| For additional information: | ||
| Rick Green | ||
| President & CEO | ||
| Kerby E. Crowell | ||
| EVP & CFO | ||
For Immediate Release | (405) 372-2230 |
Southwest Bancorp Reports Earnings
July 21, 2008, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income of $4.2 million, or $0.28 per diluted share for the second quarter 2008, compared to $6.8 million, or $0.47 per diluted share for the second quarter of 2007. Net income for the six months ended June 30, 2008 was $9.4 million, or $0.64 per diluted share, compared to $11.3 million, or $0.77 per diluted share, for the prior year. At June 30, 2008, total assets were $2.8 billion.
Rick Green, President and Chief Executive Officer, stated, “Our strategic vision includes growth from existing and additional offices in Oklahoma and in carefully selected markets in Texas and other states with emphasis on healthcare and health professionals, businesses and their managers and owners, commercial and commercial real estate borrowers, careful expansion of our community banking operations, and increases in stable funding sources at reasonable cost.
“Our strategy continued to produce loan growth through the second quarter. Our portfolio loans grew $236.3 million, up 11%, from year-end 2007, led by increases in healthcare and other commercial real estate lending and commercial lending in Oklahoma and Texas. Texas portfolio loans grew $97.8 million, or 13%, and Oklahoma portfolio loans grew $89.9 million, or 10%, from year-end 2007. Construction loans decreased by $58.2 million, or 8%, from year-end 2007.”
As shown below, the positive earnings effect of our loan growth continued to be offset by the significant margin squeeze that began last year. For the first six months of 2008, the net interest margin of 3.41% was down 94 basis points from the first six months of 2007. As a result, net interest income declined $1.2 million, or 3%.
| Net Effects of Growth and Margin Squeeze: | ||||||||||||
| First Half 2008 vs. First Half 2007 | ||||||||||||
| Change in Net Interest Income Due to Changes in: | ||||||||||||
| (Dollars in thousands) | Volume | Rate | Total | |||||||||
| Total interest income | $ | 17,872 | $ | (20,548 | ) | $ | (2,676 | ) | ||||
| Total interest expense | 9,260 | (10,698 | ) | (1,438 | ) | |||||||
| Net interest income | $ | 8,612 | $ | (9,850 | ) | $ | (1,238 | ) | ||||
A portion of our net loan growth was the result of a reduction in the customary levels of early payoffs of commercial real estate and commercial loans during the first quarter, which we believe reflected a decrease in competition for refinancings from conduits and other non-depository lenders, and, as anticipated, unscheduled payoffs returned to more traditional levels during the second quarter. We expect unscheduled payoffs to remain closer to the traditional levels for the remainder of the year. We increased our provision for loan losses by $1.4 million, or 37%, during the first six months of 2008 compared to the first six months of 2007, which, along with the effects of lower net charge offs this year to date, produced an increase in the allowance for loan losses of $1.8 million, or 6%, from year-end 2007.
The validity of our strategic decision not to rely on any significant amounts of residential mortgages and not to make subprime loans was reinforced by recent market events. Subprime lending has never been a part of our strategy, one to four family mortgages are less than 5% of our portfolio, and one to four family residential construction loans are less than 4% of our portfolio.
| NASDAQ: OKSB | ||
Southwest Bancorp Reports Earnings |
Capital Raising
Earlier this year, we determined that raising additional long-term capital was in the best interests of our shareholders. We decided to do so by issuing securities other than common stock, in view of the market conditions for financial stocks. Accordingly, in early July, we sold $34.5 million in trust preferred securities in a public offering. Proceeds from the sale will be used to increase our regulatory capital, to fund our loan growth, and for other corporate purposes.
Please see the following discussion and financial tables and the disclosures under the heading “Forward-Looking Statements” on page 3.
Financial Overview
Condition:Total assets were $2.8 billion at June 30, 2008, an increase of 8% from $2.6 billion at December 31, 2007. At June 30, 2008 total loans were $2.4 billion, versus $2.2 billion at December 31, 2007. Non-performing assets to total assets were 1.25% at June 30, 2008 compared to 1.17% at June 30, 2007 and 1.26% at December 31, 2007. Of total non-performing assets, 35.9% are commercial loans, 31.0% are commercial real estate loans, 21.8% are real estate construction loans, 7.3% is other real estate owned, 3.2% are residential real estate mortgages, and other consumer loans are less than 1%. The allowance for loan losses as a percentage of portfolio loans was 1.32% at June 30, 2008, versus 1.59% at June 30, 2007 and 1.38% at December 31, 2007.
Total deposits were $2.2 billion at June 30, 2008, up $152.4 million from December 31, 2007. On June 30, 2008, Southwest exceeded all applicable regulatory capital requirements and each of its banking subsidiaries met the criteria for regulatory classification as “well-capitalized”. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank or thrift regulators.
Year-to-date Results:Net interest income totaled $44.1 million for the first six months of 2008, compared to $45.4 million for the first six months of 2007. Year-to-date net interest margin was 3.41% for 2008 compared to 4.35% in 2007. The decrease in net interest income and net interest margin is the result of Southwest’s interest rate sensitivity position and the margin squeeze produced by governmental actions and market conditions. This margin squeeze offset significant positive effects on net interest income from our continued loan growth. Yields on earning assets decreased by 179 basis points over the prior year while our cost of funds decreased by 113 basis points.
The provision for loan losses for the first six months of 2008 was $5.4 million, compared to $4.0 million for the first six months of 2007. Net charge offs totaled $3.7 million, or .31% (annualized) of portfolio loans, year-to-date as of June 30, 2008 versus net charge offs of $3.2 million, or .37% (annualized) of portfolio loans for the same period in the prior year.
For the first six months of 2008, noninterest income totaled $8.6 million, compared to $8.7 million for 2007. The slight decrease in noninterest income from 2007 was mainly the result of a $565,000 decrease in gain on sale of loans and a $223,000 decrease in the gain on sale of investment securities, offset in part by a $728,000 increase in service charges.
For the first six months of 2008, noninterest expense was $32.2 million versus $31.6 million in 2007. The increase from 2007 in noninterest expense consists mainly of a $1.6 million increase in personnel expense, a $711,000 increase in FDIC and other insurance, a $317,000 increase in other real estate, and a $269,000 increase in occupancy expense offset in part by a $2.4 million decrease in general and administrative expenses, which reflects last year’s $2.5 million ATM-related write-off.
The efficiency ratio was 60.95% for the first six months of 2008, up from 58.49% in 2007. The year over year increase in the efficiency ratio was due to the combined effect of the increase in Southwest’s operating expenses, without commensurate increase in net interest income which was constrained by a lower net interest margin.
Second Quarter Results:Net interest income totaled $22.3 million for the second quarter of 2008, compared to $22.6 million for the second quarter of 2007. Net interest margin was 3.38% for the second quarter of 2008, 4.36% for the second quarter of 2007, and 3.45% for the first quarter of 2008. Yield on earning assets decreased by 214 basis points from the second quarter 2007, while rates paid on interest bearing liabilities decreased by only 152 basis points.
The provision for loan losses totaled $3.2 million for the second quarter of 2008, compared to $2.1 million for the second quarter of 2007. Net charge offs totaled $1.8 million, or 0.30% (annualized) of portfolio loans at June 30, 2008, compared to $1.8 million, or 0.40% (annualized) of portfolio loans at June 30, 2007.
2
| NASDAQ: OKSB | ||
Southwest Bancorp Reports Earnings |
Noninterest income totaled $4.0 million for the second quarter of 2008, compared to $5.4 million for the same quarter of 2007. The decrease in noninterest income from 2007 was mainly the result of a $1.9 million decrease in gain on investment securities, due to the $1.9 million pre-tax gain on the sale of an investment that occurred in the second quarter of 2007, offset in part by increases in service charges and fee income of $506,000.
Noninterest expense increased $1.5 million from the second quarter 2007 to the second quarter of 2008 to $16.3 million. The increase consists of a $498,000 increase in salaries and employee benefits, a $381,000 increase in FDIC and other insurance, a $238,000 increase in other real estate expense, a $214,000 increase in occupancy expense, and a $193,000 increase in general and administrative expenses, which includes the provision for unfunded loan commitments.
The efficiency ratio for the second quarter of 2008 increased to 62.23%, from 52.82% for the second quarter of 2007.
Certain Legal Matters:As previously disclosed, in December 2006, an armored transportation company failed to deliver to Stillwater National Bank and Trust (“Stillwater National”) cash due to it from certain ATMs owned by one of its subsidiaries, Cash Source, Inc. (“CSI”). In the first quarter of 2007, Southwest recorded a write-off of the $2.5 million receivable. The financial statements also reflect related legal expenses incurred by Southwest of $193,000 during the first six months of 2008 and approximately $785,000 during the year 2007 of which $500,000 was incurred in the first six months of 2007. Southwest filed its proof of loss with the insurer on August 6, 2007, which the insurer denied in April 2008. Stillwater National and CSI are considering their response to the insurer’s denial.
Stillwater National and other Visa USA member banks are obligated to share in costs resulting from litigation against Visa USA, including the costs of the November 9, 2007, settlement of an antitrust lawsuit brought by American Express and potential costs of certain other pending litigation. In the fourth quarter of 2007, Southwest recorded approximately $713,000 as its estimated share of the settlement and other pending litigation expenses relating to these obligations. In March 2008, VISA completed an initial public offering. This transaction allowed VISA to place part of the cash proceeds into an escrow which will be utilized to pay litigation and settlement expenses. Southwest’s portion of this escrow is approximately $566,000 which is reflected in the first quarter 2008 financial statements as a reduction to general and administrative expense and the related payable established in the fourth quarter 2007. These amounts are an estimate and further adjustments may be required.
Southwest Bancorp and Subsidiaries
Southwest Bancorp is the financial holding company for Stillwater National, Bank of Kansas (“SNB Kansas”), SNB Bank of Wichita (“SNB Wichita”), Healthcare Strategic Support, Inc., and Business Consulting Group, Inc. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit, and investment services, and specialized cash management, consulting, and other financial services from offices in Oklahoma City, Stillwater, Tulsa, and Chickasha, Oklahoma; Austin, Dallas, Houston and San Antonio, Texas; and Hutchinson, Kansas City, and Wichita, Kansas, and on the Internet, throughSNB DirectBanker®.
Southwest focuses on converting its strategic vision into long-term shareholder value. Our vision includes an established niche banking model focused on healthcare and commercial real estate financial services in Texas, Oklahoma, and Kansas and a community banking model focused on more traditional banking operations in those states. Southwest’s strategic growth goals include growth from existing and additional offices in carefully selected markets in Texas and other states with concentrations of healthcare and health professionals, businesses, and their managers and owners, and commercial and commercial real estate borrowers, and careful expansion of community banking operations.
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.
Forward-Looking Statements
This Press Release includes forward-looking statements, such as: statements of Southwest’s goals, intentions, and expectations; estimates of risks and of future costs and benefits; assessments of the amount and timing of loan growth, performing and problem loan payoffs and loan losses; off-balance sheet risk and market risk; and statements of Southwest’s ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon: future interest rates, market behavior, the effects on general
3
| NASDAQ: OKSB | ||
Southwest Bancorp Reports Earnings |
economic conditions in our markets of recent subprime and other consumer lending problems, and other economic conditions; future laws and regulations; and a variety of other matters. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest’s past growth and performance do not necessarily indicate its future results.
4
| NASDAQ: OKSB | ||
Southwest Bancorp Reports Earnings |
Financial Tables
| Financial Highlights | Table 1 | |||
| Consolidated Statements of Financial Condition | Table 2 | |||
| Consolidated Statements of Operations | Table 3 | |||
| Average Balances, Yields, and Rates-Quarterly | Table 4 | |||
| Average Balances, Yields, and Rates-Year-to-date | Table 5 | |||
| Summary Financial Data by Quarter-2008 and 2007 | Table 6 | |||
| Supplemental Analytical Data by Quarter-2008 and 2007 | Table 7 | |||
5
| SOUTHWEST BANCORP, INC. UNAUDITED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share) | Table 1 |
| Second Quarter | First Quarter | |||||||||||||||||||
| % | % | |||||||||||||||||||
| QUARTERLY HIGHLIGHTS | 2008 | 2007 | Change | 2008 | Change | |||||||||||||||
Operations | ||||||||||||||||||||
| Net interest income | $ | 22,284 | $ | 22,612 | (1 | )% | $ | 21,833 | 2 | % | ||||||||||
| Provision for loan losses | 3,190 | 2,107 | 51 | 2,236 | 43 | |||||||||||||||
| Noninterest income | 3,959 | 5,425 | (27 | ) | 4,688 | (16 | ) | |||||||||||||
| Noninterest expense | 16,332 | 14,808 | 10 | 15,830 | 3 | |||||||||||||||
| Income before taxes | 6,721 | 11,122 | (40 | ) | 8,455 | (21 | ) | |||||||||||||
| Taxes on income | 2,559 | 4,281 | (40 | ) | 3,247 | (21 | ) | |||||||||||||
| Net income | 4,162 | 6,841 | (39 | ) | 5,208 | (20 | ) | |||||||||||||
| Diluted earnings per share | 0.28 | 0.47 | (40 | ) | 0.36 | (22 | ) | |||||||||||||
Balance Sheet | ||||||||||||||||||||
| Total assets | 2,773,013 | 2,196,005 | 26 | 2,670,580 | 4 | |||||||||||||||
| Loans held for sale | 62,892 | 73,011 | (14 | ) | 66,364 | (5 | ) | |||||||||||||
| Portfolio loans | 2,381,893 | 1,769,528 | 35 | 2,287,606 | 4 | |||||||||||||||
| Total deposits | 2,211,001 | 1,823,806 | 21 | 2,094,927 | 6 | |||||||||||||||
| Total shareholders’ equity | 224,949 | 208,185 | 8 | 224,155 | — | |||||||||||||||
| Book value per share | 15.49 | 14.53 | 7 | 15.43 | — | |||||||||||||||
Key Ratios | ||||||||||||||||||||
| Net interest margin | 3.38 | % | 4.36 | % | 3.45 | % | ||||||||||||||
| Efficiency ratio (GAAP-based) | 62.23 | 52.82 | 59.69 | |||||||||||||||||
| Nonperforming loans to portfolio loans | 1.35 | 1.37 | 1.27 | |||||||||||||||||
| Shareholders’ equity to total assets | 8.11 | 9.48 | 8.39 | |||||||||||||||||
| Return on average assets | 0.62 | 1.28 | 0.80 | |||||||||||||||||
| Return on average equity | 7.38 | 13.26 | 9.43 | |||||||||||||||||
| Six Months | ||||||||||||
| % | ||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2008 | 2007 | Change | |||||||||
Operations | ||||||||||||
| Net interest income | $ | 44,117 | $ | 45,355 | (3 | )% | ||||||
| Provision for loan losses | 5,426 | 3,968 | 37 | |||||||||
| Noninterest income | 8,647 | 8,736 | (1 | ) | ||||||||
| Noninterest expense | 32,162 | 31,639 | 2 | |||||||||
| Income before taxes | 15,176 | 18,484 | (18 | ) | ||||||||
| Taxes on income | 5,806 | 7,143 | (19 | ) | ||||||||
| Net income | 9,370 | 11,341 | (17 | ) | ||||||||
| Diluted earnings per share | 0.64 | 0.77 | (17 | ) | ||||||||
Balance Sheet | ||||||||||||
| Total assets | 2,773,013 | 2,196,005 | 26 | |||||||||
| Loans held for sale | 62,892 | 73,011 | (14 | ) | ||||||||
| Portfolio loans | 2,381,893 | 1,769,528 | 35 | |||||||||
| Total deposits | 2,211,001 | 1,823,806 | 21 | |||||||||
| Total shareholders’ equity | 224,949 | 208,185 | 8 | |||||||||
| Book value per share | 15.49 | 14.53 | 7 | |||||||||
Key Ratios | ||||||||||||
| Net interest margin | 3.41 | % | 4.35 | % | ||||||||
| Efficiency ratio (GAAP-based) | 60.95 | 58.49 | ||||||||||
| Nonperforming loans to portfolio loans | 1.35 | 1.37 | ||||||||||
| Shareholders’ equity to total assets | 8.11 | 9.48 | ||||||||||
| Return on average assets | 0.71 | 1.05 | ||||||||||
| Return on average equity | 8.39 | 11.19 | ||||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||
| Please see accompanying tables for additional financial information. | ||
| SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share) | Table 2 |
| June 30, | December 31, | June 30, | ||||||||||
| 2008 | 2007 | 2007 | ||||||||||
Assets | ||||||||||||
| Cash and due from banks | $ | 51,462 | $ | 45,678 | $ | 34,754 | ||||||
| Investment securities: | ||||||||||||
| Held to maturity. Fair value: $8,282 $5,838 $5,260 | 8,340 | 5,838 | 5,333 | |||||||||
| Available for sale. Amortized cost: $215,940 $238,100 $262,879 | 213,859 | 238,751 | 261,375 | |||||||||
| Federal Reserve and FHLB Stock, at cost | 13,327 | 13,116 | 12,719 | |||||||||
| Loans held for sale | 62,892 | 66,275 | 73,011 | |||||||||
| Loans receivable | 2,381,893 | 2,145,557 | 1,769,528 | |||||||||
| Less: Allowance for loan losses | (31,341 | ) | (29,584 | ) | (28,054 | ) | ||||||
| Net loans receivable | 2,350,552 | 2,115,973 | 1,741,474 | |||||||||
| Accrued interest receivable | 12,624 | 23,117 | 19,871 | |||||||||
| Premises and equipment, net | 23,607 | 24,323 | 21,889 | |||||||||
| Other real estate owned | 2,523 | 2,679 | 1,508 | |||||||||
| Goodwill | 7,071 | 7,064 | 1,213 | |||||||||
| Other intangible assets, net | 4,157 | 4,580 | 2,926 | |||||||||
| Other assets | 22,599 | 16,904 | 19,932 | |||||||||
| Total assets | $ | 2,773,013 | $ | 2,564,298 | $ | 2,196,005 | ||||||
Liabilities and shareholders’ equity | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing demand | $ | 299,699 | $ | 257,067 | $ | 248,285 | ||||||
| Interest-bearing demand | 81,415 | 63,323 | 63,758 | |||||||||
| Money market accounts | 548,099 | 541,950 | 487,096 | |||||||||
| Savings accounts | 13,809 | 13,032 | 11,017 | |||||||||
| Time deposits of $100,000 or more | 740,174 | 690,985 | 571,584 | |||||||||
| Other time deposits | 527,805 | 492,222 | 442,066 | |||||||||
| Total deposits | 2,211,001 | 2,058,579 | 1,823,806 | |||||||||
| Accrued interest payable | 9,680 | 11,441 | 10,424 | |||||||||
| Income tax payable | 3,924 | 1,766 | 3,066 | |||||||||
| Other liabilities | 11,452 | 10,154 | 8,570 | |||||||||
| Other borrowings | 265,614 | 218,356 | 95,561 | |||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | |||||||||
| Total liabilities | 2,548,064 | 2,346,689 | 1,987,820 | |||||||||
Shareholders’ equity | ||||||||||||
| Common stock — $1 par value; 20,000,000 shares authorized; 14,658,042 shares issued | 14,658 | 14,658 | 14,658 | |||||||||
| Paid in capital | 45,818 | 46,478 | 46,329 | |||||||||
| Retained earnings | 168,099 | 161,482 | 154,089 | |||||||||
| Accumulated other comprehensive income (loss) | (1,256 | ) | 408 | (957 | ) | |||||||
| Treasury stock, at cost, 131,566 300,833 329,570 shares | (2,370 | ) | (5,417 | ) | (5,934 | ) | ||||||
| Total shareholders’ equity | 224,949 | 217,609 | 208,185 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,773,013 | $ | 2,564,298 | $ | 2,196,005 | ||||||
| SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except per share) | Table 3 |
| For the three months | For the six months | |||||||||||||||
| ended June 30, | ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest income | ||||||||||||||||
| Loans | $ | 37,485 | $ | 39,578 | $ | 78,095 | $ | 79,864 | ||||||||
| Investment securities | 2,447 | 2,876 | 4,809 | 5,584 | ||||||||||||
| Other interest-earning assets | 20 | 115 | 48 | 180 | ||||||||||||
| Total interest income | 39,952 | 42,569 | 82,952 | 85,628 | ||||||||||||
Interest expense | ||||||||||||||||
| Interest-bearing deposits | 15,107 | 17,893 | 33,361 | 35,116 | ||||||||||||
| Other borrowings | 1,887 | 1,089 | 3,916 | 3,220 | ||||||||||||
| Subordinated debentures | 674 | 975 | 1,558 | 1,937 | ||||||||||||
| Total interest expense | 17,668 | 19,957 | 38,835 | 40,273 | ||||||||||||
| Net interest income | 22,284 | 22,612 | 44,117 | 45,355 | ||||||||||||
| Provision for loan losses | 3,190 | 2,107 | 5,426 | 3,968 | ||||||||||||
| Net interest income after provision for loan losses | 19,094 | 20,505 | 38,691 | 41,387 | ||||||||||||
Noninterest income | ||||||||||||||||
| Service charges and fees | 2,812 | 2,306 | 5,269 | 4,541 | ||||||||||||
| Gain on sales of loans | 603 | 800 | 1,443 | 2,008 | ||||||||||||
| Gain on investment securities | 3 | 1,919 | 1,248 | 1,471 | ||||||||||||
| Other noninterest income | 541 | 400 | 687 | 716 | ||||||||||||
| Total noninterest income | 3,959 | 5,425 | 8,647 | 8,736 | ||||||||||||
Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 8,856 | 8,358 | 18,078 | 16,483 | ||||||||||||
| Occupancy | 2,602 | 2,388 | 5,060 | 4,791 | ||||||||||||
| FDIC and other insurance | 521 | 140 | 974 | 263 | ||||||||||||
| Other real estate, net | 197 | (41 | ) | 207 | (110 | ) | ||||||||||
| General and administrative | 4,156 | 3,963 | 7,843 | 10,212 | ||||||||||||
| Total noninterest expenses | 16,332 | �� | 14,808 | 32,162 | 31,639 | |||||||||||
| Income before taxes | 6,721 | 11,122 | 15,176 | 18,484 | ||||||||||||
| Taxes on income | 2,559 | 4,281 | 5,806 | 7,143 | ||||||||||||
| Net income | $ | 4,162 | $ | 6,841 | $ | 9,370 | $ | 11,341 | ||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.48 | $ | 0.65 | $ | 0.79 | ||||||||
| Diluted earnings per common share | 0.28 | 0.47 | 0.64 | 0.77 | ||||||||||||
| Cash dividends declared per share | 0.0950 | 0.0925 | 0.1900 | 0.1850 | ||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | |
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | ||
| (Dollars in thousands) |
| For the three months ended June 30, | ||||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Loans | $ | 2,414,012 | $ | 37,485 | 6.25 | % | $ | 1,795,028 | $ | 39,578 | 8.84 | % | ||||||||||||
| Investment securities | 234,198 | 2,447 | 4.20 | 278,003 | 2,876 | 4.15 | ||||||||||||||||||
| Other interest-earning assets | 3,406 | 20 | 2.36 | 9,354 | 115 | 4.93 | ||||||||||||||||||
| Total interest-earning assets | 2,651,616 | 39,952 | 6.06 | 2,082,385 | 42,569 | 8.20 | ||||||||||||||||||
| Other assets | 65,288 | 65,221 | ||||||||||||||||||||||
| Total assets | $ | 2,716,904 | $ | 2,147,606 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 79,273 | $ | 166 | 0.84 | % | $ | 63,947 | $ | 98 | 0.61 | % | ||||||||||||
| Money market accounts | 548,020 | 3,062 | 2.25 | 423,484 | 4,743 | 4.49 | ||||||||||||||||||
| Savings accounts | 13,586 | 19 | 0.56 | 10,993 | 21 | 0.77 | ||||||||||||||||||
| Time deposits | 1,230,327 | 11,860 | 3.88 | 1,045,334 | 13,031 | 5.00 | ||||||||||||||||||
| Total interest-bearing deposits | 1,871,206 | 15,107 | 3.25 | 1,543,758 | 17,893 | 4.65 | ||||||||||||||||||
| Other borrowings | 284,828 | 1,887 | 2.66 | 95,143 | 1,089 | 4.59 | ||||||||||||||||||
| Subordinated debentures | 46,393 | 674 | 5.81 | 46,393 | 975 | 8.41 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,202,427 | 17,668 | 3.23 | 1,685,294 | 19,957 | 4.75 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 267,026 | 236,835 | ||||||||||||||||||||||
| Other liabilities | 20,687 | 18,483 | ||||||||||||||||||||||
| Shareholders’ equity | 226,764 | 206,994 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,716,904 | $ | 2,147,606 | ||||||||||||||||||||
| Net interest income and spread | $ | 22,284 | 2.83 | % | $ | 22,612 | 3.45 | % | ||||||||||||||||
| Net interest margin (1) | 3.38 | % | 4.36 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.40 | % | 123.56 | % | ||||||||||||||||||||
| (1) | Net interest margin = annualized net interest income / average interest-earning assets |
| SOUTHWEST BANCORP, INC. UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | Table 5 | |
| (Dollars in thousands) |
| For the six months ended June 30, | ||||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Loans | $ | 2,359,489 | $ | 78,095 | 6.66 | % | $ | 1,820,792 | $ | 79,864 | 8.85 | % | ||||||||||||
| Investment securities | 236,071 | 4,809 | 4.10 | 275,780 | 5,584 | 4.08 | ||||||||||||||||||
| Other interest-earning assets | 3,084 | 48 | 3.13 | 7,293 | 180 | 4.98 | ||||||||||||||||||
| Total interest-earning assets | 2,598,644 | 82,952 | 6.42 | 2,103,865 | 85,628 | 8.21 | ||||||||||||||||||
| Other assets | 68,492 | 72,737 | ||||||||||||||||||||||
| Total assets | $ | 2,667,136 | $ | 2,176,602 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 76,003 | $ | 307 | 0.81 | % | $ | 62,215 | $ | 179 | 0.58 | % | ||||||||||||
| Money market accounts | 547,027 | 7,590 | 2.79 | 397,634 | 8,705 | 4.41 | ||||||||||||||||||
| Savings accounts | 13,525 | 41 | 0.61 | 11,049 | 41 | 0.75 | ||||||||||||||||||
| Time deposits | 1,219,554 | 25,423 | 4.19 | 1,061,794 | 26,191 | 4.97 | ||||||||||||||||||
| Total interest-bearing deposits | 1,856,109 | 33,361 | 3.61 | 1,532,692 | 35,116 | 4.62 | ||||||||||||||||||
| Other borrowings | 261,819 | 3,916 | 3.01 | 135,107 | 3,220 | 4.81 | ||||||||||||||||||
| Subordinated debentures | 46,393 | 1,558 | 6.72 | 46,393 | 1,937 | 8.35 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,164,321 | 38,835 | 3.61 | 1,714,192 | 40,273 | 4.74 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 257,133 | 237,679 | ||||||||||||||||||||||
| Other liabilities | 21,181 | 20,271 | ||||||||||||||||||||||
| Shareholders’ equity | 224,501 | 204,460 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,667,136 | $ | 2,176,602 | ||||||||||||||||||||
| Net interest income and spread | $ | 44,117 | 2.81 | % | $ | 45,355 | 3.47 | % | ||||||||||||||||
| Net interest margin (1) | 3.41 | % | 4.35 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.07 | % | 122.73 | % | ||||||||||||||||||||
| (1) | Net interest margin = annualized net interest income / average interest-earning assets |
| SOUTHWEST BANCORP, INC. UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA (Dollars in thousands except per share) | Table 6 |
| 2008 | 2007 | |||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||
| Loans | $ | 37,485 | $ | 40,610 | $ | 43,549 | $ | 42,346 | $ | 39,578 | $ | 40,286 | ||||||||||||
| Investment securities | 2,447 | 2,362 | 2,742 | 2,846 | 2,876 | 2,708 | ||||||||||||||||||
| Other interest-earning assets | 20 | 28 | 35 | 39 | 115 | 65 | ||||||||||||||||||
| Total interest income | 39,952 | 43,000 | 46,326 | 45,231 | 42,569 | 43,059 | ||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
| Interest bearing demand deposits | 166 | 141 | 94 | 82 | 98 | 81 | ||||||||||||||||||
| Money market accounts | 3,062 | 4,528 | 5,370 | 5,589 | 4,743 | 3,962 | ||||||||||||||||||
| Savings accounts | 19 | 22 | 22 | 24 | 21 | 20 | ||||||||||||||||||
| Time deposits of $100,000 or more | 7,051 | 7,865 | 7,873 | 7,445 | 7,781 | 8,132 | ||||||||||||||||||
| Other time deposits | 4,809 | 5,698 | 5,840 | 5,684 | 5,250 | 5,028 | ||||||||||||||||||
| Total interest-bearing deposits | 15,107 | 18,254 | 19,199 | 18,824 | 17,893 | 17,223 | ||||||||||||||||||
| Other borrowings | 1,887 | 2,029 | 2,620 | 1,715 | 1,089 | 2,131 | ||||||||||||||||||
| Subordinated debentures | 674 | 884 | 971 | 986 | 975 | 962 | ||||||||||||||||||
| Total interest expense | 17,668 | 21,167 | 22,790 | 21,525 | 19,957 | 20,316 | ||||||||||||||||||
| Net interest income | 22,284 | 21,833 | 23,536 | 23,706 | 22,612 | 22,743 | ||||||||||||||||||
| Provision for loan losses | 3,190 | 2,236 | 2,464 | 2,149 | 2,107 | 1,861 | ||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||
| Service charges and fees | 2,812 | 2,457 | 2,831 | 2,548 | 2,306 | 2,235 | ||||||||||||||||||
| Gain on sales of loans | 603 | 840 | 783 | 548 | 800 | 1,208 | ||||||||||||||||||
| Gain (loss) on investment securities | 3 | 1,245 | 5 | 108 | 1,919 | (448 | ) | |||||||||||||||||
| Other noninterest income | 541 | 146 | 452 | 422 | 400 | 316 | ||||||||||||||||||
| Total noninterest income | 3,959 | 4,688 | 4,071 | 3,626 | 5,425 | 3,311 | ||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 8,856 | 9,222 | 9,838 | 8,966 | 8,358 | 8,125 | ||||||||||||||||||
| Occupancy | 2,602 | 2,458 | 2,540 | 2,514 | 2,388 | 2,403 | ||||||||||||||||||
| FDIC and other insurance | 521 | 453 | 225 | 134 | 140 | 123 | ||||||||||||||||||
| Other real estate, net | 197 | 10 | 64 | (12 | ) | (41 | ) | (69 | ) | |||||||||||||||
| Unfunded loan commitment | 15 | 145 | 368 | 675 | 151 | (65 | ) | |||||||||||||||||
| Other general and administrative | 4,141 | 3,542 | 4,638 | 3,885 | 3,812 | 6,314 | ||||||||||||||||||
| Total noninterest expenses | 16,332 | 15,830 | 17,673 | 16,162 | 14,808 | 16,831 | ||||||||||||||||||
| Income before taxes | 6,721 | 8,455 | 7,470 | 9,021 | 11,122 | 7,362 | ||||||||||||||||||
| Taxes on income | 2,559 | 3,247 | 2,949 | 3,505 | 4,281 | 2,862 | ||||||||||||||||||
| Net income | $ | 4,162 | $ | 5,208 | $ | 4,521 | $ | 5,516 | $ | 6,841 | $ | 4,500 | ||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.36 | $ | 0.32 | $ | 0.38 | $ | 0.48 | $ | 0.32 | ||||||||||||
| Diluted earnings per common share | 0.28 | 0.36 | 0.31 | 0.38 | 0.47 | 0.31 | ||||||||||||||||||
| Cash dividends declared per share | 0.0950 | 0.0950 | 0.0925 | 0.0925 | 0.0925 | 0.0925 | ||||||||||||||||||
| Book value per share | 15.49 | 15.43 | 15.16 | 14.92 | 14.53 | 14.14 | ||||||||||||||||||
| Tangible book value per share | 15.00 | 14.95 | 14.66 | 14.45 | 14.44 | 14.05 | ||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic earnings per common share | 14,526,038 | 14,413,686 | 14,353,910 | 14,335,008 | 14,299,111 | 14,263,698 | ||||||||||||||||||
| Diluted | 14,680,262 | 14,608,190 | 14,584,878 | 14,612,732 | 14,644,863 | 14,642,913 | ||||||||||||||||||
OTHER FINANCIAL DATA | ||||||||||||||||||||||||
| Investment securities | $ | 235,526 | $ | 237,156 | $ | 257,705 | $ | 294,615 | $ | 279,427 | $ | 275,499 | ||||||||||||
| Loans held for sale | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | ||||||||||||||||||
| Portfolio loans | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | ||||||||||||||||||
| Total loans | 2,444,785 | 2,353,970 | 2,211,832 | 2,011,640 | 1,842,539 | 1,775,220 | ||||||||||||||||||
| Total assets | 2,773,013 | 2,670,580 | 2,564,298 | 2,386,852 | 2,196,005 | 2,194,179 | ||||||||||||||||||
| Total deposits | 2,211,001 | 2,094,927 | 2,058,579 | 1,912,719 | 1,823,806 | 1,803,181 | ||||||||||||||||||
| Other borrowings | 265,614 | 282,513 | 218,356 | 190,847 | 95,561 | 123,212 | ||||||||||||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | ||||||||||||||||||
| Total shareholders’ equity | 224,949 | 224,155 | 217,609 | 213,838 | 208,185 | 201,777 | ||||||||||||||||||
| Mortgage servicing portfolio | 147,672 | 145,028 | 141,680 | 136,294 | 134,444 | 134,259 | ||||||||||||||||||
Continued | ||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA (Dollars in thousands except per share) | Table 6 Continued |
| 2008 | 2007 | |||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||||||
| Return on average assets (annualized) | 0.62 | % | 0.80 | % | 0.72 | % | 0.96 | % | 1.28 | % | 0.83 | % | ||||||||||||
| Return on average equity (annualized) | 7.38 | 9.43 | 8.24 | 10.29 | 13.26 | 9.04 | ||||||||||||||||||
| Return on average tangible equity (annualized) | 7.86 | 9.94 | 8.86 | 10.88 | 13.70 | 9.23 | ||||||||||||||||||
| Net interest margin | 3.38 | 3.45 | 3.89 | 4.25 | 4.36 | 4.34 | ||||||||||||||||||
| Dividends declared to net income | 33.16 | 26.37 | 29.37 | 24.04 | 19.37 | 29.32 | ||||||||||||||||||
| Effective tax rate | 38.07 | 38.40 | 39.48 | 38.85 | 38.49 | 38.88 | ||||||||||||||||||
| Efficiency ratio | 62.23 | 59.69 | 64.02 | 59.13 | 52.82 | 64.60 | ||||||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||||||
| Nonperforming assets to portfolio loans and other real estate owned | 1.45 | % | 1.41 | % | 1.50 | % | 1.59 | % | 1.45 | % | 1.88 | % | ||||||||||||
| Nonperforming loans to portfolio loans | 1.35 | 1.27 | 1.38 | 1.50 | 1.37 | 1.77 | ||||||||||||||||||
| Net loan charge-offs to average total loans | 0.30 | 0.33 | 0.22 | 0.39 | 0.40 | 0.31 | ||||||||||||||||||
| Allowance for loan losses to total loans | 1.28 | 1.27 | 1.34 | 1.41 | 1.52 | 1.56 | ||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.32 | 1.31 | 1.38 | 1.46 | 1.59 | 1.66 | ||||||||||||||||||
| Allowance for loan losses to nonperforming loans | 97.63 | 103.49 | 100.04 | 97.32 | 115.65 | 94.18 | ||||||||||||||||||
CAPITAL RATIOS* | ||||||||||||||||||||||||
| Average total shareholders’ equity to average assets | 8.42 | % | 8.49 | % | 9.21 | % | 9.36 | % | 9.39 | % | 9.15 | % | ||||||||||||
| Leverage ratio | 9.66 | 9.91 | 10.23 | 10.92 | 11.73 | 11.12 | ||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 9.40 | 9.47 | 9.71 | 10.49 | 11.84 | 12.44 | ||||||||||||||||||
| Total capital to risk-weighted assets | 10.65 | 10.69 | 10.97 | 11.76 | 13.13 | 13.68 | ||||||||||||||||||
SEGMENT LOANS** | ||||||||||||||||||||||||
| Oklahoma banking | $ | 965,952 | $ | 943,331 | $ | 876,085 | $ | 844,859 | $ | 804,906 | $ | 766,990 | ||||||||||||
| Texas banking | 857,160 | 797,700 | 759,389 | 644,749 | 567,236 | 507,384 | ||||||||||||||||||
| Kansas banking | 277,887 | 287,339 | 282,846 | 251,131 | 198,228 | 206,405 | ||||||||||||||||||
| Other states banking | 280,894 | 259,236 | 227,237 | 192,484 | 199,158 | 186,416 | ||||||||||||||||||
| Subtotal | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | ||||||||||||||||||
| Secondary market | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | ||||||||||||||||||
| Total loans | $ | 2,444,785 | $ | 2,353,970 | $ | 2,211,832 | $ | 2,011,640 | $ | 1,842,539 | $ | 1,775,220 | ||||||||||||
SEGMENT NET INCOME** | ||||||||||||||||||||||||
| Oklahoma banking | $ | 2,923 | $ | 2,503 | $ | 3,080 | $ | 3,759 | $ | 4,820 | $ | 4,278 | ||||||||||||
| Texas banking | 1,777 | 2,406 | 1,701 | 1,638 | 1,568 | 1,643 | ||||||||||||||||||
| Kansas banking | (40 | ) | 458 | 82 | 243 | 326 | 208 | |||||||||||||||||
| Other states banking | 1,028 | 969 | 225 | 768 | 930 | 240 | ||||||||||||||||||
| Subtotal | 5,688 | 6,336 | 5,088 | 6,408 | 7,644 | 6,369 | ||||||||||||||||||
| Secondary market | 40 | (174 | ) | 114 | 33 | 197 | 753 | |||||||||||||||||
| Other operations | (1,566 | ) | (954 | ) | (681 | ) | (925 | ) | (1,000 | ) | (2,622 | ) | ||||||||||||
| Total net income | $ | 4,162 | $ | 5,208 | $ | 4,521 | $ | 5,516 | $ | 6,841 | $ | 4,500 | ||||||||||||
OFFICES AND EMPLOYEES | ||||||||||||||||||||||||
| FTE Employees | 463 | 467 | 489 | 484 | 457 | 443 | ||||||||||||||||||
| ATM’s | 40 | 40 | 43 | 43 | 38 | 39 | ||||||||||||||||||
| Branches | 17 | 17 | 17 | 17 | 15 | 15 | ||||||||||||||||||
| Loan production offices | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||
| Assets per employee | $ | 5,989 | $ | 5,719 | $ | 5,244 | $ | 4,932 | $ | 4,805 | $ | 4,953 | ||||||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||
| * | Regulatory capital ratios do not reflect the effects of the issuance of trust preferred securities in July 2008. | |
| ** | In first quarter 2008, Southwest changed its segment disclosures to report Texas, Kansas and Other states separately. Portfolio loans are allocated based upon the state of the borrower, or the location of the real estate in the case of real estate loans. Loans included in the “Other states banking” segment are portfolio loans attributable to states other than Oklahoma, Texas, or Kansas, and primarily consist of healthcare and commercial real estate credits. These out of state loans are administered by offices in Oklahoma, Texas, or Kansas. | |
| SOUTHWEST BANCORP, INC. UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | Table 7 | |
| (Dollars in thousands except per share) |
| 2008 | 2007 | |||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||
LOAN COMPOSITION | ||||||||||||||||||||||||
| Real estate mortgage: | ||||||||||||||||||||||||
| Commercial | $ | 991,679 | $ | 846,757 | $ | 750,047 | $ | 608,409 | $ | 564,813 | $ | 582,440 | ||||||||||||
| One-to-four family residential | 118,056 | 110,938 | 111,085 | 112,407 | 90,916 | 83,312 | ||||||||||||||||||
| Real estate construction | 666,756 | 744,090 | 724,929 | 659,214 | 617,993 | 517,199 | ||||||||||||||||||
| Commercial | 566,830 | 544,183 | 521,501 | 517,658 | 465,588 | 457,838 | ||||||||||||||||||
| Installment and consumer: | ||||||||||||||||||||||||
| Guaranteed student loans | 57,413 | 63,706 | 61,555 | 73,810 | 68,117 | 101,905 | ||||||||||||||||||
| Other | 44,051 | 44,296 | 42,715 | 40,142 | 35,112 | 32,526 | ||||||||||||||||||
| Total loans, including held for sale | 2,444,785 | 2,353,970 | 2,211,832 | 2,011,640 | 1,842,539 | 1,775,220 | ||||||||||||||||||
| Less allowance for loan losses | (31,341 | ) | (29,950 | ) | (29,584 | ) | (28,314 | ) | (28,054 | ) | (27,728 | ) | ||||||||||||
| Total loans, net | $ | 2,413,444 | $ | 2,324,020 | $ | 2,182,248 | $ | 1,983,326 | $ | 1,814,485 | $ | 1,747,492 | ||||||||||||
| By statement of condition category: | ||||||||||||||||||||||||
| Loans held for sale: | ||||||||||||||||||||||||
| Student loans | $ | 57,413 | $ | 63,706 | $ | 61,555 | $ | 73,810 | $ | 68,117 | $ | 101,905 | ||||||||||||
| One-to-four family residential | 4,283 | 1,417 | 3,442 | 3,293 | 3,382 | 4,113 | ||||||||||||||||||
| Other | 1,196 | 1,241 | 1,278 | 1,314 | 1,512 | 2,007 | ||||||||||||||||||
| Total loans held for sale | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | ||||||||||||||||||
| Portfolio loans | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | ||||||||||||||||||
| Total loans before allowance | $ | 2,444,785 | $ | 2,353,970 | $ | 2,211,832 | $ | 2,011,640 | $ | 1,842,539 | $ | 1,775,220 | ||||||||||||
DEPOSIT COMPOSITION | ||||||||||||||||||||||||
| Non-interest bearing demand | $ | 299,699 | $ | 248,315 | $ | 257,067 | $ | 261,634 | $ | 248,285 | $ | 251,777 | ||||||||||||
| Interest-bearing demand | 81,415 | 71,450 | 63,323 | 63,145 | 63,758 | 63,741 | ||||||||||||||||||
| Money market accounts | 548,099 | 553,850 | 541,950 | 505,192 | 487,096 | 394,668 | ||||||||||||||||||
| Savings accounts | 13,809 | 13,808 | 13,032 | 14,830 | 11,017 | 11,196 | ||||||||||||||||||
| Time deposits of $100,000 or more | 740,174 | 690,421 | 690,985 | 580,850 | 571,584 | 646,668 | ||||||||||||||||||
| Other time deposits | 527,805 | 517,083 | 492,222 | 487,068 | 442,066 | 435,131 | ||||||||||||||||||
| Total deposits | $ | 2,211,001 | $ | 2,094,927 | $ | 2,058,579 | $ | 1,912,719 | $ | 1,823,806 | $ | 1,803,181 | ||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||||||
| Nonaccrual loans | $ | 30,861 | $ | 26,134 | $ | 19,534 | $ | 26,291 | $ | 22,633 | $ | 26,978 | ||||||||||||
| 90 days past due and accruing | 1,242 | 2,807 | 10,037 | 2,803 | 1,625 | 2,462 | ||||||||||||||||||
| Total nonperforming loans | 32,103 | 28,941 | 29,571 | 29,094 | 24,258 | 29,440 | ||||||||||||||||||
| Other real estate owned | 2,523 | 3,328 | 2,679 | 1,654 | 1,508 | 1,869 | ||||||||||||||||||
| Total nonperforming assets | $ | 34,626 | $ | 32,269 | $ | 32,250 | $ | 30,748 | $ | 25,766 | $ | 31,309 | ||||||||||||
| Potential nonperforming loans | $ | 71,070 | $ | 69,588 | $ | 61,633 | $ | 70,389 | $ | 69,595 | $ | 52,335 | ||||||||||||
ALLOWANCE ACTIVITY | ||||||||||||||||||||||||
| Balance, beginning of period | $ | 29,950 | $ | 29,584 | $ | 28,314 | $ | 28,054 | $ | 27,728 | $ | 27,293 | ||||||||||||
| Charge offs | 1,892 | 2,044 | 1,290 | 2,105 | 1,875 | 1,728 | ||||||||||||||||||
| Recoveries | 93 | 174 | 96 | 216 | 94 | 302 | ||||||||||||||||||
| Net charge offs | 1,799 | 1,870 | 1,194 | 1,889 | 1,781 | 1,426 | ||||||||||||||||||
| Provision for loan losses | 3,190 | 2,236 | 2,464 | 2,149 | 2,107 | 1,861 | ||||||||||||||||||
| Balance, end of period | $ | 31,341 | $ | 29,950 | $ | 29,584 | $ | 28,314 | $ | 28,054 | $ | 27,728 | ||||||||||||
REGULATORY CAPITAL DATA* | ||||||||||||||||||||||||
| Tier I capital | $ | 261,354 | $ | 258,272 | $ | 251,980 | $ | 248,961 | $ | 251,460 | $ | 244,862 | ||||||||||||
| Total capital | 296,166 | 291,638 | 284,730 | 279,031 | 278,799 | 269,513 | ||||||||||||||||||
| Total risk adjusted assets | 2,780,538 | 2,727,853 | 2,595,090 | 2,374,152 | 2,123,862 | 1,967,001 | ||||||||||||||||||
COMMON STOCK | ||||||||||||||||||||||||
| Issued | 14,658,042 | 14,658,042 | 14,658,042 | 14,658,042 | 14,658,042 | 14,658,042 | ||||||||||||||||||
| Less treasury shares | (131,566 | ) | (133,605 | ) | (300,833 | ) | (321,991 | ) | (329,570 | ) | (385,632 | ) | ||||||||||||
| Outstanding shares | 14,526,476 | 14,524,437 | 14,357,209 | 14,336,051 | 14,328,472 | 14,272,410 | ||||||||||||||||||
INTANGIBLE ASSET DATA | ||||||||||||||||||||||||
| Goodwill | $ | 7,071 | $ | 7,071 | $ | 7,064 | $ | 6,742 | $ | 1,213 | $ | 1,213 | ||||||||||||
| Core deposit intangible | 2,792 | 2,893 | 3,053 | 2,879 | 1,466 | 1,531 | ||||||||||||||||||
| Mortgage servicing rights | 1,354 | 1,299 | 1,513 | 1,440 | 1,428 | 1,413 | ||||||||||||||||||
| Nonmortgage servicing rights | 11 | 13 | 14 | 16 | 32 | 37 | ||||||||||||||||||
| Total intangible assets | $ | 11,228 | $ | 11,276 | $ | 11,644 | $ | 11,077 | $ | 4,139 | $ | 4,194 | ||||||||||||
| Intangible amortization expense | $ | 215 | $ | 257 | $ | 159 | $ | 161 | $ | 165 | $ | 162 | ||||||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||
| * | Regulatory capital amounts do not reflect the effects of the issuance of trust preferred securities in July 2008. | |