Exhibit 99
| | | |
| | | For additional information: |
| | | Rick Green |
| | | President & CEO |
| | | Kerby E. Crowell |
| | | EVP & CFO |
For Immediate Release | | (405) 372-2230 |
Southwest Bancorp Reports 2008 Earnings, Increased Capital
January 21, 2009, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $3.0 million, or $0.20 per diluted share for the fourth quarter 2008, compared to $4.5 million, or $0.31 per diluted share for the fourth quarter of 2007. Net income available to common shareholders for the year ended December 31, 2008 was $14.7 million, or $1.00 per diluted share, compared to $21.4 million, or $1.46 per diluted share, for the prior year. At December 31, 2008, total assets were $2.9 billion compared to $2.6 billion at December 31, 2007, and shareholders’ equity was $302.2 million compared to $217.6 million at year-end 2007.
“We continue to focus on our strategic goal of building long-term shareholder value during these uncertain times,” stated Rick Green, President and Chief Executive Officer.
“Southwest continues to generate earnings and dividends for our shareholders, but our 2008 performance was disappointing. As explained further below, the main causes are linked to current economic conditions – the competitive pressures that have caused reductions in rates on deposits and other funding sources to decrease less than the drop in rates on earning assets and the market conditions that have required increases in our allowance for loan losses. (For additional information, please see page 2 for an analysis of the effects that changes in rates had on our net interest income and a discussion of the increase in the allowance.)
“Our strategic vision includes continued emphasis on prudent lending in carefully selected markets in Texas, Oklahoma, and Kansas; careful expansion of our community banking operations; and increases in stable funding sources at reasonable cost. In 2008, we took important steps that we believe will make Southwest better positioned both now and when the economy improves. These include raising over $100 million in new capital from our July public offering and the December issuance of securities to the U.S. Treasury. We believe the new capital will help us take better advantage of opportunities for prudent loan growth while continuing to maintain appropriate capitalization. We have a clear focus on intelligent expense control. We are evaluating additional consumer banking branches in our existing and nearby markets.”
At year end, our portfolio loans were $2.5 billion. Approximately $1.3 billion, or 50%, of our total portfolio loans at December 31, 2008, were in our Texas and Kansas segments:
| | • | | Oklahoma portfolio loans were $966.2 million or 39%, |
| |
| | • | | Texas portfolio loans were $947.6 million, or 38%, |
| |
| | • | | Kansas portfolio loans were $304.9 million, or 12%, and |
| |
| | • | | Other States portfolio loans were $275.8 million, or 11% |
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
OKSBP
Southwest Bancorp Reports Earnings, Increased Capital
Capital Raising
Proceeds from our 2008 capital issuances are being used to increase our regulatory capital, to fund prudent 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.
In early July, we completed the issuance of $34.5 million in trust preferred securities in a public offering. In December we issued Fixed Rate Cumulative Preferred Stock, Series B and a warrant to purchase 703,743 shares of our common stock for a total price of $70 million. Southwest allocated $66.3 million to the Series B Preferred Stock and $3.7 million to the warrant based on their relative fair values at the issue date. Accrued dividends on the Series B Preferred are included in other liabilities on our statement of financial condition.
Net Interest Margin
As shown below, the positive earnings effect of our loan growth continued to be offset by the significant margin compression that began last year. For the year ended December 31, 2008, the net interest margin of 3.36% was down 84 basis points from the year ended December 31, 2007. During 2008, the compression in rates more than offset the positive effects of our earning asset growth. As a result, net interest income decreased by $2.9 million, or 3% for the year ended December 31, 2008.
| | | | | | | | | | | | | |
| | | Net Effects of Growth and Margin Compression: | |
| | | Year 2008 vs. Year 2007 | |
| | | Change in Net Interest Income Due to Changes in: | |
| (Dollars in thousands) | | Volume | | | Rate | | | Total | |
| Total interest income | | $ | 33,228 | | | $ | (47,502 | ) | | $ | (14,274 | ) |
| Total interest expense | | | 16,948 | | | | (28,344 | ) | | | (11,396 | ) |
| | | | | | | | | | |
| Net interest income | | $ | 16,280 | | | $ | (19,158 | ) | | $ | (2,878 | ) |
| | | | | | | | | | |
The 2008 fourth quarter net interest margin of 3.22% decreased 67 basis points from fourth quarter 2007, and decreased 17 basis points from third quarter 2008.
Financial Overview
Condition:Total assets were $2.9 billion at December 31, 2008, an increase of 12% from $2.6 billion at December 31, 2007. At December 31, 2008 total loans were $2.6 billion versus $2.2 billion at December 31, 2007.
At December 31, 2008, the allowance for loan losses was $39.8 million, up 34%, from year-end 2007, and represented 1.59% of portfolio loans versus 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. The provision for loan losses increased by $10.4 million, or 121% during 2008 compared to 2007.
Non-performing assets to total assets were 2.43% at December 31, 2008 compared to 2.35% at September 30, 2008 and 1.26% at December 31, 2007.
| | | | | | | | | |
| | | | | | | Percentage of |
| | | Percentage of | | non-performing |
| | | total loans | | assets |
| | | |
| Real estate construction | | | 25.84 | % | | | 59.01 | % |
| Commercial | | | 22.13 | | | | 17.33 | |
| Commercial real estate | | | 43.85 | | | | 14.11 | |
| Other real estate owned | | | — | | | | 8.69 | |
| Residential real estate mortgages | | | 4.46 | | | | 0.74 | |
| Other consumer loans | | | 3.72 | | | | 0.12 | |
Nonaccrual loans, which are the majority of nonperforming assets, were $59.3 million as of December 31, 2008, a decrease of $2.2 million from September 30, 2008, and an increase of $39.8 million from December 31, 2007. These loans are carried at their estimated collectible amounts and no longer accrue interest. The year-to-date increase in nonaccrual loans is primarily due to two collateral dependent lending relationships that are secured by real estate and an increase in the over 90 days past due loans. Performing loans considered potential problem loans,
2
NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Earnings, Increased Capital
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 $131.5 million at December 31, 2008, compared to $86.1 million at September 30, 2008 and $61.6 million at December 31, 2007. These loans are subject to 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 December 31, 2008, up $121.5 million from December 31, 2007. Core deposits were 64.08% of total deposits or $1.4 billion.
On December 31, 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 $89.7 million for 2008 compared to $92.6 million for 2007. Net interest margin for the year was 3.36% for 2008 compared to 4.20% 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 compression produced by governmental actions and market conditions. This margin compression offset significant positive effects on net interest income from our loan growth. The yields on earning assets decreased by 194 basis points from the prior year while our cost of funds decreased by only 139 basis points, resulting in a 55 basis point decline in net interest spread.
The provision for loan losses for 2008 was $19.0 million compared to $8.6 million for 2007. Net charge offs totaled $8.8 million, or 0.35% of portfolio loans, for the year ended December 31, 2008 versus net charge offs of $6.3 million, or 0.29% of portfolio loans for the prior year.
Noninterest income totaled $16.1 million in 2008, compared to $16.4 million for 2007. The slight decrease in noninterest income from 2007 was the result of a $682,000 decrease in gain on sale of investment securities and a $675,000 decrease in the gain on sale of loans, offset by a $1.1 million increase in service charges and fees.
Noninterest expense for 2008 was $62.5 million versus $65.5 million in 2007. The decrease from 2007 in noninterest expense is the result of a $3.2 million decrease in other general and administrative expenses, which reflects last year’s $2.5 million ATM-related write-off and Stillwater National’s estimated share, as a VISA issuing bank, of VISA USA litigation costs of $713,000; a $2.0 million decrease in personnel expense, and a $494,000 decrease in the provision for unfunded loan commitments, offset by a $1.5 million increase in FDIC and other insurance, a $1.0 million increase in occupancy expense, and a $204,000 increase in net other real estate expense.
The efficiency ratio improved to 59.03% for 2008 from 60.05% in 2007.
Fourth Quarter Results:Net interest income totaled $22.4 million for the fourth quarter of 2008 compared to $23.5 million for the fourth quarter of 2007. Net interest margin was 3.22% for the fourth quarter of 2008, 3.89% for the fourth quarter of 2007, and 3.39% for the third quarter of 2008. The yield on earning assets decreased by 207 basis points from the fourth quarter 2007 while rates paid on interest bearing liabilities decreased by only 169 basis points.
The provision for loan losses totaled $6.7 million for the fourth quarter of 2008 compared to $2.5 million for the fourth quarter of 2007. Net charge offs totaled $2.7 million, or 0.44% (annualized) of portfolio loans for the fourth quarter of 2008, compared to $1.2 million, or 0.22% (annualized) of portfolio loans at for the fourth quarter of 2007.
Noninterest income totaled $3.4 million for the fourth quarter of 2008 compared to $4.1 million for the same quarter of 2007. The decrease in noninterest income from 2007 was the result of a $301,000 decrease in gain on sale of investment securities, a $255,000 decrease in other noninterest income, and a $163,000 decrease in gain on sale of loans, offset in part by a $77,000 increase in service charges and fee income.
Noninterest expense decreased $3.9 million from the fourth quarter 2007 to the fourth quarter of 2008 to $13.8 million. The decrease consists of a $3.4 million decrease in personnel expense, which reflects the reversal of $2.4 million in bonus and profit sharing expense that was accrued during the first nine months of 2008; and a $1.1 million decrease in other general and administrative expenses, which includes a net reversal of $513,000 in the VISA USA litigation costs, a $434,000 reclassification of net deposit overdraft charge-offs and recoveries from
3
NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Earnings, Increased Capital
expenses to the provision for loan losses, and a $260,000 adjustment to loan origination expenses; offset in part by a $420,000 increase in FDIC and other insurance and a $304,000 increase in occupancy expense.
The efficiency ratio for the fourth quarter of 2008 improved to 53.37% from 64.02% for the fourth quarter of 2007.
Certain Legal Matters: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 in general and administrative expense and the related payable established in the fourth quarter 2007. In the fourth quarter Southwest increased the related payable by $200,000 as an increase to general and administrative expenses based on our review of outstanding litigation. 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, which is expected to occur in the first quarter of 2009. This merger has received regulatory approval and 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.
4
NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Earnings, Increased Capital
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 |
QUARTERLY HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | | |
| | | Fourth Quarter | | Third Quarter |
| | | | | | | | | | | % | | | | | | % |
| | | 2008 | | 2007 | | Change | | 2008 | | Change |
Operations | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 22,414 | | | $ | 23,536 | | | | (5 | )% | | $ | 23,188 | | | | (3 | )% |
| Provision for loan losses | | | 6,698 | | | | 2,464 | | | | 172 | | | | 6,855 | | | | (2 | ) |
| Noninterest income | | | 3,429 | | | | 4,071 | | | | (16 | ) | | | 4,062 | | | | (16 | ) |
| Noninterest expense | | | 13,793 | | | | 17,673 | | | | (22 | ) | | | 16,533 | | | | (17 | ) |
| Income before taxes | | | 5,352 | | | | 7,470 | | | | (28 | ) | | | 3,862 | | | | 39 | |
| Taxes on income | | | 2,127 | | | | 2,949 | | | | (28 | ) | | | 1,556 | | | | 37 | |
| Net income | | | 3,225 | | | | 4,521 | | | | (29 | ) | | | 2,306 | | | | 40 | |
| Diluted earnings per share | | | 0.20 | | | | 0.31 | | | | (35 | ) | | | 0.16 | | | | 25 | |
Balance Sheet | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 2,879,762 | | | | 2,564,298 | | | | 12 | | | | 2,832,371 | | | | 2 | |
| Loans held for sale | | | 56,941 | | | | 66,275 | | | | (14 | ) | | | 72,248 | | | | (21 | ) |
| Portfolio loans | | | 2,494,506 | | | | 2,145,557 | | | | 16 | | | | 2,440,091 | | | | 2 | |
| Total deposits | | | 2,180,122 | | | | 2,058,579 | | | | 6 | | | | 2,198,719 | | | | (1 | ) |
| Total shareholders’ equity | | | 302,203 | | | | 217,609 | | | | 39 | | | | 226,123 | | | | 34 | |
| Book value per share | | | 16.18 | | | | 15.16 | | | | 7 | | | | 15.56 | | | | 4 | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.22 | % | | | 3.89 | % | | | | | | | 3.39 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 53.37 | | | | 64.02 | | | | | | | | 60.67 | | | | | |
| Total capital to risk-weighted assets | | | 14.26 | | | | 10.97 | | | | | | | | 11.88 | | | | | |
| Nonperforming loans to portfolio loans | | | 2.56 | | | | 1.38 | | | | | | | | 2.62 | | | | | |
| Shareholders’ equity to total assets | | | 10.49 | | | | 8.49 | | | | | | | | 7.98 | | | | | |
| Return on average assets | | | 0.45 | | | | 0.72 | | | | | | | | 0.33 | | | | | |
| Return on average equity | | | 5.11 | | | | 8.24 | | | | | | | | 3.97 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
YEAR-TO-DATE HIGHLIGHTS
| | | | | | | | | | | | | |
| | | Twelve Months |
| | | | | | | | | | | % |
| | | 2008 | | 2007 | | Change |
Operations | | | | | | | | | | | | |
| Net interest income | | $ | 89,719 | | | $ | 92,597 | | | | (3 | )% |
| Provision for loan losses | | | 18,979 | | | | 8,581 | | | | 121 | |
| Noninterest income | | | 16,138 | | | | 16,433 | | | | (2 | ) |
| Noninterest expense | | | 62,488 | | | | 65,474 | | | | (5 | ) |
| Income before taxes | | | 24,390 | | | | 34,975 | | | | (30 | ) |
| Taxes on income | | | 9,489 | | | | 13,597 | | | | (30 | ) |
| Net income | | | 14,901 | | | | 21,378 | | | | (30 | ) |
| Diluted earnings per share | | | 1.00 | | | | 1.46 | | | | (32 | ) |
Balance Sheet | | | | | | | | | | | | |
| Total assets | | | 2,879,762 | | | | 2,564,298 | | | | 12 | |
| Loans held for sale | | | 56,941 | | | | 66,275 | | | | (14 | ) |
| Portfolio loans | | | 2,494,506 | | | | 2,145,557 | | | | 16 | |
| Total deposits | | | 2,180,122 | | | | 2,058,579 | | | | 6 | |
| Total shareholders’ equity | | | 302,203 | | | | 217,609 | | | | 39 | |
| Book value per share | | | 16.18 | | | | 15.16 | | | | 7 | |
Key Ratios | | | | | | | | | | | | |
| Net interest margin | | | 3.36 | % | | | 4.20 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 59.03 | | | | 60.05 | | | | | |
| Total capital to risk-weighted assets | | | 14.26 | | | | 10.97 | | | | | |
| Nonperforming loans to portfolio loans | | | 2.56 | | | | 1.38 | | | | | |
| Shareholders’ equity to total assets | | | 10.49 | | | | 8.49 | | | | | |
| Return on average assets | | | 0.54 | | | | 0.94 | | | | | |
| Return on average equity | | | 6.40 | | | | 10.19 | | | | | |
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 |
| | | | | | | | | |
| | | December 31, | | | December 31, | |
| | | 2008 | | | 2007 | |
Assets | | | | | | | | |
| Cash and due from banks | | $ | 27,287 | | | $ | 45,678 | |
| Investment securities: | | | | | | | | |
| Held to maturity. Fair value: $7,293 $5,838 | | | 7,343 | | | | 5,838 | |
| Available for sale. Amortized cost: $233,293 $232,880 | | | 238,037 | | | | 233,531 | |
| Other investments, at cost | | | 18,786 | | | | 17,239 | |
| Loans held for sale | | | 56,941 | | | | 66,275 | |
| | | | | | | | | |
| Loans receivable | | | 2,494,506 | | | | 2,145,557 | |
| Less: Allowance for loan losses | | | (39,773 | ) | | | (29,584 | ) |
| | | | | | | |
| Net loans receivable | | | 2,454,733 | | | | 2,115,973 | |
| Accrued interest receivable | | | 11,512 | | | | 23,117 | |
| Premises and equipment, net | | | 24,580 | | | | 24,323 | |
| Other real estate owned | | | 6,092 | | | | 2,679 | |
| Goodwill | | | 7,071 | | | | 7,064 | |
| Other intangible assets, net | | | 3,764 | | | | 4,580 | |
| Other assets | | | 23,616 | | | | 18,001 | |
| | | | | | | |
| Total assets | | $ | 2,879,762 | | | $ | 2,564,298 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | 261,940 | | | $ | 257,067 | |
| Interest-bearing demand | | | 76,027 | | | | 63,323 | |
| Money market accounts | | | 454,250 | | | | 541,950 | |
| Savings accounts | | | 14,135 | | | | 13,032 | |
| Time deposits of $100,000 or more | | | 802,244 | | | | 690,985 | |
| Other time deposits | | | 571,526 | | | | 492,222 | |
| | | | | | | |
| Total deposits | | | 2,180,122 | | | | 2,058,579 | |
| Accrued interest payable | | | 7,018 | | | | 11,441 | |
| Income tax payable | | | 3,651 | | | | 1,766 | |
| Other liabilities | | | 9,667 | | | | 10,154 | |
| Other borrowings | | | 295,138 | | | | 218,356 | |
| Subordinated debentures | | | 81,963 | | | | 46,393 | |
| | | | | | | | |
| Total liabilities | | | 2,577,559 | | | | 2,346,689 | |
| | | | | | | | | |
Shareholders’ equity | | | | | | | | |
| Series B preferred stock — $1 par value; 70,000 shares authorized and issued | | | 66,392 | | | | — | |
| Common stock — $1 par value; 20,000,000 shares authorized; 14,658,042 shares issued | | | 14,658 | | | | 14,658 | |
| Paid in capital | | | 49,101 | | | | 46,478 | |
| Retained earnings | | | 170,579 | | | | 161,482 | |
| Accumulated other comprehensive income | | | 2,921 | | | | 408 | |
| Treasury stock, at cost, 80,383 300,833 shares | | | (1,448 | ) | | | (5,417 | ) |
| | | | | | | |
| Total shareholders’ equity | | | 302,203 | | | | 217,609 | |
| | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,879,762 | | | $ | 2,564,298 | |
| | | | | | | |
| | |
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share) | | Table 3 |
| | | | | | | | | | | | | | | | | |
| | | For the three months | | | For the twelve months | |
| | | ended December 31, | | | ended December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Interest income | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,183 | | | $ | 43,549 | | | $ | 152,719 | | | $ | 165,759 | |
| Investment securities | | | 2,693 | | | | 2,713 | | | | 9,986 | | | | 11,055 | |
| Other interest-earning assets | | | 19 | | | | 35 | | | | 89 | | | | 254 | |
| Total interest income | | | 38,895 | | | | 46,297 | | | | 162,794 | | | | 177,068 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Interest expense | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 13,263 | | | | 19,199 | | | | 61,022 | | | | 73,139 | |
| Other borrowings | | | 1,487 | | | | 2,620 | | | | 7,242 | | | | 7,555 | |
| Subordinated debentures | | | 1,731 | | | | 942 | | | | 4,811 | | | | 3,777 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 16,481 | | | | 22,761 | | | | 73,075 | | | | 84,471 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income | | | 22,414 | | | | 23,536 | | | | 89,719 | | | | 92,597 | |
| | | | | | | | | | | | | | | | | |
| Provision for loan losses | | | 6,698 | | | | 2,464 | | | | 18,979 | | | | 8,581 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 15,716 | | | | 21,072 | | | | 70,740 | | | | 84,016 | |
| | | | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,908 | | | | 2,831 | | | | 11,026 | | | | 9,920 | |
| Gain on sales of loans | | | 620 | | | | 783 | | | | 2,664 | | | | 3,339 | |
| Gain (loss) on investment securities | | | (296 | ) | | | 5 | | | | 902 | | | | 1,584 | |
| Other noninterest income | | | 197 | | | | 452 | | | | 1,546 | | | | 1,590 | |
| | | | | | | | | | | | | |
| Total noninterest income | | | 3,429 | | | | 4,071 | | | | 16,138 | | | | 16,433 | |
| | | | | | | | | | | | | | | | | |
Noninterest expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 6,389 | | | | 9,838 | | | | 33,330 | | | | 35,287 | |
| Occupancy | | | 2,844 | | | | 2,540 | | | | 10,872 | | | | 9,845 | |
| FDIC and other insurance | | | 645 | | | | 225 | | | | 2,088 | | | | 622 | |
| Other real estate, net | | | 31 | | | | 64 | | | | 146 | | | | (58 | ) |
| General and administrative | | | 3,884 | | | | 5,006 | | | | 16,052 | | | | 19,778 | |
| | | | | | | | | | | | | |
| Total noninterest expenses | | | 13,793 | | | | 17,673 | | | | 62,488 | | | | 65,474 | |
| | | | | | | | | | | | | |
| Income before taxes | | | 5,352 | | | | 7,470 | | | | 24,390 | | | | 34,975 | |
| Taxes on income | | | 2,127 | | | | 2,949 | | | | 9,489 | | | | 13,597 | |
| | | | | | | | | | | | | |
| Net income | | $ | 3,225 | | | $ | 4,521 | | | $ | 14,901 | | | $ | 21,378 | |
| | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 2,982 | | | $ | 4,521 | | | $ | 14,658 | | | $ | 21,378 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.21 | | | $ | 0.32 | | | $ | 1.01 | | | $ | 1.49 | |
| Diluted earnings per common share | | | 0.20 | | | | 0.31 | | | | 1.00 | | | | 1.46 | |
| Common dividends declared per share | | | 0.0950 | | | | 0.0925 | | | | 0.3800 | | | | 0.3700 | |
| | |
| SOUTHWEST BANCORP, INC. | | Table 4 |
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | | |
| (Dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended December 31, | |
| | | 2008 | | | 2007 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 2,512,425 | | | $ | 36,183 | | | | 5.73 | % | | $ | 2,121,088 | | | $ | 43,549 | | | | 8.15 | % |
| Investment securities | | | 249,846 | | | | 2,693 | | | | 4.29 | | | | 274,805 | | | | 2,713 | | | | 3.92 | |
| Other interest-earning assets | | | 5,116 | | | | 19 | | | | 1.48 | | | | 2,736 | | | | 35 | | | | 5.08 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,767,387 | | | | 38,895 | | | | 5.59 | | | | 2,398,629 | | | | 46,297 | | | | 7.66 | |
| Other assets | | | 68,822 | | | | | | | | | | | | 76,459 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,836,209 | | | | | | | | | | | $ | 2,475,088 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 76,359 | | | $ | 130 | | | | 0.68 | % | | $ | 61,061 | | | $ | 94 | | | | 0.61 | % |
| Money market accounts | | | 513,095 | | | | 2,132 | | | | 1.65 | | | | 510,596 | | | | 5,370 | | | | 4.17 | |
| Savings accounts | | | 14,375 | | | | 11 | | | | 0.30 | | | | 13,694 | | | | 22 | | | | 0.64 | |
| Time deposits | | | 1,300,295 | | | | 10,990 | | | | 3.36 | | | | 1,121,143 | | | | 13,713 | | | | 4.85 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 1,904,124 | | | | 13,263 | | | | 2.77 | | | | 1,706,494 | | | | 19,199 | | | | 4.46 | |
| Other borrowings | | | 297,155 | | | | 1,487 | | | | 1.99 | | | | 225,703 | | | | 2,620 | | | | 4.61 | |
| Subordinated debentures | | | 81,963 | | | | 1,731 | | | | 8.45 | | | | 46,393 | | | | 942 | | | | 8.12 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,283,242 | | | | 16,481 | | | | 2.87 | | | | 1,978,590 | | | | 22,761 | | | | 4.56 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 279,268 | | | | | | | | | | | | 255,651 | | | | | | | | | |
| Other liabilities | | | 22,693 | | | | | | | | | | | | 23,066 | | | | | | | | | |
| Shareholders’ equity | | | 251,006 | | | | | | | | | | | | 217,781 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,836,209 | | | | | | | | | | | $ | 2,475,088 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 22,414 | | | | 2.72 | % | | | | | | $ | 23,536 | | | | 3.10 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.22 | % | | | | | | | | | | | 3.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 121.20 | % | | | | | | | | | | | 121.23 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| SOUTHWEST BANCORP, INC. | | Table 5 |
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | | |
| (Dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the twelve months ended December 31, | |
| | | 2008 | | | 2007 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 2,429,129 | | | $ | 152,719 | | | | 6.29 | % | | $ | 1,922,867 | | | $ | 165,759 | | | | 8.62 | % |
| Investment securities | | | 238,653 | | | | 9,986 | | | | 4.18 | | | | 277,263 | | | | 11,055 | | | | 3.99 | |
| Other interest-earning assets | | | 3,854 | | | | 89 | | | | 2.31 | | | | 5,136 | | | | 254 | | | | 4.95 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,671,636 | | | | 162,794 | | | | 6.09 | | | | 2,205,266 | | | | 177,068 | | | | 8.03 | |
| Other assets | | | 71,263 | | | | | | | | | | | | 74,159 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,742,899 | | | | | | | | | | | $ | 2,279,425 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 75,950 | | | $ | 584 | | | | 0.77 | % | | $ | 62,038 | | | $ | 355 | | | | 0.57 | % |
| Money market accounts | | | 538,148 | | | | 12,620 | | | | 2.35 | | | | 449,266 | | | | 19,664 | | | | 4.38 | |
| Savings accounts | | | 13,930 | | | | 69 | | | | 0.50 | | | | 12,274 | | | | 87 | | | | 0.71 | |
| Time deposits | | | 1,253,057 | | | | 47,749 | | | | 3.81 | | | | 1,071,788 | | | | 53,033 | | | | 4.95 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 1,881,085 | | | | 61,022 | | | | 3.24 | | | | 1,595,366 | | | | 73,139 | | | | 4.58 | |
| Other borrowings | | | 274,106 | | | | 7,242 | | | | 2.64 | | | | 161,684 | | | | 7,555 | | | | 4.67 | |
| Subordinated debentures | | | 64,064 | | | | 4,811 | | | | 7.51 | | | | 46,393 | | | | 3,777 | | | | 8.14 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,219,255 | | | | 73,075 | | | | 3.29 | | | | 1,803,443 | | | | 84,471 | | | | 4.68 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 268,770 | | | | | | | | | | | | 244,459 | | | | | | | | | |
| Other liabilities | | | 22,043 | | | | | | | | | | | | 21,638 | | | | | | | | | |
| Shareholders’ equity | | | 232,831 | | | | | | | | | | | | 209,885 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,742,899 | | | | | | | | | | | $ | 2,279,425 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 89,719 | | | | 2.80 | % | | | | | | $ | 92,597 | | | | 3.35 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.36 | % | | | | | | | | | | | 4.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 120.38 | % | | | | | | | | | | | 122.28 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| | | |
SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | Table 6 |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2008 | | | 2007 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,183 | | | $ | 38,441 | | | $ | 37,485 | | | $ | 40,610 | | | $ | 43,549 | | | $ | 42,346 | | | $ | 39,578 | | | $ | 40,286 | |
| Investment securities | | | 2,693 | | | | 2,531 | | | | 2,426 | | | | 2,336 | | | | 2,713 | | | | 2,816 | | | | 2,847 | | | | 2,679 | |
| Other interest-earning assets | | | 19 | | | | 22 | | | | 20 | | | | 28 | | | | 35 | | | | 39 | | | | 115 | | | | 65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 38,895 | | | | 40,994 | | | | 39,931 | | | | 42,974 | | | | 46,297 | | | | 45,201 | | | | 42,540 | | | | 43,030 | |
Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 130 | | | | 147 | | | | 166 | | | | 141 | | | | 94 | | | | 82 | | | | 98 | | | | 81 | |
| Money market accounts | | | 2,132 | | | | 2,898 | | | | 3,062 | | | | 4,528 | | | | 5,370 | | | | 5,589 | | | | 4,743 | | | | 3,962 | |
| Savings accounts | | | 11 | | | | 17 | | | | 19 | | | | 22 | | | | 22 | | | | 24 | | | | 21 | | | | 20 | |
| Time deposits of $100,000 or more | | | 6,419 | | | | 6,879 | | | | 7,051 | | | | 7,865 | | | | 7,873 | | | | 7,445 | | | | 7,781 | | | | 8,132 | |
| Other time deposits | | | 4,571 | | | | 4,457 | | | | 4,809 | | | | 5,698 | | | | 5,840 | | | | 5,684 | | | | 5,250 | | | | 5,028 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 13,263 | | | | 14,398 | | | | 15,107 | | | | 18,254 | | | | 19,199 | | | | 18,824 | | | | 17,893 | | | | 17,223 | |
| Other borrowings | | | 1,487 | | | | 1,839 | | | | 1,887 | | | | 2,029 | | | | 2,620 | | | | 1,715 | | | | 1,089 | | | | 2,131 | |
| Subordinated debentures | | | 1,731 | | | | 1,569 | | | | 653 | | | | 858 | | | | 942 | | | | 956 | | | | 946 | | | | 933 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 16,481 | | | | 17,806 | | | | 17,647 | | | | 21,141 | | | | 22,761 | | | | 21,495 | | | | 19,928 | | | | 20,287 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 22,414 | | | | 23,188 | | | | 22,284 | | | | 21,833 | | | | 23,536 | | | | 23,706 | | | | 22,612 | | | | 22,743 | |
| Provision for loan losses | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | | | | 2,464 | | | | 2,149 | | | | 2,107 | | | | 1,861 | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,908 | | | | 2,849 | | | | 2,812 | | | | 2,457 | | | | 2,831 | | | | 2,548 | | | | 2,306 | | | | 2,235 | |
| Gain on sales of loans | | | 620 | | | | 601 | | | | 603 | | | | 840 | | | | 783 | | | | 548 | | | | 800 | | | | 1,208 | |
| Gain (loss) on investment securities | | | (296 | ) | | | (50 | ) | | | 3 | | | | 1,245 | | | | 5 | | | | 108 | | | | 1,919 | | | | (448 | ) |
| Other noninterest income | | | 197 | | | | 662 | | | | 541 | | | | 146 | | | | 452 | | | | 422 | | | | 400 | | | | 316 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest income | | | 3,429 | | | | 4,062 | | | | 3,959 | | | | 4,688 | | | | 4,071 | | | | 3,626 | | | | 5,425 | | | | 3,311 | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 6,389 | | | | 8,863 | | | | 8,856 | | | | 9,222 | | | | 9,838 | | | | 8,966 | | | | 8,358 | | | | 8,125 | |
| Occupancy | | | 2,844 | | | | 2,968 | | | | 2,602 | | | | 2,458 | | | | 2,540 | | | | 2,514 | | | | 2,388 | | | | 2,403 | |
| FDIC and other insurance | | | 645 | | | | 469 | | | | 521 | | | | 453 | | | | 225 | | | | 134 | | | | 140 | | | | 123 | |
| Other real estate, net | | | 31 | | | | (92 | ) | | | 197 | | | | 10 | | | | 64 | | | | (12 | ) | | | (41 | ) | | | (69 | ) |
| Unfunded loan commitments | | | 385 | | | | 90 | | | | 15 | | | | 145 | | | | 368 | | | | 675 | | | | 151 | | | | (65 | ) |
| Other general and administrative | | | 3,499 | | | | 4,235 | | | | 4,141 | | | | 3,542 | | | | 4,638 | | | | 3,885 | | | | 3,812 | | | | 6,314 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 13,793 | | | | 16,533 | | | | 16,332 | | | | 15,830 | | | | 17,673 | | | | 16,162 | | | | 14,808 | | | | 16,831 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before taxes | | | 5,352 | | | | 3,862 | | | | 6,721 | | | | 8,455 | | | | 7,470 | | | | 9,021 | | | | 11,122 | | | | 7,362 | |
| Taxes on income | | | 2,127 | | | | 1,556 | | | | 2,559 | | | | 3,247 | | | | 2,949 | | | | 3,505 | | | | 4,281 | | | | 2,862 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | | | $ | 4,521 | | | $ | 5,516 | | | $ | 6,841 | | | $ | 4,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 2,982 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | | | $ | 4,521 | | | $ | 5,516 | | | $ | 6,841 | | | $ | 4,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.21 | | | $ | 0.16 | | | $ | 0.29 | | | $ | 0.36 | | | $ | 0.32 | | | $ | 0.38 | | | $ | 0.48 | | | $ | 0.32 | |
| Diluted earnings per common share | | | 0.20 | | | | 0.16 | | | | 0.28 | | | | 0.36 | | | | 0.31 | | | | 0.38 | | | | 0.47 | | | | 0.31 | |
| Common dividends declared per share | | | 0.9500 | | | | 0.0950 | | | | 0.0950 | | | | 0.0950 | | | | 0.0925 | | | | 0.0925 | | | | 0.0925 | | | | 0.0925 | |
| Book value per share | | | 16.18 | | | | 15.56 | | | | 15.49 | | | | 15.43 | | | | 15.16 | | | | 14.92 | | | | 14.53 | | | | 14.14 | |
| Tangible book value per share | | | 15.69 | | | | 15.08 | | | | 15.00 | | | | 14.95 | | | | 14.66 | | | | 14.45 | | | | 14.44 | | | | 14.05 | |
| Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 14,540,733 | | | | 14,527,893 | | | | 14,526,038 | | | | 14,413,686 | | | | 14,353,910 | | | | 14,335,008 | | | | 14,299,111 | | | | 14,263,698 | |
| Diluted | | | 14,673,616 | | | | 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 | | $ | 264,166 | | | $ | 241,728 | | | $ | 234,429 | | | $ | 236,059 | | | $ | 256,608 | | | $ | 293,518 | | | $ | 278,330 | | | $ | 274,402 | |
| Loans held for sale | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | | | | 66,275 | | | | 78,417 | | | | 73,011 | | | | 108,025 | |
| Portfolio loans | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | | | | 2,145,557 | | | | 1,933,223 | | | | 1,769,528 | | | | 1,667,195 | |
| Total loans | | | 2,551,447 | | | | 2,512,339 | | | | 2,444,785 | | | | 2,353,970 | | | | 2,211,832 | | | | 2,011,640 | | | | 1,842,539 | | | | 1,775,220 | |
| Total assets | | | 2,879,762 | | | | 2,832,371 | | | | 2,773,013 | | | | 2,670,580 | | | | 2,564,298 | | | | 2,386,852 | | | | 2,196,005 | | | | 2,194,179 | |
| Total deposits | | | 2,180,122 | | | | 2,198,719 | | | | 2,211,001 | | | | 2,094,927 | | | | 2,058,579 | | | | 1,912,719 | | | | 1,823,806 | | | | 1,803,181 | |
| Other borrowings | | | 295,138 | | | | 299,118 | | | | 265,614 | | | | 282,513 | | | | 218,356 | | | | 190,847 | | | | 95,561 | | | | 123,212 | |
| Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 46,393 | | | | 46,393 | | | | 46,393 | | | | 46,393 | | | | 46,393 | | | | 46,393 | |
| Total shareholders’ equity | | | 302,203 | | | | 226,123 | | | | 224,949 | | | | 224,155 | | | | 217,609 | | | | 213,838 | | | | 208,185 | | | | 201,777 | |
| Mortgage servicing portfolio | | | 158,143 | | | | 153,250 | | | | 147,672 | | | | 145,028 | | | | 141,680 | | | | 136,294 | | | | 134,444 | | | | 134,259 | |
Continued
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 6 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | Continued |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2008 | | | 2007 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.45 | % | | | 0.33 | % | | | 0.62 | % | | | 0.80 | % | | | 0.72 | % | | | 0.96 | % | | | 1.28 | % | | | 0.83 | % |
| Return on average common equity (annualized) | | | 5.15 | | | | 3.97 | | | | 7.38 | | | | 9.43 | | | | 8.24 | | | | 10.29 | | | | 13.26 | | | | 9.04 | |
| Return on average tangible equity (annualized) | | | 5.79 | | | | 4.26 | | | | 7.86 | | | | 9.94 | | | | 8.86 | | | | 10.88 | | | | 13.70 | | | | 9.23 | |
| Net interest margin | | | 3.22 | | | | 3.39 | | | | 3.38 | | | | 3.45 | | | | 3.89 | | | | 4.25 | | | | 4.36 | | | | 4.34 | |
| Total dividends declared to net income | | | 50.49 | | | | 59.85 | | | | 33.16 | | | | 26.37 | | | | 29.37 | | | | 24.04 | | | | 19.37 | | | | 29.32 | |
| Effective tax rate | | | 39.74 | | | | 40.29 | | | | 38.07 | | | | 38.40 | | | | 39.48 | | | | 38.85 | | | | 38.49 | | | | 38.88 | |
| Efficiency ratio | | | 53.37 | | | | 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 | | | 2.80 | % | | | 2.72 | % | | | 1.45 | % | | | 1.41 | % | | | 1.50 | % | | | 1.59 | % | | | 1.45 | % | | | 1.88 | % |
| Nonperforming loans to portfolio loans | | | 2.56 | | | | 2.62 | | | | 1.35 | | | | 1.27 | | | | 1.38 | | | | 1.50 | | | | 1.37 | | | | 1.77 | |
| Net loan charge-offs to portfolio loans | | | 0.44 | | | | 0.39 | | | | 0.30 | | | | 0.33 | | | | 0.22 | | | | 0.39 | | | | 0.40 | | | | 0.35 | |
| Allowance for loan losses to total loans | | | 1.56 | | | | 1.43 | | | | 1.28 | | | | 1.27 | | | | 1.34 | | | | 1.41 | | | | 1.52 | | | | 1.56 | |
| Allowance for loan losses to portfolio loans | | | 1.59 | | | | 1.47 | | | | 1.32 | | | | 1.31 | | | | 1.38 | | | | 1.46 | | | | 1.59 | | | | 1.66 | |
| Allowance for loan losses to nonperforming loans | | | 62.16 | | | | 56.07 | | | | 97.62 | | | | 103.49 | | | | 100.04 | | | | 97.32 | | | | 115.65 | | | | 94.18 | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average total shareholders’ equity to average assets | | | 8.85 | % | | | 8.26 | % | | | 8.35 | % | | | 8.49 | % | | | 8.80 | % | | | 9.30 | % | | | 9.64 | % | | | 9.15 | % |
| Leverage ratio | | | 13.06 | | | | 10.51 | | | | 9.66 | | | | 9.91 | | | | 10.23 | | | | 10.92 | | | | 11.73 | | | | 11.12 | |
| Tier 1 capital to risk-weighted assets | | | 13.01 | | | | 10.49 | | | | 9.40 | | | | 9.47 | | | | 9.71 | | | | 10.49 | | | | 11.84 | | | | 12.44 | |
| Total capital to risk-weighted assets | | | 14.26 | | | | 11.88 | | | | 10.65 | | | | 10.69 | | | | 10.97 | | | | 11.76 | | | | 13.13 | | | | 13.68 | |
LOANS BY SEGMENT** | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 966,243 | | | $ | 962,611 | | | $ | 965,952 | | | $ | 943,331 | | | $ | 876,085 | | | $ | 844,859 | | | $ | 804,906 | | | $ | 766,990 | |
| Texas banking | | | 947,603 | | | | 892,998 | | | | 857,160 | | | | 797,700 | | | | 759,389 | | | | 644,749 | | | | 567,236 | | | | 507,384 | |
| Kansas banking | | | 304,855 | | | | 288,268 | | | | 277,887 | | | | 287,339 | | | | 282,846 | | | | 251,131 | | | | 198,228 | | | | 206,405 | |
| Other states banking | | | 275,805 | | | | 296,214 | | | | 280,894 | | | | 259,236 | | | | 227,237 | | | | 192,484 | | | | 199,158 | | | | 186,416 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | | | | 2,145,557 | | | | 1,933,223 | | | | 1,769,528 | | | | 1,667,195 | |
| Secondary market | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | | | | 66,275 | | | | 78,417 | | | | 73,011 | | | | 108,025 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 2,551,447 | | | $ | 2,512,339 | | | $ | 2,444,785 | | | $ | 2,353,970 | | | $ | 2,211,832 | | | $ | 2,011,640 | | | $ | 1,842,539 | | | $ | 1,775,220 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NET INCOME BY SEGMENT** | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 3,783 | | | $ | 3,295 | | | $ | 2,923 | | | $ | 2,503 | | | $ | 3,080 | | | $ | 3,759 | | | $ | 4,820 | | | $ | 4,278 | |
| Texas banking | | | 2,036 | | | | 1,332 | | | | 1,777 | | | | 2,406 | | | | 1,701 | | | | 1,638 | | | | 1,568 | | | | 1,643 | |
| Kansas banking | | | (204 | ) | | | (1,336 | ) | | | (40 | ) | | | 458 | | | | 82 | | | | 243 | | | | 326 | | | | 208 | |
| Other states banking | | | (89 | ) | | | 848 | | | | 1,028 | | | | 969 | | | | 225 | | | | 768 | | | | 930 | | | | 240 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 5,526 | | | | 4,139 | | | | 5,688 | | | | 6,336 | | | | 5,088 | | | | 6,408 | | | | 7,644 | | | | 6,369 | |
| Secondary market | | | 139 | | | | (149 | ) | | | 40 | | | | (174 | ) | | | 114 | | | | 33 | | | | 197 | | | | 753 | |
| Other operations | | | (2,440 | ) | | | (1,684 | ) | | | (1,566 | ) | | | (954 | ) | | | (681 | ) | | | (925 | ) | | | (1,000 | ) | | | (2,622 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | | | $ | 4,521 | | | $ | 5,516 | | | $ | 6,841 | | | $ | 4,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
OFFICES AND EMPLOYEES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FTE Employees | | | 442 | | | | 458 | | | | 463 | | | | 467 | | | | 489 | | | | 484 | | | | 457 | | | | 443 | |
| ATM’s | | | 41 | | | | 41 | | | | 40 | | | | 40 | | | | 43 | | | | 43 | | | | 38 | | | | 39 | |
| Branches | | | 18 | | | | 18 | | | | 17 | | | | 17 | | | | 17 | | | | 17 | | | | 15 | | | | 15 | |
| Loan production offices | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | |
| Assets per employee | | $ | 6,515 | | | $ | 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.
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | | Table 7 |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2008 | | | 2007 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
LOAN COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 1,118,828 | | | $ | 1,077,601 | | | $ | 991,679 | | | $ | 846,757 | | | $ | 750,047 | | | $ | 608,409 | | | $ | 564,813 | | | $ | 582,440 | |
| One-to-four family residential | | | 113,665 | | | | 116,270 | | | | 118,056 | | | | 110,938 | | | | 111,085 | | | | 112,407 | | | | 90,916 | | | | 83,312 | |
| Real estate construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 579,795 | | | | 554,496 | | | | 583,784 | | | | 654,039 | | | | 643,656 | | | | 584,338 | | | | 550,997 | | | | 453,199 | |
| One-to-four family residential | | | 79,565 | | | | 79,843 | | | | 82,972 | | | | 90,051 | | | | 81,273 | | | | 74,876 | | | | 66,996 | | | | 64,000 | |
| Commercial | | | 564,670 | | | | 574,087 | | | | 566,830 | | | | 544,183 | | | | 521,501 | | | | 517,658 | | | | 465,588 | | | | 457,838 | |
| Installment and consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Guaranteed student loans | | | 54,057 | | | | 67,610 | | | | 57,413 | | | | 63,706 | | | | 61,555 | | | | 73,810 | | | | 68,117 | | | | 101,905 | |
| Other | | | 40,867 | | | | 42,432 | | | | 44,051 | | | | 44,296 | | | | 42,715 | | | | 40,142 | | | | 35,112 | | | | 32,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans, including held for sale | | | 2,551,447 | | | | 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 | | | (39,773 | ) | | | (35,807 | ) | | | (31,341 | ) | | | (29,950 | ) | | | (29,584 | ) | | | (28,314 | ) | | | (28,054 | ) | | | (27,728 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans, net | | $ | 2,511,674 | | | $ | 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 | | $ | 54,057 | | | $ | 67,610 | | | $ | 57,413 | | | $ | 63,706 | | | $ | 61,555 | | | $ | 73,810 | | | $ | 68,117 | | | $ | 101,905 | |
| One-to-four family residential | | | 1,790 | | | | 3,500 | | | | 4,283 | | | | 1,417 | | | | 3,442 | | | | 3,293 | | | | 3,382 | | | | 4,113 | |
| Other | | | 1,094 | | | | 1,138 | | | | 1,196 | | | | 1,241 | | | | 1,278 | | | | 1,314 | | | | 1,512 | | | | 2,007 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans held for sale | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | | | | 66,275 | | | | 78,417 | | | | 73,011 | | | | 108,025 | |
| Portfolio loans | | | 2,494,506 | | | | 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 | | $ | 2,551,447 | | | $ | 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 | | $ | 261,940 | | | $ | 280,453 | | | $ | 299,699 | | | $ | 248,315 | | | $ | 257,067 | | | $ | 261,634 | | | $ | 248,285 | | | $ | 251,777 | |
| Interest-bearing demand | | | 76,027 | | | | 70,471 | | | | 81,415 | | | | 71,450 | | | | 63,323 | | | | 63,145 | | | | 63,758 | | | | 63,741 | |
| Money market accounts | | | 454,250 | | | | 554,357 | | | | 548,099 | | | | 553,850 | | | | 541,950 | | | | 505,192 | | | | 487,096 | | | | 394,668 | |
| Savings accounts | | | 14,135 | | | | 14,452 | | | | 13,809 | | | | 13,808 | | | | 13,032 | | | | 14,830 | | | | 11,017 | | | | 11,196 | |
| Time deposits of $100,000 or more | | | 802,244 | | | | 731,773 | | | | 740,174 | | | | 690,421 | | | | 690,985 | | | | 580,850 | | | | 571,584 | | | | 646,668 | |
| Other time deposits | | | 571,526 | | | | 547,213 | | | | 527,805 | | | | 517,083 | | | | 492,222 | | | | 487,068 | | | | 442,066 | | | | 435,131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | $ | 2,180,122 | | | $ | 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 | | $ | 59,310 | | | $ | 61,557 | | | $ | 30,861 | | | $ | 26,134 | | | $ | 19,534 | | | $ | 26,291 | | | $ | 22,633 | | | $ | 26,978 | |
| 90 days past due and accruing | | | 4,673 | | | | 2,299 | | | | 1,242 | | | | 2,807 | | | | 10,037 | | | | 2,803 | | | | 1,625 | | | | 2,462 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 63,983 | | | | 63,856 | | | | 32,103 | | | | 28,941 | | | | 29,571 | | | | 29,094 | | | | 24,258 | | | | 29,440 | |
| Other real estate owned | | | 6,092 | | | | 2,685 | | | | 2,523 | | | | 3,328 | | | | 2,679 | | | | 1,654 | | | | 1,508 | | | | 1,869 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming assets | | $ | 70,075 | | | $ | 66,541 | | | $ | 34,626 | | | $ | 32,269 | | | $ | 32,250 | | | $ | 30,748 | | | $ | 25,766 | | | $ | 31,309 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Potential nonperforming loans | | $ | 131,516 | | | $ | 86,070 | | | $ | 71,070 | | | $ | 69,588 | | | $ | 61,633 | | | $ | 70,389 | | | $ | 69,595 | | | $ | 52,335 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ALLOWANCE ACTIVITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | | | $ | 29,584 | | | $ | 28,314 | | | $ | 28,054 | | | $ | 27,728 | | | $ | 27,293 | |
| Charge offs | | | 3,254 | | | | 2,752 | | | | 1,892 | | | | 2,044 | | | | 1,290 | | | | 2,105 | | | | 1,875 | | | | 1,728 | |
| Recoveries | | | 522 | | | | 363 | | | | 93 | | | | 174 | | | | 96 | | | | 216 | | | | 94 | | | | 302 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net charge offs | | | 2,732 | | | | 2,389 | | | | 1,799 | | | | 1,870 | | | | 1,194 | | | | 1,889 | | | | 1,781 | | | | 1,426 | |
| Provision for loan losses | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | | | | 2,464 | | | | 2,149 | | | | 2,107 | | | | 1,861 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 39,773 | | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | | | $ | 29,584 | | | $ | 28,314 | | | $ | 28,054 | | | $ | 27,728 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
REGULATORY CAPITAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 369,049 | | | $ | 293,141 | | | $ | 261,354 | | | $ | 258,272 | | | $ | 251,980 | | | $ | 248,961 | | | $ | 251,460 | | | $ | 244,862 | |
| Total capital | | | 404,695 | | | | 332,012 | | | | 296,166 | | | | 291,638 | | | | 284,730 | | | | 279,031 | | | | 278,799 | | | | 269,513 | |
| Total risk adjusted assets | | | 2,837,473 | | | | 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 | | | | 14,658,042 | |
| Less treasury shares | | | (80,383 | ) | | | (129,586 | ) | | | (131,566 | ) | | | (133,605 | ) | | | (300,833 | ) | | | (321,991 | ) | | | (329,570 | ) | | | (385,632 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding shares | | | 14,577,659 | | | | 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 | | | $ | 7,071 | | | $ | 7,064 | | | $ | 6,742 | | | $ | 1,213 | | | $ | 1,213 | |
| Core deposit intangible | | | 2,596 | | | | 2,693 | | | | 2,792 | | | | 2,893 | | | | 3,053 | | | | 2,879 | | | | 1,466 | | | | 1,531 | |
| Mortgage servicing rights | | | 1,159 | | | | 1,417 | | | | 1,354 | | | | 1,299 | | | | 1,513 | | | | 1,440 | | | | 1,428 | | | | 1,413 | |
| Nonmortgage servicing rights | | | 9 | | | | 10 | | | | 11 | | | | 13 | | | | 14 | | | | 16 | | | | 32 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total intangible assets | | $ | 10,835 | | | $ | 11,191 | | | $ | 11,228 | | | $ | 11,276 | | | $ | 11,644 | | | $ | 11,077 | | | $ | 4,139 | | | $ | 4,194 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Intangible amortization expense | | $ | 214 | | | $ | 212 | | | $ | 215 | | | $ | 257 | | | $ | 159 | | | $ | 161 | | | $ | 165 | | | $ | 162 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| Balance sheet amounts are as of period end unless otherwise noted. |
