CoBiz Financial in Denver plans to shutter its investment banking unit by the end of March.
The $3.1 billion-asset company said in a brief statement Thursday that it wants to focus more on "fee-based business lines with recurring revenue." CoBiz also said that increased compliance costs were playing a role in its decision to close Green Manning & Bunch, the investment bank it bought in July 2001 for nearly $4.8 million in cash and stock.
CoBiz noted in its annual report that Green Manning & Bunch's income jumped 81% in 2014 from a year earlier, to $4.2 million. The unit's gains were uneven; its income totaled just $126,000 in the fourth quarter, down 95% from nearly $2.4 million a quarter earlier.
Overall, CoBiz profit rose 6.3% in 2014 compared to a year earlier, to $28.4 million. For the fourth quarter, the company's profit fell 4.4% from a year earlier, to $6.8 million.
Green Manning & Bunch said on its website that it had brokered deals with an aggregate value of more than $8 billion since 1988.
Calls to Lyne Andrich, chief financial officer at CoBiz, and Warren Henson, Green Manning & Bunch's president and senior managing partner, were not returned.