On the heels of reporting a second-quarter loss due to rising credit problems, CoBiz Financial Inc. in Denver is raising $45 million of capital with an eye toward possible acquisitions.
The $2.5 billion-asset company said Monday that it swung to a loss of $16.7 million, or 72 cents a share, in the second quarter, from a profit of $4.2 million, or 18 cents a share, a year earlier. It cited a nearly sixfold jump in the loan-loss provision, to $35.2 million.
Nonperforming assets totaled $93.9 million, up 313%, and made up 3.70% of total assets.Two-thirds of the company's problem assets are in its home state, a market that CoBiz said had remained relatively insulated to the economic downturn until late last year. The rest are in Arizona, one of the most stressed markets in the country.
CoBiz said capital levels would remain significantly in excess of regulatory minimums, though it did not provide specific ratios.
However, the company's tangible common equity ratio — a measure investors watch closely — was 4.51%. Analysts generally consider anything below 5% too thin.
The $45 million common stock offering, which CoBiz also announced Monday, would boost that ratio.
The company said that the proceeds would be used for the capital needs of its bank units, expansion or possible acquisitions.
CoBiz's stock fell 18% Tuesday, to close at $4.84 a share.
