�

(845)

(87.0)

%�

Other income

1,762�

1,916�

2,024�

(154)

(8.0)

%�

(262)

(12.9)

%�

Total noninterest income

$

7,618�

$

9,739�

$

8,252�

$

(2,121)

(21.8)

%�

$

(634)

(7.7)

%�

Operating Expenses

·

Total noninterest expense increased $0.5 million to $25.5 million from the linked- quarter. Excluding net gains on OREO and investment securities, noninterest expenses were relatively flat as compared to the linked-quarter.

·

The increase in noninterest expense (excluding net gains and losses) over the prior-year quarter is primarily related to investments in new personnel and annual merit increases effective in April 2014.

o

Total full-time equivalent employees at December 31, 2014 were 534, compared to 535 at September 30, 2014 and 513 at December 31, 2013.

4�|�Page


Quarter ended (unaudited)

4Q14 change vs.

(in thousands)

����

4Q14

����

3Q14

����

4Q13

����

3Q14

����

4Q13

����

Noninterest expense:

����

����

Salaries and employee benefits

$

17,173�

$

16,996�

$

16,224�

$

177�

1.0�

%�

$

949�

5.8�

%�

Stock-based compensation expense

712�

704�

551�

8�

1.1�

%�

161�

29.2�

%�

Occupancy expenses, premises and equipment

3,385�

3,288�

3,514�

97�

3.0�

%�

(129)

(3.7)

%�

Amortization of intangibles

150�

147�

151�

3�

2.0�

%�

(1)

(0.7)

%�

Other operating expenses

4,308�

4,510�

4,077�

(202)

(4.5)

%�

231�

5.7�

%�

Net (gain) loss on OREO, repossessed assets and other

(200)

(604)

2,100�

404�

66.9�

%�

(2,300)

(109.5)

%�

Loss on investment securities

10�

6�

22�

4�

66.7�

%�

(12)

(54.5)

%�

Total noninterest expense

$

25,538�

$

25,047�

$

26,639�

$

491�

2.0�

%�

$

(1,101)

(4.1)

%�

Earnings Conference Call

In conjunction with this release, you are invited to listen to the Company's conference call on Friday, January 23, 2015, at 9:00 am MST with Steve Bangert, chairman and CEO of CoBiz Financial Inc. The call can be accessed via the Internet at http://www.videonewswire.com/event.asp?id=101230 or by telephone at 877.493.9121, (conference ID # 51688132). International callers may dial:��973.582.2750.

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

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

Contact Information

CoBiz Financial Inc.

Lyne Andrich 303.312.3458

About CoBiz Financial

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

Forward-Looking Information

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

·

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

·

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

5�|�Page


·

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

·

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

·

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

·

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

·

Our net interest margin may be negatively impacted if we are unable to profitably deploy excess cash into higher yielding loans or investments.

·

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

·

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

·

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

·

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

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

6�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

Three�months�ended�December�31,�

Year�ended�December�31,�

(in thousands, except per share amounts)

����

2014

����

2013

����

2014

����

2013

����

INCOME STATEMENT DATA

Interest income

$

29,611�

$

26,954�

$

114,317�

$

106,127�

Interest expense

2,043�

2,178�

8,429�

10,426�

NET INTEREST INCOME BEFORE PROVISION

27,568�

24,776�

105,888�

95,701�

Provision for loan losses

(874)

(4,595)

(4,155)

(8,804)

NET INTEREST INCOME AFTER PROVISION

28,442�

29,371�

110,043�

104,505�

Noninterest income

7,618�

8,252�

32,075�

30,912�

Noninterest expense

25,538�

26,639�

97,964�

94,628�

INCOME BEFORE INCOME TAXES

10,522�

10,984�

44,154�

40,789�

Provision for income taxes

3,540�

3,709�

15,147�

13,351�

NET INCOME FROM CONTINUING OPERATIONS

6,982�

7,275�

29,007�

27,438�

Income from discontinued operations, net of tax

�-

�-

�-

173�

NET INCOME

$

6,982�

$

7,275�

$

29,007�

$

27,611�

Preferred stock dividends

(144)

(143)

(574)

(944)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$

6,838�

$

7,132�

$

28,433�

$

26,667�

EARNINGS PER COMMON SHARE

BASIC

$

0.17�

$

0.18�

$

0.70�

$

0.66�

DILUTED

$

0.17�

$

0.18�

$

0.70�

$

0.66�

EQUITY MEASURES

Common shares outstanding at period end (in thousands)

40,770�

40,368�

Book value per common share

$

6.17�

$

5.54�

Tangible book value per common share *

$

6.11�

$

5.47�

Tangible common equity to tangible assets *

8.14�

%�

7.90�

%�

Tangible equity to tangible assets *

10.01�

%�

9.95�

%�

* See accompanying Reconciliation of Non-GAAP Measures to GAAP

PERIOD END BALANCES

Total assets

$

3,062,166�

$

2,800,691�

Investments

484,621�

556,796�

Loans

2,405,575�

2,084,359�

Intangible assets

2,526�

2,798�

Deposits

2,492,291�

2,279,037�

Subordinated debentures

72,166�

72,166�

Common shareholders' equity

251,431�

223,747�

Total shareholders' equity

308,769�

281,085�

Interest-earning assets

2,927,132�

2,663,823�

Interest-bearing liabilities

1,653,738�

1,527,992�

BALANCE SHEET AVERAGES

Average assets

$

2,925,168�

$

2,702,211�

Average investments

522,822�

567,256�

Average loans

2,259,265�

1,991,251�

Average deposits

2,337,116�

2,118,910�

Average subordinated debentures

72,166�

85,216�

Average shareholders' equity

295,477�

268,342�

Average interest-earning assets

2,802,605�

2,584,657�

Average interest-bearing liabilities

1,612,644�

1,523,103�

7�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

Three�months�ended�December�31,�

Year�ended�December�31,�

(in thousands)

����

2014

����

2013

����

2014

����

2013

����

PROFITABILITY MEASURES

Net interest margin

3.94�

%�

3.79�

%�

3.91�

%�

3.81�

%�

Efficiency ratio - tax equivalent

71.16�

%�

72.57�

%�

70.95�

%�

72.49�

%�

Return on average assets

0.92�

%�

1.03�

%�

0.99�

%�

1.02�

%�

Return on average shareholders' equity

9.05�

%�

10.42�

%�

9.82�

%�

10.29�

%�

Noninterest income as a percentage of operating revenues

21.65�

%�

24.98�

%�

23.25�

%�

24.41�

%�

CREDIT QUALITY

Nonperforming loans

Nonaccrual loans

$

8,994�

$

13,921�

Loans 90 days or more past due and accruing interest

161�

19�

Total nonperforming loans

9,155�

13,940�

OREO & repossessed assets

5,819�

5,097�

Total nonperforming assets

$

14,974�

$

19,037�

Performing renegotiated loans

$

27,275�

$

29,683�

Classified loans

$

36,940�

$

46,476�

Charge-offs

$

(2,517)

$

(4,591)

Recoveries

2,387�

3,579�

Net charge-offs

$

(130)

$

(1,012)

Nonperforming assets to total assets

0.49�

%�

0.68�

%�

Nonperforming loans to total loans

0.38�

%�

0.67�

%�

Nonperforming loans and OREO to total loans and OREO

0.62�

%�

0.91�

%�

Allowance for loan and credit losses to total loans

1.36�

%�

1.78�

%�

Allowance for loan and credit losses to nonperforming loans

357.89�

%�

265.78�

%�

Total

NPAs as a

NONPERFORMING�ASSETS�BY�MARKET

����

Colorado

����

Arizona

����

Total

����

in Category

����

%

����

Commercial

$

2,716�

$

762�

$

3,478�

$

977,699�

0.36�

%�

Real estate - mortgage

1,003�

2,413�

3,416�

989,719�

0.35�

%�

Construction & land

135�

�-

135�

181,864�

0.07�

%�

Consumer

2,126�

�-

2,126�

207,955�

1.02�

%�

Other loans

�-

�-

�-

48,338�

�-

%�

OREO & repossessed assets

5,517�

302�

5,819�

5,819�

-

%�

NPAs

$

11,497�

$

3,477�

$

14,974�

$

2,411,394�

0.62�

%�

Total loans

$

1,732,453�

$

673,122�

$

2,405,575�

Total loans and OREO

1,737,970�

673,424�

2,411,394�

Nonperforming loans to loans

0.35�

%�

0.47�

%�

0.38�

%�

Nonperforming loans and OREO to total loans and OREO

0.66�

%�

0.52�

%�

0.62�

%�

8�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

Three months ended

December�31,�

September�30,�

June�30,�

March�31,�

December�31,�

(in thousands, except per share amounts)

����

2014

����

2014

����

2014

����

2014

����

2013

����

Interest income

$

29,611�

$

29,205�

$

28,510�

$

26,991�

$

26,954�

Interest expense

2,043�

2,143�

2,157�

2,086�

2,178�

Net interest income before provision

27,568�

27,062�

26,353�

24,905�

24,776�

Provision for loan losses

(874)

(452)

(941)

(1,888)

(4,595)

Net interest income after provision

28,442�

27,514�

27,294�

26,793�

29,371�

Noninterest income:

Deposit service charges

$

1,404�

$

1,424�

$

1,394�

$

1,376�

$

1,276�

Investment advisory income

1,454�

1,418�

1,442�

1,422�

1,364�

Insurance income

2,872�

2,622�

2,894�

2,762�

2,617�

Investment banking income

126�

2,359�

1,494�

187�

971�

Other income

1,762�

1,916�

1,813�

(66)

2,024�

Total noninterest income

7,618�

9,739�

9,037�

5,681�

8,252�

Noninterest expense:

Salaries and employee benefits

$

17,173�

$

16,996�

$

15,943�

$

15,836�

$

16,224�

Stock-based compensation expense

712�

704�

711�

1,014�

551�

Occupancy expenses, premises and equipment

3,385�

3,288�

3,492�

3,204�

3,514�

Amortization of intangibles

150�

147�

149�

151�

151�

Other operating expenses

4,308�

4,510�

4,583�

4,126�

4,077�

Net (gain) loss on securities, other assets and OREO

(190)

(598)

(1,646)

(184)

2,122�

Total noninterest expense

25,538�

25,047�

23,232�

24,147�

26,639�

Net income before income taxes

10,522�

12,206�

13,099�

8,327�

10,984�

Provision for income taxes

3,540�

4,315�

4,482�

2,810�

3,709�

Net income

6,982�

7,891�

8,617�

5,517�

7,275�

Preferred stock dividends

(144)

(144)

(143)

(143)

(143)

Net income available to common shareholders

$

6,838�

$

7,747�

$

8,474�

$

5,374�

$

7,132�

Earnings per common share

Basic

$

0.17�

$

0.19�

$

0.21�

$

0.13�

$

0.18�

Diluted

$

0.17�

$

0.19�

$

0.21�

$

0.13�

$

0.18�

PROFITABILITY MEASURES

Net interest margin

3.94�

%�

3.90�

%�

3.92�

%�

3.90�

%�

3.79�

%�

Efficiency ratio - tax equivalent

71.16�

%�

67.75�

%�

68.49�

%�

77.39�

%�

72.57�

%�

Return on average assets

0.92�

%�

1.05�

%�

1.19�

%�

0.80�

%�

1.03�

%�

Return on average shareholders' equity

9.05�

%�

10.46�

%�

11.86�

%�

7.86�

%�

10.42�

%�

Noninterest income as a percentage of operating revenues

21.65�

%�

26.46�

%�

25.54�

%�

18.57�

%�

24.98�

%�

EQUITY MEASURES

Common shares outstanding at period end (in thousands)

40,770�

40,691�

40,642�

40,622�

40,368�

Diluted weighted average common shares outstanding (in thousands)

40,374�

40,228�

40,134�

39,979�

39,831�

Book value per common share

$

6.17�

$

6.03�

$

5.87�

$

5.67�

$

5.54�

Tangible book value per common share *

$

6.11�

$

5.96�

$

5.81�

$

5.60�

$

5.47�

Tangible common equity to tangible assets *

8.14�

%�

8.02�

%�

7.82�

%�

7.98�

%�

7.90�

%�

Tangible equity to tangible assets *

10.01�

%�

9.92�

%�

9.71�

%�

10.00�

%�

9.95�

%�

Tier 1 capital ratio

**

14.46�

%�

14.18�

%�

14.43�

%�

14.50�

%�

Total risk based capital ratio

**

15.71�

%�

15.43�

%�

15.68�

%�

15.75�

%�


* See accompanying Reconciliation of Non-GAAP Measures to GAAP

** Ratios unavailable at the time of release.

9�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

At

December�31,�

September�30,�

June�30,�

March�31,�

December�31,�

(in thousands)

����

2014

����

2014

����

2014

����

2014

����

2013

����

PERIOD END BALANCES

Total assets

$

3,062,166�

$

3,028,864�

$

3,024,832�

$

2,852,782�

$

2,800,691�

Investments

484,621�

500,526�

526,797�

547,211�

556,796�

Loans

2,405,575�

2,357,069�

2,294,644�

2,152,294�

2,084,359�

Intangible assets

2,526�

2,676�

2,498�

2,647�

2,798�

Deposits

2,492,291�

2,366,376�

2,299,153�

2,322,736�

2,279,037�

Subordinated debentures

72,166�

72,166�

72,166�

72,166�

72,166�

Common shareholders' equity

251,431�

245,392�

238,760�

230,182�

223,747�

Total shareholders' equity

308,769�

302,730�

296,098�

287,520�

281,085�

Interest-earning assets

2,927,132�

2,892,095�

2,885,380�

2,713,376�

2,663,823�

Interest-bearing liabilities

1,653,738�

1,698,415�

1,745,284�

1,607,347�

1,527,992�

LOANS

Commercial

$

977,699�

$

962,438�

$

917,494�

$

860,060�

$

824,453�

Real estate - mortgage

989,719�

964,100�

978,399�

926,047�

900,864�

Construction & land

181,864�

182,288�

160,452�

136,018�

127,952�

Consumer

207,955�

202,414�

194,339�

183,156�

181,056�

Other

48,338�

45,829�

43,960�

47,013�

50,034�

Gross loans

2,405,575�

2,357,069�

2,294,644�

2,152,294�

2,084,359�

Less allowance for loan losses

(32,765)

(33,682)

(33,922)

(35,603)

(37,050)

Total net loans

$

2,372,810�

$

2,323,387�

$

2,260,722�

$

2,116,691�

$

2,047,309�

Gross Loans - Colorado

1,732,453�

1,717,764�

1,683,720�

1,600,759�

1,521,070�

Gross Loans - Arizona

673,122�

639,305�

610,924�

551,535�

563,289�

DEPOSITS�AND�CUSTOMER REPURCHASE�AGREEMENTS

Money market

$

661,519�

$

619,377�

$

599,234�

$

590,596�

$

572,175�

Interest-bearing demand

531,365�

509,352�

491,347�

542,304�

487,037�

Savings

15,236�

19,091�

15,134�

13,979�

12,803�

Certificates of deposits under $100

24,184�

24,971�

25,704�

26,965�

27,726�

Certificates of deposits $100 and over

122,216�

127,054�

126,487�

130,226�

134,418�

Brokered CDs

�-

�-

19,996�

�-

�-

Reciprocal CDARS

64,607�

64,610�

60,651�

81,589�

83,173�

Total interest-bearing deposits

1,419,127�

1,364,455�

1,338,553�

1,385,659�

1,317,332�

Noninterest-bearing demand deposits

1,073,164�

1,001,921�

960,600�

937,077�

961,705�

Customer repurchase agreements

49,976�

76,041�

74,565�

89,521�

138,494�

Total deposits and customer repurchase agreements

$

2,542,267�

$

2,442,417�

$

2,373,718�

$

2,412,257�

$

2,417,531�

BALANCE SHEET AVERAGES

Average assets

$

3,003,084�

$

2,983,493�

$

2,913,504�

$

2,797,695�

$

2,792,837�

Average investments

491,764�

512,579�

536,450�

551,263�

573,544�

Average loans

2,360,469�

2,327,777�

2,236,728�

2,108,563�

2,048,592�

Average deposits

2,450,685�

2,351,330�

2,267,573�

2,276,814�

2,253,875�

Average subordinated debentures

72,166�

72,166�

72,166�

72,166�

72,166�

Average shareholders' equity

306,226�

299,404�

291,469�

284,527�

277,118�

Average interest-earning assets

2,877,329�

2,860,327�

2,792,091�

2,677,847�

2,673,332�

Average interest-bearing liabilities

1,624,211�

1,684,757�

1,654,752�

1,484,532�

1,525,400�

ALLOWANCE�FOR�LOAN�AND�CREDIT�LOSSES

Beginning allowance for loan losses

$

33,682�

$

33,922�

$

35,603�

$

37,050�

$

41,810�

Provision for loan losses

(874)

(452)

(941)

(1,888)

(4,595)

Net recovery (charge-off)

(43)

212�

(740)

441�

(165)

Ending allowance for loan losses

$

32,765�

$

33,682�

$

33,922�

$

35,603�

$

37,050�

CREDIT QUALITY

Nonperforming loans

Nonaccrual loans

$

8,994�

$

8,273�

$

7,861�

$

10,618�

$

13,921�

Loans 90 days or more past due and accruing interest

161�

�-

134�

�-

19�

Total nonperforming loans

9,155�

8,273�

7,995�

10,618�

13,940�

OREO and repossessed assets

5,819�

3,750�

4,148�

4,911�

5,097�

Total nonperforming assets

$

14,974�

$

12,023�

$

12,143�

$

15,529�

$

19,037�

Performing renegotiated loans

$

27,275�

$

29,121�

$

24,033�

$

30,290�

$

29,683�

Classified loans

$

36,940�

$

36,534�

$

41,357�

$

38,278�

$

46,476�

ASSET QUALITY MEASURES

Nonperforming assets to total assets

0.49�

%�

0.40�

%�

0.40�

%�

0.54�

%�

0.68�

%�

Nonperforming loans to total loans

0.38�

%�

0.35�

%�

0.35�

%�

0.49�

%�

0.67�

%�

Nonperforming loans and OREO to total loans and OREO

0.62�

%�

0.51�

%�

0.53�

%�

0.72�

%�

0.91�

%�

Allowance for loan and credit losses to total loans

1.36�

%�

1.43�

%�

1.48�

%�

1.65�

%�

1.78�

%�

Allowance for loan and credit losses to nonperforming loans

357.89�

%�

407.13�

%�

424.29�

%�

335.31�

%�

265.78�

%�

10�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

For the three months ended,

December�31,�2014

September�30,�2014

December�31,�2013

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

$

25,096�

$

31�

0.48�

%�

$

19,971�

$

23�

0.45�

%�

$

51,196�

$

44�

0.34�

%

Investment securities

491,764�

3,586�

2.92�

%�

512,579�

3,775�

2.95�

%�

573,544�

4,375�

3.05�

%

Loans

2,360,469�

26,965�

4.47�

%�

2,327,777�

26,458�

4.45�

%�

2,048,592�

23,292�

4.45�

%

Total interest-earning assets

$

2,877,329�

$

30,582�

4.17�

%�

$

2,860,327�

$

30,256�

4.15�

%�

$

2,673,332�

$

27,711�

4.07�

%

Noninterest-earning assets

125,755�

123,166�

119,505�

Total assets

$

3,003,084�

$

2,983,493�

$

2,792,837�

Liabilities and Shareholders' Equity

Deposits

Money market

$

645,435�

$

517�

0.32�

%�

$

626,199�

$

508�

0.32�

%�

$

608,818�

$

532�

0.35�

%

Interest-bearing demand

528,639�

196�

0.15�

%�

499,467�

209�

0.17�

%�

418,181�

227�

0.22�

%

Savings

16,723�

3�

0.07�

%�

16,791�

3�

0.07�

%�

11,712�

2�

0.07�

%

Certificates of deposit

Reciprocal

64,160�

48�

0.30�

%�

64,174�

51�

0.32�

%�

89,793�

77�

0.34�

%

Under $100

24,536�

16�

0.26�

%�

25,096�

35�

0.55�

%�

27,825�

32�

0.46�

%

$100 and over

124,330�

172�

0.55�

%�

143,040�

164�

0.45�

%�

133,596�

184�

0.55�

%

Total interest-bearing deposits

$

1,403,823�

$

952�

0.27�

%�

$

1,374,767�

$

970�

0.28�

%�

$

1,289,925�

$

1,054�

0.32�

%

Other borrowings

Securities sold under agreements to repurchase

58,007�

16�

0.11�

%�

92,429�

31�

0.13�

%�

163,284�

85�

0.20�

%

Other short-term borrowings

90,215�

36�

0.16�

%�

145,395�

103�

0.28�

%�

25�

�-

�-

%

Long term-debt

72,166�

1,039�

5.63�

%�

72,166�

1,039�

5.63�

%�

72,166�

1,039�

5.63�

%

Total interest-bearing liabilities

$

1,624,211�

$

2,043�

0.50�

%�

$

1,684,757�

$

2,143�

0.50�

%�

$

1,525,400�

$

2,178�

0.56�

%

Noninterest-bearing demand accounts

1,046,862�

976,563�

963,950�

Total deposits and interest-bearing liabilities

2,671,073�

2,661,320�

2,489,350�

Other noninterest-bearing liabilities

25,785�

22,769�

26,369�

Total liabilities

2,696,858�

2,684,089�

2,515,719�

Total equity

306,226�

299,404�

277,118�

Total liabilities and equity

$

3,003,084�

$

2,983,493�

$

2,792,837�

Net interest income - taxable equivalent

$

28,539�

$

28,113�

$

25,533�

Net interest spread

3.67�

%�

3.65�

%�

3.51�

%

Net interest margin

3.94�

%�

3.90�

%�

3.79�

%

Ratio of average interest-earning assets to average interest-bearing liabilities

177.15�

%�

169.78�

%�

175.25�

%�

11�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

For the year�ended�December�31,�

2014

2013

Interest

Average

Interest

Average

Average

earned

yield

Average

earned

yield

(in thousands)

balance

or paid

or cost

balance

or paid

or cost

Assets

Federal funds sold and other

$

20,518�

$

102�

0.50�

%�

$

26,150�

$

117�

0.45�

%�

Investment securities

522,822�

15,742�

3.01�

%�

567,256�

16,963�

2.99�

%�

Loans

2,259,265�

102,281�

4.53�

%�

1,991,251�

91,807�

4.61�

%�

Total interest-earning assets

$

2,802,605�

$

118,125�

4.21�

%�

$

2,584,657�

$

108,887�

4.21�

%�

Noninterest-earning assets

122,563�

117,554�

Total assets

$

2,925,168�

$

2,702,211�

Liabilities and Shareholders' Equity

Deposits

Money market

$

610,525�

$

1,954�

0.32�

%�

$

595,922�

$

2,434�

0.41�

%�

Interest-bearing demand

����

488,255�

886�

0.18�

%�

375,581�

862�

0.23�

%�

Savings

15,140�

10�

0.07�

%�

13,349�

8�

0.06�

%�

Certificates of deposit

Reciprocal

69,465�

222�

0.32�

%�

89,051�

349�

0.39�

%�

Under $100

25,888�

110�

0.42�

%�

28,901�

144�

0.50�

%�

$100 and over

134,158�

685�

0.51�

%�

137,121�

819�

0.60�

%�

Total interest-bearing deposits

$

1,343,431�

$

3,867�

0.29�

%�

$

1,239,925�

$

4,616�

0.37�

%�

Other borrowings

Securities sold under agreements to repurchase

83,543�

154�

0.18�

%�

154,502�

337�

0.22�

%�

Other short-term borrowings

113,504�

286�

0.25�

%�

43,460�

113�

0.26�

%�

Long term-debt

72,166�

4,122�

5.71�

%�

85,216�

5,360�

6.29�

%�

Total interest-bearing liabilities

$

1,612,644�

$

8,429�

0.52�

%�

$

1,523,103�

$

10,426�

0.68�

%�

Noninterest-bearing demand accounts

993,685�

878,985�

Total deposits and interest-bearing liabilities

2,606,329�

2,402,088�

Other noninterest-bearing liabilities

23,362�

31,781�

Total liabilities

2,629,691�

2,433,869�

Total equity

295,477�

268,342�

Total liabilities and equity

$

2,925,168�

$

2,702,211�

Net interest income - taxable equivalent

$

109,696�

$

98,461�

Net interest spread

3.69�

%�

3.53�

%�

Net interest margin

3.91�

%�

3.81�

%�

Ratio of average interest-earning assets to average interest-bearing liabilities

173.79�

%�

169.70�

%�

12�|�Page


CoBiz Financial Inc.

December 31, 2014

(unaudited)

Reconciliation of Non-GAAP Measures to GAAP

(in thousands, except per share amounts)

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

The following tables include non-GAAP financial measures related to tangible equity, tangible common equity and tangible assets.��The table below has been adjusted to exclude intangible assets and preferred stock.

At

December�31,�

September�30,�

June�30,�

March�31,�

December�31,�

2014

2014

2014

2014

2013

Shareholders' equity as reported - GAAP

$

308,769�

$

302,730�

$

296,098�

$

287,520�

$

281,085�

Intangible assets

(2,526)

(2,676)

(2,498)

(2,647)

(2,798)

A

Tangible equity - non-GAAP

306,243�

300,054�

293,600�

284,873�

278,287�

Preferred stock

(57,338)

(57,338)

(57,338)

(57,338)

(57,338)

B

Tangible common equity - non-GAAP�

$

248,905�

$

242,716�

$

236,262�

$

227,535�

$

220,949�

Total assets as reported - GAAP

$

3,062,166�

$

3,028,864�

$

3,024,832�

$

2,852,782�

$

2,800,691�

Intangible assets

(2,526)

(2,676)

(2,498)

(2,647)

(2,798)

C

Total tangible assets - non-GAAP

$

3,059,640�

$

3,026,188�

$

3,022,334�

$

2,850,135�

$

2,797,893�

D

Common shares outstanding

40,770�

40,691�

40,642�

40,622�

40,368�

B�/�C�

Tangible common equity to tangible assets - non-GAAP�

8.14�

%�

8.02�

%�

7.82�

%�

7.98�

%�

7.90�

%

A�/�C�

Tangible equity to tangible assets - non-GAAP

10.01�

%�

9.92�

%�

9.71�

%�

10.00�

%�

9.95�

%

B�/�D�

Tangible book value per common share - non-GAAP

$

6.11�

$

5.96�

$

5.81�

$

5.60�

$

5.47�

13�|�Page




Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings