| For additional information: | ||||
| Rick Green | ||||
| President & CEO | ||||
| Kerby E. Crowell | ||||
| EVP & CFO | ||||
For Immediate Release | (405) 372-2230 | |||
Southwest Bancorp Reports Third Quarter Earnings, Increased Reserves
October 21, 2008, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income of $2.3 million, or $0.16 per diluted share for the third quarter 2008, compared to $5.5 million, or $0.38 per diluted share for the third quarter of 2007. Net income for the nine months ended September 30, 2008 was $11.7 million, or $0.80 per diluted share, compared to $16.9 million, or $1.15 per diluted share, for the prior year. At September 30, 2008, total assets were $2.8 billion compared to $2.6 billion at December 31, 2007.
“We continue to take strategic actions focused on building long-term shareholder value during these uncertain times,” stated Rick Green, President and Chief Executive Officer. “Throughout this year, we have reduced our quarter to quarter growth in portfolio loans, and plan for a year or more of continued slower growth. We have made significant additions to our allowance for loan losses reflecting our assessment of the emerging effects of national economic conditions even in our relatively strong and stable markets in Texas, Oklahoma, and Kansas. We have increased our capital levels through retained earnings and our July sale of $34.5 million in trust preferred securities. We continue to make liquidity and core funding priorities. We are evaluating additional consumer banking branches in our existing or nearby markets. And, we continue to methodically pursue our long-term strategic vision so that Southwest will be well positioned when the economy gets back on track.”
Our portfolio loans at quarter end were $2.4 billion, up $58.2 million, or 2%, from June 30, 2008. Approximately 49% of our total portfolio loans at September 30, 2008, were in our Texas or Kansas segments:
| • | Oklahoma portfolio loans were $962.6 million or 39%, | ||
| • | Texas portfolio loans were $893.0 million, or 37%, | ||
| • | Kansas portfolio loans were $288.3 million, or 12%, and | ||
| • | Other States portfolio loans were $296.2 million, or 12% |
Our strategic vision includes continued emphasis on carefully selected markets in Texas, Oklahoma, and Kansas 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. During the third quarter, we opened a branch in Edmond, Oklahoma to facilitate our core deposit growth.
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 nine months of 2008, the net interest margin of 3.41% was down 90 basis points from the first nine months of 2007. As a result, net interest income declined $1.8 million, or 3% for the first nine months of 2008.
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| Net Effects of Growth and Margin Squeeze: | ||||||||||||
| First Nine Months 2008 vs. First Nine Months 2007 | ||||||||||||
| Change in Net Interest Income Due to Changes in: | ||||||||||||
| (Dollars in thousands) | Volume | Rate | Total | |||||||||
| Total interest income | $ | 26,966 | $ | (33,838 | ) | $ | (6,872 | ) | ||||
| Total interest expense | 13,907 | (19,023 | ) | (5,116 | ) | |||||||
| Net interest income | $ | 13,059 | $ | (14,815 | ) | $ | (1,756 | ) | ||||
While the 2008 third quarter net interest margin decreased 86 basis points from third quarter 2007, the margin remains relatively unchanged from second quarter 2008 at 3.39%.
We increased our provision for loan losses by $6.2 million, or 101%, during the first nine months of 2008 compared to the first nine months of 2007. At September 30, 2008, the allowance for loan losses was $35.8 million, up 21%, from year-end 2007.
We have no Federal National Mortgage Association (“Fannie Mae”) or Federal Home Loan Mortgage Corporation (“Freddie Mac”) equity securities.
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.
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 completed the issuance of $34.5 million in trust preferred securities in a public offering. Proceeds from the sale are being 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 4.
Financial Overview
Condition:Total assets were $2.8 billion at September 30, 2008, an increase of 10% from $2.6 billion at December 31, 2007. At September 30, 2008 total loans were $2.5 billion versus $2.2 billion at December 31, 2007.
The allowance for loan losses as a percentage of portfolio loans was 1.47% at September 30, 2008 versus 1.46% at September 30, 2007 and 1.38% at December 31, 2007. The methodology used to determine the appropriate amount of the allowance for loan losses at a particular time includes consideration of risk factors related to Southwest and to our markets, including regular assessments of national and local economic conditions and trends.
Non-performing assets to total assets were 2.35% at September 30, 2008 compared to 1.29% at September 30, 2007 and 1.26% at December 31, 2007. Of total non-performing assets, 57.8% are real estate construction loans, 19.0% are commercial loans, 18.0% are commercial real estate loans, 4.0% is other real estate owned, and residential real estate mortgages and other consumer loans are less than 1% each. Nonaccrual loans, which comprise the majority of nonperforming assets, were $61.6 million as of September 30, 2008, an increase of $42.0 million or 215% from year end. These loans are carried at their estimated collectible amounts and no longer accrue interest. The increase in nonaccrual loans is primarily due to two lending relationships. Mr. Green said, “Much of our business is commercial real estate lending. As a result, weakness in one or a few large credits can have a significant impact on our nonperforming loan totals. Through the years, however, we have demonstrated the ability to resolve problem construction and commercial real estate loans.” Performing loans considered potential problem loans, which are not included in the past due, nonaccrual, or restructured categories, but for which known information about possible credit problems cause management to be uncertain as to the ability of the borrowers to comply with the present loan repayment terms, amounted to approximately $86.1 million at September 30, 2008, compared to $71.1 million at June 30, 2008 and $61.6 million at year-end 2007. These loans are subject to
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continuing management attention and are considered by management in determining the level of the allowance for loan losses.
Total deposits were $2.2 billion at September 30, 2008, up $140.1 million from December 31, 2007. Core deposits were 66.48% of total deposits or $1.5 billion.
On September 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 $67.3 million for the first nine months of 2008 compared to $69.1 million for the first nine months of 2007. Year-to-date net interest margin was 3.41% for 2008 compared to 4.31% 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 loan growth. Yields on earning assets decreased by 190 basis points from the prior year while our cost of funds decreased by only 129 basis points, resulting in a 61 basis point decline in net interest spread.
The provision for loan losses for the first nine months of 2008 was $12.3 million compared to $6.1 million for the first nine months of 2007. Year-to-date as of September 30, 2008, net charge offs totaled $6.1 million, or 0.33% (annualized) of portfolio loans versus net charge offs of $5.1 million, or 0.35% (annualized) of portfolio loans for the same period in the prior year.
For the first nine months of 2008, noninterest income totaled $12.7 million, compared to $12.4 million for 2007. The slight increase in noninterest income from 2007 was the result of a $1.0 million increase in service charges and fees and a $211,000 increase in other noninterest income, offset by a $512,000 decrease in gain on sale of loans and a $381,000 decrease in the gain on sale of investment securities.
For the first nine months of 2008, noninterest expense was $48.7 million versus $47.8 million in 2007. The increase from 2007 in noninterest expense is the result of a $1.5 million increase in personnel expense, a $1.0 million increase in FDIC and other insurance, a $723,000 increase in occupancy expense, and a $237,000 increase in other real estate expense (net), offset by a $511,000 decrease in the provision for unfunded loan commitments and a $2.1 million decrease in other general and administrative expenses, which reflects last year’s $2.5 million ATM-related write-off.
The efficiency ratio was 60.86% for the first nine months of 2008, up from 58.71% 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.
Third Quarter Results:Net interest income totaled $23.2 million for the third quarter of 2008 compared to $23.7 million for the third quarter of 2007. Net interest margin was 3.39% for the third quarter of 2008, 4.25% for the third quarter of 2007, and 3.38% for the second quarter of 2008. Yield on earning assets decreased by 212 basis points from the third quarter 2007 while rates paid on interest bearing liabilities decreased by only 160 basis points.
The provision for loan losses totaled $6.9 million for the third quarter of 2008 compared to $2.1 million for the third quarter of 2007. Net charge offs totaled $2.4 million, or 0.39% (annualized) of portfolio loans at September 30, 2008, compared to $1.9 million, or 0.39% (annualized) of portfolio loans at September 30, 2007.
Noninterest income totaled $4.1 million for the third quarter of 2008 compared to $3.6 million for the same quarter of 2007. The increase in noninterest income from 2007 was the result of a $301,000 increase in service charges and fee income, a $240,000 increase in other noninterest income, a $53,000 increase in gain on sale of loans, offset by a $158,000 decrease in gain on sale of investment securities.
Noninterest expense increased $371,000 from the third quarter 2007 to the third quarter of 2008 to $16.5 million. The increase consists of a $454,000 increase in occupancy expense, a $350,000 increase in other general and administrative expenses, and a $335,000 increase in FDIC and other insurance, offset by a $585,000 decrease in the provision for unfunded loan commitments, a $103,000 decrease in salaries and employee benefits, and an $80,000 decrease in other real estate expense (net).
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The efficiency ratio for the third quarter of 2008 increased to 60.67% from 59.13% for the third 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 $324,000 during the first nine months of 2008 and approximately $785,000 during the year 2007, of which $720,000 was incurred in the first nine 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 pursuing various options for recovery.
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 was 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 Chickasha, Edmond, Oklahoma City, Stillwater, and Tulsa, 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 prudent 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.
On September 22, 2008, Southwest announced the planned merger of SNB Wichita with SNB Kansas. This merger, which is subject to regulatory approval, is intended to create more convenience for customers and operational efficiencies for Southwest.
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest’s trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.
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 economic conditions in our market of recent subprime and other 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.
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Financial Tables
| Unaudited Financial Highlights | Table 1 | |||
| Unaudited Consolidated Statements of Financial Condition | Table 2 | |||
| Unaudited Consolidated Statements of Operations | Table 3 | |||
| Unaudited Average Balances, Yields, and Rates-Quarterly | Table 4 | |||
| Unaudited Average Balances, Yields, and Rates-Year-to-date | Table 5 | |||
| Unaudited Summary Financial Data by Quarter-2008 and 2007 | Table 6 | |||
| Unaudited 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 |
| Third Quarter | Second Quarter | |||||||||||||||||||
| % | % | |||||||||||||||||||
| QUARTERLY HIGHLIGHTS | 2008 | 2007 | Change | 2008 | Change | |||||||||||||||
Operations | ||||||||||||||||||||
| Net interest income | $ | 23,188 | $ | 23,706 | (2 | )% | $ | 22,284 | 4 | % | ||||||||||
| Provision for loan losses | 6,855 | 2,149 | 219 | 3,190 | 115 | |||||||||||||||
| Noninterest income | 4,062 | 3,626 | 12 | 3,959 | 3 | |||||||||||||||
| Noninterest expense | 16,533 | 16,162 | 2 | 16,332 | 1 | |||||||||||||||
| Income before taxes | 3,862 | 9,021 | (57 | ) | 6,721 | (43 | ) | |||||||||||||
| Taxes on income | 1,556 | 3,505 | (56 | ) | 2,559 | (39 | ) | |||||||||||||
| Net income | 2,306 | 5,516 | (58 | ) | 4,162 | (45 | ) | |||||||||||||
| Diluted earnings per share | 0.16 | 0.38 | (58 | ) | 0.28 | (43 | ) | |||||||||||||
Balance Sheet | ||||||||||||||||||||
| Total assets | 2,832,371 | 2,386,852 | 19 | 2,773,013 | 2 | |||||||||||||||
| Loans held for sale | 72,248 | 78,417 | (8 | ) | 62,892 | 15 | ||||||||||||||
| Portfolio loans | 2,440,091 | 1,933,223 | 26 | 2,381,893 | 2 | |||||||||||||||
| Total deposits | 2,198,719 | 1,912,719 | 15 | 2,211,001 | (1 | ) | ||||||||||||||
| Total shareholders’ equity | 226,123 | 213,838 | 6 | 224,949 | 1 | |||||||||||||||
| Book value per share | 15.56 | 14.92 | 4 | 15.49 | — | |||||||||||||||
Key Ratios | ||||||||||||||||||||
| Net interest margin | 3.39 | % | 4.25 | % | 3.38 | % | ||||||||||||||
| Efficiency ratio (GAAP-based) | 60.67 | 59.13 | 62.23 | |||||||||||||||||
| Total capital to risk-weighted assets | 11.88 | 11.76 | 10.65 | |||||||||||||||||
| Nonperforming loans to portfolio loans | 2.62 | 1.50 | 1.35 | |||||||||||||||||
| Shareholders’ equity to total assets | 7.98 | 8.96 | 8.11 | |||||||||||||||||
| Return on average assets | 0.33 | 0.96 | 0.62 | |||||||||||||||||
| Return on average equity | 3.97 | 10.29 | 7.38 | |||||||||||||||||
| Nine Months | ||||||||||||
| % | ||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2008 | 2007 | Change | |||||||||
Operations | ||||||||||||
| Net interest income | $ | 67,305 | $ | 69,061 | (3 | )% | ||||||
| Provision for loan losses | 12,281 | 6,117 | 101 | |||||||||
| Noninterest income | 12,709 | 12,362 | 3 | |||||||||
| Noninterest expense | 48,695 | 47,801 | 2 | |||||||||
| Income before taxes | 19,038 | 27,505 | (31 | ) | ||||||||
| Taxes on income | 7,362 | 10,648 | (31 | ) | ||||||||
| Net income | 11,676 | 16,857 | (31 | ) | ||||||||
| Diluted earnings per share | 0.80 | 1.15 | (30 | ) | ||||||||
Balance Sheet | ||||||||||||
| Total assets | 2,832,371 | 2,386,852 | 19 | |||||||||
| Loans held for sale | 72,248 | 78,417 | (8 | ) | ||||||||
| Portfolio loans | 2,440,091 | 1,933,223 | 26 | |||||||||
| Total deposits | 2,198,719 | 1,912,719 | 15 | |||||||||
| Total shareholders’ equity | 226,123 | 213,838 | 6 | |||||||||
| Book value per share | 15.56 | 14.92 | 4 | |||||||||
Key Ratios | ||||||||||||
| Net interest margin | 3.41 | % | 4.31 | % | ||||||||
| Efficiency ratio (GAAP-based) | 60.86 | 58.71 | ||||||||||
| Total capital to risk-weighted assets | 11.88 | 11.76 | ||||||||||
| Nonperforming loans to portfolio loans | 2.62 | 1.50 | ||||||||||
| Shareholders’ equity to total assets | 7.98 | 8.96 | ||||||||||
| Return on average assets | 0.58 | 1.02 | ||||||||||
| Return on average equity | 6.88 | 10.88 | ||||||||||
Balance sheet amounts are as of period end unless otherwise noted.
Please see accompanying tables for additional financial information.
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 |
| September 30, | December 31, | September 30, | ||||||||||
| 2008 | 2007 | 2007 | ||||||||||
Assets | ||||||||||||
| Cash and due from banks | $ | 36,503 | $ | 45,678 | $ | 30,604 | ||||||
| Investment securities: | ||||||||||||
| Held to maturity. Fair value: $7,262 $5,838 $5,301 | 7,342 | 5,838 | 5,335 | |||||||||
| Available for sale. Amortized cost: $218,974 $232,880 $270,850 | 217,198 | 233,531 | 271,185 | |||||||||
| Other investments, at cost | 17,188 | 17,239 | 16,998 | |||||||||
| Loans held for sale | 72,248 | 66,275 | 78,417 | |||||||||
| Loans receivable | 2,440,091 | 2,145,557 | 1,933,223 | |||||||||
| Less: Allowance for loan losses | (35,807 | ) | (29,584 | ) | (28,314 | ) | ||||||
| Net loans receivable | 2,404,284 | 2,115,973 | 1,904,909 | |||||||||
| Accrued interest receivable | 12,530 | 23,117 | 22,561 | |||||||||
| Premises and equipment, net | 24,799 | 24,323 | 24,064 | |||||||||
| Other real estate owned | 2,685 | 2,679 | 1,654 | |||||||||
| Goodwill | 7,071 | 7,064 | 6,742 | |||||||||
| Other intangible assets, net | 4,120 | 4,580 | 4,335 | |||||||||
| Other assets | 26,403 | 18,001 | 20,048 | |||||||||
| Total assets | $ | 2,832,371 | $ | 2,564,298 | $ | 2,386,852 | ||||||
Liabilities and shareholders’ equity | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing demand | $ | 280,453 | $ | 257,067 | $ | 261,634 | ||||||
| Interest-bearing demand | 70,471 | 63,323 | 63,145 | |||||||||
| Money market accounts | 554,357 | 541,950 | 505,192 | |||||||||
| Savings accounts | 14,452 | 13,032 | 14,830 | |||||||||
| Time deposits of $100,000 or more | 731,773 | 690,985 | 580,850 | |||||||||
| Other time deposits | 547,213 | 492,222 | 487,068 | |||||||||
| Total deposits | 2,198,719 | 2,058,579 | 1,912,719 | |||||||||
| Accrued interest payable | 9,992 | 11,441 | 11,201 | |||||||||
| Income tax payable | 3,828 | 1,766 | 2,078 | |||||||||
| Other liabilities | 12,628 | 10,154 | 9,776 | |||||||||
| Other borrowings | 299,118 | 218,356 | 190,847 | |||||||||
| Subordinated debentures | 81,963 | 46,393 | 46,393 | |||||||||
| Total liabilities | 2,606,248 | 2,346,689 | 2,173,014 | |||||||||
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 | 45,849 | 46,478 | 46,490 | |||||||||
| Retained earnings | 169,026 | 161,482 | 158,279 | |||||||||
| Accumulated other comprehensive income (loss) | (1,075 | ) | 408 | 209 | ||||||||
| Treasury stock, at cost, 129,586 300,833 321,991 shares | (2,335 | ) | (5,417 | ) | (5,798 | ) | ||||||
| Total shareholders’ equity | 226,123 | 217,609 | 213,838 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,832,371 | $ | 2,564,298 | $ | 2,386,852 | ||||||
| SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except per share) | Table 3 |
| For the three months | For the nine months | |||||||||||||||
| ended September 30, | ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest income | ||||||||||||||||
| Loans | $ | 38,441 | $ | 42,346 | $ | 116,536 | $ | 122,210 | ||||||||
| Investment securities | 2,531 | 2,816 | 7,293 | 8,342 | ||||||||||||
| Other interest-earning assets | 22 | 39 | 70 | 219 | ||||||||||||
| Total interest income | 40,994 | 45,201 | 123,899 | 130,771 | ||||||||||||
Interest expense | ||||||||||||||||
| Interest-bearing deposits | 14,398 | 18,824 | 47,759 | 53,940 | ||||||||||||
| Other borrowings | 1,839 | 1,715 | 5,755 | 4,935 | ||||||||||||
| Subordinated debentures | 1,569 | 956 | 3,080 | 2,835 | ||||||||||||
| Total interest expense | 17,806 | 21,495 | 56,594 | 61,710 | ||||||||||||
| Net interest income | 23,188 | 23,706 | 67,305 | 69,061 | ||||||||||||
| Provision for loan losses | 6,855 | 2,149 | 12,281 | 6,117 | ||||||||||||
| Net interest income after provision for loan losses | 16,333 | 21,557 | 55,024 | 62,944 | ||||||||||||
Noninterest income | ||||||||||||||||
| Service charges and fees | 2,849 | 2,548 | 8,118 | 7,089 | ||||||||||||
| Gain on sales of loans | 601 | 548 | 2,044 | 2,556 | ||||||||||||
| Gain (loss) on investment securities | (50 | ) | 108 | 1,198 | 1,579 | |||||||||||
| Other noninterest income | 662 | 422 | 1,349 | 1,138 | ||||||||||||
| Total noninterest income | 4,062 | 3,626 | 12,709 | 12,362 | ||||||||||||
Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 8,863 | 8,966 | 26,941 | 25,449 | ||||||||||||
| Occupancy | 2,968 | 2,514 | 8,028 | 7,305 | ||||||||||||
| FDIC and other insurance | 469 | 134 | 1,443 | 397 | ||||||||||||
| Other real estate, net | (92 | ) | (12 | ) | 115 | (122 | ) | |||||||||
| General and administrative | 4,325 | 4,560 | 12,168 | 14,772 | ||||||||||||
| Total noninterest expenses | 16,533 | 16,162 | 48,695 | 47,801 | ||||||||||||
| Income before taxes | 3,862 | 9,021 | 19,038 | 27,505 | ||||||||||||
| Taxes on income | 1,556 | 3,505 | 7,362 | 10,648 | ||||||||||||
| Net income | $ | 2,306 | $ | 5,516 | $ | 11,676 | $ | 16,857 | ||||||||
| Basic earnings per common share | $ | 0.16 | $ | 0.38 | $ | 0.81 | $ | 1.18 | ||||||||
| Diluted earnings per common share | 0.16 | 0.38 | 0.80 | 1.15 | ||||||||||||
| Cash dividends declared per share | 0.0950 | 0.0925 | 0.2850 | 0.2775 | ||||||||||||
| SOUTHWEST BANCORP, INC. UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES (Dollars in thousands) | Table 4 |
| For the three months ended September 30, | ||||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Loans | $ | 2,485,617 | $ | 38,441 | 6.15 | % | $ | 1,925,468 | $ | 42,346 | 8.73 | % | ||||||||||||
| Investment securities | 235,428 | 2,531 | 4.28 | 284,394 | 2,816 | 3.93 | ||||||||||||||||||
| Other interest-earning assets | 4,113 | 22 | 2.13 | 3,415 | 39 | 4.53 | ||||||||||||||||||
| Total interest-earning assets | 2,725,158 | 40,994 | 5.98 | 2,213,277 | 45,201 | 8.10 | ||||||||||||||||||
| Other assets | 72,624 | 72,780 | ||||||||||||||||||||||
| Total assets | $ | 2,797,782 | $ | 2,286,057 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 75,436 | $ | 147 | 0.78 | % | $ | 62,667 | $ | 82 | 0.52 | % | ||||||||||||
| Money market accounts | 545,520 | 2,898 | 2.11 | 489,514 | 5,589 | 4.53 | ||||||||||||||||||
| Savings accounts | 14,285 | 17 | 0.47 | 13,263 | 24 | 0.72 | ||||||||||||||||||
| Time deposits | 1,272,097 | 11,336 | 3.55 | 1,042,096 | 13,129 | 5.00 | ||||||||||||||||||
| Total interest-bearing deposits | 1,907,338 | 14,398 | 3.00 | 1,607,540 | 18,824 | 4.65 | ||||||||||||||||||
| Other borrowings | 275,365 | 1,839 | 2.66 | 149,952 | 1,715 | 4.54 | ||||||||||||||||||
| Subordinated debentures | 81,122 | 1,569 | 7.74 | 46,393 | 956 | 8.24 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,263,825 | 17,806 | 3.13 | 1,803,885 | 21,495 | 4.73 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 278,565 | 246,607 | ||||||||||||||||||||||
| Other liabilities | 24,250 | 22,904 | ||||||||||||||||||||||
| Shareholders’ equity | 231,142 | 212,661 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,797,782 | $ | 2,286,057 | ||||||||||||||||||||
| Net interest income and spread | $ | 23,188 | 2.85 | % | $ | 23,706 | 3.37 | % | ||||||||||||||||
| Net interest margin (1) | 3.39 | % | 4.25 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.38 | % | 122.70 | % | ||||||||||||||||||||
| (1) | Net interest margin = annualized net interest income / average interest-earning assets |
Table 5
SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands)
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands)
| For the nine months ended September 30, | ||||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Loans | $ | 2,401,162 | $ | 116,536 | 6.48 | % | $ | 1,856,068 | $ | 122,210 | 8.80 | % | ||||||||||||
| Investment securities | 234,894 | 7,293 | 4.15 | 278,090 | 8,342 | 4.01 | ||||||||||||||||||
| Other interest-earning assets | 3,430 | 70 | 2.73 | 5,945 | 219 | 4.93 | ||||||||||||||||||
| Total interest-earning assets | 2,639,486 | 123,899 | 6.27 | 2,140,103 | 130,771 | 8.17 | ||||||||||||||||||
| Other assets | 72,084 | 73,385 | ||||||||||||||||||||||
| Total assets | $ | 2,711,570 | $ | 2,213,488 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 75,813 | $ | 454 | 0.80 | % | $ | 62,367 | $ | 261 | 0.56 | % | ||||||||||||
| Money market accounts | 546,560 | 10,488 | 2.56 | 428,597 | 14,294 | 4.46 | ||||||||||||||||||
| Savings accounts | 13,780 | 58 | 0.56 | 11,795 | 65 | 0.74 | ||||||||||||||||||
| Time deposits | 1,237,196 | 36,759 | 3.97 | 1,055,156 | 39,320 | 4.98 | ||||||||||||||||||
| Total interest-bearing deposits | 1,873,349 | 47,759 | 3.41 | 1,557,915 | 53,940 | 4.63 | ||||||||||||||||||
| Other borrowings | 266,367 | 5,755 | 2.89 | 140,110 | 4,935 | 4.71 | ||||||||||||||||||
| Subordinated debentures | 58,054 | 3,080 | 7.07 | 46,393 | 2,835 | 8.15 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,197,770 | 56,594 | 3.44 | 1,744,418 | 61,710 | 4.73 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 265,245 | 240,688 | ||||||||||||||||||||||
| Other liabilities | 21,826 | 21,158 | ||||||||||||||||||||||
| Shareholders’ equity | 226,729 | 207,224 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,711,570 | $ | 2,213,488 | ||||||||||||||||||||
| Net interest income and spread | $ | 67,305 | 2.83 | % | $ | 69,061 | 3.44 | % | ||||||||||||||||
| Net interest margin (1) | 3.41 | % | 4.31 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.10 | % | 122.68 | % | ||||||||||||||||||||
| (1) | Net interest margin = annualized net interest income / average interest-earning assets |
Table 6
SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share)
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share)
| 2008 | 2007 | |||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
| Loans | $ | 38,441 | $ | 37,485 | $ | 40,610 | $ | 43,549 | $ | 42,346 | $ | 39,578 | $ | 40,286 | ||||||||||||||
| Investment securities | 2,531 | 2,426 | 2,336 | 2,713 | 2,816 | 2,847 | 2,679 | |||||||||||||||||||||
| Other interest-earning assets | 22 | 20 | 28 | 35 | 39 | 115 | 65 | |||||||||||||||||||||
| Total interest income | 40,994 | 39,931 | 42,974 | 46,297 | 45,201 | 42,540 | 43,030 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
| Interest bearing demand deposits | 147 | 166 | 141 | 94 | 82 | 98 | 81 | |||||||||||||||||||||
| Money market accounts | 2,898 | 3,062 | 4,528 | 5,370 | 5,589 | 4,743 | 3,962 | |||||||||||||||||||||
| Savings accounts | 17 | 19 | 22 | 22 | 24 | 21 | 20 | |||||||||||||||||||||
| Time deposits of $100,000 or more | 6,879 | 7,051 | 7,865 | 7,873 | 7,445 | 7,781 | 8,132 | |||||||||||||||||||||
| Other time deposits | 4,457 | 4,809 | 5,698 | 5,840 | 5,684 | 5,250 | 5,028 | |||||||||||||||||||||
| Total interest-bearing deposits | 14,398 | 15,107 | 18,254 | 19,199 | 18,824 | 17,893 | 17,223 | |||||||||||||||||||||
| Other borrowings | 1,839 | 1,887 | 2,029 | 2,620 | 1,715 | 1,089 | 2,131 | |||||||||||||||||||||
| Subordinated debentures | 1,569 | 653 | 858 | 942 | 956 | 946 | 933 | |||||||||||||||||||||
| Total interest expense | 17,806 | 17,647 | 21,141 | 22,761 | 21,495 | 19,928 | 20,287 | |||||||||||||||||||||
| Net interest income | 23,188 | 22,284 | 21,833 | 23,536 | 23,706 | 22,612 | 22,743 | |||||||||||||||||||||
| Provision for loan losses | 6,855 | 3,190 | 2,236 | 2,464 | 2,149 | 2,107 | 1,861 | |||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
| Service charges and fees | 2,849 | 2,812 | 2,457 | 2,831 | 2,548 | 2,306 | 2,235 | |||||||||||||||||||||
| Gain on sales of loans | 601 | 603 | 840 | 783 | 548 | 800 | 1,208 | |||||||||||||||||||||
| Gain (loss) on investment securities | (50 | ) | 3 | 1,245 | 5 | 108 | 1,919 | (448 | ) | |||||||||||||||||||
| Other noninterest income | 662 | 541 | 146 | 452 | 422 | 400 | 316 | |||||||||||||||||||||
| Total noninterest income | 4,062 | 3,959 | 4,688 | 4,071 | 3,626 | 5,425 | 3,311 | |||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 8,863 | 8,856 | 9,222 | 9,838 | 8,966 | 8,358 | 8,125 | |||||||||||||||||||||
| Occupancy | 2,968 | 2,602 | 2,458 | 2,540 | 2,514 | 2,388 | 2,403 | |||||||||||||||||||||
| FDIC and other insurance | 469 | 521 | 453 | 225 | 134 | 140 | 123 | |||||||||||||||||||||
| Other real estate, net | (92 | ) | 197 | 10 | 64 | (12 | ) | (41 | ) | (69 | ) | |||||||||||||||||
| Unfunded loan commitment | 90 | 15 | 145 | 368 | 675 | 151 | (65 | ) | ||||||||||||||||||||
| Other general and administrative | 4,235 | 4,141 | 3,542 | 4,638 | 3,885 | 3,812 | 6,314 | |||||||||||||||||||||
| Total noninterest expenses | 16,533 | 16,332 | 15,830 | 17,673 | 16,162 | 14,808 | 16,831 | |||||||||||||||||||||
| Income before taxes | 3,862 | 6,721 | 8,455 | 7,470 | 9,021 | 11,122 | 7,362 | |||||||||||||||||||||
| Taxes on income | 1,556 | 2,559 | 3,247 | 2,949 | 3,505 | 4,281 | 2,862 | |||||||||||||||||||||
| Net income | $ | 2,306 | $ | 4,162 | $ | 5,208 | $ | 4,521 | $ | 5,516 | $ | 6,841 | $ | 4,500 | ||||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.16 | $ | 0.29 | $ | 0.36 | $ | 0.32 | $ | 0.38 | $ | 0.48 | $ | 0.32 | ||||||||||||||
| Diluted earnings per common share | 0.16 | 0.28 | 0.36 | 0.31 | 0.38 | 0.47 | 0.31 | |||||||||||||||||||||
| Cash dividends declared per share | 0.0950 | 0.0950 | 0.0950 | 0.0925 | 0.0925 | 0.0925 | 0.0925 | |||||||||||||||||||||
| Book value per share | 15.56 | 15.49 | 15.43 | 15.16 | 14.92 | 14.53 | 14.14 | |||||||||||||||||||||
| Tangible book value per share | 15.08 | 15.00 | 14.95 | 14.66 | 14.45 | 14.44 | 14.05 | |||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 14,527,893 | 14,526,038 | 14,413,686 | 14,353,910 | 14,335,008 | 14,299,111 | 14,263,698 | |||||||||||||||||||||
| Diluted | 14,676,082 | 14,680,262 | 14,608,190 | 14,584,878 | 14,612,732 | 14,644,863 | 14,642,913 | |||||||||||||||||||||
OTHER FINANCIAL DATA | ||||||||||||||||||||||||||||
| Investment securities | $ | 241,728 | $ | 234,429 | $ | 236,059 | $ | 256,608 | $ | 293,518 | $ | 278,330 | $ | 274,402 | ||||||||||||||
| Loans held for sale | 72,248 | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | |||||||||||||||||||||
| Portfolio loans | 2,440,091 | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | |||||||||||||||||||||
| Total loans | 2,512,339 | 2,444,785 | 2,353,970 | 2,211,832 | 2,011,640 | 1,842,539 | 1,775,220 | |||||||||||||||||||||
| Total assets | 2,832,371 | 2,773,013 | 2,670,580 | 2,564,298 | 2,386,852 | 2,196,005 | 2,194,179 | |||||||||||||||||||||
| Total deposits | 2,198,719 | 2,211,001 | 2,094,927 | 2,058,579 | 1,912,719 | 1,823,806 | 1,803,181 | |||||||||||||||||||||
| Other borrowings | 299,118 | 265,614 | 282,513 | 218,356 | 190,847 | 95,561 | 123,212 | |||||||||||||||||||||
| Subordinated debentures | 81,963 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||||||||||||||
| Total shareholders’ equity | 226,123 | 224,949 | 224,155 | 217,609 | 213,838 | 208,185 | 201,777 | |||||||||||||||||||||
| Mortgage servicing portfolio | 153,250 | 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 | |||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
| Return on average assets (annualized) | 0.33 | % | 0.62 | % | 0.80 | % | 0.72 | % | 0.96 | % | 1.28 | % | 0.83 | % | ||||||||||||||
| Return on average equity (annualized) | 3.97 | 7.38 | 9.43 | 8.24 | 10.29 | 13.26 | 9.04 | |||||||||||||||||||||
| Return on average tangible equity (annualized) | 4.26 | 7.86 | 9.94 | 8.86 | 10.88 | 13.70 | 9.23 | |||||||||||||||||||||
| Net interest margin | 3.39 | 3.38 | 3.45 | 3.89 | 4.25 | 4.36 | 4.34 | |||||||||||||||||||||
| Dividends declared to net income | 59.85 | 33.16 | 26.37 | 29.37 | 24.04 | 19.37 | 29.32 | |||||||||||||||||||||
| Effective tax rate | 40.29 | 38.07 | 38.40 | 39.48 | 38.85 | 38.49 | 38.88 | |||||||||||||||||||||
| Efficiency ratio | 60.67 | 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 | 2.72 | % | 1.45 | % | 1.41 | % | 1.50 | % | 1.59 | % | 1.45 | % | 1.88 | % | ||||||||||||||
| Nonperforming loans to portfolio loans | 2.62 | 1.35 | 1.27 | 1.38 | 1.50 | 1.37 | 1.77 | |||||||||||||||||||||
| Net loan charge-offs to average total loans | 0.38 | 0.30 | 0.33 | 0.22 | 0.39 | 0.40 | 0.31 | |||||||||||||||||||||
| Allowance for loan losses to total loans | 1.43 | 1.28 | 1.27 | 1.34 | 1.41 | 1.52 | 1.56 | |||||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.47 | 1.32 | 1.31 | 1.38 | 1.46 | 1.59 | 1.66 | |||||||||||||||||||||
| Allowance for loan losses to nonperforming loans | 56.07 | 97.62 | 103.49 | 100.04 | 97.32 | 115.65 | 94.18 | |||||||||||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||||||||||
| Average total shareholders’ equity to average assets | 8.26 | % | 8.35 | % | 8.49 | % | 8.80 | % | 9.30 | % | 9.64 | % | 9.15 | % | ||||||||||||||
| Leverage ratio | 10.51 | 9.66 | 9.91 | 10.23 | 10.92 | 11.73 | 11.12 | |||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 10.49 | 9.40 | 9.47 | 9.71 | 10.49 | 11.84 | 12.44 | |||||||||||||||||||||
| Total capital to risk-weighted assets | 11.88 | 10.65 | 10.69 | 10.97 | 11.76 | 13.13 | 13.68 | |||||||||||||||||||||
SEGMENT LOANS** | ||||||||||||||||||||||||||||
| Oklahoma banking | $ | 962,611 | $ | 965,952 | $ | 943,331 | $ | 876,085 | $ | 844,859 | $ | 804,906 | $ | 766,990 | ||||||||||||||
| Texas banking | 892,998 | 857,160 | 797,700 | 759,389 | 644,749 | 567,236 | 507,384 | |||||||||||||||||||||
| Kansas banking | 288,268 | 277,887 | 287,339 | 282,846 | 251,131 | 198,228 | 206,405 | |||||||||||||||||||||
| Other states banking | 296,214 | 280,894 | 259,236 | 227,237 | 192,484 | 199,158 | 186,416 | |||||||||||||||||||||
| Subtotal | 2,440,091 | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | |||||||||||||||||||||
| Secondary market | 72,248 | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | |||||||||||||||||||||
| Total loans | $ | 2,512,339 | $ | 2,444,785 | $ | 2,353,970 | $ | 2,211,832 | $ | 2,011,640 | $ | 1,842,539 | $ | 1,775,220 | ||||||||||||||
SEGMENT NET INCOME** | ||||||||||||||||||||||||||||
| Oklahoma banking | $ | 3,295 | $ | 2,923 | $ | 2,503 | $ | 3,080 | $ | 3,759 | $ | 4,820 | $ | 4,278 | ||||||||||||||
| Texas banking | 1,332 | 1,777 | 2,406 | 1,701 | 1,638 | 1,568 | 1,643 | |||||||||||||||||||||
| Kansas banking | (1,336 | ) | (40 | ) | 458 | 82 | 243 | 326 | 208 | |||||||||||||||||||
| Other states banking | 848 | 1,028 | 969 | 225 | 768 | 930 | 240 | |||||||||||||||||||||
| Subtotal | 4,139 | 5,688 | 6,336 | 5,088 | 6,408 | 7,644 | 6,369 | |||||||||||||||||||||
| Secondary market | (149 | ) | 40 | (174 | ) | 114 | 33 | 197 | 753 | |||||||||||||||||||
| Other operations | (1,684 | ) | (1,566 | ) | (954 | ) | (681 | ) | (925 | ) | (1,000 | ) | (2,622 | ) | ||||||||||||||
| Total net income | $ | 2,306 | $ | 4,162 | $ | 5,208 | $ | 4,521 | $ | 5,516 | $ | 6,841 | $ | 4,500 | ||||||||||||||
OFFICES AND EMPLOYEES | ||||||||||||||||||||||||||||
| FTE Employees | 458 | 463 | 467 | 489 | 484 | 457 | 443 | |||||||||||||||||||||
| ATM’s | 41 | 40 | 40 | 43 | 43 | 38 | 39 | |||||||||||||||||||||
| Branches | 18 | 17 | 17 | 17 | 17 | 15 | 15 | |||||||||||||||||||||
| Loan production offices | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||
| Assets per employee | $ | 6,184 | $ | 5,989 | $ | 5,719 | $ | 5,244 | $ | 4,932 | $ | 4,805 | $ | 4,953 | ||||||||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||
| ** | 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. | Table 7 | |
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | ||
(Dollars in thousands except per share) |
| 2008 | 2007 | |||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||
LOAN COMPOSITION | ||||||||||||||||||||||||||||
| Real estate mortgage: | ||||||||||||||||||||||||||||
| Commercial | $ | 1,077,601 | $ | 991,679 | $ | 846,757 | $ | 750,047 | $ | 608,409 | $ | 564,813 | $ | 582,440 | ||||||||||||||
| One-to-four family residential | 116,270 | 118,056 | 110,938 | 111,085 | 112,407 | 90,916 | 83,312 | |||||||||||||||||||||
| Real estate construction | 634,339 | 666,756 | 744,090 | 724,929 | 659,214 | 617,993 | 517,199 | |||||||||||||||||||||
| Commercial | 574,087 | 566,830 | 544,183 | 521,501 | 517,658 | 465,588 | 457,838 | |||||||||||||||||||||
| Installment and consumer: | ||||||||||||||||||||||||||||
| Guaranteed student loans | 67,610 | 57,413 | 63,706 | 61,555 | 73,810 | 68,117 | 101,905 | |||||||||||||||||||||
| Other | 42,432 | 44,051 | 44,296 | 42,715 | 40,142 | 35,112 | 32,526 | |||||||||||||||||||||
| Total loans, including held for sale | 2,512,339 | 2,444,785 | 2,353,970 | 2,211,832 | 2,011,640 | 1,842,539 | 1,775,220 | |||||||||||||||||||||
| Less allowance for loan losses | (35,807 | ) | (31,341 | ) | (29,950 | ) | (29,584 | ) | (28,314 | ) | (28,054 | ) | (27,728 | ) | ||||||||||||||
| Total loans, net | $ | 2,476,532 | $ | 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 | $ | 67,610 | $ | 57,413 | $ | 63,706 | $ | 61,555 | $ | 73,810 | $ | 68,117 | $ | 101,905 | ||||||||||||||
| One-to-four family residential | 3,500 | 4,283 | 1,417 | 3,442 | 3,293 | 3,382 | 4,113 | |||||||||||||||||||||
| Other | 1,138 | 1,196 | 1,241 | 1,278 | 1,314 | 1,512 | 2,007 | |||||||||||||||||||||
| Total loans held for sale | 72,248 | 62,892 | 66,364 | 66,275 | 78,417 | 73,011 | 108,025 | |||||||||||||||||||||
| Portfolio loans | 2,440,091 | 2,381,893 | 2,287,606 | 2,145,557 | 1,933,223 | 1,769,528 | 1,667,195 | |||||||||||||||||||||
| Total loans before allowance | $ | 2,512,339 | $ | 2,444,785 | $ | 2,353,970 | $ | 2,211,832 | $ | 2,011,640 | $ | 1,842,539 | $ | 1,775,220 | ||||||||||||||
DEPOSIT COMPOSITION | ||||||||||||||||||||||||||||
| Non-interest bearing demand | $ | 280,453 | $ | 299,699 | $ | 248,315 | $ | 257,067 | $ | 261,634 | $ | 248,285 | $ | 251,777 | ||||||||||||||
| Interest-bearing demand | 70,471 | 81,415 | 71,450 | 63,323 | 63,145 | 63,758 | 63,741 | |||||||||||||||||||||
| Money market accounts | 554,357 | 548,099 | 553,850 | 541,950 | 505,192 | 487,096 | 394,668 | |||||||||||||||||||||
| Savings accounts | 14,452 | 13,809 | 13,808 | 13,032 | 14,830 | 11,017 | 11,196 | |||||||||||||||||||||
| Time deposits of $100,000 or more | 731,773 | 740,174 | 690,421 | 690,985 | 580,850 | 571,584 | 646,668 | |||||||||||||||||||||
| Other time deposits | 547,213 | 527,805 | 517,083 | 492,222 | 487,068 | 442,066 | 435,131 | |||||||||||||||||||||
| Total deposits | $ | 2,198,719 | $ | 2,211,001 | $ | 2,094,927 | $ | 2,058,579 | $ | 1,912,719 | $ | 1,823,806 | $ | 1,803,181 | ||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 61,557 | $ | 30,861 | $ | 26,134 | $ | 19,534 | $ | 26,291 | $ | 22,633 | $ | 26,978 | ||||||||||||||
| 90 days past due and accruing | 2,299 | 1,242 | 2,807 | 10,037 | 2,803 | 1,625 | 2,462 | |||||||||||||||||||||
| Total nonperforming loans | 63,856 | 32,103 | 28,941 | 29,571 | 29,094 | 24,258 | 29,440 | |||||||||||||||||||||
| Other real estate owned | 2,685 | 2,523 | 3,328 | 2,679 | 1,654 | 1,508 | 1,869 | |||||||||||||||||||||
| Total nonperforming assets | $ | 66,541 | $ | 34,626 | $ | 32,269 | $ | 32,250 | $ | 30,748 | $ | 25,766 | $ | 31,309 | ||||||||||||||
| Potential nonperforming loans | $ | 86,070 | $ | 71,070 | $ | 69,588 | $ | 61,633 | $ | 70,389 | $ | 69,595 | $ | 52,335 | ||||||||||||||
ALLOWANCE ACTIVITY | ||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 31,341 | $ | 29,950 | $ | 29,584 | $ | 28,314 | $ | 28,054 | $ | 27,728 | $ | 27,293 | ||||||||||||||
| Charge offs | 2,752 | 1,892 | 2,044 | 1,290 | 2,105 | 1,875 | 1,728 | |||||||||||||||||||||
| Recoveries | 363 | 93 | 174 | 96 | 216 | 94 | 302 | |||||||||||||||||||||
| Net charge offs | 2,389 | 1,799 | 1,870 | 1,194 | 1,889 | 1,781 | 1,426 | |||||||||||||||||||||
| Provision for loan losses | 6,855 | 3,190 | 2,236 | 2,464 | 2,149 | 2,107 | 1,861 | |||||||||||||||||||||
| Balance, end of period | $ | 35,807 | $ | 31,341 | $ | 29,950 | $ | 29,584 | $ | 28,314 | $ | 28,054 | $ | 27,728 | ||||||||||||||
REGULATORY CAPITAL DATA | ||||||||||||||||||||||||||||
| Tier I capital | $ | 293,141 | $ | 261,354 | $ | 258,272 | $ | 251,980 | $ | 248,961 | $ | 251,460 | $ | 244,862 | ||||||||||||||
| Total capital | 332,012 | 296,166 | 291,638 | 284,730 | 279,031 | 278,799 | 269,513 | |||||||||||||||||||||
| Total risk adjusted assets | 2,793,843 | 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 | 14,658,042 | |||||||||||||||||||||
| Less treasury shares | (129,586 | ) | (131,566 | ) | (133,605 | ) | (300,833 | ) | (321,991 | ) | (329,570 | ) | (385,632 | ) | ||||||||||||||
| Outstanding shares | 14,528,456 | 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 | $ | 7,071 | $ | 7,064 | $ | 6,742 | $ | 1,213 | $ | 1,213 | ||||||||||||||
| Core deposit intangible | 2,693 | 2,792 | 2,893 | 3,053 | 2,879 | 1,466 | 1,531 | |||||||||||||||||||||
| Mortgage servicing rights | 1,417 | 1,354 | 1,299 | 1,513 | 1,440 | 1,428 | 1,413 | |||||||||||||||||||||
| Nonmortgage servicing rights | 10 | 11 | 13 | 14 | 16 | 32 | 37 | |||||||||||||||||||||
| Total intangible assets | $ | 11,191 | $ | 11,228 | $ | 11,276 | $ | 11,644 | $ | 11,077 | $ | 4,139 | $ | 4,194 | ||||||||||||||
| Intangible amortization expense | $ | 212 | $ | 215 | $ | 257 | $ | 159 | $ | 161 | $ | 165 | $ | 162 | ||||||||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||