Our analysis is based on comparing CoBiz Financial, Inc. with the following peers – Guaranty Bancorp, Western Alliance Bancorporation, Glacier Bancorp, Inc., Cullen/Frost Bankers, Inc., First Interstate BancSystem, Inc. Class A, Zions Bancorporation, National Bank Holdings Corporation Class A, Pinnacle Financial Partners, Inc. and KeyCorp (GBNK-US, WAL-US, GBCI-US, CFR-US, FIBK-US, ZION-US, NBHC-US, PNFP-US and KEY-US).
CoBiz Financial, Inc.’s dividend yield is 1.42 percent and its dividend payout is 26.87 percent. This compares to a peer average dividend yield of 2.51 percent and a payout level of 39.45 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 75 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2016), COBZ-US paid a medium quality dividend, which represents a yield of 1.38% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality and 4 were medium quality.
- The ending cash balance, with a dividend coverage of 11.50x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to June 30, 2016), COBZ-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.00x), investing cash flow (coverage of -39.96x), issuance cash flow (coverage of 35.40x) and twelve-month prior cash (coverage of 12.06x), for a total dividend coverage of 12.50x.
COBZ-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -7.51x). Thus, the total coverage including share buybacks is 20.02x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||0.69||0.99||1||1.14||1.26||1.42|
|Dividend Payout (%)||5.26||12.73||18.18||21.43||27.42||26.87|
A complete list of metrics and analysis is available on the company page.
CoBiz Financial, Inc. operates as a diversified financial services company. The company operates through three business segments: Commercial Banking, Fee-Based Lines and Corporate Support & Other. The Commercial Banking segment consists of the operations of Colorado Business Bank and Arizona Business Bank, which offers real estate banking, private banking, interest-rate hedging, depository products and treasury management. The Fee-Based Lines segment divided into three segments those are Investment, Wealth Management and Insurance. The Investment Banking segment consists of the operations of Green Manning & Bunch, which provides middle-market companies with merger and acquisition advisory services, institutional private placements of debt and equity, and other strategic financial advisory services. The Wealth Management segment consists of the operations of CoBiz Investment Management, LLC. and CoBiz Trust and Financial Designs Ltd., which offers customized client investment policy, proprietary bond and equity offerings, tailored asset allocation strategies, trust administration, estate and business succession planning, carefully vetted investment options utilizing external managers, investment management, estate settlements, financial planning and family office services. The Insurance segment consists of the operations of CoBiz Insurance, Inc. and Financial Designs Ltd., which offers employee benefits and retirement planning, executive compensation and benefits planning, individual benefits, commercial lines, professional lines, private client and risk management services. The Corporate Support & Other segment is composed of activities of the parent company; non-production, back-office support operations; and eliminating transactions in consolidation. The non-production, back-office operations include human resources, accounting and finance, information technology, and loan and deposit operations. CoBiz Financial was founded on February 19, 1980 and is headquartered in Denver, CO.
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