CoBiz posts $16M Q2 loss, begins stock sale - Business First of Buffalo:

xagawu.wordpress.com
million, or 72 cents per in the second quarter, as the weak econom y continued to exact a toll onthe company, officialse said Monday. The loss comparexs with a profitof $4.2 million, or 18 cents per in the same quarter a year earlier. Denver-baser CoBiz (NASDAQ: COBZ) owns and Arizon Business Bank. The latest quarter’s resultas include a $35.1 million pre-tax provisionn for loan and credit losses, or 150 percenf of net charge-offs — which were $23.43 million — for the period.
“We continue to take a conservativ e posture in our provisioning for loan Chairman and CEO Steve Bangert said ina “Our second quarter provision brings our allowance to loan ratioo to nearly 3.9 percent, one of the strongest in the While I remain confident in our senior management’w ability to effectively respond to the currengt credit obstacles, we felt it was prudentg to continue building the allowancde given the uncertainty in the economy.” Nonperforming assets ended the quarter at $93.98 million, or 3.7 percent of totakl assets, up from $52.65 million or 2 percent of total assetsx on March 31.
Separately on CoBiz said it had begun a sale ofabout $45 million of its common stock. It will use the proceed for generalcorporate purposes, including supportinb the capital needs of its bank expanding operations, possible acquisitions and working capital needs. Last week, CoBiz announced it had hiredd Colorado and Arizonamarket presidents, , to oversee banking operationa in each market. “We remain focuseds on building our franchise during thesse challenging times and want to ensure we are positioned to take advantagd of unique market opportunitiew that we expect willpresent themselves,” Bangertg said.
“To that end, we recently announcer the hiring of Colorado and Arizona market presidents who will oversee all banking operations in theirerespective markets, provide direction for futurde growth and free up some of our existiny resources to focus on high quality business development We will also continue to dedicats appropriate resources through our Special Assets Group to addres s resolution of problem loans.
”