Exhibit 99
[LOGO OMITTED]
SOUTHWEST BANCORP, INC.
REPORTS RECORD EARNINGS FOR THE FOURTH CONSECUTIVE QUARTER
CONTACT: RICK GREEN, PRESIDENT & C.E.O.
KERBY E. CROWELL, EXECUTIVE VICE PRESIDENT & C.F.O.
TELEPHONE: (405) 372-2230
RELEASE DATE: APRIL 17, 2003
April 17, 2003, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc.
(Nasdaq National Market--OKSB, OKSBO), financial holding company for Stillwater
National Bank & Trust Company, today announced record quarterly income of $3.5
million for the first quarter of 2003 - an increase of 14% over the first
quarter 2002.
2003 FIRST QUARTER RESULTS AND FOCUS:
o Total assets of $1.5 billion
o Portfolio loans of $1.2 billion, up 29% from March 31, 2002, and
up 12% from year-end 2002
o Compared to First Quarter 2002:
o Net Income: $3.5 million; up 14%
o Diluted earnings per share: $0.58; up 12%
o Book value per share: $17.02; up 13%
o Dividends per share: $0.125: up 14%
o Ratios
o Return on average equity of 14.59%
o GAAP-based efficiency ratio of 55.38%
STRATEGIC PERSPECTIVE
"Southwest Bancorp, Inc. ("Southwest") maintains an intense focus on
specific performance goals designed to increase shareholder value. These goals
include annual growth in diluted EPS and assets of 10% and geographic market
share growth and expansion," said Rick Green, President and Chief Executive
Officer. "In the first quarter of 2003, Southwest achieved net income of $3.5
million and increased earnings per share by 12% over the first quarter of last
year. This represents the fourth consecutive quarter of record earnings. At
quarter-end, Southwest's total assets were $1.5 billion."
"Our performance is primarily the result of substantial loan growth,
increases in net interest and noninterest income, and improved efficiency. We
are continuing to focus on increasing net interest income by prudent loan growth
coupled with careful management of interest margins and funding."
"During 2002, we made strategic moves into two important markets -
Dallas, Texas and Wichita, Kansas. These offices are capitalizing on our
strengths in serving medical, professional and small business customers. We were
pleased with our significant loan growth from these new markets, and expect
continued growth in both locations. Our traditional markets, particularly the
Oklahoma City and Tulsa divisions and our Student Lending division, also
contributed significantly to the overall loan growth in the quarter."
"During the first quarter of 2003, we established the Healthcare
Strategies Group, a consulting organization which assists the healthcare
industry with a focus on the needs of regional and community hospitals, surgery
centers, and specialty and medical group practices. The services offered by this
group of experienced and noted professionals are a natural complement to our
core health care services."
"Business Consulting Group, Inc., a subsidiary of the Company founded
in early 2002, is specifically focused on identifying alternatives for each
customer to enhance the performance of his or her own company. Its professional
staff has years of success in providing consulting services in the private and
public sectors."
ADDITIONAL FINANCIAL INFORMATION
Net income for the first quarter of 2003 was $3.5 million (up $435,000,
or 14.1%, from the first quarter of 2002), and marked Southwest's fourth
consecutive quarter of record earnings. Diluted earnings per share for the first
quarter of 2003 increased to $0.58, up 11.5% from the first quarter of 2002.
Net interest income was up 13.9% from the first quarter of last year.
Non-interest income for the quarter represented 21.6% of total revenues.
The provision for loan losses of $1.7 million increased $472,000, or
38%, over the 2002 first quarter. Noninterest expense of $8.9 million increased
$1.1 million, or 14%, primarily as a result of increases in compensation,
general and administrative, and occupancy expenses. The efficiency ratio of
55.38% represented an improvement of 159 basis points from the first quarter of
2002. Southwest's efficiency ratio is based directly on financial statement
amounts.
FINANCIAL CONDITION
At March 31, 2003, total assets were $1.5 billion, a $136.3 million
increase from the end of 2002 and a $266.9 million increase from March 31, 2002.
Total portfolio loans (loans other than those held for sale) at March 31, 2003
were $1.2 billion, up $129.8 million, or 11.9%, from year-end 2002 and up $273.8
million, or 28.9%, from March 31, 2002, primarily as a result of growth in
commercial and commercial real estate lending, as well as government guaranteed
student loans.
The allowance for loan losses of $13.2 million increased $1.3 million,
or 10.6%, from year-end 2002. Total nonperforming loans of $14.6 million
increased $1.7 million, or 13.5%, from year-end 2002, and represented 1.19% of
loans, compared to 1.17% of loans at year-end 2002. At March 31, 2003, $1.5
million, or 10.5%, of loans classified as nonperforming were guaranteed by
United States agencies or U.S. government sponsored entities. Management
believes the amount of the allowance is appropriate, given the systematic
methodology for calculating the allowance. That methodology is designed to
estimate inherent losses on total loans in the portfolio, including inherent
losses on nonperforming loans.
At March 31, 2003, regulatory capital ratios for Southwest and its
banking subsidiary, Stillwater National Bank and Trust Company, exceeded all
regulatory requirements for a well-capitalized institution.
SECURITIES
Southwest's common stock is traded on the Nasdaq National Market under
the symbol OKSB. Trust preferred securities of Southwest's subsidiary, SBI
Capital Trust, trade on the Nasdaq National market under the symbol OKSBO.
Market makers for Southwest's common stock include Stifel Nicolaus & Co., Dain
Rauscher Inc., Goldman Sachs & Co., Merrill Lynch, Schwab Capital Markets, Keefe
Bruyette & Woods Inc., FTN Financial Securities Corp., and Sandler O'Neill &
Partners.
OKLAHOMA'S OWN SOUTHWEST BANCORP, INC.
Southwest Bancorp, Inc. and the Stillwater National Bank and Trust
Company are independent, Oklahoma institutions, and are not controlled by out of
state organizations or individuals. Southwest has established and pursued a
strategy of independent operation for the benefit of all of its shareholders,
and has capitalized on its position as an Oklahoma owned and operated banking
organization to increase its banking business.
Southwest is the financial holding company for Stillwater National Bank
and Trust Company and Business Consulting Group, Inc. A substantial portion of
Southwest's current business and focus for the future are services for local
businesses, their primary employees, and other managers and professionals.
Southwest seeks to be the premier financial
company for its selected markets. Information regarding Southwest can be
retrieved via the Internet, at www.oksb.com. Southwest and Stillwater National
offer commercial and consumer lending, deposit, and investment services, and
specialized cash management, consulting and other financial services from
offices in Stillwater, Tulsa, Oklahoma City, and Chickasha, Oklahoma, and
Frisco, Texas; loan production offices in Wichita, Kansas and on the campuses of
the University of Oklahoma Health Sciences Center and Oklahoma State
University-Tulsa; a marketing presence in the Student Union at Oklahoma State
University-Stillwater; and on the Internet. Information regarding products and
services of Stillwater National, including SNB DirectBanker(R), its online
banking product, can be retrieved via the Internet, at www.banksnb.com.
Stillwater National's web site and online banking technology are frequently
updated in response to the changing needs of Stillwater National's large base of
Internet banking customers.
FORWARD-LOOKING STATEMENTS
This Press Release includes forward-looking statements, such as:
statements of Southwest's goals, intentions, and expectations; estimates of
risks and of future costs and benefits; assessments of problem loan payoffs and
potential loan losses; and statements of Southwest's ability to achieve
financial and other goals. These forward-looking statements are subject to
significant uncertainties because they are based upon: future interest rates and
other economic conditions; future laws and regulations; and a variety of other
matters. Because of these uncertainties, the actual future results may be
materially different from the results indicated by these forward-looking
statements. In addition, Southwest's past growth and performance do not
necessarily indicate its future results.
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
MARCH 31, DECEMBER 31,
2003 2002
----------- -----------
ASSETS:
Cash and cash equivalents $ 40,272 $ 34,847
Investment securities:
Held to maturity, fair value $27,030 (2003) and $32,000 (2002) 26,357 31,154
Available for sale, amortized cost $142,735 (2003) and $145,141 (2002) 145,207 148,476
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 10,861 9,059
Loans held for sale 9,408 10,638
Loans receivable, net of allowance for loan losses
of $13,152 (2003) and $11,888 (2002) 1,207,162 1,078,586
Federal funds sold 7,300 --
Accrued interest receivable 10,148 9,283
Premises and equipment, net 20,663 20,202
Other assets 8,671 7,523
----------- -----------
Total assets $ 1,486,049 $ 1,349,768
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand $ 145,790 $ 135,945
Interest-bearing demand 55,553 50,162
Money market accounts 282,941 258,712
Savings accounts 6,246 5,700
Time deposits of $100,000 or more 398,416 309,205
Other time deposits 262,686 262,033
----------- -----------
Total deposits 1,151,632 1,021,757
Accrued interest payable 3,914 4,486
Income tax payable 1,987 --
Other liabilities 3,305 2,858
Short-term borrowings 200,401 199,282
Long-term debt:
Guaranteed preferred beneficial interests in the Company's
subordinated debentures 25,013 25,013
----------- -----------
Total liabilities 1,386,252 1,253,396
Shareholders' equity:
Common stock - $1 par value; 20,000,000 shares authorized; 6,121,521
shares issued and outstanding 6,122 6,122
Capital surplus 12,397 12,317
Retained earnings 83,504 80,724
Accumulated other comprehensive income (loss) 1,485 2,201
Treasury stock, at cost; 258,660 (2003) and 348,142 (2002) shares (3,711) (4,992)
----------- -----------
Total shareholders' equity 99,797 96,372
----------- -----------
Total liabilities & shareholders' equity $ 1,486,049 $ 1,349,768
=========== ===========
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
For the three months
ended March 31,
2003 2002
------- -------
Interest income:
Interest and fees on loans $17,722 $15,980
Investment securities 2,073 2,976
Other interest-bearing assets 4 7
------- -------
Total interest income 19,799 18,963
Interest expense:
Interest-bearing deposits 5,327 6,044
Short-term borrowings 1,295 1,275
Long-term debt 582 582
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Total interest expense 7,204 7,901
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Net interest income 12,595 11,062
Provision for loan losses 1,722 1,250
Other income:
Service charges and fees 2,251 1,774
Other noninterest income 274 228
Gain on sales of loans receivable 937 644
Gain (loss) on sales of investment securities 2 2
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Total other income 3,464 2,648
Other expenses:
Salaries and employee benefits 4,312 3,802
Occupancy 1,922 1,717
FDIC and other insurance 78 72
Other real estate 161 22
General and administrative 2,421 2,198
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Total other expenses 8,894 7,811
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Income before taxes 5,443 4,649
Taxes on income 1,930 1,571
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Net income $ 3,513 $ 3,078
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SOUTHWEST BANCORP, INC.
AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands)
For the three months ended
March 31, 2003
--------------------------------------------------------
Interest
Average Income/ Average
Balance Expense Yield/Rate
---------------------------------------------------------
ASSETS:
Loans receivable $1,184,985 $ 17,722 6.07%
Investment securities 182,557 2,073 4.61
Other interest-earning assets 1,434 4 1.13
---------- ---------- ----
Total interest-earning assets 1,368,976 19,799 5.87
Noninterest-earning assets 53,508
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Total assets $1,422,484
==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing demand $ 54,226 $ 81 0.61%
Money market accounts 271,671 1,176 1.76
Savings accounts 6,147 4 0.26
Time deposits 612,908 4,066 2.69
---------- ---------- ----
Total interest-bearing deposits 944,952 5,327 2.29
Short-term borrowings 215,796 1,295 2.43
Long-term debt 25,013 582 9.30
---------- ----
Total interest-bearing liabilities 1,185,761 7,204 2.46
Noninterest-bearing demand 124,022
Other noninterest-bearing liabilities 15,074
Shareholders' equity 97,627
----------
Total liabilities and shareholders' equity $1,422,484
==========
Net interest income $ 12,595
==========
Interest rate spread 3.41%
====
Net interest margin (1) 3.73%
====
Ratio of average interest-earning assets
to average interest-bearing liabilities 115.45%
==========
Net interest income and margin
(tax-equivalent basis) (2) $ 12,765 3.78%
========== ====
(1) The net interest margin is equal to annualized net interest income divided
by average interest-earning assets.
(2) In order to make pretax income and resultant yields on tax-exempt
investments and loans comparable to those on taxable investments and In
order to make pretax income and resultant yields on tax-exempt investments
and loans comparable to those loans, a tax-equivalent adjustment is made
equally to interest income and income tax expense with no effect on after
tax income. The tax equivalent adjustment has been computed using a federal
income tax rate of 35%.
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
For the three months
ended March 31,
2003 2002
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PER COMMON SHARE DATA:
- --------------------------------------------------------------------------------------------------------------
Basic Earnings $ 0.60 $ 0.54
Diluted Earnings 0.58 0.52
Dividends declared 0.13 0.11
Book value (at period end) 17.02 15.10
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING\:
- --------------------------------------------------------------------------------------------------------------
Basic 5,827,499 5,702,426
Diluted 6,062,486 5,932,514
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KEY RATIOS:
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Return on average assets 1.00% 1.02%
Return on average total shareholders' equity 14.59% 14.52%
Efficiency ratio 55.38% 56.97%
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CAPITAL RATIOS AS OF PERIOD END:
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Leverage ratio 8.66% 8.94%
Tier I capital ratio 10.07% 11.12%
Total capital ratio 11.14% 12.26%
Tier I capital $ 123,176 $ 109,659
Total capital 136,328 120,886
Total risk adjusted assets 1,223,434 986,055
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LOAN COMPOSITION AS OF PERIOD END:
- --------------------------------------------------------------------------------------------------------------
Real estate mortgage:
Commercial $ 381,887 $ 327,351
One-to-four family residential 92,433 102,504
Real estate construction 183,855 98,907
Commercial 397,026 305,556
Installment and consumer:
Government-guaranteed student loans 150,213 95,110
Other 24,308 25,887
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Total loans, including loans held for sale $ 1,229,722 $ 955,315
Less: Allowance for loan losses (13,152) (11,227)
----------- -----------
Total loans, net $ 1,216,570 $ 944,088
=========== ===========
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS (CONTINUED)
(Dollars in thousands, except per share data)
For the three months
ended March 31,
2003 2002
- ----------------------------------------------------------------------------------------------------------------------
ASSET QUALITY AS OF PERIOD END:
- ----------------------------------------------------------------------------------------------------------------------
Nonaccrual loans (1) $ 11,990 $ 5,517
Restructured loans -- --
90 day past due and accruing (2) 2,657 1,748
-------- --------
Total nonperforming loans (3) $ 14,647 $ 7,265
======== ========
Other real estate owned $ 585 $ 768
Allowance for loan losses as a percentage of total loans 1.07% 1.18%
Allowance for loan losses as a percentage of nonperforming loans 89.79% 154.54%
Nonperforming loans as a percentage of total loans 1.19% 0.76%
Nonperforming assets as a percentage of total loans and other real estate 1.24% 0.84%
Total charge-offs $ 649 $ 1,604
Total recoveries 191 89
-------- --------
Net charge-offs $ 458 $ 1,515
======== ========
Net charge-offs (annualized) as a percentage of average loans 0.16% 0.64%
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OTHER MISCELLANEOUS INFORMATION AS OF PERIOD END:
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Goodwill $ 194 $ 194
Mortgage Servicing Rights 957 572
Non-mortgage Servicing Rights 109 95
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Total Intangible Assets $ 1,260 $ 861
======== ========
1-4 family mortgage loans serviced for others $112,328 $ 93,995
Intangible amortization expense 67 46
FTE employees (at period end) 323 310
Number of ATMs 328 266
Number of branches 7 6
(1) The government-guaranteed portion of loans included in these totals are
$1.4 million (2003) and $986,000 (2002).
(2) The government-guaranteed portion of loans included in these totals are
$96,000 (2003) and $179,000 (2002).
(3) The government-guaranteed portion of loans included in these totals are
$1.5 million (2003) and $1.2 million (2002).