CoBiz Inc. is a 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 Private Asset Management; 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 Alexander Capital Management Group; and employee and executive benefits consulting and wealth transfer services through Financial Designs. CoBiz Financial Inc. has a market cap of $113.35 million; its shares were traded at around $4.84 with and P/S ratio of 0.63. The dividend yield of CoBiz Financial Inc. stocks is 0.83%. CoBiz Financial Inc. had an annual average earning growth of 17.1% over the past 10 years. GuruFocus rated CoBiz Financial Inc. the business predictability rank of 5-star.
Highlight of Business Operations:· Diluted earnings (loss) per share for the three and six months ended June 30, 2009, were $(0.72) and $(2.79), respectively, compared to $0.18 and $0.25 for the same periods in 2008.
Total assets at June 30, 2009 were $2.5 billion, a decrease of $143.4 million or 5.3% from December 31, 2008, due primarily to a decrease in the loan portfolio of $79.5 million, an increase in the allowance for loan losses of $32.4 million and a goodwill impairment of $33.7 million during the first half of 2009. In 2009, higher level of loan pay downs and maturities and the increase in the allowance for loan losses from December 31, 2008, exceeded new credit extensions of $124.7 million and loan advances of $218.4 million.
Investments. The Company manages its investment portfolio to provide interest income and to meet the collateral requirements for public deposits, our customer repurchase program and wholesale borrowings. Investments decreased by $34.3 million from $500.4 million at December 31, 2008, to $466.1 million at June 30, 2009. The decrease in investments is primarily attributable to a Federal Home Loan Bank (FHLB) stock sale of $7.9 million, maturities of $47.0 million and OTTI of $1.7 million. These changes were offset by purchases of $13.3 million. Purchases during the first half of 2009 consisted of two corporate debt securities issued by publicly traded Companies, a municipal bond and a mortgage-backed security. Maturing investments were largely high-grade government-backed mortgage-backed securities (MBS). Additionally, net unrealized losses on available-for-sale securities decreased by $9.0 million to $6.3 million during the first half of 2009.
Other Real Estate Owned. OREO increased by $20.6 million to $26.5 million at June 30, 2009 from $5.9 million at December 31, 2008. During the first half of 2009, the Company disposed of $3.3 million in OREO and took possession of an additional $23.8 million in OREO. At June 30, 2009, $10.1 million or 38% of OREO was in
Other Assets. Other Assets increased by $5.3 million to $32.0 million at June 30, 2009, from $26.7 million at December 31, 2008. The increase was primarily attributed to a $6.2 million increase in taxes receivable offset by a $0.8 million decrease in the fair value of derivative instruments. The remaining change was attributed to fluctuations in other miscellaneous assets.
Deposits. Total deposits increased by $119.6 million to $1.76 billion at June 30, 2009 from $1.64 billion at December 31, 2008. Customer funding, excluding brokered deposits, increased $120.2 million from December 31, 2008. We continue to see a migration from Money Market and NOW accounts into certificates of deposits offered through the CDARS program. Overall, growth in deposits was primarily attributed to certificates of deposits of $100,000 and over and noninterest-bearing demand deposits.
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