EXHIBIT 99
[SOUTHWEST
BANCORP, INC. LOGO]
SOUTHWEST BANCORP, INC. REPORTS EARNINGS
CONTACT: RICK GREEN, PRESIDENT & C.E.O.
KERBY E. CROWELL, EXECUTIVE VICE PRESIDENT & C.F.O.
TELEPHONE: (405) 372-2230
RELEASE DATE: OCTOBER 25, 2005
October 25, 2005, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc.
(Nasdaq National Market--OKSB), ("Southwest"), today reported net income for the
third quarter of 2005 of $5.8 million, a 20% increase from the $4.9 million
reported for the third quarter of 2004. Diluted earnings per share were $0.41
compared to $0.38 per share for the 2004 period, an increase of 8%. Net Income
for the first nine months of 2005 was $16.4 million, a 20% increase from the
$13.7 million reported for the first nine months of 2004. Diluted earnings per
share were $1.24 compared to $1.09 per share for the 2004 period, an increase of
14%. Earnings per share growth reflect the effects of the Company's second
quarter 2005 public offering.
Southwest Bancorp is the financial holding company for Stillwater
National Bank and Trust Company ("Stillwater National"), SNB Bank of Wichita
("SNB Wichita"), Healthcare Strategic Support, Inc., and Business Consulting
Group, Inc. Through its subsidiaries, Southwest offers commercial and consumer
lending, deposit, and investment services, and specialized cash management,
consulting, and other financial services from offices in Oklahoma City,
Stillwater, Tulsa, and Chickasha, Oklahoma; Austin, Dallas and San Antonio,
Texas; and Kansas City and Wichita, Kansas and on the Internet, through SNB
DirectBanker(R).
FIRST NINE MONTHS 2005 EARNINGS AND RETURNS
o Net income, year-to-date: $16.4 million; a 20% increase from the first nine months of 2004
o Net income, for third quarter: $5.8 million; a 20% increase from third quarter 2004
o Diluted earnings per share, year-to-date: $1.24; a 14% increase from the first nine months of 2004
o Diluted earnings per share, for third quarter: $0.41; an 8% increase from third quarter 2004
o Dividends per share, for third quarter: $0.075; a 7% increase from third quarter 2004
o Return on average equity: 15.03% for the first nine months of 2005
13.81% for the third quarter 2005
o Net interest margin*: 4.32% for the first nine months of 2005
4.25% for the third quarter 2005
o GAAP-based efficiency ratio: 50.95% for the first nine months of 2005
48.97% for the third quarter 2005
* Tax equivalent basis. Please see accompanying table of average balances,
rates, and yields.
Page 1 of 13
Rick Green, President and Chief Executive Officer, stated, "Southwest's
earnings growth for the first nine months of 2005 is primarily the result of
improved yields on portfolio loans, loan growth, our focus on careful management
of interest margins and funding, and increased other noninterest income. Our
revenue growth was more than sufficient to overcome increases in operating
expenses, a softening in the rate of portfolio loan growth, and a significant
increase in the provision for loan losses. (See the additional discussion of the
provision for loan losses and problem assets below.)
STRATEGIC PERSPECTIVE
"At Southwest, we focus on converting our strategic vision into
long-term shareholder value. This vision includes long term goals for increasing
our earnings and banking assets from our operations in Oklahoma, Texas, and
Kansas that specialize in serving medical, professional, business and commercial
real estate customers and from our more traditional, banking operations,
including community banking and student lending, Rick Green continued. Southwest
now serves over 2,000 practicing physicians and dentists in seven states, with
concentrations in the Southwest and Midwest.
"In the third quarter, Stillwater National rolled out its new website
at www.banksnb.com. This site showcases our strategic focus through its home
page, which opens with the choice of three portals: healthcare financial
services, business financial services, and personal financial services. It also
provides direct, easy and secure customer access to commercial and personal
online banking, cash management and document imaging services.
"Our strategic growth goals include growth from existing and additional
offices in carefully selected markets in Texas and other states with
concentrations of healthcare and health professionals, businesses, and their
managers and owners, and commercial and commercial real estate borrowers.
At September 30, 2005, Southwest's five Texas and two Kansas offices
accounted for $463.8 million in loans, or 35% of our total portfolio loans. We
plan to open two to four additional offices in Texas, including one or more in
the greater Houston area, in the months ahead. The timing of new office openings
in these targeted markets depends primarily on executive staffing, and to a
lesser extent on premises selection.
During fiscal year 2004, Southwest was one of the top 40 student
lenders in the nation by dollar volume. Although September 30, 2005 student
lending volumes were up 8% from year-end 2004, they declined slightly from June
30, 2005 as a result of loan sales. As we previously reported, yields on private
student loans have decreased during 2005. However, student lending remains an
important and profitable part of our business. In the first nine months,
Southwest originated $627.9 million in student loans for sale, an increase of
$141.8 million over the same period in 2004, and received sales proceeds on
student loans of $603.8 million, up $246.3 million.
Page 2 of 13
Mr Green stated, "We also are dedicated to our consumer banking
operations, and may establish or acquire additional community banking offices in
selected markets. We do not have any agreements to make any acquisitions of
other banking offices at this time."
ADDITIONAL FINANCIAL INFORMATION FOR THE FIRST NINE MONTHS OF 2005
Net income for the first nine months of 2005 was $16.4 million, up $2.8
million, or 20%, from the same period in 2004. Basic earnings per share for 2005
were $1.27, up 12% from $1.13 in 2004. Diluted earnings per share of $1.24
increased 14% over 2004.
Net interest income increased $11.7 million, or 23% from the first nine
months of 2004, mainly as a result of increased portfolio loan yields and loan
volume, offset in part by increased cost of funds on all categories of interest
bearing liabilities other than interest bearing demand deposits, and increased
levels of interest bearing deposits. Noninterest income for the first nine
months of 2005 increased $2.2 million from the $10.3 million reported for the
same period in 2004 due primarily to an $843,000 increase in service charges and
fees on deposit accounts, a $716,000 increase in gain on sales of student loans
and other loans held for sale and a $499,000 increase in other noninterest
income.
The provision for loan losses of $11.4 million increased $3.3 million,
or 41%, from 2004. Noninterest expense of $38.7 million increased $6.3 million,
or 19%, from the $32.4 million reported for the first nine months of 2004,
primarily as a result of a $2.8 million increase in salaries and employee
benefits, a $2.4 million increase in general and administrative expense (which
included the $970,000 write-off associated with the redemption of trust
preferred securities and a $438,000 provision for unfunded loan commitments), a
$663,000 increase in other real estate expense, and a $392,000 increase in
occupancy expense. The increase in other real estate expense occurred due to
efforts to continue operations of certain acquired properties until such time as
they can be sold and to prepare other properties for sale.
ADDITIONAL FINANCIAL INFORMATION FOR THE THIRD QUARTER OF 2005
Net income for the third quarter of 2005 was $5.8 million, up $952,000,
or 20%, from the same period in 2004. Basic earnings per share for 2005 were
$0.41, up 3% from $0.40 in 2004. Diluted earnings per share of $0.41 increased
8% over 2004. Earnings per share calculations reflect the currently dilutive
effect of additional shares issued in Southwest's second quarter 2005 offering,
net of shares repurchased.
Net interest income increased $2.4 million, or 13% from the third
quarter of 2004. Noninterest income for the third quarter of 2005 increased
$671,000 from the $3.9 million reported for the same period in 2004 due
primarily to a $265,000 increase in service charges and fees on deposit
accounts. Noninterest income also benefited from a $260,000 increase in gain on
sales of loans receivable.
Page 3 of 13
The provision for loan losses of $4.1 million increased $242,000, or
6%, from 2004. Noninterest expense of $12.7 million increased $1.5 million, or
13%, from the $11.2 million reported for the third quarter of 2004, primarily as
a result of a $610,000 increase in salaries and employee benefits, a $496,000
increase in general and administrative expense (which included a $31,000
provision for unfunded loan commitments), a $204,000 increase in occupancy
expense, and a $164,000 increase in other real estate expense.
ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR UNFUNDED LOAN COMMITMENTS
At the beginning of 2005, Southwest established a reserve for
unfunded loan commitments as a liability on Southwest's statement of financial
condition. The reserve formerly was presented within the allowance for loan
losses. At September 30, 2005, this reserve for unfunded loan commitments was
$1.4 million, an increase of 46% from the amount previously included in the
allowance for loan losses at December 31, 2004. The amounts of the allowance for
loan losses and other financial information for December 31, 2004 and September
30, 2004 presented in this release also reflect the reclassification of the
reserve for unfunded loan commitments from the allowance for loan losses to a
separate liability account and the provision for unfunded loan commitments from
the provision for loan losses to general and administrative expense.
At September 30, 2005, the allowance for loan losses was $21.9 million,
an increase of $2.9 million, or 15%, from the allowance for loan losses at
year-end 2004. At September 30, 2005, the allowance for loan losses was 1.29% of
total loans, compared to 1.17% at year-end 2004. Management believes the amount
of the allowance is appropriate, given its systematic methodology for
calculating the allowance. Changes in the allowance resulted from the
application of that methodology, which is designed to estimate inherent losses
on total loans in the portfolio, including those on nonperforming loans. During
the third quarter of 2005, the allowance increased by $1.1 million, or 5%. The
quarterly increase in the allowance was due mainly to an increase in the
allowance on impaired loans, net of a decrease in the allowance applicable to
other problem and potential problem loans, and allowances allocable to
performing loans due to growth and changes in historical loss ratios. At
September 30, 2005, the unallocated portion of the allowance was approximately
$3.7 million.
NONPERFORMING ASSETS
Nonaccrual loans totaled $23.1 million at September 30, 2005 compared
to $22.2 million at December 31, 2004 and $28.5 million at September 30, 2004.
Total nonperforming loans of $28.0 million increased $4.8 million, or 21%, from
year-end 2004, and represented 1.64% of total loans, compared to 1.43% of total
loans at year-end 2004. At September 30, 2005, $1.6 million, or 6%, of loans
classified as nonperforming were guaranteed by United States agencies or U.S.
government sponsored entities.
Page 4 of 13
Mr. Green said, "Much of our business is commercial lending. As a
result, weakness in one or a few large credits can have a significant impact on
our nonperforming loan totals. Through the years, however, we have demonstrated
the ability to resolve problem commercial loans. Total nonperforming loans were
$30.8 million at September 30, 2004. They were reduced to $23.2 million at
December 31, 2004, $13.9 million at March 31, 2005, and $11.4 million at June
30, 2005."
Other real estate at September 30, 2005, was $9.6 million, an increase
of $4.7 million from year-end 2004, but a reduction of $2.3 million from March
31, 2005, and a reduction of $151,000 from June 30, 2005. Total nonperforming
assets at September 30, 2005, were $37.6 million, an increase of $9.5 million,
or 34%, from year-end 2004, and an increase of $4.3 million, or 13%, from
September 30, 2004.
FINANCIAL CONDITION
At September 30, 2005, total assets were $2.1 billion, a $193.5 million
increase from the end of 2004. Cash and cash equivalents increased from $24.1
million at year-end 2004 to $87.4 million at the end of third quarter 2005, due
primarily to proceeds of student loan sales received just prior to quarter-end,
but also as a result of a softening in portfolio loan growth due in part to
price competition and payoffs of several large loans. Total portfolio loans
(loans other than those held for sale) at September 30, 2005 were $1.3 billion,
up $49.9 million, or 4%, from year-end 2004. During the first nine months of
2004, total portfolio loans increased $167.8 million, or 15%. Loans held for
sale, which are primarily guaranteed student loans, grew by $27.0 million during
the first nine months of 2005 after increasing $130.5 million, or 60%, during
the first nine months of 2004. Shareholders' equity at September 30, 2005
totaled $166.5 million, a $40.5 million, or 32%, increase from December 31,
2004. The increase was the result of net proceeds of the common stock offering
and earnings offset in part by cash dividends and a $12.1 million purchase of
shares of common stock from a former director, announced in May 2005.
SECURITIES
Southwest's common stock is traded on the NASDAQ National Market under
the symbol OKSB. In June, Southwest completed an offering of 2.4 million shares
of common stock resulting in net proceeds after underwriting discounts and
offering expenses of approximately $39.5 million. Stifel Nicolaus & Co., Edward
Jones & Co., Friedman Billings Ramsey, Keefe Bruyette & Woods, Inc. and SunTrust
Robinson Humphrey served as the underwriters in the offering. Market makers for
Southwest's common stock include Stifel Nicolaus & Co., Goldman Sachs & Co.,
Keefe Bruyette & Woods Inc., RBC Capital Markets Corp., UBS Securities L.L.C.,
Morgan Stanley & Co., Inc., FTN Midwest Securities Corp., Citigroup Global
Markets, Inc., Lehman Brothers, Inc., SunTrust Capital Markets, Inc., and
Friedman Billings Ramsey & Co.
Page 5 of 13
SOUTHWEST BANCORP AND SUBSIDIARIES
Through its subsidiaries, Southwest offers commercial and consumer
lending, deposit, and investment services, and specialized cash management,
consulting, and other financial services from twelve full-service offices in
Stillwater, Oklahoma City, Tulsa and Chickasha, Oklahoma; Dallas, Austin, and
San Antonio, Texas; and Wichita, Kansas; loan production offices in Kansas City,
Kansas, and on the campuses of the University of Oklahoma Health Sciences Center
and Oklahoma State University-Tulsa; and on the Internet, through SNB
DirectBanker(R).
Southwest was organized in 1981 as the holding company for Stillwater
National, which was chartered in 1894. At September 30, 2005, Southwest had
total assets of $2.1 billion, deposits of $1.7 billion, and shareholders' equity
of $166.5 million. Southwest became a public company in late 1993 with assets of
approximately $434.0 million. Southwest's growth to date has been accomplished
without banking acquisitions, however acquisitions of other financial
institutions and other companies have been considered from time to time, and
will be considered in the future, although there are no specific agreements or
understandings for any such acquisitions at the present time.
Southwest's banking philosophy is to provide a high level of customer
service, a wide range of financial services, and products responsive to customer
needs with a focus on serving healthcare and health professionals, businesses
and their managers and owners, and commercial and commercial real estate
borrowers.
Southwest's banking philosophy has led to the development of a line of
deposit, lending, and other financial products that respond to professional and
commercial customer needs for speed, efficiency, and information, and complement
more traditional banking products. Such specialized financial services include
integrated document imaging and cash management services designed to help our
customers in the healthcare industry and other record-intensive enterprises
operate more efficiently.
Southwest seeks to build close relationships with businesses,
professionals and their principals and to service their banking needs throughout
their business development and professional lives.
Southwest's two management consulting subsidiaries complement its
banking services and help differentiate Southwest from competitors. Healthcare
Strategic Support, Inc. provides management consulting services for physicians,
hospitals, and healthcare groups. Business Consulting Group, Inc. provides
marketing, strategic, logistics, and operations consulting for both small and
large commercial enterprises.
Page 6 of 13
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 the amount and timing of
problem loan payoffs and loan losses; off-balance sheet risk and market risk;
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, market behavior, 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.
Page 7 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
- ---------------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, DECEMBER 31,
(Dollars in thousands, except per share data) 2005 2004
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 38,881 $ 24,097
Federal funds sold 48,500 -
- ---------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents 87,381 24,097
Investment securities:
Held to maturity, fair value $1,214 (2005) and $2,509 (2004) 1,223 2,495
Available for sale, amortized cost $257,646 (2005) and $205,393 (2004) 253,069 204,092
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 13,920 13,464
Loans held for sale 381,597 354,557
Loans receivable, net of allowance for loan losses
of $21,920 (2005) and $18,991 (2004) 1,297,302 1,250,327
Accrued interest receivable 14,476 15,091
Premises and equipment, net 20,492 19,860
Other real estate 9,610 4,937
Other assets 28,184 24,867
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets $2,107,254 $1,913,787
=================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 229,462 $ 183,738
Interest-bearing demand 49,927 57,359
Money market accounts 410,789 379,818
Savings accounts 8,789 8,108
Time deposits of $100,000 or more 640,503 609,670
Other time deposits 345,435 261,365
- ---------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,684,905 1,500,058
Accrued interest payable 8,086 4,911
Income tax payable 1,595 2,266
Other borrowings 190,571 200,065
Other liabilities 7,846 7,370
Reserve for unfunded loan commitments 1,391 953
Subordinated debentures 46,393 72,180
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,940,787 1,787,803
SHAREHOLDERS' EQUITY:
Common stock - $1 par value; 20,000,000 shares authorized;
14,658,042 (2005) and 12,243,042 (2004) shares issued and outstanding 14,658 12,243
Paid in capital 45,724 7,993
Retained earnings 121,342 107,905
Accumulated other comprehensive loss (2,803) (797)
Treasury stock, at cost; 693,364 (2005) and 138,189 (2004) shares (12,454) (1,360)
- ---------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 166,467 125,984
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities & shareholders' equity $2,107,254 $1,913,787
=================================================================================================================================
Page 8 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
For the three months For the nine months
ended September 30, ended September 30,
(Dollars in thousands) 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans $32,429 $25,245 $93,457 $68,468
Investment securities 2,488 1,960 6,613 5,915
Other interest-bearing assets 31 4 69 7
- ----------------------------------------------------------------------------------------------------------------------------------
Total interest income 34,948 27,209 100,139 74,390
INTEREST EXPENSE:
Interest-bearing deposits 10,850 5,460 28,455 15,258
Other borrowings 1,904 1,643 5,026 4,183
Subordinated debentures 801 1,136 3,281 3,296
- ----------------------------------------------------------------------------------------------------------------------------------
Total interest expense 13,555 8,239 36,762 22,737
- ----------------------------------------------------------------------------------------------------------------------------------
Net interest income 21,393 18,970 63,377 51,653
Provision for loan losses 4,142 3,900 11,437 8,100
OTHER INCOME:
Service charges and fees 2,894 2,629 8,157 7,314
Gain on sales of loans receivable 1,333 1,073 3,102 2,386
Gain (loss) on sales of investment securities - (110) - (109)
Other noninterest income 364 328 1,230 731
- ----------------------------------------------------------------------------------------------------------------------------------
Total other income 4,591 3,920 12,489 10,322
OTHER EXPENSE:
Salaries and employee benefits 6,173 5,563 18,724 15,893
Occupancy 2,704 2,500 7,388 6,996
FDIC and other insurance 124 110 360 301
Other real estate 230 66 770 107
General and administrative 3,494 2,998 11,411 9,054
- ----------------------------------------------------------------------------------------------------------------------------------
Total other expenses 12,725 11,237 38,653 32,351
- ----------------------------------------------------------------------------------------------------------------------------------
Income before taxes 9,117 7,753 25,776 21,524
Taxes on income 3,310 2,898 9,354 7,863
- ----------------------------------------------------------------------------------------------------------------------------------
Net income $ 5,807 $ 4,855 $16,422 $13,661
==================================================================================================================================
Page 9 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS AND RATES
- ---------------------------------------------------------------------------------------------------------------------------
For the three months ended
(Dollars in thousands) September 30, 2005
- ---------------------------------------------------------------------------------------------------------------------------
Interest
Average Income/ Average
Balance Expense Yield/Rate
-----------------------------------------------
ASSETS
Total loans and leases $1,732,734 $32,429 7.43%
Investment securities 263,868 2,488 3.74
Other interest-earning assets 3,535 31 3.48
- ---------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 2,000,137 34,948 6.93
Other assets 93,258
- ---------------------------------------------------------------------------------------------
Total assets $2,093,395
=============================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand deposits $ 53,187 $ 57 0.43%
Money market accounts 395,668 2,914 2.92
Savings accounts 8,513 6 0.28
Time deposits 977,272 7,873 3.20
- ---------------------------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 1,434,640 10,850 3.00
Other borrowings 209,475 1,904 3.61
Subordinated debentures 46,393 801 6.76
- ---------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,690,508 13,555 3.18
----------------------------
Noninterest-bearing demand deposits 217,812
Other liabilities 18,239
Shareholders' equity 166,836
- ---------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $2,093,395
=============================================================================================
Net interest income $21,393
===========================================================================================================================
Interest rate spread 3.75%
===========================================================================================================================
Net interest margin (1) 4.24%
===========================================================================================================================
Ratio of average interest-earning assets
to average interest-bearing liabilities 118.32%
=============================================================================================
Net interest income and margin
(tax-equivalent basis) (2) $21,424 4.25%
===========================================================================================================================
(1) Net interest margin = annualized net interest income / 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
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%.
Page 10 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS AND RATES
- -------------------------------------------------------------------------------------------------------------------------
For the nine months ended
(Dollars in thousands) September 30, 2005
- -------------------------------------------------------------------------------------------------------------------------
Interest
Average Income/ Average
Balance Expense Yield/Rate
---------------------------------------------
ASSETS
Total loans and leases $1,724,208 $93,457 7.25%
Investment securities 237,543 6,613 3.72
Other interest-earning assets 3,165 69 2.91
- -------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 1,964,916 100,139 6.81
Other assets 90,535
- ---------------------------------------------------------------------------------------------
Total assets $2,055,451
=============================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand deposits $ 61,334 $ 222 0.48%
Money market accounts 384,637 7,201 2.50
Savings accounts 8,525 16 0.25
Time deposits 973,103 21,016 2.89
- -------------------------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 1,427,599 28,455 2.66
Other borrowings 201,512 5,026 3.33
Subordinated debentures 62,828 3,281 6.89
- -------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,691,939 36,762 2.90
--------------------------
Noninterest-bearing demand deposits 200,875
Other liabilities 16,516
Shareholders' equity 146,121
- ---------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $2,055,451
=============================================================================================
Net interest income $63,377
============================================================================================================
Interest rate spread 3.91%
=========================================================================================================================
Net interest margin (1) 4.31%
=========================================================================================================================
Ratio of average interest-earning assets
to average interest-bearing liabilities 116.13%
=============================================================================================
Net interest income and margin
(tax-equivalent basis) (2) $63,497 4.32%
=========================================================================================================================
(1) Net interest margin = annualized net interest income / 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
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%.
Page 11 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------------
For the three months For the nine months
ended September 30, ended September 30,
(Dollars in thousands, except per share data) 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Earnings $ 0.41 $ 0.40 $ 1.27 $ 1.13
Diluted Earnings 0.41 0.38 1.24 1.09
Book value (at period end) 11.92 10.11 11.92 10.11
Dividends declared 0.075 0.07 0.225 0.21
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
- ----------------------------------------------------------------------------------------------------------------------------------
Basic 13,944,877 12,081,379 12,884,058 12,050,485
Diluted 14,359,808 12,547,962 13,285,971 12,505,493
- ----------------------------------------------------------------------------------------------------------------------------------
KEY RATIOS:
- ----------------------------------------------------------------------------------------------------------------------------------
Return on average assets 1.10% 1.04% 1.07% 1.04%
Return on average total shareholders' equity 13.81% 16.19% 15.03% 15.73%
Efficiency ratio 48.97% 49.09% 50.95% 52.20%
- ----------------------------------------------------------------------------------------------------------------------------------
LOAN COMPOSITION AT PERIOD END:
- ----------------------------------------------------------------------------------------------------------------------------------
Real estate mortgage:
Commercial $ 543,937 $ 522,812
One-to-four family residential 93,860 87,296
Real estate construction 277,722 244,023
Commercial 381,584 386,325
Installment and consumer:
Guaranteed student loans 375,178 341,335
Other 28,538 25,312
----------------- -----------------
Total loans, including loans held for sale $1,700,819 $1,607,103
Less: Allowance for loan losses (21,920) (19,209)
----------------- -----------------
Total loans, net $1,678,899 $1,587,894
================= =================
Page 12 of 13
SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
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September 30, December 31, September 30,
(Dollars in thousands, except per share data) 2005 2004 2004
- ---------------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY AT PERIOD END:
- ---------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans (1) $23,141 $22,230 $28,476
Restructured loans - - -
90 day past due and accruing (2) 4,812 929 2,276
----------------- ----------------- -----------------
Total nonperforming loans (3) $27,953 $23,159 $30,752
================= ================= =================
Other real estate owned $ 9,610 $ 4,937 $ 2,467
Allowance for loan losses as a percentage of total loans 1.29% 1.17% 1.20%
Allowance for loan losses as a percentage of nonperforming
loans 78.42% 82.00% 62.46%
Nonperforming loans as a percentage of total loans 1.64% 1.43% 1.91%
Nonperforming assets as a percentage of total loans and other
real estate 2.20% 1.72% 2.06%
Total charge-offs $ 9,355 $10,034 $ 4,441
Total recoveries 847 1,148 414
----------------- ----------------- -----------------
Net charge-offs $ 8,508 $ 8,886 $ 4,027
================= ================= =================
Net charge-offs as a percentage of average loans 0.66% 0.58% 0.36%
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL RATIOS AT PERIOD END:
- ---------------------------------------------------------------------------------------------------------------------------------
Leverage ratio 10.23% 8.61% 8.75%
Tier I capital ratio 12.80% 10.88% 10.68%
Total capital ratio 14.05% 13.92% 13.85%
Tier I capital $ 214,089 $ 168,847 $ 163,041
Total capital 235,037 216,038 211,358
Total risk adjusted assets 1,672,180 1,552,326 1,526,214
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER MISCELLANEOUS INFORMATION AT PERIOD END:
- ---------------------------------------------------------------------------------------------------------------------------------
Goodwill $ 194 $ 194 $ 194
Mortgage Servicing Rights 1,311 1,213 1,188
Non-mortgage Servicing Rights 63 76 83
----------------- ----------------- -----------------
Total Intangible Assets $ 1,568 $ 1,483 $ 1,465
================= ================= =================
1-4 family mortgage loans serviced for others $ 133,035 $ 125,353 $ 124,183
Intangible amortization expense 284 327 239
FTE employees 371 355 360
Number of ATMs 292 289 286
Number of branches (4) 13 11 9
Number of loan production offices 3 5 3
(1) The government-guaranteed portion of loans included in these totals were
$1.5 million, $1.4 million, and $1.4 million, respectively.
(2) The government-guaranteed portion of loans included in these totals were
$89,000, $38,000, and zero, respectively.
(3) The government-guaranteed portion of loans included in these totals were
$1.6 million, $1.5 million, and $1.4 million, respectively.
(4) Includes branches for which regulatory approval has been received, but
which were not accepting deposits at September 30, 2005.
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