STILLWATER, Okla., Oct. 20, 2010 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB), ("Southwest"), today reported net income available to common shareholders of $2.8 million, or $0.15 per diluted share for the third quarter of 2010, compared to $1.1 million, or $0.07 per diluted share for the third quarter of 2009, and $3.4 million, or $0.19 per diluted share for the second quarter of 2010. Net income available to common shareholders for the nine months ended September 30, 2010 was $9.5 million, or $0.55 per diluted share, compared to $6.3 million, or $0.43 per diluted share, for the nine months ended September 30, 2009.
Rick Green, Southwest Bancorp's President and Chief Executive Officer, stated, "We are pleased with our solid performance this quarter. Earnings for the third quarter were based on stable net interest income and controlled noninterest expenses. We increased our allowance for loan losses by $5.4 million in the third quarter after recording $6.6 million in net charge offs. Our annualized quarterly ratio of net loan charge-offs to portfolio loans remained at approximately 1.00%.
The Board of Directors and management are dedicated to the resolution of problem credits, the maintenance of capital and liquidity, stability in net interest income, and control of operating expenses. We continue to manage our loan portfolio through this difficult credit climate with our ongoing, disciplined workout process focused on addressing the challenges of the commercial real estate construction and commercial mortgage sectors. We are encouraged that the state economic factors for our principal markets in Oklahoma, Texas, and Kansas continue to outperform most of the nation. We continue to make loans in each of our markets with an emphasis on health care lending and carefully controlled real estate collateralized credits.
We maintain a solid capital base. Our second quarter common stock offering gave us $54.3 million in new common equity. Southwest and its banking subsidiaries have maintained capital levels that substantially exceed the minimums for regulatory "well-capitalized" status. At September 30, 2010 Southwest's total regulatory capital was $475.0 million for a total risk-based capital ratio of 18.45%, and Tier 1 capital was $442.2 million for a Tier 1 risk-based capital ratio of 17.17%."
Please review the following discussion and the attached financial tables for important additional information regarding our financial condition and performance.
Financial Overview
Condition: Total assets were $2.9 billion at September 30, 2010, a decrease of 7% from December 31, 2009. At September 30, 2010 total loans were $2.5 billion, a decrease of 6% from December 31, 2009.
At September 30, 2010 the allowance for loan losses was $72.4 million, up 25% from September 30, 2009 and 16% from year-end 2009, and represented 3.00% of noncovered portfolio loans versus 2.25% and 2.46% at September 30, 2009 and December 31, 2009, respectively. The methodology used to determine the appropriate amount of the allowance for loan losses at a particular time includes consideration of risk factors related to Southwest and to our markets including regular assessments of national and local economic conditions and trends. Provisions for loan losses are recorded in the amount necessary to maintain the allowance at the level management deems appropriate.
Excluding assets subject to loss sharing agreements with the FDIC ("covered assets"), nonperforming assets increased to $171.4 million and 7.00% of portfolio loans and other real estate as of September 30, 2010 from $139.8 million and 5.59% of portfolio loans and other real estate as of June 30, 2010 and from $124.6 million and 4.87% of portfolio loans and other real estate as of December 31, 2009. A breakdown of noncovered portfolio loans and noncovered nonperforming assets by type is shown in the following table:
| (dollars in thousands) |
Noncovered portfolio loans |
Noncovered nonperforming assets |
| Real estate construction | $ 558,300 | $ 88,590 |
| Commercial real estate | 1,251,563 | 34,448 |
| Commercial | 462,286 | 6,180 |
| Residential real estate mortgages | 101,633 | 6,401 |
| Other consumer loans | 39,014 | 42 |
| Other real estate | -- | 35,723 |
| Total | $ 2,412,796 | $ 171,384 |
Excluding covered loans, nonaccrual loans were $135.2 million as of September 30, 2010, an increase of $23.3 million, or 21%, from June 30, 2010, and $29.3 million, or 28%, from December 31, 2009. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due were $0.5 million as of September 30, 2010. These loans are deemed to have sufficient collateral and are in the process of collection.
Excluding covered loans, performing loans considered potential problem loans, which are not included in the past due or nonaccrual categories but for which known information about possible credit problems cause management to be uncertain as to the continued ability of the borrowers to comply with the present loan repayment terms in future periods, amounted to $236.8 million at September 30, 2010, a decrease of $5.4 million from June 30, 2010 and $21.6 million from December 31, 2009. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.
Year-to-date Results:
Summary: The $3.2 million increase in our net income available to common shareholders from 2009 is the result of a $9.5 million increase in net interest income driven by an improved net interest margin and a $0.2 million decrease in the provision for loan losses, offset in part by a $3.0 million decrease in noninterest income, a $2.0 million increase in noninterest expense, and a $1.5 million increase in income tax expense.
Net Interest Income: Net interest income totaled $80.4 million for the first nine months of 2010, compared to $70.9 million for the first nine months of 2009, an increase of $9.5 million, or 13%. Year-to-date net interest margin was 3.63%, compared to 3.27% for the same period in 2009. Included in 2010 year-to-date net interest income is $0.5 million of net recoveries from the resolution of nonperforming loans and additional discount accretion on loans and the loss share receivable, offset in part by interest reversals on nonaccrual loans. Included in 2009 year-to-date net interest income is a recovery of $1.9 million in interest from the successful resolution of a nonperforming loan. These net recoveries increased year-to-date interest margin by 3 basis points and 9 basis points for 2010 and 2009, respectively.
Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $28.3 million for the first nine months of 2010, compared to $28.5 million for the first nine months of 2009. Noncovered net charge offs totaled $18.3 million, or 0.98% (annualized) of average noncovered portfolio loans year-to-date as of September 30, 2010, compared to $10.5 million, or 0.54% (annualized) of average noncovered portfolio loans for the same period in the prior year.
Noninterest Income: Noninterest income totaled $14.5 million for the first nine months of 2010, compared to $17.4 million for the first nine months of 2009. The decrease in noninterest income was primarily the result of a $3.3 million gain on the FDIC-assisted acquisition that was recorded in the prior year.
Noninterest Expense: Noninterest expense totaled $46.8 million for the first nine months of 2010, compared to $44.8 million for the first nine months of 2009. The increase consists of a $1.6 million increase in other general and administrative expense, a $0.9 million increase in other real estate expense, and a $0.5 million increase in personnel expense, offset in part by a $0.9 million decrease in provision for unfunded loan commitments.
Third Quarter Results:
Summary: Net income available to common shareholders was $2.8 million in the third quarter of 2010, compared to $1.1 million in the third quarter of 2009 and $3.4 million in the second quarter of 2010. The increase from the third quarter of 2009 is the result of a $2.6 million increase in noninterest income and a $1.1 million increase in net interest income, offset in part by a $1.8 million increase in the provision for loan losses and a $0.2 million increase in income taxes. The decrease from the second quarter of 2010 is the result of a $4.2 million increase in the provision for loan losses and a $0.7 million decrease in net interest income, offset in part by a $2.4 million increase in noninterest income, a $1.2 million decrease in income taxes, and a $0.7 million decrease in noninterest expense.
Net Interest Income: Net interest income totaled $26.5 million for the third quarter of 2010, compared to $25.4 million for the third quarter of 2009, an increase of $1.1 million, or 4%, and $27.1 million for the second quarter of 2010, a decrease of $0.7 million, or 2%. Net interest margin was 3.63% for the third quarter of 2010, compared to 3.39% for the third quarter of 2009 and 3.65% for the second quarter of 2010. Included in the third quarter of 2010 net interest margin is a net reduction of $0.3 million from the interest reversals on nonaccrual loans offset by the quarterly adjustment of the discount accretion on loans and the loss share receivable. Included in the second quarter 2010 net interest margin is a recovery of $0.5 million from the quarterly adjustment of the discount accretion on loans and the loss share receivable. The net effect of these adjustments on net interest margin were a 5 basis point decrease and a 6 basis point increase for the third quarter and second quarter, respectively.
Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $12.0 million for the third quarter of 2010, compared to $10.2 million for the third quarter of 2009 and $7.8 million for the second quarter of 2010. Noncovered net charge offs totaled $6.6 million, or 1.07% (annualized) of average noncovered portfolio loans for the third quarter of 2010, compared to $4.2 million, or 0.61% (annualized) of average noncovered portfolio loans for the third quarter of 2009.
Noninterest Income: Noninterest income totaled $6.3 million for the third quarter of 2010, compared to $3.7 million for the third quarter of 2009 and $4.0 million for the second quarter of 2010. The increase in noninterest income from the third quarter of 2009 and from the second quarter of 2010 was primarily the result of a $2.5 million increase in gain on sale of securities.
Noninterest Expense: Noninterest expense totaled $15.4 million for the third quarter of 2010, compared to $15.5 million for the third quarter of 2009 and $16.1 million for the second quarter of 2010. The decrease from third quarter 2009 consists of a $0.6 million decrease in personnel expense and a $0.2 million decrease in provision for unfunded loan commitments, offset in part by a $0.5 million increase in other general and administrative expense and a $0.2 million increase in FDIC and other insurance expense. The decrease from second quarter 2010 consists of a $0.5 million decrease in personnel expense, a $0.2 million decrease in FDIC and other insurance expense, and a $0.4 million decrease in other real estate expense, offset in part by a $0.3 million increase in other general and administrative expense.
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, and specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At September 30, 2010 we had total assets of $2.9 billion, deposits of $2.3 billion, and shareholders' equity of $376.9 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 September 30, 2010, approximately $706.1 million, or 29%, of our noncovered loans were loans to individuals and businesses in the healthcare industry.
We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or "spec" residential property credits. Additionally, subprime lending has never been a part of our business strategy, and our exposure to subprime loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of September 30, 2010 approximately $1.8 billion, or 74%, of our noncovered loans was commercial real estate mortgage and construction loans, including $404.7 million of loans to individuals and businesses in the healthcare industry. Our commercial real estate mortgage and construction and commercial loans are concentrated in states that have experienced less adverse effects from the recession than many others.
We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At September 30, 2010 our Texas segment accounted for $1.0 billion, or 41% of total portfolio loans, followed by $890.6 million, or 36%, from our Oklahoma segment, $309.2 million, or 13%, from our Kansas segment, and $248.9 million, or 10%, from our other states segment.
Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest's public trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.
The Southwest Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8074
Forward-Looking Statements
This Press Release includes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include: statements of Southwest's goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk, and interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; and statements of Southwest's ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties, because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; and a variety of other matters. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate our future results.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of September 30, 2010 through the date its financial statements are filed with the Securities and Exchange Commission. The September 30, 2010 financial statements will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
Financial Tables
| Unaudited Financial Highlights | Table 1 | ||||
| Unaudited Consolidated Statements of Financial Condition | Table 2 | ||||
| Unaudited Consolidated Statements of Operations | Table 3 | ||||
| Unaudited Average Balances, Yields, and Rates-Quarterly | Table 4 | ||||
| Unaudited Average Balances, Yields, and Rates-Year-to-date | Table 5 | ||||
| Unaudited Quarterly Summary Financial Data | Table 6 | ||||
| Unaudited Quarterly Supplemental Analytical Data | Table 7 | ||||
| SOUTHWEST BANCORP, INC. | Table 1 | ||||
| UNAUDITED FINANCIAL HIGHLIGHTS | |||||
| (Dollars in thousands except per share) | |||||
| Third Quarter | Second Quarter | ||||
| QUARTERLY HIGHLIGHTS | % | % | |||
| 2010 | 2009 | Change | 2010 | Change | |
| Operations | |||||
| Net interest income | $ 26,452 | $ 25,400 | 4% | $ 27,108 | (2)% |
| Provision for loan losses | 11,988 | 10,177 | 18 | 7,776 | 54 |
| Noninterest income | 6,335 | 3,710 | 71 | 3,962 | 60 |
| Noninterest expense | 15,418 | 15,528 | (1) | 16,146 | (5) |
| Income before taxes | 5,381 | 3,405 | 58 | 7,148 | (25) |
| Taxes on income | 1,508 | 1,271 | 19 | 2,737 | (45) |
| Net income | 3,873 | 2,134 | 81 | 4,411 | (12) |
| Net income available to common shareholders | 2,825 | 1,097 | 158 | 3,366 | (16) |
| Diluted earnings per share | 0.15 | 0.07 | 114 | 0.19 | (21) |
| Balance Sheet | |||||
| Total assets | 2,905,275 | 3,029,347 | (4) | 3,010,835 | (4) |
| Loans held for sale | 34,868 | 36,526 | (5) | 25,615 | 36 |
| Noncovered portfolio loans | 2,412,796 | 2,675,741 | (10 | 2,475,348 | (3) |
| Covered portfolio loans | 60,558 | 103,630 | (42) | 68,006 | (11) |
| Total deposits | 2,345,648 | 2,473,162 | (5) | 2,444,939 | (4) |
| Total shareholders' equity | 376,576 | 309,118 | 22 | 375,319 | -- |
| Book value per common share | 15.93 | 16.43 | (3) | 15.88 | -- |
| Key Ratios | |||||
| Net interest margin | 3.63% | 3.39% | 3.65% | ||
| Efficiency ratio | 47.02 | 53.34 | 51.97 | ||
| Total capital to risk-weighted assets | 18.45 | 14.31 | 17.78 | ||
| Nonperforming loans to portfolio loans - noncovered | 5.62 | 4.53 | 3.89 | ||
| Shareholders' equity to total assets | 12.96 | 10.20 | 12.47 | ||
| Tangible common equity to tangible assets* | 10.43 | 7.79 | 10.02 | ||
| Return on average assets (annualized) | 0.52 | 0.28 | 0.58 | ||
| Return on average common equity (annualized) | 3.57 | 1.78 | 4.64 | ||
| Return on average tangible common equity (annualized)** | 3.65 | 1.83 | 4.75 | ||
| YEAR-TO-DATE HIGHLIGHTS | Nine Months | ||||
| % | |||||
| 2010 | 2009 | Change | |||
| Operations | |||||
| Net interest income | $ 80,361 | $ 70,894 | 13% | ||
| Provision for loan losses | 28,295 | 28,536 | (1) | ||
| Noninterest income | 14,475 | 17,448 | (17) | ||
| Noninterest expense | 46,822 | 44,817 | 4 | ||
| Income before taxes | 19,719 | 14,989 | 32 | ||
| Taxes on income | 7,063 | 5,581 | 27 | ||
| Net income | 12,656 | 9,408 | 35 | ||
| Net income available to common shareholders | 9,520 | 6,303 | 51 | ||
| Diluted earnings per share | 0.55 | 0.43 | 28 | ||
| Balance Sheet | |||||
| Total assets | 2,905,275 | 3,029,347 | (4) | ||
| Loans held for sale | 34,868 | 36,526 | (5) | ||
| Noncovered portfolio loans | 2,412,796 | 2,675,741 | (10) | ||
| Covered portfolio loans | 60,558 | 103,630 | (42) | ||
| Total deposits | 2,345,648 | 2,473,162 | (5) | ||
| Total shareholders' equity | 376,576 | 309,118 | 22 | ||
| Book value per common share | 15.93 | 16.43 | (3) | ||
| Key Ratios | |||||
| Net interest margin | 3.63% | 3.27% | |||
| Efficiency ratio (GAAP-based) | 49.37 | 50.73 | |||
| Total capital to risk-weighted assets | 18.45 | 14.31 | |||
| Nonperforming loans to portfolio loans - noncovered | 5.62 | 4.53 | |||
| Shareholders' equity to total assets | 12.96 | 10.20 | |||
| Tangible common equity to tangible assets* | 10.43 | 7.79 | |||
| Return on average assets | 0.56 | 0.42 | |||
| Return on average common equity | 4.47 | 3.50 | |||
| Return on average tangible common equity** | 4.58 | 3.61 | |||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |||||
| * This is a Non-GAAP financial measure. Please see Table 7 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) | |||
|
September 30, 2010 |
December 31, 2009 |
September 30, 2009 |
|
| Assets | |||
| Cash and cash equivalents | $ 89,458 | $ 118,847 | $ 32,094 |
| Investment securities: | |||
| Held to maturity. Fair value: $9,185, $6,754, $6,907, respectively | 9,093 | 6,670 | 6,795 |
| Available for sale. Amortized cost: $226,323, $236,199, $228,723, respectively | 231,751 | 237,703 | 233,009 |
| Other investments, at cost | 10,389 | 19,066 | 18,986 |
| Loans held for sale | 34,868 | 43,134 | 36,526 |
| Noncovered loans receivable | 2,412,796 | 2,539,294 | 2,572,111 |
| Less: Allowance for loan losses | (72,418) | (62,413) | (57,777) |
| Net noncovered loans receivable | 2,340,378 | 2,476,881 | 2,514,334 |
|
Covered loans receivable (includes loss share: $17.9 million, $23.9 million, $33.3 million, respectively) |
60,558 | 85,405 | 103,630 |
| Net loans receivable | 2,400,936 | 2,562,286 | 2,617,964 |
| Accrued interest receivable | 9,663 | 10,806 | 10,794 |
| Premises and equipment, net | 25,075 | 26,536 | 25,255 |
| Noncovered other real estate | 35,723 | 18,432 | 6,389 |
| Covered other real estate | 4,448 | 4,748 | 2,598 |
| Goodwill | 6,811 | 6,811 | 6,811 |
| Other intangible assets, net | 5,358 | 5,779 | 5,872 |
| Other assets | 41,702 | 47,473 | 26,254 |
| Total assets | $ 2,905,275 | $ 3,108,291 | $ 3,029,347 |
| Liabilities | |||
| Deposits: | |||
| Noninterest-bearing demand | $ 329,655 | $ 324,829 | $ 309,767 |
| Interest-bearing demand | 86,153 | 74,201 | 82,622 |
| Money market accounts | 518,422 | 505,521 | 506,196 |
| Savings accounts | 25,556 | 25,730 | 25,636 |
| Time deposits of $100,000 or more | 795,303 | 1,004,439 | 888,814 |
| Other time deposits | 590,559 | 658,010 | 660,127 |
| Total deposits | 2,345,648 | 2,592,730 | 2,473,162 |
| Accrued interest payable | 2,457 | 3,191 | 4,545 |
| Income tax payable | 6,603 | 4,486 | 3,822 |
| Other liabilities | 9,522 | 13,121 | 10,288 |
| Other borrowings | 82,506 | 103,022 | 146,449 |
| Subordinated debentures | 81,963 | 81,963 | 81,963 |
| Total liabilities | 2,528,699 | 2,798,513 | 2,720,229 |
| Shareholders' equity | |||
|
Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding |
67,548 | 67,037 | 66,872 |
|
Common stock -- $1 par value; 40,000,000 shares authorized; 19,395,675, 14,750,713, 14,748,223 shares issued, respectively |
19,396 | 14,751 | 14,748 |
| Paid in capital | 98,750 | 49,029 | 49,007 |
| Retained earnings | 187,535 | 178,016 | 175,834 |
| Accumulated other comprehensive income | 3,347 | 945 | 2,657 |
| Total shareholders' equity | 376,576 | 309,778 | 309,118 |
| Total liabilities and shareholders' equity | $ 2,905,275 | $ 3,108,291 | $ 3,029,347 |
| SOUTHWEST BANCORP, INC. | Table 3 | |||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Dollars in thousands except per share) | ||||
|
For the three months ended September 30, |
For the nine months ended September 30, |
|||
| 2010 | 2009 | 2010 | 2009 | |
| Interest income | ||||
| Loans | $ 32,824 | $ 35,607 | $ 101,087 | $ 104,884 |
| Investment securities | 2,204 | 2,122 | 6,844 | 6,713 |
| Other interest-earning assets | 55 | 4 | 190 | 13 |
| Total interest income | 35,083 | 37,733 | 108,121 | 111,610 |
| Interest expense | ||||
| Interest-bearing deposits | 6,802 | 10,097 | 22,347 | 33,229 |
| Other borrowings | 524 | 960 | 1,565 | 3,424 |
| Subordinated debentures | 1,305 | 1,276 | 3,848 | 4,063 |
| Total interest expense | 8,631 | 12,333 | 27,760 | 40,716 |
| Net interest income | 26,452 | 25,400 | 80,361 | 70,894 |
| Provision for loan losses | 11,988 | 10,177 | 28,295 | 28,536 |
| Net interest income after provision for loan losses | 14,464 | 15,223 | 52,066 | 42,358 |
| Noninterest income | ||||
| Service charges and fees | 2,994 | 2,992 | 9,260 | 8,409 |
| Gain on acquisition | -- | -- | -- | 3,281 |
| Gain on sales of loans | 653 | 386 | 2,054 | 2,030 |
| Gain on investment securities | 2,480 | 10 | 2,521 | 2,922 |
| Other noninterest income | 208 | 322 | 640 | 806 |
| Total noninterest income | 6,335 | 3,710 | 14,475 | 17,448 |
| Noninterest expense | ||||
| Salaries and employee benefits | 7,183 | 7,824 | 22,400 | 21,950 |
| Occupancy | 2,835 | 2,958 | 8,454 | 8,478 |
| FDIC and other insurance | 1,347 | 1,134 | 4,455 | 4,444 |
| Other real estate, net | 228 | 90 | 963 | 91 |
| General and administrative | 3,825 | 3,522 | 10,550 | 9,854 |
| Total noninterest expense | 15,418 | 15,528 | 46,822 | 44,817 |
| Income before taxes | 5,381 | 3,405 | 19,719 | 14,989 |
| Taxes on income | 1,508 | 1,271 | 7,063 | 5,581 |
| Net income | $ 3,873 | $ 2,134 | $ 12,656 | $ 9,408 |
| Net income available to common shareholders | $ 2,825 | $ 1,097 | $ 9,520 | $ 6,303 |
| Basic earnings per common share | $ 0.15 | $ 0.07 | $ 0.55 | $ 0.43 |
| Diluted earnings per common share | 0.15 | 0.07 | 0.55 | 0.43 |
| Common dividends declared per share | -- | 0.0238 | -- | 0.0714 |
| SOUTHWEST BANCORP, INC. | Table 4 | |||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | ||||||
| (Dollars in thousands) | ||||||
| For the three months ended September 30, | ||||||
| 2010 | 2009 | |||||
|
Average Balance |
Interest |
Average Yield/Rate |
Average Balance |
Interest |
Average Yield/Rate |
|
| Assets | ||||||
| Loans (2) | $ 2,543,412 | $ 32,824 | 5.12% | $ 2,719,835 | $ 35,607 | 5.19% |
| Investment securities | 261,124 | 2,204 | 3.35 | 243,604 | 2,122 | 3.46 |
| Other interest-earning assets | 85,214 | 55 | 0.26 | 10,442 | 4 | 0.15 |
| Total interest-earning assets | 2,889,750 | 35,083 | 4.82 | 2,973,881 | 37,733 | 5.03 |
| Other assets | 76,570 | 62,160 | ||||
| Total assets | $ 2,966,320 | $ 3,036,041 | ||||
| Liabilities and Shareholders' Equity | ||||||
| Interest-bearing demand deposits | $ 93,481 | $ 111 | 0.47% | $ 84,031 | $ 107 | 0.51% |
| Money market accounts | 515,754 | 976 | 0.75 | 498,842 | 1,220 | 0.97 |
| Savings accounts | 25,306 | 15 | 0.24 | 26,101 | 39 | 0.59 |
| Time deposits | 1,428,247 | 5,700 | 1.58 | 1,547,192 | 8,731 | 2.24 |
| Total interest-bearing deposits | 2,062,788 | 6,802 | 1.35 | 2,156,166 | 10,097 | 1.86 |
| Other borrowings | 93,136 | 524 | 2.23 | 165,327 | 960 | 2.30 |
| Subordinated debentures | 81,963 | 1,305 | 6.37 | 81,963 | 1,276 | 6.23 |
| Total interest-bearing liabilities | 2,237,887 | 8,631 | 1.53 | 2,403,456 | 12,333 | 2.04 |
| Noninterest-bearing demand deposits | 330,321 | 299,235 | ||||
| Other liabilities | 16,960 | 22,365 | ||||
| Shareholders' equity | 381,152 | 310,985 | ||||
| Total liabilities and shareholders' equity | $ 2,966,320 | $ 3,036,041 | ||||
| Net interest income and spread | $ 26,452 | 3.29% | $ 25,400 | 2.99% | ||
| Net interest margin (1) | 3.63% | 3.39% | ||||
|
Average interest-earning assets to average interest-bearing liabilities |
129.13% | 123.73% | ||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | ||||||
| (2) Information regarding noncovered and covered loans for the period shown is not readily available. | ||||||
| SOUTHWEST BANCORP, INC. | Table 5 | |||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES | ||||||
| (Dollars in thousands) | ||||||
| For the nine months ended September 30, | ||||||
| 2010 | 2009 | |||||
|
Average Balance |
Interest |
Average Yield/Rate |
Average Balance |
Interest |
Average Yield/Rate |
|
| Assets | ||||||
| Loans (2) | $ 2,606,166 | $ 101,087 | 5.19% | $ 2,655,156 | $ 104,884 | 5.28% |
| Investment securities | 260,137 | 6,844 | 3.52 | 239,134 | 6,713 | 3.75 |
| Other interest-earning assets | 97,121 | 190 | 0.26 | 5,877 | 13 | 0.30 |
| Total interest-earning assets | 2,963,424 | 108,121 | 4.88 | 2,900,167 | 111,610 | 5.15 |
| Other assets | 74,199 | 66,254 | ||||
| Total assets | $ 3,037,623 | $ 2,966,421 | ||||
| Liabilities and Shareholders' Equity | ||||||
| Interest-bearing demand deposits | $ 102,843 | $ 383 | 0.50% | $ 86,576 | $ 410 | 0.63% |
| Money market accounts | 508,742 | 3,026 | 0.80 | 479,700 | 3,784 | 1.05 |
| Savings accounts | 25,515 | 47 | 0.25 | 19,535 | 62 | 0.42 |
| Time deposits | 1,534,135 | 18,891 | 1.65 | 1,496,193 | 28,973 | 2.59 |
| Total interest-bearing deposits | 2,171,235 | 22,347 | 1.42 | 2,082,004 | 33,229 | 2.13 |
| Other borrowings | 96,099 | 1,565 | 2.18 | 199,982 | 3,424 | 2.29 |
| Subordinated debentures | 81,963 | 3,848 | 6.26 | 81,963 | 4,063 | 6.61 |
| Total interest-bearing liabilities | 2,349,297 | 27,760 | 1.58 | 2,363,949 | 40,716 | 2.30 |
| Noninterest-bearing demand deposits | 318,609 | 274,535 | ||||
| Other liabilities | 17,629 | 20,877 | ||||
| Shareholders' equity | 352,088 | 307,060 | ||||
| Total liabilities and shareholders' equity | $ 3,037,623 | $ 2,966,421 | ||||
| Net interest income and spread | $ 80,361 | 3.30% | $ 70,894 | 2.85% | ||
| Net interest margin (1) | 3.63% | 3.27% | ||||
|
Average interest-earning assets to average interest-bearing liabilities |
126.14% | 122.68% | ||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | ||||||
| (2) Information regarding noncovered and covered loans for the period shown is not readily available. | ||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | |||||||
| (Dollars in thousands except per share) | |||||||
| 2010 | 2009 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| OPERATIONS | |||||||
| Interest income: | |||||||
| Loans | $ 32,824 | $ 33,891 | $ 34,372 | $ 36,355 | $ 35,607 | $ 36,009 | $ 33,268 |
| Investment securities | 2,204 | 2,320 | 2,320 | 2,433 | 2,122 | 2,079 | 2,512 |
| Other interest-earning assets | 55 | 68 | 67 | 1 | 4 | 3 | 6 |
| Total interest income | 35,083 | 36,279 | 36,759 | 38,789 | 37,733 | 38,091 | 35,786 |
| Interest expense: | |||||||
| Interest bearing demand deposits | 111 | 140 | 132 | 66 | 107 | 150 | 153 |
| Money market accounts | 976 | 1,037 | 1,013 | 1,170 | 1,220 | 1,211 | 1,353 |
| Savings accounts | 15 | 16 | 16 | 16 | 39 | 14 | 9 |
| Time deposits of $100,000 or more | 3,128 | 3,517 | 4,024 | 4,340 | 4,822 | 5,552 | 5,980 |
| Other time deposits | 2,572 | 2,661 | 2,989 | 3,498 | 3,909 | 4,145 | 4,565 |
| Total interest-bearing deposits | 6,802 | 7,371 | 8,174 | 9,090 | 10,097 | 11,072 | 12,060 |
| Other borrowings | 524 | 524 | 517 | 625 | 960 | 1,180 | 1,284 |
| Subordinated debentures | 1,305 | 1,276 | 1,267 | 1,277 | 1,276 | 1,383 | 1,404 |
| Total interest expense | 8,631 | 9,171 | 9,958 | 10,992 | 12,333 | 13,635 | 14,748 |
| Net interest income | 26,452 | 27,108 | 26,801 | 27,797 | 25,400 | 24,456 | 21,038 |
| Provision for loan losses | 11,988 | 7,776 | 8,531 | 10,640 | 10,177 | 7,477 | 10,882 |
| Noninterest income: | |||||||
| Service charges and fees | 2,994 | 3,170 | 3,096 | 3,295 | 2,992 | 2,817 | 2,600 |
| Gain on sales of loans | 653 | 416 | 985 | 933 | 386 | 926 | 718 |
| Gain (loss) on investment securities | 2,480 | 34 | 7 | 3 | 10 | (9) | 2,921 |
| Other noninterest income | 208 | 342 | 90 | 257 | 322 | 3,527 | 238 |
| Total noninterest income | 6,335 | 3,962 | 4,178 | 4,488 | 3,710 | 7,261 | 6,477 |
| Noninterest expense: | |||||||
| Salaries and employee benefits | 7,183 | 7,637 | 7,580 | 7,349 | 7,824 | 6,887 | 7,239 |
| Occupancy | 2,835 | 2,836 | 2,783 | 3,159 | 2,958 | 2,789 | 2,731 |
| FDIC and other insurance | 1,347 | 1,521 | 1,587 | 1,101 | 1,134 | 2,319 | 991 |
| Other real estate, net | 228 | 629 | 106 | 39 | 90 | 103 | (102) |
| Provision for unfunded loan commitments | (294) | (512) | (465) | 147 | (79) | (388) | 90 |
| Other general and administrative | 4,119 | 4,035 | 3,667 | 4,246 | 3,601 | 2,980 | 3,650 |
| Total noninterest expenses | 15,418 | 16,146 | 15,258 | 16,041 | 15,528 | 14,690 | 14,599 |
| Income before taxes | 5,381 | 7,148 | 7,190 | 5,604 | 3,405 | 9,550 | 2,034 |
| Taxes on income | 1,508 | 2,737 | 2,818 | 2,030 | 1,271 | 3,605 | 705 |
| Net income | $ 3,873 | $ 4,411 | $ 4,372 | $ 3,574 | $ 2,134 | $ 5,945 | $ 1,329 |
| Net income available to common shareholders | $ 2,825 | $ 3,366 | $ 3,329 | $ 2,534 | $ 1,097 | $ 4,910 | $ 296 |
| PER SHARE DATA | |||||||
| Basic earnings per common share | $ 0.15 | $ 0.19 | $ 0.23 | $ 0.17 | $ 0.07 | $ 0.34 | $ 0.02 |
| Diluted earnings per common share | 0.15 | 0.19 | 0.23 | 0.17 | 0.07 | 0.33 | 0.02 |
| Common dividends declared per share | -- | -- | -- | 0.0238 | 0.0238 | 0.0238 | 0.0238 |
| Book value per common share | 15.93 | 15.88 | 16.79 | 16.46 | 16.43 | 16.30 | 16.01 |
| Tangible book value per share* | 15.58 | 15.53 | 16.33 | 15.99 | 15.96 | 15.84 | 15.52 |
| COMMON STOCK | |||||||
| Shares issued | 19,395,675 | 19,388,797 | 14,779,711 | 14,750,713 | 14,748,223 | 14,658,042 | 14,658,042 |
| Less treasury shares | -- | -- | -- | -- | -- | (15,602) | (49,930) |
| Outstanding shares | 19,395,675 | 19,388,797 | 14,779,711 | 14,750,713 | 14,748,223 | 14,642,440 | 14,608,112 |
| OTHER FINANCIAL DATA | |||||||
| Investment securities | $ 251,233 | $ 265,895 | $ 260,837 | $ 263,439 | $ 258,790 | $ 243,077 | $ 179,006 |
| Loans held for sale | 34,868 | 25,615 | 25,586 | 43,134 | 36,526 | 26,006 | 76,404 |
| Noncovered portfolio loans | 2,412,796 | 2,475,348 | 2,516,397 | 2,539,294 | 2,572,111 | 2,587,230 | 2,526,293 |
| Total noncovered loans | 2,447,664 | 2,500,963 | 2,541,983 | 2,582,428 | 2,608,637 | 2,613,236 | 2,602,697 |
| Covered portfolio loans | 60,558 | 68,006 | 76,909 | 85,405 | 103,630 | 117,096 | -- |
| Total assets | 2,905,275 | 3,010,835 | 3,074,923 | 3,108,291 | 3,029,347 | 3,038,985 | 2,928,133 |
| Total deposits | 2,345,648 | 2,444,939 | 2,554,165 | 2,592,730 | 2,473,162 | 2,452,295 | 2,330,089 |
| Other borrowings | 82,506 | 93,036 | 103,620 | 103,022 | 146,449 | 176,368 | 193,739 |
| Subordinated debentures | 81,963 | 81,963 | 81,963 | 81,963 | 81,963 | 81,963 | 81,963 |
| Total shareholders' equity | 376,576 | 375,319 | 315,341 | 309,778 | 309,118 | 305,416 | 300,406 |
| Mortgage servicing portfolio | 261,266 | 249,632 | 241,224 | 237,459 | 223,226 | 209,425 | 179,959 |
| INTANGIBLE ASSET DATA | |||||||
| Goodwill | $ 6,811 | $ 6,811 | $ 6,811 | $ 6,811 | $ 6,811 | $ 6,811 | $ 7,071 |
| Core deposit intangible | 3,693 | 3,830 | 3,967 | 4,103 | 4,240 | 4,378 | 2,498 |
| Mortgage servicing rights | 1,661 | 1,589 | 1,603 | 1,670 | 1,625 | 1,589 | 1,362 |
| Nonmortgage servicing rights | 4 | 5 | 5 | 6 | 7 | 7 | 8 |
| Total intangible assets | $ 12,169 | $ 12,235 | $ 12,386 | $ 12,590 | $ 12,683 | $ 12,785 | $ 10,939 |
| Intangible amortization expense | $ 392 | $ 350 | $ 359 | $ 381 | $ 344 | $ 391 | $ 204 |
| Continued | |||||||
| ____________________ | |||||||
| *This is a Non-GAAP based financial measure. | |||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | Continued | ||||||
| (Dollars in thousands except per share) | |||||||
| 2010 | 2009 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| LOAN COMPOSITION | |||||||
| Noncovered | |||||||
| Real estate mortgage: | |||||||
| Commercial | $ 1,271,278 | $ 1,251,709 | $ 1,230,009 | $ 1,212,409 | $ 1,221,739 | $ 1,208,819 | $ 1,098,587 |
| One-to-four family residential | 109,980 | 106,814 | 111,185 | 114,614 | 125,034 | 116,068 | 114,111 |
| Real estate construction | |||||||
| Commercial | 527,773 | 589,590 | 630,472 | 618,078 | 612,905 | 622,298 | 640,132 |
| One-to-four family residential | 30,527 | 35,129 | 34,996 | 41,109 | 39,009 | 51,292 | 79,309 |
| Commercial | 463,132 | 471,004 | 487,074 | 520,505 | 538,757 | 554,734 | 558,834 |
| Installment and consumer: | |||||||
| Guaranteed student loans | 5,960 | 7,389 | 10,199 | 36,163 | 30,949 | 18,477 | 69,792 |
| Other | 39,014 | 39,328 | 38,048 | 39,550 | 40,244 | 41,548 | 41,932 |
| Total noncovered loans, including held for sale | 2,447,664 | 2,500,963 | 2,541,983 | 2,582,428 | 2,608,637 | 2,613,236 | 2,602,697 |
| Less allowance for loan losses | (72,418) | (67,055) | (65,168) | (62,413) | (57,777) | (51,753) | (46,262) |
| Total noncovered loans, net | $ 2,375,246 | $ 2,433,908 | $ 2,476,815 | $ 2,520,015 | $ 2,550,860 | $ 2,561,483 | $ 2,556,435 |
| Covered | |||||||
| Real estate mortgage: | |||||||
| Commercial | $ 33,428 | $ 36,107 | $ 37,487 | $ 39,836 | $ 37,820 | $ 40,411 | $ -- |
| One-to-four family residential | 10,071 | 10,277 | 10,843 | 12,630 | 17,246 | 17,889 | -- |
| Real estate construction | |||||||
| Commercial | 7,464 | 8,190 | 11,173 | 12,515 | 14,178 | 14,277 | -- |
| One-to-four family residential | 1,823 | 3,853 | 5,273 | 5,324 | 9,936 | 13,647 | -- |
| Commercial | 6,816 | 8,487 | 10,807 | 13,412 | 21,475 | 27,203 | -- |
| Installment and consumer: | 956 | 1,092 | 1,326 | 1,688 | 2,975 | 3,669 | -- |
| Total covered loans | $ 60,558 | $ 68,006 | $ 76,909 | $ 85,405 | $ 103,630 | $ 117,096 | $ -- |
| DEPOSIT COMPOSITION | |||||||
| Non-interest bearing demand | $ 329,655 | $ 326,721 | $ 317,896 | $ 324,829 | $ 309,767 | $ 291,014 | $ 274,175 |
| Interest-bearing demand | 86,153 | 102,218 | 119,757 | 74,201 | 82,622 | 94,060 | 85,629 |
| Money market accounts | 518,422 | 510,549 | 506,659 | 505,521 | 506,196 | 483,162 | 467,924 |
| Savings accounts | 25,556 | 25,321 | 25,871 | 25,730 | 25,636 | 25,660 | 15,797 |
| Time deposits of $100,000 or more | 795,303 | 861,110 | 944,871 | 1,004,439 | 888,814 | 905,202 | 849,814 |
| Other time deposits | 590,559 | 619,020 | 639,111 | 658,010 | 660,127 | 653,197 | 636,750 |
| Total deposits** | $ 2,345,648 | $ 2,444,939 | $ 2,554,165 | $ 2,592,730 | $ 2,473,162 | $ 2,452,295 | $ 2,330,089 |
| LOANS BY SEGMENT | |||||||
| Oklahoma banking | $ 890,598 | $ 914,004 | $ 926,870 | $ 933,150 | $ 943,982 | $ 967,981 | $ 949,454 |
| Texas banking | 1,024,863 | 1,041,228 | 1,063,511 | 1,054,404 | 1,042,369 | 1,037,694 | 990,135 |
| Kansas banking | 309,240 | 329,157 | 342,596 | 359,633 | 400,710 | 412,314 | 309,774 |
| Other states banking | 248,653 | 258,965 | 260,329 | 277,512 | 288,680 | 286,337 | 276,930 |
| Subtotal | 2,473,354 | 2,543,354 | 2,593,306 | 2,624,699 | 2,675,741 | 2,704,326 | 2,526,293 |
| Secondary market | 34,868 | 25,615 | 25,586 | 43,134 | 36,526 | 26,006 | 76,404 |
| Total loans | $2,508,222 | $2,568,969 | $2,618,892 | $2,667,833 | $2,712,267 | $2,730,332 | $2,602,697 |
| NET INCOME BY SEGMENT | |||||||
| Oklahoma banking | $ 3,624 | $ 4,334 | $ 2,820 | $ 3,807 | $ 2,529 | $ 3,284 | $ 3,210 |
| Texas banking | (1,769) | 697 | 1,656 | 3,591 | 2,686 | 3,662 | 1,119 |
| Kansas banking | (227) | 985 | (355) | (2,328) | (1,180) | 2,405 | 598 |
| Other states banking | 488 | (507) | 1,722 | 300 | 57 | (78) | (1,974) |
| Subtotal | 2,116 | 5,509 | 5,843 | 5,370 | 4,092 | 9,273 | 2,953 |
| Secondary market | 219 | 72 | 327 | (3) | (201) | 117 | (61) |
| Other operations | 1,538 | (1,170) | (1,798) | (1,793) | (1,757) | (3,445) | (1,563) |
| Net income | $ 3,873 | $ 4,411 | $ 4,372 | $ 3,574 | $ 2,134 | $ 5,945 | $ 1,329 |
| OFFICES AND EMPLOYEES | |||||||
| FTE Employees | 440 | 447 | 455 | 466 | 471 | 478 | 425 |
| Branches | 23 | 23 | 24 | 24 | 24 | 24 | 18 |
| Loan production offices | 2 | 2 | 2 | 3 | 3 | 3 | 3 |
| Assets per employee | $ 6,603 | $ 6,736 | $ 6,758 | $ 6,670 | $ 6,432 | $ 6,358 | $ 6,890 |
| ____________________ | |||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | |||||||
| Total deposits | $ 2,345,648 | $ 2,444,939 | $ 2,554,165 | $ 2,592,730 | $ 2,473,162 | $ 2,452,295 | $ 2,330,089 |
| Less: | |||||||
| Brokered time deposits | 226,238 | 279,027 | 359,571 | 417,419 | 327,951 | 395,196 | 454,435 |
| Other brokered deposits | 129,096 | 126,643 | 124,969 | 127,320 | 125,737 | 125,666 | 124,674 |
| Non-brokered deposits | $ 1,990,314 | $ 2,039,269 | $ 2,069,625 | $ 2,047,991 | $ 2,019,474 | $ 1,931,433 | $ 1,750,980 |
| Plus: | |||||||
| Sweep repurchase agreements | 22,211 | 22,700 | 33,192 | 23,259 | 26,500 | 35,708 | 24,963 |
| Core funding | $ 2,012,525 | $ 2,061,969 | $ 2,102,817 | $ 2,071,250 | $ 2,045,974 | $ 1,967,141 | $ 1,775,943 |
| 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) | |||||||
| 2010 | 2009 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| PERFORMANCE RATIOS | |||||||
| Return on average assets (annualized) | 0.52% | 0.58% | 0.57% | 0.46% | 0.28% | 0.81% | 0.18% |
| Return on average common equity (annualized) | 3.57 | 4.64 | 5.42 | 4.06 | 1.78 | 8.26 | 0.50 |
| Return on average tangible common equity | |||||||
| (annualized)* | 3.65 | 4.75 | 5.58 | 4.17 | 1.83 | 8.51 | 0.52 |
| Net interest margin (annualized) | 3.63 | 3.65 | 3.59 | 3.71 | 3.39 | 3.41 | 3.00 |
| Total dividends declared to net income | 22.59 | 19.84 | 20.02 | 34.31 | 57.46 | 20.58 | 92.00 |
| Effective tax rate | 28.02 | 38.29 | 39.19 | 36.22 | 37.33 | 37.75 | 34.66 |
| Efficiency ratio | 47.02 | 51.97 | 49.25 | 49.69 | 53.34 | 46.32 | 53.06 |
| NONPERFORMING ASSETS | |||||||
| Noncovered | |||||||
| Nonaccrual loans | $ 135,209 | $ 111,871 | $ 97,858 | $ 105,887 | $ 94,715 | $ 74,205 | $ 73,383 |
| 90 days past due and accruing | 452 | 333 | 4 | 310 | 10,578 | 8,409 | 10,552 |
| Total nonperforming loans | 135,661 | 112,204 | 97,862 | 106,197 | 105,293 | 82,614 | 83,935 |
| Other real estate | 35,723 | 27,634 | 18,809 | 18,432 | 6,389 | 6,003 | 5,351 |
| Total nonperforming assets | $ 171,384 | $ 139,838 | $ 116,671 | $ 124,629 | $ 111,682 | $ 88,617 | $ 89,286 |
| Performing restructured | $ 5,334 | $ 5,525 | $ 5,650 | $ -- | $ -- | $ -- | $ -- |
| Potential problem loans | $ 236,844 | $ 242,217 | $ 275,912 | $ 258,399 | $ 255,051 | $ 178,081 | $ 133,810 |
| Covered | |||||||
| Nonaccrual loans | $ 7,906 | $ 14,504 | $ 16,192 | $ 12,322 | $ 14,686 | $ 8,607 | $ -- |
| 90 days past due and accruing | 1,871 | 130 | 356 | 1,136 | 4,544 | 3,658 | -- |
| Total nonperforming loans | 9,777 | 14,634 | 16,548 | 13,458 | 19,230 | 12,265 | -- |
| Other real estate | 4,448 | 4,352 | 4,489 | 4,748 | 2,598 | 2,938 | -- |
| Total nonperforming assets | $ 14,225 | $ 18,986 | $ 21,037 | $ 18,206 | $ 21,828 | $ 15,203 | $ -- |
| Potential problem loans | $ 6,413 | $ 6,184 | $ 6,620 | $ 8,874 | $ 4,421 | $ 5,977 | $ -- |
| ALLOWANCE ACTIVITY | |||||||
| Balance, beginning of period | $ 67,055 | $ 65,168 | $ 62,413 | $ 57,777 | $ 51,753 | $ 46,262 | $ 39,773 |
| Charge offs | 7,006 | 6,168 | 6,545 | 6,756 | 4,372 | 2,975 | 4,810 |
| Recoveries | 381 | 279 | 769 | 752 | 219 | 989 | 417 |
| Net charge offs | 6,625 | 5,889 | 5,776 | 6,004 | 4,153 | 1,986 | 4,393 |
| Provision for loan losses | 11,988 | 7,776 | 8,531 | 10,640 | 10,177 | 7,477 | 10,882 |
| Balance, end of period | $ 72,418 | $ 67,055 | $ 65,168 | $ 62,413 | $ 57,777 | $ 51,753 | $ 46,262 |
| ASSET QUALITY RATIOS | |||||||
| Noncovered | |||||||
| Nonperforming assets to portfolio loans and other real estate | 7.00% | 5.59% | 4.60% | 4.87% | 4.33% | 3.41% | 3.53% |
| Nonperforming loans to portfolio loans | 5.62 | 4.53 | 3.89 | 4.18 | 4.09 | 3.19 | 3.32 |
| Net loan charge-offs to average portfolio loans (annualized) | 1.07 | 0.94 | 0.93 | 0.92 | 0.61 | 0.31 | 0.71 |
| Allowance for loan losses to portfolio loans | 3.00 | 2.71 | 2.59 | 2.46 | 2.25 | 2.00 | 1.83 |
| Allowance for loan losses to nonperforming loans | 53.38 | 59.76 | 66.59 | 58.77 | 54.87 | 62.64 | 55.12 |
| Covered | |||||||
| Nonperforming assets to portfolio loans and other real estate | 21.88% | 26.24% | 25.84% | 20.19% | 20.55% | 12.67% | -- |
| Nonperforming loans to portfolio loans | 16.14 | 21.52 | 21.52 | 15.76 | 18.56 | 10.47 | -- |
| CAPITAL RATIOS | |||||||
| Average total shareholders' equity to average assets | 12.85% | 11.78% | 10.18% | 10.31% | 10.24% | 10.35% | 10.47% |
| Leverage ratio | 14.96 | 14.48 | 12.32 | 12.42 | 12.39 | 12.70 | 12.72 |
| Tier 1 capital to risk-weighted assets | 17.17 | 16.50 | 14.00 | 13.28 | 13.04 | 12.67 | 12.85 |
| Total capital to risk-weighted assets | 18.45 | 17.78 | 15.28 | 14.55 | 14.31 | 13.92 | 14.11 |
| Tangible common equity to tangible assets*** | 10.43 | 10.02 | 7.87 | 7.61 | 7.79 | 7.65 | 7.76 |
| REGULATORY CAPITAL DATA | |||||||
| Tier I capital | $ 442,188 | $ 438,973 | $ 381,280 | $ 377,418 | $ 374,805 | $ 372,713 | $ 369,482 |
| Total capital | 475,040 | 472,971 | 415,955 | 413,438 | 411,201 | 409,764 | 405,613 |
| Total risk adjusted assets | 2,574,746 | 2,659,886 | 2,722,628 | 2,841,476 | 2,873,558 | 2,942,821 | 2,875,290 |
| Average total assets | 2,955,779 | 3,032,328 | 3,094,756 | 3,039,014 | 3,024,885 | 2,935,189 | 2,905,653 |
| ____________________ | |||||||
| ***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) | |||||||
| Total shareholders' equity | $ 376,576 | $ 375,319 | $ 315,341 | $ 309,778 | $ 309,118 | $ 305,416 | $ 300,406 |
| Less: | |||||||
| Goodwill | 6,811 | 6,811 | 6,811 | 6,811 | 6,811 | 6,811 | 7,071 |
| Preferred stock | 67,548 | 67,375 | 67,205 | 67,037 | 66,872 | 66,710 | 66,549 |
| Tangible common equity | $ 302,217 | $ 301,133 | $ 241,325 | $ 235,930 | $ 235,435 | $ 231,895 | $ 226,786 |
| Total assets | $ 2,905,275 | $ 3,010,835 | $ 3,074,923 | $ 3,108,291 | $ 3,029,347 | $ 3,038,985 | $ 2,928,133 |
| Less goodwill | 6,811 | 6,811 | 6,811 | 6,811 | 6,811 | 6,811 | 7,071 |
| Tangible assets | $ 2,898,464 | $ 3,004,024 | $ 3,068,112 | $ 3,101,480 | $ 3,022,536 | $ 3,032,174 | $ 2,921,062 |
| Tangible common equity to tangible assets | 10.43% | 10.02% | 7.87% | 7.61% | 7.79% | 7.65% | 7.76% |
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |||||||