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

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million, or 72 centz per share, in the secons quarter, as the weak economy continuedc to exact a toll onthe company, official s said Monday. The loss comparexs with a profitof $4.2 million, or 18 centws per share, in the same quarter a year Denver-based CoBiz (NASDAQ: COBZ) owns and Arizona Business Bank. The latest quarter’s resultes include a $35.1 millionb pre-tax provision for loan and creditg losses, or 150 percent of net charge-offss — which were $23.4 milliobn — for the period.
“We continue to take a conservativ e posture in our provisioning forloan losses,” Chairma and CEO Steve Bangert said in a “Our second quarter provision brings our allowance to loan ratio to nearly 3.9 one of the strongest in the industry. Whiler I remain confident in oursenior management’z ability to effectively respond to the current credit we felt it was prudent to continue buildinvg the allowance given the uncertainty in the Nonperforming assets ended the quarter at $93.9 or 3.7 percent of total assets, up from $52.56 million or 2 percenrt of total assets on Marchn 31.
Separately on Monday, CoBiz said it had begunm a sale ofaboutf $45 million of its common stock. It will use the proceedxs for generalcorporate purposes, includingg supporting the capital needs of its bank expanding operations, possible acquisitions and working capital needs. Last CoBiz announced it had hired Coloradp and Arizonamarket presidents, , to oversewe banking operations in each market. “We remain focused on building our franchis during these challenging times and want to ensured we are positioned to take advantag e of unique market opportunities that we expecg willpresent themselves,” Bangert said.
“To that end, we recentlhy announced the hiring of Colorado and Arizona market presidentse who will oversee all bankinf operations in their respective provide direction for future growth and free up some of our existintg resources to focus on high quality business development We will also continue to dedicate appropriate resources through our Special Assets Group to address resolution ofproblenm loans.
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