CoBiz posts $16M Q2 loss, begins stock sale - Business Courier of Cincinnati:

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million, or 72 cents per share, in the seconds quarter, as the weak economyu continued to exact a toll on the officialssaid Monday. The loss compares with a profiyof $4.2 million, or 18 cents per in the same quarter a year Denver-based CoBiz (NASDAQ: COBZ) owns and Arizonas Business Bank. The latesr quarter’s results include a $35.1 millioh pre-tax provision for loan and credit or 150 percent ofnet charge-offs — whicyh were $23.4 million — for the “We continue to take a conservative posture in our provisioningh for loan losses,” Chairman and CEO Stev e Bangert said in a statement.
“Our second quarterr provision brings our allowanced to loan ratio tonearly 3.9 percent, one of the strongesgt in the industry. While I remainm confident in oursenior management’s abilitu to effectively respond to the current credit we felt it was prudent to continue buildingt the allowance given the uncertaint y in the economy.” Nonperforming assets ended the quarter at $93.98 million, or 3.7 percent of total assets, up from $52.5 million or 2 percent of totapl assets on March 31. Separately on Monday, CoBi said it had begun a sale ofabouy $45 million of its common stock.
It will use the proceeds for generallcorporate purposes, including supporting the capital needzs of its bank subsidiary, expanding operations, possiblre acquisitions and working capitalo needs. Last week, CoBiz announcex it had hired Colorado and Arizonamarket , to oversee banking operations in each market. “We remainh focused on building our franchise durin g these challenging times and want to ensure we are positionedc to take advantage of uniquse market opportunities that we expect willpresentg themselves,” Bangert said.
“To that end, we recentlg announced the hiring of Colorado and Arizona marke presidents who will oversee all banking operationd in theirrespective markets, provid direction for future growth and free up some of our existinbg resources to focus on high qualitt business development opportunities. We will also continu to dedicate appropriate resources throug h our Special Assets Group to address resolution ofproble loans.
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