CoBiz Financial Inc. (NASDAQ:COBZ) filed Quarterly Report for the period ended 2010-09-30.
Cobiz Financial Inc. has a market cap of $182.9 million; its shares were traded at around $4.84 with and P/S ratio of 1.2. The dividend yield of Cobiz Financial Inc. stocks is 0.8%.
Highlight of Business Operations:· Net loss for the three and nine months ended September 30, 2010 was $1.9 million and $10.4 million, respectively, compared to a net loss of $15.7 million and $78.5 million for the same periods in 2009. Included in the net loss for the three and nine months of 2009 were goodwill impairment charges of $12.5 million and $46.2 million, respectively.
· Provision for loan and credit losses for the three and nine months ended September 30, 2010, was $7.3 million and $31.6 million, respectively, compared to $20.2 million and $89.2 million for the comparable periods in 2009. The provision for loan losses has decreased for five consecutive quarters since it peaked in the second quarter 2009 at $35.2 million.
At September 30, 2010, the Company holds, as part of its investment portfolio, available for sale securities reported at fair value consisting of MBS, government agencies, municipal securities, and corporate debt securities. The fair value of the majority of these securities are determined using widely accepted valuation techniques, including matrix pricing and broker-quote based applications, considered Level 2 inputs. The Company also holds trust preferred securities the majority of which are recorded at fair value based on quoted market prices, considered by the Company Level 1 inputs. The fair value of available for sale securities at September 30, 2010, using Level 1 and 2 inputs was $557.5 million. Certain private-label MBS valued using broker-dealer quotes based on proprietary broker models, which are considered by the Company an unobservable input (Level 3), totaled $2.5 million at September 30, 2010. Investments incorporating Level 3 inputs as part of their valuation represent 0.1% of total assets at the report date. The Company recognized losses of $0.1 million and $0.4 million on the private-label MBS for the three and nine months ended September 30, 2010. Unrealized losses of $1.9 million were recorded in accumulated other comprehensive income relating to private-label MBS at September 30, 2010.
Loans. Gross loans held for investment decreased $141.6 million or 8.0% to $1.6 billion at September 30, 2010 compared to December 31, 2009. During the first nine months of 2010 the Company advanced $178.1 million in new credit relationships and an additional $230.4 million on existing lines. Credit extensions were offset by paydowns and maturities of $503.1 million and charge-offs of $45.5 million during the nine months ended September 30, 2010. Loan generation continues to be a challenge for both the Company and the industry.
Other Real Estate Owned. OREO increased $3.7 million to $28.9 million at September 30, 2010, from $25.2 million at December 31, 2009. During the first nine months of 2010, the Company took possession of $16.9 million in OREO, received sales proceeds of $7.5 million and recorded valuation allowances and losses on sale of $5.8 million ($3.7 million of which relates to a valuation adjustment in the second quarter of 2010 on a single property). At September 30, 2010, $14.0 million, or 49%, of OREO was in Colorado and $14.8 million, or 51%, was in Arizona.
Deposits. Total deposits decreased $67.4 million to $1.9 billion at September 30, 2010 from $2.0 billion at December 31, 2009. Through the first nine months of 2010 demand deposits increased of $78.7 million, while certificate of deposits decreased $138.4 million. Noninterest bearing deposits represented 32.7% of total deposits at September 30, 2010, compared to 27.6% at December 31, 2009.
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