Exhibit 99
| | | | | |
| | | For additional information: |
| | | | | Rick Green |
| | | | | President & CEO |
| | | | | Kerby E. Crowell |
| | | | | EVP & CFO |
For Immediate Release | | | | (405) 372-2230 |
Southwest Bancorp Reports Second Quarter Earnings of $0.33 per Common Share
August 6, 2009, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $4.9 million, or $0.33 per diluted share for the second quarter 2009, compared to $4.2 million, or $0.28 per diluted share for the second quarter of 2008. Net income available to common shareholders for the six months ended June 30, 2009 was $5.2 million, or $0.35 per diluted share, compared to $9.4 million, or $0.64 per diluted shares, for the prior year. At June 30, 2009, total assets were $3.0 billion. The second quarter results reflect $3.3 million in other income recorded on an FDIC-assisted acquisition in Kansas and $1.9 million in interest income recorded upon our successful resolution of a large problem credit.
Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “An important element of our strategic vision calls for careful expansion of community banking operations in Kansas, Oklahoma, and Texas. In 2007, we acquired Bank of Kansas, headquartered in the Hutchinson market. This year, Bank of Kansas acquired assets and assumed liabilities of First National Bank of Anthony (“FNBA”), Anthony, Kansas, in an FDIC-assisted transaction with loss sharing. The loss sharing agreement requires the FDIC to cover 80% of any net losses on covered loans and related assets up to $35.0 million, and 95% of net losses above $35.0 million. In June, we recorded a one-time pre-tax gain of $3.3 million as a result of fair value accounting for the transaction using outside valuations of the acquired assets and assumed deposits. We anticipate that this transaction will be accretive to future earnings, but we cannot estimate the timing or amount of this accretion.
“The new Kansas acquisition gives Bank of Kansas six additional community banking offices in Kansas, $117.1 million in loans and $135.0 million in deposits. The acquired loans include our current estimate of $33.1 million loss share receivable from the FDIC.
“In the first half of 2009, we increased portfolio loans (excluding FNBA portfolio loans) by $95.9 million, up 4%, from year-end 2008, and increased our core deposits (total deposits less time deposits of $100,000 or more and brokered deposits) by $67.1 million, up 5% (excluding FNBA core deposits). At June 30, 2009, our shareholders’ equity totaled $305.4 million, up $3.2 million, or 1%, from year-end 2008, and our capital ratios exceeded the levels for regulatory classification as “well-capitalized”.
“Nonperforming assets (excluding FNBA nonperforming assets) were essentially unchanged from March 31, 2009 at $88.2 million.”
Please review the following “Financial Overview” and the accompanying tables for important additional information regarding our results and plans.
Financial Overview
Condition: Total assets were $3.0 billion at June 30, 2009, an increase of 6% from December 31, 2008. At June 30, 2009 total loans were $2.7 billion, an increase of 7% from December 31, 2008.
At June 30, 2009, the allowance for loan losses was $51.8 million, up 65% from June 30, 2008 and up 30% from year-end 2008; and represented 1.91% of portfolio loans versus 1.32% at June 30, 2008 and 1.59% at December 31, 2008. The methodology used to determine the appropriate amount of the allowance for loan losses at
NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Second Quarter Earnings of $0.33 per Common Share
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. For the six months ended June 30, 2009, the provision for loan losses increased by $12.9 million, or 238%, over the provision for the comparable period ended June 30, 2008.
Nonperforming assets to portfolio loans and other real estate owned were 3.83% at June 30, 2009 compared to 1.45% at June 30, 2008 and 2.80% at December 31, 2008. A breakdown of portfolio loans and nonperforming assets by type are shown in the following table:
| | | | | | | | | | | | | | | | | |
| | | | | | | Percentage of | | | | | | | Percentage of | |
| | | Portfolio | | | total portfolio | | | Nonperforming | | | nonperforming | |
| (dollars in thousands) | | loans | | | loans | | | assets | | | assets | |
| Real estate construction | | $ | 739,433 | | | | 27.34 | % | | $ | 42,977 | | | | 41.40 | % |
| Commercial real estate | | | 1,223,496 | | | | 45.24 | | | | 30,253 | | | | 29.14 | |
| Commercial | | | 569,336 | | | | 21.06 | | | | 11,022 | | | | 10.62 | |
| Other real estate owned | | | — | | | | — | | | | 8,941 | | | | 8.61 | |
| Residential real estate mortgages | | | 126,887 | | | | 4.69 | | | | 10,320 | | | | 9.94 | |
| Other consumer loans | | | 45,174 | | | | 1.67 | | | | 307 | | | | 0.29 | |
| | | | | | | | | | | | | |
| Total | | $ | 2,704,326 | | | | 100.00 | % | | $ | 103,820 | | | | 100.00 | % |
Included above are $15.6 million of nonperforming assets acquired from FNBA, which are subject to protection under the existing loss share agreements. Nonaccrual loans, which are the majority of nonperforming assets, were $82.8 million as of June 30, 2009, an increase of $9.4 million from March 31, 2009 and $23.5 million from December 31, 2008. These loans are carried at their estimated collectible amounts and no longer accrue interest. Loans 90 days or more past due, another component of nonperforming assets, increased $1.5 million from March 31, 2009 and increased $7.4 million from December 31, 2008. These loans are deemed to have sufficient collateral and are in the process of being collected. 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 continued ability of the borrowers to comply with the present loan repayment terms in future periods, amounted to approximately $184.1 million at June 30, 2009, an increase of $50.2 million from March 31, 2009 and $52.5 million from December 31, 2008. Included are $6.0 million of potential problem loans acquired from FNBA, which are subject to protection under the existing loss share agreements. 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 $2.5 billion at June 30, 2009, up $272.2 million from December 31, 2008. At June 30, 2009, wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 17% of total funding compared to 24% at December 31, 2008.
At June 30, 2009 Southwest exceeded all applicable regulatory capital requirements, having a total risk-based capital ratio of 13.92%, a Tier 1 risk-based capital ratio of 12.67%, and a leverage ratio of 12.70%. Southwest and each of its banking subsidiaries met the criteria for regulatory classification as “well-capitalized”. Southwest’s capital exceeded the minimum to be classified as “well-capitalized” by $115.5 million. Southwest’s ratio of tangible common equity to tangible assets was 7.65% as June 30, 2009. (The tangible common equity ratio is a non-GAAP measure used by Southwest and analysts based on shareholders’ equity as defined by generally accepted accounting principles minus goodwill and equity that does not benefit common shareholders such as preferred equity and equity provided by the U.S. Treasury’s Capital Purchase Program. See table 6.) Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.
Year-to-date Results:
Summary: The decrease in our net income available to common shareholders from 2008 is the result of a $12.9 million increase in the provision for loan losses, a $2.3 million increase in FDIC insurance and other insurance expense, and $2.1 million in dividends on the preferred stock that we issued in December 2008, offset in part by a $4.0 million decrease in personnel costs, a $1.5 million decrease in general and administrative expenses, a $1.5 million decrease in income tax expense, a $3.1 million increase in other noninterest income, a $1.7 million increase in gain on sale of investment securities, and a $1.4 million increase in net interest income.
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NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Second Quarter Earnings of $0.33 per Common Share
Net Interest Income: Net interest income totaled $45.5 million for the first six month of 2009 compared to $44.1 million for the first six months of 2008. Year-to-date net interest margin was 3.20% compared to 3.42% in 2008. Included in the second quarter net interest income is a one-time recovery of $1.9 million in interest from the successful resolution of a nonperforming loan. Net interest margin would have been 13 basis points lower without this recovery.
Provision for Loan Losses: The provision for loan losses totaled $18.4 million for the first six months of 2009 compared to $5.4 million for the first six months of 2008. Net charge offs totaled $6.4 million, or 0.51% (annualized) of average portfolio loans, year-to-date as of June 30, 2009, compared to $3.7 million, or 0.32% (annualized) of average portfolio loans, for the same period in the prior year.
Noninterest Income: For the first six months of 2009, noninterest income totaled $13.7 million compared to $8.6 million for 2008. The increase in noninterest income from 2008 was the result of a $1.7 million increase in gain on sale of investment securities and a $3.1 million increase in other noninterest income, which includes the $3.3 million gain on acquisition.
Noninterest Expense: For the first six months of 2009, noninterest expense totaled $29.3 million compared to $32.2 million for 2008. The decrease consists mainly of a $4.0 million decrease in personnel expense, a $1.1 million decrease in other general and administrative expenses, and a $458,000 decrease in provision for unfunded loan commitments, offset in part by a $2.3 million increase in FDIC and other insurance expense and a $460,000 increase in occupancy expense.
The efficiency ratio improved to 49.45% for the first six months of 2009 from 60.95% for the first six months of 2008.
Second Quarter Results:
Summary: The $748,000 increase in our net income available to common shareholders compared to the second quarter of 2008 was the result of a $3.3 million increase in noninterest income, a $2.2 million increase in net interest income and a $1.6 million decrease in noninterest expenses, offset in party by a $4.3 million increase in the provision for loan losses, a $1.0 million increase in income tax expense, and $1.0 million in quarterly dividends on the preferred stock that we issued in December 2008.
Net Interest Income: Net interest income totaled $24.5 million for the second quarter of 2009 compared to $22.3 million for the second quarter of 2008. Net interest margin was 3.41% for the second quarter of 2009 compared to 3.38% for the second quarter of 2008. Included in quarterly net interest income is a one-time recovery of $1.9 million in interest as a nonperforming loan was resolved. Net interest margin would have been 26 basis points lower without this recovery.
Provision for Loan Losses: The provision for loan losses totaled $7.5 million for the second quarter of 2009 compared to $3.2 million for the second quarter of 2008. Net charge offs totaled $2.0 million, or 0.31% (annualized) of average portfolio loans for the second quarter of 2009, compared to $1.8 million, or 0.31% (annualized) of average portfolio loans, for the second quarter of 2008.
Noninterest Income: Noninterest income totaled $7.3 million for the second quarter of 2009 compared to $4.0 million for the second quarter of 2008. The increase was primarily the result of a $3.3 million gain recognized on the FDIC-assisted acquisition.
Noninterest Expense: Noninterest expense totaled $14.7 million for the second quarter of 2009, a $1.6 million decrease from the second quarter 2008. The decrease consists mainly of a $2.0 million decrease in personnel expense, a $1.2 million decrease in other general and administrative expenses, and a $403,000 decrease in provision for unfunded loan commitments, offset in part by a $1.8 million increase in FDIC and other insurance expense.
The efficiency ratio for the second quarter of 2009 improved to 46.32% from 62.23% for the second quarter of 2008.
3
NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Second Quarter Earnings of $0.33 per Common Share
Southwest Bancorp and Subsidiaries
Southwest Bancorp is the financial holding company for Stillwater National Bank and Trust Company, Bank of Kansas, SNB Capital Corporation, Healthcare Strategic Support, Inc., and Business Consulting Group, Inc. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit, and investment services, and specialized cash management, consulting, and other financial services from offices in Oklahoma City, Edmond, Stillwater, Tulsa, and Chickasha, Oklahoma; Austin, Dallas, Houston and San Antonio, Texas; and Anthony, Harper, Hutchinson, Mayfield, Olathe, Overland Park, South Hutchinson, and Wichita, Kansas, and on the Internet, throughSNB DirectBanker®.
Southwest focuses on converting its strategic vision into long-term shareholder value. Our vision includes a commercial banking model and a community banking model focused on more traditional banking operations in Texas, Oklahoma, and Kansas. Southwest’s strategic growth goals include prudent growth from existing and additional commercial banking offices in carefully selected markets and continued careful expansion of community banking operations.
We plan to reduce the percentage of commercial real estate loans to total portfolio loans in view of current economic conditions. Our plan focuses on reductions in particular subcategories of commercial real estate loans that are identified in our regular real estate market reviews. In general, and with some exceptions regarding locations and particular types of facilities, we do not intend to decrease healthcare related commercial or mortgage lending or commercial mortgage lending on owner-occupied properties that otherwise meet our underwriting criteria.
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 that are subject to risks and uncertainties. These forward-looking statements include: statements of Southwest’s goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk and market risk or interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; 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: the amount and time of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; 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 Second Quarter Earnings of $0.33 per Common Share
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-2009 and 2008 | | Table 6 |
| | | | | |
| Unaudited Supplemental Analytical Data by Quarter-2009 and 2008 | | Table 7 |
5
| | |
| SOUTHWEST BANCORP, INC. | | Table 1 |
| UNAUDITED FINANCIAL HIGHLIGHTS | | |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Second Quarter | | First Quarter |
| | | | | | | | | | | % | | | | | | % |
| QUARTERLY HIGHLIGHTS | | 2009 | | 2008 | | Change | | 2009 | | Change |
Operations | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 24,456 | | | $ | 22,284 | | | | 10 | % | | $ | 21,038 | | | | 16 | % |
| Provision for loan losses | | | 7,477 | | | | 3,190 | | | | 134 | | | | 10,882 | | | | (31 | ) |
| Noninterest income | | | 7,261 | | | | 3,959 | | | | 83 | | | | 6,477 | | | | 12 | |
| Noninterest expense | | | 14,690 | | | | 16,332 | | | | (10 | ) | | | 14,599 | | | | 1 | |
| Income before taxes | | | 9,550 | | | | 6,721 | | | | 42 | | | | 2,034 | | | | 370 | |
| Taxes on income | | | 3,605 | | | | 2,559 | | | | 41 | | | | 705 | | | | 411 | |
| Net income | | | 5,945 | | | | 4,162 | | | | 43 | | | | 1,329 | | | | 347 | |
| Net income available to common shareholders | | | 4,910 | | | | 4,162 | | | | 18 | | | | 296 | | | | 1,559 | |
| Diluted earnings per share | | | 0.33 | | | | 0.28 | | | | 18 | | | | 0.02 | | | | 1,550 | |
Balance Sheet | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 3,038,985 | | | | 2,773,013 | | | | 10 | | | | 2,928,133 | | | | 4 | |
| Loans held for sale | | | 26,006 | | | | 62,892 | | | | (59 | ) | | | 76,404 | | | | (66 | ) |
| Portfolio loans | | | 2,704,326 | �� | | | 2,381,893 | | | | 14 | | | | 2,526,293 | | | | 7 | |
| Total deposits | | | 2,452,295 | | | | 2,211,001 | | | | 11 | | | | 2,330,089 | | | | 5 | |
| Total shareholders’ equity | | | 305,416 | | | | 224,949 | | | | 36 | | | | 300,406 | | | | 2 | |
| Book value per share | | | 16.30 | | | | 15.49 | | | | 5 | | | | 16.01 | | | | 2 | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.41 | % | | | 3.38 | % | | | | | | | 3.00 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 46.32 | | | | 62.23 | | | | | | | | 53.06 | | | | | |
| Total capital to risk-weighted assets | | | 13.92 | | | | 10.65 | | | | | | | | 14.11 | | | | | |
| Nonperforming loans to portfolio loans | | | 3.51 | | | | 1.35 | | | | | | | | 3.32 | | | | | |
| Shareholders’ equity to total assets | | | 10.05 | | | | 8.11 | | | | | | | | 10.26 | | | | | |
| Tangible common equity to tangible assets | | | 7.65 | | | | 7.88 | | | | | | | | 7.76 | | | | | |
| Return on average assets (annualized) | | | 0.81 | | | | 0.62 | | | | | | | | 0.18 | | | | | |
| Return on average equity (annualized) | | | 7.82 | | | | 7.38 | | | | | | | | 1.77 | | | | | |
| | | | | | | | | | | | | |
| | | Six Months |
| | | | | | | | | | | % |
| YEAR-TO-DATE HIGHLIGHTS | | 2009 | | 2008 | | Change |
Operations | | | | | | | | | | | | |
| Net interest income | | $ | 45,494 | | | $ | 44,117 | | | | 3 | % |
| Provision for loan losses | | | 18,359 | | | | 5,426 | | | | 238 | |
| Noninterest income | | | 13,738 | | | | 8,647 | | | | 59 | |
| Noninterest expense | | | 29,289 | | | | 32,162 | | | | (9 | ) |
| Income before taxes | | | 11,584 | | | | 15,176 | | | | (24 | ) |
| Taxes on income | | | 4,310 | | | | 5,806 | | | | (26 | ) |
| Net income | | | 7,274 | | | | 9,370 | | | | (22 | ) |
| Net income available to common shareholders | | | 5,206 | | | | 9,370 | | | | (44 | ) |
| Diluted earnings per share | | | 0.35 | | | | 0.64 | | | | (45 | ) |
Balance Sheet | | | | | | | | | | | | |
| Total assets | | | 3,038,985 | | | | 2,773,013 | | | | 10 | |
| Loans held for sale | | | 26,006 | | | | 62,892 | | | | (59 | ) |
| Portfolio loans | | | 2,704,326 | | | | 2,381,893 | | | | 14 | |
| Total deposits | | | 2,452,295 | | | | 2,211,001 | | | | 11 | |
| Total shareholders’ equity | | | 305,416 | | | | 224,949 | | | | 36 | |
| Book value per share | | | 16.30 | | | | 15.49 | | | | 5 | |
Key Ratios | | | | | | | | | | | | |
| Net interest margin | | | 3.20 | % | | | 3.42 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 49.45 | | | | 60.95 | | | | | |
| Total capital to risk-weighted assets | | | 13.92 | | | | 10.65 | | | | | |
| Nonperforming loans to portfolio loans | | | 3.51 | | | | 1.35 | | | | | |
| Shareholders’ equity to total assets | | | 10.05 | | | | 8.11 | | | | | |
| Tangible common equity to tangible assets | | | 7.65 | | | | 7.88 | | | | | |
| Return on average assets (annualized) | | | 0.50 | | | | 0.71 | | | | | |
| Return on average equity (annualized) | | | 4.81 | | | | 8.39 | | | | | |
Balance sheet amounts are as of period end unless otherwise noted.
Please see accompanying tables for additional financial information.
| | |
| SOUTHWEST BANCORP, INC. | | Table 2 |
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | |
| | | June 30, | | | December 31, | | | June 30, | |
| | | 2009 | | | 2008 | | | 2008 | |
Assets | | | | | | | | | | | | |
| Cash and due from banks | | $ | 33,724 | | | $ | 27,287 | | | $ | 51,462 | |
| Federal funds sold | | | 809 | | | | — | | | | — | |
| | | | | | | | | | |
| Cash and cash equivalents | | | 34,533 | | | | 27,287 | | | | 51,462 | |
| Investment securities: | | | | | | | | | | | | |
| Held to maturity. Fair value: $6,834 $7,293, $8,282 | | | 6,795 | | | | 7,343 | | | | 8,340 | |
| Available for sale. Amortized cost: $214,944 $233,293, $210,721 | | | 216,293 | | | | 238,037 | | | | 208,640 | |
| Other investments, at cost | | | 19,989 | | | | 18,786 | | | | 17,449 | |
| Loans held for sale | | | 26,006 | | | | 56,941 | | | | 62,892 | |
| Loans receivable (1) | | | 2,704,326 | | | | 2,494,506 | | | | 2,381,893 | |
| Less: Allowance for loan losses | | | (51,753 | ) | | | (39,773 | ) | | | (31,341 | ) |
| | | | | | | | | | |
| Net loans receivable | | | 2,652,573 | | | | 2,454,733 | | | | 2,350,552 | |
| Accrued interest receivable | | | 10,753 | | | | 11,512 | | | | 12,624 | |
| Premises and equipment, net | | | 24,743 | | | | 24,580 | | | | 23,607 | |
| Other real estate owned (2) | | | 8,941 | | | | 6,092 | | | | 2,523 | |
| Goodwill | | | 6,811 | | | | 7,071 | | | | 7,071 | |
| Other intangible assets, net | | | 5,974 | | | | 3,764 | | | | 4,157 | |
| Other assets | | | 25,574 | | | | 23,616 | | | | 23,696 | |
| | | | | | | | | | |
| Total assets | | $ | 3,038,985 | | | $ | 2,879,762 | | | $ | 2,773,013 | |
| | | | | | | | | | |
| |
Liabilities and shareholders’ equity | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Noninterest-bearing demand | | $ | 291,014 | | | $ | 261,940 | | | $ | 299,699 | |
| Interest-bearing demand | | | 94,060 | | | | 76,027 | | | | 81,415 | |
| Money market accounts | | | 483,162 | | | | 454,250 | | | | 548,099 | |
| Savings accounts | | | 25,660 | | | | 14,135 | | | | 13,809 | |
| Time deposits of $100,000 or more | | | 905,202 | | | | 802,244 | | | | 740,174 | |
| Other time deposits | | | 653,197 | | | | 571,526 | | | | 527,805 | |
| | | | | | | | | | |
| Total deposits | | | 2,452,295 | | | | 2,180,122 | | | | 2,211,001 | |
| Accrued interest payable | | | 5,953 | | | | 7,018 | | | | 9,680 | |
| Income tax payable | | | 5,752 | | | | 3,651 | | | | 3,924 | |
| Other liabilities | | | 11,238 | | | | 9,667 | | | | 11,452 | |
| Other borrowings | | | 176,368 | | | | 295,138 | | | | 265,614 | |
| Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 46,393 | |
| | | | | | | | | | |
| Total liabilities | | | 2,733,569 | | | | 2,577,559 | | | | 2,548,064 | |
| |
Shareholders’ equity | | | | | | | | | | | | |
| Preferred stock, Series B — $1,000 par value; 1,250,000 shares authorized; 70,000 shares issued | | | 66,710 | | | | 66,392 | | | | — | |
| Common stock — $1 par value; 20,000,000 shares authorized; 14,658,042 shares issued | | | 14,658 | | | | 14,658 | | | | 14,658 | |
| Paid in capital | | | 48,387 | | | | 49,101 | | | | 45,818 | |
| Retained earnings | | | 175,089 | | | | 170,579 | | | | 168,099 | |
| Accumulated other comprehensive income (loss) | | | 853 | | | | 2,921 | | | | (1,256 | ) |
| Treasury stock, at cost, 15,602, 80,383, 131,566 shares | | | (281 | ) | | | (1,448 | ) | | | (2,370 | ) |
| | | | | | | | | | |
| Total shareholders’ equity | | | 305,416 | | | | 302,203 | | | | 224,949 | |
| | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 3,038,985 | | | $ | 2,879,762 | | | $ | 2,773,013 | |
| | | | | | | | | | |
| | |
| (1) | | Includes $80.8 million which is subject to FDIC support through the loss share agreement which provides for 80% recovery of net losses up to $35.0 million and 95% recovery for net losses exceeding this amount. |
| |
| (2) | | Includes $3.3 million which is subject to FDIC support through the loss share agreement as discussed in (1). |
| | |
| SOUTHWEST BANCORP, INC. | | Table 3 |
| | |
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | | |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | |
| | | For the three months | | | For the six months | |
| | | ended June 30, | | | ended June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Interest income | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,009 | | | $ | 37,485 | | | $ | 69,277 | | | $ | 78,095 | |
| Investment securities | | | 2,079 | | | | 2,426 | | | | 4,591 | | | | 4,762 | |
| Other interest-earning assets | | | 3 | | | | 20 | | | | 9 | | | | 48 | |
| | | | | | | | | | | | | |
| Total interest income | | | 38,091 | | | | 39,931 | | | | 73,877 | | | | 82,905 | |
| | | | | | | | | | | | | | | | | |
Interest expense | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 11,072 | | | | 15,107 | | | | 23,132 | | | | 33,361 | |
| Other borrowings | | | 1,180 | | | | 1,887 | | | | 2,464 | | | | 3,916 | |
| Subordinated debentures | | | 1,383 | | | | 653 | | | | 2,787 | | | | 1,511 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 13,635 | | | | 17,647 | | | | 28,383 | | | | 38,788 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income | | | 24,456 | | | | 22,284 | | | | 45,494 | | | | 44,117 | |
| | | | | | | | | | | | | | | | | |
| Provision for loan losses | | | 7,477 | | | | 3,190 | | | | 18,359 | | | | 5,426 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 16,979 | | | | 19,094 | | | | 27,135 | | | | 38,691 | |
| | | | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,817 | | | | 2,812 | | | | 5,417 | | | | 5,269 | |
| Gain on acquisition | | | 3,281 | | | | — | | | | 3,281 | | | | — | |
| Gain on sales of loans | | | 926 | | | | 603 | | | | 1,644 | | | | 1,443 | |
| Gain (loss) on investment securities | | | (9 | ) | | | 3 | | | | 2,912 | | | | 1,248 | |
| Other noninterest income | | | 246 | | | | 541 | | | | 484 | | | | 687 | |
| | | | | | | | | | | | | |
| Total noninterest income | | | 7,261 | | | | 3,959 | | | | 13,738 | | | | 8,647 | |
| | | | | | | | | | | | | | | | | |
Noninterest expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 6,887 | | | | 8,856 | | | | 14,126 | | | | 18,078 | |
| Occupancy | | | 2,789 | | | | 2,602 | | | | 5,520 | | | | 5,060 | |
| FDIC and other insurance | | | 2,319 | | | | 521 | | | | 3,310 | | | | 974 | |
| Other real estate, net | | | 103 | | | | 197 | | | | 1 | | | | 207 | |
| General and administrative | | | 2,592 | | | | 4,156 | | | | 6,332 | | | | 7,843 | |
| | | | | | | | | | | | | |
| Total noninterest expenses | | | 14,690 | | | | 16,332 | | | | 29,289 | | | | 32,162 | |
| | | | | | | | | | | | | |
| Income before taxes | | | 9,550 | | | | 6,721 | | | | 11,584 | | | | 15,176 | |
| Taxes on income | | | 3,605 | | | | 2,559 | | | | 4,310 | | | | 5,806 | |
| | | | | | | | | | | | | |
| Net income | | $ | 5,945 | | | $ | 4,162 | | | $ | 7,274 | | | $ | 9,370 | |
| | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 4,910 | | | $ | 4,162 | | | $ | 5,206 | | | $ | 9,370 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.34 | | | $ | 0.29 | | | $ | 0.36 | | | $ | 0.65 | |
| Diluted earnings per common share | | | 0.33 | | | | 0.28 | | | | 0.35 | | | | 0.64 | |
| Common dividends declared per share | | | 0.0238 | | | | 0.0950 | | | | 0.0476 | | | | 0.1900 | |
| | |
| SOUTHWEST BANCORP, INC. | | Table 4 |
| | |
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | | |
| (Dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended June 30, | |
| | | 2009 | | | 2008 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 2,649,140 | | | $ | 36,009 | | | | 5.45 | % | | $ | 2,414,012 | | | $ | 37,485 | | | | 6.25 | % |
| Investment securities | | | 225,353 | | | | 2,079 | | | | 3.70 | | | | 233,101 | | | | 2,426 | | | | 4.19 | |
| Other interest-earning assets | | | 4,321 | | | | 3 | | | | 0.28 | | | | 3,406 | | | | 20 | | | | 2.36 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,878,814 | | | | 38,091 | | | | 5.31 | | | | 2,650,519 | | | | 39,931 | | | | 6.06 | |
| Other assets | | | 67,725 | | | | | | | | | | | | 66,385 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,946,539 | | | | | | | | | | | $ | 2,716,904 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 87,036 | | | $ | 150 | | | | 0.69 | % | | $ | 79,273 | | | $ | 166 | | | | 0.84 | % |
| Money market accounts | | | 470,506 | | | | 1,211 | | | | 1.03 | | | | 548,020 | | | | 3,062 | | | | 2.25 | |
| Savings accounts | | | 17,309 | | | | 14 | | | | 0.32 | | | | 13,586 | | | | 19 | | | | 0.56 | |
| Time deposits | | | 1,497,651 | | | | 9,697 | | | | 2.60 | | | | 1,230,327 | | | | 11,860 | | | | 3.88 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,072,502 | | | | 11,072 | | | | 2.14 | | | | 1,871,206 | | | | 15,107 | | | | 3.25 | |
| Other borrowings | | | 198,936 | | | | 1,180 | | | | 2.38 | | | | 284,828 | | | | 1,887 | | | | 2.66 | |
| Subordinated debentures | | | 81,963 | | | | 1,383 | | | | 6.75 | | | | 46,393 | | | | 653 | | | | 5.63 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,353,401 | | | | 13,635 | | | | 2.32 | | | | 2,202,427 | | | | 17,647 | | | | 3.22 | |
| | | | | | | | | | | | | | | | | | | | | |
| |
| Noninterest-bearing demand deposits | | | 267,406 | | | | | | | | | | | | 267,026 | | | | | | | | | |
| Other liabilities | | | 20,827 | | | | | | | | | | | | 20,687 | | | | | | | | | |
| Shareholders’ equity | | | 304,905 | | | | | | | | | | | | 226,764 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,946,539 | | | | | | | | | | | $ | 2,716,904 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 24,456 | | | | 2.99 | % | | | | | | $ | 22,284 | | | | 2.84 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.41 | % | | | | | | | | | | | 3.38 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 122.33 | % | | | | | | | | | | | 120.35 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| | | |
SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands) | | Table 5 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the six months ended June 30, | |
| | | 2009 | | | 2008 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 2,622,282 | | | $ | 69,277 | | | | 5.33 | % | | $ | 2,359,489 | | | $ | 78,095 | | | | 6.66 | % |
| Investment securities | | | 236,862 | | | | 4,591 | | | | 3.91 | | | | 236,071 | | | | 4,762 | | | | 4.08 | |
| Other interest-earning assets | | | 3,557 | | | | 9 | | | | 0.51 | | | | 3,084 | | | | 48 | | | | 3.13 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,862,701 | | | | 73,877 | | | | 5.20 | | | | 2,598,644 | | | | 82,905 | | | | 6.42 | |
| Other assets | | | 68,333 | | | | | | | | | | | | 68,492 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,931,034 | | | | | | | | | | | $ | 2,667,136 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 87,870 | | | $ | 303 | | | | 0.70 | % | | $ | 76,003 | | | $ | 307 | | | | 0.81 | % |
| Money market accounts | | | 469,970 | | | | 2,564 | | | | 1.10 | | | | 547,027 | | | | 7,590 | | | | 2.79 | |
| Savings accounts | | | 16,198 | | | | 23 | | | | 0.29 | | | | 13,525 | | | | 41 | | | | 0.61 | |
| Time deposits | | | 1,470,271 | | | | 20,242 | | | | 2.78 | | | | 1,219,554 | | | | 25,423 | | | | 4.19 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,044,309 | | | | 23,132 | | | | 2.28 | | | | 1,856,109 | | | | 33,361 | | | | 3.61 | |
| Other borrowings | | | 217,597 | | | | 2,464 | | | | 2.28 | | | | 261,819 | | | | 3,916 | | | | 3.01 | |
| Subordinated debentures | | | 81,963 | | | | 2,787 | | | | 6.80 | | | | 46,393 | | | | 1,511 | | | | 6.51 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,343,869 | | | | 28,383 | | | | 2.44 | | | | 2,164,321 | | | | 38,788 | | | | 3.60 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 261,980 | | | | | | | | | | | | 257,133 | | | | | | | | | |
| Other liabilities | | | 20,119 | | | | | | | | | | | | 21,181 | | | | | | | | | |
| Shareholders’ equity | | | 305,066 | | | | | | | | | | | | 224,501 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,931,034 | | | | | | | | | | | $ | 2,667,136 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 45,494 | | | | 2.76 | % | | | | | | $ | 44,117 | | | | 2.82 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.20 | % | | | | | | | | | | | 3.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 122.14 | % | | | | | | | | | | | 120.07 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| | | |
SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share) | | Table 6 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2009 | | | 2008 | |
| | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,009 | | | $ | 33,268 | | | $ | 36,183 | | | $ | 38,441 | | | $ | 37,485 | | | $ | 40,610 | |
| Investment securities | | | 2,079 | | | | 2,512 | | | | 2,693 | | | | 2,531 | | | | 2,426 | | | | 2,336 | |
| Other interest-earning assets | | | 3 | | | | 6 | | | | 19 | | | | 22 | | | | 20 | | | | 28 | |
| | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 38,091 | | | | 35,786 | | | | 38,895 | | | | 40,994 | | | | 39,931 | | | | 42,974 | |
Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 150 | | | | 153 | | | | 130 | | | | 147 | | | | 166 | | | | 141 | |
| Money market accounts | | | 1,211 | | | | 1,353 | | | | 2,132 | | | | 2,898 | | | | 3,062 | | | | 4,528 | |
| Savings accounts | | | 14 | | | | 9 | | | | 11 | | | | 17 | | | | 19 | | | | 22 | |
| Time deposits of $100,000 or more | | | 5,552 | | | | 5,980 | | | | 6,419 | | | | 6,879 | | | | 7,051 | | | | 7,865 | |
| Other time deposits | | | 4,145 | | | | 4,565 | | | | 4,571 | | | | 4,457 | | | | 4,809 | | | | 5,698 | |
| | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 11,072 | | | | 12,060 | | | | 13,263 | | | | 14,398 | | | | 15,107 | | | | 18,254 | |
| Other borrowings | | | 1,180 | | | | 1,284 | | | | 1,487 | | | | 1,839 | | | | 1,887 | | | | 2,029 | |
| Subordinated debentures | | | 1,383 | | | | 1,404 | | | | 1,731 | | | | 1,569 | | | | 653 | | | | 858 | |
| | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 13,635 | | | | 14,748 | | | | 16,481 | | | | 17,806 | | | | 17,647 | | | | 21,141 | |
| | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 24,456 | | | | 21,038 | | | | 22,414 | | | | 23,188 | | | | 22,284 | | | | 21,833 | |
| Provision for loan losses | | | 7,477 | | | | 10,882 | | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,817 | | | | 2,600 | | | | 2,908 | | | | 2,849 | | | | 2,812 | | | | 2,457 | |
| Gain on sales of loans | | | 926 | | | | 718 | | | | 620 | | | | 601 | | | | 603 | | | | 840 | |
| Gain (loss) on investment securities | | | (9 | ) | | | 2,921 | | | | (296 | ) | | | (50 | ) | | | 3 | | | | 1,245 | |
| Other noninterest income | | | 3,527 | | | | 238 | | | | 197 | | | | 662 | | | | 541 | | | | 146 | |
| | | | | | | | | | | | | | | | | | | |
| Total noninterest income | | | 7,261 | | | | 6,477 | | | | 3,429 | | | | 4,062 | | | | 3,959 | | | | 4,688 | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 6,887 | | | | 7,239 | | | | 6,389 | | | | 8,863 | | | | 8,856 | | | | 9,222 | |
| Occupancy | | | 2,789 | | | | 2,731 | | | | 2,844 | | | | 2,968 | | | | 2,602 | | | | 2,458 | |
| FDIC and other insurance | | | 2,319 | | | | 991 | | | | 645 | | | | 469 | | | | 521 | | | | 453 | |
| Other real estate, net | | | 103 | | | | (102 | ) | | | 31 | | | | (92 | ) | | | 197 | | | | 10 | |
| Provision for unfunded loan commitments | | | (388 | ) | | | 90 | | | | 385 | | | | 90 | | | | 15 | | | | 145 | |
| Other general and administrative | | | 2,980 | | | | 3,650 | | | | 3,499 | | | | 4,235 | | | | 4,141 | | | | 3,542 | |
| | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 14,690 | | | | 14,599 | | | | 13,793 | | | | 16,533 | | | | 16,332 | | | | 15,830 | |
| | | | | | | | | | | | | | | | | | | |
| Income before taxes | | | 9,550 | | | | 2,034 | | | | 5,352 | | | | 3,862 | | | | 6,721 | | | | 8,455 | |
| Taxes on income | | | 3,605 | | | | 705 | | | | 2,127 | | | | 1,556 | | | | 2,559 | | | | 3,247 | |
| | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,945 | | | $ | 1,329 | | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 4,910 | | | $ | 296 | | | $ | 2,982 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.34 | | | $ | 0.02 | | | $ | 0.21 | | | $ | 0.16 | | | $ | 0.29 | | | $ | 0.36 | |
| Diluted earnings per common share | | | 0.33 | | | | 0.02 | | | | 0.20 | | | | 0.16 | | | | 0.28 | | | | 0.36 | |
| Common dividends declared per share | | | 0.0238 | | | | 0.0238 | | | | 0.0950 | | | | 0.0950 | | | | 0.0950 | | | | 0.0950 | |
| Book value per share | | | 16.30 | | | | 16.01 | | | | 16.18 | | | | 15.56 | | | | 15.49 | | | | 15.43 | |
| Tangible book value per share | | | 15.84 | | | | 15.52 | | | | 15.69 | | | | 15.08 | | | | 15.00 | | | | 14.95 | |
OTHER FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 243,077 | | | $ | 179,006 | | | $ | 264,166 | | | $ | 241,728 | | | $ | 234,429 | | | $ | 236,059 | |
| Loans held for sale | | | 26,006 | | | | 76,404 | | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | |
| Portfolio loans | | | 2,704,326 | | | | 2,526,293 | | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | |
| Total loans | | | 2,730,332 | | | | 2,602,697 | | | | 2,551,447 | | | | 2,512,339 | | | | 2,444,785 | | | | 2,353,970 | |
| Total assets | | | 3,038,985 | | | | 2,928,133 | | | | 2,879,762 | | | | 2,832,371 | | | | 2,773,013 | | | | 2,670,580 | |
| Total deposits | | | 2,452,295 | | | | 2,330,089 | | | | 2,180,122 | | | | 2,198,719 | | | | 2,211,001 | | | | 2,094,927 | |
| Other borrowings | | | 176,368 | | | | 193,739 | | | | 295,138 | | | | 299,118 | | | | 265,614 | | | | 282,513 | |
| Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 46,393 | | | | 46,393 | |
| Total shareholders’ equity | | | 305,416 | | | | 300,406 | | | | 302,203 | | | | 226,123 | | | | 224,949 | | | | 224,155 | |
| Mortgage servicing portfolio | | | 209,425 | | | | 179,959 | | | | 158,143 | | | | 153,250 | | | | 147,672 | | | | 145,028 | |
Continued | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| SOUTHWEST BANCORP, INC. | | Table 6 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | Continued |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2009 | | | 2008 | |
| | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.81 | % | | | 0.18 | % | | | 0.45 | % | | | 0.33 | % | | | 0.62 | % | | | 0.80 | % |
| Return on average common equity (annualized) | | | 8.26 | | | | 1.77 | | | | 5.15 | | | | 3.97 | | | | 7.38 | | | | 9.43 | |
| Return on average tangible equity (annualized) | | | 8.12 | | | | 1.83 | | | | 5.79 | | | | 4.26 | | | | 7.86 | | | | 9.94 | |
| Net interest margin | | | 3.41 | | | | 3.00 | | | | 3.22 | | | | 3.39 | | | | 3.38 | | | | 3.45 | |
| Total dividends declared to net income | | | 20.58 | | | | 92.00 | | | | 50.49 | | | | 59.85 | | | | 33.16 | | | | 26.37 | |
| Effective tax rate | | | 37.75 | | | | 34.66 | | | | 39.74 | | | | 40.29 | | | | 38.07 | | | | 38.40 | |
| Efficiency ratio | | | 46.32 | | | | 53.06 | | | | 53.37 | | | | 60.67 | | | | 62.23 | | | | 59.69 | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to portfolio loans and other real estate owned | | | 3.83 | % | | | 3.53 | % | | | 2.80 | % | | | 2.72 | % | | | 1.45 | % | | | 1.41 | % |
| Nonperforming loans to portfolio loans | | | 3.51 | | | | 3.32 | | | | 2.56 | | | | 2.62 | | | | 1.35 | | | | 1.27 | |
| Net loan charge-offs to average portfolio loans | | | 0.31 | | | | 0.71 | | | | 0.44 | | | | 0.39 | | | | 0.31 | | | | 0.34 | |
| Allowance for loan losses to total loans | | | 1.90 | | | | 1.78 | | | | 1.56 | | | | 1.43 | | | | 1.28 | | | | 1.27 | |
| Allowance for loan losses to portfolio loans | | | 1.91 | | | | 1.83 | | | | 1.59 | | | | 1.47 | | | | 1.32 | | | | 1.31 | |
| Allowance for loan losses to nonperforming loans | | | 54.55 | | | | 55.12 | | | | 62.16 | | | | 56.07 | | | | 97.62 | | | | 103.49 | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | | | | | |
| Average total shareholders’ equity to average assets | | | 10.35 | % | | | 10.47 | % | | | 8.85 | % | | | 8.26 | % | | | 8.35 | % | | | 8.49 | % |
| Leverage ratio | | | 12.70 | | | | 12.72 | | | | 13.06 | | | | 10.51 | | | | 9.66 | | | | 9.91 | |
| Tier 1 capital to risk-weighted assets | | | 12.67 | | | | 12.85 | | | | 13.01 | | | | 10.49 | | | | 9.40 | | | | 9.47 | |
| Total capital to risk-weighted assets | | | 13.92 | | | | 14.11 | | | | 14.26 | | | | 11.88 | | | | 10.65 | | | | 10.69 | |
| Tangible common equity to tangible assets* | | | 7.65 | | | | 7.76 | | | | 7.96 | | | | 7.75 | | | | 7.88 | | | | 8.15 | |
LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 967,981 | | | $ | 949,454 | | | $ | 966,243 | | | $ | 962,611 | | | $ | 965,952 | | | $ | 943,331 | |
| Texas banking | | | 1,037,694 | | | | 990,135 | | | | 947,603 | | | | 892,998 | | | | 857,160 | | | | 797,700 | |
| Kansas banking | | | 412,314 | | | | 309,774 | | | | 304,855 | | | | 288,268 | | | | 277,887 | | | | 287,339 | |
| Other states banking | | | 286,337 | | | | 276,930 | | | | 275,805 | | | | 296,214 | | | | 280,894 | | | | 259,236 | |
| | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 2,704,326 | | | | 2,526,293 | | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | |
| Secondary market | | | 26,006 | | | | 76,404 | | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | |
| | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 2,730,332 | | | $ | 2,602,697 | | | $ | 2,551,447 | | | $ | 2,512,339 | | | $ | 2,444,785 | | | $ | 2,353,970 | |
| | | | | | | | | | | | | | | | | | | |
NET INCOME BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 3,284 | | | $ | 3,210 | | | $ | 3,783 | | | $ | 3,295 | | | $ | 2,923 | | | $ | 2,503 | |
| Texas banking | | | 3,662 | | | | 1,119 | | | | 2,036 | | | | 1,332 | | | | 1,777 | | | | 2,406 | |
| Kansas banking | | | 548 | | | | 598 | | | | (204 | ) | | | (1,336 | ) | | | (40 | ) | | | 458 | |
| Other states banking | | | (78 | ) | | | (1,974 | ) | | | (89 | ) | | | 848 | | | | 1,028 | | | | 969 | |
| | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 7,416 | | | | 2,953 | | | | 5,526 | | | | 4,139 | | | | 5,688 | | | | 6,336 | |
| Secondary market | | | 117 | | | | (61 | ) | | | 139 | | | | (149 | ) | | | 40 | | | | (174 | ) |
| Other operations | | | (1,588 | ) | | | (1,563 | ) | | | (2,440 | ) | | | (1,684 | ) | | | (1,566 | ) | | | (954 | ) |
| | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,945 | | | $ | 1,329 | | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | |
OFFICES AND EMPLOYEES | | | | | | | | | | | | | | | | | | | | | | | | |
| FTE Employees | | | 478 | | | | 425 | | | | 442 | | | | 458 | | | | 463 | | | | 467 | |
| ATM’s | | | 44 | | | | 40 | | | | 41 | | | | 41 | | | | 40 | | | | 40 | |
| Branches | | | 24 | | | | 18 | | | | 18 | | | | 18 | | | | 17 | | | | 17 | |
| Loan production offices | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | |
| Assets per employee | | $ | 6,358 | | | $ | 6,890 | | | $ | 6,515 | | | $ | 6,184 | | | $ | 5,989 | | | $ | 5,719 | |
| | |
| * | | Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | $ | 305,416 | | | $ | 300,406 | | | $ | 302,203 | | | $ | 226,123 | | | $ | 224,949 | | | $ | 224,155 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill** | | | 6,811 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | |
Preferred stock | | | 66,710 | | | | 66,549 | | | | 66,392 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Tangible common equity | | $ | 231,895 | | | $ | 226,786 | | | $ | 228,740 | | | $ | 219,052 | | | $ | 217,878 | | | $ | 217,084 | |
| | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,038,985 | | | $ | 2,928,133 | | | $ | 2,879,762 | | | $ | 2,832,371 | | | $ | 2,773,013 | | | $ | 2,670,580 | |
Less goodwill | | | 6,811 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | |
| | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 3,032,174 | | | $ | 2,921,062 | | | $ | 2,872,691 | | | $ | 2,825,300 | | | $ | 2,765,942 | | | $ | 2,663,509 | |
| | | | | | | | | | | | | | | | | | | |
Tangible common equity to tangible assets | | | 7.65 | % | | | 7.76 | % | | | 7.96 | % | | | 7.75 | % | | | 7.88 | % | | | 8.15 | % |
| | |
| ** | | We discovered an error in the entries recording our 2007 acquisition and corrected it in the current period. This correction did not affect income and does not represent any impairment of goodwill. |
Balance sheet amounts are as of period end unless otherwise noted.
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 7 |
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | | |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2009 | | | 2008 | |
| | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
LOAN COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 1,249,230 | | | $ | 1,098,587 | | | $ | 1,118,828 | | | $ | 1,077,601 | | | $ | 991,679 | | | $ | 846,757 | |
| One-to-four family residential | | | 133,957 | | | | 114,111 | | | | 113,665 | | | | 116,270 | | | | 118,056 | | | | 110,938 | |
Real estate construction | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 636,575 | | | | 640,132 | | | | 579,795 | | | | 554,496 | | | | 583,784 | | | | 654,039 | |
| One-to-four family residential | | | 64,939 | | | | 79,309 | | | | 79,565 | | | | 79,843 | | | | 82,972 | | | | 90,051 | |
| Commercial | | | 581,937 | | | | 558,834 | | | | 564,670 | | | | 574,087 | | | | 566,830 | | | | 544,183 | |
| Installment and consumer: | | | | | | | | | | | | | | | | | | | | | | | | |
| Guaranteed student loans | | | 18,477 | | | | 69,792 | | | | 54,057 | | | | 67,610 | | | | 57,413 | | | | 63,706 | |
| Other | | | 45,217 | | | | 41,932 | | | | 40,867 | | | | 42,432 | | | | 44,051 | | | | 44,296 | |
| | | | | | | | | | | | | | | | | | | |
| Total loans, including held for sale | | | 2,730,332 | | | | 2,602,697 | | | | 2,551,447 | | | | 2,512,339 | | | | 2,444,785 | | | | 2,353,970 | |
| Less allowance for loan losses | | | (51,753 | ) | | | (46,262 | ) | | | (39,773 | ) | | | (35,807 | ) | | | (31,341 | ) | | | (29,950 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total loans, net | | $ | 2,678,579 | | | $ | 2,556,435 | | | $ | 2,511,674 | | | $ | 2,476,532 | | | $ | 2,413,444 | | | $ | 2,324,020 | |
| | | | | | | | | | | | | | | | | | | |
| By statement of condition category: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale: | | | | | | | | | | | | | | | | | | | | | | | | |
| Student loans | | $ | 18,477 | | | $ | 69,792 | | | $ | 54,057 | | | $ | 67,610 | | | $ | 57,413 | | | $ | 63,706 | |
| One-to-four family residential | | | 6,599 | | | | 5,563 | | | | 1,790 | | | | 3,500 | | | | 4,283 | | | | 1,417 | |
| Other | | | 930 | | | | 1,049 | | | | 1,094 | | | | 1,138 | | | | 1,196 | | | | 1,241 | |
| | | | | | | | | | | | | | | | | | | |
| Total loans held for sale | | | 26,006 | | | | 76,404 | | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | |
| Portfolio loans | | | 2,704,326 | | | | 2,526,293 | | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | |
| | | | | | | | | | | | | | | | | | | |
| Total loans before allowance | | $ | 2,730,332 | | | $ | 2,602,697 | | | $ | 2,551,447 | | | $ | 2,512,339 | | | $ | 2,444,785 | | | $ | 2,353,970 | |
| | | | | | | | | | | | | | | | | | | |
DEPOSIT COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand | | $ | 291,014 | | | $ | 274,175 | | | $ | 261,940 | | | $ | 280,453 | | | $ | 299,699 | | | $ | 248,315 | |
| Interest-bearing demand | | | 94,060 | | | | 85,629 | | | | 76,027 | | | | 70,471 | | | | 81,415 | | | | 71,450 | |
| Money market accounts | | | 483,162 | | | | 467,924 | | | | 454,250 | | | | 554,357 | | | | 548,099 | | | | 553,850 | |
| Savings accounts | | | 25,660 | | | | 15,797 | | | | 14,135 | | | | 14,452 | | | | 13,809 | | | | 13,808 | |
| Time deposits of $100,000 or more | | | 905,202 | | | | 849,814 | | | | 802,244 | | | | 731,773 | | | | 740,174 | | | | 690,421 | |
| Other time deposits | | | 653,197 | | | | 636,750 | | | | 571,526 | | | | 547,213 | | | | 527,805 | | | | 517,083 | |
| | | | | | | | | | | | | | | | | | | |
| Total deposits | | $ | 2,452,295 | | | $ | 2,330,089 | | | $ | 2,180,122 | | | $ | 2,198,719 | | | $ | 2,211,001 | | | $ | 2,094,927 | |
| | | | | | | | | | | | | | | | | | | |
| Brokered deposits under $100,000 | | $ | 295 | | | $ | 589 | | | $ | 3,445 | | | $ | 5,235 | | | $ | 10,755 | | | $ | 12,784 | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 82,812 | | | $ | 73,383 | | | $ | 59,310 | | | $ | 61,557 | | | $ | 30,861 | | | $ | 26,134 | |
| 90 days past due and accruing | | | 12,067 | | | | 10,552 | | | | 4,673 | | | | 2,299 | | | | 1,242 | | | | 2,807 | |
| | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 94,879 | | | | 83,935 | | | | 63,983 | | | | 63,856 | | | | 32,103 | | | | 28,941 | |
| Other real estate owned | | | 8,941 | | | | 5,351 | | | | 6,092 | | | | 2,685 | | | | 2,523 | | | | 3,328 | |
| | | | | | | | | | | | | | | | | | | |
| Total nonperforming assets | | $ | 103,820 | | | $ | 89,286 | | | $ | 70,075 | | | $ | 66,541 | | | $ | 34,626 | | | $ | 32,269 | |
| | | | | | | | | | | | | | | | | | | |
| Potential problem loans | | $ | 184,058 | | | $ | 133,810 | | | $ | 131,516 | | | $ | 86,070 | | | $ | 71,070 | | | $ | 69,588 | |
| | | | | | | | | | | | | | | | | | | |
ALLOWANCE ACTIVITY | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 46,262 | | | $ | 39,773 | | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | | | $ | 29,584 | |
| Charge offs | | | 2,975 | | | | 4,810 | | | | 3,254 | | | | 2,752 | | | | 1,892 | | | | 2,044 | |
| Recoveries | | | 989 | | | | 417 | | | | 522 | | | | 363 | | | | 93 | | | | 174 | |
| | | | | | | | | | | | | | | | | | | |
| Net charge offs | | | 1,986 | | | | 4,393 | | | | 2,732 | | | | 2,389 | | | | 1,799 | | | | 1,870 | |
| Provision for loan losses | | | 7,477 | | | | 10,882 | | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | |
| | | | | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 51,753 | | | $ | 46,262 | | | $ | 39,773 | | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | |
| | | | | | | | | | | | | | | | | | | |
REGULATORY CAPITAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 372,713 | | | $ | 369,482 | | | $ | 369,049 | | | $ | 293,141 | | | $ | 261,354 | | | $ | 258,272 | |
| Total capital | | | 409,764 | | | | 405,613 | | | | 404,695 | | | | 332,012 | | | | 296,166 | | | | 291,638 | |
| Total risk adjusted assets | | | 2,942,821 | | | | 2,875,290 | | | | 2,837,473 | | | | 2,793,843 | | | | 2,780,538 | | | | 2,727,853 | |
COMMON STOCK | | | | | | | | | | | | | | | | | | | | | | | | |
| Issued | | | 14,658,042 | | | | 14,658,042 | | | | 14,658,042 | | | | 14,658,042 | | | | 14,658,042 | | | | 14,658,042 | |
| Less treasury shares | | | (15,602 | ) | | | (49,930 | ) | | | (80,383 | ) | | | (129,586 | ) | | | (131,566 | ) | | | (133,605 | ) |
| | | | | | | | | | | | | | | | | | | |
| Outstanding shares | | | 14,642,440 | | | | 14,608,112 | | | | 14,577,659 | | | | 14,528,456 | | | | 14,526,476 | | | | 14,524,437 | |
| | | | | | | | | | | | | | | | | | | |
INTANGIBLE ASSET DATA | | | | | | | | | | | | | | | | | | | | | | | | |
| Goodwill** | | $ | 6,811 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | |
| Core deposit intangible | | | 4,378 | | | | 2,498 | | | | 2,596 | | | | 2,693 | | | | 2,792 | | | | 2,893 | |
| Mortgage servicing rights | | | 1,589 | | | | 1,362 | | | | 1,159 | | | | 1,417 | | | | 1,354 | | | | 1,299 | |
| Nonmortgage servicing rights | | | 7 | | | | 8 | | | | 9 | | | | 10 | | | | 11 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | |
| Total intangible assets | | $ | 12,785 | | | $ | 10,939 | | | $ | 10,835 | | | $ | 11,191 | | | $ | 11,228 | | | $ | 11,276 | |
| | | | | | | | | | | | | | | | | | | |
| Intangible amortization expense | | $ | 391 | | | $ | 204 | | | $ | 214 | | | $ | 212 | | | $ | 215 | | | $ | 257 | |
| | | | | | | | | | | | | | | | | | | |
| | |
| Balance sheet amounts are as of period end unless otherwise noted. |
