Exhibit 99
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| | | For additional information:
|
| | | Rick Green |
| | | President & CEO |
| | | Laura Robertson |
| | | EVP & CFO |
For Immediate Release | | (405) 372-2230 |
Southwest Bancorp Inc. Reports First Quarter 2011 Earnings
April 19, 2011, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market — OKSB, OKSBP), (“Southwest”), today reported net income available to common shareholders of $1.4 million, or $0.07 per diluted share for the first quarter of 2011, compared to $3.3 million, or $0.23 per diluted share for the first quarter of 2010, and $3.3 million, or $0.17 per diluted share for the fourth quarter of 2010.
Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “Our first quarter of the new year continued to be profitable after a significant provision for loan losses. The Board of Directors and management are dedicated to the resolution of problem credits, the maintenance of capital and liquidity, stability in net interest income, and control of operating expenses.
Credits and Concentrations.We continue to manage our loan portfolio with our ongoing, disciplined workout process focused on addressing the challenges of the commercial real estate construction and commercial mortgage sectors. Our noncovered nonperforming assets were slightly up from year-end, primarily due to an increase in other real estate. The dollar amount of nonperforming loans was essentially unchanged from year-end. However, the composition has changed as our resolution process continues. We placed $26.5 million on nonaccrual, but returned $8.4 million to accrual status, charged-off $10.7 million, and received $2.8 million in resolutions and payments on nonperforming loans. At quarter-end our potential problem loans were $204.8 million, down $28.3 million, or 12%, from year-end, and $71.1 million, or 26%, from March 31, 2010. We believe that levels of nonperforming loans and potential problem loans are likely to fluctuate up and down as the process continues.
Our noncovered loans decreased by $86.0 million, or 4%, from year-end and $261.5 million, or 10%, from March 31, 2010. This decrease allowed us to reduce our commercial real estate mortgage and construction concentration to $1.7 billion, or 75%, of noncovered loans at March 31, 2011. Our healthcare credits at quarter-end totaled $684.7 million, or 30%, of noncovered loans, including $414.3 million of healthcare related commercial real estate mortgage and construction loans. Nonperforming healthcare assets at quarter-end were $17.4 million, or 12%, of total nonperforming assets. Approximately 80% of our nonperforming assets are in Texas, Oklahoma, and Kansas.
At March 31, 2011, the allowance for loan losses was 2.82% of noncovered portfolio loans, compared to 2.80% at year-end 2010 and 2.59% at March 31, 2010.
The economy has not yet recovered, but we are encouraged that the economies of our principal markets in Oklahoma, Texas, and Kansas continue to outperform most of the nation and we continue to make loans in each of our markets with an emphasis on healthcare lending and carefully controlled real estate collateralized credits.
Capital Base.Southwest and its banking subsidiaries have maintained capital levels that substantially exceed the minimums for regulatory “well-capitalized” status. At March 31, 2011, Southwest’s total regulatory capital was $478.7 million, for a total risk-based capital ratio of 19.77%, and Tier 1 capital was $447.8 million, for a Tier 1 risk-based capital ratio of 18.49%.
Liquidity.During the first quarter, we continued to reduce our use of brokered deposits and other non-core funding.
NASDAQ:OKSB
OKSBP
Southwest Bancorp Inc. Reports First Quarter 2011 Earnings
Earnings.Earning for the first quarter were driven by stable net interest income and controlled noninterest expense, partially offset by an increase in the provision for loan losses and a decrease in gain on sale of loans. Our net interest margin of 3.78% for the quarter was down slightly from the fourth quarter of 2010, but increased 19 basis points over the first quarter of 2010. The decrease in net interest income from the fourth quarter of 2010 was due to a combination of both rate and volume changes, primarily related to loans, while the decrease from the first quarter of 2010 was due mainly to lower loan volume.
Our efficiency ratio for the first quarter remained strong at 54.50%, helped by stable salaries and employee benefits and occupancy costs.”
Please review the following discussion and the attached financial tables for important additional information regarding our financial condition and performance.
Financial Overview
Condition: Total assets were $2.8 billion and total loans were $2.3 billion at March 31, 2011, a decrease of 1% and 4%, respectively, from December 31, 2010.
At March 31, 2011 the allowance for loan losses was $63.3 million, a decrease of 3% from December 31, 2010, and represented 2.82% of noncovered portfolio loans versus 2.80% at December 31, 2010. 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. Provisions for loan losses are recorded in the amount necessary to maintain the allowance at the level management deems appropriate.
Excluding assets subject to loss sharing agreements with the FDIC (“covered assets”), nonperforming assets, consisting of nonaccrual loans, loans past due by 90 days or more and still accruing, and other real estate, were $148.9 million and 6.52% of portfolio loans and other real estate as of March 31, 2011, up $4.1 million from December 31, 2010. A breakdown of noncovered portfolio loans and noncovered nonperforming assets at March 31, 2011 by type is shown in the following table:
| | | | | | | | | | | | | |
| | | Noncovered | | | Noncovered | | | Percentage of | |
| | | portfolio | | | nonperforming | | | total noncovered | |
| (dollars in thousands) | | loans | | | assets | | | nonperforming assets | |
| Real estate construction | | $ | 416,868 | | | $ | 56,523 | | | | 37.96 | % |
| Commercial real estate | | | 1,287,123 | | | | 30,988 | | | | 20.81 | |
| Commercial | | | 417,812 | | | | 17,622 | | | | 11.83 | |
| Residential real estate mortgages | | | 84,809 | | | | 2,672 | | | | 1.80 | |
| Other consumer loans | | | 36,493 | | | | 27 | | | | 0.02 | |
| Other real estate | | | — | | | | 41,067 | | | | 27.58 | |
| | | | | | | | | | |
| Total | | $ | 2,243,105 | | | $ | 148,899 | | | | 100.00 | % |
| | | | | | | | | | |
Excluding covered loans, nonaccrual loans were $107.3 million as of March 31, 2011, an increase of $0.7 million, or less than 1%, from December 31, 2010, and an increase of $9.4 million, or 10%, from March 31, 2010. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due and still accruing were $0.5 million as of March 31, 2011. These loans are deemed to have sufficient collateral and are in the process of collection.
Impaired loans, which include nonaccrual and restructured loans, are evaluated on an individual basis using the discounted present value of expected cash flows, the fair value of collateral, or the market value of the loan, and a specific allowance is recorded to reflect the appropriate net realizable value. Collateral dependent loans are evaluated for impairment based upon the fair value of the collateral. Charge-offs against the allowance for impaired loans are made when and to the extent amounts are deemed uncollectible.
Performing loans that have been restructured to provide a reduction or deferral of interest or principal due to a weakening in the financial position of the borrower were $2.2 million at both March 31, 2011 and December 31, 2010. Restructured nonperforming loans were $7.1 million at March 31, 2011, compared to $6.0 million at December 31, 2010.
NASDAQ:OKSB
OKSBP
Southwest Bancorp Inc. Reports First Quarter 2011 Earnings
Excluding covered loans, 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 to $204.8 million at March 31, 2011, a decrease of $28.3 million from December 31, 2010 and $71.1 million from March 31, 2010. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.
On February 11, 2011, Southwest entered into a seven year interest rate swap agreement with the objective of converting the variable interest rate on a $25.0 million subordinated debenture to a fixed interest rate based upon our expectation of rising interest rates over the swap term. The swap agreement requires Southwest to pay a fixed rate of interest at 6.15% and receive a variable rate of interest equal to the three-month LIBOR plus 285 basis points, or 3.16% at March 31, 2011.
First Quarter Results:
Summary: Net income available to common shareholders was $1.4 million in the first quarter of 2011, compared to $3.3 million in the fourth quarter of 2010 and $3.3 million in the first quarter of 2010. The decrease from the fourth quarter of 2010 was the result of a $1.8 million increase in the provision for loan losses, a $1.5 million decrease in net interest income, and a $0.8 million decrease in noninterest income, offset in part by a $1.2 million decrease in noninterest expense and a $1.1 million decrease in income taxes. The decrease from the first quarter of 2010 was the result of a $1.4 million decrease in net interest income, a $0.9 million decrease in noninterest income, a $0.5 million increase in the provision for loan losses, and a $0.4 million increase in noninterest expense, offset in part by a $1.3 million decrease in income taxes.
Net Interest Income: Net interest income totaled $25.4 million for the first quarter of 2011, compared to $27.0 million for the fourth quarter of 2010, a decrease of $1.5 million, or 6%, and $26.8 million for the first quarter of 2010, a decrease of $1.4 million, or 5%. Net interest margin was 3.78% for the first quarter of 2011, compared to 3.82% for the fourth quarter of 2010 and 3.59% for the first quarter of 2010. Included in the first quarter of 2011 net interest margin was a net recovery of $0.1 million from the quarterly adjustment of the discount accretion on loans and the loss share receivable offset by interest reversals on nonaccrual loans. Included in the fourth quarter 2010 net interest margin was a net recovery of $0.5 million from the resolution of nonperforming loans and the quarterly adjustment of the discount accretion on loans and the loss share receivable. Included in the first quarter 2010 net interest margin was a net recovery of $0.4 million from the resolution of a nonperforming loan and the quarterly adjustment of the discount accretion on loans and the loss share receivable, offset by interest reversals on nonaccrual loans. The net effects of these adjustments on net interest margin were a 1 basis point increase, a 7 basis point increase, and a 5 basis point increase for each quarter, respectively.
Provision for Loan Losses and Net Charge-Offs: The provision for loan losses totaled $9.1 million for the first quarter of 2011, compared to $7.3 million for the fourth quarter of 2010 and $8.5 million for the first quarter of 2010. Net charge-offs totaled $11.0 million, or 1.90% (annualized) of average portfolio loans for the first quarter of 2011, compared to $14.5 million, or 2.35% (annualized) of average portfolio loans for the fourth quarter of 2010 and $5.8 million, or 0.90% (annualized) of average portfolio loans for the first quarter of 2010.
Noninterest Income: Noninterest income totaled $3.2 million for the first quarter of 2011, compared to $4.1 million for the fourth quarter of 2010 and $4.2 million for the first quarter of 2010. The decrease in noninterest income from the fourth quarter of 2010 was primarily the result of a $0.5 million decrease in gain on sale of loans, mainly from declined mortgage loan sales, and a $0.3 million decrease in service charges and fees. The decrease from the first quarter of 2010 was primarily the result of a $0.8 million decrease in gain on sale of loans, mainly from declined student loan sales, and a $0.2 million decrease in service charges and fees.
Noninterest Expense: Noninterest expense totaled $15.6 million for the first quarter of 2011, compared to $16.8 million for the fourth quarter of 2010 and $15.3 million for the first quarter of 2010. The decrease from fourth quarter 2010 consisted of a $0.8 million decrease in other real estate expense and a $0.6 million decrease in other general and administrative expense, primarily from decreased legal fees related to other real estate and other loan costs. The increase from first quarter 2010 consisted of a $0.3 million increase in other real estate expense and a $0.4 million increase in the provision for unfunded loan commitments, offset in part by a $0.3 million decrease in FDIC and other insurance expense.
NASDAQ:OKSB
OKSBP
Southwest Bancorp Inc. Reports First Quarter 2011 Earnings
Southwest Bancorp and Subsidiaries
Southwest is the bank holding company for Stillwater National Bank and Trust Company (“Stillwater National”) and Bank of Kansas. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, throughSNB DirectBanker®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At March 31, 2011 we had total assets of $2.8 billion, deposits of $2.2 billion, and shareholders’ equity of $379.7 million.
Our area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, and commercial and commercial real estate borrowers. We established a strategic focus on healthcare lending in 1974. We provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of March 31, 2011, approximately $684.7 million, or 30%, of our noncovered loans were loans to individuals and businesses in the healthcare industry.
We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or “spec” residential property credits. Additionally, subprime lending has never been a part of our business strategy, and our exposure to subprime loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of March 31, 2011 approximately $1.7 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $414.3 million of loans to individuals and businesses in the healthcare industry. Our commercial real estate mortgage and construction and commercial loans are concentrated in states that have experienced less adverse effects from the recession than many others.
We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At March 31, 2011 our Texas segment accounted for $954.6 million, or 42% of total portfolio loans, followed by $838.5 million, or 36%, from our Oklahoma segment, $272.7 million, or 12%, from our Kansas segment, and $226.5 million, or 10%, from our other states segment.
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.
Forward-Looking Statements
This earnings 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 timing 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 our 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 March 31, 2011 through the date its financial statements are filed with the Securities and Exchange Commission. The March 31, 2011 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
NASDAQ:OKSB
OKSBP
Southwest Bancorp Inc. Reports First Quarter 2011 Earnings
Financial Tables
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| 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 Quarterly Summary Financial Data | | Table 5 |
| Unaudited Quarterly Supplemental Analytical Data | | Table 6 |
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| SOUTHWEST BANCORP, INC. | | Table 1 |
| UNAUDITED FINANCIAL HIGHLIGHTS | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | First Quarter | | Fourth Quarter |
| | | | | | | | | | | % | | | | | | % |
| QUARTERLY HIGHLIGHTS | | 2011 | | 2010 | | Change | | 2010 | | Change |
| | | |
Operations | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 25,421 | | | $ | 26,801 | | | | (5 | )% | | $ | 26,970 | | | | (6 | )% |
| Provision for loan losses | | | 9,050 | | | | 8,531 | | | | 6 | | | | 7,265 | | | | 25 | |
| Noninterest income | | | 3,249 | | | | 4,178 | | | | (22 | ) | | | 4,089 | | | | (21 | ) |
| Noninterest expense | | | 15,625 | | | | 15,258 | | | | 2 | | | | 16,811 | | | | (7 | ) |
| Income before taxes | | | 3,995 | | | | 7,190 | | | | (44 | ) | | | 6,983 | | | | (43 | ) |
| Taxes on income | | | 1,534 | | | | 2,818 | | | | (46 | ) | | | 2,675 | | | | (43 | ) |
| Net income | | | 2,461 | | | | 4,372 | | | | (44 | ) | | | 4,308 | | | | (43 | ) |
| Net income available to common shareholders | | | 1,408 | | | | 3,329 | | | | (58 | ) | | | 3,257 | | | | (57 | ) |
| Diluted earnings per share | | | 0.07 | | | | 0.23 | | | | (70 | ) | | | 0.17 | | | | (59 | ) |
Balance Sheet | | | �� | | | | | | | | | | | | | | | | | |
| Total assets | | | 2,778,833 | | | | 3,074,923 | | | | (10 | ) | | | 2,820,541 | | | | (1 | ) |
| Loans held for sale | | | 37,348 | | | | 25,586 | | | | 46 | | | | 35,194 | | | | 6 | |
| Noncovered portfolio loans | | | 2,243,105 | | | | 2,516,397 | | | | (11 | ) | | | 2,331,293 | | | | (4 | ) |
| Covered portfolio loans | | | 49,117 | | | | 76,909 | | | | (36 | ) | | | 53,628 | | | | (8 | ) |
| Total deposits | | | 2,218,571 | | | | 2,554,165 | | | | (13 | ) | | | 2,252,728 | | | | (2 | ) |
| Total shareholders’ equity | | | 379,668 | | | | 315,341 | | | | 20 | | | | 377,812 | | | | — | |
| Book value per common share | | | 16.04 | | | | 16.79 | | | | (4 | ) | | | 15.97 | | | | — | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.78 | % | | | 3.59 | % | | | | | | | 3.82 | % | | | | |
| Efficiency ratio | | | 54.50 | | | | 49.25 | | | | | | | | 54.13 | | | | | |
| Total capital to risk-weighted assets | | | 19.77 | | | | 15.28 | | | | | | | | 19.06 | | | | | |
| Nonperforming loans to portfolio loans — noncovered | | | 4.81 | | | | 3.89 | | | | | | | | 4.59 | | | | | |
| Shareholders’ equity to total assets | | | 13.66 | | | | 10.26 | | | | | | | | 13.40 | | | | | |
| Tangible common equity to tangible assets* | | | 11.00 | | | | 7.87 | | | | | | | | 10.78 | | | | | |
| Return on average assets (annualized) | | | 0.35 | | | | 0.57 | | | | | | | | 0.59 | | | | | |
| Return on average common equity (annualized) | | | 1.81 | | | | 5.42 | | | | | | | | 4.11 | | | | | |
| Return on average tangible common equity (annualized)** | | | 1.85 | | | | 5.58 | | | | | | | | 4.21 | | | | | |
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| Balance sheet amounts and ratios are as of period end unless otherwise noted. |
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| * | | This is a Non-GAAP financial measure. Please see Table 7 for a reconciliation to the most directly comparable GAAP based measure. |
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| ** | | This is a Non-GAAP financial measure. |
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| Please see accompanying tables for additional financial information. |
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| SOUTHWEST BANCORP, INC. | | Table 2 |
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | |
| | | March 31, | | December 31, | | March 31, |
| | | 2011 | | 2010 | | 2010 |
| | | |
Assets | | | | | | | | | | | | |
| Cash and due from banks | | $ | 28,034 | | | $ | 26,478 | | | $ | 22,196 | |
| Interest-bearing deposits | | | 89,529 | | | | 41,018 | | | | 124,129 | |
| | | |
| Cash and cash equivalents | | | 117,563 | | | | 67,496 | | | | 146,325 | |
| Securities held to maturity (fair values of $12,903, $14,029, $6,750, respectively) | | | 13,042 | | | | 14,304 | | | | 6,670 | |
| Securities available for sale (amortized cost of $243,556, $246,649, $230,522, respectively) | | | 245,394 | | | | 248,221 | | | | 235,023 | |
| Loans held for sale | | | 37,348 | | | | 35,194 | | | | 25,586 | |
| Noncovered loans receivable | | | 2,243,105 | | | | 2,331,293 | | | | 2,516,397 | |
| Less: Allowance for loan losses | | | (63,310 | ) | | | (65,229 | ) | | | (65,168 | ) |
| | | |
| Net noncovered loans receivable | | | 2,179,795 | | | | 2,266,064 | | | | 2,451,229 | |
| Covered loans receivable (includes loss share: $12,617, $14,370, and $21,060, respectively) | | | 49,117 | | | | 53,628 | | | | 76,909 | |
| | | |
| Net loans receivable | | | 2,228,912 | | | | 2,319,692 | | | | 2,528,138 | |
| Accrued interest receivable | | | 8,789 | | | | 8,590 | | | | 10,271 | |
| Premises and equipment, net | | | 23,555 | | | | 23,772 | | | | 25,996 | |
| Noncovered other real estate | | | 41,067 | | | | 37,722 | | | | 18,809 | |
| Covered other real estate | | | 4,016 | | | | 4,187 | | | | 4,489 | |
| Goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | |
| Other intangible assets, net | | | 5,141 | | | | 5,371 | | | | 5,575 | |
| Other assets | | | 47,195 | | | | 49,181 | | | | 61,230 | |
| | | |
| Total assets | | $ | 2,778,833 | | | $ | 2,820,541 | | | $ | 3,074,923 | |
| | | |
Liabilities | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Noninterest-bearing demand | | $ | 369,013 | | | $ | 377,182 | | | $ | 317,896 | |
| Interest-bearing demand | | | 112,731 | | | | 92,584 | | | | 119,757 | |
| Money market accounts | | | 486,770 | | | | 495,253 | | | | 506,659 | |
| Savings accounts | | | 28,440 | | | | 26,665 | | | | 25,871 | |
| Time deposits of $100,000 or more | | | 669,817 | | | | 694,565 | | | | 944,871 | |
| Other time deposits | | | 551,800 | | | | 566,479 | | | | 639,111 | |
| | | |
| Total deposits | | | 2,218,571 | | | | 2,252,728 | | | | 2,554,165 | |
| Accrued interest payable | | | 1,805 | | | | 1,577 | | | | 2,993 | |
| Income tax payable | | | 3,510 | | | | 2,878 | | | | 6,761 | |
| Other liabilities | | | 7,471 | | | | 8,981 | | | | 10,080 | |
| Other borrowings | | | 85,332 | | | | 94,602 | | | | 103,620 | |
| Subordinated debentures | | | 82,476 | | | | 81,963 | | | | 81,963 | |
| | | |
| Total liabilities | | | 2,399,165 | | | | 2,442,729 | | | | 2,759,582 | |
| | | | | | | | | | | | | |
Shareholders’ equity | | | | | | | | | | | | |
| Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding | | | 67,902 | | | | 67,724 | | | | 67,205 | |
| Common stock — $1 par value; 40,000,000 shares authorized; 19,438,290, 19,421,900, 14,779,711 shares issued and outstanding, respectively | | | 19,438 | | | | 19,422 | | | | 14,780 | |
| Additional paid-in capital | | | 98,994 | | | | 98,894 | | | | 49,229 | |
| Retained earnings | | | 192,200 | | | | 190,793 | | | | 181,344 | |
| Accumulated other comprehensive income | | | 1,134 | | | | 979 | | | | 2,783 | |
| | | |
| Total shareholders’ equity | | | 379,668 | | | | 377,812 | | | | 315,341 | |
| | | |
| Total liabilities and shareholders’ equity | | $ | 2,778,833 | | | $ | 2,820,541 | | | $ | 3,074,923 | |
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| SOUTHWEST BANCORP, INC. | | Table 3 |
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | |
| | | For the three months |
| | | ended March 31, |
| | | 2011 | | 2010 |
| | | |
Interest income | | | | | | | | |
| Loans | | $ | 30,539 | | | $ | 34,372 | |
| Investment securities | | | 1,746 | | | | 2,170 | |
| Other interest-earning assets | | | 140 | | | | 217 | |
| | | |
| Total interest income | | | 32,425 | | | | 36,759 | |
| | | | | | | | | |
Interest expense | | | | | | | | |
| Interest-bearing deposits | | | 5,133 | | | | 8,174 | |
| Other borrowings | | | 497 | | | | 517 | |
| Subordinated debentures | | | 1,374 | | | | 1,267 | |
| | | |
| Total interest expense | | | 7,004 | | | | 9,958 | |
| | | |
| | | | | | | | | |
| Net interest income | | | 25,421 | | | | 26,801 | |
| | | | | | | | | |
| Provision for loan losses | | | 9,050 | | | | 8,531 | |
| | | |
| | | | | | | | | |
| Net interest income after provision for loan losses | | | 16,371 | | | | 18,270 | |
| | | | | | | | | |
Noninterest income | | | | | | | | |
| Service charges and fees | | | 2,878 | | | | 3,096 | |
| Gain on sales of loans | | | 194 | | | | 985 | |
| Gain on investment securities | | | — | | | | 7 | |
| Other noninterest income | | | 177 | | | | 90 | |
| | | |
| Total noninterest income | | | 3,249 | | | | 4,178 | |
| | | | | | | | | |
Noninterest expense | | | | | | | | |
| Salaries and employee benefits | | | 7,515 | | | | 7,580 | |
| Occupancy | | | 2,804 | | | | 2,783 | |
| FDIC and other insurance | | | 1,243 | | | | 1,587 | |
| Other real estate, net | | | 436 | | | | 106 | |
| General and administrative | | | 3,627 | | | | 3,202 | |
| | | |
| Total noninterest expense | | | 15,625 | | | | 15,258 | |
| | | |
| Income before taxes | | | 3,995 | | | | 7,190 | |
| Taxes on income | | | 1,534 | | | | 2,818 | |
| | | |
| Net income | | $ | 2,461 | | | $ | 4,372 | |
| | | |
| Net income available to common shareholders | | $ | 1,408 | | | $ | 3,329 | |
| | | |
| | | | | | | | | |
| Basic earnings per common share | | $ | 0.07 | | | $ | 0.23 | |
| Diluted earnings per common share | | | 0.07 | | | | 0.23 | |
| Common dividends declared per share | | | — | | | | — | |
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 4 |
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES — QUARTERLY | | |
| (Dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended March 31, |
| | | 2011 | | | 2010 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Yield/Rate | | | Balance | | | Interest | | | Yield/Rate | |
| | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncovered loans | | $ | 2,326,882 | | | $ | 29,655 | | | | 5.17 | % | | $ | 2,587,603 | | | $ | 32,981 | | | | 5.17 | % |
| Covered loans | | | 51,494 | | | | 884 | | | | 6.96 | | | | 82,043 | | | | 1,391 | | | | 6.88 | |
| Investment securities | | | 256,384 | | | | 1,746 | | | | 2.76 | | | | 241,276 | | | | 2,170 | | | | 3.65 | |
| Other interest-earning assets | | | 92,692 | | | | 140 | | | | 0.61 | | | | 115,374 | | | | 217 | | | | 0.76 | |
| | | | | | | | | | | | | |
| Total interest-earning assets | | | 2,727,452 | | | | 32,425 | | | | 4.82 | | | | 3,026,296 | | | | 36,759 | | | | 4.93 | |
| Other assets | | | 91,807 | | | | | | | | | | | | 79,238 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,819,259 | | | | | | | | | | | $ | 3,105,534 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 112,441 | | | $ | 124 | | | | 0.45 | % | | $ | 107,510 | | | $ | 132 | | | | 0.50 | % |
| Money market accounts | | | 491,306 | | | | 677 | | | | 0.56 | | | | 504,486 | | | | 1,013 | | | | 0.81 | |
| Savings accounts | | | 27,741 | | | | 16 | | | | 0.23 | | | | 25,628 | | | | 16 | | | | 0.25 | |
| Time deposits | | | 1,248,152 | | | | 4,316 | | | | 1.40 | | | | 1,649,888 | | | | 7,013 | | | | 1.72 | |
| | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 1,879,640 | | | | 5,133 | | | | 1.11 | | | | 2,287,512 | | | | 8,174 | | | | 1.45 | |
| Other borrowings | | | 90,198 | | | | 497 | | | | 2.23 | | | | 97,297 | | | | 517 | | | | 2.15 | |
| Subordinated debentures | | | 81,969 | | | | 1,374 | | | | 6.70 | | | | 81,963 | | | | 1,267 | | | | 6.18 | |
| | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 2,051,807 | | | | 7,004 | | | | 1.38 | | | | 2,466,772 | | | | 9,958 | | | | 1.64 | |
| | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 365,161 | | | | | | | | | | | | 303,684 | | | | | | | | | |
| Other liabilities | | | 19,789 | | | | | | | | | | | | 19,032 | | | | | | | | | |
| Shareholders’ equity | | | 382,502 | | | | | | | | | | | | 316,046 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,819,259 | | | | | | | | | | | $ | 3,105,534 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 25,421 | | | | 3.44 | % | | | | | | $ | 26,801 | | | | 3.29 | % |
| | | | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | | | 3.78 | % | | | | | | | | | | | 3.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 132.93 | % | | | | | | | | | | | 122.68 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 5 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2011 | | 2010 |
| | | Mar. 31 | | Dec. 31 | | Sep. 30 | | Jun. 30 | | Mar. 31 |
| | | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 30,539 | | | $ | 32,831 | | | $ | 32,824 | | | $ | 33,891 | | | $ | 34,372 | |
| Investment securities | | | 1,746 | | | | 1,724 | | | | 2,079 | | | | 2,175 | | | | 2,170 | |
| Other interest-earning assets | | | 140 | | | | 131 | | | | 180 | | | | 213 | | | | 217 | |
| | | |
| Total interest income | | | 32,425 | | | | 34,686 | | | | 35,083 | | | | 36,279 | | | | 36,759 | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 124 | | | | 85 | | | | 111 | | | | 140 | | | | 132 | |
| Money market accounts | | | 677 | | | | 885 | | | | 976 | | | | 1,037 | | | | 1,013 | |
| Savings accounts | | | 16 | | | | 17 | | | | 15 | | | | 16 | | | | 16 | |
| Time deposits of $100,000 or more | | | 2,349 | | | | 2,703 | | | | 3,128 | | | | 3,517 | | | | 4,024 | |
| Other time deposits | | | 1,967 | | | | 2,230 | | | | 2,572 | | | | 2,661 | | | | 2,989 | |
| | | |
| Total interest-bearing deposits | | | 5,133 | | | | 5,920 | | | | 6,802 | | | | 7,371 | | | | 8,174 | |
| Other borrowings | | | 497 | | | | 514 | | | | 524 | | | | 524 | | | | 517 | |
| Subordinated debentures | | | 1,374 | | | | 1,282 | | | | 1,305 | | | | 1,276 | | | | 1,267 | |
| | | |
| Total interest expense | | | 7,004 | | | | 7,716 | | | | 8,631 | | | | 9,171 | | | | 9,958 | |
| | | |
| Net interest income | | | 25,421 | | | | 26,970 | | | | 26,452 | | | | 27,108 | | | | 26,801 | |
| Provision for loan losses | | | 9,050 | | | | 7,265 | | | | 11,988 | | | | 7,776 | | | | 8,531 | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,878 | | | | 3,144 | | | | 2,994 | | | | 3,170 | | | | 3,096 | |
| Gain on sales of loans | | | 194 | | | | 682 | | | | 653 | | | | 416 | | | | 985 | |
| Gain on investment securities | | | — | | | | 15 | | | | 2,605 | | | | 34 | | | | 7 | |
| Other noninterest income | | | 177 | | | | 248 | | | | 83 | | | | 342 | | | | 90 | |
| | | |
| Total noninterest income | | | 3,249 | | | | 4,089 | | | | 6,335 | | | | 3,962 | | | | 4,178 | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 7,515 | | | | 7,516 | | | | 7,183 | | | | 7,637 | | | | 7,580 | |
| Occupancy | | | 2,804 | | | | 2,717 | | | | 2,835 | | | | 2,836 | | | | 2,783 | |
| FDIC and other insurance | | | 1,243 | | | | 1,333 | | | | 1,347 | | | | 1,521 | | | | 1,587 | |
| Other real estate, net | | | 436 | | | | 1,255 | | | | 228 | | | | 629 | | | | 106 | |
| Provision for unfunded loan commitments | | | (55 | ) | | | (332 | ) | | | (294 | ) | | | (512 | ) | | | (465 | ) |
| Other general and administrative | | | 3,682 | | | | 4,322 | | | | 4,119 | | | | 4,035 | | | | 3,667 | |
| | | |
| Total noninterest expense | | | 15,625 | | | | 16,811 | | | | 15,418 | | | | 16,146 | | | | 15,258 | |
| | | |
| Income before taxes | | | 3,995 | | | | 6,983 | | | | 5,381 | | | | 7,148 | | | | 7,190 | |
| Taxes on income | | | 1,534 | | | | 2,675 | | | | 1,508 | | | | 2,737 | | | | 2,818 | |
| | | |
| Net income | | $ | 2,461 | | | $ | 4,308 | | | $ | 3,873 | | | $ | 4,411 | | | $ | 4,372 | |
| | | |
| Net income available to common shareholders | | $ | 1,408 | | | $ | 3,257 | | | $ | 2,825 | | | $ | 3,366 | | | $ | 3,329 | |
| | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.07 | | | $ | 0.17 | | | $ | 0.15 | | | $ | 0.19 | | | $ | 0.23 | |
| Diluted earnings per common share | | | 0.07 | | | | 0.17 | | | | 0.15 | | | | 0.19 | | | | 0.23 | |
| Book value per common share | | | 16.04 | | | | 15.97 | | | | 15.93 | | | | 15.88 | | | | 16.79 | |
| Tangible book value per share* | | | 15.69 | | | | 15.62 | | | | 15.58 | | | | 15.53 | | | | 16.33 | |
COMMON STOCK | | | | | | | | | | | | | | | | | | | | |
| Shares issued and outstanding | | | 19,438,290 | | | | 19,421,900 | | | | 19,395,675 | | | | 19,388,797 | | | | 14,779,711 | |
OTHER FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 258,436 | | | $ | 262,525 | | | $ | 240,844 | | | $ | 247,108 | | | $ | 241,693 | |
| Loans held for sale | | | 37,348 | | | | 35,194 | | | | 34,868 | | | | 25,615 | | | | 25,586 | |
| Noncovered portfolio loans | | | 2,243,105 | | | | 2,331,293 | | | | 2,412,796 | | | | 2,475,348 | | | | 2,516,397 | |
| Total noncovered loans | | | 2,280,453 | | | | 2,366,487 | | | | 2,447,664 | | | | 2,500,963 | | | | 2,541,983 | |
| Covered portfolio loans | | | 49,117 | | | | 53,628 | | | | 60,558 | | | | 68,006 | | | | 76,909 | |
| Total assets | | | 2,778,833 | | | | 2,820,541 | | | | 2,905,275 | | | | 3,010,835 | | | | 3,074,923 | |
| Total deposits | | | 2,218,571 | | | | 2,252,728 | | | | 2,345,648 | | | | 2,444,939 | | | | 2,554,165 | |
| Other borrowings | | | 85,332 | | | | 94,602 | | | | 82,506 | | | | 93,036 | | | | 103,620 | |
| Subordinated debentures | | | 82,476 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | |
| Total shareholders’ equity | | | 379,668 | | | | 377,812 | | | | 376,576 | | | | 375,319 | | | | 315,341 | |
| Mortgage servicing portfolio | | | 281,271 | | | | 278,146 | | | | 261,266 | | | | 249,632 | | | | 241,224 | |
INTANGIBLE ASSET DATA | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | |
| Core deposit intangible | | | 3,420 | | | | 3,557 | | | | 3,693 | | | | 3,830 | | | | 3,967 | |
| Mortgage servicing rights | | | 1,718 | | | | 1,810 | | | | 1,661 | | | | 1,589 | | | | 1,603 | |
| Nonmortgage servicing rights | | | 3 | | | | 4 | | | | 4 | | | | 5 | | | | 5 | |
| | | |
| Total intangible assets | | $ | 11,952 | | | $ | 12,182 | | | $ | 12,169 | | | $ | 12,235 | | | $ | 12,386 | |
| | | |
| Intangible amortization expense | | $ | 361 | | | $ | 402 | | | $ | 392 | | | $ | 350 | | | $ | 359 | |
| | | |
Continued
| | |
| * | | This is a Non-GAAP based financial measure. |
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 5 |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | Continued |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2011 | | 2010 |
| | | Mar. 31 | | Dec. 31 | | Sep. 30 | | Jun. 30 | | Mar. 31 |
| | | |
LOAN COMPOSITION | | | | | | | | | | | | | | | | | | | | |
| Noncovered | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 1,302,254 | | | $ | 1,310,464 | | | $ | 1,271,278 | | | $ | 1,251,709 | | | $ | 1,230,009 | |
| One-to-four family residential | | | 87,324 | | | | 89,800 | | | | 109,980 | | | | 106,814 | | | | 111,185 | |
| Real estate construction | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 403,954 | | | | 441,265 | | | | 527,773 | | | | 589,590 | | | | 630,472 | |
| One-to-four family residential | | | 26,758 | | | | 27,429 | | | | 30,527 | | | | 35,129 | | | | 34,996 | |
| Commercial | | | 417,970 | | | | 452,626 | | | | 463,132 | | | | 471,004 | | | | 487,074 | |
| Installment and consumer: | | | | | | | | | | | | | | | | | | | | |
| Guaranteed student loans | | | 5,700 | | | | 5,843 | | | | 5,960 | | | | 7,389 | | | | 10,199 | |
| Other | | | 36,493 | | | | 39,060 | | | | 39,014 | | | | 39,328 | | | | 38,048 | |
| | | |
| Total noncovered loans, including held for sale | | | 2,280,453 | | | | 2,366,487 | | | | 2,447,664 | | | | 2,500,963 | | | | 2,541,983 | |
| Less allowance for loan losses | | | (63,310 | ) | | | (65,229 | ) | | | (72,418 | ) | | | (67,055 | ) | | | (65,168 | ) |
| | | |
| Total noncovered loans, net | | $ | 2,217,143 | | | $ | 2,301,258 | | | $ | 2,375,246 | | | $ | 2,433,908 | | | $ | 2,476,815 | |
| | | |
| Covered | | | | | | | | | | | | | | | | | | | | |
| Real estate mortgage: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 28,929 | | | $ | 30,997 | | | $ | 33,428 | | | $ | 36,107 | | | $ | 37,487 | |
| One-to-four family residential | | | 8,192 | | | | 9,122 | | | | 10,071 | | | | 10,277 | | | | 10,843 | |
| Real estate construction | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 6,144 | | | | 6,840 | | | | 7,464 | | | | 8,190 | | | | 11,173 | |
| One-to-four family residential | | | 281 | | | | 439 | | | | 1,823 | | | | 3,853 | | | | 5,273 | |
| Commercial | | | 5,021 | | | | 5,554 | | | | 6,816 | | | | 8,487 | | | | 10,807 | |
| Installment and consumer: | | | 550 | | | | 676 | | | | 956 | | | | 1,092 | | | | 1,326 | |
| | | |
| Total covered loans | | $ | 49,117 | | | $ | 53,628 | | | $ | 60,558 | | | $ | 68,006 | | | $ | 76,909 | |
| | | |
DEPOSIT COMPOSITION | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand | | $ | 369,013 | | | $ | 377,182 | | | $ | 329,655 | | | $ | 326,721 | | | $ | 317,896 | |
| Interest-bearing demand | | | 112,731 | | | | 92,584 | | | | 86,153 | | | | 102,218 | | | | 119,757 | |
| Money market accounts | | | 486,770 | | | | 495,253 | | | | 518,422 | | | | 510,549 | | | | 506,659 | |
| Savings accounts | | | 28,440 | | | | 26,665 | | | | 25,556 | | | | 25,321 | | | | 25,871 | |
| Time deposits of $100,000 or more | | | 669,817 | | | | 694,565 | | | | 795,303 | | | | 861,110 | | | | 944,871 | |
| Other time deposits | | | 551,800 | | | | 566,479 | | | | 590,559 | | | | 619,020 | | | | 639,111 | |
| | | |
| Total deposits** | | $ | 2,218,571 | | | $ | 2,252,728 | | | $ | 2,345,648 | | | $ | 2,444,939 | | | $ | 2,554,165 | |
| | | |
LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 838,464 | | | $ | 871,393 | | | $ | 890,598 | | | $ | 914,004 | | | $ | 926,870 | |
| Texas banking | | | 954,584 | | | | 982,845 | | | | 1,024,863 | | | | 1,041,228 | | | | 1,063,511 | |
| Kansas banking | | | 272,685 | | | | 289,642 | | | | 309,240 | | | | 329,157 | | | | 342,596 | |
| Other states banking | | | 226,489 | | | | 241,041 | | | | 248,653 | | | | 258,965 | | | | 260,329 | |
| | | |
| Subtotal | | | 2,292,222 | | | | 2,384,921 | | | | 2,473,354 | | | | 2,543,354 | | | | 2,593,306 | |
| Secondary market | | | 37,348 | | | | 35,194 | | | | 34,868 | | | | 25,615 | | | | 25,586 | |
| | | |
| Total loans | | $ | 2,329,570 | | | $ | 2,420,115 | | | $ | 2,508,222 | | | $ | 2,568,969 | | | $ | 2,618,892 | |
| | | |
NET INCOME BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
| Oklahoma banking | | $ | 3,435 | | | $ | 4,205 | | | $ | 3,399 | | | $ | 4,387 | | | $ | 2,857 | |
| Texas banking | | | 1,079 | | | | 4,001 | | | | (1,801 | ) | | | 757 | | | | 1,685 | |
| Kansas banking | | | 131 | | | | 293 | | | | (306 | ) | | | 940 | | | | (322 | ) |
| Other states banking | | | (924 | ) | | | (3,674 | ) | | | 494 | | | | (477 | ) | | | 1,750 | |
| | | |
| Subtotal | | | 3,721 | | | | 4,825 | | | | 1,786 | | | | 5,607 | | | | 5,970 | |
| Secondary market | | | (13 | ) | | | 444 | | | | 173 | | | | 83 | | | | 310 | |
| Other operations | | | (1,247 | ) | | | (961 | ) | | | 1,914 | | | | (1,279 | ) | | | (1,908 | ) |
| | | |
| Net income | | $ | 2,461 | | | $ | 4,308 | | | $ | 3,873 | | | $ | 4,411 | | | $ | 4,372 | |
| | | |
OFFICES AND EMPLOYEES | | | | | | | | | | | | | | | | | | | | |
| FTE Employees | | | 424 | | | | 432 | | | | 440 | | | | 447 | | | | 455 | |
| Branches | | | 23 | | | | 23 | | | | 23 | | | | 23 | | | | 24 | |
| Loan production offices | | | 2 | | | | 2 | | | | 2 | | | | 2 | | | | 2 | |
| Assets per employee | | $ | 6,554 | | | $ | 6,529 | | | $ | 6,603 | | | $ | 6,736 | | | $ | 6,758 | |
| | |
| ** | | Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) |
| | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 2,218,571 | | | $ | 2,252,728 | | | $ | 2,345,648 | | | $ | 2,444,939 | | | $ | 2,554,165 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Brokered time deposits | | | 122,124 | | | | 145,240 | | | | 226,238 | | | | 279,027 | | | | 359,571 | |
Other brokered deposits | | | 112,033 | | | | 117,532 | | | | 129,096 | | | | 126,643 | | | | 124,969 | |
| | | |
Non-brokered deposits | | $ | 1,984,414 | | | $ | 1,989,956 | | | $ | 1,990,314 | | | $ | 2,039,269 | | | $ | 2,069,625 | |
| | | |
Plus: | | | | | | | | | | | | | | | | | | | | |
Sweep repurchase agreements | | | 27,214 | | | | 26,492 | | | | 22,211 | | | | 22,700 | | | | 33,192 | |
| | | |
Core funding | | $ | 2,011,628 | | | $ | 2,016,448 | | | $ | 2,012,525 | | | $ | 2,061,969 | | | $ | 2,102,817 | |
| | | |
Balance sheet amounts are as of period end unless otherwise noted.
| | |
| | | |
| SOUTHWEST BANCORP, INC. | | Table 6 |
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2011 | | 2010 |
| | | Mar. 31 | | Dec. 31 | | Sep. 30 | | Jun. 30 | | Mar. 31 |
| | | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.35 | % | | | 0.59 | % | | | 0.52 | % | | | 0.58 | % | | | 0.57 | % |
| Return on average common equity (annualized) | | | 1.81 | | | | 4.11 | | | | 3.57 | | | | 4.64 | | | | 5.42 | |
| Return on average tangible common equity (annualized)* | | | 1.85 | | | | 4.21 | | | | 3.65 | | | | 4.75 | | | | 5.58 | |
| Net interest margin (annualized) | | | 3.78 | | | | 3.82 | | | | 3.63 | | | | 3.65 | | | | 3.59 | |
| Total dividends declared to net income | | | 35.56 | | | | 20.31 | | | | 22.59 | | | | 19.84 | | | | 20.02 | |
| Effective tax rate | | | 38.40 | | | | 38.31 | | | | 28.02 | | | | 38.29 | | | | 39.19 | |
| Efficiency ratio | | | 54.50 | | | | 54.13 | | | | 47.02 | | | | 51.97 | | | | 49.25 | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | |
| Noncovered | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 107,303 | | | $ | 106,566 | | | $ | 135,209 | | | $ | 111,871 | | | $ | 97,858 | |
| 90 days past due and accruing | | | 529 | | | | 517 | | | | 452 | | | | 333 | | | | 4 | |
| | | |
| Total nonperforming loans | | | 107,832 | | | | 107,083 | | | | 135,661 | | | | 112,204 | | | | 97,862 | |
| Other real estate | | | 41,067 | | | | 37,722 | | | | 35,723 | | | | 27,634 | | | | 18,809 | |
| | | |
| Total nonperforming assets | | $ | 148,899 | | | $ | 144,805 | | | $ | 171,384 | | | $ | 139,838 | | | $ | 116,671 | |
| | | |
| Performing restructured | | $ | 2,166 | | | $ | 2,177 | | | $ | 5,334 | | | $ | 5,525 | | | $ | 5,650 | |
| | | |
| Potential problem loans | | $ | 204,834 | | | $ | 233,140 | | | $ | 236,844 | | | $ | 242,217 | | | $ | 275,912 | |
| | | |
| Covered | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 9,809 | | | $ | 10,806 | | | $ | 7,906 | | | $ | 14,504 | | | $ | 16,192 | |
| 90 days past due and accruing | | | — | | | | — | | | | 1,871 | | | | 130 | | | | 356 | |
| | | |
| Total nonperforming loans | | | 9,809 | | | | 10,806 | | | | 9,777 | | | | 14,634 | | | | 16,548 | |
| Other real estate | | | 4,016 | | | | 4,187 | | | | 4,448 | | | | 4,352 | | | | 4,489 | |
| | | |
| Total nonperforming assets | | $ | 13,825 | | | $ | 14,993 | | | $ | 14,225 | | | $ | 18,986 | | | $ | 21,037 | |
| | | |
| Potential problem loans | | $ | 3,444 | | | $ | 3,495 | | | $ | 6,413 | | | $ | 6,184 | | | $ | 6,620 | |
| | | |
ALLOWANCE ACTIVITY | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 65,229 | | | $ | 72,418 | | | $ | 67,055 | | | $ | 65,168 | | | $ | 62,413 | |
| Charge offs | | | 11,367 | | | | 14,720 | | | | 7,006 | | | | 6,168 | | | | 6,545 | |
| Recoveries | | | 398 | | | | 266 | | | | 381 | | | | 279 | | | | 769 | |
| | | |
| Net charge offs | | | 10,969 | | | | 14,454 | | | | 6,625 | | | | 5,889 | | | | 5,776 | |
| Provision for loan losses | | | 9,050 | | | | 7,265 | | | | 11,988 | | | | 7,776 | | | | 8,531 | |
| | | |
| Balance, end of period | | $ | 63,310 | | | $ | 65,229 | | | $ | 72,418 | | | $ | 67,055 | | | $ | 65,168 | |
| | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | |
| Net loan charge-offs to average portfolio loans (annualized) | | | 1.90 | % | | | 2.35 | % | | | 1.05 | % | | | 0.92 | % | | | 0.90 | % |
| Noncovered | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to portfolio loans and other real estate | | | 6.52 | % | | | 6.11 | % | | | 7.00 | % | | | 5.59 | % | | | 4.60 | % |
| Nonperforming loans to portfolio loans | | | 4.81 | | | | 4.59 | | | | 5.62 | | | | 4.53 | | | | 3.89 | |
| Allowance for loan losses to portfolio loans | | | 2.82 | | | | 2.80 | | | | 3.00 | | | | 2.71 | | | | 2.59 | |
| Allowance for loan losses to nonperforming loans | | | 58.71 | | | | 60.91 | | | | 53.38 | | | | 59.76 | | | | 66.59 | |
| Covered | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to portfolio loans and other real estate | | | 26.02 | % | | | 25.93 | % | | | 21.88 | % | | | 26.24 | % | | | 25.84 | % |
| Nonperforming loans to portfolio loans | | | 19.97 | | | | 20.15 | | | | 16.14 | | | | 21.52 | | | | 21.52 | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | |
| Average total shareholders’ equity to average assets | | | 13.57 | % | | | 13.24 | % | | | 12.85 | % | | | 11.78 | % | | | 10.18 | % |
| Leverage ratio | | | 15.95 | | | | 15.55 | | | | 14.96 | | | | 14.48 | | | | 12.32 | |
| Tier 1 capital to risk-weighted assets | | | 18.49 | | | | 17.78 | | | | 17.17 | | | | 16.50 | | | | 14.00 | |
| Total capital to risk-weighted assets | | | 19.77 | | | | 19.06 | | | | 18.45 | | | | 17.78 | | | | 15.28 | |
| Tangible common equity to tangible assets*** | | | 11.00 | | | | 10.78 | | | | 10.43 | | | | 10.02 | | | | 7.87 | |
REGULATORY CAPITAL DATA | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 447,803 | | | $ | 445,966 | | | $ | 442,188 | | | $ | 438,973 | | | $ | 381,280 | |
| Total capital | | | 478,736 | | | | 477,930 | | | | 475,040 | | | | 472,971 | | | | 415,955 | |
| Total risk adjusted assets | | | 2,421,580 | | | | 2,507,867 | | | | 2,574,746 | | | | 2,659,886 | | | | 2,722,628 | |
| Average total assets | | | 2,807,518 | | | | 2,867,114 | | | | 2,955,779 | | | | 3,032,328 | | | | 3,094,756 | |
| | |
| * | | This is a Non-GAAP based financial measure. |
| |
| *** | | Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) |
| | | | | | | | | | | | | | | | | | | | | |
|
Total shareholders’ equity | | $ | 379,668 | | | $ | 377,812 | | | $ | 376,576 | | | $ | 375,319 | | | $ | 315,341 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | |
Preferred stock | | | 67,902 | | | | 67,724 | | | | 67,548 | | | | 67,375 | | | | 67,205 | |
| | | |
Tangible common equity | | $ | 304,955 | | | $ | 303,277 | | | $ | 302,217 | | | $ | 301,133 | | | $ | 241,325 | |
| | | |
Total assets | | $ | 2,778,833 | | | $ | 2,820,541 | | | $ | 2,905,275 | | | $ | 3,010,835 | | | $ | 3,074,923 | |
Less goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | |
| | | |
Tangible assets | | $ | 2,772,022 | | | $ | 2,813,730 | | | $ | 2,898,464 | | | $ | 3,004,024 | | | $ | 3,068,112 | |
| | | |
Tangible common equity to tangible assets | | | 11.00 | % | | | 10.78 | % | | | 10.43 | % | | | 10.02 | % | | | 7.87 | % |
Balance sheet amounts and ratios are as of period end unless otherwise noted.
