Exhibit 99
| | | | |
| | For additional information: |
| | | | Rick Green President & CEO Laura Robertson EVP & CFO |
| For Immediate Release | | | | (405) 372-2230 |
Southwest Bancorp Inc. Reports Net Income
of $5.2 Million for the First Quarter of 2012
April 18, 2012, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB, OKSBP), (“Southwest”), today reported earnings for the first quarter of 2012 of $5.2 million, compared to $2.5 million for the first quarter of 2011. Net income available to common shareholders was $4.1 million, or $0.21 per diluted share for the first quarter of 2012, compared to $1.4 million, or $0.07 per diluted share for the first quarter of 2011. The increase in quarterly income over the first quarter of 2011 was primarily the result of a lower required provision for loan losses and reduced noninterest expense, offset in part by a loan volume-driven decrease in net interest income. Southwest recorded a net loss of ($58.3) million and a net loss available to common shareholders of ($59.3) million, or ($3.05) per diluted share, for the fourth quarter of 2011.
“We are pleased with the first quarter earnings and quarter-end credit quality.” Rick Green, President and CEO, stated. “These positive outcomes are mainly attributable to the changes we made last spring in our credit and lending functions and our fourth quarter 2011 sales of loans and other real estate.” In the fourth quarter of 2011, Southwest sold approximately $300 million of loans and other real estate. Approximately $170 million of the total were nonperforming assets. The remaining assets sold were classified worse than “pass” in Southwest’s credit risk system or were pass assets related to other assets sold. These sales contributed to last year’s loss, but immediately and substantially reduced Southwest’s nonperforming assets and potential problem loans.
Mr. Green stated, “At quarter-end, our levels of nonperforming assets and potential problem loans were essentially the same as at year-end 2011, and our allowance for loan losses at quarter-end stood at over 300% of nonperforming loans.
“Our total portfolio loans continued to decrease in the quarter, as we had anticipated. The lower volume led to lower net interest income. The first quarter decrease is a result of ordinary payoffs and softness in loan demand. We plan to stabilize loan revenue and volume by generating new loans prudently and profitably, but currently expect continued volume declines until later this year.
“As of March 31, 2012, the capital ratios for Southwest and each of its banking subsidiaries continued to substantially exceed the ratios for regulatory classification as “well-capitalized”.
“Our first quarter 2012 produced a reasonable profit from solid core banking. Your Board of Directors and Management are driven to return to sustained profitability, the resumption of dividends for trust preferred securities, preferred stock, and common stock, and to once again produce reliable and attractive returns for our shareholders.”
Key items for the quarter were as follows:
Unless otherwise indicated, the following discussion excludes “covered” assets, which are subject to loss sharing agreements with the FDIC. For information on covered versus noncovered assets, please see the accompanying unaudited financial statements and tables.
| | • | | Nonperforming loans were $14.4 million, 0.92% of portfolio loans, as of March 31, 2012, an increase of $0.9 million, or 6%, from $13.5 million, 0.80% of portfolio loans, as of December 31, 2011. |
Southwest Bancorp Inc. Reports Net Income of $5.2 Million for the First Quarter of 2012
| | • | | The allowance for loan losses to nonperforming loans was 312.14% as of March 31, 2012 compared to 326.47% as of December 31, 2011. |
| | • | | Nonperforming assets were $33.8 million, or 2.12% of portfolio loans and other real estate, as of March 31, 2012, an increase of $0.4 million (1%) from $33.4 million, or 1.96% of portfolio loans and other real estate, as of December 31, 2011. The increase in nonperforming assets during the first quarter of 2012 is attributable to placing $3.9 million in loans on nonaccrual, offset in part by the net charge-off of $1.9 million in nonperforming loans, receipt of $1.0 million in resolutions and payments on nonperforming loans and $0.6 million from sales of other real estate, and transferring $0.1 million from nonperforming loans to other real estate. |
| | • | | Potential problem loans were $126.3 million as of March 31, 2012, a decrease of $6.7 million (5%) from $133.0 million as of December 31, 2011. The decrease in potential problem loans consists of $16.5 million in resolutions and paydowns, $9.5 million in upgrades, and $0.6 million in movement to nonaccrual, offset in part by $19.8 million in loans identified as potential problem loans. |
| | • | | The allowance for loan losses was $45.0 million at March 31, 2012, up $0.8 million, or 2%, from December 31, 2011. The allowance for loan losses to portfolio loans was 2.87% as of March 31, 2012 compared to 2.62% as of December 31, 2011. |
| | • | | The provision for loan losses (including a provision with respect to covered loans) was $1.7 million for the first quarter of 2012, while net charge-offs were $1.3 million. For the first quarter of 2011, the provision for loan losses and net charge-offs were $9.1 million and $13.0 million, respectively. The provision for loans losses is the amount of expense that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs for the period. |
| | • | | Portfolio loans decreased $116.3 million, or 7%, from year-end. |
| | • | | Investment securities increased $58.5 million, or 21%, to $333.9 million as of March 31, 2012, from $275.4 million as of December 31, 2011. The increase is primarily the result of a $10.0 million, or 38%, increase in municipal securities, an $11.2 million, or 17%, increase in U.S. government and agency securities, and a $37.0 million, or 20%, increase in residential mortgage-backed securities, which consists of government agency guaranteed securities. The investment portfolio is managed to provide safety, liquidity, and collateral for public funds and borrowings. Southwest plans to continue to invest in treasury, U.S. agency, and high grade municipal securities. The investment portfolio continues to be managed in compliance with the current investment policy, including the average duration of the portfolio not exceeding four years. |
| | • | | The capital ratios of Southwest and each of its banking subsidiaries, as of March 31, 2012, met the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $401.8 million, for a total risk-based capital ratio of 22.49%, and Tier 1 capital was $378.9 million, for a Tier 1 risk-based capital ratio of 21.21%. Southwest’s capital exceeded the minimum to be classified as “well-capitalized” by $223.2 million. Stillwater National Bank, Southwest’s principal banking subsidiary, had total regulatory capital of $321.9 million, for a total risk-based capital ratio of 20.16%, and Tier 1 capital of $286.7 million, for a Tier 1 risk-based capital ratio of 17.95%. Stillwater National Bank exceeded the minimum to be classified as “well-capitalized” by $122.4 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators. Stillwater National Bank’s leverage and total risk-based capital ratios also exceeded the individual minimum ratios agreed to with the Comptroller of the Currency of 8.50% and 12.50%. |
| | • | | In July 2011, Southwest determined to suspend payments of interest on its debentures and dividends on related trust preferred securities and to defer payments of dividends on its Series B Preferred Securities issued under the U.S. Treasury Department’s Capital Purchase Program. The terms of the debentures and trust preferred securities allow Southwest to increase or decrease the deferral period without default or penalty. As of March 31, 2012, $4.3 million was accrued for interest on the debentures and $3.1 million was accrued for dividends on the Series B Preferred Securities. Payments of dividends and debenture interest by Southwest and Stillwater National are subject to regulatory approval. |
| | • | | As of March 31, 2012, the holding company has $30.8 million in available cash. |
Southwest Bancorp Inc. Reports Net Income of $5.2 Million for the First Quarter of 2012
Financial Overview
Condition: Total assets were $2.3 billion and total loans were $1.6 billion at March 31, 2012, decreases of 5% and 7%, respectively, from December 31, 2011.
At March 31, 2012 the allowance for loan losses was $45.1 million, an increase of 1% from December 31, 2011.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of March 31, 2012, compared to 94% at December 31, 2011. Core funding by segment is as follows as of March 31, 2012 and December 31, 2011, respectively: $1,386.1 million and $1,426.2 million in Oklahoma banking, $152.1 million and $156.2 million in Texas banking, $265.3 million and $273.6 million in Kansas banking, and $13.6 million and $3.9 million in the secondary market and other operations segments. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at March 31, 2012, compared to 6% at December 31, 2011. Please see Table 6 for details on these non-GAAP financial measures.
First Quarter Results:
Summary: Net income available to common shareholders was $4.1 million as of March 31, 2012, compared to $1.4 million as of March 31, 2011. The $2.7 million increase in our net income available to common shareholders from 2011 is the result of a $7.3 million decrease in the provision for loan losses, a $1.3 million decrease in noninterest expense, and a $0.3 million increase in noninterest income, offset in part by a $4.6 million decrease in net interest income and a $1.6 million increase in income tax expense.
The first quarter 2012 effective tax rate was 37.50%.
Net Interest Income:Net interest income totaled $20.9 million for the first quarter of 2012, compared to $25.4 million for the first quarter of 2011, a decrease of $4.6 million, or 18%, and to $21.9 million for the fourth quarter of 2011, a decrease of $1.0 million, or 5%. Net interest margin was 3.83% for the first quarter of 2012, compared to 3.78% for the first quarter of 2011 and 3.62% for the fourth quarter of 2011. Included in the first quarter of 2012 and the first quarter of 2011 net interest margins were immaterial adjustments of the discount accretion on loans and the loss share receivable, offset by immaterial interest reversals on nonaccrual loans. Included in the fourth quarter of 2011 was a net reduction of $1.2 million resulting from interest reversals on nonaccrual loans, offset by quarterly adjustments of the discount accretion on loans and the loss share receivable. The net effects of these adjustments on net interest margin were a 1 basis point increase for the first quarter of 2012, a 1 basis point increase for the first quarter of 2011, and a 19 basis point decrease for the fourth quarter of 2011.
Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $1.7 million for the first quarter of 2012, compared to $9.1 million for first quarter of 2011 and $78.3 million for the fourth quarter of 2011. Net charge-offs totaled $1.3 million, or 0.32% (annualized) of average portfolio loans for the first quarter of 2012, compared to $13.0 million, or 2.25% (annualized) of average portfolio loans for the first quarter of 2011 and $98.3 million, or 19.78% (annualized) of average portfolio loans for the fourth quarter of 2011.
Noninterest Income: Noninterest income totaled $3.5 million for the first quarter of 2012, compared to $3.2 million for the first quarter of 2011 and $3.6 million for the fourth quarter of 2011. The increase from first quarter of 2011 in noninterest income was primarily the result of a $0.3 million increase in the gain on sale of loans, offset in part by a $0.1 million decrease in other noninterest income, which includes the withdrawal from investments that took place in first quarter of 2011.
Noninterest Expense:Noninterest expense totaled $14.3 million for the first quarter of 2012, compared to $15.6 million for the first quarter 2011 and $41.9 million for the fourth quarter of 2011. The decrease from first quarter of 2011 consists of: a $0.5 million decrease in FDIC and other insurance expense as a result of the change in premium calculation methodology from a deposit basis to an asset basis; a $0.4 million decrease in general and administrative expense, which is the result of reduced legal fees and no remaining obligation to accrue for estimated interest and penalties on unrecognized tax benefits; a $0.3 million decrease in personnel expense, primarily as a result of decreased profit sharing contributions; and a $0.3 million decrease in occupancy expense, due to decreased building rental expense, maintenance renewal expense, and depreciation expense as a result of controlling capital expenditures; offset in part by a $0.1 million increase in the provision for unfunded loan commitments.
Southwest Bancorp Inc. Reports Net Income of $5.2 Million for the First Quarter of 2012
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, 2012 we had total assets of $2.3 billion, deposits of $1.8 billion, and shareholders’ equity of $311.6 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, 2012, approximately $562.5 million, or 35%, of our noncovered loans were loans to individuals and businesses in the healthcare industry. We conduct regular market reviews of our current and potential healthcare lending and the appropriate concentrations within healthcare based upon economic and regulatory conditions.
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 residential lending has never been a part of our business strategy, and our exposure to subprime mortgage loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of March 31, 2012 approximately $1.2 billion, or 76%, of our noncovered loans were commercial real estate mortgage and construction loans, including $376.8 million of loans to individuals and businesses in the healthcare industry.
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.
Caution About Forward-Looking Statements
We make forward-looking statements in this news release that are subject to risks and uncertainties. We intend these statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include:
| | • | | Statements of Southwest’s goals, intentions, and expectations; |
| | • | | Estimates of risks and of future costs and benefits; |
| | • | | Expectations regarding our future financial performance and the financial performance of our operating segments; |
| | • | | Expectations regarding regulatory actions; |
| | • | | Expectations regarding our ability to utilize tax loss benefits; |
| | • | | Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; |
| | • | | Estimates of the value of assets held for sale or available for sale; and |
| | • | | Statements of our 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, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. 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. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read the “Risk Factors” contained in Southwest’s reports to the Securities and Exchange Commission.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause our actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. We do
Southwest Bancorp Inc. Reports Net Income of $5.2 Million for the First Quarter of 2012
not intend, and undertake no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.
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, 2012 through the date its financial statements are filed with the Securities and Exchange Commission. The March 31, 2012 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.
Southwest Bancorp Inc. Reports Net Income of $5.2 Million for the First Quarter of 2012
Financial Tables
| | |
| SOUTHWEST BANCORP, INC. | | Table 1 |
| UNAUDITED FINANCIAL HIGHLIGHTS | | |
| (Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | |
| | | First Quarter | | | Fourth Quarter | |
| QUARTERLY HIGHLIGHTS | | | | | | | | % | | | | | | % | |
| | | 2012 | | | 2011 | | | Change | | | 2011 | | | Change | |
Operations | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 20,849 | | | $ | 25,421 | | | | (18 | )% | | $ | 21,901 | | | | (5 | )% |
Provision for loan losses | | | 1,716 | | | | 9,050 | | | | (81 | ) | | | 78,285 | | | | (98 | ) |
Noninterest income | | | 3,514 | | | | 3,249 | | | | 8 | | | | 3,576 | | | | (2 | ) |
Noninterest expense | | | 14,309 | | | | 15,625 | | | | (8 | ) | | | 41,903 | | | | (66 | ) |
Income before taxes | | | 8,338 | | | | 3,995 | | | | 109 | | | | (94,711 | ) | | | (109 | ) |
Taxes on income | | | 3,127 | | | | 1,534 | | | | 104 | | | | (36,450 | ) | | | (109 | ) |
Net income | | | 5,211 | | | | 2,461 | | | | 112 | | | | (58,261 | ) | | | (109 | ) |
Net income available to common shareholders | | | 4,119 | | | | 1,408 | | | | 193 | | | | (59,340 | ) | | | (107 | ) |
Diluted earnings per share | | | 0.21 | | | | 0.07 | | | | 200 | | | | (3.05 | ) | | | (107 | ) |
Balance Sheet | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 2,273,861 | | | | 2,779,028 | | | | (18 | ) | | | 2,382,873 | | | | (5 | ) |
Loans held for sale | | | 38,765 | | | | 37,348 | | | | 4 | | | | 38,695 | | | | — | |
Noncovered portfolio loans | | | 1,570,866 | | | | 2,241,080 | | | | (30 | ) | | | 1,687,178 | | | | (7 | ) |
Covered portfolio loans | | | 33,314 | | | | 49,117 | | | | (32 | ) | | | 37,615 | | | | (11 | ) |
Total deposits | | | 1,806,780 | | | | 2,218,571 | | | | (19 | ) | | | 1,921,382 | | | | (6 | ) |
Total shareholders’ equity | | | 311,643 | | | | 379,350 | | | | (18 | ) | | | 307,186 | | | | 1 | |
Book value per common share | | | 12.50 | | | | 16.02 | | | | (22 | ) | | | 12.28 | | | | 2 | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | 3.83 | % | | | 3.78 | % | | | | | | | 3.62 | % | | | | |
Efficiency ratio | | | 58.73 | | | | 54.50 | | | | | | | | 164.47 | | | | | |
Total capital to risk-weighted assets | | | 22.49 | | | | 19.77 | | | | | | | | 20.78 | | | | | |
Nonperforming loans to portfolio loans - noncovered | | | 0.92 | | | | 6.04 | | | | | | | | 0.80 | | | | | |
Shareholders’ equity to total assets | | | 13.71 | | | | 13.65 | | | | | | | | 12.89 | | | | | |
Tangible common equity to tangible assets* | | | 10.42 | | | | 10.99 | | | | | | | | 9.76 | | | | | |
Return on average assets (annualized) | | | 0.89 | | | | 0.35 | | | | | | | | (8.96 | ) | | | | |
Return on average common equity (annualized) | | | 6.84 | | | | 1.81 | | | | | | | | (79.48 | ) | | | | |
Return on average tangible common equity (annualized)** | | | 7.03 | | | | 1.85 | | | | | | | | (81.35 | ) | | | | |
Balance sheet amounts and ratios are as of period end unless otherwise noted.
| * | This is a Non-GAAP financial measure. Please see Table 6 for a reconciliation to the most directly comparable GAAP based measure. |
| ** | This is a Non-GAAP financial measure. |
Please see accompanying tables for additional financial information.
| | | | |
| SOUTHWEST BANCORP, INC. | | | Table 2 | |
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | | | | |
| (Dollars in thousands, except per share) | | | | |
| | | | | | | | | | | | |
| | | March 31,
2012 | | | December 31,
2011 | | | March 31,
2011 | |
Assets | | | | | | | | | | | | |
Cash and due from banks | | $ | 24,458 | | | $ | 30,247 | | | $ | 28,034 | |
Interest-bearing deposits | | | 167,005 | | | | 199,642 | | | | 89,529 | |
| | | | | | | | | | | | |
Cash and cash equivalents | | | 191,463 | | | | 229,889 | | | | 117,563 | |
Securities held to maturity (fair values of $13,564, $15,885, $12,903, respectively) | | | 12,981 | | | | 15,252 | | | | 13,042 | |
Securities available for sale (amortized cost of $314,534, $253,869, $243,556, respectively) | | | 320,879 | | | | 260,100 | | | | 245,394 | |
Loans held for sale | | | 38,765 | | | | 38,695 | | | | 37,348 | |
Noncovered loans receivable | | | 1,570,866 | | | | 1,687,178 | | | | 2,241,080 | |
Less: Allowance for loan losses | | | (45,023 | ) | | | (44,233 | ) | | | (61,285 | ) |
| | | | | | | | | | | | |
Net noncovered loans receivable | | | 1,525,843 | | | | 1,642,945 | | | | 2,179,795 | |
Covered loans receivable (includes loss share: $8,638, $10,073, and $12,617, respectively) | | | 33,314 | | | | 37,615 | | | | 49,117 | |
Less: Allowance for loan losses | | | (60 | ) | | | (451 | ) | | | — | |
| | | | | | | | | | | | |
Net covered loans receivable | | | 33,254 | | | | 37,164 | | | | 49,117 | |
Net loans receivable | | | 1,559,097 | | | | 1,680,109 | | | | 2,228,912 | |
Accrued interest receivable | | | 7,408 | | | | 7,176 | | | | 8,789 | |
Income tax receivable | | | 24,544 | | | | 28,666 | | | | — | |
Premises and equipment, net | | | 22,587 | | | | 22,700 | | | | 23,555 | |
Noncovered other real estate | | | 19,329 | | | | 19,844 | | | | 41,067 | |
Covered other real estate | | | 4,694 | | | | 4,529 | | | | 4,016 | |
Goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | |
Other intangible assets, net | | | 4,858 | | | | 4,857 | | | | 5,141 | |
Other assets | | | 60,445 | | | | 64,245 | | | | 47,390 | |
| | | | | | | | | | | | |
Total assets | | $ | 2,273,861 | | | $ | 2,382,873 | | | $ | 2,779,028 | |
| | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
Noninterest-bearing demand | | $ | 395,141 | | | $ | 400,985 | | | $ | 369,013 | |
Interest-bearing demand | | | 119,759 | | | | 105,905 | | | | 112,731 | |
Money market accounts | | | 349,419 | | | | 423,181 | | | | 486,770 | |
Savings accounts | | | 34,679 | | | | 33,406 | | | | 28,440 | |
Time deposits of $100,000 or more | | | 464,876 | | | | 487,907 | | | | 669,817 | |
Other time deposits | | | 442,906 | | | | 469,998 | | | | 551,800 | |
| | | | | | | | | | | | |
Total deposits | | | 1,806,780 | | | | 1,921,382 | | | | 2,218,571 | |
Accrued interest payable | | | 5,016 | | | | 3,689 | | | | 1,805 | |
Income tax payable | | | — | | | | — | | | | 3,510 | |
Other liabilities | | | 13,320 | | | | 12,174 | | | | 8,497 | |
Other borrowings | | | 55,139 | | | | 56,479 | | | | 85,332 | |
Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 81,963 | |
| | | | | | | | | | | | |
Total liabilities | | | 1,962,218 | | | | 2,075,687 | | | | 2,399,678 | |
| | | |
Shareholders’ equity | | | | | | | | | | | | |
Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding | | | 68,644 | | | | 68,455 | | | | 67,902 | |
Common stock - $1 par value; 40,000,000 shares authorized; 19,445,913, 19,444,213, 19,438,290 shares issued and outstanding, respectively | | | 19,446 | | | | 19,444 | | | | 19,438 | |
Additional paid-in capital | | | 98,895 | | | | 98,932 | | | | 98,994 | |
Retained earnings | | | 122,362 | | | | 118,244 | | | | 192,200 | |
Accumulated other comprehensive income | | | 2,296 | | | | 2,111 | | | | 816 | |
| | | | | | | | | | | | |
Total shareholders’ equity | | | 311,643 | | | | 307,186 | | | | 379,350 | |
| | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,273,861 | | | $ | 2,382,873 | | | $ | 2,779,028 | |
| | | | | | | | | | | | |
| | |
| SOUTHWEST BANCORP, INC. | | Table 3 |
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | | |
(Dollars in thousands, except per share) | | |
| | | | | | | | |
| | | For the three months
ended March 31, | |
| | | 2012 | | | 2011 | |
Interest income | | | | | | | | |
Loans | | $ | 23,377 | | | $ | 30,539 | |
Investment securities | | | 1,946 | | | | 1,746 | |
Other interest-earning assets | | | 184 | | | | 140 | |
| | | | | | | | |
Total interest income | | | 25,507 | | | | 32,425 | |
| | |
Interest expense | | | | | | | | |
Interest-bearing deposits | | | 2,896 | | | | 5,133 | |
Other borrowings | | | 224 | | | | 497 | |
Subordinated debentures | | | 1,538 | | | | 1,374 | |
| | | | | | | | |
Total interest expense | | | 4,658 | | | | 7,004 | |
| | | | | | | | |
Net interest income | | | 20,849 | | | | 25,421 | |
| | |
Provision for loan losses | | | 1,716 | | | | 9,050 | |
| | | | | | | | |
Net interest income after provision for loan losses | | | 19,133 | | | | 16,371 | |
| | |
Noninterest income | | | | | | | | |
Service charges and fees | | | 2,927 | | | | 2,878 | |
Gain on sales of loans | | | 535 | | | | 194 | |
Other noninterest income | | | 52 | | | | 177 | |
| | | | | | | | |
Total noninterest income | | | 3,514 | | | | 3,249 | |
| | |
Noninterest expense | | | | | | | | |
Salaries and employee benefits | | | 7,247 | | | | 7,515 | |
Occupancy | | | 2,545 | | | | 2,804 | |
FDIC and other insurance | | | 783 | | | | 1,243 | |
Other real estate, net | | | 372 | | | | 436 | |
General and administrative | | | 3,362 | | | | 3,627 | |
| | | | | | | | |
Total noninterest expense | | | 14,309 | | | | 15,625 | |
| | | | | | | | |
Income before taxes | | | 8,338 | | | | 3,995 | |
Taxes on income | | | 3,127 | | | | 1,534 | |
| | | | | | | | |
Net income | | $ | 5,211 | | | $ | 2,461 | |
| | | | | | | | |
Net income available to common shareholders | | $ | 4,119 | | | $ | 1,408 | |
| | | | | | | | |
Basic earnings per common share | | $ | 0.21 | | | $ | 0.07 | |
Diluted earnings per common share | | | 0.21 | | | | 0.07 | |
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, | |
| | | 2012 | | | 2011 | |
| | | Average
Balance | | | Interest | | | Average
Yield/
Rate | | | Average
Balance | | | Interest | | | Average
Yield/
Rate | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
Noncovered loans | | $ | 1,664,615 | | | $ | 22,723 | | | | 5.49 | % | | $ | 2,326,882 | | | $ | 29,655 | | | | 5.17 | % |
Covered loans | | | 36,050 | | | | 654 | | | | 7.30 | | | | 51,494 | | | | 884 | | | | 6.96 | |
Investment securities | | | 314,925 | | | | 1,946 | | | | 2.49 | | | | 256,384 | | | | 1,746 | | | | 2.76 | |
Other interest-earning assets | | | 181,637 | | | | 184 | | | | 0.41 | | | | 92,692 | | | | 140 | | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 2,197,227 | | | | 25,507 | | | | 4.67 | | | | 2,727,452 | | | | 32,425 | | | | 4.82 | |
Other assets | | | 158,921 | | | | | | | | | | | | 91,807 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,356,148 | | | | | | | | | | | $ | 2,819,259 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 120,605 | | | $ | 70 | | | | 0.23 | % | | $ | 112,441 | | | $ | 124 | | | | 0.45 | % |
Money market accounts | | | 393,820 | | | | 286 | | | | 0.29 | | | | 491,306 | | | | 677 | | | | 0.56 | |
Savings accounts | | | 34,587 | | | | 13 | | | | 0.15 | | | | 27,741 | | | | 16 | | | | 0.23 | |
Time deposits | | | 931,792 | | | | 2,527 | | | | 1.09 | | | | 1,248,152 | | | | 4,316 | | | | 1.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,480,804 | | | | 2,896 | | | | 0.79 | | | | 1,879,640 | | | | 5,133 | | | | 1.11 | |
Other borrowings | | | 54,848 | | | | 224 | | | | 1.64 | | | | 90,198 | | | | 497 | | | | 2.23 | |
Subordinated debentures | | | 81,963 | | | | 1,538 | | | | 7.51 | | | | 81,969 | | | | 1,374 | | | | 6.70 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 1,617,615 | | | | 4,658 | | | | 1.16 | | | | 2,051,807 | | | | 7,004 | | | | 1.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 378,959 | | | | | | | | | | | | 365,161 | | | | | | | | | |
Other liabilities | | | 48,688 | | | | | | | | | | | | 19,789 | | | | | | | | | |
Shareholders’ equity | | | 310,886 | | | | | | | | | | | | 382,502 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,356,148 | | | | | | | | | | | $ | 2,819,259 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and spread | | | | | | $ | 20,849 | | | | 3.51 | % | | | | | | $ | 25,421 | | | | 3.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin (1) | | | | | | | | | | | 3.83 | % | | | | | | | | | | | 3.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average interest-earning assets to average interest-bearing liabilities | | | 135.83 | % | | | | | | | | | | | 132.93 | % | | | | | | | | |
| | �� | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net interest margin = annualized net interest income / average interest-earning assets |
| | |
| SOUTHWEST BANCORP, INC. | | Table 5 |
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | | |
(Dollars in thousands, except per share) | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
LOAN COMPOSITION | | | | | | | | | | | | | | | | | | | | |
Noncovered: | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage: | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 996,486 | | | $ | 1,028,561 | | | $ | 1,169,010 | | | $ | 1,262,753 | | | $ | 1,302,164 | |
One-to-four family residential | | | 76,287 | | | | 80,375 | | | | 85,272 | | | | 87,407 | | | | 87,286 | |
Real estate construction | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 222,678 | | | | 227,098 | | | | 348,053 | | | | 372,576 | | | | 403,635 | |
One-to-four family residential | | | 3,814 | | | | 4,987 | | | | 25,527 | | | | 26,400 | | | | 26,758 | |
Commercial | | | 273,324 | | | | 346,266 | | | | 367,241 | | | | 404,229 | | | | 416,392 | |
Installment and consumer: | | | | | | | | | | | | | | | | | | | | |
Guaranteed student loans | | | 5,276 | | | | 5,396 | | | | 5,547 | | | | 5,600 | | | | 5,700 | |
Other | | | 31,766 | | | | 33,190 | | | | 32,946 | | | | 34,335 | | | | 36,493 | |
| | | | | | | | | | | | | | | | | | | | |
Total noncovered loans, including held for sale | | | 1,609,631 | | | | 1,725,873 | | | | 2,033,596 | | | | 2,193,300 | | | | 2,278,428 | |
Less allowance for loan losses | | | (45,023 | ) | | | (44,233 | ) | | | (64,698 | ) | | | (54,575 | ) | | | (61,285 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total noncovered loans, net | | $ | 1,564,608 | | | $ | 1,681,640 | | | $ | 1,968,898 | | | $ | 2,138,725 | | | $ | 2,217,143 | |
| | | | | | | | | | | | | | | | | | | | |
Covered: | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage: | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 22,607 | | | $ | 23,686 | | | $ | 23,201 | | | $ | 26,976 | | | $ | 28,929 | |
One-to-four family residential | | | 5,766 | | | | 7,072 | | | | 7,378 | | | | 8,113 | | | | 8,192 | |
Real estate construction | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2,344 | | | | 3,746 | | | | 5,987 | | | | 6,001 | | | | 6,144 | |
One-to-four family residential | | | — | | | | — | | | | — | | | | 172 | | | | 281 | |
Commercial | | | 2,401 | | | | 2,841 | | | | 4,286 | | | | 4,461 | | | | 5,021 | |
Installment and consumer: | | | 196 | | | | 270 | | | | 357 | | | | 430 | | | | 550 | |
| | | | | | | | | | | | | | | | | | | | |
Total covered loans | | | 33,314 | | | | 37,615 | | | | 41,209 | | | | 46,153 | | | | 49,117 | |
Less allowance for loan losses | | | (60 | ) | | | (451 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total covered loans, net | | $ | 33,254 | | | $ | 37,164 | | | $ | 41,209 | | | $ | 46,153 | | | $ | 49,117 | |
| | | | | | | | | | | | | | | | | | | | |
LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 642,700 | | | $ | 688,592 | | | $ | 770,306 | | | $ | 834,189 | | | $ | 838,006 | |
Texas banking | | | 636,540 | | | | 665,010 | | | | 845,485 | | | | 911,134 | | | | 953,123 | |
Kansas banking | | | 202,050 | | | | 238,468 | | | | 252,302 | | | | 260,431 | | | | 272,685 | |
Out of market | | | 122,890 | | | | 132,723 | | | | 166,810 | | | | 196,495 | | | | 226,383 | |
| | | | | | | | | | | | | | | | | | | | |
Subtotal | | | 1,604,180 | | | | 1,724,793 | | | | 2,034,903 | | | | 2,202,249 | | | | 2,290,197 | |
Secondary market | | | 38,765 | | | | 38,695 | | | | 39,902 | | | | 37,204 | | | | 37,348 | |
| | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 1,642,945 | | | $ | 1,763,488 | | | $ | 2,074,805 | | | $ | 2,239,453 | | | $ | 2,327,545 | |
| | | | | | | | | | | | | | | | | | | | |
NONPERFORMING LOANS BY TYPE | | | | | | | | | | | | | | | | | | | | |
Construction & development | | $ | 3,768 | | | $ | 3,877 | | | $ | 68,554 | | | $ | 73,487 | | | $ | 68,183 | |
Commercial real estate | | | 6,821 | | | | 4,667 | | | | 56,234 | | | | 60,857 | | | | 47,986 | |
Commercial | | | 2,209 | | | | 3,374 | | | | 6,080 | | | | 15,224 | | | | 16,633 | |
One-to-four family residential | | | 1,508 | | | | 1,491 | | | | 1,706 | | | | 1,457 | | | | 2,634 | |
Consumer | | | 118 | | | | 140 | | | | 152 | | | | 153 | | | | 27 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans - noncovered | | $ | 14,424 | | | $ | 13,549 | | | $ | 132,726 | | | $ | 151,178 | | | $ | 135,463 | |
| | | | | | | | | | | | | | | | | | | | |
NONPERFORMING LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 2,864 | | | $ | 3,699 | | | $ | 14,932 | | | $ | 18,870 | | | $ | 13,443 | |
Texas banking | | | 2,258 | | | | 83 | | | | 95,191 | | | | 91,449 | | | | 87,122 | |
Kansas banking | | | 8,617 | | | | 9,070 | | | | 7,976 | | | | 9,725 | | | | 7,924 | |
Out of market | | | 685 | | | | 697 | | | | 14,627 | | | | 31,134 | | | | 26,974 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans - noncovered | | $ | 14,424 | | | $ | 13,549 | | | $ | 132,726 | | | $ | 151,178 | | | $ | 135,463 | |
| | | | | | | | | | | | | | | | | | | | |
OTHER REAL ESTATE BY TYPE | | | | | | | | | | | | | | | | | | | | |
Construction & development | | $ | 3,542 | | | $ | 3,542 | | | $ | 38,927 | | | $ | 12,588 | | | $ | 6,304 | |
Commercial real estate | | | 14,854 | | | | 15,464 | | | | 24,364 | | | | 16,300 | | | | 23,890 | |
One-to-four family residential | | | 933 | | | | 838 | | | | 7,494 | | | | 10,068 | | | | 10,873 | |
| | | | | | | | | | | | | | | | | | | | |
Total other real estate - noncovered | | $ | 19,329 | | | $ | 19,844 | | | $ | 70,785 | | | $ | 38,956 | | | $ | 41,067 | |
| | | | | | | | | | | | | | | | | | | | |
OTHER REAL ESTATE BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 6,273 | | | $ | 6,178 | | | $ | 8,709 | | | $ | 2,613 | | | $ | 4,616 | |
Texas banking | | | 9,846 | | | | 9,846 | | | | 35,270 | | | | 17,398 | | | | 18,652 | |
Kansas banking | | | 3,210 | | | | 3,210 | | | | 12,390 | | | | 14,539 | | | | 12,848 | |
Out of market | | | — | | | | 610 | | | | 14,416 | | | | 4,406 | | | | 4,951 | |
| | | | | | | | | | | | | | | | | | | | |
Total other real estate - noncovered | | $ | 19,329 | | | $ | 19,844 | | | $ | 70,785 | | | $ | 38,956 | | | $ | 41,067 | |
| | | | | | | | | | | | | | | | | | | | |
POTENTIAL PROBLEM LOANS BY TYPE | | | | | | | | | | | | | | | | | | | | |
Construction & development | | $ | 33,907 | | | $ | 43,607 | | | $ | 75,867 | | | $ | 111,032 | | | $ | 111,204 | |
Commercial real estate | | | 67,654 | | | | 55,873 | | | | 162,692 | | | | 140,079 | | | | 85,833 | |
Commercial | | | 23,506 | | | | 32,477 | | | | 37,027 | | | | 38,850 | | | | 19,940 | |
One-to-four family residential | | | 1,253 | | | | 1,082 | | | | 1,108 | | | | 1,210 | | | | 429 | |
| | | | | | | | | | | | | | | | | | | | |
Total potential problem loans - noncovered | | $ | 126,320 | | | $ | 133,039 | | | $ | 276,694 | | | $ | 291,171 | | | $ | 217,406 | |
| | | | | | | | | | | | | | | | | | | | |
POTENTIAL PROBLEM LOANS BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 32,761 | | | $ | 27,481 | | | $ | 54,310 | | | $ | 42,565 | | | $ | 30,678 | |
Texas banking | | | 78,961 | | | | 83,035 | | | | 163,973 | | | | 183,486 | | | | 114,506 | |
Kansas banking | | | 1,893 | | | | 836 | | | | 14,530 | | | | 11,289 | | | | 19,472 | |
Out of market | | | 12,705 | | | | 21,687 | | | | 43,881 | | | | 53,831 | | | | 52,750 | |
| | | | | | | | | | | | | | | | | | | | |
Total potential problem loans - noncovered | | $ | 126,320 | | | $ | 133,039 | | | $ | 276,694 | | | $ | 291,171 | | | $ | 217,406 | |
| | | | | | | | | | | | | | | | | | | | |
Continued | | | | | | | | | | | | | | | | | | | | |
| | | | |
| SOUTHWEST BANCORP, INC. | | | Table 5 | |
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | | | Continued | |
(Dollars in thousands, except per share) | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
OUT OF MARKET LOANS | | | | | | | | | | | | | | | | | | | | |
Net balance out of market loans: | | | | | | | | | | | | | | | | | | | | |
Arizona | | $ | 34,749 | | | $ | 26,372 | | | $ | 35,978 | | | $ | 49,977 | | | $ | 57,657 | |
Iowa | | | 23,130 | | | | 26,494 | | | | 26,626 | | | | 26,695 | | | | 26,759 | |
Ohio | | | 12,650 | | | | 12,741 | | | | 9,367 | | | | 9,568 | | | | 9,963 | |
California | | | 10,252 | | | | 10,530 | | | | 10,737 | | | | 9,814 | | | | 9,984 | |
Tennessee | | | 6,368 | | | | 6,427 | | | | 6,484 | | | | 6,550 | | | | 6,606 | |
Florida | | | 6,269 | | | | 6,421 | | | | 6,374 | | | | 10,582 | | | | 7,600 | |
Arkansas | | | 5,439 | | | | 5,192 | | | | 3,848 | | | | 2,549 | | | | 1,502 | |
Louisiana | | | 4,931 | | | | 5,336 | | | | 5,644 | | | | 5,963 | | | | 8,018 | |
New Jersey | | | 4,170 | | | | 4,283 | | | | 4,276 | | | | 6,420 | | | | 7,969 | |
New Mexico | | | 3,715 | | | | 15,215 | | | | 21,019 | | | | 21,092 | | | | 28,226 | |
Other (16 states included) | | | 11,217 | | | | 13,712 | | | | 36,457 | | | | 47,285 | | | | 62,099 | |
| | | | | | | | | | | | | | | | | | | | |
Total out of market loans | | $ | 122,890 | | | $ | 132,723 | | | $ | 166,810 | | | $ | 196,495 | | | $ | 226,383 | |
| | | | | | | | | | | | | | | | | | | | |
Nonperforming out of market loans: | | | | | | | | | | | | | | | | | | | | |
Florida | | $ | 293 | | | $ | 299 | | | $ | 305 | | | $ | 1,479 | | | $ | 1,479 | |
Arizona | | | 261 | | | | 267 | | | | 8,441 | | | | 16,745 | | | | 10,316 | |
Colorado | | | 131 | | | | 131 | | | | 746 | | | | 4,909 | | | | 880 | |
New Mexico | | | | | | | — | | | | 5,135 | | | | 5,135 | | | | 11,827 | |
Alabama | | | | | | | — | | | | — | | | | 157 | | | | 172 | |
Other | | | — | | | | — | | | | — | | | | 2,709 | | | | 2,300 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming out of market loans | | $ | 685 | | | $ | 697 | | | $ | 14,627 | | | $ | 31,134 | | | $ | 26,974 | |
| | | | | | | | | | | | | | | | | | | | |
Potential problem out of market loans: | | | | | | | | | | | | | | | | | | | | |
Iowa | | $ | 12,035 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
New Mexico | | | — | | | | 11,542 | | | | 11,589 | | | | 11,635 | | | | — | |
Arizona | | | — | | | | 9,463 | | | | 10,287 | | | | 14,865 | | | | 25,242 | |
California | | | 570 | | | | 578 | | | | 593 | | | | 9,423 | | | | 9,575 | |
Florida | | | 100 | | | | 104 | | | | 108 | | | | 116 | | | | — | |
Colorado | | | — | | | | — | | | | 17,034 | | | | 13,500 | | | | 17,933 | |
Alabama | | | — | | | | — | | | | 4,270 | | | | 4,292 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total potential problem out of market loans | | $ | 12,705 | | | $ | 21,687 | | | $ | 43,881 | | | $ | 53,831 | | | $ | 52,750 | |
| | | | | | | | | | | | | | | | | | | | |
ALLOWANCE ACTIVITY | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 44,684 | | | $ | 64,698 | | | $ | 54,575 | | | $ | 61,285 | | | $ | 65,229 | |
Charge offs | | | 1,936 | | | | 99,604 | | | | 16,067 | | | | 27,562 | | | | 13,392 | |
Recoveries | | | 619 | | | | 1,305 | | | | 1,564 | | | | 712 | | | | 398 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge offs | | | 1,317 | | | | 98,299 | | | | 14,503 | | | | 26,850 | | | | 12,994 | |
Provision for loan losses | | | 1,716 | | | | 78,285 | | | | 24,626 | | | | 20,140 | | | | 9,050 | |
| | | | | | | | | | | | | | | | | | | | |
Balance, end of period | | $ | 45,083 | | | $ | 44,684 | | | $ | 64,698 | | | $ | 54,575 | | | $ | 61,285 | |
| | | | | | | | | | | | | | | | | | | | |
NET CHARGE OFFS BY TYPE | | | | | | | | | | | | | | | | | | | | |
Construction & development | | $ | (42 | ) | | $ | 41,513 | | | $ | 7,177 | | | $ | 10,847 | | | $ | 1,012 | |
Commercial real estate | | | 14 | | | | 50,070 | | | | 5,702 | | | | 7,593 | | | | 7,290 | |
Commercial | | | 1,211 | | | | 6,434 | | | | 1,469 | | | | 7,999 | | | | 4,337 | |
One-to-four family residential | | | 123 | | | | 1 | | | | 55 | | | | 165 | | | | 58 | |
Consumer | | | 11 | | | | 281 | | | | 100 | | | | 246 | | | | 297 | |
| | | | | | | | | | | | | | | | | | | | |
Total net charge offs by type | | $ | 1,317 | | | $ | 98,299 | | | $ | 14,503 | | | $ | 26,850 | | | $ | 12,994 | |
| | | | | | | | | | | | | | | | | | | | |
NET CHARGE OFFS BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 1,070 | | | $ | 13,210 | | | $ | 1,058 | | | $ | 1,442 | | | $ | 1,593 | |
Texas banking | | | 229 | | | | 64,370 | | | | 7,386 | | | | 9,163 | | | | 4,502 | |
Kansas banking | | | 166 | | | | 8,872 | | | | 361 | | | | 1,791 | | | | 372 | |
Out of market | | | (148 | ) | | | 11,847 | | | | 5,698 | | | | 14,454 | | | | 6,527 | |
| | | | | | | | | | | | | | | | | | | | |
Total net charge offs by segment | | $ | 1,317 | | | $ | 98,299 | | | $ | 14,503 | | | $ | 26,850 | | | $ | 12,994 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| SOUTHWEST BANCORP, INC. | | | Table 6 | |
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | | | | |
(Dollars in thousands, except per share) | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
NET INCOME (LOSS) BY SEGMENT | | | | | | | | | | | | | | | | | | | | |
Oklahoma banking | | $ | 3,158 | | | $ | (5,586 | ) | | $ | 7 | | | $ | 5,290 | | | $ | 3,435 | |
Texas banking | | | 3,161 | | | | (35,435 | ) | | | (6,455 | ) | | | 1,575 | | | | 1,079 | |
Kansas banking | | | 1,239 | | | | (7,533 | ) | | | (612 | ) | | | 971 | | | | 131 | |
Out of market | | | (570 | ) | | | (7,857 | ) | | | (1,947 | ) | | | (9,039 | ) | | | (924 | ) |
| | | | | | | | | | | | | | | | | | | | |
Subtotal | | | 6,988 | | | | (56,411 | ) | | | (9,007 | ) | | | (1,203 | ) | | | 3,721 | |
Secondary market | | | 286 | | | | 144 | | | | 90 | | | | 127 | | | | (13 | ) |
Other operations | | | (2,063 | ) | | | (1,994 | ) | | | (608 | ) | | | (1,894 | ) | | | (1,247 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 5,211 | | | $ | (58,261 | ) | | $ | (9,525 | ) | | $ | (2,970 | ) | | $ | 2,461 | |
| | | | | | | | | | | | | | | | | | | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.21 | | | $ | (3.05 | ) | | $ | (0.54 | ) | | $ | (0.21 | ) | | $ | 0.07 | |
Diluted earnings per common share | | | 0.21 | | | | (3.05 | ) | | | (0.54 | ) | | | (0.21 | ) | | | 0.07 | |
Book value per common share | | | 12.50 | | | | 12.28 | | | | 15.37 | | | | 15.89 | | | | 16.02 | |
Tangible book value per share* | | | 12.15 | | | | 11.93 | | | | 15.02 | | | | 15.54 | | | | 15.67 | |
COMMON STOCK | | | | | | | | | | | | | | | | | | | | |
Shares issued and outstanding | | | 19,445,913 | | | | 19,444,213 | | | | 19,441,577 | | | | 19,439,167 | | | | 19,438,290 | |
OTHER FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | |
Investment securities | | $ | 333,860 | | | $ | 275,352 | | | $ | 269,599 | | | $ | 268,153 | | | $ | 258,436 | |
Loans held for sale | | | 38,765 | | | | 38,695 | | | | 39,902 | | | | 37,204 | | | | 37,348 | |
Noncovered portfolio loans | | | 1,570,866 | | | | 1,687,178 | | | | 1,993,694 | | | | 2,156,096 | | | | 2,241,080 | |
Total noncovered loans | | | 1,609,631 | | | | 1,725,873 | | | | 2,033,596 | | | | 2,193,300 | | | | 2,278,428 | |
Covered portfolio loans | | | 33,314 | | | | 37,615 | | | | 41,209 | | | | 46,153 | | | | 49,117 | |
Total assets | | | 2,273,861 | | | | 2,382,873 | | | | 2,572,492 | | | | 2,660,495 | | | | 2,779,028 | |
Total deposits | | | 1,806,780 | | | | 1,921,382 | | | | 2,022,253 | | | | 2,094,236 | | | | 2,218,571 | |
Other borrowings | | | 55,139 | | | | 56,479 | | | | 86,583 | | | | 96,682 | | | | 85,332 | |
Subordinated debentures | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | | | | 81,963 | |
Total shareholders’ equity | | | 311,643 | | | | 307,186 | | | | 367,024 | | | | 376,930 | | | | 379,350 | |
Mortgage servicing portfolio | | | 301,378 | | | | 295,492 | | | | 285,886 | | | | 283,083 | | | | 281,271 | |
INTANGIBLE ASSET DATA | | | | | | | | | | | | | | | | | | | | |
Goodwill | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | | | $ | 6,811 | |
Core deposit intangible | | | 2,906 | | | | 3,030 | | | | 3,155 | | | | 3,285 | | | | 3,420 | |
Mortgage servicing rights | | | 1,952 | | | | 1,825 | | | | 1,808 | | | | 1,781 | | | | 1,718 | |
Nonmortgage servicing rights | | | — | | | | 2 | | | | 3 | | | | 3 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | |
Total intangible assets | | $ | 11,669 | | | $ | 11,668 | | | $ | 11,777 | | | $ | 11,880 | | | $ | 11,952 | |
| | | | | | | | | | | | | | | | | | | | |
Intangible amortization expense | | $ | 296 | | | $ | 252 | | | $ | 226 | | | $ | 222 | | | $ | 361 | |
| | | | | | | | | | | | | | | | | | | | |
DEPOSIT COMPOSITION | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing demand | | $ | 395,141 | | | $ | 400,985 | | | $ | 388,365 | | | $ | 389,027 | | | $ | 369,013 | |
Interest-bearing demand | | | 119,759 | | | | 105,905 | | | | 98,270 | | | | 124,346 | | | | 112,731 | |
Money market accounts | | | 349,419 | | | | 423,181 | | | | 461,546 | | | | 465,269 | | | | 486,770 | |
Savings accounts | | | 34,679 | | | | 33,406 | | | | 31,319 | | | | 29,586 | | | | 28,440 | |
Time deposits of $100,000 or more | | | 464,876 | | | | 487,907 | | | | 551,914 | | | | 570,116 | | | | 669,817 | |
Other time deposits | | | 442,906 | | | | 469,998 | | | | 490,839 | | | | 515,892 | | | | 551,800 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits** | | $ | 1,806,780 | | | $ | 1,921,382 | | | $ | 2,022,253 | | | $ | 2,094,236 | | | $ | 2,218,571 | |
| | | | | | | | | | | | | | | | | | | | |
OFFICES AND EMPLOYEES | | | | | | | | | | | | | | | | | | | | |
FTE Employees | | | 435 | | | | 435 | | | | 437 | | | | 437 | | | | 424 | |
Branches | | | 23 | | | | 23 | | | | 23 | | | | 23 | | | | 23 | |
Loan production offices | | | 2 | | | | 2 | | | | 2 | | | | 2 | | | | 2 | |
Assets per employee | | $ | 5,227 | | | $ | 5,478 | | | $ | 5,887 | | | $ | 6,088 | | | $ | 6,554 | |
|
* This is a Non-GAAP based financial measure. ** Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | |
|
| | | | | |
Total deposits | | $ | 1,806,780 | | | $ | 1,921,382 | | | $ | 2,022,253 | | | $ | 2,094,236 | | | $ | 2,218,571 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Brokered time deposits | | | 13,307 | | | | 14,974 | | | | 46,838 | | | | 52,407 | | | | 122,124 | |
Other brokered deposits | | | 6,529 | | | | 78,236 | | | | 105,483 | | | | 105,392 | | | | 112,033 | |
| | | | | | | | | | | | | | | | | | | | |
Non-brokered deposits | | $ | 1,786,944 | | | $ | 1,828,172 | | | $ | 1,869,932 | | | $ | 1,936,437 | | | $ | 1,984,414 | |
| | | | | | | | | | | | | | | | | | | | |
Plus: | | | | | | | | | | | | | | | | | | | | |
Sweep repurchase agreements | | | 30,139 | | | | 31,482 | | | | 40,305 | | | | 30,636 | | | | 27,214 | |
| | | | | | | | | | | | | | | | | | | | |
Core funding | | $ | 1,817,083 | | | $ | 1,859,654 | | | $ | 1,910,237 | | | $ | 1,967,073 | | | $ | 2,011,628 | |
| | | | | | | | | | | | | | | | | | | | |
|
| 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) | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| | | Mar. 31 | | | Dec. 31 | | | Sep. 30 | | | Jun. 30 | | | Mar. 31 | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 0.89 | % | | | (8.96 | )% | | | (1.43 | )% | | | (0.43 | )% | | | 0.35 | % |
Return on average common equity (annualized) | | | 6.84 | | | | (79.48 | ) | | | (13.42 | ) | | | (5.11 | ) | | | 1.81 | |
Return on average tangible common equity (annualized)* | | | 7.03 | | | | (81.35 | ) | | | (13.72 | ) | | | (5.22 | ) | | | 1.85 | |
Net interest margin (annualized) | | | 3.83 | | | | 3.62 | | | | 3.77 | | | | 3.79 | | | | 3.78 | |
Effective tax rate | | | 37.50 | | | | 38.49 | | | | 35.23 | | | | 54.53 | | | | 38.40 | |
Efficiency ratio | | | 58.73 | | | | 164.47 | | | | 64.07 | | | | 52.40 | | | | 54.50 | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | |
Noncovered: | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 14,324 | | | $ | 13,506 | | | $ | 132,268 | | | $ | 151,135 | | | $ | 134,934 | |
90 days past due and accruing | | | 100 | | | | 43 | | | | 458 | | | | 43 | | | | 529 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans | | | 14,424 | | | | 13,549 | | | | 132,726 | | | | 151,178 | | | | 135,463 | |
Other real estate | | | 19,329 | | | | 19,844 | | | | 70,785 | | | | 38,956 | | | | 41,067 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 33,753 | | | $ | 33,393 | | | $ | 203,511 | | | $ | 190,134 | | | $ | 176,530 | |
| | | | | | | | | | | | | | | | | | | | |
Performing restructured | | $ | 1,700 | | | $ | 1,017 | | | $ | 1,026 | | | $ | 3,191 | | | $ | 2,166 | |
| | | | | | | | | | | | | | | | | | | | |
Potential problem loans | | $ | 126,320 | | | $ | 133,039 | | | $ | 276,694 | | | $ | 291,171 | | | $ | 217,406 | |
| | | | | | | | | | | | | | | | | | | | |
Covered: | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 7,015 | | | $ | 7,128 | | | $ | 7,065 | | | $ | 9,800 | | | $ | 9,809 | |
90 days past due and accruing | | | — | | | | — | | | | 610 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans | | | 7,015 | | | | 7,128 | | | | 7,675 | | | | 9,800 | | | | 9,809 | |
Other real estate | | | 4,694 | | | | 4,529 | | | | 5,350 | | | | 3,806 | | | | 4,016 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 11,709 | | | $ | 11,657 | | | $ | 13,025 | | | $ | 13,606 | | | $ | 13,825 | |
| | | | | | | | | | | | | | | | | | | | |
Potential problem loans | | $ | 553 | | | $ | 912 | | | $ | 2,015 | | | $ | 2,731 | | | $ | 3,444 | |
| | | | | | | | | | | | | | | | | | | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | |
Net loan charge-offs to average portfolio loans (annualized) | | | 0.32 | % | | | 19.78 | % | | | 2.70 | % | | | 4.76 | % | | | 2.25 | % |
Noncovered: | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to portfolio loans and other real estate | | | 2.12 | % | | | 1.96 | % | | | 9.86 | % | | | 8.66 | % | | | 7.74 | % |
Nonperforming loans to portfolio loans | | | 0.92 | | | | 0.80 | | | | 6.66 | | | | 7.01 | | | | 6.04 | |
Allowance for loan losses to portfolio loans | | | 2.87 | | | | 2.62 | | | | 3.25 | | | | 2.53 | | | | 2.73 | |
Allowance for loan losses to nonperforming loans | | | 312.14 | | | | 326.47 | | | | 48.75 | | | | 36.10 | | | | 45.24 | |
Covered: | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to portfolio loans and other real estate | | | 30.81 | % | | | 27.66 | % | | | 27.98 | % | | | 27.23 | % | | | 26.02 | % |
Nonperforming loans to portfolio loans | | | 21.06 | | | | 18.95 | | | | 18.62 | | | | 21.23 | | | | 19.97 | |
Allowance for loan losses to portfolio loans | | | 0.24 | | | | 1.64 | | | | — | | | | — | | | | — | |
Allowance for loan losses to nonperforming loans | | | 0.86 | | | | 6.33 | | | | — | | | | — | | | | — | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | |
Average total shareholders’ equity to average assets | | | 13.19 | % | | | 14.14 | % | | | 14.39 | % | | | 13.98 | % | | | 13.57 | % |
Leverage ratio | | | 16.20 | | | | 14.50 | | | | 16.47 | | | | 16.25 | | | | 15.95 | |
Tier 1 capital to risk-weighted assets | | | 21.21 | | | | 19.51 | | | | 19.54 | | | | 18.93 | | | | 18.49 | |
Total capital to risk-weighted assets | | | 22.49 | | | | 20.78 | | | | 20.81 | | | | 20.20 | | | | 19.77 | |
Tangible common equity to tangible assets*** | | | 10.42 | | | | 9.76 | | | | 11.38 | | | | 11.38 | | | | 10.99 | |
REGULATORY CAPITAL DATA | | | | | | | | | | | | | | | | | | | | |
Tier I capital | | $ | 378,949 | | | $ | 374,552 | | | $ | 433,628 | | | $ | 444,106 | | | $ | 447,803 | |
Total capital | | | 401,808 | | | | 398,945 | | | | 461,929 | | | | 473,950 | | | | 478,713 | |
Total risk adjusted assets | | | 1,786,282 | | | | 1,920,075 | | | | 2,219,271 | | | | 2,346,596 | | | | 2,421,752 | |
Average total assets | | | 2,339,784 | | | | 2,562,094 | | | | 2,633,000 | | | | 2,733,561 | | | | 2,807,518 | |
|
* This is a Non-GAAP based financial measure. | |
*** Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) | |
| | | | | |
Total shareholders’ equity | | $ | 311,643 | | | $ | 307,186 | | | $ | 367,024 | | | $ | 376,930 | | | $ | 379,350 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | |
Preferred stock | | | 68,644 | | | | 68,455 | | | | 68,268 | | | | 68,084 | | | | 67,902 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible common equity | | $ | 236,188 | | | $ | 231,920 | | | $ | 291,945 | | | $ | 302,035 | | | $ | 304,637 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,273,861 | | | $ | 2,382,873 | | | $ | 2,572,492 | | | $ | 2,660,495 | | | $ | 2,779,028 | |
Less goodwill | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | | | | 6,811 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 2,267,050 | | | $ | 2,376,062 | | | $ | 2,565,681 | | | $ | 2,653,684 | | | $ | 2,772,217 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible common equity to tangible assets | | | 10.42 | % | | | 9.76 | % | | | 11.38 | % | | | 11.38 | % | | | 10.99 | % |
|
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |
