Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SOUTHWEST BANCORP INC | ||
Entity Central Index Key | 914,374 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Trading Symbol | oksb | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 337.6 | ||
Entity Common Stock, Shares Outstanding | 19,453,346 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and due from banks | $ 24,971 | $ 19,705 |
Interest-bearing deposits | 53,158 | 121,231 |
Cash and cash equivalents | 78,129 | 140,936 |
Securities held to maturity (fair values of $12,282 and $12,880, respectively) | 11,797 | 12,362 |
Securities available for sale (amortized cost of $401,136 and $352,275, respectively) | 400,331 | 353,231 |
Loans held for sale | 7,453 | 1,485 |
Loans receivable | 1,771,976 | 1,398,506 |
Less: Allowance for loan losses | (26,106) | (28,452) |
Net loans receivable | 1,745,870 | 1,370,054 |
Accrued interest receivable | 5,767 | 4,723 |
Non-hedge derivative asset | 1,793 | 787 |
Premises and equipment, net | 23,819 | 18,588 |
Other real estate | 2,274 | 3,097 |
Goodwill | 13,467 | 1,214 |
Other intangible assets, net | 6,615 | 3,927 |
Bank owned life insurance | 27,676 | |
Other assets | 32,031 | 31,630 |
Total assets | 2,357,022 | 1,942,034 |
Deposits: | ||
Noninterest-bearing demand | 596,494 | 496,128 |
Interest-bearing demand | 151,015 | 122,342 |
Money market accounts | 534,357 | 461,679 |
Savings accounts | 56,333 | 32,795 |
Time deposits of $100,000 or more | 311,538 | 198,952 |
Other time deposits | 234,368 | 222,103 |
Total deposits | 1,884,105 | 1,533,999 |
Accrued interest payable | 867 | 769 |
Non-hedge derivative liability | 1,793 | 787 |
Other liabilities | 11,684 | 9,920 |
Other borrowings | 110,927 | 79,380 |
Subordinated debentures | 51,548 | 46,393 |
Total liabilities | 2,060,924 | 1,671,248 |
Shareholders' equity: | ||
Common stock - $1 par value; 40,000,000 shares authorized; 21,138,028 and 19,810,877 shares issued, respectively | 21,138 | 19,811 |
Additional paid in capital | 121,966 | 101,245 |
Retained earnings | 173,210 | 160,427 |
Accumulated other comprehensive loss | (1,290) | (395) |
Treasury Stock, at cost; 1,131,226 and 617,818 shares, respectively | (18,926) | (10,302) |
Total shareholders' equity | 296,098 | 270,786 |
Total liabilities & shareholders' equity | $ 2,357,022 | $ 1,942,034 |
Consolidated Statements Of Fin3
Consolidated Statements Of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Statements Of Financial Condition [Abstract] | ||
Held to maturity securities, fair value | $ 12,282 | $ 12,880 |
Available for sale securities, amortized cost | $ 401,136 | $ 352,275 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 21,138,028 | 19,810,877 |
Treasury Stock, Shares | 1,131,226 | 617,818 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Interest and fees on loans | $ 67,644 | $ 64,224 | $ 66,162 |
Investment securities: | |||
U.S. Government and agency obligations | 1,186 | 1,490 | 1,745 |
Mortgage-backed securities | 3,326 | 3,459 | 3,481 |
State and political subdivisions | 1,212 | 1,171 | 1,203 |
Other securities | 835 | 1,026 | 918 |
Other interest-earning assets | 280 | 422 | 405 |
Total interest income | 74,483 | 71,792 | 73,914 |
Interest expense: | |||
Interest-bearing demand | 153 | 146 | 148 |
Money market accounts | 830 | 620 | 790 |
Savings accounts | 44 | 38 | 44 |
Time deposits of $100,000 or more | 910 | 1,428 | 2,338 |
Other time deposits | 1,861 | 1,423 | 2,239 |
Other borrowings | 984 | 900 | 892 |
Subordinated debentures | 2,284 | 2,233 | 4,813 |
Total interest expense | 7,066 | 6,788 | 11,264 |
Net interest income | 67,417 | 65,004 | 62,650 |
Provision (credit) for loan losses | (3,566) | (6,624) | (7,209) |
Net interest income after provision (credit) for loan losses | 70,983 | 71,628 | 69,859 |
Noninterest income: | |||
Service charges and fees | 9,995 | 10,222 | 10,491 |
Other noninterest income | 2,121 | 898 | 503 |
Gain on sale of bank branches, net | 4,378 | ||
Gain on sales of mortgage loans, net | 2,179 | 1,549 | 2,649 |
Gain on sales/calls of investment securities, net | 162 | 1,884 | |
Total noninterest income | 14,457 | 18,931 | 13,643 |
Noninterest expense: | |||
Salaries and employee benefits | 34,850 | 31,830 | 31,877 |
Occupancy | 9,359 | 9,193 | 9,114 |
Data processing | 2,178 | 1,776 | 1,665 |
FDIC and other insurance | 1,353 | 1,305 | 1,764 |
Other real estate, net | 161 | 594 | (1,098) |
General and administrative | 10,339 | 12,214 | 11,989 |
Total noninterest expense | 58,240 | 56,912 | 55,311 |
Income before taxes | 27,200 | 33,647 | 28,191 |
Taxes on income | 9,793 | 12,617 | 10,756 |
Net income | 17,407 | 21,030 | 17,435 |
Net income available to common shareholders | $ 17,407 | $ 21,030 | $ 17,435 |
Basic earnings per common share | $ 0.90 | $ 1.07 | $ 0.89 |
Diluted earnings per common share | 0.90 | 1.06 | $ 0.88 |
Common dividends declared per share | $ 0.24 | $ 0.16 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 17,407 | $ 21,030 | $ 17,435 |
Other comprehensive income: | |||
Unrealized gain (loss) on available for sale securities | (1,599) | 5,784 | (8,942) |
Reclassification adjustment for net gains arising during the period | (162) | (1,884) | |
Change in fair value of derivative used for cash flow hedge | 216 | 381 | 1,228 |
Other comprehensive income (loss), before tax | (1,545) | 4,281 | (7,714) |
Tax (expense) benefit related to items of other comprehensive income (loss) | 650 | (1,665) | 2,975 |
Other comprehensive income (loss), net of tax | (895) | 2,616 | (4,739) |
Comprehensive income | $ 16,512 | $ 23,646 | $ 12,696 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 17,407,000 | $ 21,030,000 | $ 17,435,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (credit) for loan losses | (3,566,000) | (6,624,000) | (7,209,000) |
Adjustments to other real estate | 63,000 | 576,000 | 2,222,000 |
Deferred tax expense | 2,116,000 | 9,180,000 | 10,220,000 |
Asset depreciation | 2,468,000 | 2,829,000 | 2,450,000 |
Securities premium amortization, net of discount accretion | 2,658,000 | 2,624,000 | 3,454,000 |
Amortization of intangibles | 1,085,000 | 780,000 | 1,315,000 |
Goodwill impairment | 0 | 0 | 0 |
Restricted stock amortization expense | 1,139,000 | 210,000 | 742,000 |
Net gain on sales/calls of investment securities | (162,000) | (1,884,000) | |
Net gain on sales of mortgage loans | (2,179,000) | (1,549,000) | (2,649,000) |
Net (gain) loss on sales of premises/equipment | (16,000) | 19,000 | 195,000 |
Net (gain) loss on sales of other real estate | 123,000 | (200,000) | (3,897,000) |
Net gain from sale of bank branches | (4,378,000) | ||
Bank owned life insurance | (523,000) | ||
Proceeds from sales of held for sale loans | 105,648,000 | 83,258,000 | 121,020,000 |
Held for sale loans originated for resale | (110,161,000) | (75,887,000) | (129,699,000) |
Net changes in assets and liabilities: | |||
Accrued interest receivable | (254,000) | 311,000 | 1,030,000 |
Other assets | (1,155,000) | (3,569,000) | 5,969,000 |
Income taxes receivable / payable | (731,000) | (583,000) | 24,618,000 |
Excess tax expense from share-based payment arrangements | (2,000) | (15,000) | |
Accrued interest payable | 57,000 | (76,000) | (284,000) |
Other liabilities | 915,000 | 638,000 | (1,678,000) |
Net cash provided by operating activities | 14,932,000 | 26,703,000 | 45,239,000 |
Investing activities: | |||
Proceeds from sales of available for sale securities | 1,419,000 | 2,744,000 | |
Held to maturity securities | 2,060,000 | 2,250,000 | 5,000,000 |
Available for sale securities | 98,904,000 | 79,282,000 | 108,498,000 |
Redemptions of other investments | 696,000 | 391,000 | |
Purchases of held to maturity securities | (1,629,000) | (1,725,000) | (5,250,000) |
Purchases of available for sale securities | (115,710,000) | (51,344,000) | (140,473,000) |
Purchases of bank owned life insurance | (20,000,000) | ||
Loans originated, net of principal repayments | (169,426,000) | (166,971,000) | 113,588,000 |
Cash outflows from sale of bank branches, net | (94,806,000) | ||
Cash received in business combinations, net of cash paid | 12,284,000 | ||
Purchases of premises and equipment | (2,177,000) | (2,096,000) | (1,855,000) |
Proceeds from sales of premises and equipment | 76,000 | 99,000 | 68,000 |
Proceeds from sales of other real estate | 1,185,000 | 1,401,000 | 16,645,000 |
Net cash provided by (used in) investing activities | (194,433,000) | (231,795,000) | 99,356,000 |
Financing activities: | |||
Net increase (decrease) in deposits | 104,876,000 | 80,488,000 | (125,492,000) |
Net increase (decrease) in other borrowings | 24,367,000 | (1,253,000) | 10,270,000 |
Net proceeds from issuance of common stock | 682,000 | 385,000 | 229,000 |
Repurchase of common stock warrant | (2,287,000) | ||
Purchases of treasury stock | (8,624,000) | (10,302,000) | |
Redemption of trust preferred securities | (35,570,000) | ||
Excess tax expense from share-based payment arrangements | 2,000 | 15,000 | |
Common stock dividends paid | (4,607,000) | (3,131,000) | |
Net cash used in financing activities | 116,694,000 | 66,189,000 | (152,835,000) |
Net decrease in cash and cash equivalents | (62,807,000) | (138,903,000) | (8,240,000) |
Cash and cash equivalents: | |||
Beginning of period | 140,936,000 | 279,839,000 | 288,079,000 |
End of period | $ 78,129,000 | $ 140,936,000 | $ 279,839,000 |
Consolidated Statement Of Share
Consolidated Statement Of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Gain/(Loss) [Member] | Treasury Stock [Member] | Total |
Beginning balance, Shares at Dec. 31, 2012 | 19,529,705 | |||||
Beginning balance at Dec. 31, 2012 | $ 19,530 | $ 99,705 | $ 125,093 | $ 1,728 | $ 246,056 | |
Dividends declared: | ||||||
Warrant amortization | (2,287) | (2,287) | ||||
Net common stock issued under employee plans and related tax expense | $ 203 | 2,519 | 2,722 | |||
Net common stock issued under employee plans and related tax expense, shares | 203,221 | |||||
Other comprehensive income, net of tax | (4,739) | (4,739) | ||||
Net income | 17,435 | 17,435 | ||||
Ending balance, Shares at Dec. 31, 2013 | 19,732,926 | |||||
Ending balance at Dec. 31, 2013 | $ 19,733 | 99,937 | 142,528 | (3,011) | 259,187 | |
Dividends declared: | ||||||
Common | (3,131) | (3,131) | ||||
Net common stock issued under employee plans and related tax expense | $ 78 | 1,308 | 1,386 | |||
Net common stock issued under employee plans and related tax expense, shares | 77,951 | |||||
Other comprehensive income, net of tax | 2,616 | 2,616 | ||||
Treasury shares purchased | $ (10,302) | (10,302) | ||||
Treasury shares purchased, shares | (617,818) | |||||
Net income | 21,030 | 21,030 | ||||
Ending balance, Shares at Dec. 31, 2014 | 19,193,059 | |||||
Ending balance at Dec. 31, 2014 | $ 19,811 | 101,245 | 160,427 | (395) | (10,302) | 270,786 |
Dividends declared: | ||||||
Common | (4,624) | (4,624) | ||||
Stock issued for Bancshares acquisition | $ 1,214 | 20,152 | 21,366 | |||
Stock issued for Bancshares acquisition, shares | 1,213,985 | |||||
Net common stock issued under employee plans and related tax expense | $ 113 | 569 | 682 | |||
Net common stock issued under employee plans and related tax expense, shares | 113,166 | |||||
Other comprehensive income, net of tax | (895) | (895) | ||||
Treasury shares purchased | (8,624) | (8,624) | ||||
Treasury shares purchased, shares | (513,408) | |||||
Net income | 17,407 | 17,407 | ||||
Ending balance, Shares at Dec. 31, 2015 | 20,006,802 | |||||
Ending balance at Dec. 31, 2015 | $ 21,138 | $ 121,966 | $ 173,210 | $ (1,290) | $ (18,926) | $ 296,098 |
Consolidated Statement of Shar8
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statement Of Shareholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.24 | $ 0.16 |
Summary of Significant Accounti
Summary of Significant Accounting And Reporting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting And Reporting Policies [Abstract] | |
Significant Accounting And Reporting Policies | SOUTHWEST BANCORP, INC. Notes to the Consolidated Financial Statements For the Years Ended Decem ber 31, 2015, 2014 and 2013 Note 1: Summary of Significant Accounting and Reporting Policies Organization and Nature of Operations – Southwest Bancorp Inc. (“we”, “our”, “us”, or “Southwest”), incorporated in 1981, is a financial holding company headquartered in Stillwater, Oklahoma engaged primarily in commercial and retail financial services in the states of Oklahoma, Texas, Kansas , and Colorado . The accompanying consolidated financial statements include the accounts of Bank SNB, an Oklahoma banking corporation established in 1894, and the consol idated subsidiaries of Bank SNB . Bank SNB is a w holly owned, direct subsidiary of ours. All significant intercompany balances and transactions have been eliminated in consolidation. On October 9, 2015, we completed the acquisition of First Commercial Bancshares , Inc. (“Bancshares” or “FCBI”) , through the merger of Bancshares with a nd into us (the “Merger”). The M erger was consummated pursuant to the Agreement and Plan of Reorganization (“the “Merger Agreement”) dated as of May 27, 2015. The Merger expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also expands our geographic footprint to Colorado with three branches in Denver and one in Colorado Springs. As of the close of business on November 15, 2013, we effected an affiliated merger of our wholly-owned subsidiary banks, Bank of Kansas and Stillwater National Bank and Trust Company (“Stillwater National”) , whereby Bank of Kansas merged with and into Stillwater National. Stillwater National was rebranded Bank SNB (“Bank SNB”) in connection with the merger. The consolidated bank offers customers a greater banking experience across our f our state region and now does business in all markets under the new name, Bank SNB. Bank SNB converted to an Oklahoma state-chartered member bank effective October 1, 2014. Basis of Presentation – The accounting and reporting policies conform to accounting principles generally accepted in the United States and to generally accepted practices within the banking industry. The Consolidated Financial Statements include the accounts of Southwest and all other entities in which we have a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior year amounts on the Consolidated Statements of Operations to conform to current year presentation. We have evaluated subsequent events for potential recognition and disclosure through the issue date of the Consolidated Financial Statements included in this Annual Report on Form 10-K. Management Estimates – In preparing our financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilitie s as of the dates shown on the Consolidated Statements of Financial C ondition and revenues and expenses during the periods reported. Actual results could differ significantly from those estimates. Changes in economic conditions could affect the determination of material estimates such as the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, income taxes, and the fair value of financial instruments. Cash and Cash Equivalents – For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from depository institutions, and federal funds sold. Interest-bearing balances held at depository institutions were $ 53.2 million at December 31, 201 5 and $ 121.2 million at December 31, 201 4 . Federal funds sold are sold for one-to-four day periods. Cash paid for interest tot aled $ 7.0 milli on in 201 5 , $ 6.9 million in 201 4 , and $ 11.5 million in 201 3 . Cash paid for income taxes totale d $ 7.1 m illion in 201 5 , $ 4.0 million in 201 4 , and $ 0.4 million in 201 3 . Noncash transactions included stock issued for the acquisition of Bancshares of $21.4 million in 2015 and transfer of loans to other real estate t otaling $ 0.3 million in 201 5 and $ 2.2 million in 201 4 and $2.6 million in 201 3 . Bank SNB is required by the FRB to maintain average reserve balances. Cash and cash equivalents in the Consolidated Statements of Financial Condition include restricted amounts of $ 7.0 mil lion and $ 2.0 million at December 31, 201 5 and December 31, 201 4 , respectively. Investment Securities – Investments in debt and equity securities are identified as held to maturity or available for sale based on management considerations of asset/liability strategy, changes in interest rates and prepayment risk, the need to increase liquidity, and other factors, including management’s intent and ability to hold securities to maturity. We have the ability and intent to hold to maturity our investment securities classified as held to maturity. We had no investments held for trading purposes for any period presented. Under certain circumstances (including the deterioration of the issuer’s creditworthiness, a change in tax law, or statutory or regulatory requirements), we may change the investment security classification. The classifications we utilize determine the related accounting treatment for each category of investments. Available for sale securities are accounted for at fair value with unrealized gains or losses, net of taxes, excluded from operations and reported as accumulated other comprehensive income or loss. Held to maturity securities are accounted for at amortized cost. Securities with limited marketability, such as FRB stock, FHLB stock, and certain other investments, are carried at cost and included in other assets. All investment securities are adjusted for amortization of premiums and accretion of discounts. Amortization of premiums and accretion of discounts are recorded to operations over the contractual maturity or estimated life of the individual investment using the level yield method. Gain or loss on sale of investments is based upon the specific identification method. Income earned on our investments in state and political subdivisions generally is not subject to ordinary Federal income tax. In accordance with authoritative accounting guidance under ASC 320, Debt and Equity Securities , declines in fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Under this guidance, we evaluate investment securities for other-than-temporary impairment on at least a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. Federal Reserve Bank and Federal Home Loan Bank Stock – Bank SNB is a m ember of its regional FRB and FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings a nd other factors, and may invest in additional accounts. Both FRB and FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans – Interest on loans is accrued and credited to operations based upon the principal amount outstanding. Loan origination fees and certain costs of originated loans are amortized as an adjustment to the yield over the term of the loan. Net unamortized deferred loan fees wer e $ 1.5 million at December 31, 2015 and $1.0 million at 2014. Loans are reported at the principal balance outstanding net of the unamortized deferred loan fees. In general, our policy for nonaccrual loans requires that accrued interest income on nonaccrual loans is written off after the loan is 90 days past due, and that subsequent interest income is recorded when cash receipts are received from the borrower. We identify past due loans based on contractual terms on a loan by loan basis. A loan is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The allowance for loan losses related to loans that are evaluated for impairment is based either on the discounted cash flows using the loan’s initial effective interest rate or on the fair value of the collateral for certain collateral dependent loans. Smaller balance, homogeneous loans, including mortgage, and consumer, are collectively evaluated for impairment. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Loans Held for Sale -- We originate real estate mortgage loans for either portfolio investment or sale in the secondary market. During the period of origination, real estate mortgage loans are designated as held either for investment purposes or sale. Mortgage loans held for sale are generally sold within a one-month period from loan closing at amounts determined by the investor commitment based upon the pricing of the loan. Loans Acquired through Business Combination with Deteriorated Credit Quality – The accounting guidance of ASC 310.30, Loan and Debt Securities Acquired with Deteriorated Credit Quality , applies to loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payment receivables. In accordance with this guidance, these loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield”, is recognized as interest inc ome over the life of the loan using a method that approximates the level-yield method. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acqui sition, or the “nonaccretable difference”, are not recognized as a yield adjustment, a loss accrual, or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairments. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. Loss Share Receivable – Bank SNB and the FDIC entered into loss sharing agreements that provide d Bank SNB with significant protection against credit losses from loans and related assets acquired in the FNBA FDIC-assisted transaction. Under these agreements, the FDIC reimburse d Bank SNB 80 % of net losses up to $ 35.0 million on covered assets, primarily acquired loans and other real estate, and 95 % of any net losses above $ 35.0 million. Bank SNB service d the covered asse ts. The loss sharing agreement had a term of ten years for one-to-four family residential loans and five years for all other lo an types. The five-year period for other loans expired June 30, 2014. T he expected payments from the FDIC under the loss sharing agreements are recorded as part of loans receivable in our Consolidated Statements of Financial Condition. As of December 31, 2015, the loss share receivable is zero . On April 10, 2015, Bank SNB entered into an agreement with the FDIC to terminate these loss sharing agreements with the FDIC. All future recoveries, charge-offs, and expenses related to these covered assets are now recognized entirely by Bank SNB. The difference between the undiscounted expected recoveries at acquisition and the fair value of the loss share receivable is the “accretable portion” and is recognized as interest income over the estimated life of the acquired loan portfolio. The initially recorded loss share receivable represented 85% of the aggregate loan discount related to the acquired loan portfolio. Because of the relationship of the loss share receivable to the loan discount, when an adjustment is made to a loan discount to reflect changes in the expected cash flows of the loan, an adjustment to the corresponding loss share receivable attributable to that loan will also occur. Allowance for Loan Losses – The allowance for loan losses is a reserve established through a provision for loan losses charged to operations. Loan amounts which are determined to be uncollectible are charged against this allowance, and recoveries, if any, are added to the allowance. The appropriate amount of the allowance is based on continuous review and evaluation of the loan portfolio and ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance for loan losses is determined in accordance with regulatory guidelines and generally accepted accounting principles and is comprised of two primary components, specific and general. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The specific component relates to loans that are individually classified as impaired. Loans deemed to be impaired are evaluated on an individual basis consistent with ASC 310.10.35, Receivables: Subsequent Measurement . The amount and level of the impairment allowance is ultimately determined by management’s estimate of the amount of expected future cash flows or, if the loan is collateral dependent, on the value of the collateral, which may vary from period to period depending on changes in the financial condition of the borrower or changes in the estimated value of the collateral. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and deemed as impaired, and classified as nonperforming, potential problem, or performing restructured as applicable. Charge-offs against the allowance for impaired loans are made when and to the extent the loan is deemed uncollectible. The general component of the allowance is calculated based on ASC 450, Contingencies . Loans not evaluated for specific allowance are segmented into loan pools by type of loan. The commercial real estate and real estate construction pools are further segmented by the market in which the loan collateral is located. Our primary markets are Oklahoma, Texas, Kansas , and Colorado , and loans secured by real estate in those states are included in the “in-market” pool, with the remaining defaulting to the “out-of-market” pool. Estimated allowances are based on historical loss trends with adjustments factored in based on qualitative risk factors both internal and external to us. The historical loss trend is determined by loan pool and segmentation and is based on the actual loss history experienced by us over the most recent three years. The qualitative risk factors include, but are not limited to, economic and business conditions, changes in lending staff, lending policies and procedures, quality of loan review, changes in the nature and volume of the portfolios, loss and recovery trends, asset quality trends, and legal and regulatory considerations. Independent appraisals on real estate collateral securing loans are obtained at origination. New appraisals are obtained periodically and upon discovery of factors that may significantly affect the value of the collateral. Appraisals usually are received within 30 days of request. Results of appraisals on nonperforming and potential problem loans are reviewed promptly upon receipt and also are reviewed monthly and considered in the determination of the allowance for loan losses. We are not aware of any significant time lapses in the process that have resulted, or would result in, a significant delay in determination of a credit weakness, the identification of a loan as nonperforming, or the measurement of an impairment. Management strives to carefully monitor credit quality and to identify loans that may become nonperforming. At any time, however, there are loans included in the portfolio that will result in losses but that have not been identified as nonperforming or potential problem loans. Because the loan portfolio contains a significant number of commercial and commercial real estate loans with relatively large balances, the unexpected deterioration of one or a few of such loans may cause a significant increase in nonperforming assets and may lead to a material increase in charge-offs and the provision for loan losses in future periods. Liability for Credit Losses on Unfunded Loan Commitments – Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The reserve for unfunded loan commitments is a liability on our C onsolidated S tatement s of F inancial C ondition in other liabilities. The reserve is computed using a methodology similar to that used to determine the allowance for loan losses, modified t o take into account the probability of a drawdown on the commitment. At December 31, 2015 and 2014 the balance was $ 2.4 mill ion. Premises and Equipment – Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis over the estimated useful life of each asset. Useful liv es range from 10 years to 40 years for buildings and improvements, and 3 years to 10 years for furniture, fixtures, and equipment. We review the carrying value of long-lived assets used in operations when changes in events or circumstances indicate that the assets might have become impaired. If circumstances required, the review would initially include a comparison of carrying value to the undiscounted cash flows estimated to be generated by those assets. If this review indicates that an asset is impaired, we would record a charge to operations to reduce the asset’s carrying value to fair value, which is based on estimated discounted cash flows. Long-lived assets that are held for disposal are valued at the lower of the carrying amount or fair value less costs to sell. Other Real Estate – Assets acquired through or instead of loan foreclosure are considered other real estate. Other real estate is initially recorded at the lesser of the carrying value or fair value less the estimated costs to sell the asset. Write-downs of carrying value required at the time of foreclosure are recorded as a charge to the allowance for loan losses. Costs related to the development of such real estate are capitalized, and costs related to holding the property are expensed. Foreclosed property is subject to periodic revaluation based upon estimates of fair value. In determining the valuation of other real estate, management obtains independent appraisals for significant properties. Valuation adjustments are provided, as necessary, by charges to operations. Profits and losses from operations or sales of foreclosed property are recognized as incurred . At December 31, 201 5 and 201 4 , the balances of other real estate w ere $2.3 m illion and $ 3.1 million, respectively. Goodwill and Other Intangible Assets – Intangible assets consist of goodwill, core deposit intangibles, and loan servicing rights. Goodwill and core deposit intangibles, which generally result from a business combination, are accounted for under the provisions of ASC 350, Intangibles - Goodwill and Other , and ASC 805, Business Combinations. Loan servicing rights are accounted for under the provisions of ASC 860, Transfers and Servicing . Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired and is assigned to reporting units. Goodwill is not amortized, but is tested for impairment at least annually or more frequently if conditions indicate impairment may exist . The evaluation of possible impairment involves significant judgment based upon short-term and long-term projections of future performance of each reporting unit. Core deposit intangibles are amortized using an economic life method based on deposit attrition. As a result, amortization will decline over time with most of the amortization occurring during the initial years. The net book value of core deposit intangibles is adjusted for applicable branch sales, if any, and is evaluated for impairment when economic conditions indicate impairment may exist. When real estate mortgage loans and other loans are sold with servicing retained, an intangible servicing right is initially capitalized based on estimated fair value at the point of origination with the income statement effect recorded in gains on sales of loans. The servicing rights are amortized over the period of estimated net servicing income. Impairment of loan servicing rights is assessed based on the fair value of those rights. We review the carrying value of loan servicing rights quarterly for impairment. At least annually, we obtain estimates of fair value from outside sources to corroborate the results of the valuation model. At December 31, 2015 and 2014, the fair values of loan servicing rights were $3.7 million and $ 3.5 mi llion , respectively . Fair Value Measurements – ASC 820, Fair Value Measurements , defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parame ters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Derivative Financial Instruments – Our derivative credit risk policy and our hedging policy permits the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on our balance sheet. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. We consider a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80 % to 125 % of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, we will formally assess whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, we will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. Our qualified customers have the opportunity to participate in our interest rate swap program for the purpose of managing interest rate risk on their variable rate loans with us. If we enter into such agreements with customers, then offsetting agreements are executed between us and approved dealer counterparties to minimize our market risk from changes in interest rates. The counterparty contracts are identical to customer contracts in terms of notional amounts, interest rates, and maturity dates , except for a fixed pricing spread or fee paid to us by the dealer counterparty. These interest rate swaps carry varying degrees of credit, interest rate and market or liquidity risks. The fair value of such derivative instruments are recognized as either non-hedge derivative assets or liabilities in the Consolidated Statements of Financial C ondition. Loan Servicing Income – We earn fees for servicing real estate mortgages and other loans owned by others. These fees are generally calculated on the outstanding principal balance of the loans serviced and are recorded as income when earned. Taxes on Income – We file consolidated income tax returns with our subsidiaries. Income tax expense is the total of the current year income tax due or refundable, adjusted for permanent differences between items reported in the financial statements and those reported for tax purposes and the change in deferred tax assets and liabilities. Under the asset and liability method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The net deferred tax asset is reflected as a co mponent of other assets on the C onsolidated Statements of Financial Condition . A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and result s of recent operations. Management reviewed all evidence and concluded that a valuation allowance was not needed. Earnings per Common Share – ASC 260 , Earnings Per Share , provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We ha ve determined that our unvested restricted stock awards are participating securities. Accordingly, earnings per common share is computed using the two-class method prescribed by ASC 260. Using this method, basic earnings per common share is computed based upon net income available to common shareholders divided by the weighted average number of common shares outstanding during each period, which exclude the outstanding unvested restricted stock. Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock options using the treasury stock method. Stock options and warrants, where the exercise price was greater than the average market price of common shares, were not included in the computation of earnings per diluted share as they would have been ant idilutive. For t he years ended December 31, 2015, 2014, and 2013 we had 0 in antidilutive options to purchase common shares, respectively. In 2013, an antidilutive warrant to purchase 703,753 shares of common stock was repurchased. A reconciliation of the weighted-average common shares used in the calculations of basic and diluted earnings per common share for the reported periods is provided at “ Note 1 5 Earnings per Common Share ” . Share-Based Compensation – The Southwest Bancorp, Inc. 2008 Stock Based Award Plan (the “2008 Stock Plan”), provides selected key employees with the opportunity to acquire common stock through stock options or restricted stock awards. Compensation cost is recognized based on the fair value of these awards at the date of grant. The exercise price of all options granted under the 2008 Stock Plan is the fair market value on the grant date, while the market price of our common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Depending upon terms of the stock option agreements, stock options generally become exercisable on an annual basis and expire from five to ten years after the date of grant. The 2008 Stock Plan authorized awards for up to 800,000 shares of our common stock over its ten -year term. Comprehensive Income – Our comprehensive income (net income plus all other changes in shareholders’ equity from non-equity sources) consists of our net income, the after tax effect of changes in the net unrealized gains (losses) in our available for sale securities, reclassification adjustments for net (gains) losses, and changes in the accumulated gain (loss) on the effective cash flow hedging instrument. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | N ote 2: A cquisitions On October 9, 2015, we completed the acquisition of Bancshares, through the merger of Bancshares with a nd into us (the “Merger”). The M erger was consummated pursuant to the Agreement and Plan of Reorganization (“the “Merger Agreement”) dated as of May 27, 2015. The Merger expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten . It also expands our geographic footprint to Colorado with three branches in Denver and one in Colorado Springs. Under the t erms of the Merger Agreement, at the effective time of the Merger, all outstanding shares of Bancshares common stock were converted into the right to receive an aggregate merger consideration of $41. 8 million, 51% pa id in shares of our common stock, representing an aggregate 1,213,985 shares of our common stock, plus cash in lieu of any fractional shares, and 49% pa id in cash in an aggregate amount equal to $20.4 million. The Merger added $ 301.5 million in assets, $2 02.4 million in loans, $245. 2 million in deposits, $12.3 million in goodwill, and $2.7 million in core deposit intangible. In connection with the Merger, First Commercial Bank was merged with and into Bank SN B, with Bank SNB the surviving b ank, and all systems, products, and services were successfully integrated to our platform. The following is a reconciliation of cash received from the acquisition of Bancshares as of the acquisition date: (Dollars in thousands) Fair value of assets acquired $ 301,499 Liabilities assumed (259,718) Net assets acquired 41,781 Stock issued as consideration (21,366) Cash acquired (32,699) Cash received in business combination, net of cash paid $ (12,284) The acquisition of the net assets of Bancshares consti tutes a business combination as defined by the FASB ASC Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of FASB ASC Topic 820, Fair Value Measurements. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date: First Commercial Bancshares, Inc. Acquired from Bancshares Fair Value Adjustments Fair Value (Dollars in thousands) Assets, Acquired Cash and due from banks $ 5,874 $ - $ 5,874 Interest-bearing deposits with other banks 17,196 - 17,196 Federal funds sold 9,629 - 9,629 Cash and cash equivalents 32,699 - 32,699 Investment securities 34,762 (184) 34,578 Loans 210,223 (7,790) 202,433 Allowance for loan losses 4,298 (4,298) - Total loans receivable 205,925 (3,492) 202,433 Bank premises and equipment, net 4,241 1,341 5,582 Cash value of life insurance 7,153 - 7,153 Accrued interest receivable 790 - 790 Deferred tax asset 1,650 15 1,665 Core deposit intangible 55 2,646 2,701 Other assets 1,644 - 1,644 Total assets acquired $ 288,919 $ 326 $ 289,245 Liabilities, Assumed Deposits Demand and non-interest bearing $ 101,464 $ - $ 101,464 Savings and interest-bearing transaction accounts 59,356 - 59,356 Time deposits 84,410 - 84,410 Total Deposits 245,230 - 245,230 Other borrowings 7,180 - 7,180 Accrued interest payable and other liabilities 1,833 320 2,153 Subordinated debentures 5,155 - 5,155 Total liabilities assumed 259,398 320 259,718 Equity Equity 31,158 (31,158) - Total equity assumed 31,158 (31,158) - Total liabilities and equity assumed $ 290,556 $ (30,838) $ 259,718 Net assets acquired 29,527 Purchase price 41,781 Goodwill $ 12,254 The following is a description of the methods used to determine the fair values of sig nificant assets and liabilities presented above: Cash and due from banks, interest-bearing deposits with other banks and federal funds sold – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Investment securities – Investment securities were acquired from Bancshares with a $0.2 million adjustment to market value based upon quoted market prices or other observable inputs . Loans – Fair values for loans were based on a discounted cash flow methodology th at considered factors including the type of loan and related collateral, classification status, fixed or variable interest ra te, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for lo ans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns. We evaluated $ 200.0 million of the loans purchased in conjunction wit h the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, and those loans were recorded with a $ 4.5 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted average life of the loans using a constant yield method. The remaining $7.8 mil lion of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $ 3.3 million discount. These purchase d credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows. Bank premises and equipment – Bank buildings and land were acquired with an adjustment to fair value . Other bank premises and equipment were acquired at the carrying amount of the assets. Cash value of life insurance – Cash value of life insurance was acquired at market value. Accrued interest receivable – Accrued interest receivable was acquired at market value. Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at our estimated federal income tax rate of 3 6.00 % . Goodwill – The consideration paid as a result of the acquisition exceeded the fair value of the net assets acquired; therefore, the Company recorded $12. 3 million of goodwill. Goodwill established prior to the acquisition was written off. Core deposit intangible – This intangible asset represents the value of the relation ships that Bancshares had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $ 2.7 million of gross core deposit intangible. Other assets – Other assets were acquired at carrying value, which approximates market value. Deposits – The fair values used for the demand and savings deposits that co mprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. No fair value adjustment was applied for time deposits because the weighted average interest rate of B ancshare ’s certificates of deposits were at the market rates for similar fun ding at the time of acquisition Other borrowing s – The fair value of other borrowings is estimated based on borrowing rates currently available to us for borrowings with similar terms and maturities. Accrued interest payable and other liabilities – The fair value used represents the adjustment of certain estimated liabilities from B ancshares . Subordinated debentures – Subordinated debentures were acquired at carrying value, which approximates market value. The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. We will continue to review the estimated fair values of loans, deposits, property and equipment, intangible assets, and other assets and liabilities, and the assumed tax positions and contingencies. Our operating results for the period ended December 31, 2015, include the operating results of the acquired assets and assumed liabilities subsequent to the acquisition date. The following unaudited pro forma condensed financial information presents our results of operations, including the effects of the purchase accounting adjustments and acquisition expenses, had the acquisition taken place at the beginning of the period presented : For the year ended December 31, 2015(1) 2014 (Dollars in thousands except per share data) Interest income $ 84,399 $ 84,710 Interest expense 8,049 8,236 Net interest income 76,350 76,474 Provision for loan losses (3,080) (6,398) Non-interest income 16,292 21,439 Non-interest expense (2) 68,860 67,779 Income before taxes 26,862 36,532 Income taxes 9,601 13,646 Net income 17,261 22,886 Earnings allocated to participating securities (258) (253) Numerator for earnings per common share $ 17,003 $ 22,633 Earnings per share: Basic $ 0.90 $ 1.10 Diluted 0.89 1.09 Basic weighted average shares outstanding 18,975,450 20,631,471 Diluted weighted average shares outstanding 19,129,533 20,774,348 ( 1 ) Subsequent to the M erger date, activity related to Bancshares contributed pre-tax revenues of $2.9 million and incurred pre-tax expenses of $1.2 million, resulting in $1.1 million total contribution to our net income. We incurred pre-tax non-recurring expenses totaling $1.9 million, including: $0.5 million in personnel related expenses, $0.4 million in data processing expenses, $0.5 million in legal, accounting and investment banker expenses, and $0.5 million in marketing and other expenses. (2) The 2015 pro forma non-interest expense is adjusted to exclude $2.5 million of pre-tax non-recurring expenses incurred by Bancshares prior to the Merger date attributed to the following: $0.7 million in employee related expenses, $0.4 million in legal expenses, and $1.4 million to discount a loan pursuant to a provision of the Merger Agreement. Acquired Loans . Changes in the carrying amounts and accretable yields for all ASC 310.30 loans were as follows for the year ended December 31, 2015 and 2014 . For the year ended December 31, 2015 2014 Carrying Carrying Accretable amount Accretable amount (Dollars in thousands) Yield of loans Yield of loans Balance at beginning of period $ 540 $ 4,971 $ 1,597 $ 16,427 Acquisition (11) 4,396 - - Payments received 1 (1,814) (18,681) (11,049) Transfers to other real estate / repossessed assets 541 - - - Net charge-offs - (81) (10) (407) Net reclassifications to / from nonaccretable amount 240 - - - Accretion (504) 442 (1,047) - Balance at end of period $ 807 $ 7,914 $ 540 $ 4,971 |
Disposals
Disposals | 12 Months Ended |
Dec. 31, 2015 | |
Disposals [Abstract] | |
Disposals | N ote 3: D isposals During the second quarter of 2014, we sold a bank branch in Overland Park , Kansas to Fidelity Bank in Wichita, Kansas, and branch banks in Anthony and Harper, Kansas to BancCentral, National Association, in Alva, Oklahoma. The sold branches had combined total deposits of $130.6 million and loans of $27.9 million. These transactions resulted in a net gain of $4.4 million, which is included under noninterest income in the g ain on sale of bank branches, no t as a separate line item on the C onsolidated Statements of O perations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Investment Securities | Note 4 : Investment Securities A summary of the amortized cost and fair values of investment securities follows: Amortized Gross Unrealized Fair (Dollars in thousands) Cost Gains Losses Value At December 31, 2015 Held to Maturity: Obligations of state and political subdivisions $ 11,797 $ 488 $ (3) $ 12,282 Total $ 11,797 $ 488 $ (3) $ 12,282 Available for Sale: Federal agency securities $ 78,363 $ 220 $ (373) $ 78,210 Obligations of state and political subdivisions 47,079 620 (134) 47,565 Residential mortgage-backed securities 240,804 936 (1,852) 239,888 Asset-backed securities 9,639 - (224) 9,415 Corporate debt 25,251 148 (146) 25,253 Total $ 401,136 $ 1,924 $ (2,729) $ 400,331 At December 31, 2014 Held to Maturity: Obligations of state and political subdivisions $ 12,362 $ 528 $ (10) $ 12,880 Total $ 12,362 $ 528 $ (10) $ 12,880 Available for Sale: Federal agency securities $ 99,959 $ 359 $ (772) $ 99,546 Obligations of state and political subdivisions 32,760 519 (140) 33,139 Residential mortgage-backed securities 177,391 1,686 (850) 178,227 Asset-backed securities 9,608 - (60) 9,548 Corporate debt 32,557 240 (26) 32,771 Total $ 352,275 $ 2,804 $ (1,848) $ 353,231 Residential mortgage-backed securities consist of agency securities underwritten and guaranteed by Government National Mor tgage Association , Federal Home Loan Mort gage Corporation , and Federal National Mortga ge Association . Securities with limited marketability, such as FRB stock, F HLB stock, and certain other investments, are carried at cost and included in other assets on our Consolidated Statements of Financial Condition. Total investments carried at cost w ere $ 10.4 mill ion and $ 7.4 milli on at December 31, 201 5 and 201 4 , respectively. There are no identified events or changes in circumstances that may have a significant adverse effect on the investments carried at cost. A comparison of the amortized cost and approximate fair value of our investment securities by maturity date at December 31, 201 5 follows: Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value One year or less $ 17,439 $ 17,290 $ 1,677 $ 1,675 More than one year through five years 270,730 270,250 5,623 5,784 More than five years through ten years 103,016 102,612 4,497 4,823 More than ten years 9,951 10,179 - - Total $ 401,136 $ 400,331 $ 11,797 $ 12,282 The foregoing analysis assumes that our residential mortgage-backed securities mature during the period in which they are estimated to prepay. No other prepayment or repricing assumptions have been applied to our investment securities for this analysis. Gain or loss on sale of investments is based upon the specific identification method. Sales of securities available for sale are as follows: (Dollars in thousands) 2015 2014 2013 Proceeds from sales $ 162 $ 2,545 $ 2,744 Gross realized gains 162 1,120 - Gross realized losses - - - The following table shows securities with gross unrealized losses and their fair values by the length of time that the individual securities had been in a continuous unrealized loss position at December 31, 201 5 and 201 4 . Securities whose market values exceed cost are excluded from this table. Continuous Unrealized Amortized cost of Loss Existing for: Fair value of Number of securities with Less Than More Than securities with (Dollars in thousands) Securities unrealized losses 12 Months 12 Months unrealized losses At December 31, 2015 Held to Maturity: Obligations of state and political subdivisions 1 $ 1,677 $ - $ (3) $ 1,674 1 $ 1,677 $ - $ (3) $ 1,674 Available for Sale: Federal agency securities 14 $ 42,438 $ (138) $ (235) $ 42,065 Obligations of state and political subdivisions 14 11,765 (57) (77) 11,631 Residential mortgage-backed securities 87 175,043 (1,247) (605) 173,191 Asset-backed securities 3 9,639 (115) (109) 9,415 Other Securities 6 14,987 (75) (71) 14,841 Total 124 $ 253,872 $ (1,632) $ (1,097) $ 251,143 At December 31, 2014 Held to Maturity: Obligations of state and political subdivisions 1 $ 1,718 $ (10) $ - $ 1,708 1 $ 1,718 $ (10) $ - $ 1,708 Available for Sale: Federal agency securities 13 $ 60,578 $ (37) $ (735) $ 59,806 Obligations of state and political subdivisions 8 10,076 - (140) 9,936 Residential mortgage-backed securities 40 65,223 (110) (740) 64,373 Asset-backed securities 3 9,608 (19) (41) 9,548 Other Securities 2 9,571 (3) (23) 9,545 Total 66 $ 155,056 $ (169) $ (1,679) $ 153,208 We evaluate all securities on an individual basis for other-than-temporary impairment on at least a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of us to retain our investment in the issuer for a period of time sufficient to allow for an anticipated recovery in fair value. Management has the ability and intent to hold the securities classified as held to maturity in the table above until they mature, at which time we expect to receive full value for the securities. Furthermore, as of December 31, 201 5 , management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that we will most likely not have to sell any such securities before a recovery of cost. The declines in fair value were attributable to increases in market interest rates over the yields available at the time the underlying securities were purchased or increases in spreads over market interest rates. Management does not believe any of the securities are impaired due to credit quality. Accordingly, as of December 31, 201 5 , management believes the impairment of these investments is not deemed to be other-than-temporary. As required by law, available for sale investment securities are pledged to secure public and trust deposits, sweep agreements, borrowings from the FHLB, and for other applicable purposes. Securities with an amortized cost of $ 174.0 million and $ 218.5 million were pledged to meet such requirements at December 31, 2015 and 2014, respectively. A ny amount over-pledged can be released at any time. |
Loans And Allowance For Loan Lo
Loans And Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans And Allowance For Loan Losses [Abstract] | |
Loans And Allowance For Loan Losses | Note 5 : Loans and Allowance for Loan Losses We exten d commercial and consumer credit primarily to customers in the states of Oklahoma, Texas, Kansas , and Colorado . Our commercial lending operations are concentrated in Oklahoma City, Dallas, Tulsa, and other metropolitan markets in Texas, Kansas, Oklahoma , and Colorado . As a result, the collectability of our loan portfolio can be affected by changes in the economic conditions in those states a nd markets. Please see “Note 20 Operating Segments ” for more detail regarding loans by market. At December 31, 2015 and 2014, substantially all of our loans were collateralized with real estate, inventory, accounts receivable, and/or other assets or were guaranteed by agencies of the United States government. Due to the immateriality of the remaining balance of loans covered under the loss sharing agreement with the FDIC, covered and noncovered loans have been combined for reporting purposes. Prior period numbers have also been adjusted to reflect this change. This adjustment has no financial statement impact. Our loan classifications were as follows: (Dollars in thousands) At December 31, 2015 At December 31, 2014 Real estate mortgage: Commercial $ 938,462 $ 752,971 One-to-four family residential 161,958 77,531 Real estate construction: Commercial 129,070 186,659 One-to-four family residential 21,337 10,464 Commercial 507,173 350,410 Installment and consumer: Guaranteed student loans - 37 Other 21,429 21,919 1,779,429 1,399,991 Less: Allowance for loan losses (26,106) (28,452) Total loans, net $ 1,753,323 $ 1,371,539 Concentrations of Credit . At Dec embe r 31, 201 5 , $ 425.7 million, or 24 %, of our loans consisted of loans to individuals and businesses in the healthcare industry. We do not have any other concentrations of loans to individuals or businesses involved in a single industry totaling 10% or more of total loans. Loans Held for Sale . We had loans which were h eld for sale of $ 7.5 mi llio n and $ 1.5 million at December 31, 201 5 and 2014, respectively. The loans currently classified as held for sale, primarily residential mortgage loans, are carried at the lower of cost or market value. A substantial portion of the one-to-four family residential loans and loan servicing rights , if not retained, are primarily sold to one investor. These mortgage loans are generally sold within a one -month period from loan closing at amounts determined by the investor commitment based upon the pricing of the loan. Loan Servicing . We earn fees for servicing real estate mortgages and other loans owned by others. The fees are generally calculated on the outstanding principal balance of the loans serviced and are recorded as noninterest income when earned. The unpaid principal balance of real estate mortgage loans serviced for ot hers t ota l ed $ 432.3 mi llion and $ 410.3 million at December 31, 2015 and 2014 , respectively. Loan servicing rights are capitalized based on estimated fair value at the point of origination. The servicing rights are amortized over the period of estimated net servicing income. Nonperforming / Past Due Loans . The following table shows the recorded investment in loans on nonaccrual status. At December 31, (Dollars in thousands) 2015 2014 Real estate mortgage: Commercial $ 3,543 $ 2,195 One-to-four family residential 1,729 1,100 Real estate construction: Commercial 1,010 73 Commercial 13,491 5,907 Other consumer 85 1 Total nonaccrual loans $ 19,858 $ 9,276 If interest on nonaccrual loans had been accrued, the interes t income as reported in the accompanying Consolidated Statements of Operations would have increased by approximately $ 0.8 mill ion, $ 0.7 million, and $ 1.2 million, for 2015, 2014, and 2013 , respectively. Net cumulative charge-offs against nonaccrual loa ns at December 31, 2015 and 2014 were $ 6.1 mi llion and $ 6.0 million, respectively. The following table shows the delinquency status of past due loans at the end of the respective reporting period. 90 days and Recorded loans 30-89 days greater Total past Total > 90 days and (Dollars in thousands) past due past due due Current loans accruing At December 31, 2015 Real estate mortgage: Commercial $ 272 $ 3,992 $ 4,264 $ 934,198 $ 938,462 $ 449 One-to-four family residential 549 1,777 2,326 159,632 161,958 48 Real estate construction: Commercial - 1,010 1,010 128,060 129,070 - One-to-four family residential - - - 21,337 21,337 - Commercial 278 13,491 13,769 493,404 507,173 - Other 65 88 153 21,276 21,429 3 Total $ 1,164 $ 20,358 $ 21,522 $ 1,757,907 $ 1,779,429 $ 500 At December 31, 2014 Real estate mortgage: Commercial $ 4,053 $ 2,195 $ 6,248 $ 746,723 $ 752,971 $ - One-to-four family residential 122 1,100 1,222 76,309 77,531 - Real estate construction: Commercial 2,177 73 2,250 184,409 186,659 - One-to-four family residential - - - 10,464 10,464 - Commercial 1,159 6,044 7,203 343,207 350,410 137 Other 162 1 163 21,793 21,956 - Total $ 7,673 $ 9,413 $ 17,086 $ 1,382,905 $ 1,399,991 $ 137 Impaired Loans . The following table presents loans individual ly evaluated for impairment by class of loans at the end of the respective reporting period. With No Specific Allowance With A Specific Allowance Unpaid Unpaid Recorded Principal Recorded Principal Related (Dollars in thousands) Investment Balance Investment Balance Allowance At December 31, 2015 Commercial real estate $ 12,166 $ 15,747 $ 10,940 $ 10,940 $ 1,575 One-to-four family residential 1,688 2,195 185 186 11 Real estate construction 1,078 1,327 - - - Commercial 4,095 5,430 9,844 15,968 2,526 Other 85 94 - - - Total $ 19,112 $ 24,793 $ 20,969 $ 27,094 $ 4,112 At December 31, 2014 Commercial real estate $ 12,382 $ 14,752 $ 11,497 $ 11,556 $ 2,047 One-to-four family residential 1,115 1,833 - - - Real estate construction 73 104 - - - Commercial 2,624 2,887 4,315 10,673 1,822 Other 1 2 - - - Total $ 16,195 $ 19,578 $ 15,812 $ 22,229 $ 3,869 The following table presents the average recorded investment and interest income recognized on impaired loans for the year ended December 31, 2015, 2014, and 2013 . As of and for the year ended December 31, 2015 2014 2013 Average Average Average Recorded Interest Recorded Interest Recorded Interest (Dollars in thousands) Investment Income Investment Income Investment Income Commercial real estate $ 25,044 $ 970 $ 30,257 $ 968 $ 63,125 $ 2,112 One-to-four family residential 2,323 1 2,764 1 4,645 1 Real estate construction 997 - 222 - 2,801 - Commercial 8,527 215 7,718 68 12,899 87 Other 51 - 16 - 129 - Total $ 36,942 $ 1,186 $ 40,977 $ 1,037 $ 83,599 $ 2,200 Included in interest income recognized on impaire d loans ar e $ 1.2 millio n, $ 1.0 million , and $2.2 million , for December 31, 2015, 2014, and 2013 , respectively, in interest on accruing troubled debt restructurings. Troubled Debt Restructurings. The loan portfolio also includes certain loans that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from loss mitigation activities and can include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Troubled debt restructurings are classified as impaired at the time of restructuring and classified as nonperforming, potential problem, or performing restructured, as applicable. Loans modified in troubled debt restructurings may be returned to performing status after considering the borrowers’ sustained repayment for a reasonable period of at least six months. When we modi fy loans in a troubled debt restructuring, an evaluation of any possible impairment is performed similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use of the current fair value of the collateral, less selling costs for collateral dependent loans. If it is determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), an impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, all loans modified in troubled debt restructurings are evaluated, including those that have payment defaults, for possible impairment. Troubled debt restructured loans out standing as of December 31, 2015 and 2014 are as follows: At December 31, 2015 At December 31, 2014 (Dollars in thousands) Accruing Nonaccrual Accruing Nonaccrual Commercial real estate $ 19,563 $ 448 $ 21,685 $ 1,082 One-to-four family residential 13 48 14 62 Commercial 659 5,796 1,032 655 Total $ 20,235 $ 6,292 $ 22,731 $ 1,799 At December 31, 2015 and 2014 , we had no significant commitments to lend additional funds to debtors whose loan terms have been modified in troubled debt restructuring. Loans modified as troubled debt restructurings that occurred during the year ended December 31, 2015 and 2014 are shown in the following tables: For the year ended December 31, 2015 2014 Number of Recorded Number of Recorded (Dollars in thousands) Modifications Investment Modifications Investment Commercial real estate - $ - 1 $ 5 Commercial 1 5,511 5 564 Total 1 $ 5,511 6 $ 569 The modifications of loans identified as troubled debt restructurings primarily related to payment extensions and/or reductions in the interest rate. The financial impact of troubled debt restructurings is not significant. As of December 31, 2015, there were no loans modified as a troubled debt restructuring which subsequently defaulted . As of December 31, 2014, there were no loans modified as a troubled debt restructuring which subsequently defaulted. Default, for this purpose, is deemed to occur when a loan is 90 days or more past due or transferred to nonaccrual and is within twelve months of restructuring. Credit Quality Indicators . To assess the credit quality of loans, we categorize loans into risk categories based on relevant information about the ability of the borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. This analysis is performed on a quarterly basis. We use the following definitions for risk ratings: Special mention – Loans classified as special mention have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for these loans or of the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligors or of the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. These loans are considered potential problem or nonperforming loans depending on the accrual status of the loans. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These loans are considered nonperforming. Loans not meeting the criteria above that are analyzed as part of the above described process are considered to be pass rated loans. As of December 31, 2015 and 2014 , based on the most recent analysis performed as of those dates, the risk category of loans by class is as follows: Commercial 1-4 Family Real Estate (Dollars in thousands) Real Estate Residential Construction Commercial Other Total At December 31, 2015 Grade: Pass $ 902,034 $ 157,912 $ 148,811 $ 480,928 $ 21,284 $ 1,710,969 Special Mention 5,916 29 586 2,941 50 9,522 Substandard 30,512 4,017 1,010 18,848 95 54,482 Doubtful - - - 4,456 - 4,456 Total $ 938,462 $ 161,958 $ 150,407 $ 507,173 $ 21,429 $ 1,779,429 At December 31, 2014 Grade: Pass $ 690,791 $ 76,322 $ 194,670 $ 331,594 $ 21,849 $ 1,315,226 Special Mention 34,287 22 420 7,144 106 41,979 Substandard 27,594 1,154 2,033 6,725 1 37,507 Doubtful 299 33 - 4,947 - 5,279 Total $ 752,971 $ 77,531 $ 197,123 $ 350,410 $ 21,956 $ 1,399,991 Allowance for Loan Losses . The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment evaluatio n method as of December 31, 2015 and 2014 . Commercial 1-4 Family Real Estate (Dollars in thousands) Real Estate Residential Construction Commercial Other Total At December 31, 2015 Balance at beginning of period $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Loans charged-off (489) (20) (21) (628) (193) (1,351) Recoveries 282 558 47 1,479 205 2,571 Provision for loan losses (755) (550) (1,652) (500) (109) (3,566) Balance at end of period $ 12,716 $ 700 $ 2,533 $ 9,965 $ 192 $ 26,106 Allowance for loan losses ending balance: Individually evaluated for impairment $ 1,575 $ 11 $ - $ 2,526 $ - $ 4,112 Collectively evaluated for impairment 11,141 689 2,533 7,439 192 21,994 Acquired with deteriorated credit quality - - - - - - Total ending allowance balance $ 12,716 $ 700 $ 2,533 $ 9,965 $ 192 $ 26,106 Loans receivable ending balance: Individually evaluated for impairment $ 20,332 $ 695 $ 391 $ 13,396 $ 47 $ 34,861 Collectively evaluated for impairment 913,242 159,672 149,344 493,026 21,370 1,736,654 Acquired with deteriorated credit quality 4,888 1,591 672 751 12 7,914 Total ending loans balance $ 938,462 $ 161,958 $ 150,407 $ 507,173 $ 21,429 $ 1,779,429 Commercial 1-4 Family Real Estate Real Estate Residential Construction Commercial Other Total At December 31, 2014 Balance at beginning of period $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Loans charged-off (1,400) (289) (655) (4,014) (558) (6,916) Recoveries 3,733 213 - 1,119 264 5,329 Provision for loan losses (7,509) (62) (709) 1,524 132 (6,624) Balance at end of period $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Allowance for loan losses ending balances: Individually evaluated for impairment $ 2,047 $ - $ - $ 1,822 $ - $ 3,869 Collectively evaluated for impairment 11,631 712 4,159 7,792 289 24,583 Acquired with deteriorated credit quality - - - - - - Total ending allowance balance $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Loans receivable ending balance: Individually evaluated for impairment $ 23,907 $ 538 $ 104 $ 13,560 $ 2 $ 38,111 Collectively evaluated for impairment 725,635 75,598 196,905 336,818 21,953 1,356,909 Acquired with deteriorated credit quality 3,429 1,395 114 32 1 4,971 Total ending loans balance $ 752,971 $ 77,531 $ 197,123 $ 350,410 $ 21,956 $ 1,399,991 Commercial 1-4 Family Real Estate Real Estate Residential Construction Commercial Other Total At December 31, 2013 Balance at beginning of period $ 27,223 $ 861 $ 5,271 $ 12,604 $ 759 $ 46,718 Loans charged-off (806) (578) 246 (8,599) (267) (10,004) Recoveries 171 253 4,527 2,049 158 7,158 Provision for loan losses (7,734) 314 (4,521) 4,931 (199) (7,209) Balance at end of period $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Allowance for loan losses ending balances: Individually evaluated for impairment $ 4,012 $ - $ 18 $ 3,863 $ 46 $ 7,939 Collectively evaluated for impairment 14,839 797 5,505 7,122 405 28,668 Acquired with deteriorated credit quality 3 53 - - - 56 Total ending allowance balance $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Loans receivable ending balance: Individually evaluated for impairment $ 47,730 $ 456 $ 2,720 $ 10,297 $ 50 $ 61,253 Collectively evaluated for impairment 693,267 79,602 145,576 243,790 30,988 1,193,223 Acquired with deteriorated credit quality 11,282 3,930 198 971 46 16,427 Total ending loans balance $ 752,279 $ 83,988 $ 148,494 $ 255,058 $ 31,084 $ 1,270,903 |
Premises And Equipment
Premises And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | Note 6 : Premises and Equipment Year-end premises and equipment were as follows: At December 31, (Dollars in thousands) 2015 2014 Land $ 6,630 $ 5,496 Buildings and improvements 25,219 20,967 Furniture, fixtures, and equipment 30,813 29,091 Construction/remodeling in progress 965 574 63,627 56,128 Accumulated depreciation and amortization (39,808) (37,540) Total premises and equipment, net $ 23,819 $ 18,588 Depreciation of premises and equipment totale d $2.5 million in 2015, $ 2.8 million in 2014, and $ 2.5 million in 2013 . We lease certain equipment and premises for our operations. Future minimum annual rental payments required under operating leases, net of sublease agreements, that have initial or remaining lease terms in excess of one year as of December 31, 2015 were as follows: (Dollars in thousands) 2016 $ 2,781 2017 1,491 2018 1,230 2019 1,073 2020 977 Thereafter 2,450 Total $ 10,002 The total rental expense w as $ 2.9 mil lion, $ 2.4 million, and $ 2.6 million in 2015, 2014, and 2013 , respectively. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwil And Other Intangible Assets | Note 7 : Goodwill and Other Intangible Assets We ha ve recorded goodwill and other identifiable intangible assets associated with purchase business combinations. Goodwill is not amortized, but is periodically evaluated for impairment. We perform an annual goodwill impairment test each year and assess qualitative factors on a quarterly basis that would indicate events or circumstances that an impairment might have taken place. Goodwill tota led $13.5 million at December 31, 2015, of whic h $12.5 million of goodwill is reported in the Oklahoma Banking segment and $1.0 million is reported in the Texas Ba nking segment . A t December 31, 2014, goodwill totaled $1.2 million, of which $ 0.2 million of goodwill is reported in the Oklahoma Banking segment and $ 1.0 million is reported in the Texas Banking segment. The increase in goodwill from 2014 to 2015 is a result of the acquisition of Bancshares. As a result of the transaction, $ 12.3 million of goodwill was recorded. Further information regarding operating s egments can be found in “Note 20 Operating Segments”. Based on our annual goodwill impai rment test through December 31, 2015 , management does not believe any of its goodwill is impaired as of December 31, 2015 . We did not recognize an impairment during t he years ended December 31, 2015, 2014 and 2013 . The following table presents the gross carrying amount of other intangible assets and accumulated amortization. At December 31, (Dollars in thousands) 2015 2014 Core deposit premiums $ 6,119 $ 3,418 Less accumulated amortization (3,225) (2,889) Core deposit premiums, net 2,894 529 Loan servicing rights 13,635 12,564 Less accumulated amortization (9,914) (9,166) Loan servicing rights, net 3,721 3,398 Other intangible assets, net $ 6,615 $ 3,927 Core deposit intangibles are amortized using an economic life method based on deposit attrition. As a result, amortization will decline over time with most of the amortization occurring during the initial years. The weighted average amortization period for core deposit intangibles is approximately 10 years. Amortization expense related to core deposit intangibles tot aled $0.3 m illion in 2015, $ 0. 4 m illion in 2014, and $0.5 million in 2013 . The increase in core deposit intangibles from 2014 to 2015 is a result of the acquisition of Bancshares. As a result of the transaction, $ 2.6 million of net core deposit intangibles was recorded. In addition, the impact of the Kansas branch sales in 2014 resulted in a $ 1.1 million reduction to core deposit intangibles. During 2015, 2014, and 2013 , we had recorded loan servicing right s amortization expense of $ 0.7 millio n, $ 0.4 million , and $0.8 million , respectively. The estimated aggregate future amortization expense for other intangible assets r emaining as of December 31, 2015 is as follows: (Dollars in thousands) Core Deposit Premiums Loan Servicing Rights Total 2016 $ 593 $ 727 $ 1,320 2017 451 627 1,078 2018 391 518 909 2019 386 425 811 2020 386 343 729 Thereafter 687 1,081 1,768 $ 2,894 $ 3,721 $ 6,615 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 8 : Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In estimating fair value, we utilize valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 820, Fair Value Measurements , establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Quoted prices in active markets for identical instruments. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The estimated fair value amounts have been de termined by us using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amount we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. There were no significant changes in valuation methods used to estimate fair value during the year ended December 31, 2015 . A description of the valuation methodologies used for instruments measured at fair value on a recurring basis is as follows: Available for sale securities – The fair value of U.S. Government and federal agency securities, equity securities, and residential mortgage-backed securities is estimated based on quoted market prices or dealer quotes. The fair value of other investments such as obligations of state and political subdivisions is estimated based on quoted market prices , when available . We obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and bond’s terms and conditions, among other things. We review the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. Derivative instrument s – We utilize an interest rate swap agreement to convert one of our variable-rate subordinated debentures to a fixed rate. This has been designated as a cash flow hedge. During 2014 we began offering an interest rate swap program that permits qualified customers to manage interest rate risk on variable rate loans with Bank SNB. Derivative contracts are executed between our customers and Bank SNB. Offsetting contracts are executed by Bank SNB and approved counterparties. The counterparty contracts are identical to customer contracts, except for a fixed pricing spread or fee paid to us. The fair value of the interest rate swap agreements are obtained from dealer quotes. The following table summarizes financial assets measured at fair value on a recurri ng basis as of December 31, 2015 and 2014 . Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) At December 31, 2015 Available for sale securities: Federal agency securities 78,211 - 78,211 - Obligations of state and political subdivisions 47,564 - 47,564 - Residential mortgage-backed securities 239,888 - 239,888 - Asset-backed securities 9,415 - 9,415 - Corporate debt 25,253 137 25,116 - Derivative asset 1,793 1,793 Derivative liability (3,163) - (3,163) - Total $ 398,961 $ 137 $ 398,824 $ - At December 31, 2014 Available for sale securities: Federal agency securities 99,546 - 99,546 - Obligations of state and political subdivisions 33,139 - 33,139 - Residential mortgage-backed securities 178,227 - 178,227 - Asset-backed securities 9,548 - 9,548 - Corporate debt 32,771 142 32,629 - Derivative asset 787 - 787 - Derivative liability (2,373) - (2,373) - Total $ 351,645 $ 142 $ 351,503 $ - Certain financial assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These assets are recorded at the lower of cost or fair value. Valuation methodologies for assets measured on a nonrecurring basis are as follows: Impaired loans – Certain impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from collateral. Collateral values are estimated using Level 3 inputs based on third-party appraisals. Certain other impaired loans are remeasured and reported through a specific valuation allowance allocation of the allowance for loan losses based upon the net present value of cash flows. Loans held for sale – Real estate mortgage loans held for sale are carried at the lower of cost or market, which is determined on an individual loan basis. The fair value of loans held for sale is based on existing investor commitments. Other real estate – Other real estate fair value is based on third-party appraisals for properties less the estimated costs to sell the asset. Goodwill – Fair value of goodwill is based on the fair value of each of our reporting units to which goodwill is allocated compared with their respective carrying value. There ha s been no impairment during 2015 or 2014 ; therefore, no fair value adjustment was recorded through earnings. Core deposit premiums – There has been no impairment during 201 5 or 2014 ; therefore, no fair value adjustment was recorded through earnings. Mortgage loan servicing rights – There is no active trading market for loan servicing rights. The fair value of loan servicing rights is estimated by calculating the present value of net servicing revenue over the anticipated life of each loan. A cash flow model is used to determine fair value. Key assumptions and estimates, including projected prepayment speeds and assumed servicing costs, earnings on escrow deposits, ancillary income, and discount rates, used by this model are based on current market sources. A separate third party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults, and other relevant factors. The prepayment model is updated for changes in market conditions. Assets that are measured at fair value on a nonrecurri ng basis as of December 31, 2015 and 2014 are summarized below. Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) At December 31, 2015 Impaired loans at fair value : Commercial real estate $ 11,182 $ - $ $ 11,182 One-to-four family residential 185 - - 185 Real estate construction 390 - - 390 Commercial 9,845 - 9,845 Loans held for sale: One-to-four family residential 7,453 - 7,453 - Other real estate 2,274 - - 2,274 Mortgage loan servicing rights 3,721 - 3,721 - Total $ 35,050 $ - $ 11,174 $ 23,876 At December 31, 2014 Impaired loans at fair value : Commercial real estate $ 11,762 $ - $ $ 11,762 Commercial 5,722 - 5,722 Loans held for sale: One-to-four family residential 763 - 763 - Government guaranteed commercial real estate 705 - 705 - Other loans held for sale 17 - 17 - Other real estate 3,097 - - 3,097 Total $ 22,066 $ - $ 1,485 $ 20,581 Impaired loans measured at fair value with a carrying amount of $ 25.9 million were written down to a fair value of $ 21.6 million, resulting in a life-to-date impairment of $ 4.3 million. As of December 31, 2014, impaired loans measured at fair value with a carrying amount of $ 21.9 million were written down to the fair value of $ 17.5 million at December 31, 2014, resulting in a life-to-date impairment charge of $ 4.4 million. As of December 31, 2015, other real estate assets were written down to their fair values, resulting in an impairment charge of approximately $ 0.1 million, which was included in noninterest expense for the year ended December 31, 2015. In the prior year, other real estate assets were written down to their respective fair values, resulting an impairment charge of $ 0.6 million, which was included in noninterest expense for the year ended December 31, 2014. As of December 31 , 2015 and December 31, 2014, mortgage servicing rights were written down to their fair values, resulting in an impairment charge of $0.1 million and $0 , respectively, which was included in noninterest expense. ASC 825, Financial Instruments , requires an entity to provide disclosures about fair value of financial instruments, including those that are not measured and reported at fair value on a recurring or nonrecurring basis. The methodologies used in estimating the fair value of financial instruments that are measured on a recurring or nonrecurring basis are discussed above. The methodologies for the other financial instruments are discussed below: Cash and cash equivalents – For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value. Securities held to maturity – The investment securities held to maturity are carried at cost. The fair value of the held to maturity securities is estimated based on quoted market prices or dealer quotes. Loans , net of allowance – Fair values are estimated for certain homogenous categories of loans adjusted for differences in loan characteristics. Our loans have been aggregated by categories consisting of commercial, real estate , and other consumer. The fair value of loans is estimated by discounting the cash flows using risks inherent in the loan category and interest rates currently offered for loans with similar terms and credit risks. Accrued interest receivable – The carrying amount is a reasonable estimate of fair value for accrued interest receivable. Investment s included in other assets – The estimated fair value of investments included in other assets, which primarily consists of investments carried at cost, approximates their carrying values. Deposits – The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the statement of financial condition date. The fair value of fixed matur ity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. Other liabilities and accrued interest payable – The estimated fair value of other liabilities, which primarily includes trade accounts payable and accrued interest payable, approximates their carrying values. Other borrowings – Included in other borrowings are FHLB advances and securities sold und er agreements to repurchase . The fair value for fixed rate FHLB advances is based upon discounted cash flow analysis using interest rates currently being offered for similar instruments. The fair values of other borrowings are the amounts payable at the statement of financial condition date, as the carrying amount is a reasonable estimate of fair value due to the short-term maturity rates. Subordinated debentures – All subordinated debentures have floating rates that reset quarterly . The fair value of the floating rate subordinated debentures approximates carrying value at Decem ber 31, 2015 and December 31, 2014. The carrying values and estimated fair values of our financial instruments segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value are as follows: At December 31, 2015 At December 31, 2014 Carrying Fair Carrying Fair (Dollars in thousands) Values Values Values Values Financial assets: Level 2 inputs: Cash and cash equivalents $ 78,129 $ 78,129 $ 140,936 $ 140,936 Securities held to maturity 11,797 12,282 12,362 12,880 Accrued interest receivable 5,767 5,767 4,723 4,723 Investments included in other assets 10,383 10,383 7,949 7,949 Level 3 inputs: Total loans, net of allowance 1,753,323 1,728,114 1,371,539 1,303,047 Financial liabilities: Level 2 inputs: Deposits 1,884,105 1,780,954 1,533,999 1,450,540 Accrued interest payable 867 867 769 769 Other liabilities 10,314 10,314 8,334 8,334 Other borrowings 110,927 112,149 79,380 81,544 Subordinated debentures 51,548 51,548 46,393 46,393 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Note 9 : Deposits The following table summarizes deposits as of December 31, 2015 and 2014 . (Dollars in thousands) 2015 2014 Noninterest-bearing demand $ 596,494 $ 496,128 Interest-bearing demand 151,015 122,342 Money market accounts 534,357 461,679 Savings accounts 56,333 32,795 Time deposits of $100,000 or more 311,538 198,952 Other time deposits 234,368 222,103 Total deposits $ 1,884,105 $ 1,533,999 The total amount of overdrawn deposit accounts that were reclassifi ed as loans at December 31, 2015 and 201 4 was $ 0.3 mill ion and $ 0.2 million, respectively. The aggregate amounts of time deposits in denominations of $250,000 or more at December 31, 201 5 and 201 4 were $95.4 milli on and $44.6 million, respectively. Some of our interest-bearing deposits were obtained through brokered transactions and we participat e in the Certificate of Deposit Account Registry Service (“CDARS”). CDARS depos its totaled $ 22.5 million at December 31, 2015 and $ 3.4 million at December 31, 2014 . There were capital market certificate of deposits of $17.3 million at December 31, 2015 and no c apital market certificate of deposits at December 31, 201 4 . Scheduled time deposit maturities as of December 31, 2015 are as follows: (Dollars in thousands) 2016 $392,831 2017 106,258 2018 29,887 2019 10,922 2020 5,559 Thereafter 449 Total time deposits $545,906 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
Borrowed Funds [Abstract] | |
Borrowed Funds | Note 10 : Borrowed Funds We have available various forms of other borrowings for cash management and liquidity purposes. These forms of borrowings include short term federal funds purchased and securities sold under agreements to repurchase, and advances from the FHLB and the FRB. The following table summarizes borrowed funds for the periods indicated: 2015 2014 (Dollars in thousands) Balance at December 31 Average Balance Weighted Average Rate Balance at December 31 Average Balance Weighted Average Rate Securities sold under repurchase agreements $ 37,273 $ 44,218 0.07 % $ 54,380 $ 57,965 0.05 % Federal Home Loan Bank advances 73,654 28,289 3.11 25,000 25,000 3.47 $ 110,927 $ 79,380 We have approved federal funds purchase lines to taling $ 65.0 mil lion w ith three fina ncial entities. We sell securities under agreements to repurchase with us retaining custody of the collateral. Collateral consists of direct obligations of U.S. Government and Federal Agency issues, which are designated as pledged with our safekeeping agent. The type of collateral required, the retention of the collateral, and the security sold, minimize our risk of exposure to loss. These transactions are for one-to-four day periods. At December 31, 2015 and 2014, the amount of collateral pledged is $58.9 million and $72.7 million, respectively. At December 31, 201 5 and 201 4 , no repurchase agreement exceeded 10% of equity capital. We have entered into an agreement with the FHLB to obtain advances from the FHLB from time to time. At December 31, 201 5 , the Bank SNB line of credit with the FHLB had an outstanding balance o f $ 73.7 mil lion. The terms of the agreement are set forth in the Advance, Pledge and Security Agreement between Bank SNB and FHLB (the “Agreement”). The FHLB requires that we pledge collateral on such advances. Under the terms of the Agreement, the discounted value of the collateral, as defined by the FHLB, should at all times be at least equal to the amount borrowed by us. Such advances outstanding are subject to a blanket collateral arrangement, which requires the pledging of eligible collateral to secure such advances. Such collateral princ ipally includes certain loans and securities. At December 31, 2015 and 2014, loans pledged under the Agreement were $ 447.9 million and $ 528.4 million, and investment securities pledged (at carrying value) were $ 0 for both years . Scheduled minimum future principal payments on the FHLB line of credit as of December 31, 2015 are as follows: $ 48.7 million in 2016 and $ 25.0 in 2017. We are qualified to borrow funds from the FRB through their Borrower-In-Custody program. Collateral under this prog ram consists of pledged selected commercial and industrial loans. Currently, the collateral will allow us to borrow up to $ 89.8 m illion. |
Trust Preferred Securities and
Trust Preferred Securities and Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Debentures [Abstract] | |
Subordinated Debentures | Note 11 : Trust Preferred Securities and Subordinated Debentures At December 31, 201 5 and 2014 , we had the following issues of trust preferred securities outstanding and subordinated debentures owed to the Trusts. At December 31, 2015 (Dollars in thousands) Subordinated Debentures Owed to Trusts Trust Preferred Securities of the Trusts Rates Final Maturity Date OKSB Statutory Trust I $ 20,619 $ 20,000 3.70% June 26, 2033 SBI Capital Trust II 25,774 25,000 3.17% October 7, 2033 FCBI Statutory Trust I 5,155 5,000 3.33% September 4, 2033 $ 51,548 $ 50,000 At December 31, 2014 (Dollars in thousands) Subordinated Debentures Owed to Trusts Trust Preferred Securities of the Trusts Rates Final Maturity Date OKSB Statutory Trust I $ 20,619 $ 20,000 3.35% June 26, 2033 SBI Capital Trust II 25,774 25,000 3.08% October 7, 2033 $ 46,393 $ 45,000 On June 26, 2003, our subsidiary, OKSB Statutory Trust I, sold to investors in a private placement offering $ 20.0 million of adjustable rate trust preferred securities (the “OKSB Trust Preferred”). The OKSB Trust Preferred bear interest, adjustable quarterly, at 90-day LIBOR plus 3.10 %. In addition to these adjustable rate securities, OKSB Statutory Trust I sold $ 0.6 million of trust common equity to Southwest. The aggregate proceeds of $ 20.6 million were used to purchase an equal principal amount of adjustable rate subordinated debentures that bear interest, adjustable quarterly, at 90 -day LIBOR plus 3.10 % (the “OKSB Subordinated Debentures”). After deducting underwriter’s compensation and noninterest expenses of the offering, the net proceeds were available to us to increase capital and for general corporate purposes. Interest payments on the OKSB Subordinated Debentures are deductible for federal income tax purposes. On October 14, 2003, our subsidiary, SBI Capital Trust II, sold to investors in a private placement offering $ 25.0 million of adjustable rate trust preferred securities (the “SBI II Trust Preferred”). The SBI II Trust Preferred bear interest, adjustable quarterly, at 90 -day LIBOR plus 2.85 %. In addition to these adjustable rate securities, SBI Capital Trust II sold $ 0.8 million of trust common equity to us . The aggregate proceeds of $ 25.8 million were used to purchase an equal principal amount of our adjustable rate subordinated debentures that bear interest, adjustable quarterly 90-day LIBOR plus 2.85 % (the “SBI II Subordinated Debentures”). The proceeds were available to us to increase capital and for general corporate purposes. Interest payments on the SBI II Subordinated Debentures are deductible for federal income tax purposes. O n September 4 , 2003, FCBI Statutory Tru st I sold to investors in a private placement offering $5.0 million of adjustable rate trust preferred securities (the “ FCBI I Trust Preferred”). The FCBI I Trust Preferred bear interest, adjustable quarterly, at 90 -day LIBOR plus 3.00% . In addition to these adjustable rate securities, FCBI Statutory Trust I sold $0.2 million of trust common equity. The aggregate proceeds of $5.2 million were used to purchase an equal principal amount of our adjustable rate subordinated debentures that bear interest, adjustable quarterly 90 -day LIBOR plus 3.00% (the “ FCBI I Subordinated Debentures”). The proceeds were available to us to increase capital and for general corporate purposes. Interest payments on the FCBI I Subordinated Debentures are deductible for federal income tax purposes. These trust preferred security and subordinated debentures were inherited with the acquisition of FCBI and were redeemed on February 8, 2016. At December 31, 201 5 , we had an aggregate of $ 5 1.5 million of subordinated debentures outstanding and had an asset of $ 1.5 million represe nting our total investment in the common equity issued by the Trusts. The sole assets of the Trusts are the subordinated debentures and the liabilities of the Trusts of the OKSB Trust Preferred and SBI II Trust Preferred. We have, through various contractual arrangements, unconditionally guaranteed payment of all obligations of our Trusts with resp ect to our OKSB Trust Preferred and our SBI II Trust Preferred. The OKSB Trust Preferred, the OKSB Subordinated Debentures, the SBI II Trust Preferred, and the SBI II Subordinated Debentures, mature at or near the thirtieth anniversary date of their issuance. However, if certain conditions are met, the OKSB Trust Preferred and the OKSB Subordinated Debentures and the SBI II Trust Preferred and the SBI II Subordinated Debentures may be called at our discretion with thirty days’ notice . We, OKSB Statutory Trust I, and SBI Capital Trust II believe that, taken together, our obligations under the Trust Preferred Guarantee Agreements, the Amended and Restated Trust Agreements, the Subordinated Debentures, the Indentures and the Agreements as to Expenses and Liabilities, entered into in connection with the offering of the Trust Preferred and the Subordinated Debentures, in the aggregate constitute a full and unconditional guarantee by us of the obligations of OKSB Statutory Trust I and SBI Capital Trust II under the Trust Preferred. OKSB Statutory Trust I is a Connecticut statutory trust created for the purpose of issuing the OKSB Trust Preferred and purchasing the OKSB Subordinated Debentures, which are its sole assets. We own all of the 619 outstanding common securities of OKSB Statutory Trust I; the liquidation value is $ 1,000 per share. SBI Capital Trust II is a Delaware statutory trust created for the purpose of issuing the SBI II Trust Preferred and purchasing the SBI II Subordinated Debentures, which are its sole assets. We own all of the 774 outstanding common securities of SBI Capital Trust II; the liquidation value is $ 1,000 per share. FCBI Statutory Trust I is a statutory trust created fo r the purpose of issuing the FCBI I Trust Preferred and purchasing the FCBI I Subordinated Debentures, which are its sole assets. A ll trust assets were redeemed on February 8, 2016 . Each of the Trust Preferred issuances meets the regulatory criteria for Tier I capital, subject to Federal Reserve guidelines that limit the amount of the Trust Preferred and cumulative perpetual preferred stock to an aggregate of 25 % of Tier I capital. At December 31, 2 01 5 , $ 50.0 mil lion of the Trust Preferred was included in Tier I capital. We de-consolidate our investment s in OKSB Statutory Trust I, SBI Capital Trust II , and FCBI Statutory Trust I (the “Trusts”) in this Annual Report. Due to this required de-consolidation, the trust preferred secur ities are not presented on the Consolidated Statements of Financial C ondition and the subordinated d ebentures are presented on the Consolidated Statements of Financial C ondition as a separate liability category. The terms of the debentures allow us to defer payments of interest for up to 20 consecutive quarterly periods without default or penalty. These terms also allow us to resume payments at the end of any deferral period, or to extend the deferral up to the maximum 20 quarters in total. No deferral can extend past the maturity date of the debenture. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 1 2 : Derivative Instruments We utilize derivatives instruments to manage exposure to various types of interest rate risk for us and our customers within policy guidelines. All derivative instruments are carried at fair value, in which credit risk is considered in determining fair value. Derivative contracts involve the risk of dealing with institutional derivative counterparties and their ability to meet contractual terms. Institutional counterparties must have an investment grade credit rating and be approved by our asset/liability management and executive loan committee s . Our credit exposure on interest rate swaps is limited to the net favorable value and i nterest payments of all swaps with each counterparty. Access to collateral in the event of default is reasonably assured. Therefore, credit exposure may be reduced by the amount of collateral pledged by the counterparty. Customer Risk Management Interest Rate Swaps Our qualified customers have the opportunity to participate in our interest rate swap program for the purpose of managing interest rate risk on their va riable rate loans with us. W e enter into such agreements with customers, then offsetting agreements are executed between us and approved dealer counterparties to minimize our market risk from changes in interest rates. The counterparty contracts are identical to customer contracts in terms of notional amounts, interest rates, and maturity dates , except for a fixed pricing spread or fee paid to us by the dealer counterparty. These interest rate swaps carry varying degrees of credit, interest rate and market or liquidity risks . The fair value of these derivative instruments are recognized as either non-hedge derivative assets or liabilities in the Consolidated Statements of Financial C ondition. We have entered into nine customer interest rate swap agreements that effectively convert the loan interest rate from floating rate based on LIBOR to a fixed rate for the customer. As of December 31, 201 5 , these loans had an outstanding balance of $ 101.6 million. We have entered i nto offsetting agreements with dealer counterparties . The following table summarizes the fair values of derivative contracts recorded as “non-hedge derivative assets” and “non-hedge derivative liabilities” in the Consolidated Statements of Financial C ondition. As of December 31,2015 As of December 31,2014 (Dollars in thousands) Notional Fair Value Notional Fair Value Non-hedge derivative assets $ 101,629 $ 1,793 $ 34,322 $ 787 Non-hedge derivative liabilities 101,629 1,793 34,322 787 The margin rates to us in connection with these instruments are a contractual percentage over the one-month LIBOR or a minimal percentage under the prime rate as of December 31, 201 5 . There was $ 4.6 m illion of collateral required to be posted by us as of December 31, 201 5 to dealer counterparties . We posted securities to cover the collateral required. These interest rate swaps are not designated as hedging instruments. Interest Rate Swap on Trust Preferred Securities We have an interest rate swap agreement with a total notional amount of $ 25.0 million. The interest rate swap contract was designated as a cash flow hedging instrument with the objective of protecting the overall cash flow from our quarterly interest payments on the SBI Capital Trust II preferred securities throughout the seven year period beginning February 11, 2011 and ending April 7, 2018 from the risk of variability of those payments resulting from changes in the three-month LIBOR . Under the swap, we will pay a fixed interest rate of 6.15 % and receive a variable interest rate of three-month LIBOR plus a margin of 2.85 % on a total notional amount of $ 25.0 million, with quarterly settlements. The rate received by us as of December 31, 201 5 w as 3.17 %. The estimated fair value of the interest rate derivative contract outstanding as of December 31, 201 5 and 201 4 resulted in a pre-tax l oss of $ 1.4 millio n and $ 1.6 million, respectively, and was included in other liabilities in the Consolidated Statement s of Financial Condition. The effective portion of the gain or loss due to changes in the fair value of the derivative hedging instrument, a $ 0.1 million gain and a $ 0.3 million loss for the year ended December 31, 2015 and 2014, respectively, is included in other comprehensive income, net of tax, while the ineffective portion (indicated by the excess of the cumulative change in the fair value of the derivative over that which is necessary to offset the cumulative change in expected future cash flows on the hedge transaction) is included in other noninterest income or other noninterest expense. No ineffectiveness related to the interest rate derivative was recognized during either reporting period. Net cash flows as a result of the interest rate swap agreement w ere $ 0.8 mill ion for year ended December 31, 201 5, 201 4 , and 2013 and were included in interest expense on subordinated debentures. The fair value of cash and securities posted as collateral by us related to the derivative contrac t was $ 2.1 million at December 31, 201 5 and 201 4 , respectively. There are no credit-risk-related contingent features associated with our derivative contract. |
Taxes On Income
Taxes On Income | 12 Months Ended |
Dec. 31, 2015 | |
Taxes On Income [Abstract] | |
Taxes On Income | Note 1 3 : Taxes on Income The components of taxes on income follow: For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Current tax (benefit) expense: Federal $ 7,534 $ 3,251 $ 462 State 143 186 74 Deferred tax expense (benefit): Federal 1,126 7,970 9,362 State 990 1,210 858 Taxes on income $ 9,793 $ 12,617 $ 10,756 A reconciliation from the expected tax expense (benefit) using the U.S. Federal income tax rate of 35% to consolidated effective income tax expense (benefit) follows: For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Computed tax (benefit) expense at statutory rates $ 9,520 $ 11,777 $ 9,867 Increase (decrease) in income taxes resulting from: Benefit of income not subject to U.S. Federal income tax (621) (209) (213) Expenses not deductible for U.S. Federal income tax 220 129 96 State income taxes, net of Federal income tax benefit 736 907 749 Tax credit recapture - - 76 Other (62) 13 181 Taxes on income $ 9,793 $ 12,617 $ 10,756 The calculated year-to-date effective t a x rate i s 36.0 % for 2 015 , 37.5% for 2014 , and 38.2 % for 2013 . At December 31, 2013 , w e had $ 10.7 million federal net operating loss carryforward expiring in 2031 , $ 53.1 million of state net operating loss carryforward expiring in 2031 , and $ 0.6 million of state net operating loss carryforward expiring in 2021 . In addition, we had $ 2.5 millio n alternative minimum tax credit that can be carried forward indefinitely. During 2014, w e fully utilized the remaining federal net operating loss carryforward and the alternative minimum tax credit that had been carried forward . At December 31, 2015 , we had $23.3 mi llion of state net operating loss carryforward expiring in 2031 . A deferred tax asset or liability is recognized for the tax consequences of temporary differences in the recognition of certain income and expense items for financial statement reporting purposes. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. It was determined that no valuation allowance is required for 2015. Net deferred ta x assets o f $ 14. 0 mill ion an d $ 14.1 milli on at December 31, 2015 and 2014 , respectively, are reflected in the accompanying Consolidated Statements of Financial C ondition in other assets. Temporary differences that give rise to the deferred tax assets include the following: At December 31, (Dollars in thousands) 2015 2014 Deferred tax assets: Provision for loan losses $ 10,291 $ 11,753 Net operating loss carryforward 858 1,310 Write-downs on other real estate 57 187 Nonaccrual loan interest 603 500 Deferred compensation & profit sharing accrual 711 204 Investments 311 303 Section 597 gain - FDIC-assisted acquisition 472 667 Accrued expenses 1,013 1,275 Loan purchase accounting adjustment 2,725 - Stock-based compensation 629 258 Other (2) 53 Total deferred tax assets 17,668 16,252 Deferred tax liabilities: Accumulated depreciation (2,877) (2,133) Amortizable assets (1,089) (116) Dividend - Equity vs. Cost Method (393) (206) Prepaid expenses (109) (123) FHLB stock dividends (132) (73) Total deferred tax liabilities (4,600) (2,393) Deferred taxes payable on investment securities available for sale 885 235 Net deferred tax asset $ 13,953 $ 14,094 We or one of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state tax examinations for years before 2012. Additionally, as procedurally required, our company’s 2010 and 2011 federal returns were examined in connection with the 2011 net operating loss carryback and no adjustments were required. Unrecognized Tax Benefits – ASC 740, Income Taxes , provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. As of December 31, 2015, we have no unrecognized tax benefits related to Federal or State income tax matters and do not anticipate any changes within the next twelve months. Additionally, no interest and penalties have been accrued related to uncertain tax positions. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 1 4 : Shareholders’ Equity We have reserved for issuance 150,000 shares of common stock pursuant to the terms of the Employee Stock Purchase Plan. The Employee Stock Purchase Plan allows our employees to acquire additional common shares through payroll deductions. From July 1999 to August 2009, shares issued out of this plan came from treasury shares, subsequent shares issued came from the reserved shares. As of December 31, 2015, 59,873 new shares had been issued and 52,500 treasury shares had been reissued under this plan. As of December 31, 201 4 , 57,944 new shares had been issued and 52,500 treasury shares had been reissued under this plan. We have reserved 800,000 shares of common stock pursuant to the terms of the 2008 Stock Plan. The 2008 Stock Plan provides selected key employees with the opportunity to acquire common stock. As of December 31, 201 5, 512,101 new shares had been issued an d 25,725 tr easury shares had been reissued by the 2008 Stock Plan. As of December 31, 201 4 , 400,864 new shares had been issued an d 25,725 tr easury shares had been reissued by the 2008 Stock Plan. Stock Repurchase Program – On August 14, 2014, our board of directors authorized the repurchase of up to 5% , or 990,000 shares, of our common stock pursuant to a share repurchase program which expired on August 14, 2015 . On February 24, 2015, our board of directors authorized its second consecutive share repurchase program of up to 5% , or 950,000 shares, of our common stock, which program became effective upon the expiration of the first program on August 14, 2015. The share repurchases are expected to be made primarily on the open market from time to time. Repurchases under the program are available at the discretion of management based upon market, business, legal, and other factors. During 2015, we repurchased 503,740 shares for a total of $ 8.5 mi llion. During 201 4 , we repurch ased 617,818 shares for a total of $ 10.3 million. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 1 5 : Earnings per Common Share The following table shows the computation of basic and diluted earnings per common share: (Dollars in thousands, except earnings per share data) 2015 2014 2013 Numerator: Net income $ 17,407 $ 21,030 $ 17,435 Preferred dividend - - - Net income 17,407 21,030 17,435 Earnings allocated to participating securities (258) (253) (139) Numerator for earnings per common share $ 17,149 $ 20,777 $ 17,296 Denominator: Denominator for basic earnings per common share 18,975,450 19,417,486 19,516,776 Dilutive effect of stock compensation 154,083 142,877 87,469 Denominator for diluted earnings per common share 19,129,533 19,560,363 19,604,245 Earnings per common share: Basic $ 0.90 $ 1.07 $ 0.89 Diluted $ 0.90 $ 1.06 $ 0.88 |
Capital Requirements and Regula
Capital Requirements and Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Capital Requirements And Regulatory Matters [Abstract] | |
Capital Requirements And Regulatory Matters | Note 16 : Capital Requirements and Regulatory Matters We and Bank SNB are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our and Bank SNB’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we and Bank SNB must meet specific capital guidelines that involve quantitative measures of our and Bank SNB ’ s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our and Bank SNB’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, a nd other factors. Quantitative measures established by regulation to ensure capital adequacy require us and Bank SNB to maintain min imum amounts of Total, Tier I Capital (as defined in the regulations), and CET1 Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I Capital (as defined) to average assets (as defined). Management believes that, as of December 31, 2015 and December 31, 2014, we and Bank SNB met all capital adequacy requirements . As of December 31, 2015 and December 31, 2014 , Bank SNB was categorized as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, CET1 risk-based, and Tier I leverag e ratios as set forth in the following table. A summary of actual capital amounts and ratios as of December 31, 2015 are presented below. To Be Well Capitalized Under Prompt Corrective For Capital Actual Action Provisions Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Total CET1 Capital (to risk-weighted assets) Southwest $ 282,737 13.21 % $ 139,122 6.50 % $ 96,316 4.50 % Bank SNB 291,125 13.65 138,637 6.50 95,980 4.50 Total Capital (to risk-weighted assets) Southwest 359,300 16.79 214,034 10.00 171,228 8.00 Bank SNB 317,865 14.90 213,288 10.00 170,631 8.00 Tier 1 Capital (to risk-weighted assets) Southwest 332,468 15.53 171,228 8.00 128,421 6.00 Bank SNB 291,125 13.65 170,631 8.00 127,973 6.00 Tier 1 Leverage (to average assets) Southwest 332,468 14.41 115,371 5.00 92,297 4.00 Bank SNB 291,125 12.66 114,939 5.00 91,951 4.00 A summary of actual capital amounts and ratios as of December 31, 2014 are presented below. To Be Well Capitalized Under Prompt Corrective For Capital Actual Action Provisions Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2014: Total Capital (to risk-weighted assets) Southwest $ 334,348 20.96 % $ 159,504 10.00 % $ 127,603 8.00 % Bank SNB 298,224 18.81 158,518 10.00 126,814 8.00 Tier 1 Capital (to risk-weighted assets) Southwest 314,216 19.70 95,702 6.00 63,801 4.00 Bank SNB 278,214 17.55 95,111 6.00 63,407 4.00 Tier 1 Leverage (to average assets) Southwest 314,216 16.45 95,534 5.00 76,428 4.00 Bank SNB 278,214 14.64 95,030 5.00 76,024 4.00 The approval of the Oklahoma State Banking Department and the Federal Reserve Bank is required if the total of all dividends declared by Bank SNB in any calendar year exceeds the total of its net profits of that year combined with its retained net profits of the preceding two years. In addition, Bank SNB may not pay a dividend if, after paying the div idend, Bank SNB would be undercapitalized. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 1 7 : Employee Benefits We sponsor a 401(k) defined contribution savings plan. The plan covers all employees who have completed one year of service and have attained the age of 21. The plan is subject to the Employee Retirement Income Security Act of 1974, as amended. This plan permits participants to make before or after-tax contributions in an amount not exceeding 90 % of eligible compensation and subject to dollar limits from Internal Revenue Service regulations. We will make an annual nonelective contribution of 3 % of eligible compensation. We made contributions of $ 0.7 m illion, $0.6 million, and $1.0 million in 201 5 , 201 4 , and 201 3 , respectively. Stock Options – We recorded no share-based compensation expense with respect to stock options for the years ended December 31, 201 5 , 201 4 , and 201 3 . The share-based compensation is calculated using the accrual method, which treats each vesting tranche as a separate award and amortizes expense evenly from grant date to vest date for each tranche. There were no outstanding options as of December 31, 201 5 and 201 4 . No stock options were exercised in 201 5 , 201 4 and 201 3 . Restricted Stock - Restricted shares granted as of December 31, 201 5 , 201 4 and 201 3 was 585,049 , 477,987 , and 401,844 , respectively. We recognized $ 1.5 million for the year ended December 31, 201 5 and $ 0.9 million for the year ended December 31, 201 4 and $0.7 million for the year ended December 31, 201 3 , in c ompensation expense, related to all restricted shares outstanding. At December 31, 201 5 , there was $ 2.0 million of total unrecognized compensation expense related to restricted shares granted under the 2008 Stock Plan. Of the total unrecognized compensation expense at December 31, 201 5 , $ 1.3 million will be recognized in 201 6 , and the remainder will be recognized the follo wing two years. The 201 5 and 201 4 grants of restricted stock have a vesting period between one to three years. The restrictions on the shares expire one year after the award date or upon the earlier to occur of satisfaction of vesting conditions, a change in control of us , or the permanent and total disability or death of the participant. We recognize compensation expense over the restricted period. Supplemental Executive Retirement Plan – Through the acquisition of FCBI, we inherited a nonqualified supplemental executive retirement plan for certain officers. The plan is closed to any future employees and is funded by the bank owned life insurance acquired from FCBI. This plan provides for postretirement salary and life insurance benefits, as determined by the plan document. As of December 31, 2015, the accrued deferred compensation was $1.3 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 1 8 : Related Party Transactions Directors and officers of us and Bank SNB were customers of, and had transactions with , us in the ordinary course of business, and similar transactions are expected in the future. All loans included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and in management’s opinion did not involve more than normal risk of loss or present other un favorable features. Certain directors, and companies in which they have ownership interests, had indebtedness to us totaling $ 26.1 m illion an d $ 9.1 million at December 31, 201 5 and 201 4 , respectively. During 201 5 , $ 41.2 million of new loans and advances on existing loans were made to these persons and repayments tot ale d $ 24.2 mill ion. During 2014, $7.1 million of new loans and advances on existing loans were made to these persons and repayments totaled $1.4 million. At Decem ber 31, 2015 and 2014, directors, officers and other related parties had demand, non-interest bearing deposits of $ 2.1 million and $ 4.2 million, respectively, savings and interest-bearing transaction accounts of $ 14.0 million and $ 19.4 million , respectively, and time certificates of deposit of $ 0.5 million and $ 0 millio n, respectively. |
Off Balance Sheet Arrangements,
Off Balance Sheet Arrangements, Commitments, Guarantees, And Contractual Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Off-Balance-Sheet Arrangements, Commitments, Guarantees And Contingencies | Note 1 9: Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies Financial Instruments with Off-Balance-Sheet Risk – In the normal course of business, we make use of a number of different financial instruments to help meet the financial needs of our customers. In accordance with U.S. generally accepted accounting principles, these transactions are not presented in the accompanying consolidated financial statements and are referred to as off-balance sheet instruments. These transactions and activities include commitments to extend lines of commercial and real estate mortgage credit and standby and commercial letters of credit. The following table provides a summary of our off-balance sheet financial instruments: At December 31, (Dollars in thousands) 2015 2014 Commitments to extend commercial and real estate mortgage credit $ 446,412 $ 324,927 Standby and commercial letters of credit 6,595 7,287 Total $ 453,007 $ 332,214 A loan commitment is a binding contract to lend up to a maximum amount for a specified period of time provided there is no violation of any financial, economic, or other terms of the contract. A standby letter of credit obligates us to honor a financial commitment to a third party should our customer fail to perform. Many loan commitments and most standby letters of credit expire unfunded, and, therefore, total commitments do not represent our future funding obligations. Loan commitments and letters of credit are made under normal credit terms, including interest rates and collateral prevailing at the time, and usually require the payment of a fee by the customer. Commercial letters of credit are commitments generally issued to finance the movement of goods between buyers and sellers. Our exposure to credit loss, assuming commitments are funded, in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of those instruments. We do not anticipate any material losses as a result of the commitments. Litigation – In the normal course of business, we are at all times subject to various pending and threatened legal actions. The relie f or damages sought in some of these actions may be substantial. After reviewing pending and threatened actions with counsel, management considers that the outcome of such actions will not have a material adverse effect on our financial position; however, we are not able to predict whether the outcome of such actions may or may not have a material adverse effect on results of operations in a particular future period as the timing and amount of any resolution of such actions and relationship to the future results of operations are not known. Severance Compensation Plan and Change in Control Agreements – We have adopted a Severance Compensation Plan and a Change of Control Agreement (the “Plan s ”) for the benefit of certain officers and key members of management. The Plan’s purpose is to protect and retain certain qualified employees in the event of a change in control and to reward those qualified employees for loyal service to us by providing severance compensation to them upon their involuntary termination of employment after a change in control of Southwest. At December 31, 2015 , we have not recorded any amounts in the Consolidated Financial Statements relating to the Plan s . If a change of cont rol were to occur, the maximum amount payable to certain officers and key members of management would approximate $ 7.7 million. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segments [Abstract] | |
Operating Segments | Note 20 : Operating Segments We operat e four principal segments: Oklahoma Banking, Texas Bankin g, Kansas Banking , and Other Operations. The Oklahoma Banking segment provides deposit and lending services and consists of residential mortgage lending services to customers. Due to the size and the management structure, Colorado Banking is included within Oklahoma Banking. The Texas Banking segment and the Kansas Banking segment provide deposit a nd lending services . Other Operations includes our funds management unit and corporate investments. Prior to the fourth quarter of 201 5 , we disclosed a Mortgage Banking segment , which included 1-4 family mortgages and the available for sale loans. For segment reporting, the Mortgage Banking segment has been combined with and into the Oklahoma Banking segment due to those loans being managed from that location. Prior period numbers have been adjusted to reflect this change. This adjustment has no financial statement impact. The primary purpose of the funds management unit is to manage our overall internal liquidity needs and interest rate risk. Each segment borrows funds from or provides funds to the funds management unit as needed to support its operations. The value of funds provided to and the cost of funds borrowed from the funds management unit by each segment are internally priced at rates that approximate market rates for funds with similar duration. The yield used in the funds transfer pricing curve is a blend of rates based on the volume usage of retail and brokered certificates of deposit and FHLB advances. The accounting policies of each reportable segment are the same as ours . Expenses for consolidated back-office operations are allocated to operating segments based on estimated uses of those services. General overhead expenses such as executive administration, accounting, and audit are allocated based on the direct expense and/or deposit and loan volumes of the operating segment. Income tax expense for the operating segments is calculated at statutory rates. The Other Operations segment records the tax expense or benefit necessary to reconcile to the consolidated financial statements. Capital is assigned to each of the segments using a risk-based capital pricing methodology that assigns capital ratios by asset, deposit, or revenue category based on credit risk, interest rate risk, market risk, operational risk, and liquidity risk factors . There were no significant changes in 2015 due to funds transfer pricing, capital assignments, or expense allocations. The following table summarizes financial results by operating segment: For the year ended December 31, 2015 Oklahoma Texas Kansas Other Total (Dollars in thousands) Banking Banking Banking Operations* Company Net interest income $ 42,019 $ 21,168 $ 6,277 $ (2,047) $ 67,417 Provision (credit) for loan losses (2,068) (632) (868) 2 (3,566) Noninterest income 10,134 1,485 1,473 1,365 14,457 Noninterest expenses 33,136 14,324 6,152 4,628 58,240 Income (loss) before taxes 21,085 8,961 2,466 (5,312) 27,200 Taxes on income 7,591 3,227 888 (1,913) 9,793 Net income (loss) $ 13,494 $ 5,734 $ 1,578 $ (3,399) $ 17,407 * Includes externally generated revenue of $2.1 million, primarily from investing services, and an internally generated loss of $2.8 million from the funds management unit Total loans at period end $ 1,048,473 $ 580,476 $ 150,480 $ - $ 1,779,429 Total assets at period end 1,098,735 578,749 149,847 529,691 2,357,022 Total goodwill at period end 12,447 1,020 - - 13,467 Total deposits at period end 1,374,227 209,146 119,313 181,419 1,884,105 For the year ended December 31, 2014 Oklahoma Texas Kansas Other Total (Dollars in thousands) Banking Banking Banking Operations* Company Net interest income $ 38,846 $ 19,187 $ 9,469 $ (2,498) $ 65,004 Provision (credit) for loan losses (2,561) (3,640) (425) 2 (6,624) Noninterest income 9,030 1,594 1,576 6,731 18,931 Noninterest expenses 31,363 13,387 8,616 3,546 56,912 Income before taxes 19,074 11,034 2,854 685 33,647 Taxes on income 7,152 4,138 1,070 257 12,617 Net income $ 11,922 $ 6,896 $ 1,784 $ 428 $ 21,030 * Includes externally generated revenue of $7.6 million, primarily from investing services, and an internally generated loss of $3.3 million from the funds management unit Total loans at period end $ 793,262 $ 460,680 $ 146,043 $ 6 $ 1,399,991 Total assets at period end 805,704 458,489 147,256 530,585 1,942,034 Total goodwill at period end 194 1,020 - - 1,214 Total deposits at period end 1,113,477 224,634 110,901 84,987 1,533,999 For the year ended December 31, 2013 Oklahoma Texas Kansas Other Total (Dollars in thousands) Banking Banking Banking Operations* Company Net interest income $ 35,395 $ 18,949 $ 10,527 $ (2,221) $ 62,650 Provision (credit) for loan losses (338) (6,403) (472) 4 (7,209) Noninterest income 9,644 1,305 1,944 750 13,643 Noninterest expenses 30,287 9,494 11,898 3,632 55,311 Income (loss) before taxes 15,090 17,163 1,045 (5,107) 28,191 Taxes on income 5,757 6,548 399 (1,948) 10,756 Net income (loss) $ 9,333 $ 10,615 $ 646 $ (3,159) $ 17,435 * Includes externally generated loss of $1.6 million, primarily from investing services, and an internally generated revenue of $0.1 million from the funds management unit Total loans at period end $ 705,206 $ 366,697 $ 198,992 $ 8 $ 1,270,903 Total goodwill at period end 194 1,020 - - 1,214 Total assets at period end 712,898 361,058 203,631 703,836 1,981,423 Total deposits at period end 1,115,610 207,227 247,884 13,365 1,584,086 |
Parent Company Condensed Financ
Parent Company Condensed Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Condensed Financial Information [Abstract] | |
Parent Company Condensed Financial Information | Note 21 : Parent Company Condensed Financial Information Following are the condensed financial statements of Southwest Bancorp, Inc. (“Parent Company only”) for the periods indicated: At December 31, (Dollars in thousands) 2015 2014 Statements of Financial Condition Assets: Cash and cash equivalents $ 30,469 $ 21,526 Investment in subsidiary banks 305,064 280,754 Investments in other subsidiaries 8,444 8,294 Investment securities, available for sale - 759 Other assets 6,393 8,061 Total $ 350,370 $ 319,394 Liabilities: Subordinated debentures 51,548 46,393 Other liabilities 2,724 2,215 Shareholders' Equity: Common stock and related accounts 296,098 270,786 Total $ 350,370 $ 319,394 For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Statements of Operations Income: Cash dividends from subsidiaries $ 20,046 $ 18,045 $ 19,625 Noninterest income 45 34 333 Investment income 20 1,337 243 Other operating income 25 3 - Security gains 163 - - Total income 20,299 19,419 20,201 Expense: Interest on subordinated debentures 1,566 1,505 4,168 Noninterest expense 1,756 1,317 1,808 Total expense 3,322 2,822 5,976 Total income before taxes and equity in undistributed income of subsidiaries 16,977 16,597 14,225 Taxes on income (1,167) (582) (2,027) Income before equity in undistributed income of subsidiaries 18,144 17,179 16,252 Equity in undistributed income (loss) of subsidiaries (737) 3,851 1,183 Net income $ 17,407 $ 21,030 $ 17,435 For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Statements of Cash Flows Operating activities: Net income $ 17,407 $ 21,030 $ 17,435 Equity in undistributed (income) loss of subsidiaries 737 (3,851) (1,183) Other, net 2,295 2,937 (2,341) Net cash provided by operating activities 20,439 20,116 13,911 Investing activities: Available for sale securities: Purchases - (1,121) - Sales / Maturities 750 2,540 32 Investment in/capital contribution to other subsidiaries - - 15,000 Outlays for business acquisitions (4,697) - - Other, net (155) - - Net cash provided by (used in) investing activities (4,102) 1,419 15,032 Financing activities: Net proceeds from issuance of common stock 682 1,386 2,708 Redemption of subordinated debentures - - (35,570) Purchases of treasury stock (8,624) (10,302) - Common stock dividend (4,607) (3,132) - Other, net 5,155 - (2,287) Net cash used in financing activities (7,394) (12,048) (35,149) Net increase (decrease) in cash and cash equivalents 8,943 9,487 (6,206) Cash and cash equivalents, Beginning of year 21,526 12,039 18,245 End of year $ 30,469 $ 21,526 $ 12,039 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | N ote 22: Commitments and Contingencies Customer Risk Management Interest Rate Swap On September 9, 2014, we entered into an agreement to provide one of our commercial borrowers a customer interest rate swap that effectively converts the loan interest rate from floating rate based on LIBOR to a fixed rate for the customer. As of December 31, 2015, the floating rate loan had an outstanding balance of $ 15.9 m illion. The option to execute the swap is conditional on compliance with the loan and swap agreements, and will be subject to the terms of the International Swaps and Derivatives Association Master Agreement. The fixed pay amount will be based on the market rates at the time of execution, and it is our intention to simultaneously execute an offsetting trade with an approved swap dealer counterparty with identical terms. Legal Action On March 18, 2011 , an action entitled Ubaldi, et al. v SLM Corporation (“Sallie Mae”), et al., Case No. 3:11-cv-01320 EDL (the “Ubaldi Case”) was filed in the U.S. District Court for the Northern District of California as a putative class action with respect to certain loans that the plaintiffs claim were made by Sallie Mae. The loans in question were made by various banks, including Bank SNB, and sold to Sallie Mae. Plaintiffs claim that Sallie Mae entered into arrangements with chartered banks in order to evade California law and that Sallie Mae is the de facto lender on the loans in question and, as the lender on such loan, Sallie Mae charged interest and late fees that violates California usury law and the California Business and Professions Code. Sallie Mae has denied all claims asserted against it and has stated that it intends to vigorously defend the action. On March 26, 2014, the Court denied the plaintiffs’ request to certify the class; however, the Court permitted the plaintiffs to amend the filing to redefine the class. Plaintiffs filed a renewed motion on June 23, 2014. On December 19, 2014, the Court issued a decision on the renewed motion, certifying a class with respect to claims of improper late fees, but denying class certification with respect to plaintiffs’ usury claims. Plaintiffs thereafter filed a motion seeking leave to amend their complaint to add additional parties, which Sallie Mae opposed, and, on March 24, 2015, the Court denied the plaintiffs’ motion. On June 5, 2015, the law firm Cohen Milstein Sellers & Toll based in Washington, D.C. entered its appearance as co-counsel on behalf of plaintiffs. Bank SNB is not specifically named in the action. However, in the first quarter of 2014, Sallie Mae provided Bank SNB with a notice of claims that have been asserted against Sallie Mae in the Ubaldi Case (the “Notice”). Sallie Mae asserts in the Notice that Bank SNB may have indemnification and/or repurchase obligations pursuant to the ExportSS Agreement dated July 1, 2002 between Sallie Mae and Bank SNB, pursuant to which the loans in question were made by Bank SNB. Bank SNB has substantial defenses with respect to any claim for indemnification or repurchase ultimately made by Sallie Mae, if any, and intends to vigorously defend against any such claims. Due to the uncertainty regarding (i) the size and scope of the class, (ii) the particular class members, (iii) the late fees charged to particular class members, (iv) the theories, if any, under which the plaintiffs might prevail, (v) whether Sallie Mae will make a claim against us for indemnification or repurchase, and (vi) the likelihood that Sallie Mae would prevail if it makes such a claim, we cannot estimate the amount or the range of losses that may arise as a result of the Ubaldi Case. In the normal course of business, we are at all times subject to various pending and threatened legal actions. The relief or damages sought in some of these actions may be substantial. After reviewing pending and threatened actions with counsel, management currently does not expect that the outcome of such actions will have a material adverse effect on our financial position; however, we are not able to predict whether the outcome of such actions may or may not have a material adverse effect on results of operations in a particular future period as the timing and amount of any resolution of such actions and relationship to the future results of operations are not known. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 12 Months Ended |
Dec. 31, 2015 | |
New Authoritative Accounting Guidance [Abstract] | |
New Authoritative Accounting Guidance | Note 2 3 : New Authoritative Accounting Guidance In January 2015, FASB issued Accounting Standard Update No. 2015-01, Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items; (“ASU 2015-01”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have an impact on the financial statements. In February 2015, FASB issued Accounting Standard Update No. 2015-02, Consolidation: Amendments to the Consolidation Analysis; (“ASU 2015-02”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have a material impact on the financial statements. In April 2015, FASB issued Accounting Standard Update No. 2015-03, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs; (“ASU 2015-03”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have a material impact on the financial statements. In April 2015, FASB issued Accounting Standard Update No. 2015-04, Compensation—Retirement Benefits: Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets; (“ASU 2015-04”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have a material impact on the financial statements. In May 2015, FASB issued Accounting Standard Update No. 2015-07, Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share; (“ASU 2015-07”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have a material impact on the financial statements. In May 2015, FASB issued Accounting Standard Update No. 2015-08, Business Combinations: Pushdown Accounting, Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115; (“ASU 2015-08”). The ASU does not require new recurring disclosures. The guidance becomes effective upon issuance, and it is not expected to have a material impact on the financial statements. In June 2015, FASB issued Accounting Standard Update No. 2015-10, Technical Corrections and Improvements; (“ASU 2015-10”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016 for transition guidance and upon issuance for all other, and it is not expected to have a material impact on the financial statements. In July 2015, FASB issued Accounting Standard Update No. 2015-12, Plan Accounting: Defined Benefit Pensions Plans, Defined Contribution Pension Plans, Health Welfare Benefit Plans: Fully Benefit-Responsive Investment Contracts, Plan Investment Disclosures, Measurement Date Practical Expedient; (“ASU 2015-12”). The ASU does not require new recurring disclosures. The guidance becomes effective for us on January 1, 2016, and it is not expected to have a material impact on the financial statements. In August 2015, FASB issued Accounting Standard Update No. 2015-14: Revenue from Contracts with Customers: Deferral of the Effective Date; (“ASU 2015-14”). The guidance is effective upon issuance, and it is not expected to have a material impact on the financial statements. In February 201 6 , FASB issued Accounting Standard Update No. 201 6 - 02 : Accounting for Leases ; (“ASU 201 6 - 02 ”). |
Summary Of Significant Accoun32
Summary Of Significant Accounting And Reporting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting And Reporting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations – Southwest Bancorp Inc. (“we”, “our”, “us”, or “Southwest”), incorporated in 1981, is a financial holding company headquartered in Stillwater, Oklahoma engaged primarily in commercial and retail financial services in the states of Oklahoma, Texas, Kansas , and Colorado . The accompanying consolidated financial statements include the accounts of Bank SNB, an Oklahoma banking corporation established in 1894, and the consol idated subsidiaries of Bank SNB . Bank SNB is a w holly owned, direct subsidiary of ours. All significant intercompany balances and transactions have been eliminated in consolidation. On October 9, 2015, we completed the acquisition of First Commercial Bancshares , Inc. (“Bancshares” or “FCBI”) , through the merger of Bancshares with a nd into us (the “Merger”). The M erger was consummated pursuant to the Agreement and Plan of Reorganization (“the “Merger Agreement”) dated as of May 27, 2015. The Merger expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also expands our geographic footprint to Colorado with three branches in Denver and one in Colorado Springs. As of the close of business on November 15, 2013, we effected an affiliated merger of our wholly-owned subsidiary banks, Bank of Kansas and Stillwater National Bank and Trust Company (“Stillwater National”) , whereby Bank of Kansas merged with and into Stillwater National. Stillwater National was rebranded Bank SNB (“Bank SNB”) in connection with the merger. The consolidated bank offers customers a greater banking experience across our f our state region and now does business in all markets under the new name, Bank SNB. Bank SNB converted to an Oklahoma state-chartered member bank effective October 1, 2014. |
Basis of Presentation | Basis of Presentation – The accounting and reporting policies conform to accounting principles generally accepted in the United States and to generally accepted practices within the banking industry. The Consolidated Financial Statements include the accounts of Southwest and all other entities in which we have a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior year amounts on the Consolidated Statements of Operations to conform to current year presentation. We have evaluated subsequent events for potential recognition and disclosure through the issue date of the Consolidated Financial Statements included in this Annual Report on Form 10-K. |
Management Estimates | Management Estimates – In preparing our financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilitie s as of the dates shown on the Consolidated Statements of Financial C ondition and revenues and expenses during the periods reported. Actual results could differ significantly from those estimates. Changes in economic conditions could affect the determination of material estimates such as the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, income taxes, and the fair value of financial instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents – For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from depository institutions, and federal funds sold. Interest-bearing balances held at depository institutions were $ 53.2 million at December 31, 201 5 and $ 121.2 million at December 31, 201 4 . Federal funds sold are sold for one-to-four day periods. Cash paid for interest tot aled $ 7.0 milli on in 201 5 , $ 6.9 million in 201 4 , and $ 11.5 million in 201 3 . Cash paid for income taxes totale d $ 7.1 m illion in 201 5 , $ 4.0 million in 201 4 , and $ 0.4 million in 201 3 . Noncash transactions included stock issued for the acquisition of Bancshares of $21.4 million in 2015 and transfer of loans to other real estate t otaling $ 0.3 million in 201 5 and $ 2.2 million in 201 4 and $2.6 million in 201 3 . Bank SNB is required by the FRB to maintain average reserve balances. Cash and cash equivalents in the Consolidated Statements of Financial Condition include restricted amounts of $ 7.0 mil lion and $ 2.0 million at December 31, 201 5 and December 31, 201 4 , respectively. |
Investment Securities | Investment Securities – Investments in debt and equity securities are identified as held to maturity or available for sale based on management considerations of asset/liability strategy, changes in interest rates and prepayment risk, the need to increase liquidity, and other factors, including management’s intent and ability to hold securities to maturity. We have the ability and intent to hold to maturity our investment securities classified as held to maturity. We had no investments held for trading purposes for any period presented. Under certain circumstances (including the deterioration of the issuer’s creditworthiness, a change in tax law, or statutory or regulatory requirements), we may change the investment security classification. The classifications we utilize determine the related accounting treatment for each category of investments. Available for sale securities are accounted for at fair value with unrealized gains or losses, net of taxes, excluded from operations and reported as accumulated other comprehensive income or loss. Held to maturity securities are accounted for at amortized cost. Securities with limited marketability, such as FRB stock, FHLB stock, and certain other investments, are carried at cost and included in other assets. All investment securities are adjusted for amortization of premiums and accretion of discounts. Amortization of premiums and accretion of discounts are recorded to operations over the contractual maturity or estimated life of the individual investment using the level yield method. Gain or loss on sale of investments is based upon the specific identification method. Income earned on our investments in state and political subdivisions generally is not subject to ordinary Federal income tax. In accordance with authoritative accounting guidance under ASC 320, Debt and Equity Securities , declines in fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Under this guidance, we evaluate investment securities for other-than-temporary impairment on at least a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. |
Federal Reserve Bank and Federal Home Loan Bank Stock | Federal Reserve Bank and Federal Home Loan Bank Stock – Bank SNB is a m ember of its regional FRB and FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings a nd other factors, and may invest in additional accounts. Both FRB and FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans | Loans – Interest on loans is accrued and credited to operations based upon the principal amount outstanding. Loan origination fees and certain costs of originated loans are amortized as an adjustment to the yield over the term of the loan. Net unamortized deferred loan fees wer e $ 1.5 million at December 31, 2015 and $1.0 million at 2014. Loans are reported at the principal balance outstanding net of the unamortized deferred loan fees. In general, our policy for nonaccrual loans requires that accrued interest income on nonaccrual loans is written off after the loan is 90 days past due, and that subsequent interest income is recorded when cash receipts are received from the borrower. We identify past due loans based on contractual terms on a loan by loan basis. A loan is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The allowance for loan losses related to loans that are evaluated for impairment is based either on the discounted cash flows using the loan’s initial effective interest rate or on the fair value of the collateral for certain collateral dependent loans. Smaller balance, homogeneous loans, including mortgage, and consumer, are collectively evaluated for impairment. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Loans Held for Sale -- We originate real estate mortgage loans for either portfolio investment or sale in the secondary market. During the period of origination, real estate mortgage loans are designated as held either for investment purposes or sale. Mortgage loans held for sale are generally sold within a one-month period from loan closing at amounts determined by the investor commitment based upon the pricing of the loan. |
Loans Acquired through Transfer | Loans Acquired through Business Combination with Deteriorated Credit Quality – The accounting guidance of ASC 310.30, Loan and Debt Securities Acquired with Deteriorated Credit Quality , applies to loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payment receivables. In accordance with this guidance, these loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield”, is recognized as interest inc ome over the life of the loan using a method that approximates the level-yield method. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acqui sition, or the “nonaccretable difference”, are not recognized as a yield adjustment, a loss accrual, or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairments. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. |
Loss Share Receivable | Loss Share Receivable – Bank SNB and the FDIC entered into loss sharing agreements that provide d Bank SNB with significant protection against credit losses from loans and related assets acquired in the FNBA FDIC-assisted transaction. Under these agreements, the FDIC reimburse d Bank SNB 80 % of net losses up to $ 35.0 million on covered assets, primarily acquired loans and other real estate, and 95 % of any net losses above $ 35.0 million. Bank SNB service d the covered asse ts. The loss sharing agreement had a term of ten years for one-to-four family residential loans and five years for all other lo an types. The five-year period for other loans expired June 30, 2014. T he expected payments from the FDIC under the loss sharing agreements are recorded as part of loans receivable in our Consolidated Statements of Financial Condition. As of December 31, 2015, the loss share receivable is zero . On April 10, 2015, Bank SNB entered into an agreement with the FDIC to terminate these loss sharing agreements with the FDIC. All future recoveries, charge-offs, and expenses related to these covered assets are now recognized entirely by Bank SNB. The difference between the undiscounted expected recoveries at acquisition and the fair value of the loss share receivable is the “accretable portion” and is recognized as interest income over the estimated life of the acquired loan portfolio. The initially recorded loss share receivable represented 85% of the aggregate loan discount related to the acquired loan portfolio. Because of the relationship of the loss share receivable to the loan discount, when an adjustment is made to a loan discount to reflect changes in the expected cash flows of the loan, an adjustment to the corresponding loss share receivable attributable to that loan will also occur. |
Allowance for Loan Losses | Allowance for Loan Losses – The allowance for loan losses is a reserve established through a provision for loan losses charged to operations. Loan amounts which are determined to be uncollectible are charged against this allowance, and recoveries, if any, are added to the allowance. The appropriate amount of the allowance is based on continuous review and evaluation of the loan portfolio and ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance for loan losses is determined in accordance with regulatory guidelines and generally accepted accounting principles and is comprised of two primary components, specific and general. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The specific component relates to loans that are individually classified as impaired. Loans deemed to be impaired are evaluated on an individual basis consistent with ASC 310.10.35, Receivables: Subsequent Measurement . The amount and level of the impairment allowance is ultimately determined by management’s estimate of the amount of expected future cash flows or, if the loan is collateral dependent, on the value of the collateral, which may vary from period to period depending on changes in the financial condition of the borrower or changes in the estimated value of the collateral. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and deemed as impaired, and classified as nonperforming, potential problem, or performing restructured as applicable. Charge-offs against the allowance for impaired loans are made when and to the extent the loan is deemed uncollectible. The general component of the allowance is calculated based on ASC 450, Contingencies . Loans not evaluated for specific allowance are segmented into loan pools by type of loan. The commercial real estate and real estate construction pools are further segmented by the market in which the loan collateral is located. Our primary markets are Oklahoma, Texas, Kansas , and Colorado , and loans secured by real estate in those states are included in the “in-market” pool, with the remaining defaulting to the “out-of-market” pool. Estimated allowances are based on historical loss trends with adjustments factored in based on qualitative risk factors both internal and external to us. The historical loss trend is determined by loan pool and segmentation and is based on the actual loss history experienced by us over the most recent three years. The qualitative risk factors include, but are not limited to, economic and business conditions, changes in lending staff, lending policies and procedures, quality of loan review, changes in the nature and volume of the portfolios, loss and recovery trends, asset quality trends, and legal and regulatory considerations. Independent appraisals on real estate collateral securing loans are obtained at origination. New appraisals are obtained periodically and upon discovery of factors that may significantly affect the value of the collateral. Appraisals usually are received within 30 days of request. Results of appraisals on nonperforming and potential problem loans are reviewed promptly upon receipt and also are reviewed monthly and considered in the determination of the allowance for loan losses. We are not aware of any significant time lapses in the process that have resulted, or would result in, a significant delay in determination of a credit weakness, the identification of a loan as nonperforming, or the measurement of an impairment. Management strives to carefully monitor credit quality and to identify loans that may become nonperforming. At any time, however, there are loans included in the portfolio that will result in losses but that have not been identified as nonperforming or potential problem loans. Because the loan portfolio contains a significant number of commercial and commercial real estate loans with relatively large balances, the unexpected deterioration of one or a few of such loans may cause a significant increase in nonperforming assets and may lead to a material increase in charge-offs and the provision for loan losses in future periods. |
Liability for Credit Losses on Unfunded Loan Commitments | Liability for Credit Losses on Unfunded Loan Commitments – Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The reserve for unfunded loan commitments is a liability on our C onsolidated S tatement s of F inancial C ondition in other liabilities. The reserve is computed using a methodology similar to that used to determine the allowance for loan losses, modified t o take into account the probability of a drawdown on the commitment. At December 31, 2015 and 2014 the balance was $ 2.4 mill ion. |
Premises and Equipment | Premises and Equipment – Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis over the estimated useful life of each asset. Useful liv es range from 10 years to 40 years for buildings and improvements, and 3 years to 10 years for furniture, fixtures, and equipment. We review the carrying value of long-lived assets used in operations when changes in events or circumstances indicate that the assets might have become impaired. If circumstances required, the review would initially include a comparison of carrying value to the undiscounted cash flows estimated to be generated by those assets. If this review indicates that an asset is impaired, we would record a charge to operations to reduce the asset’s carrying value to fair value, which is based on estimated discounted cash flows. Long-lived assets that are held for disposal are valued at the lower of the carrying amount or fair value less costs to sell. |
Other Real Estate | Other Real Estate – Assets acquired through or instead of loan foreclosure are considered other real estate. Other real estate is initially recorded at the lesser of the carrying value or fair value less the estimated costs to sell the asset. Write-downs of carrying value required at the time of foreclosure are recorded as a charge to the allowance for loan losses. Costs related to the development of such real estate are capitalized, and costs related to holding the property are expensed. Foreclosed property is subject to periodic revaluation based upon estimates of fair value. In determining the valuation of other real estate, management obtains independent appraisals for significant properties. Valuation adjustments are provided, as necessary, by charges to operations. Profits and losses from operations or sales of foreclosed property are recognized as incurred . At December 31, 201 5 and 201 4 , the balances of other real estate w ere $2.3 m illion and $ 3.1 million, respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Intangible assets consist of goodwill, core deposit intangibles, and loan servicing rights. Goodwill and core deposit intangibles, which generally result from a business combination, are accounted for under the provisions of ASC 350, Intangibles - Goodwill and Other , and ASC 805, Business Combinations. Loan servicing rights are accounted for under the provisions of ASC 860, Transfers and Servicing . Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired and is assigned to reporting units. Goodwill is not amortized, but is tested for impairment at least annually or more frequently if conditions indicate impairment may exist . The evaluation of possible impairment involves significant judgment based upon short-term and long-term projections of future performance of each reporting unit. Core deposit intangibles are amortized using an economic life method based on deposit attrition. As a result, amortization will decline over time with most of the amortization occurring during the initial years. The net book value of core deposit intangibles is adjusted for applicable branch sales, if any, and is evaluated for impairment when economic conditions indicate impairment may exist. When real estate mortgage loans and other loans are sold with servicing retained, an intangible servicing right is initially capitalized based on estimated fair value at the point of origination with the income statement effect recorded in gains on sales of loans. The servicing rights are amortized over the period of estimated net servicing income. Impairment of loan servicing rights is assessed based on the fair value of those rights. We review the carrying value of loan servicing rights quarterly for impairment. At least annually, we obtain estimates of fair value from outside sources to corroborate the results of the valuation model. At December 31, 2015 and 2014, the fair values of loan servicing rights were $3.7 million and $ 3.5 mi llion , respectively . |
Fair Value Measurements | Fair Value Measurements – ASC 820, Fair Value Measurements , defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parame ters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. |
Derivative Financial Instruments | Derivative Financial Instruments – Our derivative credit risk policy and our hedging policy permits the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on our balance sheet. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. We consider a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80 % to 125 % of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, we will formally assess whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, we will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. Our qualified customers have the opportunity to participate in our interest rate swap program for the purpose of managing interest rate risk on their variable rate loans with us. If we enter into such agreements with customers, then offsetting agreements are executed between us and approved dealer counterparties to minimize our market risk from changes in interest rates. The counterparty contracts are identical to customer contracts in terms of notional amounts, interest rates, and maturity dates , except for a fixed pricing spread or fee paid to us by the dealer counterparty. These interest rate swaps carry varying degrees of credit, interest rate and market or liquidity risks. The fair value of such derivative instruments are recognized as either non-hedge derivative assets or liabilities in the Consolidated Statements of Financial C ondition. |
Loan Servicing Income | Loan Servicing Income – We earn fees for servicing real estate mortgages and other loans owned by others. These fees are generally calculated on the outstanding principal balance of the loans serviced and are recorded as income when earned. |
Taxes on Income | Taxes on Income – We file consolidated income tax returns with our subsidiaries. Income tax expense is the total of the current year income tax due or refundable, adjusted for permanent differences between items reported in the financial statements and those reported for tax purposes and the change in deferred tax assets and liabilities. Under the asset and liability method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The net deferred tax asset is reflected as a co mponent of other assets on the C onsolidated Statements of Financial Condition . A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and result s of recent operations. Management reviewed all evidence and concluded that a valuation allowance was not needed. |
Earnings per Common Share | Earnings per Common Share – ASC 260 , Earnings Per Share , provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We ha ve determined that our unvested restricted stock awards are participating securities. Accordingly, earnings per common share is computed using the two-class method prescribed by ASC 260. Using this method, basic earnings per common share is computed based upon net income available to common shareholders divided by the weighted average number of common shares outstanding during each period, which exclude the outstanding unvested restricted stock. Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock options using the treasury stock method. Stock options and warrants, where the exercise price was greater than the average market price of common shares, were not included in the computation of earnings per diluted share as they would have been ant idilutive. For t he years ended December 31, 2015, 2014, and 2013 we had 0 in antidilutive options to purchase common shares, respectively. In 2013, an antidilutive warrant to purchase 703,753 shares of common stock was repurchased. A reconciliation of the weighted-average common shares used in the calculations of basic and diluted earnings per common share for the reported periods is provided at “ Note 1 5 Earnings per Common Share ” . |
Share-Based Compensation | Share-Based Compensation – The Southwest Bancorp, Inc. 2008 Stock Based Award Plan (the “2008 Stock Plan”), provides selected key employees with the opportunity to acquire common stock through stock options or restricted stock awards. Compensation cost is recognized based on the fair value of these awards at the date of grant. The exercise price of all options granted under the 2008 Stock Plan is the fair market value on the grant date, while the market price of our common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Depending upon terms of the stock option agreements, stock options generally become exercisable on an annual basis and expire from five to ten years after the date of grant. The 2008 Stock Plan authorized awards for up to 800,000 shares of our common stock over its ten -year term. |
Comprehensive Income | Comprehensive Income – Our comprehensive income (net income plus all other changes in shareholders’ equity from non-equity sources) consists of our net income, the after tax effect of changes in the net unrealized gains (losses) in our available for sale securities, reclassification adjustments for net (gains) losses, and changes in the accumulated gain (loss) on the effective cash flow hedging instrument. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Reconciliation Of Cash Received From The Acquisition | (Dollars in thousands) Fair value of assets acquired $ 301,499 Liabilities assumed (259,718) Net assets acquired 41,781 Stock issued as consideration (21,366) Cash acquired (32,699) Cash received in business combination, net of cash paid $ (12,284) |
Schedule Of Assets Acquired And Liabilities Assumed | First Commercial Bancshares, Inc. Acquired from Bancshares Fair Value Adjustments Fair Value (Dollars in thousands) Assets, Acquired Cash and due from banks $ 5,874 $ - $ 5,874 Interest-bearing deposits with other banks 17,196 - 17,196 Federal funds sold 9,629 - 9,629 Cash and cash equivalents 32,699 - 32,699 Investment securities 34,762 (184) 34,578 Loans 210,223 (7,790) 202,433 Allowance for loan losses 4,298 (4,298) - Total loans receivable 205,925 (3,492) 202,433 Bank premises and equipment, net 4,241 1,341 5,582 Cash value of life insurance 7,153 - 7,153 Accrued interest receivable 790 - 790 Deferred tax asset 1,650 15 1,665 Core deposit intangible 55 2,646 2,701 Other assets 1,644 - 1,644 Total assets acquired $ 288,919 $ 326 $ 289,245 Liabilities, Assumed Deposits Demand and non-interest bearing $ 101,464 $ - $ 101,464 Savings and interest-bearing transaction accounts 59,356 - 59,356 Time deposits 84,410 - 84,410 Total Deposits 245,230 - 245,230 Other borrowings 7,180 - 7,180 Accrued interest payable and other liabilities 1,833 320 2,153 Subordinated debentures 5,155 - 5,155 Total liabilities assumed 259,398 320 259,718 Equity Equity 31,158 (31,158) - Total equity assumed 31,158 (31,158) - Total liabilities and equity assumed $ 290,556 $ (30,838) $ 259,718 Net assets acquired 29,527 Purchase price 41,781 Goodwill $ 12,254 |
Pro Forma Condensed Financial Information | For the year ended December 31, 2015(1) 2014 (Dollars in thousands except per share data) Interest income $ 84,399 $ 84,710 Interest expense 8,049 8,236 Net interest income 76,350 76,474 Provision for loan losses (3,080) (6,398) Non-interest income 16,292 21,439 Non-interest expense (2) 68,860 67,779 Income before taxes 26,862 36,532 Income taxes 9,601 13,646 Net income 17,261 22,886 Earnings allocated to participating securities (258) (253) Numerator for earnings per common share $ 17,003 $ 22,633 Earnings per share: Basic $ 0.90 $ 1.10 Diluted 0.89 1.09 Basic weighted average shares outstanding 18,975,450 20,631,471 Diluted weighted average shares outstanding 19,129,533 20,774,348 ( 1 ) Subsequent to the M erger date, activity related to Bancshares contributed pre-tax revenues of $2.9 million and incurred pre-tax expenses of $1.2 million, resulting in $1.1 million total contribution to our net income. We incurred pre-tax non-recurring expenses totaling $1.9 million, including: $0.5 million in personnel related expenses, $0.4 million in data processing expenses, $0.5 million in legal, accounting and investment banker expenses, and $0.5 million in marketing and other expenses. (2) The 2015 pro forma non-interest expense is adjusted to exclude $2.5 million of pre-tax non-recurring expenses incurred by Bancshares prior to the Merger date attributed to the following: $0.7 million in employee related expenses, $0.4 million in legal expenses, and $1.4 million to discount a loan pursuant to a provision of the Merger Agreement. |
Changes In The Carrying Amounts And Accretable Yields For ASC 310.30 Loans | For the year ended December 31, 2015 2014 Carrying Carrying Accretable amount Accretable amount (Dollars in thousands) Yield of loans Yield of loans Balance at beginning of period $ 540 $ 4,971 $ 1,597 $ 16,427 Acquisition (11) 4,396 - - Payments received 1 (1,814) (18,681) (11,049) Transfers to other real estate / repossessed assets 541 - - - Net charge-offs - (81) (10) (407) Net reclassifications to / from nonaccretable amount 240 - - - Accretion (504) 442 (1,047) - Balance at end of period $ 807 $ 7,914 $ 540 $ 4,971 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Summary Of Amortized Cost And Fair Values Of Investment Securities | Amortized Gross Unrealized Fair (Dollars in thousands) Cost Gains Losses Value At December 31, 2015 Held to Maturity: Obligations of state and political subdivisions $ 11,797 $ 488 $ (3) $ 12,282 Total $ 11,797 $ 488 $ (3) $ 12,282 Available for Sale: Federal agency securities $ 78,363 $ 220 $ (373) $ 78,210 Obligations of state and political subdivisions 47,079 620 (134) 47,565 Residential mortgage-backed securities 240,804 936 (1,852) 239,888 Asset-backed securities 9,639 - (224) 9,415 Corporate debt 25,251 148 (146) 25,253 Total $ 401,136 $ 1,924 $ (2,729) $ 400,331 At December 31, 2014 Held to Maturity: Obligations of state and political subdivisions $ 12,362 $ 528 $ (10) $ 12,880 Total $ 12,362 $ 528 $ (10) $ 12,880 Available for Sale: Federal agency securities $ 99,959 $ 359 $ (772) $ 99,546 Obligations of state and political subdivisions 32,760 519 (140) 33,139 Residential mortgage-backed securities 177,391 1,686 (850) 178,227 Asset-backed securities 9,608 - (60) 9,548 Corporate debt 32,557 240 (26) 32,771 Total $ 352,275 $ 2,804 $ (1,848) $ 353,231 |
Amortized Cost And Approximate Fair Value Of Investment Securities By Maturity Date | Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value One year or less $ 17,439 $ 17,290 $ 1,677 $ 1,675 More than one year through five years 270,730 270,250 5,623 5,784 More than five years through ten years 103,016 102,612 4,497 4,823 More than ten years 9,951 10,179 - - Total $ 401,136 $ 400,331 $ 11,797 $ 12,282 |
Summary Of Sales Of Available For Sale Securities | (Dollars in thousands) 2015 2014 2013 Proceeds from sales $ 162 $ 2,545 $ 2,744 Gross realized gains 162 1,120 - Gross realized losses - - - |
Summary Of Securities With Gross Unrealized Losses And Their Fair Values | Continuous Unrealized Amortized cost of Loss Existing for: Fair value of Number of securities with Less Than More Than securities with (Dollars in thousands) Securities unrealized losses 12 Months 12 Months unrealized losses At December 31, 2015 Held to Maturity: Obligations of state and political subdivisions 1 $ 1,677 $ - $ (3) $ 1,674 1 $ 1,677 $ - $ (3) $ 1,674 Available for Sale: Federal agency securities 14 $ 42,438 $ (138) $ (235) $ 42,065 Obligations of state and political subdivisions 14 11,765 (57) (77) 11,631 Residential mortgage-backed securities 87 175,043 (1,247) (605) 173,191 Asset-backed securities 3 9,639 (115) (109) 9,415 Other Securities 6 14,987 (75) (71) 14,841 Total 124 $ 253,872 $ (1,632) $ (1,097) $ 251,143 At December 31, 2014 Held to Maturity: Obligations of state and political subdivisions 1 $ 1,718 $ (10) $ - $ 1,708 1 $ 1,718 $ (10) $ - $ 1,708 Available for Sale: Federal agency securities 13 $ 60,578 $ (37) $ (735) $ 59,806 Obligations of state and political subdivisions 8 10,076 - (140) 9,936 Residential mortgage-backed securities 40 65,223 (110) (740) 64,373 Asset-backed securities 3 9,608 (19) (41) 9,548 Other Securities 2 9,571 (3) (23) 9,545 Total 66 $ 155,056 $ (169) $ (1,679) $ 153,208 |
Loans And Allowance For Loan 35
Loans And Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans And Allowance For Loan Losses [Abstract] | |
Southwest's Loan Classifications | (Dollars in thousands) At December 31, 2015 At December 31, 2014 Real estate mortgage: Commercial $ 938,462 $ 752,971 One-to-four family residential 161,958 77,531 Real estate construction: Commercial 129,070 186,659 One-to-four family residential 21,337 10,464 Commercial 507,173 350,410 Installment and consumer: Guaranteed student loans - 37 Other 21,429 21,919 1,779,429 1,399,991 Less: Allowance for loan losses (26,106) (28,452) Total loans, net $ 1,753,323 $ 1,371,539 |
Recorded Investment In Loans On Nonaccrual Status | At December 31, (Dollars in thousands) 2015 2014 Real estate mortgage: Commercial $ 3,543 $ 2,195 One-to-four family residential 1,729 1,100 Real estate construction: Commercial 1,010 73 Commercial 13,491 5,907 Other consumer 85 1 Total nonaccrual loans $ 19,858 $ 9,276 |
Age Analysis Of Past Due Loans | 90 days and Recorded loans 30-89 days greater Total past Total > 90 days and (Dollars in thousands) past due past due due Current loans accruing At December 31, 2015 Real estate mortgage: Commercial $ 272 $ 3,992 $ 4,264 $ 934,198 $ 938,462 $ 449 One-to-four family residential 549 1,777 2,326 159,632 161,958 48 Real estate construction: Commercial - 1,010 1,010 128,060 129,070 - One-to-four family residential - - - 21,337 21,337 - Commercial 278 13,491 13,769 493,404 507,173 - Other 65 88 153 21,276 21,429 3 Total $ 1,164 $ 20,358 $ 21,522 $ 1,757,907 $ 1,779,429 $ 500 At December 31, 2014 Real estate mortgage: Commercial $ 4,053 $ 2,195 $ 6,248 $ 746,723 $ 752,971 $ - One-to-four family residential 122 1,100 1,222 76,309 77,531 - Real estate construction: Commercial 2,177 73 2,250 184,409 186,659 - One-to-four family residential - - - 10,464 10,464 - Commercial 1,159 6,044 7,203 343,207 350,410 137 Other 162 1 163 21,793 21,956 - Total $ 7,673 $ 9,413 $ 17,086 $ 1,382,905 $ 1,399,991 $ 137 |
Impaired Loans | With No Specific Allowance With A Specific Allowance Unpaid Unpaid Recorded Principal Recorded Principal Related (Dollars in thousands) Investment Balance Investment Balance Allowance At December 31, 2015 Commercial real estate $ 12,166 $ 15,747 $ 10,940 $ 10,940 $ 1,575 One-to-four family residential 1,688 2,195 185 186 11 Real estate construction 1,078 1,327 - - - Commercial 4,095 5,430 9,844 15,968 2,526 Other 85 94 - - - Total $ 19,112 $ 24,793 $ 20,969 $ 27,094 $ 4,112 At December 31, 2014 Commercial real estate $ 12,382 $ 14,752 $ 11,497 $ 11,556 $ 2,047 One-to-four family residential 1,115 1,833 - - - Real estate construction 73 104 - - - Commercial 2,624 2,887 4,315 10,673 1,822 Other 1 2 - - - Total $ 16,195 $ 19,578 $ 15,812 $ 22,229 $ 3,869 |
Average Recorded Investment And Interest Income Recognized On Impaired Loans | As of and for the year ended December 31, 2015 2014 2013 Average Average Average Recorded Interest Recorded Interest Recorded Interest (Dollars in thousands) Investment Income Investment Income Investment Income Commercial real estate $ 25,044 $ 970 $ 30,257 $ 968 $ 63,125 $ 2,112 One-to-four family residential 2,323 1 2,764 1 4,645 1 Real estate construction 997 - 222 - 2,801 - Commercial 8,527 215 7,718 68 12,899 87 Other 51 - 16 - 129 - Total $ 36,942 $ 1,186 $ 40,977 $ 1,037 $ 83,599 $ 2,200 |
Troubled Debt Restructured Loans Outstanding | At December 31, 2015 At December 31, 2014 (Dollars in thousands) Accruing Nonaccrual Accruing Nonaccrual Commercial real estate $ 19,563 $ 448 $ 21,685 $ 1,082 One-to-four family residential 13 48 14 62 Commercial 659 5,796 1,032 655 Total $ 20,235 $ 6,292 $ 22,731 $ 1,799 |
Loans Modified As Troubled Debt Restructurings | For the year ended December 31, 2015 2014 Number of Recorded Number of Recorded (Dollars in thousands) Modifications Investment Modifications Investment Commercial real estate - $ - 1 $ 5 Commercial 1 5,511 5 564 Total 1 $ 5,511 6 $ 569 |
Classification Of Risk Category Of Loans, By Classes | Commercial 1-4 Family Real Estate (Dollars in thousands) Real Estate Residential Construction Commercial Other Total At December 31, 2015 Grade: Pass $ 902,034 $ 157,912 $ 148,811 $ 480,928 $ 21,284 $ 1,710,969 Special Mention 5,916 29 586 2,941 50 9,522 Substandard 30,512 4,017 1,010 18,848 95 54,482 Doubtful - - - 4,456 - 4,456 Total $ 938,462 $ 161,958 $ 150,407 $ 507,173 $ 21,429 $ 1,779,429 At December 31, 2014 Grade: Pass $ 690,791 $ 76,322 $ 194,670 $ 331,594 $ 21,849 $ 1,315,226 Special Mention 34,287 22 420 7,144 106 41,979 Substandard 27,594 1,154 2,033 6,725 1 37,507 Doubtful 299 33 - 4,947 - 5,279 Total $ 752,971 $ 77,531 $ 197,123 $ 350,410 $ 21,956 $ 1,399,991 |
By Balance In The Allowance For Loan Losses And The Recorded Investment In Loans Portfolio Classification Disaggregated On The Basis Of Impairment Evaluation Method | Commercial 1-4 Family Real Estate (Dollars in thousands) Real Estate Residential Construction Commercial Other Total At December 31, 2015 Balance at beginning of period $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Loans charged-off (489) (20) (21) (628) (193) (1,351) Recoveries 282 558 47 1,479 205 2,571 Provision for loan losses (755) (550) (1,652) (500) (109) (3,566) Balance at end of period $ 12,716 $ 700 $ 2,533 $ 9,965 $ 192 $ 26,106 Allowance for loan losses ending balance: Individually evaluated for impairment $ 1,575 $ 11 $ - $ 2,526 $ - $ 4,112 Collectively evaluated for impairment 11,141 689 2,533 7,439 192 21,994 Acquired with deteriorated credit quality - - - - - - Total ending allowance balance $ 12,716 $ 700 $ 2,533 $ 9,965 $ 192 $ 26,106 Loans receivable ending balance: Individually evaluated for impairment $ 20,332 $ 695 $ 391 $ 13,396 $ 47 $ 34,861 Collectively evaluated for impairment 913,242 159,672 149,344 493,026 21,370 1,736,654 Acquired with deteriorated credit quality 4,888 1,591 672 751 12 7,914 Total ending loans balance $ 938,462 $ 161,958 $ 150,407 $ 507,173 $ 21,429 $ 1,779,429 Commercial 1-4 Family Real Estate Real Estate Residential Construction Commercial Other Total At December 31, 2014 Balance at beginning of period $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Loans charged-off (1,400) (289) (655) (4,014) (558) (6,916) Recoveries 3,733 213 - 1,119 264 5,329 Provision for loan losses (7,509) (62) (709) 1,524 132 (6,624) Balance at end of period $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Allowance for loan losses ending balances: Individually evaluated for impairment $ 2,047 $ - $ - $ 1,822 $ - $ 3,869 Collectively evaluated for impairment 11,631 712 4,159 7,792 289 24,583 Acquired with deteriorated credit quality - - - - - - Total ending allowance balance $ 13,678 $ 712 $ 4,159 $ 9,614 $ 289 $ 28,452 Loans receivable ending balance: Individually evaluated for impairment $ 23,907 $ 538 $ 104 $ 13,560 $ 2 $ 38,111 Collectively evaluated for impairment 725,635 75,598 196,905 336,818 21,953 1,356,909 Acquired with deteriorated credit quality 3,429 1,395 114 32 1 4,971 Total ending loans balance $ 752,971 $ 77,531 $ 197,123 $ 350,410 $ 21,956 $ 1,399,991 Commercial 1-4 Family Real Estate Real Estate Residential Construction Commercial Other Total At December 31, 2013 Balance at beginning of period $ 27,223 $ 861 $ 5,271 $ 12,604 $ 759 $ 46,718 Loans charged-off (806) (578) 246 (8,599) (267) (10,004) Recoveries 171 253 4,527 2,049 158 7,158 Provision for loan losses (7,734) 314 (4,521) 4,931 (199) (7,209) Balance at end of period $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Allowance for loan losses ending balances: Individually evaluated for impairment $ 4,012 $ - $ 18 $ 3,863 $ 46 $ 7,939 Collectively evaluated for impairment 14,839 797 5,505 7,122 405 28,668 Acquired with deteriorated credit quality 3 53 - - - 56 Total ending allowance balance $ 18,854 $ 850 $ 5,523 $ 10,985 $ 451 $ 36,663 Loans receivable ending balance: Individually evaluated for impairment $ 47,730 $ 456 $ 2,720 $ 10,297 $ 50 $ 61,253 Collectively evaluated for impairment 693,267 79,602 145,576 243,790 30,988 1,193,223 Acquired with deteriorated credit quality 11,282 3,930 198 971 46 16,427 Total ending loans balance $ 752,279 $ 83,988 $ 148,494 $ 255,058 $ 31,084 $ 1,270,903 |
Premises And Equipment (Tables)
Premises And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | At December 31, (Dollars in thousands) 2015 2014 Land $ 6,630 $ 5,496 Buildings and improvements 25,219 20,967 Furniture, fixtures, and equipment 30,813 29,091 Construction/remodeling in progress 965 574 63,627 56,128 Accumulated depreciation and amortization (39,808) (37,540) Total premises and equipment, net $ 23,819 $ 18,588 |
Future Minimum Annual Rental Payments | (Dollars in thousands) 2016 $ 2,781 2017 1,491 2018 1,230 2019 1,073 2020 977 Thereafter 2,450 Total $ 10,002 |
Goodwill And Other Intangible37
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Other Intangible Assets [Abstract] | |
Gross Carrying Amount Of Other Intangible Assets And Accumulated Amortization | At December 31, (Dollars in thousands) 2015 2014 Core deposit premiums $ 6,119 $ 3,418 Less accumulated amortization (3,225) (2,889) Core deposit premiums, net 2,894 529 Loan servicing rights 13,635 12,564 Less accumulated amortization (9,914) (9,166) Loan servicing rights, net 3,721 3,398 Other intangible assets, net $ 6,615 $ 3,927 |
Future Amortization Expense For Other Intangibles Assets | (Dollars in thousands) Core Deposit Premiums Loan Servicing Rights Total 2016 $ 593 $ 727 $ 1,320 2017 451 627 1,078 2018 391 518 909 2019 386 425 811 2020 386 343 729 Thereafter 687 1,081 1,768 $ 2,894 $ 3,721 $ 6,615 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Summary Of Financial Assets Measured At Fair Value On A Recurring Basis | Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) At December 31, 2015 Available for sale securities: Federal agency securities 78,211 - 78,211 - Obligations of state and political subdivisions 47,564 - 47,564 - Residential mortgage-backed securities 239,888 - 239,888 - Asset-backed securities 9,415 - 9,415 - Corporate debt 25,253 137 25,116 - Derivative asset 1,793 1,793 Derivative liability (3,163) - (3,163) - Total $ 398,961 $ 137 $ 398,824 $ - At December 31, 2014 Available for sale securities: Federal agency securities 99,546 - 99,546 - Obligations of state and political subdivisions 33,139 - 33,139 - Residential mortgage-backed securities 178,227 - 178,227 - Asset-backed securities 9,548 - 9,548 - Corporate debt 32,771 142 32,629 - Derivative asset 787 - 787 - Derivative liability (2,373) - (2,373) - Total $ 351,645 $ 142 $ 351,503 $ - |
Asset Measured At Fair Value On A Nonrecurring Basis | Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) At December 31, 2015 Impaired loans at fair value : Commercial real estate $ 11,182 $ - $ $ 11,182 One-to-four family residential 185 - - 185 Real estate construction 390 - - 390 Commercial 9,845 - 9,845 Loans held for sale: One-to-four family residential 7,453 - 7,453 - Other real estate 2,274 - - 2,274 Mortgage loan servicing rights 3,721 - 3,721 - Total $ 35,050 $ - $ 11,174 $ 23,876 At December 31, 2014 Impaired loans at fair value : Commercial real estate $ 11,762 $ - $ $ 11,762 Commercial 5,722 - 5,722 Loans held for sale: One-to-four family residential 763 - 763 - Government guaranteed commercial real estate 705 - 705 - Other loans held for sale 17 - 17 - Other real estate 3,097 - - 3,097 Total $ 22,066 $ - $ 1,485 $ 20,581 |
Carrying Values And Estimated Fair Values Of Financial Instruments Segregated By The Level Of The Valuation Inputs | At December 31, 2015 At December 31, 2014 Carrying Fair Carrying Fair (Dollars in thousands) Values Values Values Values Financial assets: Level 2 inputs: Cash and cash equivalents $ 78,129 $ 78,129 $ 140,936 $ 140,936 Securities held to maturity 11,797 12,282 12,362 12,880 Accrued interest receivable 5,767 5,767 4,723 4,723 Investments included in other assets 10,383 10,383 7,949 7,949 Level 3 inputs: Total loans, net of allowance 1,753,323 1,728,114 1,371,539 1,303,047 Financial liabilities: Level 2 inputs: Deposits 1,884,105 1,780,954 1,533,999 1,450,540 Accrued interest payable 867 867 769 769 Other liabilities 10,314 10,314 8,334 8,334 Other borrowings 110,927 112,149 79,380 81,544 Subordinated debentures 51,548 51,548 46,393 46,393 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule Of Deposits | (Dollars in thousands) 2015 2014 Noninterest-bearing demand $ 596,494 $ 496,128 Interest-bearing demand 151,015 122,342 Money market accounts 534,357 461,679 Savings accounts 56,333 32,795 Time deposits of $100,000 or more 311,538 198,952 Other time deposits 234,368 222,103 Total deposits $ 1,884,105 $ 1,533,999 |
Scheduled Time Deposits | (Dollars in thousands) 2016 $392,831 2017 106,258 2018 29,887 2019 10,922 2020 5,559 Thereafter 449 Total time deposits $545,906 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowed Funds [Abstract] | |
Schedule Of Borrowed Funds | 2015 2014 (Dollars in thousands) Balance at December 31 Average Balance Weighted Average Rate Balance at December 31 Average Balance Weighted Average Rate Securities sold under repurchase agreements $ 37,273 $ 44,218 0.07 % $ 54,380 $ 57,965 0.05 % Federal Home Loan Bank advances 73,654 28,289 3.11 25,000 25,000 3.47 $ 110,927 $ 79,380 |
Trust Preferred Securities an41
Trust Preferred Securities and Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Debentures [Abstract] | |
Schedule of Trust Preferred Securities | At December 31, 2015 (Dollars in thousands) Subordinated Debentures Owed to Trusts Trust Preferred Securities of the Trusts Rates Final Maturity Date OKSB Statutory Trust I $ 20,619 $ 20,000 3.70% June 26, 2033 SBI Capital Trust II 25,774 25,000 3.17% October 7, 2033 FCBI Statutory Trust I 5,155 5,000 3.33% September 4, 2033 $ 51,548 $ 50,000 At December 31, 2014 (Dollars in thousands) Subordinated Debentures Owed to Trusts Trust Preferred Securities of the Trusts Rates Final Maturity Date OKSB Statutory Trust I $ 20,619 $ 20,000 3.35% June 26, 2033 SBI Capital Trust II 25,774 25,000 3.08% October 7, 2033 $ 46,393 $ 45,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Non-Hedge Derivative Assets and Liabilities | As of December 31,2015 As of December 31,2014 (Dollars in thousands) Notional Fair Value Notional Fair Value Non-hedge derivative assets $ 101,629 $ 1,793 $ 34,322 $ 787 Non-hedge derivative liabilities 101,629 1,793 34,322 787 |
Taxes On Income (Tables)
Taxes On Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Taxes On Income [Abstract] | |
Components of taxes on income | For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Current tax (benefit) expense: Federal $ 7,534 $ 3,251 $ 462 State 143 186 74 Deferred tax expense (benefit): Federal 1,126 7,970 9,362 State 990 1,210 858 Taxes on income $ 9,793 $ 12,617 $ 10,756 |
Reconciliation from the expected tax exense (benefit) to consolidated effective income tax expense (benefit) | For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Computed tax (benefit) expense at statutory rates $ 9,520 $ 11,777 $ 9,867 Increase (decrease) in income taxes resulting from: Benefit of income not subject to U.S. Federal income tax (621) (209) (213) Expenses not deductible for U.S. Federal income tax 220 129 96 State income taxes, net of Federal income tax benefit 736 907 749 Tax credit recapture - - 76 Other (62) 13 181 Taxes on income $ 9,793 $ 12,617 $ 10,756 |
Temporary differences that give rise to the deferred tax assets | At December 31, (Dollars in thousands) 2015 2014 Deferred tax assets: Provision for loan losses $ 10,291 $ 11,753 Net operating loss carryforward 858 1,310 Write-downs on other real estate 57 187 Nonaccrual loan interest 603 500 Deferred compensation & profit sharing accrual 711 204 Investments 311 303 Section 597 gain - FDIC-assisted acquisition 472 667 Accrued expenses 1,013 1,275 Loan purchase accounting adjustment 2,725 - Stock-based compensation 629 258 Other (2) 53 Total deferred tax assets 17,668 16,252 Deferred tax liabilities: Accumulated depreciation (2,877) (2,133) Amortizable assets (1,089) (116) Dividend - Equity vs. Cost Method (393) (206) Prepaid expenses (109) (123) FHLB stock dividends (132) (73) Total deferred tax liabilities (4,600) (2,393) Deferred taxes payable on investment securities available for sale 885 235 Net deferred tax asset $ 13,953 $ 14,094 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Common Share | (Dollars in thousands, except earnings per share data) 2015 2014 2013 Numerator: Net income $ 17,407 $ 21,030 $ 17,435 Preferred dividend - - - Net income 17,407 21,030 17,435 Earnings allocated to participating securities (258) (253) (139) Numerator for earnings per common share $ 17,149 $ 20,777 $ 17,296 Denominator: Denominator for basic earnings per common share 18,975,450 19,417,486 19,516,776 Dilutive effect of stock compensation 154,083 142,877 87,469 Denominator for diluted earnings per common share 19,129,533 19,560,363 19,604,245 Earnings per common share: Basic $ 0.90 $ 1.07 $ 0.89 Diluted $ 0.90 $ 1.06 $ 0.88 |
Capital Requirements And Regu45
Capital Requirements And Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Capital Requirements And Regulatory Matters [Abstract] | |
Southwest’s and Bank SNB’s Actual Capital Amounts And Ratios | A summary of actual capital amounts and ratios as of December 31, 2015 are presented below. To Be Well Capitalized Under Prompt Corrective For Capital Actual Action Provisions Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Total CET1 Capital (to risk-weighted assets) Southwest $ 282,737 13.21 % $ 139,122 6.50 % $ 96,316 4.50 % Bank SNB 291,125 13.65 138,637 6.50 95,980 4.50 Total Capital (to risk-weighted assets) Southwest 359,300 16.79 214,034 10.00 171,228 8.00 Bank SNB 317,865 14.90 213,288 10.00 170,631 8.00 Tier 1 Capital (to risk-weighted assets) Southwest 332,468 15.53 171,228 8.00 128,421 6.00 Bank SNB 291,125 13.65 170,631 8.00 127,973 6.00 Tier 1 Leverage (to average assets) Southwest 332,468 14.41 115,371 5.00 92,297 4.00 Bank SNB 291,125 12.66 114,939 5.00 91,951 4.00 A summary of actual capital amounts and ratios as of December 31, 2014 are presented below. To Be Well Capitalized Under Prompt Corrective For Capital Actual Action Provisions Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2014: Total Capital (to risk-weighted assets) Southwest $ 334,348 20.96 % $ 159,504 10.00 % $ 127,603 8.00 % Bank SNB 298,224 18.81 158,518 10.00 126,814 8.00 Tier 1 Capital (to risk-weighted assets) Southwest 314,216 19.70 95,702 6.00 63,801 4.00 Bank SNB 278,214 17.55 95,111 6.00 63,407 4.00 Tier 1 Leverage (to average assets) Southwest 314,216 16.45 95,534 5.00 76,428 4.00 Bank SNB 278,214 14.64 95,030 5.00 76,024 4.00 |
Off-Balance-Sheet Arrangments,
Off-Balance-Sheet Arrangments, Commitments, Guarantees And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Summary Of Off-Balance-Sheet Financial Instruments | At December 31, (Dollars in thousands) 2015 2014 Commitments to extend commercial and real estate mortgage credit $ 446,412 $ 324,927 Standby and commercial letters of credit 6,595 7,287 Total $ 453,007 $ 332,214 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segments [Abstract] | |
Financial Results By Operating Segment | For the year ended December 31, 2015 Oklahoma Texas Kansas Other Total (Dollars in thousands) Banking Banking Banking Operations* Company Net interest income $ 42,019 $ 21,168 $ 6,277 $ (2,047) $ 67,417 Provision (credit) for loan losses (2,068) (632) (868) 2 (3,566) Noninterest income 10,134 1,485 1,473 1,365 14,457 Noninterest expenses 33,136 14,324 6,152 4,628 58,240 Income (loss) before taxes 21,085 8,961 2,466 (5,312) 27,200 Taxes on income 7,591 3,227 888 (1,913) 9,793 Net income (loss) $ 13,494 $ 5,734 $ 1,578 $ (3,399) $ 17,407 * Includes externally generated revenue of $2.1 million, primarily from investing services, and an internally generated loss of $2.8 million from the funds management unit Total loans at period end $ 1,048,473 $ 580,476 $ 150,480 $ - $ 1,779,429 Total assets at period end 1,098,735 578,749 149,847 529,691 2,357,022 Total goodwill at period end 12,447 1,020 - - 13,467 Total deposits at period end 1,374,227 209,146 119,313 181,419 1,884,105 For the year ended December 31, 2014 Oklahoma Texas Kansas Other Total (Dollars in thousands) Banking Banking Banking Operations* Company Net interest income $ 38,846 $ 19,187 $ 9,469 $ (2,498) $ 65,004 Provision (credit) for loan losses (2,561) (3,640) (425) 2 (6,624) Noninterest income 9,030 1,594 1,576 6,731 18,931 Noninterest expenses 31,363 13,387 8,616 3,546 56,912 Income before taxes 19,074 11,034 2,854 685 33,647 Taxes on income 7,152 4,138 1,070 257 12,617 Net income $ 11,922 $ 6,896 $ 1,784 $ 428 $ 21,030 * Includes externally generated revenue of $7.6 million, primarily from investing services, and an internally generated loss of $3.3 million from the funds management unit Total loans at period end $ 793,262 $ 460,680 $ 146,043 $ 6 $ 1,399,991 Total assets at period end 805,704 458,489 147,256 530,585 1,942,034 Total goodwill at period end 194 1,020 - - 1,214 Total deposits at period end 1,113,477 224,634 110,901 84,987 1,533,999 |
Parent Company Condensed Fina48
Parent Company Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Condensed Financial Information [Abstract] | |
Parent Company Statements of Financial Condition | At December 31, (Dollars in thousands) 2015 2014 Statements of Financial Condition Assets: Cash and cash equivalents $ 30,469 $ 21,526 Investment in subsidiary banks 305,064 280,754 Investments in other subsidiaries 8,444 8,294 Investment securities, available for sale - 759 Other assets 6,393 8,061 Total $ 350,370 $ 319,394 Liabilities: Subordinated debentures 51,548 46,393 Other liabilities 2,724 2,215 Shareholders' Equity: Common stock and related accounts 296,098 270,786 Total $ 350,370 $ 319,394 |
Parent Company Statements of Operations | For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Statements of Operations Income: Cash dividends from subsidiaries $ 20,046 $ 18,045 $ 19,625 Noninterest income 45 34 333 Investment income 20 1,337 243 Other operating income 25 3 - Security gains 163 - - Total income 20,299 19,419 20,201 Expense: Interest on subordinated debentures 1,566 1,505 4,168 Noninterest expense 1,756 1,317 1,808 Total expense 3,322 2,822 5,976 Total income before taxes and equity in undistributed income of subsidiaries 16,977 16,597 14,225 Taxes on income (1,167) (582) (2,027) Income before equity in undistributed income of subsidiaries 18,144 17,179 16,252 Equity in undistributed income (loss) of subsidiaries (737) 3,851 1,183 Net income $ 17,407 $ 21,030 $ 17,435 |
Parent Company Statements of Cash Flows | For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Statements of Cash Flows Operating activities: Net income $ 17,407 $ 21,030 $ 17,435 Equity in undistributed (income) loss of subsidiaries 737 (3,851) (1,183) Other, net 2,295 2,937 (2,341) Net cash provided by operating activities 20,439 20,116 13,911 Investing activities: Available for sale securities: Purchases - (1,121) - Sales / Maturities 750 2,540 32 Investment in/capital contribution to other subsidiaries - - 15,000 Outlays for business acquisitions (4,697) - - Other, net (155) - - Net cash provided by (used in) investing activities (4,102) 1,419 15,032 Financing activities: Net proceeds from issuance of common stock 682 1,386 2,708 Redemption of subordinated debentures - - (35,570) Purchases of treasury stock (8,624) (10,302) - Common stock dividend (4,607) (3,132) - Other, net 5,155 - (2,287) Net cash used in financing activities (7,394) (12,048) (35,149) Net increase (decrease) in cash and cash equivalents 8,943 9,487 (6,206) Cash and cash equivalents, Beginning of year 21,526 12,039 18,245 End of year $ 30,469 $ 21,526 $ 12,039 |
Summary Of Significant Accoun49
Summary Of Significant Accounting And Reporting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest-bearing balances held at depository institutions | $ 53,200 | $ 121,200 | |
Interest paid | 7,000 | 6,900 | $ 11,500 |
Income taxes paid | 7,100 | 4,000 | 400 |
Other real estate | 2,274 | 3,097 | |
Transfer to Other Real Estate | 300 | 2,200 | $ 2,600 |
Restricted cash and cash equivalents | $ 7,000 | 2,000 | |
Threshold Period Past Due for Write-off of Financing Receivable | 90 days | ||
Net unamortized deferred loan fees | $ 1,500 | 1,000 | |
Percentage of losses covered by the FDIC | 80.00% | ||
Loss Share Of Covered Loans Receivables | $ 0 | ||
Cumulative net losses | 35,000 | ||
Reserve for unfunded loan commitments | $ 2,400 | ||
Antidilutive options to purchase common shares | 38,145 | ||
Fair value of loan servicing rights | $ 3,700 | $ 3,500 | |
Loss share receivable % of loan discount | 85.00% | ||
Minimum [Member] | |||
Percentage change in fair value to be considered highly effective | 80.00% | ||
Stock option expiration period after grant | 5 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Premises and equipmet, useful life | 10 years | ||
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Premises and equipmet, useful life | 3 years | ||
Maximum [Member] | |||
Percentage of losses covered by the FDIC | 95.00% | ||
Cumulative net losses | $ 35,000 | ||
Percentage change in fair value to be considered highly effective | 125.00% | ||
Stock option expiration period after grant | 10 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Premises and equipmet, useful life | 40 years | ||
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Premises and equipmet, useful life | 10 years | ||
2008 Stock Based Award Plan [Member] | |||
Stock Plan Term | 10 years | ||
Common stock reserved for issuance | 800,000 | ||
Stock Options [Member] | |||
Antidilutive options to purchase common shares | 0 | 0 | 0 |
Warrant [Member] | |||
Antidilutive warrant to purchase shares of common stock | 703,753 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Oct. 09, 2015USD ($)itemshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 13,467 | $ 1,214 | $ 1,214 | |
Effective tax rate | 36.00% | 37.50% | 38.20% | |
Oklahoma City [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of total branches | item | 10 | |||
Bancshares [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 41,781 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 1,213,985 | |||
Business Acquisition, Percentage of Cash | 49.00% | |||
Payments to Acquire Businesses, Gross | $ 20,400 | |||
Business Combination, Fair Value Of Assets Acquired | 301,499 | |||
Loans from merger | 202,433 | |||
Goodwill | 12,254 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | 245,230 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,701 | |||
Loans purchased evaluated in conjunction with the acquisition | $ 200,000 | |||
Loans purchased evaluated in conjunction with the acquisition, discount | 4,500 | |||
Loans, purchase credit impaired | 7,800 | |||
Loans and debt securities acquired with deteriorated credit quality, discount | $ 3,300 | |||
Effective tax rate | 36.00% | |||
Bancshares [Member] | Oklahoma City [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of branches acquired | item | 5 | |||
Bancshares [Member] | Denver [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of branches acquired | item | 3 | |||
Bancshares [Member] | Colorado Springs [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of branches acquired | item | 1 |
Acquisitions (Reconciliation Of
Acquisitions (Reconciliation Of Cash Received From The Acquisition) (Details) - Bancshares [Member] $ in Thousands | Oct. 09, 2015USD ($) |
Business Acquisition [Line Items] | |
Fair value of assets acquired | $ 301,499 |
Liabilities assumed | (259,718) |
Net assets acquired | 41,781 |
Stock issued as consideration | (21,366) |
Cash acquired | (32,699) |
Cash received in business combination, net of cash paid | $ (12,284) |
Acquisitions (Schedule Of Asset
Acquisitions (Schedule Of Assets Acquired And Liabilities Assumed ) (Details) - USD ($) $ in Thousands | Oct. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 13,467 | $ 1,214 | $ 1,214 | |
Bancshares [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and due from banks | $ 5,874 | |||
Interest-bearing deposits with other banks | 17,196 | |||
Federal funds sold | 9,629 | |||
Cash and cash equivalents | 32,699 | |||
Investment securities | 34,578 | |||
Loans | 202,433 | |||
Total loans receivable | 202,433 | |||
Bank premises and equipment, net | 5,582 | |||
Cash value of life insurance | 7,153 | |||
Accrued interest receivable | 790 | |||
Deferred tax asset | 1,665 | |||
Core deposit intangible | 2,701 | |||
Other assets | 1,644 | |||
Total assets acquired | 289,245 | |||
Demand and non-interest bearing | 101,464 | |||
Savings and interest-bearing transaction accounts | 59,356 | |||
Time deposits | 84,410 | |||
Total Deposits | 245,230 | |||
Other borrowings | 7,180 | |||
Accrued interest payable and other liabilities | 2,153 | |||
Subordinated debentures | 5,155 | |||
Total liabilities assumed | 259,718 | |||
Total liabilities and equity assumed | 259,718 | |||
Net assets acquired | 29,527 | |||
Purchase price | 41,781 | |||
Goodwill | 12,254 | |||
Bancshares [Member] | Acquired From Bancshares [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and due from banks | 5,874 | |||
Interest-bearing deposits with other banks | 17,196 | |||
Federal funds sold | 9,629 | |||
Cash and cash equivalents | 32,699 | |||
Investment securities | 34,762 | |||
Loans | 210,223 | |||
Allowance for loan losses | 4,298 | |||
Total loans receivable | 205,925 | |||
Bank premises and equipment, net | 4,241 | |||
Cash value of life insurance | 7,153 | |||
Accrued interest receivable | 790 | |||
Deferred tax asset | 1,650 | |||
Core deposit intangible | 55 | |||
Other assets | 1,644 | |||
Total assets acquired | 288,919 | |||
Demand and non-interest bearing | 101,464 | |||
Savings and interest-bearing transaction accounts | 59,356 | |||
Time deposits | 84,410 | |||
Total Deposits | 245,230 | |||
Other borrowings | 7,180 | |||
Accrued interest payable and other liabilities | 1,833 | |||
Subordinated debentures | 5,155 | |||
Total liabilities assumed | 259,398 | |||
Equity | 31,158 | |||
Total equity assumed | 31,158 | |||
Total liabilities and equity assumed | 290,556 | |||
Bancshares [Member] | Fair Value Adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Investment securities | (184) | |||
Loans | (7,790) | |||
Allowance for loan losses | (4,298) | |||
Total loans receivable | (3,492) | |||
Bank premises and equipment, net | 1,341 | |||
Deferred tax asset | 15 | |||
Core deposit intangible | 2,646 | |||
Total assets acquired | 326 | |||
Accrued interest payable and other liabilities | 320 | |||
Total liabilities assumed | 320 | |||
Equity | (31,158) | |||
Total equity assumed | (31,158) | |||
Total liabilities and equity assumed | $ (30,838) |
Acquisitions (Pro Forma Condens
Acquisitions (Pro Forma Condensed Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Business Acquisition [Line Items] | ||||||
Net income | $ 17,407 | $ 21,030 | $ 17,435 | |||
Parent Company [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Net income | 17,407 | 21,030 | $ 17,435 | |||
Bancshares [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Interest Income | 84,399 | [1] | 84,710 | |||
Interest expense | 8,049 | [1] | 8,236 | |||
Net interest income | 76,350 | [1] | 76,474 | |||
Provision for loan losses | (3,080) | [1] | (6,398) | |||
Non-interest income | 16,292 | [1] | 21,439 | |||
Non-interest expense | [2] | 68,860 | [1] | 67,779 | ||
Income before taxes | 26,862 | [1] | 36,532 | |||
Income taxes | 9,601 | [1] | 13,646 | |||
Net income | 17,261 | [1] | 22,886 | |||
Earnings allocated to participating securities | (258) | [1] | (253) | |||
Numerator for earnings per common share | $ 17,003 | [1] | $ 22,633 | |||
Earnings per share: Basic | $ 0.90 | [1] | $ 1.10 | |||
Earnings per share: Diluted | $ 0.89 | [1] | $ 1.09 | |||
Basic weighted average shares outstanding | 18,975,450 | [1] | 20,631,471 | |||
Diluted weighted average shares outstanding | 19,129,533 | [1] | 20,774,348 | |||
Revenues | $ 2,900 | |||||
Costs and Expenses | 1,200 | |||||
Net income | 1,100 | |||||
Other Nonrecurring Expense | 1,900 | |||||
Nonrecurring Personnel Related Expense | 500 | |||||
Nonrecurring Data Processing Expenses | 400 | |||||
Nonrecurring Legal, Accounting And Investment Banker Expenses | 500 | |||||
Nonrecurring Marketing And Other Expenses | $ 500 | |||||
Pro Forma Non-Recurring Expense | $ 2,500 | |||||
Pro Forma Non-Recurring Expense, Employee Related Expense | 700 | |||||
Pro Forma Non-Recurring Expense, Legal Expenses | 400 | |||||
Pro Forma Non-Recurring Expense, Discount Loan Provision | $ 1,400 | |||||
[1] | Subsequent to the Merger date, activity related to Bancshares contributed pre-tax revenues of $2.9 million and incurred pre-tax expenses of $1.2 million, resulting in $1.1 million total contribution to our net income. We incurred pre-tax non-recurring expenses totaling $1.9 million, including: $0.5 million in personnel related expenses, $0.4 million in data processing expenses, $0.5 million in legal, accounting and investment banker expenses, and $0.5 million in marketing and other expenses. | |||||
[2] | The 2015 pro forma non-interest expense is adjusted to exclude $2.5 million of pre-tax non-recurring expenses incurred by Bancshares prior to the Merger date attributed to the following: $0.7 million in employee related expenses, $0.4 million in legal expenses, and $1.4 million to discount a loan pursuant to a provision of the Merger Agreement. |
Acquisitions (Changes In Carryn
Acquisitions (Changes In Carryng Amounts And Accretable Yields) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquisitions [Abstract] | ||
Balance at beginning of period, Accretable Yield | $ 540 | $ 1,597 |
Acquisition, Accretable Yield | (11) | |
Payments received, Accretable Yield | 1 | (18,681) |
Transfers to other real estate/ repossessed assets, Accretable Yield | 541 | |
Net charge-offs, Accretable Yield | (10) | |
Net reclassifications to / from nonaccretable amount, Accretable Yield | 240 | |
Accretion, Accretable yield | (504) | (1,047) |
Balance at end of period, Accretable Yield | 807 | 540 |
Balance at beginning of period, Carrying amount of loans | 4,971 | 16,427 |
Acquisition, Carrying amount of loans | 4,396 | |
Payments Received, Carrying amount of loans | (1,814) | (11,049) |
Net charged-offs, Carrying amount of loans | (81) | (407) |
Accretion, Carrying amount of loans | 442 | |
Balance at end of period, Carrying amount of loans | $ 7,914 | $ 4,971 |
Disposals (Narrative) (Details)
Disposals (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2014USD ($) | |
Disposals [Abstract] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 4.4 |
Loans in disposal | 27.9 |
Deposits in disposal | $ 130.6 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investment Securities [Abstract] | ||
Total investments carried at cost | $ 10.4 | $ 7.4 |
Available for sale debt securities amortized cost pledged as collateral | $ 174 | $ 218.5 |
Investment Securities (Summary
Investment Securities (Summary Of Amortized Cost And Fair Values Of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Held to Maturity | $ 11,797 | $ 12,362 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 488 | 528 |
Gross Unrealized Losses, Held to Maturity | (3) | (10) |
Fair Value, Held to Maturity | 12,282 | 12,880 |
Amortized Cost, Available for Sale | 401,136 | 352,275 |
Gross Unrealized Gains, Available for Sale | 1,924 | 2,804 |
Gross Unrealized Losses, Available for Sale | (2,729) | (1,848) |
Available-for-sale Securities | 400,331 | 353,231 |
Federal Agency Securities [Member] | ||
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Available for Sale | 78,363 | 99,959 |
Gross Unrealized Gains, Available for Sale | 220 | 359 |
Gross Unrealized Losses, Available for Sale | (373) | (772) |
Available-for-sale Securities | 78,210 | 99,546 |
Obligations Of State And Political Subdivisions [Member] | ||
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Held to Maturity | 11,797 | 12,362 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 488 | 528 |
Gross Unrealized Losses, Held to Maturity | (3) | (10) |
Fair Value, Held to Maturity | 12,282 | 12,880 |
Amortized Cost, Available for Sale | 47,079 | 32,760 |
Gross Unrealized Gains, Available for Sale | 620 | 519 |
Gross Unrealized Losses, Available for Sale | (134) | (140) |
Available-for-sale Securities | 47,565 | 33,139 |
Residential Mortgage-Backed Securities [Member] | ||
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Available for Sale | 240,804 | 177,391 |
Gross Unrealized Gains, Available for Sale | 936 | 1,686 |
Gross Unrealized Losses, Available for Sale | (1,852) | (850) |
Available-for-sale Securities | 239,888 | 178,227 |
Asset-Backed Securities [Member] | ||
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Available for Sale | 9,639 | 9,608 |
Gross Unrealized Losses, Available for Sale | (224) | (60) |
Available-for-sale Securities | 9,415 | 9,548 |
Corporate debt [Member] | ||
Held To Maturity Securities And Available For Sale Securities [Line Items] | ||
Amortized Cost, Available for Sale | 25,251 | 32,557 |
Gross Unrealized Gains, Available for Sale | 148 | 240 |
Gross Unrealized Losses, Available for Sale | (146) | (26) |
Available-for-sale Securities | $ 25,253 | $ 32,771 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Approximate Fair Value Of Investment Securities By Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized cost and approximate fair value [Abstract] | ||
One year or less, Amortized cost, Available for Sale | $ 17,439 | |
One year or less, Fair Value, Available for Sale | 17,290 | |
One year or less, Amortized Cost, Held to Maturity | 1,677 | |
One year or less, Fair Value, Held to Maturity | 1,675 | |
More than one year through five years, Amortized Cost, Available for Sale | 270,730 | |
More than one year through five years, Fair Value, Available for Sale | 270,250 | |
More than one year through five years, Amortized Cost, Held to Maturity | 5,623 | |
More than one year through five years, Fair Value, Held to Maturity | 5,784 | |
More than five years through ten years, Amortized Cost, Available for Sale | 103,016 | |
More than five years through ten years, Fair Value, Available for Sale | 102,612 | |
More than five years through ten years, Amortized Cost, Held to Maturity | 4,497 | |
More than five years through ten years, Fair Value, Held to Maturity | 4,823 | |
More than ten years, Amortized Cost, Available for Sale | 9,951 | |
More than ten years, Fair Value, Available for Sale | 10,179 | |
Total, Amortized Cost, Available for Sale | 401,136 | |
Total, Fair Value, Available for Sale | 400,331 | |
Held-to-maturity Securities, Total | 11,797 | $ 12,362 |
Fair Value, Held to Maturity | $ 12,282 | $ 12,880 |
Investment Securities (Summar59
Investment Securities (Summary Of Sales Of Available For Sale Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities [Abstract] | |||
Proceeds from sales | $ 162 | $ 2,545 | $ 2,744 |
Gross realized gains | $ 162 | $ 1,120 |
Investment Securities (Summar60
Investment Securities (Summary Of Securities With Gross Unrealized Losses And Their Fair Values) (Details) $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 124 | 66 |
Number of Securities, Held to Maturity | security | 1 | 1 |
Amortized cost of securities with unrealized losses, Available for Sale | $ 253,872 | $ 155,056 |
Amortized cost of securities with unrealized losses, Held to Maturity | 1,677 | 1,718 |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (1,632) | (169) |
Continuous Unrealized Loss Existing for Less Than 12 Months, Held to Maturity | (10) | |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (1,097) | (1,679) |
Continuous Unrealized Loss Existing for More Than 12 Months, Held to Maturity | (3) | |
Fair value of securities with unrealized losses, Available for Sale | 251,143 | 153,208 |
Fair value of securities with unrealized losses, Held to Maturity | $ 1,674 | $ 1,708 |
Federal Agency Securities [Member] | ||
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 14 | 13 |
Amortized cost of securities with unrealized losses, Available for Sale | $ 42,438 | $ 60,578 |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (138) | (37) |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (235) | (735) |
Fair value of securities with unrealized losses, Available for Sale | $ 42,065 | $ 59,806 |
Obligations Of State And Political Subdivisions [Member] | ||
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 14 | 8 |
Number of Securities, Held to Maturity | security | 1 | |
Amortized cost of securities with unrealized losses, Available for Sale | $ 11,765 | $ 10,076 |
Amortized cost of securities with unrealized losses, Held to Maturity | 1,677 | |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (57) | |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (77) | (140) |
Continuous Unrealized Loss Existing for More Than 12 Months, Held to Maturity | (3) | |
Fair value of securities with unrealized losses, Available for Sale | 11,631 | $ 9,936 |
Fair value of securities with unrealized losses, Held to Maturity | $ 1,674 | |
Residential Mortgage-Backed Securities [Member] | ||
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 87 | 40 |
Amortized cost of securities with unrealized losses, Available for Sale | $ 175,043 | $ 65,223 |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (1,247) | (110) |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (605) | (740) |
Fair value of securities with unrealized losses, Available for Sale | $ 173,191 | $ 64,373 |
Asset-Backed Securities [Member] | ||
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 3 | 3 |
Amortized cost of securities with unrealized losses, Available for Sale | $ 9,639 | $ 9,608 |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (115) | (19) |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (109) | (41) |
Fair value of securities with unrealized losses, Available for Sale | $ 9,415 | $ 9,548 |
Corporate debt [Member] | ||
Available-for-sale Securities and Held-to-maturity Securities | ||
Number of Securities, Available for Sale | security | 6 | 2 |
Amortized cost of securities with unrealized losses, Available for Sale | $ 14,987 | $ 9,571 |
Continuous Unrealized Loss Existing for Less Than 12 Months, Available for Sale | (75) | (3) |
Continuous Unrealized Loss Existing for More Than 12 Months, Available for Sale | (71) | (23) |
Fair value of securities with unrealized losses, Available for Sale | $ 14,841 | $ 9,545 |
Loans And Allowance For Loan 61
Loans And Allowance For Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to individuals and businesses | $ 425,700 | ||
Percentage of loans to individuals and businesses | 24.00% | ||
Period to sell loans from the date of closing | 1 month | ||
Accrued additional interest income | $ 800 | $ 700 | $ 1,200 |
Cumulative charge-offs against noncovered nonaccrual loans | 6,100 | 6,000 | |
Interest income recognized on troubled debt restructurings | $ 1,200 | 1,000 | $ 2,200 |
Troubled debt restructuring default period | 90 days | ||
Troubled debt restructuring Period | 12 months | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | ||
Real Estate Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal of mortgage loans serviced for others | $ 432,300 | $ 410,300 |
Loans And Allowance For Loan 62
Loans And Allowance For Loan Losses (Southwest's Loan Classifications) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 1,779,429 | $ 1,399,991 |
Less: Allowance for loan losses | (26,106) | (28,452) |
Total loans, net | 1,753,323 | 1,371,539 |
Less: Loans held for sale (included above) | (7,453) | (1,485) |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 507,173 | 350,410 |
Commercial Real Estate [Member] | Real Estate Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 938,462 | 752,971 |
Commercial Real Estate [Member] | Real Estate Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 129,070 | 186,659 |
One-To-Four Family Residential [Member] | Real Estate Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 161,958 | 77,531 |
One-To-Four Family Residential [Member] | Real Estate Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 21,337 | 10,464 |
Guaranteed Student Loans [Member] | Installment And Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 37 | |
Other [Member] | Installment And Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 21,429 | $ 21,919 |
Loans And Allowance For Loan 63
Loans And Allowance For Loan Losses (Recorded Investment In Loans On Nonaccrual Status) (Details) - Noncovered [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | $ 19,858 | $ 9,276 |
Real Estate Mortgage [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 3,543 | 2,195 |
Real Estate Mortgage [Member] | One-To-Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 1,729 | 1,100 |
Real Estate Construction [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 1,010 | 73 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 13,491 | 5,907 |
Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | $ 85 | $ 1 |
Loans And Allowance For Loan 64
Loans And Allowance For Loan Losses (Age Analysis Of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans receivable | $ 1,779,429 | $ 1,399,991 | $ 1,270,903 |
Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 21,522 | 17,086 | |
Current | 1,757,907 | 1,382,905 | |
Loans receivable | 1,779,429 | 1,399,991 | |
Recorded loans > 90 days and accruing | 500 | 137 | |
Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,164 | 7,673 | |
Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 20,358 | 9,413 | |
Other [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 153 | 163 | |
Current | 21,276 | 21,793 | |
Loans receivable | 21,429 | 21,956 | |
Recorded loans > 90 days and accruing | 3 | ||
Other [Member] | Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 65 | 162 | |
Other [Member] | Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 88 | 1 | |
Real Estate Mortgage [Member] | Commercial Real Estate [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 4,264 | 6,248 | |
Current | 934,198 | 746,723 | |
Loans receivable | 938,462 | 752,971 | |
Recorded loans > 90 days and accruing | 449 | ||
Real Estate Mortgage [Member] | Commercial Real Estate [Member] | Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 272 | 4,053 | |
Real Estate Mortgage [Member] | Commercial Real Estate [Member] | Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,992 | 2,195 | |
Real Estate Mortgage [Member] | One-To-Four Family Residential [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,326 | 1,222 | |
Current | 159,632 | 76,309 | |
Loans receivable | 161,958 | 77,531 | |
Recorded loans > 90 days and accruing | 48 | ||
Real Estate Mortgage [Member] | One-To-Four Family Residential [Member] | Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 549 | 122 | |
Real Estate Mortgage [Member] | One-To-Four Family Residential [Member] | Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,777 | 1,100 | |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans receivable | 150,407 | 197,123 | 148,494 |
Real Estate Construction [Member] | Commercial Real Estate [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,010 | 2,250 | |
Current | 128,060 | 184,409 | |
Loans receivable | 129,070 | 186,659 | |
Real Estate Construction [Member] | Commercial Real Estate [Member] | Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,177 | ||
Real Estate Construction [Member] | Commercial Real Estate [Member] | Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,010 | 73 | |
Real Estate Construction [Member] | One-To-Four Family Residential [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 21,337 | 10,464 | |
Loans receivable | 21,337 | 10,464 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans receivable | 507,173 | 350,410 | $ 255,058 |
Commercial [Member] | Noncovered [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 13,769 | 7,203 | |
Current | 493,404 | 343,207 | |
Loans receivable | 507,173 | 350,410 | |
Recorded loans > 90 days and accruing | 137 | ||
Commercial [Member] | Noncovered [Member] | 30 Days To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 278 | 1,159 | |
Commercial [Member] | Noncovered [Member] | 90 Days And Greater Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 13,491 | $ 6,044 |
Loans And Allowance For Loan 65
Loans And Allowance For Loan Losses (Impaired Loans) (Details) - Noncovered [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | $ 19,112 | $ 16,195 |
With No Specific Allowance Unpaid Principal Balance | 24,793 | 19,578 |
With A Specific Allowance Recorded Investment | 20,969 | 15,812 |
With A Specific Allowance Unpaid Principal Balance | 27,094 | 22,229 |
With A Specific Allowance Related Allowance | 4,112 | 3,869 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | 12,166 | 12,382 |
With No Specific Allowance Unpaid Principal Balance | 15,747 | 14,752 |
With A Specific Allowance Recorded Investment | 10,940 | 11,497 |
With A Specific Allowance Unpaid Principal Balance | 10,940 | 11,556 |
With A Specific Allowance Related Allowance | 1,575 | 2,047 |
One-To-Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | 1,688 | 1,115 |
With No Specific Allowance Unpaid Principal Balance | 2,195 | 1,833 |
With A Specific Allowance Recorded Investment | 185 | |
With A Specific Allowance Unpaid Principal Balance | 186 | |
With A Specific Allowance Related Allowance | 11 | |
Real Estate Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | 1,078 | 73 |
With No Specific Allowance Unpaid Principal Balance | 1,327 | 104 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | 4,095 | 2,624 |
With No Specific Allowance Unpaid Principal Balance | 5,430 | 2,887 |
With A Specific Allowance Recorded Investment | 9,844 | 4,315 |
With A Specific Allowance Unpaid Principal Balance | 15,968 | 10,673 |
With A Specific Allowance Related Allowance | 2,526 | 1,822 |
Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Specific Allowance Recorded Investment | 85 | 1 |
With No Specific Allowance Unpaid Principal Balance | $ 94 | $ 2 |
Loans And Allowance For Loan 66
Loans And Allowance For Loan Losses (Average Recorded Investment And Interest Income Recognized On Impaired Loans) (Details) - Noncovered [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 36,942 | $ 40,977 | $ 83,599 |
Interest Income | 1,186 | 1,037 | 2,200 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 25,044 | 30,257 | 63,125 |
Interest Income | 970 | 968 | 2,112 |
One-To-Four Family Residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 2,323 | 2,764 | 4,645 |
Interest Income | 1 | 1 | 1 |
Real Estate Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 997 | 222 | 2,801 |
Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 8,527 | 7,718 | 12,899 |
Interest Income | 215 | 68 | 87 |
Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 51 | $ 16 | $ 129 |
Loans And Allowance For Loan 67
Loans And Allowance For Loan Losses (Troubled Debt Restructured Loans Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Accruing | $ 20,235 | $ 22,731 |
Nonaccrual | 6,292 | 1,799 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 19,563 | 21,685 |
Nonaccrual | 448 | 1,082 |
One-To-Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 13 | 14 |
Nonaccrual | 48 | 62 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 659 | 1,032 |
Nonaccrual | $ 5,796 | $ 655 |
Loans And Allowance For Loan 68
Loans And Allowance For Loan Losses (Loans Modified As Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Modifications | contract | 1 | 6 |
Recorded Investment | $ | $ 5,511 | $ 569 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Modifications | contract | 1 | |
Recorded Investment | $ | $ 5 | |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Modifications | contract | 1 | 5 |
Recorded Investment | $ | $ 5,511 | $ 564 |
Loans And Allowance For Loan 69
Loans And Allowance For Loan Losses (Recorded Investment And The Number Of Loans Modified As Troubled Debt Restructuring Which Subsequently Defaulted) (Details) - loan | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans And Allowance For Loan Losses [Abstract] | ||
Number of Contracts | 0 | 0 |
Loans And Allowance For Loan 70
Loans And Allowance For Loan Losses (Classification Of Risk Category Of Loans, By Classes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | $ 1,779,429 | $ 1,399,991 | $ 1,270,903 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,710,969 | 1,315,226 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 9,522 | 41,979 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 54,482 | 37,507 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,456 | 5,279 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 938,462 | 752,971 | 752,279 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 902,034 | 690,791 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 5,916 | 34,287 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 30,512 | 27,594 | |
Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 299 | ||
One-To-Four Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 161,958 | 77,531 | 83,988 |
One-To-Four Family Residential [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 157,912 | 76,322 | |
One-To-Four Family Residential [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 29 | 22 | |
One-To-Four Family Residential [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,017 | 1,154 | |
One-To-Four Family Residential [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 33 | ||
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 150,407 | 197,123 | 148,494 |
Real Estate Construction [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 148,811 | 194,670 | |
Real Estate Construction [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 586 | 420 | |
Real Estate Construction [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,010 | 2,033 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 507,173 | 350,410 | 255,058 |
Commercial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 480,928 | 331,594 | |
Commercial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 2,941 | 7,144 | |
Commercial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 18,848 | 6,725 | |
Commercial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,456 | 4,947 | |
Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 21,429 | 21,956 | $ 31,084 |
Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 21,284 | 21,849 | |
Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 50 | 106 | |
Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | $ 95 | $ 1 |
Loans And Allowance For Loan 71
Loans And Allowance For Loan Losses (By Balance In The Allowance For Loan Losses And The Recorded Investment In Loans Portfolio Classification Disaggregated On The Basis Of Impairment Evaluation Method) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | $ 28,452 | $ 36,663 | $ 46,718 | |||
Loans charged-off | (1,351) | (6,916) | (10,004) | |||
Recoveries | 2,571 | 5,329 | 7,158 | |||
Provision (credit) for loan losses | (3,566) | (6,624) | (7,209) | |||
Balance at end of period | 26,106 | 28,452 | 36,663 | |||
Individually evaluated for impairment | $ 4,112 | $ 3,869 | $ 7,939 | |||
Collectively evaluated for impairment | 21,994 | 24,583 | 28,668 | |||
Acquired with deteriorated credit quality | 28,452 | 36,663 | 46,718 | 26,106 | 28,452 | 36,663 |
Individually evaluated for impairment | 34,861 | 38,111 | 61,253 | |||
Collectively evaluated for impairment | 1,736,654 | 1,356,909 | 1,193,223 | |||
Loans Acquired With Deteriorated Credit Quality | 7,914 | 4,971 | 16,427 | |||
Total ending loans balance | 1,779,429 | 1,399,991 | 1,270,903 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 56 | |||||
Balance at end of period | 56 | |||||
Acquired with deteriorated credit quality | 56 | 56 | 56 | |||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 13,678 | 18,854 | 27,223 | |||
Loans charged-off | (489) | (1,400) | (806) | |||
Recoveries | 282 | 3,733 | 171 | |||
Provision (credit) for loan losses | (755) | (7,509) | (7,734) | |||
Balance at end of period | 12,716 | 13,678 | 18,854 | |||
Individually evaluated for impairment | 1,575 | 2,047 | 4,012 | |||
Collectively evaluated for impairment | 11,141 | 11,631 | 14,839 | |||
Acquired with deteriorated credit quality | 13,678 | 18,854 | 27,223 | 12,716 | 13,678 | 18,854 |
Individually evaluated for impairment | 20,332 | 23,907 | 47,730 | |||
Collectively evaluated for impairment | 913,242 | 725,635 | 693,267 | |||
Loans Acquired With Deteriorated Credit Quality | 4,888 | 3,429 | 11,282 | |||
Total ending loans balance | 938,462 | 752,971 | 752,279 | |||
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 3 | |||||
Balance at end of period | 3 | |||||
Acquired with deteriorated credit quality | 3 | 3 | 3 | |||
One-To-Four Family Residential [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 712 | 850 | 861 | |||
Loans charged-off | (20) | (289) | (578) | |||
Recoveries | 558 | 213 | 253 | |||
Provision (credit) for loan losses | (550) | (62) | 314 | |||
Balance at end of period | 700 | 712 | 850 | |||
Individually evaluated for impairment | 11 | |||||
Collectively evaluated for impairment | 689 | 712 | 797 | |||
Acquired with deteriorated credit quality | 712 | 850 | 861 | 700 | 712 | 850 |
Individually evaluated for impairment | 695 | 538 | 456 | |||
Collectively evaluated for impairment | 159,672 | 75,598 | 79,602 | |||
Loans Acquired With Deteriorated Credit Quality | 1,591 | 1,395 | 3,930 | |||
Total ending loans balance | 161,958 | 77,531 | 83,988 | |||
One-To-Four Family Residential [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 53 | |||||
Balance at end of period | 53 | |||||
Acquired with deteriorated credit quality | 53 | 53 | 53 | |||
Real Estate Construction [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 4,159 | 5,523 | 5,271 | |||
Loans charged-off | (21) | (655) | 246 | |||
Recoveries | 47 | 4,527 | ||||
Provision (credit) for loan losses | (1,652) | (709) | (4,521) | |||
Balance at end of period | 2,533 | 4,159 | 5,523 | |||
Individually evaluated for impairment | 18 | |||||
Collectively evaluated for impairment | 2,533 | 4,159 | 5,505 | |||
Acquired with deteriorated credit quality | 4,159 | 5,523 | 5,271 | 2,533 | 4,159 | 5,523 |
Individually evaluated for impairment | 391 | 104 | 2,720 | |||
Collectively evaluated for impairment | 149,344 | 196,905 | 145,576 | |||
Loans Acquired With Deteriorated Credit Quality | 672 | 114 | 198 | |||
Total ending loans balance | 150,407 | 197,123 | 148,494 | |||
Commercial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 9,614 | 10,985 | 12,604 | |||
Loans charged-off | (628) | (4,014) | (8,599) | |||
Recoveries | 1,479 | 1,119 | 2,049 | |||
Provision (credit) for loan losses | (500) | 1,524 | 4,931 | |||
Balance at end of period | 9,965 | 9,614 | 10,985 | |||
Individually evaluated for impairment | 2,526 | 1,822 | 3,863 | |||
Collectively evaluated for impairment | 7,439 | 7,792 | 7,122 | |||
Acquired with deteriorated credit quality | 9,614 | 10,985 | 12,604 | 9,965 | 9,614 | 10,985 |
Individually evaluated for impairment | 13,396 | 13,560 | 10,297 | |||
Collectively evaluated for impairment | 493,026 | 336,818 | 243,790 | |||
Loans Acquired With Deteriorated Credit Quality | 751 | 32 | 971 | |||
Total ending loans balance | 507,173 | 350,410 | 255,058 | |||
Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Balance at beginning of period | 289 | 451 | 759 | |||
Loans charged-off | (193) | (558) | (267) | |||
Recoveries | 205 | 264 | 158 | |||
Provision (credit) for loan losses | (109) | 132 | (199) | |||
Balance at end of period | 192 | 289 | 451 | |||
Individually evaluated for impairment | 46 | |||||
Collectively evaluated for impairment | 192 | 289 | 405 | |||
Acquired with deteriorated credit quality | $ 289 | $ 451 | $ 759 | 192 | 289 | 451 |
Individually evaluated for impairment | 47 | 2 | 50 | |||
Collectively evaluated for impairment | 21,370 | 21,953 | 30,988 | |||
Loans Acquired With Deteriorated Credit Quality | 12 | 1 | 46 | |||
Total ending loans balance | $ 21,429 | $ 21,956 | $ 31,084 |
Premises And Equipment (Narrati
Premises And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises And Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 2.5 | $ 2.8 | $ 2.5 |
Total rental expense | $ 2.9 | $ 2.4 | $ 2.6 |
Premises And Equipment (Premise
Premises And Equipment (Premises And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Premises And Equipment [Abstract] | ||
Land | $ 6,630 | $ 5,496 |
Buildings and improvements | 25,219 | 20,967 |
Furniture, fixtures, and equipment | 30,813 | 29,091 |
Construction/remodeling in progress | 965 | 574 |
Total premises and equipment, gross | 63,627 | 56,128 |
Accumulated depreciation and amortization | (39,808) | (37,540) |
Total premises and equipment, net | $ 23,819 | $ 18,588 |
Premises And Equipment (Future
Premises And Equipment (Future Minimum Annual Rental Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Premises And Equipment [Abstract] | |
2,016 | $ 2,781 |
2,017 | 1,491 |
2,018 | 1,230 |
2,019 | 1,073 |
2,020 | 977 |
Thereafter | 2,450 |
Total | $ 10,002 |
Goodwill And Other Intangible75
Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Goodwill | $ 13,467,000 | 1,214,000 | 1,214,000 |
Weighted average amortization period for Core Deposit Intangibles | 10 years | ||
Reduction In Core Deposit Intangibles Due To Branch Sales | 1,100,000 | ||
Oklahoma Banking [Member] | |||
Goodwill | $ 12,447,000 | 194,000 | 194,000 |
Texas Banking [Member] | |||
Goodwill | 1,020,000 | 1,020,000 | 1,020,000 |
Core Deposits [Member] | |||
Amortization | 300,000 | 400,000 | 500,000 |
Servicing Contracts [Member] | |||
Amortization | $ 700,000 | $ 400,000 | $ 800,000 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets (Gross Carrying Amount of Other Intangible Assets and Accumulated Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Intangible assets, net | $ 6,615 | $ 3,927 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets, Gross | 6,119 | 3,418 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3,225) | (2,889) |
Other Intangible assets, net | 2,894 | 529 |
Servicing Contracts [Member] | ||
Finite-Lived Intangible Assets, Gross | 13,635 | 12,564 |
Finite-Lived Intangible Assets, Accumulated Amortization | (9,914) | (9,166) |
Other Intangible assets, net | $ 3,721 | $ 3,398 |
Goodwill and Other Intangible77
Goodwill and Other Intangible Assets (Estimated Aggregate Future Amortization Expense for Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
2,016 | $ 1,320 | |
2,017 | 1,078 | |
2,018 | 909 | |
2,019 | 811 | |
2,020 | 729 | |
Thereafter | 1,768 | |
Other Intangible assets, net | 6,615 | $ 3,927 |
Core Deposits [Member] | ||
2,016 | 593 | |
2,017 | 451 | |
2,018 | 391 | |
2,019 | 386 | |
2,020 | 386 | |
Thereafter | 687 | |
Other Intangible assets, net | 2,894 | 529 |
Servicing Contracts [Member] | ||
2,016 | 727 | |
2,017 | 627 | |
2,018 | 518 | |
2,019 | 425 | |
2,020 | 343 | |
Thereafter | 1,081 | |
Other Intangible assets, net | $ 3,721 | $ 3,398 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ 100,000 | $ 0 |
Noncovered [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Noncovered impaired loans carrying amount | 25,900,000 | 21,900,000 |
Noncovered impaired loans measured at fair value | 21,600,000 | 17,500,000 |
Noncovered impaired loans life to date impairment | 4,300,000 | 4,400,000 |
Impairment charge of other real estate assets | $ 100,000 | $ 600,000 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 400,331 | $ 353,231 |
Derivative asset | 1,793 | 787 |
Derivative liability | (1,793) | (787) |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,793 | 787 |
Total Assets at Fair Value on a recurring basis | 398,961 | 351,645 |
Fair Value, Measurements, Recurring [Member] | Federal Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 78,211 | 99,546 |
Fair Value, Measurements, Recurring [Member] | Obligations Of State And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 47,564 | 33,139 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 239,888 | 178,227 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,415 | 9,548 |
Fair Value, Measurements, Recurring [Member] | Corporate debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 25,253 | 32,771 |
Fair Value, Measurements, Recurring [Member] | Derivative Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | (3,163) | (2,373) |
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value on a recurring basis | 137 | 142 |
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | Corporate debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 137 | 142 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,793 | 787 |
Total Assets at Fair Value on a recurring basis | 398,824 | 351,503 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Federal Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 78,211 | 99,546 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Obligations Of State And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 47,564 | 33,139 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 239,888 | 178,227 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,415 | 9,548 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Corporate debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 25,116 | 32,629 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Derivative Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ (3,163) | $ (2,373) |
Fair Value Measurements (Asset
Fair Value Measurements (Asset Measured At Fair Value On A Nonrecurring Basis) (Details) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | $ 35,050 | $ 22,066 |
Commercial Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 11,182 | 11,762 |
One-To-Four Family Residential [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 7,453 | 763 |
Assets fair value, Total | 185 | |
Real Estate Construction [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 390 | |
Commercial [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 9,845 | 5,722 |
Other loans held for sale [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 17 | |
Government Guaranteed Commercial Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 705 | |
Noncovered Other Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 2,274 | 3,097 |
Mortgage Loan Servicing Rights [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 3,721 | |
Level 2 Inputs [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 11,174 | 1,485 |
Level 2 Inputs [Member] | One-To-Four Family Residential [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 7,453 | 763 |
Level 2 Inputs [Member] | Other loans held for sale [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 17 | |
Level 2 Inputs [Member] | Government Guaranteed Commercial Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Loans held for sale | 705 | |
Level 2 Inputs [Member] | Mortgage Loan Servicing Rights [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 3,721 | |
Level 3 Inputs [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 23,876 | 20,581 |
Level 3 Inputs [Member] | Commercial Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 11,182 | 11,762 |
Level 3 Inputs [Member] | One-To-Four Family Residential [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 185 | |
Level 3 Inputs [Member] | Real Estate Construction [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 390 | |
Level 3 Inputs [Member] | Commercial [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | 9,845 | 5,722 |
Level 3 Inputs [Member] | Noncovered Other Real Estate [Member] | ||
Noncovered impaired loans at fair value: | ||
Assets fair value, Total | $ 2,274 | $ 3,097 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Estimated Fair Values Of Financial Instruments Segregated By The Level Of The Valuation Inputs) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Held to maturity securities, fair value | $ 12,282 | $ 12,880 |
Accrued interest receivable | 5,767 | 4,723 |
Derivative Assets | 1,793 | 787 |
Financial Liabilities: | ||
Accrued interest payable | 867 | 769 |
Derivative instrument | 1,793 | 787 |
Other borrowings | 110,927 | 79,380 |
Carrying Values [Member] | ||
Financial Liabilities: | ||
Subordinated debentures | 51,548 | 46,393 |
Carrying Values [Member] | Level 2 Inputs [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 78,129 | 140,936 |
Held to maturity securities, fair value | 11,797 | 12,362 |
Accrued interest receivable | 5,767 | 4,723 |
Investments included in other assets | 10,383 | 7,949 |
Financial Liabilities: | ||
Deposits | 1,884,105 | 1,533,999 |
Accrued interest payable | 867 | 769 |
Other liabilities | 10,314 | 8,334 |
Other borrowings | 110,927 | 79,380 |
Carrying Values [Member] | Level 3 Inputs [Member] | ||
Financial Assets: | ||
Total loans, net of allowance | 1,753,323 | 1,371,539 |
Fair Values [Member] | ||
Financial Liabilities: | ||
Subordinated debentures | 51,548 | 46,393 |
Fair Values [Member] | Level 2 Inputs [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 78,129 | 140,936 |
Held to maturity securities, fair value | 12,282 | 12,880 |
Accrued interest receivable | 5,767 | 4,723 |
Investments included in other assets | 10,383 | 7,949 |
Financial Liabilities: | ||
Deposits | 1,780,954 | 1,450,540 |
Accrued interest payable | 867 | 769 |
Other liabilities | 10,314 | 8,334 |
Other borrowings | 112,149 | 81,544 |
Fair Values [Member] | Level 3 Inputs [Member] | ||
Financial Assets: | ||
Total loans, net of allowance | $ 1,728,114 | $ 1,303,047 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Deposit Liabilities Reclassified as Loans Receivable | $ 300,000 | $ 200,000 |
Time Deposits $250,000 or More | 95,400,000 | 44,600,000 |
Certificate of Deposits Account Registry Services Deposits | 22,500,000 | 3,400,000 |
Capital Market Certificate of Deposits | $ 17,300,000 | $ 0 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits [Abstract] | |||
Noninterest-bearing demand | $ 596,494 | $ 496,128 | |
Interest-bearing demand | 151,015 | 122,342 | |
Money market accounts | 534,357 | 461,679 | |
Savings accounts | 56,333 | 32,795 | |
Time deposits of $100,000 or more | 311,538 | 198,952 | |
Other time deposits | 234,368 | 222,103 | |
Total deposits | $ 1,884,105 | $ 1,533,999 | $ 1,584,086 |
Deposits (Time Deposits Maturit
Deposits (Time Deposits Maturities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Deposits [Abstract] | |
2,016 | $ 392,831 |
2,017 | 106,258 |
2,018 | 29,887 |
2,019 | 10,922 |
2,020 | 5,559 |
Thereafter | 449 |
Total time deposits | $ 545,906 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)entityitem | Dec. 31, 2014USD ($) | |
Federal funds purchase line available under repurchase agreements | $ 65 | |
Number of Entities with Repurchase Agreement Lines Available | entity | 3 | |
Repurchase Agreement transaction period | one-to-four day | |
Number of Repurchase Agreements that Exceed Ten Percent of Equity Capital | item | 0 | |
Loans pledged under FHLB agreement | $ 447.9 | $ 528.4 |
Investment Securities Pledged Under FHLB Agreement | 0 | |
Collateral Pledged For Repurchase Agreements | 58.9 | $ 72.7 |
Line of Credit Facility, Maximum Borrowing Capacity | 89.8 | |
Bank SNB [Member] | ||
Federal Home Loan Bank Advances | $ 73.7 |
Borrowed Funds (Schedule Of Bor
Borrowed Funds (Schedule Of Borrowed Funds) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt | $ 110,927 | $ 79,380 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt | 37,273 | 54,380 |
Short-term Debt, Average Outstanding Amount | $ 44,218 | $ 57,965 |
Short-term Debt, Weighted Average Interest Rate | 0.07% | 0.05% |
Federal Home Loan Bank Advances [Member] | ||
Short-term Debt | $ 73,654 | $ 25,000 |
Short-term Debt, Average Outstanding Amount | $ 28,289 | $ 25,000 |
Short-term Debt, Weighted Average Interest Rate | 3.11% | 3.47% |
Trust Preferred Securities an87
Trust Preferred Securities and Subordinated Debentures (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Subordinated Borrowing [Line Items] | ||
Trust Preferred Securities | $ 50,000,000 | $ 45,000,000 |
Subordinated debentures | 51,548,000 | 46,393,000 |
Investment in common equity issued by Trusts | $ 1,500,000 | |
Federal Reserve Limit On Trust Preferred | 25.00% | |
OKSB Statutory Trust I [Member] | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Securities | $ 20,000,000 | 20,000,000 |
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 3.10% | |
Amount of trust common equity sold to Southwest | $ 600,000 | |
Subordinated debentures | $ 20,619,000 | 20,619,000 |
Outstanding common securities of the Trust | 619 | |
Trust liquidation value per share | $ 1,000 | |
SBI Capital Trust II [Member] | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Securities | $ 25,000,000 | 25,000,000 |
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 2.85% | |
Amount of trust common equity sold to Southwest | $ 800,000 | |
Subordinated debentures | $ 25,774,000 | $ 25,774,000 |
Outstanding common securities of the Trust | 774 | |
Trust liquidation value per share | $ 1,000 | |
FCBI Statutory Trust I [Member] | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Securities | $ 5,000,000 | |
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 3.00% | |
Amount of trust common equity sold to Southwest | $ 200,000 | |
Subordinated debentures | $ 5,155,000 | |
OKSB Subordinated Debentures [Member] | ||
Subordinated Borrowing [Line Items] | ||
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 3.10% | |
Principal amount of subordinated debentures | $ 20,600,000 | |
SBI II Subordinated Debentures [Member] | ||
Subordinated Borrowing [Line Items] | ||
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 2.85% | |
Principal amount of subordinated debentures | $ 25,800,000 | |
FCBI I Subordinated Debentures [Member] | ||
Subordinated Borrowing [Line Items] | ||
Adjustable rate | 90-day LIBOR | |
Adjustable rate, additional percentage | 3.00% | |
Principal amount of subordinated debentures | $ 5,200,000 | |
Trust Preferred Securities [Member] | ||
Subordinated Borrowing [Line Items] | ||
Tier one capital | $ 50,000,000 |
Trust Preferred Securities an88
Trust Preferred Securities and Subordinated Debentures (Schedule of Trust Preferred Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Subordinated Borrowing [Line Items] | ||
Subordinated debentures | $ 51,548 | $ 46,393 |
Trust Preferred Securities of the Trusts | 50,000 | 45,000 |
OKSB Statutory Trust I [Member] | ||
Subordinated Borrowing [Line Items] | ||
Subordinated debentures | 20,619 | 20,619 |
Trust Preferred Securities of the Trusts | $ 20,000 | $ 20,000 |
Rates | 3.70% | 3.35% |
Final Maturity Date | Jun. 26, 2033 | Jun. 26, 2033 |
SBI Capital Trust II [Member] | ||
Subordinated Borrowing [Line Items] | ||
Subordinated debentures | $ 25,774 | $ 25,774 |
Trust Preferred Securities of the Trusts | $ 25,000 | $ 25,000 |
Rates | 3.17% | 3.08% |
Final Maturity Date | Oct. 7, 2033 | Oct. 7, 2033 |
FCBI Statutory Trust I [Member] | ||
Subordinated Borrowing [Line Items] | ||
Subordinated debentures | $ 5,155 | |
Trust Preferred Securities of the Trusts | $ 5,000 | |
Rates | 3.33% | |
Final Maturity Date | Sep. 4, 2033 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)agreement | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Interest Rate Swap on Trust Preferred Securities [Member] | |||
Derivative [Line Items] | |||
Interest rate swap agreement Notional amount | $ 25,000 | ||
Interest payment period | 7 years | ||
Fixed interest rate | 6.15% | ||
Variable interest rate | 2.85% | ||
Rate received by Southwest | 3.17% | ||
Pretax loss related to derivative contracts | $ 1,400 | $ 1,600 | |
Gain or loss due to changes in the fair value of the derivative hedging instrument | 100 | 300 | |
Net cash flows as a result of the interest rate swap agreement | 800 | 800 | $ 800 |
The fair value of cash and securities posted as collateral | $ 2,100 | ||
Customer Risk Management Swaps [Member] | |||
Derivative [Line Items] | |||
Number of customer interest rate swap agreements | agreement | 9 | ||
Derivative Asset, Notional Amount | $ 101,629 | 34,322 | |
Derivative Liability, Notional Amount | 101,629 | 34,322 | |
The fair value of cash and securities posted as collateral | 4,600 | ||
Non-hedge derivative asset, fair value | 1,793 | 787 | |
Non-hedge derivative liability, fair value | $ 1,793 | $ 787 |
Taxes On Income (Details)
Taxes On Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective tax rate | 36.00% | 37.50% | 38.20% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 2,500 | ||
Net deferred tax assets | $ 13,953 | $ 14,094 | |
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforward Expiration Date | 2,031 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 10,700 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforward Expiration Date | 2,031 | 2,031 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 23,300 | $ 53,100 | |
State And Local Jurisdiction Second Expiration [Member] | |||
Operating Loss Carryforward Expiration Date | 2,021 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 600 |
Taxes On Income (Tax Components
Taxes On Income (Tax Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax (benefit) expense: | |||
Federal | $ 7,534 | $ 3,251 | $ 462 |
State | 143 | 186 | 74 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 1,126 | 7,970 | 9,362 |
State | 990 | 1,210 | 858 |
Income Tax Expense (Benefit), Total | $ 9,793 | $ 12,617 | $ 10,756 |
Taxes On Income (Reconciliation
Taxes On Income (Reconciliation from the Expected Tax Expense (Benefit) Using the U.S. Federal Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes On Income [Abstract] | |||
Computed tax (benefit) expense at statutory rates | $ 9,520 | $ 11,777 | $ 9,867 |
Increase (decrease) in income taxes results from: | |||
Benefit of income not subject to U.S. Federal income tax | (621) | (209) | (213) |
Expenses not deductible for U.S. Federal income tax | 220 | 129 | 96 |
State income taxes, net of Federal income tax benefit | 736 | 907 | 749 |
Tax Credit Recapture | 76 | ||
Other | (62) | 13 | 181 |
Income Tax Expense (Benefit), Total | $ 9,793 | $ 12,617 | $ 10,756 |
Taxes on Income (Temporary Diff
Taxes on Income (Temporary Differences That Give Rise to the Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Provision for loan losses | $ 10,291 | $ 11,753 |
Net operating loss carryforward | 858 | 1,310 |
Write-down on other real estate | 57 | 187 |
Nonaccrual loan interest | 603 | 500 |
Deferred compensation & profit sharing accrual | 711 | 204 |
Investments | 311 | 303 |
Section 597 gain - FNBA FDIC assisted acquistion | 472 | 667 |
Accrued Expenses | 1,013 | 1,275 |
Loan purchase accounting adjustment | 2,725 | |
Stock-based compensation | 629 | 258 |
Other | (2) | 53 |
Total deferred tax assets | 17,668 | 16,252 |
Deferred tax liabilities: | ||
Accumulated depreciation | (2,877) | (2,133) |
Amortizable assets | (1,089) | (116) |
Dividend - Equity vs. Cost Method | (393) | (206) |
Prepaid expenses | (109) | (123) |
FHLB stock dividends | (132) | (73) |
Total deferred tax liabilities | (4,600) | (2,393) |
Deferred taxes (payable) receivable on investment securities available for sale | 885 | 235 |
Net deferred tax assets | $ 13,953 | $ 14,094 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Treasury Stock Value | $ 18,926 | $ 10,302 |
Stock Repurchase Program Authorized Percent Of Common Stock | 5.00% | |
Treasury Stock, Shares, Acquired | 503,740 | 617,818 |
Treasury Stock, Amount, Acquired | $ 8,500 | |
Employee Stock Purchase Plan [Member] | ||
Common stock reserved for issuance | 150,000 | |
Common stock issued, shares | 59,873 | 57,944 |
Treasury shares reissued | 52,500 | 52,500 |
2008 Stock Based Award Plan [Member] | ||
Common stock reserved for issuance | 800,000 | |
Common stock issued, shares | 512,101 | 400,864 |
Treasury shares reissued | 25,725 | 25,725 |
2014 Stock Repurchase Program [Member] | ||
Stock Repurchase Program Authorized Percent Of Common Stock | 5.00% | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 990,000 | |
2015 Stock Repurchase Program [Member] | ||
Stock Repurchase Program Authorized Percent Of Common Stock | 5.00% | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 950,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net income | $ 17,407 | $ 21,030 | $ 17,435 |
Preferred dividend | |||
Net income available to common shareholders | $ 17,407 | $ 21,030 | $ 17,435 |
Earnings allocated to participating securities | (258) | (253) | (139) |
Numerator for earnings per common share | $ 17,149 | $ 20,777 | $ 17,296 |
Denominator: | |||
Denominator for basic earnings per common share | 18,975,450 | 19,417,486 | 19,516,776 |
Effect of dilutive securities: | |||
Stock compensation | 154,083 | 142,877 | 87,469 |
Denominator for diluted earnings per common share | 19,129,533 | 19,560,363 | 19,604,245 |
Earnings per common share: | |||
Basic | $ 0.90 | $ 1.07 | $ 0.89 |
Diluted | $ 0.90 | $ 1.06 | $ 0.88 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 38,145 | ||
Stock Options [Member] | |||
Earnings per common share: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
Capital Requirements And Regu96
Capital Requirements And Regulatory Agreements (Southwest’s and Bank SNB's Actual Capital Amounts And Ratios) (Details) $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Southwest [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 Capital, Actual, Amount | $ 282,737 | |
CET1 Capital to risk-weighted assets, Actual, Ratio | 13.21 | |
CET1 Capital, To Be Well Capitalized, Amount | $ 139,122 | |
CET1 Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 6.50 | |
CET1 Capital, For Capital Adequacy Purposes, Amount | $ 96,316 | |
CET1 Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 4.50 | |
Total Capital, Actual, Amount | $ 359,300 | $ 334,348 |
Total Capital to risk-weighted assets, Actual, Ratio | 16.79% | 20.96% |
Total Capital, To Be Well Capitalized, Amount | $ 214,034 | $ 159,504 |
Total Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 10.00% | 10.00% |
Total Capital, For Capital Adequacy Purposes, Amount | $ 171,228 | $ 127,603 |
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier 1 Capital, Actual, Amount | $ 332,468 | $ 314,216 |
Tier 1 Capital to risk-weighted assets, Actual, Ratio | 15.53% | 19.70% |
Tier 1 Capital, To Be Well Capitalized, Amount | $ 171,228 | $ 95,702 |
Tier 1 Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 8.00% | 6.00% |
Tier 1 Capital, For Capital Adequacy Purposes, Amount | $ 128,421 | $ 63,801 |
Tier 1 Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 Leverage, Actual, Amount | $ 332,468 | $ 314,216 |
Tier 1 Leverage to average assets, Actual, Ratio | 14.41% | 16.45% |
Tier 1 Leverage, To Be Well Capitalized, Amount | $ 115,371 | $ 95,534 |
Tier 1 Leverage to average assets, To Be Well Capitalized, Ratio | 5.00% | 5.00% |
Tier 1 Leverage, For Capital Adequacy Purposes, Amount | $ 92,297 | $ 76,428 |
Tier 1 Leverage to average assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Bank SNB [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 Capital, Actual, Amount | $ 291,125 | |
CET1 Capital to risk-weighted assets, Actual, Ratio | 13.65 | |
CET1 Capital, To Be Well Capitalized, Amount | $ 138,637 | |
CET1 Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 6.50 | |
CET1 Capital, For Capital Adequacy Purposes, Amount | $ 95,980 | |
CET1 Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 4.50 | |
Total Capital, Actual, Amount | $ 317,865 | $ 298,224 |
Total Capital to risk-weighted assets, Actual, Ratio | 14.90% | 18.81% |
Total Capital, To Be Well Capitalized, Amount | $ 213,288 | $ 158,518 |
Total Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 10.00% | 10.00% |
Total Capital, For Capital Adequacy Purposes, Amount | $ 170,631 | $ 126,814 |
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier 1 Capital, Actual, Amount | $ 291,125 | $ 278,214 |
Tier 1 Capital to risk-weighted assets, Actual, Ratio | 13.65% | 17.55% |
Tier 1 Capital, To Be Well Capitalized, Amount | $ 170,631 | $ 95,111 |
Tier 1 Capital to risk-weighted assets, To Be Well Capitalized, Ratio | 8.00% | 6.00% |
Tier 1 Capital, For Capital Adequacy Purposes, Amount | $ 127,973 | $ 63,407 |
Tier 1 Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 Leverage, Actual, Amount | $ 291,125 | $ 278,214 |
Tier 1 Leverage to average assets, Actual, Ratio | 12.66% | 14.64% |
Tier 1 Leverage, To Be Well Capitalized, Amount | $ 114,939 | $ 95,030 |
Tier 1 Leverage to average assets, To Be Well Capitalized, Ratio | 5.00% | 5.00% |
Tier 1 Leverage, For Capital Adequacy Purposes, Amount | $ 91,951 | $ 76,024 |
Tier 1 Leverage to average assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Maximum percentage of elegible compensation able to be contributed to the defined contribution plan | 90.00% | ||
Employer match contribution | 3.00% | ||
Amount contributed to the defined contribution plan | $ 700,000 | $ 600,000 | $ 1,000,000 |
Share-based compensation expense | $ 0 | $ 0 | $ 0 |
Restricted shares granted | 585,049 | 477,987 | 401,844 |
Recognized compensation expense related to restricted shares outstanding | $ 1,500,000 | $ 900,000 | $ 700,000 |
Unrecognized compensation expense, expected to be recognized in next fiscal year | $ 1,300,000 | ||
Unrecognized compensation expense, period of recognition | 2 years | ||
Number of Options Outstanding | 0 | ||
Exercised, Number of Options | 0 | 0 | 0 |
Expiration period of restricted shares | 1 year | ||
Restricted Stock [Member] | |||
Unrecognized compensation expense related to restricted shares granted | $ 2,000,000 | ||
Maximum [Member] | |||
Vesting period of restriced stock | 3 years | ||
Minimum [Member] | |||
Vesting period of restriced stock | 1 year |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Related party indebtedness | $ 26.1 | $ 9.1 |
New loans and advances on existing loans | 41.2 | 7.1 |
Related party loan repayments | 24.2 | 1.4 |
Related party deposits | 2.1 | 4.2 |
Related party savings and interest-bearing transaction accounts | 14 | 19.4 |
Related party time certificates of deposit | $ 0.5 | $ 0 |
Off-Balance-Sheet Arrangements,
Off-Balance-Sheet Arrangements, Commitments, Guarantees And Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies [Abstract] | ||
Commitments to extend commercial and real estate mortgage credit | $ 446,412 | $ 324,927 |
Standby and commercial letters of credit | 6,595 | 7,287 |
Total | 453,007 | $ 332,214 |
Maximum amount payable for Severance Compensation Plan | $ 7,700 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Operating Segments [Abstract] | |
Number of principal segments | 4 |
Operating Segments (Financial R
Operating Segments (Financial Results By Operating Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial results by operating segment | |||
Net interest income (loss) | $ 67,417 | $ 65,004 | $ 62,650 |
Provision (credit) for loan losses | (3,566) | (6,624) | (7,209) |
Noninterest income | 14,457 | 18,931 | 13,643 |
Noninterest expenses | 58,240 | 56,912 | 55,311 |
Income before taxes | 27,200 | 33,647 | 28,191 |
Taxes on income (loss) | 9,793 | 12,617 | 10,756 |
Net income | 17,407 | 21,030 | 17,435 |
Externally generated revenue from investing activities | 1,600 | ||
Internally generated loss from fund management | 100 | ||
Total loans at period end | 1,779,429 | 1,399,991 | 1,270,903 |
Total assets at period end | 2,357,022 | 1,942,034 | 1,981,423 |
Total goodwill at period end | 13,467 | 1,214 | 1,214 |
Total deposits at period end | 1,884,105 | 1,533,999 | 1,584,086 |
Oklahoma Banking [Member] | |||
Financial results by operating segment | |||
Net interest income (loss) | 42,019 | 38,846 | 35,395 |
Provision (credit) for loan losses | (2,068) | (2,561) | (338) |
Noninterest income | 10,134 | 9,030 | 9,644 |
Noninterest expenses | 33,136 | 31,363 | 30,287 |
Income before taxes | 21,085 | 19,074 | 15,090 |
Taxes on income (loss) | 7,591 | 7,152 | 5,757 |
Net income | 13,494 | 11,922 | 9,333 |
Total loans at period end | 1,048,473 | 793,262 | 705,206 |
Total assets at period end | 1,098,735 | 805,704 | 712,898 |
Total goodwill at period end | 12,447 | 194 | 194 |
Total deposits at period end | 1,374,227 | 1,113,477 | 1,115,610 |
Texas Banking [Member] | |||
Financial results by operating segment | |||
Net interest income (loss) | 21,168 | 19,187 | 18,949 |
Provision (credit) for loan losses | (632) | (3,640) | (6,403) |
Noninterest income | 1,485 | 1,594 | 1,305 |
Noninterest expenses | 14,324 | 13,387 | 9,494 |
Income before taxes | 8,961 | 11,034 | 17,163 |
Taxes on income (loss) | 3,227 | 4,138 | 6,548 |
Net income | 5,734 | 6,896 | 10,615 |
Total loans at period end | 580,476 | 460,680 | 366,697 |
Total assets at period end | 578,749 | 458,489 | 361,058 |
Total goodwill at period end | 1,020 | 1,020 | 1,020 |
Total deposits at period end | 209,146 | 224,634 | 207,227 |
Kansas Banking [Member] | |||
Financial results by operating segment | |||
Net interest income (loss) | 6,277 | 9,469 | 10,527 |
Provision (credit) for loan losses | (868) | (425) | (472) |
Noninterest income | 1,473 | 1,576 | 1,944 |
Noninterest expenses | 6,152 | 8,616 | 11,898 |
Income before taxes | 2,466 | 2,854 | 1,045 |
Taxes on income (loss) | 888 | 1,070 | 399 |
Net income | 1,578 | 1,784 | 646 |
Total loans at period end | 150,480 | 146,043 | 198,992 |
Total assets at period end | 149,847 | 147,256 | 203,631 |
Total deposits at period end | 119,313 | 110,901 | 247,884 |
Other Operations [Member] | |||
Financial results by operating segment | |||
Net interest income (loss) | (2,047) | (2,498) | (2,221) |
Provision (credit) for loan losses | 2 | 2 | 4 |
Noninterest income | 1,365 | 6,731 | 750 |
Noninterest expenses | 4,628 | 3,546 | 3,632 |
Income before taxes | (5,312) | 685 | (5,107) |
Taxes on income (loss) | (1,913) | 257 | (1,948) |
Net income | (3,399) | 428 | (3,159) |
Externally generated revenue from investing activities | 2,100 | 7,600 | |
Internally generated loss from fund management | 2,800 | 3,300 | |
Total loans at period end | 6 | 8 | |
Total assets at period end | 529,691 | 530,585 | 703,836 |
Total deposits at period end | $ 181,419 | $ 84,987 | $ 13,365 |
Parent Company Condensed Fin102
Parent Company Condensed Financial Information (Statements Of Financial Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $ 78,129 | $ 140,936 | $ 279,839 | $ 288,079 |
Available-for-sale Securities | 400,331 | 353,231 | ||
Other assets | 32,031 | 31,630 | ||
Total assets | 2,357,022 | 1,942,034 | 1,981,423 | |
Subordinated debentures | 51,548 | 46,393 | ||
Other liabilities | 11,684 | 9,920 | ||
Common stock and related accounts | 21,138 | 19,811 | ||
Total liabilities & shareholders' equity | 2,357,022 | 1,942,034 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 30,469 | 21,526 | $ 12,039 | $ 18,245 |
Investment in subsidiary banks | 305,064 | 280,754 | ||
Investments in other subsidiaries | 8,444 | 8,294 | ||
Available-for-sale Securities | 759 | |||
Other assets | 6,393 | 8,061 | ||
Total assets | 350,370 | 319,394 | ||
Subordinated debentures | 51,548 | 46,393 | ||
Other liabilities | 2,724 | 2,215 | ||
Common stock and related accounts | 296,098 | 270,786 | ||
Total liabilities & shareholders' equity | $ 350,370 | $ 319,394 |
Parent Company Condensed Fin103
Parent Company Condensed Financial Information (Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noninterest income | $ 14,457 | $ 18,931 | $ 13,643 |
Subordinated debentures | 2,284 | 2,233 | 4,813 |
Noninterest expenses | 58,240 | 56,912 | 55,311 |
Total income (loss) before taxes and equity in undistributed income of subsidiaries | 27,200 | 33,647 | 28,191 |
Taxes on income (loss) | 9,793 | 12,617 | 10,756 |
Net income | 17,407 | 21,030 | 17,435 |
Parent Company [Member] | |||
Cash dividends from subsidiaries | 20,046 | 18,045 | 19,625 |
Noninterest income | 45 | 34 | 333 |
Investment income | 20 | 1,337 | 243 |
Other operating income | 25 | 3 | |
Security gains | 163 | ||
Total income | 20,299 | 19,419 | 20,201 |
Subordinated debentures | 1,566 | 1,505 | 4,168 |
Noninterest expenses | 1,756 | 1,317 | 1,808 |
Total expense | 3,322 | 2,822 | 5,976 |
Total income (loss) before taxes and equity in undistributed income of subsidiaries | 16,977 | 16,597 | 14,225 |
Taxes on income (loss) | (1,167) | (582) | (2,027) |
Income (loss) before equity in undistributed income of subsidiaries | 18,144 | 17,179 | 16,252 |
Equity in undistributed income (loss) of subsidiaries | (737) | 3,851 | 1,183 |
Net income | $ 17,407 | $ 21,030 | $ 17,435 |
Parent Company Condensed Fin104
Parent Company Condensed Financial Information (Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income (Loss) Attributable to Parent | $ 17,407 | $ 21,030 | $ 17,435 |
Net income | 17,407 | 21,030 | 17,435 |
Net Cash Provided by (Used in) Operating Activities | 14,932 | 26,703 | 45,239 |
Net cash provided by operating activities | 14,932 | 26,703 | 45,239 |
Payments to Acquire Available-for-sale Securities | 115,710 | 51,344 | 140,473 |
Purchases of available for sale securities | (115,710) | (51,344) | (140,473) |
Net cash provided by (used in) investing activities | (194,433) | (231,795) | 99,356 |
Net proceeds from issuance of common stock | 682 | 385 | 229 |
Purchases of treasury stock | (8,624) | (10,302) | |
Common stock dividends paid | (4,607) | (3,131) | |
Payments of Ordinary Dividends, Common Stock | 4,607 | 3,131 | |
Net Cash Provided by (Used in) Financing Activities | 116,694 | 66,189 | (152,835) |
Net cash used in financing activities | 116,694 | 66,189 | (152,835) |
Net decrease in cash and cash equivalents | (62,807) | (138,903) | (8,240) |
Cash and Cash Equivalents, Period Increase (Decrease) | (62,807) | (138,903) | (8,240) |
Cash and Cash Equivalents, at Carrying Value | 140,936 | 279,839 | 288,079 |
Beginning of period | 140,936 | 279,839 | 288,079 |
End of period | 78,129 | 140,936 | 279,839 |
Parent Company [Member] | |||
Net Income (Loss) Attributable to Parent | 17,407 | 21,030 | 17,435 |
Net income | 17,407 | 21,030 | 17,435 |
Equity in undistributed (income) loss of subsidiaries | 737 | (3,851) | (1,183) |
Other Operating Activities, Cash Flow Statement | 2,295 | 2,937 | (2,341) |
Other, net | 2,295 | 2,937 | (2,341) |
Net Cash Provided by (Used in) Operating Activities | 20,439 | 20,116 | 13,911 |
Net cash provided by operating activities | 20,439 | 20,116 | 13,911 |
Payments to Acquire Available-for-sale Securities | 1,121 | ||
Purchases of available for sale securities | (1,121) | ||
Sales/Maturities of available for sale securities | 750 | 2,540 | 32 |
Proceeds from Sale and Maturity of Available-for-sale Securities | 750 | 2,540 | 32 |
Capital contribution to Banks | 15,000 | ||
Outlays For Business Acquisitions | (4,697) | ||
Other, net | (155) | ||
Net cash provided by (used in) investing activities | (4,102) | 1,419 | 15,032 |
Net proceeds from issuance of common stock | 682 | 1,386 | 2,708 |
Redemption of of subordinated debentures | (35,570) | ||
Purchases of treasury stock | (8,624) | (10,302) | |
Common stock dividends paid | (4,607) | (3,132) | |
Payments of Ordinary Dividends, Common Stock | 4,607 | 3,132 | |
Other, net | 5,155 | (2,287) | |
Net Cash Provided by (Used in) Financing Activities | (7,394) | (12,048) | (35,149) |
Net cash used in financing activities | (7,394) | (12,048) | (35,149) |
Net decrease in cash and cash equivalents | 8,943 | 9,487 | (6,206) |
Cash and Cash Equivalents, Period Increase (Decrease) | 8,943 | 9,487 | (6,206) |
Cash and Cash Equivalents, at Carrying Value | 21,526 | 12,039 | 18,245 |
Beginning of period | 21,526 | 12,039 | 18,245 |
End of period | $ 30,469 | $ 21,526 | $ 12,039 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 18, 2011 | Dec. 31, 2015 |
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Loan Balance of Swap Commitment | $ 15,900 | |
Loss Contingency, Lawsuit Filing Date | March 18, 2011 |