Exhibit 99.1
| | | |
| | | For additional information: |
| | | Rick Green |
| | | President & CEO |
| | | Kerby E. Crowell |
| | | EVP & CFO |
For Immediate Release | | (405) 372-2230 |
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
January 28, 2010, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $2.5 million, or $0.17 per diluted share for the fourth quarter 2009, compared to $3.0 million, or $0.20 per diluted share for the fourth quarter of 2008. Net income available to common shareholders for the year ended December 31, 2009 was $8.8 million, or $0.60 per diluted share, compared to $14.7 million, or $1.00 per diluted share for the year ended December 31, 2008. At December 31, 2009, total assets were $3.1 billion.
Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “Southwest’s 2009 results demonstrate our ability to maintain top line revenue, effectively manage noninterest expenses, and take steps to control risk.
Southwest’s nonperforming assets increased significantly during the year as the economy in general, and commercial real estate values in particular, continued to show weakness. We recorded provisions for losses that were over $22 million greater than our net charge offs for the year. At December 31, 2009, the allowance for loan losses of $62.4 million was 2.46% of portfolio loans, excluding loans covered by FDIC loss sharing agreements. Each of our nonaccrual loans is valued on an individual basis using primarily the fair value of collateral or estimated future cash flows, with a specific allowance recorded based on the result.
On January 27, 2010, our principal banking subsidiary, Stillwater National Bank and Trust Company (“Stillwater National”) entered into a formal agreement with the United States Comptroller of the Currency (“OCC”) relating to its levels of commercial real estate lending and problem assets. The OCC is the primary regulator for national banks. Additional information regarding this agreement is included later in this release under the heading “Regulatory Matters.”
The economy continues to show weakness. In 2010 our goals are to work diligently to identify and resolve problem credits, reduce our commercial lending concentrations, and comply with our agreement with the OCC while continuing to produce consistent net interest income.
Southwest and its bank subsidiaries have maintained capital levels that significantly exceed the minimums for regulatory “well capitalized” status. At December 31, 2009, our total regulatory capital was $413.4 million for a total risk-based capital ratio of 14.55%, and Tier 1 capital was $377.4 million for a Tier 1 risk-based capital ratio of 13.28%.
2009 Results
Net interest income growth and expense control made it possible for us to generate $8.8 million in net income for our common shareholders in 2009, while increasing the allowance for loan losses by $22.6 million.
Significant developments during the year include:
| | • | | Improved net interest income; |
| |
| | • | | Provide additional allowance and provision for loan losses; |
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
| | • | | Increased regulatory capital; |
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| | • | | Increase in nonperforming assets; |
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| | • | | Greater use of core funding; |
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| | • | | Decreased personnel costs and overall noninterest expenses; and |
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| | • | | Acquired First National Bank of Anthony, (“FNBA”), Anthony, Kansas in an FDIC-assisted transaction during the second quarter.” |
Financial Overview
Condition: Total assets were $3.1 billion at December 31, 2009, an increase of 8% from December 31, 2008. At December 31, 2009 total loans were $2.7 billion, which includes $85.4 million of loans acquired from FNBA in the second quarter.
At December 31, 2009, the allowance for loan losses was $62.4 million, up 57% from year-end 2008 and represented 2.46% of noncovered portfolio loans versus 1.59% at December 31, 2008. 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. For the year ended December 31, 2009, the provision for loan losses increased by $20.2 million, or 106%, over the provision for the year ended December 31, 2008. The provision for loan losses exceeded net charge-offs by $4.6 million for the fourth quarter and $22.6 million for the year.
In the second quarter of 2009, Bank of Kansas, a subsidiary of Southwest, acquired assets and assumed liabilities of FNBA 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. (Assets subject to these agreements are referred to as “covered”.)
Excluding covered assets, nonperforming assets increased to $124.6 million and 4.87% of portfolio loans and other real estate owned as of December 31, 2009 from $111.7 million and 4.33% of portfolio loans and other real estate owned as of September 30, 2009 and from $70.1 million and 2.80% of portfolio loans and other real estate owned at December 31, 2008. A breakdown of noncovered portfolio loans and noncovered nonperforming assets by type is shown in the following table:
| | | | | | | | | | | | | | | | | |
| | | Noncovered | | | Percentage of | | | Noncovered | | | Percentage of | |
| | | portfolio | | | total noncovered | | | nonperforming | | | total noncovered | |
| (dollars in thousands) | | loans | | | portfolio loans | | | assets | | | nonperforming assets | |
| Real estate construction | | $ | 659,187 | | | | 25.96 | % | | $ | 57,586 | | | | 46.21 | % |
| Commercial real estate | | | 1,212,409 | | | | 47.75 | | | | 28,451 | | | | 22.83 | |
| Commercial | | | 519,146 | | | | 20.44 | | | | 10,422 | | | | 8.36 | |
| Residential real estate mortgages | | | 109,002 | | | | 4.29 | | | | 9,463 | | | | 7.59 | |
| Other consumer loans | | | 39,550 | | | | 1.56 | | | | 275 | | | | 0.22 | |
| Other real estate owned | | | — | | | | — | | | | 18,432 | | | | 14.79 | |
| | | | | | | | | | | | | |
| Total | | $ | 2,539,294 | | | | 100.00 | % | | $ | 124,629 | | | | 100.00 | % |
| | | | | | | | | | | | | |
Excluding covered loans, nonaccrual loans were $105.9 million as of December 31, 2009, an increase of $11.2 million from September 30, 2009 and $46.6 million from December 31, 2008. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due, another component of nonperforming assets, were $310,000 as of December 31, 2009 and decreased $10.3 million from September 30, 2009 and $4.4 million from December 31, 2008. These loans are deemed to have sufficient collateral and are in the process of collection.
Performing loans considered potential problem loans, which are not included in the past due or nonaccrual 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
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
to $267.3 million at December 31, 2009, an increase of $7.8 million from September 30, 2009 and $135.8 million from December 31, 2008. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.
Southwest’s core business is lending. Our primary lending activity is for commercial real estate occupied by businesses and lending to health care professions for start up medical and dental practices, office buildings, surgery centers, hospitals, and facilities for retirement and long-term care. Our loan portfolio includes commercial construction loans and commercial loans secured by completed projects. Real estate construction and commercial real estate represents the majority of our problem assets in each of our markets.
During 2008 and 2009, we continued to evaluate the appropriate limits on types of lending based upon regular studies of commercial real estate and healthcare markets. In 2010, we plan to reduce the percentage of commercial real estate and commercial real estate construction loans to total portfolio loans in view of current economic conditions. Our plan focus is 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. These changes have significant effects on loan growth. Year-over-year, outstanding portfolio loans increased by $130.2 million, or 5%, however, the growth was driven by the acquisition of $117.1 million of loans in the FNBA transaction and significant advances on commitments made in 2008. We expect to see our loans decrease in 2010 as a result of our plans and soft demand in our markets.
At December 31, 2009, Southwest exceeded all applicable regulatory capital requirements. 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 $129.3 million. 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 $5.8 million decrease in our net income available to common shareholders from 2008 is the result of a $20.2 million increase in the provision for loan losses, a $3.5 million increase in FDIC insurance and other insurance expense, and a $3.9 million increase 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 $1.8 million decrease in general and administrative expenses, a $1.9 million decrease in income tax expense, a $9.0 million increase in net interest income, a $2.8 million increase in other noninterest income, and a $2.0 million increase in gain on sale of investment securities.
Net Interest Income: Net interest income totaled $98.7 million for 2009, compared to $89.7 million for 2008. Net interest margin was 3.38% compared to 3.36% 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 6 basis points lower without this recovery. Included in the fourth quarter net interest income is recognition of discount income due to prepayment and collection of loans acquired in the FNBA transaction in excess of the recorded value at the date of the acquisition. This increased net margin by 3 basis points.
Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $39.2 million for 2009, compared to $19.0 million for 2008. Noncovered net charge offs totaled $16.8 million, or 0.64% of average noncovered portfolio loans for 2009, compared to $8.8 million, or 0.37% of average noncovered portfolio loans for 2008.
Noninterest Income: For 2009, noninterest income totaled $21.9 million, compared to $16.1 million for 2008. The increase in noninterest income was primarily the result of a $2.0 million increase in gain on sale of investment securities and a $2.8 million increase in other noninterest income, which includes the $3.3 million gain on the FNBA acquisition that occurred in the second quarter.
Noninterest Expense: For 2009, noninterest expense totaled $60.9 million, compared to $62.5 million for 2008. The decrease primarily consists of a $4.0 million reduction in personnel expense, a $940,000 decrease in other general and administrative expenses, and an $865,000 decrease in provision for unfunded loan commitments,
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
offset in part by a $3.5 million increase in FDIC and other insurance expense and a $765,000 increase in occupancy expense.
Efficiency Ratio: The efficiency ratio improved to 50.45% for 2009 from 59.03% for 2008.
Fourth Quarter Results:
Summary: The $448,000 decrease in our net income available to common shareholders compared to the fourth quarter of 2008 was the result of a $3.9 million increase in the provision for loan losses, a $2.2 million increase in noninterest expense, and a $797,000 increase in quarterly dividends on the preferred stock that we issued in December 2008, offset in part by a $5.4 million increase in net interest income and a $1.1 million increase in noninterest income.
Net Interest Income: Net interest income totaled $27.8 million for the fourth quarter of 2009, compared to $22.4 million for the fourth quarter of 2008. Net interest margin was 3.71% for the fourth quarter of 2009, compared to 3.22% for the fourth quarter of 2008. Included in net interest income is recognition of discount income due to prepayment and collection of loans acquired in the FNBA transaction in excess of the recorded value at the date of acquisition. This increased net margin by 12 basis points.
Provision for Loan Losses: The provision for loan losses totaled $10.6 million for the fourth quarter of 2009, compared to $6.7 million for the fourth quarter of 2008. Noncovered net charge offs totaled $6.2 million, or 0.95% (annualized) of average noncovered portfolio loans for the fourth quarter of 2009, compared to $2.7 million, or 0.44% (annualized) of average noncovered portfolio loans, for the fourth quarter of 2008.
Noninterest Income: Noninterest income totaled $4.5 million for the fourth quarter of 2009, compared to $3.4 million for the fourth quarter of 2008. The increase is the result of a $387,000 increase in service charges and fees, a $313,000 increase in the gain on sale of loans, and a $299,000 increase in the gain on sale of securities.
Noninterest Expense: Noninterest expense totaled $16.0 million for the fourth quarter of 2009, a $2.2 million increase from the fourth quarter of 2008. The increase primarily consists of a $960,000 increase in personnel expense, a $747,000 increase in other general and administrative expenses, and a $456,000 increase in FDIC and other insurance expense.
Efficiency Ratio: The efficiency ratio for the fourth quarter of 2009 improved to 49.69% from 53.37% for the fourth quarter of 2008.
New Business Opportunity
There is strong demand for rural healthcare facilities, focusing on areas and cities with populations of less than 100,000. Southwest is providing funding for three new hospitals now under construction in rural areas of three different states, under a United States Department of Agriculture (“USDA”) program that provides a USDA guarantee upon completion of each project. We see this important new business opportunity evolving to position our company with a recurring source of new revenue as our population grows older, lives longer, and prefers staying in their home communities for life.
Southwest Bancorp and Subsidiaries
Southwest 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, Texas, and 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 our three-state market. We operate seven offices in Texas, eleven offices in Oklahoma, and nine offices in Kansas. At December 31, 2009, our Texas segment accounted for $1.1 billion, or 40% of total portfolio loans, followed by $933.2 million, or 36%, from our Oklahoma segment, $359.6 million, or 14%, from our Kansas segment, and $277.5 million, or 11%, from our other states segment.
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest’s public trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.
Regulatory Matters
Under the terms of the January 27, 2010, Agreement with the OCC, Stillwater National is required, to submit written plans to the OCC and to take required actions relating to the following items:
| | • | | Establishing and ensuring compliance with a plan to reduce credit risk and improve loan portfolio management; |
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| | • | | Eliminating credit weaknesses in nonperforming and potential problem loans; |
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| | • | | On-going review and grading of the Stillwater National’s loan portfolio; |
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| | • | | Improving the Stillwater National’s position regarding nonperforming and potential problem loans and other real estate owned; |
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| | • | | Improving loan portfolio concentration risk management; and |
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| | • | | Establishing and operating a loan workout department. |
In addition, Stillwater National is required to prepare a three-year capital plan; and to obtain OCC approval before increasing its use of brokered deposits or declaring dividends.
The compliance committee of the Board of Directors of Stillwater National will submit quarterly reports to the OCC setting forth a description of the actions needed to achieve full compliance with the formal agreement, actions taken to comply, and the results and status of these actions.
Stillwater National remains well-capitalized for regulatory purposes with a leverage ratio of 11.37%, a Tier I risk based capital ratio of 12.00%, and a total risk based capital ratio of 13.84%. General regulatory minimums to be well-capitalized are a leverage ratio of 5.00%, a tier I risk based capital ratio of 6.00%, and a total risk based capital ratio of 10.00%.
Southwest has made informal commitments to the Federal Reserve Bank of Kansas City (“FRB”) which include providing prior notice of the declaration and payment of dividends on trust preferred securities, preferred stock issued under the Treasury Department’s Capital Purchase Program, and common stock, and of planned receipt of dividends from its banking subsidiaries. Southwest also has agreed to submit a capital plan to the FRB and to obtain FRB approval for any additional borrowings at the holding company level. Southwest does not intend to increase its borrowings.
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
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 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.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of December 31, 2009 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2009 financial statements will be adjusted as necessary to properly consider the impact of subsequent events on estimates used to prepare those statements.
NASDAQ: OKSB
OKSBP
Southwest Bancorp Inc. Reports 2009 Earnings
Enters into Regulatory Agreement
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 |
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| SOUTHWEST BANCORP, INC. | | Table 1 |
| UNAUDITED FINANCIAL HIGHLIGHTS | | |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Fourth Quarter | | Third Quarter |
| | | | | | | | | | | % | | | | | | % |
| QUARTERLY HIGHLIGHTS | | 2009 | | 2008 | | Change | | 2009 | | Change |
Operations | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 27,797 | | | $ | 22,414 | | | | 24 | % | | $ | 25,400 | | | | 9 | % |
| Provision for loan losses | | | 10,640 | | | | 6,698 | | | | 59 | | | | 10,177 | | | | 5 | |
| Noninterest income | | | 4,488 | | | | 3,429 | | | | 31 | | | | 3,710 | | | | 21 | |
| Noninterest expense | | | 16,041 | | | | 13,793 | | | | 16 | | | | 15,528 | | | | 3 | |
| Income before taxes | | | 5,604 | | | | 5,352 | | | | 5 | | | | 3,405 | | | | 65 | |
| Taxes on income | | | 2,030 | | | | 2,127 | | | | (5 | ) | | | 1,271 | | | | 60 | |
| Net income | | | 3,574 | | | | 3,225 | | | | 11 | | | | 2,134 | | | | 67 | |
| Net income available to common shareholders | | | 2,534 | | | | 2,982 | | | | (15 | ) | | | 1,097 | | | | 131 | |
| Diluted earnings per share | | | 0.17 | | | | 0.20 | | | | (15 | ) | | | 0.07 | | | | 143 | |
Balance Sheet | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 3,108,291 | | | | 2,879,762 | | | | 8 | | | | 3,029,347 | | | | 3 | |
| Loans held for sale | | | 43,134 | | | | 56,941 | | | | (24 | ) | | | 36,526 | | | | 18 | |
| Noncovered portfolio loans | | | 2,539,294 | | | | 2,494,506 | | | | 2 | | | | 2,572,111 | | | | (1 | ) |
| Covered portfolio loans | | | 85,405 | | | | | | | | — | | | | 103,630 | | | | (18 | ) |
| Total deposits | | | 2,592,730 | | | | 2,180,122 | | | | 19 | | | | 2,473,162 | | | | 5 | |
| Total shareholders’ equity | | | 309,778 | | | | 302,203 | | | | 3 | | | | 309,118 | | | | — | |
| Book value per share | | | 16.46 | | | | 16.18 | | | | 2 | | | | 16.43 | | | | — | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.71 | % | | | 3.22 | % | | | | | | | 3.39 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 49.69 | | | | 53.37 | | | | | | | | 53.34 | | | | | |
| Total capital to risk-weighted assets | | | 14.55 | | | | 14.26 | | | | | | | | 14.31 | | | | | |
| Nonperforming loans to portfolio loans — noncovered | | | 4.18 | | | | 2.56 | | | | | | | | 4.09 | | | | | |
| Shareholders’ equity to total assets | | | 9.97 | | | | 10.49 | | | | | | | | 10.20 | | | | | |
| Tangible common equity to tangible assets | | | 7.61 | | | | 7.96 | | | | | | | | 7.79 | | | | | |
| Return on average assets (annualized) | | | 0.46 | | | | 0.45 | | | | | | | | 0.28 | | | | | |
| Return on average equity (annualized) | | | 4.51 | | | | 5.11 | | | | | | | | 2.72 | | | | | |
| | | | | | | | | | | | | |
| | | Twelve Months |
| | | | | | | | | | | % |
| YEAR-TO-DATE HIGHLIGHTS | | 2009 | | 2008 | | Change |
Operations | | | | | | | | | | | | |
| Net interest income | | $ | 98,691 | | | $ | 89,719 | | | | 10 | % |
| Provision for loan losses | | | 39,176 | | | | 18,979 | | | | 106 | |
| Noninterest income | | | 21,936 | | | | 16,138 | | | | 36 | |
| Noninterest expense | | | 60,858 | | | | 62,488 | | | | (3 | ) |
| Income before taxes | | | 20,593 | | | | 24,390 | | | | (16 | ) |
| Taxes on income | | | 7,611 | | | | 9,489 | | | | (20 | ) |
| Net income | | | 12,982 | | | | 14,901 | | | | (13 | ) |
| Net income available to common shareholders | | | 8,837 | | | | 14,658 | | | | (40 | ) |
| Diluted earnings per share | | | 0.60 | | | | 1.00 | | | | (40 | ) |
Balance Sheet | | | | | | | | | | | | |
| Total assets | | | 3,108,291 | | | | 2,879,762 | | | | 8 | |
| Loans held for sale | | | 43,134 | | | | 56,941 | | | | (24 | ) |
| Noncovered portfolio loans | | | 2,539,294 | | | | 2,494,506 | | | | 2 | |
| Covered portfolio loans | | | 85,405 | | | | — | | | | — | |
| Total deposits | | | 2,592,730 | | | | 2,180,122 | | | | 19 | |
| Total shareholders’ equity | | | 309,778 | | | | 302,203 | | | | 3 | |
| Book value per share | | | 16.46 | | | | 16.18 | | | | 2 | |
Key Ratios | | | | | | | | | | | | |
| Net interest margin | | | 3.38 | % | | | 3.36 | % | | | | |
| Efficiency ratio (GAAP-based) | | | 50.45 | | | | 59.03 | | | | | |
| Total capital to risk-weighted assets | | | 14.55 | | | | 14.26 | | | | | |
| Nonperforming loans to portfolio loans — noncovered | | | 4.18 | | | | 2.56 | | | | | |
| Shareholders’ equity to total assets | | | 9.97 | | | | 10.49 | | | | | |
| Tangible common equity to tangible assets | | | 7.61 | | | | 7.96 | | | | | |
| Return on average assets | | | 0.43 | | | | 0.54 | | | | | |
| Return on average equity | | | 4.20 | | | | 6.40 | | | | | |
Balance sheet amounts and ratios are as of period end unless otherwise noted.
Please see accompanying tables for additional financial information.
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| | | |
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share) | | Table 2 |
| | | | | | | | | |
| | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
Assets | | | | | | | | |
| Cash and due from banks | | $ | 118,847 | | | $ | 27,287 | |
| Investment securities: | | | | | | | | |
| Held to maturity. Fair value: $6,754, $7,293, respectively | | | 6,670 | | | | 7,343 | |
| Available for sale. Amortized cost: $236,199, $233,293, respectively | | | 237,703 | | | | 238,037 | |
| Other investments, at cost | | | 19,066 | | | | 18,786 | |
| Loans held for sale | | | 43,134 | | | | 56,941 | |
| Noncovered loans receivable | | | 2,539,294 | | | | 2,494,506 | |
| Less: Allowance for loan losses | | | (62,413 | ) | | | (39,773 | ) |
| | | | | | | |
| Net noncovered loans receivable | | | 2,476,881 | | | | 2,454,733 | |
| Covered loans receivable (includes loss share receivable of $23.9 million) | | | 85,405 | | | | — | |
| | | | | | | |
| Net loans receivable | | | 2,562,286 | | | | 2,454,733 | |
| Accrued interest receivable | | | 10,806 | | | | 11,512 | |
| Premises and equipment, net | | | 26,536 | | | | 24,580 | |
| Noncovered other real estate | | | 18,432 | | | | 6,092 | |
| Covered other real estate | | | 4,748 | | | | — | |
| Goodwill | | | 6,811 | | | | 7,071 | |
| Other intangible assets, net | | | 5,779 | | | | 3,764 | |
| Other assets | | | 47,473 | | | | 23,616 | |
| | | | | | | |
| Total assets | | $ | 3,108,291 | | | $ | 2,879,762 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | 324,829 | | | $ | 261,940 | |
| Interest-bearing demand | | | 74,201 | | | | 76,027 | |
| Money market accounts | | | 505,521 | | | | 454,250 | |
| Savings accounts | | | 25,730 | | | | 14,135 | |
| Time deposits of $100,000 or more | | | 1,004,439 | | | | 802,244 | |
| Other time deposits | | | 658,010 | | | | 571,526 | |
| | | | | | | |
| Total deposits | | | 2,592,730 | | | | 2,180,122 | |
| Accrued interest payable | | | 3,191 | | | | 7,018 | |
| Income tax payable | | | 4,486 | | | | 3,651 | |
| Other liabilities | | | 13,121 | | | | 9,667 | |
| Other borrowings | | | 103,022 | | | | 295,138 | |
| Subordinated debentures | | | 81,963 | | | | 81,963 | |
| | | | | | | |
| Total liabilities | | | 2,798,513 | | | | 2,577,559 | |
| | | | | | | | | |
Shareholders’ equity | | | | | | | | |
| Preferred stock, Series B — $1,000 par value; 1,250,000 shares authorized; 70,000 shares issued | | | 67,037 | | | | 66,392 | |
| Common stock — $1 par value; 20,000,000 shares authorized; 14,750,713 and 14,658,042 shares issued, respectively | | | 14,751 | | | | 14,658 | |
| Paid in capital | | | 49,029 | | | | 49,101 | |
| Retained earnings | | | 178,016 | | | | 170,579 | |
| Accumulated other comprehensive income | | | 945 | | | | 2,921 | |
| Treasury stock, at cost, 0 and 80,383 shares, respectively | | | — | | | | (1,448 | ) |
| | | | | | | |
| Total shareholders’ equity | | | 309,778 | | | | 302,203 | |
| | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 3,108,291 | | | $ | 2,879,762 | |
| | | | | | | |
| | |
| | | |
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, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Interest income | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,355 | | | $ | 36,183 | | | $ | 141,239 | | | $ | 152,719 | |
| Investment securities | | | 2,433 | | | | 2,693 | | | | 9,146 | | | | 9,986 | |
| Other interest-earning assets | | | 1 | | | | 19 | | | | 14 | | | | 89 | |
| | | | | | | | | | | | | |
| Total interest income | | | 38,789 | | | | 38,895 | | | | 150,399 | | | | 162,794 | |
| | | | | | | | | | | | | | | | | |
Interest expense | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 9,090 | | | | 13,263 | | | | 42,319 | | | | 61,022 | |
| Other borrowings | | | 625 | | | | 1,487 | | | | 4,049 | | | | 7,242 | |
| Subordinated debentures | | | 1,277 | | | | 1,731 | | | | 5,340 | | | | 4,811 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 10,992 | | | | 16,481 | | | | 51,708 | | | | 73,075 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income | | | 27,797 | | | | 22,414 | | | | 98,691 | | | | 89,719 | |
| | | | | | | | | | | | | | | | | |
| Provision for loan losses | | | 10,640 | | | | 6,698 | | | | 39,176 | | | | 18,979 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 17,157 | | | | 15,716 | | | | 59,515 | | | | 70,740 | |
| | | | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 3,295 | | | | 2,908 | | | | 11,704 | | | | 11,026 | |
| Gain on acquisition | | | — | | | | — | | | | 3,281 | | | | — | |
| Gain on sales of loans | | | 933 | | | | 620 | | | | 2,963 | | | | 2,664 | |
| Gain (loss) on investment securities | | | 3 | | | | (296 | ) | | | 2,925 | | | | 902 | |
| Other noninterest income | | | 257 | | | | 197 | | | | 1,063 | | | | 1,546 | |
| | | | | | | | | | | | | |
| Total noninterest income | | | 4,488 | | | | 3,429 | | | | 21,936 | | | | 16,138 | |
| | | | | | | | | | | | | | | | | |
Noninterest expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 7,349 | | | | 6,389 | | | | 29,299 | | | | 33,330 | |
| Occupancy | | | 3,159 | | | | 2,844 | | | | 11,637 | | | | 10,872 | |
| FDIC and other insurance | | | 1,101 | | | | 645 | | | | 5,545 | | | | 2,088 | |
| Other real estate, net | | | 39 | | | | 31 | | | | 130 | | | | 146 | |
| General and administrative | | | 4,393 | | | | 3,884 | | | | 14,247 | | | | 16,052 | |
| | | | | | | | | | | | | |
| Total noninterest expense | | | 16,041 | | | | 13,793 | | | | 60,858 | | | | 62,488 | |
| | | | | | | | | | | | | |
| Income before taxes | | | 5,604 | | | | 5,352 | | | | 20,593 | | | | 24,390 | |
| Taxes on income | | | 2,030 | | | | 2,127 | | | | 7,611 | | | | 9,489 | |
| | | | | | | | | | | | | |
| Net income | | $ | 3,574 | | | $ | 3,225 | | | $ | 12,982 | | | $ | 14,901 | |
| | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 2,534 | | | $ | 2,982 | | | $ | 8,837 | | | $ | 14,658 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.17 | | | $ | 0.21 | | | $ | 0.60 | | | $ | 1.01 | |
| Diluted earnings per common share | | | 0.17 | | | | 0.20 | | | | 0.60 | | | | 1.00 | |
| Common dividends declared per share | | | 0.0238 | | | | 0.0950 | | | | 0.0952 | | | | 0.3800 | |
| | |
| | | |
SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands) | | Table 4 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended December 31, | |
| | | 2009 | | | 2008 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncovered loans | | $ | 2,613,741 | | | $ | 34,881 | | | | 5.29 | % | | $ | 2,512,425 | | | $ | 36,183 | | | | 5.73 | % |
| Covered loans | | | 91,459 | | | | 1,474 | | | | 6.39 | | | | — | | | | — | | | | — | |
| Investment securities | | | 264,216 | | | | 2,433 | | | | 3.65 | | | | 249,846 | | | | 2,693 | | | | 4.29 | |
| Other interest-earning assets | | | 5,624 | | | | 1 | | | | 0.07 | | | | 5,116 | | | | 19 | | | | 1.48 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,975,040 | | | | 38,789 | | | | 5.17 | | | | 2,767,387 | | | | 38,895 | | | | 5.59 | |
| Other assets | | | 74,889 | | | | | | | | | | | | 68,822 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 3,049,929 | | | | | | | | | | | $ | 2,836,209 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 75,614 | | | $ | 66 | | | | 0.35 | % | | $ | 76,359 | | | $ | 130 | | | | 0.68 | % |
| Money market accounts | | | 502,247 | | | | 1,170 | | | | 0.92 | | | | 513,095 | | | | 2,132 | | | | 1.65 | |
| Savings accounts | | | 25,388 | | | | 16 | | | | 0.25 | | | | 14,375 | | | | 11 | | | | 0.30 | |
| Time deposits | | | 1,585,240 | | | | 7,838 | | | | 1.96 | | | | 1,300,295 | | | | 10,990 | | | | 3.36 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,188,489 | | | | 9,090 | | | | 1.65 | | | | 1,904,124 | | | | 13,263 | | | | 2.77 | |
| Other borrowings | | | 127,378 | | | | 625 | | | | 1.95 | | | | 297,155 | | | | 1,487 | | | | 1.99 | |
| Subordinated debentures | | | 81,963 | | | | 1,277 | | | | 6.23 | | | | 81,963 | | | | 1,731 | | | | 8.45 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,397,830 | | | | 10,992 | | | | 1.82 | | | | 2,283,242 | | | | 16,481 | | | | 2.87 | |
| | | | | | | | | | | | | | | | | | | | | |
| |
| Noninterest-bearing demand deposits | | | 316,784 | | | | | | | | | | | | 279,268 | | | | | | | | | |
| Other liabilities | | | 20,751 | | | | | | | | | | | | 22,693 | | | | | | | | | |
| Shareholders’ equity | | | 314,564 | | | | | | | | | | | | 251,006 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 3,049,929 | | | | | | | | | | | $ | 2,836,209 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 27,797 | | | | 3.35 | % | | | | | | $ | 22,414 | | | | 2.72 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.71 | % | | | | | | | | | | | 3.22 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 124.07 | % | | | | | | | | | | | 121.20 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (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, | |
| | | 2009 | | | 2008 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans (2) | | $ | 2,667,771 | | | $ | 141,239 | | | | 5.29 | % | | $ | 2,429,129 | | | $ | 152,719 | | | | 6.29 | % |
| Investment securities | | | 245,456 | | | | 9,146 | | | | 3.73 | | | | 238,653 | | | | 9,986 | | | | 4.18 | |
| Other interest-earning assets | | | 5,813 | | | | 14 | | | | 0.24 | | | | 3,854 | | | | 89 | | | | 2.31 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,919,040 | | | | 150,399 | | | | 5.15 | | | | 2,671,636 | | | | 162,794 | | | | 6.09 | |
| Other assets | | | 68,430 | | | | | | | | | | | | 71,263 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,987,470 | | | | | | | | | | | $ | 2,742,899 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 83,813 | | | $ | 476 | | | | 0.57 | % | | $ | 75,950 | | | $ | 584 | | | | 0.77 | % |
| Money market accounts | | | 485,383 | | | | 4,954 | | | | 1.02 | | | | 538,148 | | | | 12,620 | | | | 2.35 | |
| Savings accounts | | | 21,010 | | | | 78 | | | | 0.37 | | | | 13,930 | | | | 69 | | | | 0.50 | |
| Time deposits | | | 1,518,638 | | | | 36,811 | | | | 2.42 | | | | 1,253,057 | | | | 47,749 | | | | 3.81 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,108,844 | | | | 42,319 | | | | 2.01 | | | | 1,881,085 | | | | 61,022 | | | | 3.24 | |
| Other borrowings | | | 181,682 | | | | 4,049 | | | | 2.23 | | | | 274,106 | | | | 7,242 | | | | 2.64 | |
| Subordinated debentures | | | 81,963 | | | | 5,340 | | | | 6.52 | | | | 64,064 | | | | 4,811 | | | | 7.51 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,372,489 | | | | 51,708 | | | | 2.18 | | | | 2,219,255 | | | | 73,075 | | | | 3.29 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 285,184 | | | | | | | | | | | | 268,770 | | | | | | | | | |
| Other liabilities | | | 20,845 | | | | | | | | | | | | 22,043 | | | | | | | | | |
| Shareholders’ equity | | | 308,952 | | | | | | | | | | | | 232,831 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,987,470 | | | | | | | | | | | $ | 2,742,899 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 98,691 | | | | 2.97 | % | | | | | | $ | 89,719 | | | | 2.80 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.38 | % | | | | | | | | | | | 3.36 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 123.04 | % | | | | | | | | | | | 120.38 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = net interest income / average interest-earning assets. |
| |
| (2) | | Information regarding noncovered and covered loans for the period shown is not readily available. |
| | |
| SOUTHWEST BANCORP, INC. | | Table 6 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2009 | | | 2008 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 36,355 | | | $ | 35,607 | | | $ | 36,009 | | | $ | 33,268 | | | $ | 36,183 | | | $ | 38,441 | | | $ | 37,485 | | | $ | 40,610 | |
| Investment securities | | | 2,433 | | | | 2,122 | | | | 2,079 | | | | 2,512 | | | | 2,693 | | | | 2,531 | | | | 2,426 | | | | 2,336 | |
| Other interest-earning assets | | | 1 | | | | 4 | | | | 3 | | | | 6 | | | | 19 | | | | 22 | | | | 20 | | | | 28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 38,789 | | | | 37,733 | | | | 38,091 | | | | 35,786 | | | | 38,895 | | | | 40,994 | | | | 39,931 | | | | 42,974 | |
Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 66 | | | | 107 | | | | 150 | | | | 153 | | | | 130 | | | | 147 | | | | 166 | | | | 141 | |
| Money market accounts | | | 1,170 | | | | 1,220 | | | | 1,211 | | | | 1,353 | | | | 2,132 | | | | 2,898 | | | | 3,062 | | | | 4,528 | |
| Savings accounts | | | 16 | | | | 39 | | | | 14 | | | | 9 | | | | 11 | | | | 17 | | | | 19 | | | | 22 | |
| Time deposits of $100,000 or more | | | 4,340 | | | | 4,822 | | | | 5,552 | | | | 5,980 | | | | 6,419 | | | | 6,879 | | | | 7,051 | | | | 7,865 | |
| Other time deposits | | | 3,498 | | | | 3,909 | | | | 4,145 | | | | 4,565 | | | | 4,571 | | | | 4,457 | | | | 4,809 | | | | 5,698 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 9,090 | | | | 10,097 | | | | 11,072 | | | | 12,060 | | | | 13,263 | | | | 14,398 | | | | 15,107 | | | | 18,254 | |
| Other borrowings | | | 625 | | | | 960 | | | | 1,180 | | | | 1,284 | | | | 1,487 | | | | 1,839 | | | | 1,887 | | | | 2,029 | |
| Subordinated debentures | | | 1,277 | | | | 1,276 | | | | 1,383 | | | | 1,404 | | | | 1,731 | | | | 1,569 | | | | 653 | | | | 858 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 10,992 | | | | 12,333 | | | | 13,635 | | | | 14,748 | | | | 16,481 | | | | 17,806 | | | | 17,647 | | | | 21,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 27,797 | | | | 25,400 | | | | 24,456 | | | | 21,038 | | | | 22,414 | | | | 23,188 | | | | 22,284 | | | | 21,833 | |
| Provision for loan losses | | | 10,640 | | | | 10,177 | | | | 7,477 | | | | 10,882 | | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 3,295 | | | | 2,992 | | | | 2,817 | | | | 2,600 | | | | 2,908 | | | | 2,849 | | | | 2,812 | | | | 2,457 | |
| Gain on sales of loans | | | 933 | | | | 386 | | | | 926 | | | | 718 | | | | 620 | | | | 601 | | | | 603 | | | | 840 | |
| Gain (loss) on investment securities | | | 3 | | | | 10 | | | | (9 | ) | | | 2,921 | | | | (296 | ) | | | (50 | ) | | | 3 | | | | 1,245 | |
| Other noninterest income | | | 257 | | | | 322 | | | | 3,527 | | | | 238 | | | | 197 | | | | 662 | | | | 541 | | | | 146 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest income | | | 4,488 | | | | 3,710 | | | | 7,261 | | | | 6,477 | | | | 3,429 | | | | 4,062 | | | | 3,959 | | | | 4,688 | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 7,349 | | | | 7,824 | | | | 6,887 | | | | 7,239 | | | | 6,389 | | | | 8,863 | | | | 8,856 | | | | 9,222 | |
| Occupancy | | | 3,159 | | | | 2,958 | | | | 2,789 | | | | 2,731 | | | | 2,844 | | | | 2,968 | | | | 2,602 | | | | 2,458 | |
| FDIC and other insurance | | | 1,101 | | | | 1,134 | | | | 2,319 | | | | 991 | | | | 645 | | | | 469 | | | | 521 | | | | 453 | |
| Other real estate, net | | | 39 | | | | 90 | | | | 103 | | | | (102 | ) | | | 31 | | | | (92 | ) | | | 197 | | | | 10 | |
| Provision for unfunded loan commitments | | | 147 | | | | (79 | ) | | | (388 | ) | | | 90 | | | | 385 | | | | 90 | | | | 15 | | | | 145 | |
| Other general and administrative | | | 4,246 | | | | 3,601 | | | | 2,980 | | | | 3,650 | | | | 3,499 | | | | 4,235 | | | | 4,141 | | | | 3,542 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 16,041 | | | | 15,528 | | | | 14,690 | | | | 14,599 | | | | 13,793 | | | | 16,533 | | | | 16,332 | | | | 15,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before taxes | | | 5,604 | | | | 3,405 | | | | 9,550 | | | | 2,034 | | | | 5,352 | | | | 3,862 | | | | 6,721 | | | | 8,455 | |
| Taxes on income | | | 2,030 | | | | 1,271 | | | | 3,605 | | | | 705 | | | | 2,127 | | | | 1,556 | | | | 2,559 | | | | 3,247 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,574 | | | $ | 2,134 | | | $ | 5,945 | | | $ | 1,329 | | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to common shareholders | | $ | 2,534 | | | $ | 1,097 | | | $ | 4,910 | | | $ | 296 | | | $ | 2,982 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.17 | | | $ | 0.07 | | | $ | 0.34 | | | $ | 0.02 | | | $ | 0.21 | | | $ | 0.16 | | | $ | 0.29 | | | $ | 0.36 | |
| Diluted earnings per common share | | | 0.17 | | | | 0.07 | | | | 0.33 | | | | 0.02 | | | | 0.20 | | | | 0.16 | | | | 0.28 | | | | 0.36 | |
| Common dividends declared per share | | | 0.0238 | | | | 0.0238 | | | | 0.0238 | | | | 0.0238 | | | | 0.0950 | | | | 0.0950 | | | | 0.0950 | | | | 0.0950 | |
| Book value per share | | | 16.46 | | | | 16.43 | | | | 16.30 | | | | 16.01 | | | | 16.18 | | | | 15.56 | | | | 15.49 | | | | 15.43 | |
| Tangible book value per share | | | 15.99 | | | | 15.96 | | | | 15.84 | | | | 15.52 | | | | 15.69 | | | | 15.08 | | | | 15.00 | | | | 14.95 | |
COMMON STOCK | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 14,750,713 | | | | 14,748,223 | | | | 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 | | | 14,750,713 | | | | 14,748,223 | | | | 14,642,440 | | | | 14,608,112 | | | | 14,577,659 | | | | 14,528,456 | | | | 14,526,476 | | | | 14,524,437 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
OTHER FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 263,439 | | | $ | 258,790 | | | $ | 243,077 | | | $ | 179,006 | | | $ | 264,166 | | | $ | 241,728 | | | $ | 234,429 | | | $ | 236,059 | |
| Loans held for sale | | | 43,134 | | | | 36,526 | | | | 26,006 | | | | 76,404 | | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | |
| Noncovered portfolio loans | | | 2,539,294 | | | | 2,572,111 | | | | 2,587,230 | | | | 2,526,293 | | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | |
| Total noncovered loans | | | 2,582,428 | | | | 2,608,637 | | | | 2,613,236 | | | | 2,602,697 | | | | 2,551,447 | | | | 2,512,339 | | | | 2,444,785 | | | | 2,353,970 | |
| Covered portfolio loans | | | 85,405 | | | | 103,630 | | | | 117,096 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total assets | | | 3,108,291 | | | | 3,029,347 | | | | 3,038,985 | | | | 2,928,133 | | | | 2,879,762 | | | | 2,832,371 | | | | 2,773,013 | | | | 2,670,580 | |
| Total deposits | | | 2,592,730 | | | | 2,473,162 | | | | 2,452,295 | | | | 2,330,089 | | | | 2,180,122 | | | | 2,198,719 | | | | 2,211,001 | | | | 2,094,927 | |
| Other borrowings | | | 103,022 | | | | 146,449 | | | | 176,368 | | | | 193,739 | | | | 295,138 | | | | 299,118 | | | | 265,614 | | | | 282,513 | |
| Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 46,393 | | | | 46,393 | |
| Total shareholders’ equity | | | 309,778 | | | | 309,118 | | | | 305,416 | | | | 300,406 | | | | 302,203 | | | | 226,123 | | | | 224,949 | | | | 224,155 | |
| Mortgage servicing portfolio | | | 237,459 | | | | 223,226 | | | | 209,425 | | | | 179,959 | | | | 158,143 | | | | 153,250 | | | | 147,672 | | | | 145,028 | |
INTANGIBLE ASSET DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | | | $ | 7,071 | |
| Core deposit intangible | | | 4,103 | | | | 4,240 | | | | 4,378 | | | | 2,498 | | | | 2,596 | | | | 2,693 | | | | 2,792 | | | | 2,893 | |
| Mortgage servicing rights | | | 1,670 | | | | 1,625 | | | | 1,589 | | | | 1,362 | | | | 1,159 | | | | 1,417 | | | | 1,354 | | | | 1,299 | |
| Nonmortgage servicing rights | | | 6 | | | | 7 | | | | 7 | | | | 8 | | | | 9 | | | | 10 | | | | 11 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total intangible assets | | $ | 12,590 | | | $ | 12,683 | | | $ | 12,785 | | | $ | 10,939 | | | $ | 10,835 | | | $ | 11,191 | | | $ | 11,228 | | | $ | 11,276 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Intangible amortization expense | | $ | 381 | | | $ | 344 | | | $ | 391 | | | $ | 204 | | | $ | 214 | | | $ | 212 | | | $ | 215 | | | $ | 257 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Continued
| | |
| SOUTHWEST BANCORP, INC. | | Table 6 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | Continued |
| (Dollars in thousands except per share) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2009 | | | 2008 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
LOAN COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncovered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 1,212,409 | | | $ | 1,221,739 | | | $ | 1,208,819 | | | $ | 1,098,587 | | | $ | 1,118,828 | | | $ | 1,077,601 | | | $ | 991,679 | | | $ | 846,757 | |
| One-to-four family residential | | | 114,614 | | | | 125,034 | | | | 116,068 | | | | 114,111 | | | | 113,665 | | | | 116,270 | | | | 118,056 | | | | 110,938 | |
| Real estate construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 618,078 | | | | 612,905 | | | | 622,298 | | | | 640,132 | | | | 579,795 | | | | 554,496 | | | | 583,784 | | | | 654,039 | |
| One-to-four family residential | | | 41,109 | | | | 39,009 | | | | 51,292 | | | | 79,309 | | | | 79,565 | | | | 79,843 | | | | 82,972 | | | | 90,051 | |
| Commercial | | | 520,505 | | | | 538,757 | | | | 554,734 | | | | 558,834 | | | | 564,670 | | | | 574,087 | | | | 566,830 | | | | 544,183 | |
| Installment and consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Guaranteed student loans | | | 36,163 | | | | 30,949 | | | | 18,477 | | | | 69,792 | | | | 54,057 | | | | 67,610 | | | | 57,413 | | | | 63,706 | |
| Other | | | 39,550 | | | | 40,244 | | | | 41,548 | | | | 41,932 | | | | 40,867 | | | | 42,432 | | | | 44,051 | | | | 44,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noncovered loans, including held for sale | | | 2,582,428 | | | | 2,608,637 | | | | 2,613,236 | | | | 2,602,697 | | | | 2,551,447 | | | | 2,512,339 | | | | 2,444,785 | | | | 2,353,970 | |
| Less allowance for loan losses | | | (62,413 | ) | | | (57,777 | ) | | | (51,753 | ) | | | (46,262 | ) | | | (39,773 | ) | | | (35,807 | ) | | | (31,341 | ) | | | (29,950 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total noncovered loans, net | | $ | 2,520,015 | | | $ | 2,550,860 | | | $ | 2,561,483 | | | $ | 2,556,435 | | | $ | 2,511,674 | | | $ | 2,476,532 | | | $ | 2,413,444 | | | $ | 2,324,020 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| By statement of condition category: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Covered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 39,836 | | | $ | 37,820 | | | $ | 40,411 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| One-to-four family residential | | | 12,630 | | | | 17,246 | | | | 17,889 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Real estate construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 12,515 | | | | 14,178 | | | | 14,277 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| One-to-four family residential | | | 5,324 | | | | 9,936 | | | | 13,647 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Commercial | | | 13,412 | | | | 21,475 | | | | 27,203 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Installment and consumer: | | | 1,688 | | | | 2,975 | | | | 3,669 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total covered loans | | $ | 85,405 | | | $ | 103,630 | | | $ | 117,096 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
DEPOSIT COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand | | $ | 324,829 | | | $ | 309,767 | | | $ | 291,014 | | | $ | 274,175 | | | $ | 261,940 | | | $ | 280,453 | | | $ | 299,699 | | | $ | 248,315 | |
| Interest-bearing demand | | | 74,201 | | | | 82,622 | | | | 94,060 | | | | 85,629 | | | | 76,027 | | | | 70,471 | | | | 81,415 | | | | 71,450 | |
| Money market accounts | | | 505,521 | | | | 506,196 | | | | 483,162 | | | | 467,924 | | | | 454,250 | | | | 554,357 | | | | 548,099 | | | | 553,850 | |
| Savings accounts | | | 25,730 | | | | 25,636 | | | | 25,660 | | | | 15,797 | | | | 14,135 | | | | 14,452 | | | | 13,809 | | | | 13,808 | |
| Time deposits of $100,000 or more | | | 1,004,439 | | | | 888,814 | | | | 905,202 | | | | 849,814 | | | | 802,244 | | | | 731,773 | | | | 740,174 | | | | 690,421 | |
| Other time deposits | | | 658,010 | | | | 660,127 | | | | 653,197 | | | | 636,750 | | | | 571,526 | | | | 547,213 | | | | 527,805 | | | | 517,083 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total deposits* | | $ | 2,592,730 | | | $ | 2,473,162 | | | $ | 2,452,295 | | | $ | 2,330,089 | | | $ | 2,180,122 | | | $ | 2,198,719 | | | $ | 2,211,001 | | | $ | 2,094,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 933,150 | | | $ | 943,982 | | | $ | 967,981 | | | $ | 949,454 | | | $ | 966,243 | | | $ | 962,611 | | | $ | 965,952 | | | $ | 943,331 | |
| Texas banking | | | 1,054,404 | | | | 1,042,369 | | | | 1,037,694 | | | | 990,135 | | | | 947,603 | | | | 892,998 | | | | 857,160 | | | | 797,700 | |
| Kansas banking | | | 359,633 | | | | 400,710 | | | | 412,314 | | | | 309,774 | | | | 304,855 | | | | 288,268 | | | | 277,887 | | | | 287,339 | |
| Other states banking | | | 277,512 | | | | 288,680 | | | | 286,337 | | | | 276,930 | | | | 275,805 | | | | 296,214 | | | | 280,894 | | | | 259,236 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 2,624,699 | | | | 2,675,741 | | | | 2,704,326 | | | | 2,526,293 | | | | 2,494,506 | | | | 2,440,091 | | | | 2,381,893 | | | | 2,287,606 | |
| Secondary market | | | 43,134 | | | | 36,526 | | | | 26,006 | | | | 76,404 | | | | 56,941 | | | | 72,248 | | | | 62,892 | | | | 66,364 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 2,667,833 | | | $ | 2,712,267 | | | $ | 2,730,332 | | | $ | 2,602,697 | | | $ | 2,551,447 | | | $ | 2,512,339 | | | $ | 2,444,785 | | | $ | 2,353,970 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NET INCOME BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 3,807 | | | $ | 2,529 | | | $ | 3,284 | | | $ | 3,210 | | | $ | 3,783 | | | $ | 3,295 | | | $ | 2,923 | | | $ | 2,503 | |
| Texas banking | | | 3,591 | | | | 2,686 | | | | 3,662 | | | | 1,119 | | | | 2,036 | | | | 1,332 | | | | 1,777 | | | | 2,406 | |
| Kansas banking | | | (2,328 | ) | | | (1,180 | ) | | | 2,405 | | | | 598 | | | | (204 | ) | | | (1,336 | ) | | | (40 | ) | | | 458 | |
| Other states banking | | | 300 | | | | 57 | | | | (78 | ) | | | (1,974 | ) | | | (89 | ) | | | 848 | | | | 1,028 | | | | 969 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal | | | 5,370 | | | | 4,092 | | | | 9,273 | | | | 2,953 | | | | 5,526 | | | | 4,139 | | | | 5,688 | | | | 6,336 | |
| Secondary market | | | (3 | ) | | | (201 | ) | | | 117 | | | | (61 | ) | | | 139 | | | | (149 | ) | | | 40 | | | | (174 | ) |
| Other operations | | | (1,793 | ) | | | (1,757 | ) | | | (3,445 | ) | | | (1,563 | ) | | | (2,440 | ) | | | (1,684 | ) | | | (1,566 | ) | | | (954 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,574 | | | $ | 2,134 | | | $ | 5,945 | | | $ | 1,329 | | | $ | 3,225 | | | $ | 2,306 | | | $ | 4,162 | | | $ | 5,208 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
OFFICES AND EMPLOYEES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FTE Employees | | | 466 | | | | 471 | | | | 478 | | | | 425 | | | | 442 | | | | 458 | | | | 463 | | | | 467 | |
| ATM’s | | | 44 | | | | 44 | | | | 44 | | | | 40 | | | | 41 | | | | 41 | | | | 40 | | | | 40 | |
| Branches | | | 24 | | | | 24 | | | | 24 | | | | 18 | | | | 18 | | | | 18 | | | | 17 | | | | 17 | |
| Loan production offices | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | | | | 3 | |
| Assets per employee | | $ | 6,670 | | | $ | 6,432 | | | $ | 6,358 | | | $ | 6,890 | | | $ | 6,515 | | | $ | 6,184 | | | $ | 5,989 | | | $ | 5,719 | |
| | |
| * | | Calculation of Core Deposits and Core Funding (Non-GAAP Financial Measures) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 2,592,730 | | | $ | 2,473,162 | | | $ | 2,452,295 | | | $ | 2,330,089 | | | $ | 2,180,122 | | | $ | 2,198,719 | | | $ | 2,211,001 | | | $ | 2,094,927 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Brokered time deposits | | | 329,636 | | | | 274,870 | | | | 334,880 | | | | 374,003 | | | | 359,793 | | | | 338,667 | | | | 369,580 | | | | 337,330 | |
Other time deposits of $100,000 or more | | | 674,903 | | | | 614,143 | | | | 570,617 | | | | 515,463 | | | | 445,896 | | | | 398,337 | | | | 381,349 | | | | 365,875 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Core deposits | | $ | 1,588,191 | | | $ | 1,584,149 | | | $ | 1,546,798 | | | $ | 1,440,623 | | | $ | 1,374,433 | | | $ | 1,461,715 | | | $ | 1,460,072 | | | $ | 1,391,722 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Plus: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other time deposits of $100,000 or more | | | 674,903 | | | | 614,143 | | | | 570,617 | | | | 515,463 | | | | 445,896 | | | | 398,337 | | | | 381,349 | | | | 365,875 | |
Sweep repurchase agreements | | | 23,259 | | | | 26,500 | | | | 35,708 | | | | 24,963 | | | | 38,034 | | | | 47,955 | | | | 41,203 | | | | 35,087 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Core funding | | $ | 2,286,353 | | | $ | 2,224,792 | | | $ | 2,153,123 | | | $ | 1,981,049 | | | $ | 1,858,363 | | | $ | 1,908,007 | | | $ | 1,882,624 | | | $ | 1,792,684 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.46 | % | | | 0.28 | % | | | 0.81 | % | | | 0.18 | % | | | 0.45 | % | | | 0.33 | % | | | 0.62 | % | | | 0.80 | % |
| Return on average common equity (annualized) | | | 4.06 | | | | 1.78 | | | | 8.26 | | | | 1.77 | | | | 5.15 | | | | 3.97 | | | | 7.38 | | | | 9.43 | |
| Return on average tangible equity (annualized) | | | 4.78 | | | | 2.87 | | | | 8.12 | | | | 1.83 | | | | 5.79 | | | | 4.26 | | | | 7.86 | | | | 9.94 | |
| Net interest margin (annualized) | | | 3.71 | | | | 3.39 | | | | 3.41 | | | | 3.00 | | | | 3.22 | | | | 3.39 | | | | 3.38 | | | | 3.45 | |
| Total dividends declared to net income | | | 34.31 | | | | 57.46 | | | | 20.58 | | | | 92.00 | | | | 50.49 | | | | 59.85 | | | | 33.16 | | | | 26.37 | |
| Effective tax rate | | | 36.22 | | | | 37.33 | | | | 37.75 | | | | 34.66 | | | | 39.74 | | | | 40.29 | | | | 38.07 | | | | 38.40 | |
| Efficiency ratio | | | 49.69 | | | | 53.34 | | | | 46.32 | | | | 53.06 | | | | 53.37 | | | | 60.67 | | | | 62.23 | | | | 59.69 | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncovered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to portfolio loans and other real estate owned | | | 4.87 | % | | | 4.33 | % | | | 3.41 | % | | | 3.53 | % | | | 2.80 | % | | | 2.72 | % | | | 1.45 | % | | | 1.41 | % |
| Nonperforming loans to portfolio loans | | | 4.18 | | | | 4.09 | | | | 3.19 | | | | 3.32 | | | | 2.56 | | | | 2.62 | | | | 1.35 | | | | 1.27 | |
| Net loan charge-offs to average portfolio loans (annualized) | | | 0.95 | | | | 0.62 | | | | 0.31 | | | | 0.71 | | | | 0.44 | | | | 0.39 | | | | 0.31 | | | | 0.34 | |
| Allowance for loan losses to portfolio loans | | | 2.46 | | | | 2.25 | | | | 2.00 | | | | 1.83 | | | | 1.59 | | | | 1.47 | | | | 1.32 | | | | 1.31 | |
| Allowance for loan losses to nonperforming loans | | | 58.77 | | | | 54.87 | | | | 62.64 | | | | 55.12 | | | | 62.16 | | | | 56.07 | | | | 97.62 | | | | 103.49 | |
| Covered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to portfolio loans and other real estate owned | | | 20.19 | % | | | 20.55 | % | | | 12.67 | % | | | — | | | | — | | | | — | | | | — | | | | — | |
| Nonperforming loans to portfolio loans | | | 15.76 | | | | 18.56 | | | | 10.47 | | | | — | | | | — | | | | — | | | | — | | | | — | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncovered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 105,887 | | | $ | 94,715 | | | $ | 74,205 | | | $ | 73,383 | | | $ | 59,310 | | | $ | 61,557 | | | $ | 30,861 | | | $ | 26,134 | |
| 90 days past due and accruing | | | 310 | | | | 10,578 | | | | 8,409 | | | | 10,552 | | | | 4,673 | | | | 2,299 | | | | 1,242 | | | | 2,807 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 106,197 | | | | 105,293 | | | | 82,614 | | | | 83,935 | | | | 63,983 | | | | 63,856 | | | | 32,103 | | | | 28,941 | |
| Other real estate owned | | | 18,432 | | | | 6,389 | | | | 6,003 | | | | 5,351 | | | | 6,092 | | | | 2,685 | | | | 2,523 | | | | 3,328 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming assets | | $ | 124,629 | | | $ | 111,682 | | | $ | 88,617 | | | $ | 89,286 | | | $ | 70,075 | | | $ | 66,541 | | | $ | 34,626 | | | $ | 32,269 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Potential problem loans | | $ | 258,399 | | | $ | 255,051 | | | $ | 178,081 | | | $ | 133,810 | | | $ | 131,516 | | | $ | 86,070 | | | $ | 71,070 | | | $ | 69,588 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Covered | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 12,322 | | | $ | 14,686 | | | $ | 8,607 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| 90 days past due and accruing | | | 1,136 | | | | 4,544 | | | | 3,658 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 13,458 | | | | 19,230 | | | | 12,265 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other real estate owned | | | 4,748 | | | | 2,598 | | | | 2,938 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming assets | | $ | 18,206 | | | $ | 21,828 | | | $ | 15,203 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Potential problem loans | | $ | 8,874 | | | $ | 4,421 | | | $ | 5,977 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ALLOWANCE ACTIVITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 57,777 | | | $ | 51,753 | | | $ | 46,262 | | | $ | 39,773 | | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | | | $ | 29,584 | |
| Charge offs | | | 6,756 | | | | 4,372 | | | | 2,975 | | | | 4,810 | | | | 3,254 | | | | 2,752 | | | | 1,892 | | | | 2,044 | |
| Recoveries | | | 752 | | | | 219 | | | | 989 | | | | 417 | | | | 522 | | | | 363 | | | | 93 | | | | 174 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net charge offs | | | 6,004 | | | | 4,153 | | | | 1,986 | | | | 4,393 | | | | 2,732 | | | | 2,389 | | | | 1,799 | | | | 1,870 | |
| Provision for loan losses | | | 10,640 | | | | 10,177 | | | | 7,477 | | | | 10,882 | | | | 6,698 | | | | 6,855 | | | | 3,190 | | | | 2,236 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 62,413 | | | $ | 57,777 | | | $ | 51,753 | | | $ | 46,262 | | | $ | 39,773 | | | $ | 35,807 | | | $ | 31,341 | | | $ | 29,950 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average total shareholders’ equity to average assets | | | 10.31 | % | | | 10.24 | % | | | 10.35 | % | | | 10.47 | % | | | 8.85 | % | | | 8.26 | % | | | 8.35 | % | | | 8.49 | % |
| Leverage ratio | | | 12.42 | | | | 12.39 | | | | 12.70 | | | | 12.72 | | | | 13.06 | | | | 10.51 | | | | 9.66 | | | | 9.91 | |
| Tier 1 capital to risk-weighted assets | | | 13.28 | | | | 13.04 | | | | 12.67 | | | | 12.85 | | | | 13.01 | | | | 10.49 | | | | 9.40 | | | | 9.47 | |
| Total capital to risk-weighted assets | | | 14.55 | | | | 14.31 | | | | 13.92 | | | | 14.11 | | | | 14.26 | | | | 11.88 | | | | 10.65 | | | | 10.69 | |
| Tangible common equity to tangible assets** | | | 7.61 | | | | 7.79 | | | | 7.65 | | | | 7.76 | | | | 7.96 | | | | 7.75 | | | | 7.88 | | | | 8.15 | |
REGULATORY CAPITAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 377,418 | | | $ | 374,805 | | | $ | 372,713 | | | $ | 369,482 | | | $ | 369,049 | | | $ | 293,141 | | | $ | 261,354 | | | $ | 258,272 | |
| Total capital | | | 413,438 | | | | 411,201 | | | | 409,764 | | | | 405,613 | | | | 404,695 | | | | 332,012 | | | | 296,166 | | | | 291,638 | |
| Total risk adjusted assets | | | 2,841,476 | | | | 2,873,558 | | | | 2,942,821 | | | | 2,875,290 | | | | 2,837,473 | | | | 2,793,843 | | | | 2,780,538 | | | | 2,727,853 | |
| Average total assets | | | 3,039,014 | | | | 3,024,885 | | | | 2,935,189 | | | | 2,905,653 | | | | 2,826,464 | | | | 2,787,979 | | | | 2,705,244 | | | | 2,605,963 | |
| | |
| ** | | Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | $ | 309,778 | | | $ | 309,118 | | | $ | 305,416 | | | $ | 300,406 | | | $ | 302,203 | | | $ | 226,123 | | | $ | 224,949 | | | $ | 224,155 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | |
Preferred stock | | | 67,037 | | | | 66,872 | | | | 66,710 | | | | 66,549 | | | | 66,392 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity | | $ | 235,930 | | | $ | 235,435 | | | $ | 231,895 | | | $ | 226,786 | | | $ | 228,740 | | | $ | 219,052 | | | $ | 217,878 | | | $ | 217,084 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,108,291 | | | $ | 3,029,347 | | | $ | 3,038,985 | | | $ | 2,928,133 | | | $ | 2,879,762 | | | $ | 2,832,371 | | | $ | 2,773,013 | | | $ | 2,670,580 | |
Less goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | | | | 7,071 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 3,101,480 | | | $ | 3,022,536 | | | $ | 3,032,174 | | | $ | 2,921,062 | | | $ | 2,872,691 | | | $ | 2,825,300 | | | $ | 2,765,942 | | | $ | 2,663,509 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity to tangible assets | | | 7.61 | % | | | 7.79 | % | | | 7.65 | % | | | 7.76 | % | | | 7.96 | % | | | 7.75 | % | | | 7.88 | % | | | 8.15 | % |
Balance sheet amounts and ratios are as of period end unless otherwise noted.
