STILLWATER, Okla., Jan. 21, 2014 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB), ("Southwest"), today reported net income available to common shareholders for the fourth quarter of 2013 of $6.8 million, or $0.34 per diluted share, compared to $3.8 million, or $0.19 per diluted share, for the third quarter of 2013. Net income available to common shareholders for the year ended December 31, 2013 totaled $17.4 million, or $0.88 per diluted share, compared to $12.4 million, or $0.64 per diluted share, for the year ended December 31, 2012.
Southwest's board of directors reinstated quarterly common stock dividends with their approval of a quarterly cash dividend of $0.04 per share. The dividend is payable February 14, 2014 to shareholders of record as of February 3, 2014.
Mark Funke, President and CEO, stated, "We are pleased to report strong earnings for the fourth quarter and the year 2013. Our net earnings were boosted by improved asset quality and loan recoveries combined with the impact of the redemption of our 10.5% Trust Preferred Securities, that was completed in the previous quarter.
"Our balance sheet remains solid with good liquidity and exceptionally strong capital. We reinstated common dividends and completed the rebranding on our subsidiary bank, Bank SNB, simultaneously with the successful charter consolidation of our two subsidiary banks.
"Subsequent to the end of fourth quarter, we announced an agreement to sell three community bank branches in Kansas in an effort to consolidate our geographic footprint and focus appropriately on our future strategic direction. We remain committed to growing our Kansas franchise in the Wichita and Hutchinson markets.
This quarter's positive results represent continued progress as we focus on future growth opportunities and on delivering the highest quality service and products to our customers."
Financial Overview
Unless otherwise indicated, the following discussion excludes "covered" assets, which are subject to loss sharing agreements with the FDIC. For information on covered versus noncovered assets, please see the accompanying unaudited financial statement and tables.
Condition: At December 31, 2013, total assets were $2.0 billion, up $9.1 million compared to September 30, 2013. Cash and cash equivalents were $279.8 million, with $251.8 million in overnight funds, up $34.5 million when compared to September 30, 2013. Total loans were $1.2 billion, down $33.2 million when compared to September 30, 2013, and total investment securities were $394.2 million as of December 31, 2013, an increase of $12.2 million compared September 30, 2013.
At December 31, 2013, the allowance for loan losses was $36.6 million, a decrease of $3.4 million when compared to September 30, 2013. The allowance for loan losses to portfolio loans was 2.93% as of December 31, 2013 and 3.12% as of September 30, 2013. The allowance for loan losses to nonperforming loans was 196.67% as of December 31, 2013, compared to 137.03% as of September 30, 2013.
Nonperforming loans decreased by $10.6 million during the quarter. Other real estate at December 31, 2013 was $0.6 million, flat when compared to September 30, 2013 and a decrease of $10.8 million from December 31, 2012. Nonperforming assets were $19.2 million, or 1.53% of portfolio loans and other real estate, as of December 31, 2013, a decrease of $10.7 million (36%) from $29.9 million, or 2.33% of portfolio loans and other real estate, as of September 30, 2013.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of December 31, 2013 and September 30, 2013. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at December 31, 2013 and September 30, 2013. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.
The capital ratios of Southwest and its banking subsidiary, as of December 31, 2013, exceeded the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $310.9 million, for a total risk-based capital ratio of 21.59%, and Tier 1 capital was $292.1 million, for a Tier 1 risk-based capital ratio of 20.28%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $166.9 million. Bank SNB, Southwest's banking subsidiary, had total regulatory capital of $284.4 million, for a total risk-based capital ratio of 19.83%, and Tier 1 capital of $266.1 million, for a Tier 1 risk-based capital ratio of 18.56%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $141.0 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.
Fourth Quarter Results:
Summary: For the fourth quarter of 2013, net income available to common shareholders was $6.8 million, compared to $3.8 million for the third quarter of 2013, and $1.0 million for the fourth quarter of 2012. The $3.0 million increase in net income available to common shareholders compared to the third quarter of 2013 is primarily due to improved asset quality and recoveries resulting in a negative provision for loan losses of $6.5 million. Net interest income increased $1.4 million due in part to loan recoveries and lower interest expense driven by the redemption near the end of the third quarter of the 10.5% Trust Preferred Securities. Noninterest income was down $0.5 million from third quarter, while noninterest expense was up $2.0 million due in part to the charter consolidation and rebranding of our subsidiary bank. The effective tax rate was 38.68% in the fourth quarter of 2013 compared to 38.01% in the third quarter of 2013 and the increase is due to certain deferred tax adjustments.
The $5.9 million increase in our net income available to common shareholders compared to the fourth quarter of 2012 is again the result of improved asset quality and recoveries resulting in a $9.6 million decrease in the provision for loan losses. Net interest income decreased $0.6 million compared to the fourth quarter of 2012 due to lower loan volumes and reduced yields. Noninterest income decreased $1.8 million and noninterest expense decreased $2.6 million both as compared to the fourth quarter of 2012.
Net Interest Income: Net interest income totaled $16.6 million for the fourth quarter of 2013, compared to $15.3 million for the third quarter of 2013, an increase of $1.4 million, or 9%, and to $17.3 million for the fourth quarter of 2012, a decrease of $0.6 million, or 4%. The increase during the fourth quarter of 2013 includes the recognition of $0.9 million in interest from the recovery of a nonperforming loan and the reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities. Net interest margin was 3.42% for the fourth quarter of 2013, compared to 3.11% for the third quarter of 2013 and 3.41% for the fourth quarter of 2012. Noncovered loans (including loans held for sale) declined $33.2 million, or 3%, from September 30, 2013, and $98.6 million, or 7%, from December 31, 2012, primarily due to a decline in commercial real estate loans.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a credit (or negative provision) of $6.5 million for the fourth quarter of 2013, compared to a negative provision of $0.3 million for the third quarter of 2013 and a provision of $3.1 million for the fourth quarter of 2012. During the fourth quarter of 2013, recoveries totaled $5.8 million and charge-offs totaled $2.7 million, which had been substantially allowed for in the loan loss reserve. Therefore the fourth quarter of 2013 net recoveries totaled $3.1 million, or (0.96%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.02%) (annualized) of average portfolio loans for the third quarter of 2013, and net charge-offs of $0.1 million, or 0.03% (annualized) of average portfolio loans for the fourth quarter of 2012.
Noninterest Income: Noninterest income totaled $3.1 million for the fourth quarter, compared to $3.5 million for the third quarter of 2013, and compared to $4.9 million for the fourth quarter of 2012.
The $0.5 million decrease from third quarter of 2013 is primarily due to the $0.3 million decline in other noninterest income, which included a legal settlement that was received in the third quarter of 2013, and the $0.2 million decline in gain on sale of loans.
The $1.8 million decrease from fourth quarter 2012 includes a $0.8 million decrease in gain on investment securities, a $0.5 million decrease in the gain on sales of loans, a $0.3 million decrease in service charges and fees, and a $0.1 million decrease in other noninterest income.
Noninterest Expense: Noninterest expense totaled $15.1 million for the fourth quarter of 2013, compared to $13.0 million for the third quarter of 2013 and $17.7 million for the fourth quarter of 2012.
The $2.0 million increase in noninterest expense from third quarter of 2013 primarily consists of a $1.4 million increase in general and administrative expense, which primarily consists of increased legal fees and increased marketing and other miscellaneous expenses associated with our recent charter consolidation and rebranding of our subsidiary bank. Also included in the increase from third quarter of 2013 is a $0.7 million increase in other real estate expense and a $0.4 million increase in personnel expense, offset in part by a $0.6 million decrease in the provision for unfunded loan commitments.
The $2.6 million decrease in noninterest expense from fourth quarter of 2012 consists of a $2.5 million decrease in other real estate expense due to decreased expenses and write-downs as a result of fewer other real estate properties. Also included in the decline from fourth quarter of 2012 is a $0.8 million decrease in provision for unfunded loan commitments, offset in part by a $0.6 million increase in general and administrative expense, which is primarily the result of increased legal fees, and marketing expenses and miscellaneous expenses associated with our charter consolidation and rebranding of our subsidiary bank.
Income Tax: Income tax expense totaled $4.3 million for the fourth quarter of 2013, compared to $2.3 million for the third quarter of 2013 and $0.4 million for the fourth quarter of 2012. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2013 effective tax rate was 38.68%.
Year-to-date Results:
Summary: Net income available to common shareholders was $17.4 million for the year ended December 31, 2013, compared to $12.4 million for the year ended December 31, 2012. The $5.0 million increase in our net income available to common shareholders from December 31, 2012 is primarily due to improved asset quality and recoveries resulting in a decrease in the provision of loan losses of $10.3 million and a reduction in noninterest expense of $8.0 million due largely to lower other real estate expenses. These improvements were partially offset by the decline in net interest income due to lower loan volumes and lower noninterest income. Southwest's effective tax rate was 38.15% in 2013 versus 37.91% in 2012. Southwest also paid dividends on its preferred stock of $3.7 million in 2012 before it was redeemed in August 2012.
Net Interest Income: Net interest income totaled $62.7 million for 2013, compared to $76.6 million for 2012, a decrease of $13.9 million, or 18%. Lower average loan volume was the primary cause of this decrease. Year-to-date net interest margin was 3.19%, compared to 3.64% for 2012. With the rate environment remaining low, earning assets are repricing at lower rates.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount of expense that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs for the period. The provision for loan losses was a credit (or negative provision) of $7.2 million for 2013, compared to an expense of $3.1 million for 2012. Net charge-offs totaled $2.8 million, or 0.22% (annualized) of average portfolio loans as of December 31, 2013, compared to $1.1 million, or 0.07% (annualized) of average portfolio loans as of December 31, 2012.
Noninterest Income: Noninterest income totaled $13.6 million for 2013, compared to $15.9 million for 2012. The decrease consists of a $1.1 million decline in service charges and fees, a $0.8 million decline in gain on investment securities, and a $0.5 million decrease in gain on sale of loans.
Noninterest Expense: Noninterest expense totaled $55.3 million for 2013, compared to $63.3 million for 2012. The decrease consists of a $7.7 million decrease in other real estate expense, which is primarily due to net gains recognized on the sale of other real estate properties combined with decreased expenses associated with other real estate properties. Also included in the decline is a $1.0 million decrease in general and administrative expense, which is primarily the result of lower legal fees, consulting fees, other loan costs, and bank exam fees, a $0.8 million decrease in FDIC and other insurance expense, and a $0.7 million decrease in provision for unfunded loan commitments, offset in part by a $2.0 million increase in personnel expense and a $0.2 million increase in occupancy expense, primarily increased data processing charges.
Income Tax: Income tax expense totaled $10.8 million for 2013, compared to $9.9 million for 2012. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 38.15% as of December 31, 2013.
Conference Call
Southwest will host a conference call to review these results on Wednesday, January 22, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may access the call by telephone at 888-317-6016 (toll-free) or 412-317-6016 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest's website at www.oksb.com or http://services.choruscall.com/links/oksb140122.html. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10038921. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 6, 2014.
Southwest Bancorp and Subsidiaries
Southwest is the bank holding company for Bank SNB, National Association ("Bank SNB"). Through Bank SNB, commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services are offered from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2013, Southwest had total assets of $2.0 billion, deposits of $1.6 billion, and shareholders' equity of $259.2 million.
Southwest's area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its subsidiary 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 December 31, 2013, approximately $417.4 million, or 33%, of noncovered loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of current and potential healthcare lending business and the appropriate concentrations within healthcare based upon economic and regulatory conditions.
Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.
Caution About Forward-Looking Statements
Southwest makes forward-looking statements in this news release that are subject to risks and uncertainties. These statements are intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include:
- Statements of Southwest's goals, intentions, and expectations;
- Estimates of risks and of future costs and benefits;
- Expectations regarding Southwest's future financial performance and the financial performance of its operating segments;
- Expectations regarding regulatory actions;
- Expectations regarding Southwest's ability to utilize tax loss benefits;
- Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs;
- Estimates of the value of assets held for sale or available for sale; and
- Statements of 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, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors".
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. Southwest does not intend, and undertakes no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of December 31, 2013 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2013 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
| 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 Loan Data | Table 6 |
| Unaudited Quarterly Summary Financial Data | Table 7 |
| Unaudited Quarterly Supplemental Analytical Data | Table 8 |
| SOUTHWEST BANCORP, INC. | Table 1 | ||||
| UNAUDITED FINANCIAL HIGHLIGHTS | |||||
| (Dollars in thousands, except per share) | |||||
| Fourth Quarter | Third Quarter | Fourth Quarter | |||
| QUARTERLY HIGHLIGHTS | 2013 | % Change | 2012 | % Change | |
| Operations | |||||
| Net interest income | $ 16,637 | $ 15,273 | 9 % | $17,285 | (4)% |
| Provision for loan losses | (6,502) | (329) | 1,876 | 3,085 | (311) |
| Noninterest income | 3,068 | 3,547 | (14) | 4,871 | (37) |
| Noninterest expense | 15,065 | 13,019 | 16 | 17,653 | (15) |
| Income before taxes | 11,142 | 6,130 | 82 | 1,418 | 686 |
| Taxes on income | 4,310 | 2,330 | 85 | 446 | 866 |
| Net income | 6,832 | 3,800 | 80 | 972 | 603 |
| Net income available to common shareholders | 6,832 | 3,800 | 80 | 972 | 603 |
| Diluted earnings per share | 0.34 | 0.19 | 79 | 0.05 | 580 |
| Balance Sheet | |||||
| Total assets | 1,981,423 | 1,972,367 | 0 | 2,122,255 | (7) |
| Loans held for sale | 3,060 | 3,641 | (16) | 31,682 | (90) |
| Noncovered portfolio loans | 1,251,416 | 1,284,004 | (3) | 1,321,346 | (5) |
| Covered portfolio loans | 16,427 | 18,980 | (13) | 25,707 | (36) |
| Total deposits | 1,584,086 | 1,583,791 | 0 | 1,709,578 | (7) |
| Total shareholders' equity | 259,187 | 252,802 | 3 | 246,056 | 5 |
| Book value per common share | 13.13 | 12.83 | 2 | 12.60 | 4 |
| Key Ratios | |||||
| Net interest margin | 3.42% | 3.11% | 3.41% | ||
| Efficiency ratio | 76.45 | 69.18 | 79.68 | ||
| Total capital to risk-weighted assets | 21.59 | 21.52 | 21.56 | ||
| Nonperforming loans to portfolio loans - noncovered | 1.49 | 2.27 | 2.91 | ||
| Shareholders' equity to total assets | 13.08 | 12.82 | 11.59 | ||
| Tangible common equity to tangible assets* | 13.03 | 12.76 | 11.54 | ||
| Return on average assets (annualized) | 1.37 | 0.75 | 0.18 | ||
| Return on average common equity (annualized) | 10.59 | 5.99 | 1.56 | ||
| Return on average tangible common equity (annualized)** | 10.64 | 6.02 | 1.56 | ||
| Year | |||||
| YEAR-TO-DATE HIGHLIGHTS | 2013 | 2012 | % Change | ||
| Operations | |||||
| Net interest income | $ 62,650 | $ 76,563 | (18)% | ||
| Provision for loan losses | (7,209) | 3,107 | (332) | ||
| Noninterest income | 13,643 | 15,936 | (14) | ||
| Noninterest expense | 55,311 | 63,322 | (13) | ||
| Income before taxes | 28,191 | 26,070 | 8 | ||
| Taxes on income | 10,756 | 9,883 | 9 | ||
| Net income | 17,435 | 16,187 | 8 | ||
| Net income available to common shareholders | 17,435 | 12,446 | 40 | ||
| Diluted earnings per share | 0.88 | 0.64 | 38 | ||
| Balance Sheet | |||||
| Total assets | 1,981,423 | 2,122,255 | (7) | ||
| Loans held for sale | 3,060 | 31,682 | (90) | ||
| Noncovered portfolio loans | 1,251,416 | 1,321,346 | (5) | ||
| Covered portfolio loans | 16,427 | 25,707 | (36) | ||
| Total deposits | 1,584,086 | 1,709,578 | (7) | ||
| Total shareholders' equity | 259,187 | 246,056 | 5 | ||
| Book value per common share | 13.13 | 12.60 | 4 | ||
| Key Ratios | |||||
| Net interest margin | 3.19% | 3.64% | |||
| Efficiency ratio (GAAP-based) | 72.50 | 68.46 | |||
| Total capital to risk-weighted assets | 21.59 | 21.56 | |||
| Nonperforming loans to portfolio loans - noncovered | 1.49 | 2.91 | |||
| Shareholders' equity to total assets | 13.08 | 11.59 | |||
| Tangible common equity to tangible assets* | 13.03 | 11.54 | |||
| Return on average assets (annualized) | 0.86 | 0.72 | |||
| Return on average common equity (annualized) | 6.90 | 5.14 | |||
| Return on average tangible common equity (annualized)** | 6.94 | 5.16 | |||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. |
| * This is a Non-GAAP financial measure. Please see Table 8 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) | ||
| December 31, | December 31, | |
| 2013 | 2012 | |
| Assets | ||
| Cash and due from banks | $ 28,062 | $ 45,045 |
| Interest-bearing deposits | 251,777 | 243,034 |
| Cash and cash equivalents | 279,839 | 288,079 |
| Securities held to maturity (fair values of $12,115. and $13,659, respectively) | 11,720 | 12,797 |
| Securities available for sale (amortized cost of $385,423, and $358,317, respectively) | 382,479 | 364,315 |
| Loans held for sale | 3,060 | 31,682 |
| Noncovered loans receivable | 1,251,416 | 1,321,346 |
| Less: Allowance for loan losses | (36,607) | (46,494) |
| Net noncovered loans receivable | 1,214,809 | 1,274,852 |
| Covered loans receivable (includes loss share: $1,812 and $6,714, respectively) | 16,427 | 25,707 |
| Less: Allowance for loan losses | (56) | (224) |
| Net covered loans receivable | 16,371 | 25,483 |
| Net loans receivable | 1,231,180 | 1,300,335 |
| Accrued interest receivable | 5,335 | 6,365 |
| Income tax receivable | -- | 24,525 |
| Premises and equipment, net | 20,833 | 21,691 |
| Noncovered other real estate | 560 | 11,315 |
| Covered other real estate | 2,094 | 3,643 |
| Goodwill | 1,214 | 1,214 |
| Other intangible assets, net | 4,980 | 4,864 |
| Other assets | 38,129 | 51,430 |
| Total assets | $ 1,981,423 | $ 2,122,255 |
| Liabilities | ||
| Deposits: | ||
| Noninterest-bearing demand | $ 444,796 | $ 424,008 |
| Interest-bearing demand | 120,156 | 112,012 |
| Money market accounts | 439,981 | 423,417 |
| Savings accounts | 41,727 | 37,693 |
| Time deposits of $100,000 or more | 251,185 | 351,273 |
| Other time deposits | 286,241 | 361,175 |
| Total deposits | 1,584,086 | 1,709,578 |
| Accrued interest payable | 832 | 1,116 |
| Income tax payable | 78 | -- |
| Other liabilities | 10,215 | 13,180 |
| Other borrowings | 80,632 | 70,362 |
| Subordinated debentures | 46,393 | 81,963 |
| Total liabilities | 1,722,236 | 1,876,199 |
| Shareholders' equity | ||
| Common stock -- $1 par value; 40,000,000 shares authorized; 19,732,926, and 19,529,705, shares issued and outstanding, respectively | 19,733 | 19,530 |
| Additional paid-in capital | 99,937 | 99,705 |
| Retained earnings | 142,528 | 125,093 |
| Accumulated other comprehensive income (loss) | (3,011) | 1,728 |
| Total shareholders' equity | 259,187 | 246,056 |
| Total liabilities and shareholders' equity | $ 1,981,423 | $ 2,122,255 |
| SOUTHWEST BANCORP, INC. | Table 3 | ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (Dollars in thousands, except per share) | |||||
| For the three months ended | For the year | ||||
| December 31, | September 30, | December 31, | ended December 31, | ||
| 2013 | 2013 | 2012 | 2013 | 2012 | |
| Interest income | |||||
| Loans | $ 16,499 | $ 16,242 | $ 19,021 | $ 66,162 | $ 84,602 |
| Investment securities | 1,747 | 1,623 | 1,796 | 6,655 | 7,814 |
| Other interest-earning assets | 332 | 270 | 191 | 1,097 | 755 |
| Total interest income | 18,578 | 18,135 | 21,008 | 73,914 | 93,171 |
| Interest expense | |||||
| Interest-bearing deposits | 1,148 | 1,317 | 2,014 | 5,559 | 9,703 |
| Other borrowings | 225 | 225 | 224 | 892 | 895 |
| Subordinated debentures | 568 | 1,320 | 1,485 | 4,813 | 6,010 |
| Total interest expense | 1,941 | 2,862 | 3,723 | 11,264 | 16,608 |
| Net interest income | 16,637 | 15,273 | 17,285 | 62,650 | 76,563 |
| Provision for loan losses | (6,502) | (329) | 3,085 | (7,209) | 3,107 |
| Net interest income after provision for loan losses | 23,139 | 15,602 | 14,200 | 69,859 | 73,456 |
| Noninterest income | |||||
| Service charges and fees | 2,635 | 2,589 | 2,971 | 10,491 | 11,559 |
| Gain on sales of loans | 385 | 619 | 910 | 2,649 | 3,133 |
| Gain on investment securities | -- | -- | 802 | -- | 837 |
| Other noninterest income | 48 | 339 | 188 | 503 | 407 |
| Total noninterest income | 3,068 | 3,547 | 4,871 | 13,643 | 15,936 |
| Noninterest expense | |||||
| Salaries and employee benefits | 8,057 | 7,645 | 7,956 | 31,877 | 29,919 |
| Occupancy | 2,805 | 2,721 | 2,672 | 10,779 | 10,581 |
| FDIC and other insurance | 460 | 413 | 510 | 1,764 | 2,531 |
| Other real estate, net | 330 | (387) | 2,867 | (1,098) | 6,565 |
| General and administrative | 3,413 | 2,627 | 3,648 | 11,989 | 13,726 |
| Total noninterest expense | 15,065 | 13,019 | 17,653 | 55,311 | 63,322 |
| Income before taxes | 11,142 | 6,130 | 1,418 | 28,191 | 26,070 |
| Taxes on income | 4,310 | 2,330 | 446 | 10,756 | 9,883 |
| Net income | $ 6,832 | $ 3,800 | $ 972 | $ 17,435 | $ 16,187 |
| Net income available to common shareholders | $ 6,832 | $ 3,800 | $ 972 | $ 17,435 | $ 12,446 |
| Basic earnings per common share | $ 0.34 | $ 0.19 | $ 0.05 | $ 0.88 | $ 0.64 |
| Diluted earnings per common share | 0.34 | 0.19 | 0.05 | 0.88 | 0.64 |
| Common dividends declared per share | -- | -- | -- | -- | -- |
| SOUTHWEST BANCORP, INC. | Table 4 | |||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY | ||||||
| (Dollars in thousands) | ||||||
| For the three months ended | ||||||
| December 31, 2013 | September 30, 2013 | |||||
| Average | Average | Average | Average | |||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |
| Assets | ||||||
| Noncovered loans | $ 1,270,307 | $16,186 | 5.06% | $ 1,277,747 | $15,837 | 4.92% |
| Covered loans | 18,180 | 313 | 6.83 | 20,271 | 405 | 7.93 |
| Investment securities | 390,160 | 1,747 | 1.78 | 364,746 | 1,623 | 1.76 |
| Other interest-earning assets | 253,327 | 332 | 0.52 | 287,968 | 270 | 0.37 |
| Total interest-earning assets | 1,931,974 | 18,578 | 3.82 | 1,950,732 | 18,135 | 3.69 |
| Other assets | 47,369 | 57,622 | ||||
| Total assets | $ 1,979,343 | $ 2,008,354 | ||||
| Liabilities and Shareholders' Equity | ||||||
| Interest-bearing demand deposits | $ 111,744 | $ 31 | 0.11% | $ 117,124 | $ 35 | 0.12% |
| Money market accounts | 426,090 | 182 | 0.17 | 416,839 | 182 | 0.17 |
| Savings accounts | 41,021 | 10 | 0.10 | 38,992 | 10 | 0.10 |
| Time deposits | 555,762 | 925 | 0.66 | 600,321 | 1,090 | 0.72 |
| Total interest-bearing deposits | 1,134,617 | 1,148 | 0.40 | 1,173,276 | 1,317 | 0.45 |
| Other borrowings | 78,933 | 225 | 1.13 | 75,822 | 225 | 1.18 |
| Subordinated debentures | 46,393 | 568 | 4.90 | 75,004 | 1,320 | 7.04 |
| Total interest-bearing liabilities | 1,259,943 | 1,941 | 0.61 | 1,324,102 | 2,862 | 0.86 |
| Noninterest-bearing demand deposits | 452,849 | 422,203 | ||||
| Other liabilities | 10,564 | 10,319 | ||||
| Shareholders' equity | 255,987 | 251,730 | ||||
| Total liabilities and shareholders' equity | $ 1,979,343 | $ 2,008,354 | ||||
| Net interest income and spread | $16,637 | 3.21% | $15,273 | 2.83% | ||
| Net interest margin (1) | 3.42% | 3.11% | ||||
| Average interest-earning assets to average interest-bearing liabilities | 153.34% | 147.32% | ||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets |
| SOUTHWEST BANCORP, INC. | Table 5 | |||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - YEAR-TO-DATE | ||||||
| (Dollars in thousands) | ||||||
| For the year ended December 31, | ||||||
| 2013 | 2012 | |||||
| Average | Average | Average | Average | |||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |
| Assets | ||||||
| Noncovered loans | $ 1,293,596 | $ 64,555 | 4.99% | $ 1,536,494 | $ 82,288 | 5.36% |
| Covered loans | 21,405 | 1,607 | 7.51 | 30,824 | 2,314 | 7.51 |
| Investment securities | 377,460 | 6,655 | 1.76 | 350,021 | 7,814 | 2.23 |
| Other interest-earning assets | 272,940 | 1,097 | 0.40 | 187,478 | 755 | 0.40 |
| Total interest-earning assets | 1,965,401 | 73,914 | 3.76 | 2,104,817 | 93,171 | 4.43 |
| Other assets | 63,865 | 138,929 | ||||
| Total assets | $ 2,029,266 | $ 2,243,746 | ||||
| Liabilities and Shareholders' Equity | ||||||
| Interest-bearing demand deposits | $ 122,106 | $ 148 | 0.12% | $ 114,974 | $ 219 | 0.19% |
| Money market accounts | 420,767 | 790 | 0.19 | 381,292 | 1,077 | 0.28 |
| Savings accounts | 39,397 | 44 | 0.11 | 35,741 | 53 | 0.15 |
| Time deposits | 617,824 | 4,577 | 0.74 | 842,979 | 8,354 | 0.99 |
| Total interest-bearing deposits | 1,200,094 | 5,559 | 0.46 | 1,374,986 | 9,703 | 0.71 |
| Other borrowings | 74,115 | 892 | 1.20 | 61,822 | 895 | 1.45 |
| Subordinated debentures | 71,243 | 4,813 | 6.76 | 81,963 | 6,010 | 7.33 |
| Total interest-bearing liabilities | 1,345,452 | 11,264 | 0.84 | 1,518,771 | 16,608 | 1.09 |
| Noninterest-bearing demand deposits | 420,347 | 396,091 | ||||
| Other liabilities | 10,925 | 45,368 | ||||
| Shareholders' equity | 252,542 | 283,516 | ||||
| Total liabilities and shareholders' equity | $ 2,029,266 | $ 2,243,746 | ||||
| Net interest income and spread | $ 62,650 | 2.92% | $ 76,563 | 3.34% | ||
| Net interest margin (1) | 3.19% | 3.64% | ||||
| Average interest-earning assets to average interest-bearing liabilities | 146.08% | 138.59% | ||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets |
| SOUTHWEST BANCORP, INC. | Table 6 | |||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | ||||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| LOAN COMPOSITION | ||||||||
| Noncovered: | ||||||||
| Real estate mortgage: | ||||||||
| Commercial | $ 740,997 | $ 743,858 | $ 786,686 | $ 819,873 | $ 870,977 | $ 898,453 | $ 931,239 | $ 996,486 |
| One-to-four family residential | 80,058 | 80,561 | 77,445 | 73,911 | 70,952 | 74,081 | 74,390 | 76,287 |
| Real estate construction: | ||||||||
| Commercial | 143,650 | 162,995 | 158,907 | 139,462 | 130,753 | 206,342 | 211,098 | 222,678 |
| One-to-four family residential | 4,646 | 4,464 | 5,241 | 5,015 | 3,656 | 3,438 | 4,184 | 3,814 |
| Commercial | 254,087 | 263,598 | 235,667 | 232,224 | 240,498 | 244,018 | 263,085 | 273,324 |
| Installment and consumer: | ||||||||
| Guaranteed student loans | 4,394 | 4,471 | 4,520 | 4,576 | 4,680 | 4,872 | 5,153 | 5,276 |
| Other | 26,644 | 27,698 | 27,977 | 28,553 | 31,512 | 32,710 | 33,555 | 31,766 |
| Total noncovered loans, including held for sale | 1,254,476 | 1,287,645 | 1,296,443 | 1,303,614 | 1,353,028 | 1,463,914 | 1,522,704 | 1,609,631 |
| Less allowance for loan losses | (36,607) | (40,013) | (40,270) | (42,639) | (46,494) | (43,607) | (43,807) | (45,023) |
| Total noncovered loans, net | $ 1,217,869 | $ 1,247,632 | $ 1,256,173 | $ 1,260,975 | $ 1,306,534 | $ 1,420,307 | $ 1,478,897 | $ 1,564,608 |
| Covered: | ||||||||
| Real estate mortgage: | ||||||||
| Commercial | $ 11,282 | $ 13,577 | $ 15,452 | $ 16,970 | $ 18,298 | $ 20,664 | $ 21,472 | $ 22,607 |
| One-to-four family residential | 3,930 | 4,084 | 4,253 | 4,458 | 4,881 | 5,059 | 5,432 | 5,766 |
| Real estate construction: | ||||||||
| Commercial | 198 | 312 | 320 | 367 | 382 | 419 | 1,627 | 2,344 |
| Commercial | 971 | 967 | 1,554 | 1,715 | 2,037 | 1,937 | 2,033 | 2,401 |
| Installment and consumer | 46 | 40 | 67 | 91 | 109 | 118 | 148 | 196 |
| Total covered loans | 16,427 | 18,980 | 21,646 | 23,601 | 25,707 | 28,197 | 30,712 | 33,314 |
| Less allowance for loan losses | (56) | (68) | (82) | (214) | (224) | (138) | (91) | (60) |
| Total covered loans, net | $ 16,371 | $ 18,912 | $ 21,564 | $ 23,387 | $ 25,483 | $ 28,059 | $ 30,621 | $ 33,254 |
| LOANS BY SEGMENT | ||||||||
| Oklahoma banking | $ 681,999 | $ 681,749 | $ 656,356 | $ 628,747 | $ 652,121 | $ 704,916 | $ 751,758 | $ 810,217 |
| Texas banking | 366,697 | 414,433 | 444,327 | 495,815 | 520,481 | 560,197 | 588,370 | 616,455 |
| Kansas banking | 198,992 | 206,802 | 210,189 | 195,355 | 174,451 | 192,249 | 189,292 | 177,508 |
| Subtotal | 1,247,688 | 1,302,984 | 1,310,872 | 1,319,917 | 1,347,053 | 1,457,362 | 1,529,420 | 1,604,180 |
| Secondary market | 23,215 | 3,641 | 7,217 | 7,298 | 31,682 | 34,749 | 23,996 | 38,765 |
| Total loans | $ 1,270,903 | $ 1,306,625 | $ 1,318,089 | $ 1,327,215 | $ 1,378,735 | $ 1,492,111 | $ 1,553,416 | $ 1,642,945 |
| NONPERFORMING LOANS BY TYPE | ||||||||
| Construction & development | $ 2,721 | $ 5,659 | $ 5,989 | $ 6,409 | $ 3,355 | $ 3,436 | $ 3,608 | $ 3,768 |
| Commercial real estate | 6,564 | 12,203 | 12,325 | 13,362 | 18,337 | 20,576 | 4,932 | 6,821 |
| Commercial | 8,819 | 10,887 | 10,719 | 11,861 | 15,232 | 1,791 | 10,878 | 2,209 |
| One-to-four family residential | 456 | 396 | 418 | 651 | 1,310 | 949 | 1,125 | 1,508 |
| Consumer | 53 | 55 | 64 | 73 | 160 | 131 | 176 | 118 |
| Total nonperforming loans - noncovered | $ 18,613 | $ 29,200 | $ 29,515 | $ 32,356 | $ 38,394 | $ 26,883 | $ 20,719 | $ 14,424 |
| NONPERFORMING LOANS BY SEGMENT | ||||||||
| Oklahoma banking | $ 5,547 | $ 3,279 | $ 1,678 | $ 2,000 | $ 2,956 | $ 4,369 | $ 2,979 | $ 3,550 |
| Texas banking | 11,902 | 24,963 | 26,294 | 28,817 | 33,756 | 19,940 | 14,894 | 5,703 |
| Kansas banking | 1,164 | 958 | 1,543 | 1,539 | 1,682 | 2,574 | 2,846 | 5,171 |
| Total nonperforming loans - noncovered | $ 18,613 | $ 29,200 | $ 29,515 | $ 32,356 | $ 38,394 | $ 26,883 | $ 20,719 | $ 14,424 |
| OTHER REAL ESTATE BY TYPE | ||||||||
| Construction & development | $ -- | $ 676 | $ 145 | $ 215 | $ 215 | $ 445 | $ 2,585 | $ 3,542 |
| Commercial real estate | 560 | -- | -- | 9,207 | 11,003 | 14,130 | 14,129 | 14,854 |
| One-to-four family residential | -- | -- | -- | -- | 97 | 108 | 549 | 933 |
| Total other real estate - noncovered | $ 560 | $ 676 | $ 145 | $ 9,422 | $ 11,315 | $ 14,683 | $ 17,263 | $ 19,329 |
| Continued | ||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | |||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | |||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| OTHER REAL ESTATE BY SEGMENT | ||||||||
| Oklahoma banking | $ -- | $ -- | $ -- | $ 1,980 | $ 3,393 | $ 6,178 | $ 6,178 | $ 6,273 |
| Texas banking | -- | -- | -- | 7,227 | 7,227 | 7,227 | 9,162 | 9,846 |
| Kansas banking | 560 | 676 | 145 | 215 | 695 | 1,278 | 1,923 | 3,210 |
| Total other real estate - noncovered | $ 560 | $ 676 | $ 145 | $ 9,422 | $ 11,315 | $ 14,683 | $ 17,263 | $ 19,329 |
| POTENTIAL PROBLEM LOANS BY TYPE | ||||||||
| Construction & development | 21,501 | 22,222 | 20,745 | 19,968 | 22,077 | 22,565 | 25,563 | 33,907 |
| Commercial real estate | 68,951 | 62,475 | 62,166 | 60,329 | 58,549 | 53,725 | 71,537 | 67,654 |
| Commercial | 7,107 | 10,028 | 10,136 | 8,220 | 12,526 | 9,305 | 12,753 | 23,506 |
| One-to-four family residential | 488 | 414 | 1,071 | 1,129 | 1,147 | 1,157 | 1,230 | 1,253 |
| Consumer | -- | -- | -- | -- | 62 | -- | -- | -- |
| Total potential problem loans - noncovered | $ 98,047 | $ 95,139 | $ 94,118 | $ 89,646 | $ 94,361 | $ 86,752 | $ 111,083 | $ 126,320 |
| POTENTIAL PROBLEM LOANS BY SEGMENT | ||||||||
| Oklahoma banking | $ 29,005 | $ 31,345 | $ 31,495 | $ 32,246 | $ 30,875 | $ 39,606 | $ 48,038 | $ 44,122 |
| Texas banking | 65,079 | 59,561 | 58,710 | 51,978 | 58,377 | 43,313 | 59,368 | 79,735 |
| Kansas banking | 3,963 | 4,233 | 3,913 | 5,422 | 5,109 | 3,833 | 3,677 | 2,463 |
| Total potential problem loans - noncovered | $ 98,047 | $ 95,139 | $ 94,118 | $ 89,646 | $ 94,361 | $ 86,752 | $ 111,083 | $ 126,320 |
| LOANS OUT OF MARKET | ||||||||
| Net balance of loans out of market: | ||||||||
| Iowa | $ 22,316 | $ 22,438 | $ 22,537 | $ 22,659 | $ 22,826 | $ 22,958 | $ 23,022 | $ 23,130 |
| Arizona | 19,458 | 30,516 | 31,564 | 33,017 | 40,326 | 41,255 | 39,449 | 34,749 |
| North Carolina | 13,070 | 10,161 | 300 | 407 | 65 | 604 | 682 | 771 |
| Colorado | 12,553 | 12,358 | 8,586 | 3,067 | 3,110 | 3,119 | 3,111 | 3,104 |
| Kentucky | 12,404 | 10,088 | 11,860 | 10,144 | 8,691 | 7,517 | 9,455 | 517 |
| California | 9,154 | 9,472 | 9,632 | 10,866 | 9,791 | 9,684 | 9,922 | 10,252 |
| Mississippi | 8,823 | 8,929 | 9,233 | 9,170 | 9,239 | 9,842 | -- | -- |
| Tennessee | 6,048 | 6,136 | 6,171 | 6,246 | 6,204 | 6,232 | 6,310 | 6,368 |
| Ohio | 3,549 | 3,294 | 4,759 | 4,132 | 10,438 | 11,182 | 11,502 | 12,650 |
| Pennsylvania | 3,109 | 3,299 | 3,441 | 44 | -- | -- | -- | -- |
| Other | 12,171 | 24,562 | 27,225 | 28,285 | 32,975 | 33,448 | 33,795 | 31,349 |
| Total loans out of market | $ 122,655 | $ 141,253 | $ 135,308 | $ 128,037 | $ 143,665 | $ 145,841 | $ 137,248 | $ 122,890 |
| Nonperforming loans out of market: | ||||||||
| Arizona | $ 9,302 | $ 11,205 | $ 12,167 | $ 13,419 | $ 11,599 | $ 250 | $ 256 | $ 261 |
| New York | -- | 1,033 | 1,048 | -- | -- | -- | -- | -- |
| Florida | 252 | 258 | 264 | 270 | 275 | 281 | 287 | 293 |
| Colorado | -- | -- | -- | 131 | 131 | 131 | 131 | 131 |
| Other | -- | -- | 1 | -- | 59 | -- | -- | -- |
| Total nonperforming out of market | $ 9,554 | $ 12,496 | $ 13,480 | $ 13,820 | $ 12,064 | $ 662 | $ 674 | $ 685 |
| Potential problem loans out of market: | ||||||||
| Iowa | $ 11,568 | $ 11,645 | $ 11,719 | $ 11,792 | $ 11,868 | $ 11,941 | $ 11,970 | $ 12,035 |
| New Jersey | 1,094 | 1,170 | 1,244 | -- | -- | -- | -- | -- |
| California | 482 | 499 | 512 | 524 | 536 | 548 | 559 | 570 |
| Florida | 66 | 71 | 75 | 80 | 85 | 90 | 95 | 100 |
| Arizona | -- | -- | -- | -- | 9,037 | -- | -- | -- |
| Total potential problem out of market | $ 13,210 | $ 13,385 | $ 13,550 | $ 12,396 | $ 21,526 | $ 12,579 | $ 12,624 | $ 12,705 |
| Continued | ||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | |||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | |||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| ALLOWANCE ACTIVITY | ||||||||
| Balance, beginning of period | $ 40,081 | $ 40,352 | $ 42,853 | $ 46,718 | $ 43,745 | $ 43,898 | $ 45,083 | $ 44,684 |
| Charge offs | 2,681 | 600 | 2,072 | 4,651 | 722 | 2,653 | 2,229 | 1,936 |
| Recoveries | 5,765 | 658 | 447 | 288 | 610 | 4,226 | 1,012 | 619 |
| Net charge offs (recoveries) | (3,084) | (58) | 1,625 | 4,363 | 112 | (1,573) | 1,217 | 1,317 |
| Provision for loan losses | (6,502) | (329) | (876) | 498 | 3,085 | (1,726) | 32 | 1,716 |
| Balance, end of period | $ 36,663 | $ 40,081 | $ 40,352 | $ 42,853 | $ 46,718 | $ 43,745 | $ 43,898 | $ 45,083 |
| NET CHARGE OFFS BY TYPE | ||||||||
| Construction & development | (4,845) | (20) | 111 | (19) | (22) | (1,823) | (85) | (42) |
| Commercial real estate | (62) | 274 | 7 | 416 | (18) | 2,022 | 91 | 14 |
| Commercial | 1,883 | (169) | 1,085 | 3,751 | 239 | (1,894) | 1,228 | 1,211 |
| One-to-four family residential | (40) | (165) | 363 | 167 | (40) | 20 | (105) | 123 |
| Consumer | (20) | 22 | 59 | 48 | (47) | 102 | 88 | 11 |
| Total net charge offs (recoveries) by type | $ (3,084) | $ (58) | $ 1,625 | $ 4,363 | $ 112 | $ (1,573) | $ 1,217 | $ 1,317 |
| NET CHARGE OFFS BY SEGMENT | ||||||||
| Oklahoma banking | $ (1,294) | $ (203) | $ 200 | $ 589 | $ (261) | $ 5 | $ (247) | $ 1,150 |
| Texas banking | (2,314) | (80) | 1,356 | 3,241 | 305 | 857 | 1,139 | 227 |
| Kansas banking | 524 | 225 | 69 | 533 | 68 | (2,435) | 325 | (60) |
| Total net charge offs (recoveries) by segment | $ (3,084) | $ (58) | $ 1,625 | $ 4,363 | $ 112 | $ (1,573) | $ 1,217 | $ 1,317 |
| SOUTHWEST BANCORP, INC. | Table 7 | |||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | ||||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| PER SHARE DATA | ||||||||
| Basic earnings per common share | $ 0.34 | $ 0.19 | $ 0.22 | $ 0.12 | $ 0.05 | $ 0.22 | $ 0.15 | $ 0.21 |
| Diluted earnings per common share | 0.34 | 0.19 | 0.22 | 0.12 | 0.05 | 0.22 | 0.15 | 0.21 |
| Book value per common share | 13.13 | 12.83 | 12.67 | 12.72 | 12.60 | 12.59 | 12.35 | 12.21 |
| Tangible book value per share* | 13.07 | 12.77 | 12.60 | 12.66 | 12.54 | 12.53 | 12.29 | 12.15 |
| COMMON STOCK | ||||||||
| Shares issued and outstanding | 19,732,926 | 19,703,313 | 19,692,606 | 19,692,038 | 19,529,721 | 19,448,312 | 19,447,202 | 19,445,913 |
| OTHER FINANCIAL DATA | ||||||||
| Investment securities | $ 394,199 | $ 382,001 | $ 372,403 | $ 365,605 | $ 377,112 | $ 381,499 | $ 340,378 | $ 333,860 |
| Loans held for sale | 3,060 | 3,641 | 7,217 | 7,297 | 31,682 | 34,749 | 23,996 | 38,765 |
| Noncovered portfolio loans | 1,251,416 | 1,284,004 | 1,289,226 | 1,296,317 | 1,321,346 | 1,429,165 | 1,498,708 | 1,570,866 |
| Total noncovered loans | 1,254,476 | 1,287,645 | 1,296,443 | 1,303,614 | 1,353,028 | 1,463,914 | 1,522,704 | 1,609,631 |
| Covered portfolio loans | 16,427 | 18,980 | 21,646 | 23,601 | 25,707 | 28,197 | 30,712 | 33,314 |
| Total assets | 1,981,423 | 1,972,367 | 2,031,962 | 2,091,694 | 2,122,255 | 2,151,153 | 2,264,123 | 2,268,264 |
| Total deposits | 1,584,086 | 1,583,791 | 1,615,961 | 1,677,668 | 1,709,578 | 1,743,673 | 1,788,379 | 1,806,780 |
| Other borrowings | 80,632 | 78,663 | 74,334 | 70,872 | 70,362 | 66,694 | 68,477 | 55,139 |
| Subordinated debentures | 46,393 | 46,393 | 81,963 | 81,963 | 81,963 | 81,963 | 81,963 | 81,963 |
| Total shareholders' equity | 259,187 | 252,802 | 249,420 | 250,509 | 246,056 | 244,821 | 309,003 | 306,046 |
| Mortgage servicing portfolio | 390,732 | 383,400 | 368,825 | 356,032 | 343,397 | 329,184 | 305,465 | 301,378 |
| INTANGIBLE ASSET DATA | ||||||||
| Goodwill | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 |
| Core deposit intangible | 2,058 | 2,185 | 2,306 | 2,424 | 2,543 | 2,664 | 2,785 | 2,906 |
| Mortgage servicing rights | 2,922 | 2,837 | 2,675 | 2,445 | 2,321 | 2,122 | 1,975 | 1,952 |
| Total intangible assets | $ 6,194 | $ 6,236 | $ 6,195 | $ 6,083 | $ 6,078 | $ 6,000 | $ 5,974 | $ 6,072 |
| Intangible amortization expense | $ 278 | $ 314 | $ 313 | $ 410 | $ 283 | $ 283 | $ 282 | $ 296 |
| DEPOSIT COMPOSITION | ||||||||
| Non-interest bearing demand | $ 444,796 | $ 436,904 | $ 412,176 | $ 416,979 | $ 424,008 | $ 429,407 | $ 421,083 | $ 395,141 |
| Interest-bearing demand | 120,156 | 106,176 | 138,502 | 125,914 | 112,012 | 113,677 | 119,929 | 119,759 |
| Money market accounts | 439,981 | 423,720 | 408,145 | 437,629 | 423,417 | 385,296 | 361,839 | 349,419 |
| Savings accounts | 41,727 | 39,727 | 38,611 | 39,733 | 37,693 | 36,461 | 35,610 | 34,679 |
| Time deposits of $100,000 or more | 251,185 | 270,916 | 295,179 | 317,270 | 351,273 | 389,969 | 431,317 | 464,876 |
| Other time deposits | 286,241 | 306,348 | 323,348 | 340,143 | 361,175 | 388,863 | 418,601 | 442,906 |
| Total deposits** | $ 1,584,086 | $ 1,583,791 | $ 1,615,961 | $ 1,677,668 | $ 1,709,578 | $ 1,743,673 | $ 1,788,379 | $ 1,806,780 |
| OFFICES AND EMPLOYEES | ||||||||
| FTE Employees | 402 | 407 | 408 | 412 | 422 | 429 | 430 | 435 |
| Branches | 23 | 23 | 22 | 22 | 22 | 23 | 23 | 23 |
| Loan production offices | 0 | 0 | 1 | 1 | 1 | 2 | 2 | 2 |
| Assets per employee | $ 4,929 | $ 4,846 | $ 4,980 | $ 5,077 | $ 5,029 | $ 5,014 | $ 5,265 | $ 5,214 |
| ____________________ | ||||||||
| *This is a Non-GAAP based financial measure. | ||||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | ||||||||
| Total deposits | $ 1,584,086 | $ 1,583,791 | $ 1,615,961 | $ 1,677,668 | $ 1,709,578 | $ 1,743,673 | $ 1,788,379 | $ 1,806,780 |
| Less: | ||||||||
| Brokered time deposits | 1,347 | 1,343 | 4,904 | 5,760 | 9,865 | 10,197 | 12,238 | 13,307 |
| Other brokered deposits | 3,423 | 3,423 | 3,422 | 3,422 | 3,421 | 4,421 | 4,420 | 6,529 |
| Non-brokered deposits | $ 1,579,316 | $ 1,579,025 | $ 1,607,635 | $ 1,668,486 | $ 1,696,292 | $ 1,729,055 | $ 1,771,721 | $ 1,786,944 |
| Plus: | ||||||||
| Sweep repurchase agreements | 55,631 | 53,663 | 49,334 | 45,872 | 45,362 | 41,694 | 43,477 | 30,139 |
| Core funding | $ 1,634,947 | $ 1,632,688 | $ 1,656,969 | $ 1,714,358 | $ 1,741,654 | $ 1,770,749 | $ 1,815,198 | $ 1,817,083 |
| Balance sheet amounts are as of period end unless otherwise noted. | ||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | |||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | ||||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| PERFORMANCE RATIOS | ||||||||
| Return on average assets (annualized) | 1.37 % | 0.75% | 0.87% | 0.46% | 0.18% | 1.06% | 0.73% | 0.89% |
| Return on average common equity (annualized) | 10.59 | 5.99 | 7.00 | 3.89 | 1.56 | 7.11 | 5.03 | 7.00 |
| Return on average tangible common equity (annualized)* | 10.64 | 6.02 | 7.03 | 3.90 | 1.56 | 7.15 | 5.06 | 7.03 |
| Net interest margin (annualized) | 3.42 | 3.11 | 3.07 | 3.16 | 3.41 | 3.59 | 3.71 | 3.82 |
| Effective tax rate | 38.68 | 38.01 | 33.74 | 43.88 | 31.45 | 39.73 | 37.12 | 37.50 |
| Efficiency ratio | 76.45 | 69.18 | 68.93 | 75.16 | 79.68 | 64.47 | 71.82 | 58.73 |
| NONPERFORMING ASSETS | ||||||||
| Noncovered: | ||||||||
| Nonaccrual loans | $ 18,560 | $ 29,198 | $ 29,513 | $ 32,356 | $ 35,104 | $ 26,493 | $ 20,474 | $ 14,324 |
| 90 days past due and accruing | 53 | 2 | 2 | -- | 3,290 | 390 | 245 | 100 |
| Total nonperforming loans | 18,613 | 29,200 | 29,515 | 32,356 | 38,394 | 26,883 | 20,719 | 14,424 |
| Other real estate | 560 | 676 | 145 | 9,422 | 11,315 | 14,683 | 17,263 | 19,329 |
| Total nonperforming assets | $ 19,173 | $ 29,876 | $ 29,660 | $ 41,778 | $ 49,709 | $ 41,566 | $ 37,982 | $ 33,753 |
| Performing restructured | $ 28 | $ 527 | $ 993 | $ 512 | $ 290 | $ 281 | $ 328 | $ 1,700 |
| Potential problem loans | $ 98,047 | $ 95,139 | $ 94,118 | $ 89,646 | $ 94,361 | $ 86,752 | $ 111,083 | $ 126,320 |
| Covered: | ||||||||
| Nonaccrual loans | $ 1,259 | $ 3,480 | $ 3,062 | $ 2,873 | $ 3,595 | $ 4,809 | $ 6,067 | $ 7,015 |
| 90 days past due and accruing | -- | -- | -- | -- | -- | 353 | -- | -- |
| Total nonperforming loans | 1,259 | 3,480 | 3,062 | 2,873 | 3,595 | 5,162 | 6,067 | 7,015 |
| Other real estate | 2,094 | 1,017 | 1,666 | 2,243 | 3,643 | 4,142 | 3,825 | 4,694 |
| Total nonperforming assets | $ 3,353 | $ 4,497 | $ 4,728 | $ 5,116 | $ 7,238 | $ 9,304 | $ 9,892 | $ 11,709 |
| Performing restructured | $ 1,600 | $ 1,733 | $ 1,800 | $ 1,854 | $ 2,523 | $ 2,548 | $ 1,701 | $ -- |
| Potential problem loans | $ 1,703 | $ 2,030 | $ 3,352 | $ 3,986 | $ 3,155 | $ 1,621 | $ 1,573 | $ 553 |
| ASSET QUALITY RATIOS | ||||||||
| Net loan charge-offs to average portfolio loans (annualized) | (0.96)% | (0.02)% | 0.50% | 1.32% | 0.03% | (0.42)% | 0.31% | 0.32% |
| Noncovered: | ||||||||
| Nonperforming assets to portfolio loans and other real estate | 1.53% | 2.33% | 2.30% | 3.20% | 3.73% | 2.88% | 2.51% | 2.12% |
| Nonperforming loans to portfolio loans | 1.49 | 2.27 | 2.29 | 2.50 | 2.91 | 1.88 | 1.38 | 0.92 |
| Allowance for loan losses to portfolio loans | 2.93 | 3.12 | 3.12 | 3.29 | 3.52 | 3.05 | 2.92 | 2.87 |
| Allowance for loan losses to nonperforming loans | 196.67 | 137.03 | 136.44 | 131.78 | 121.10 | 162.21 | 211.43 | 312.14 |
| Covered: | ||||||||
| Nonperforming assets to portfolio loans and other real estate | 18.10% | 22.49% | 20.28% | 19.80% | 24.66% | 28.77% | 28.64% | 30.81% |
| Nonperforming loans to portfolio loans | 7.66 | 18.34 | 14.15 | 12.17 | 13.98 | 18.31 | 19.75 | 21.06 |
| Allowance for loan losses to portfolio loans | 0.34 | 0.36 | 0.38 | 0.91 | 0.87 | 0.49 | 0.30 | 0.18 |
| Allowance for loan losses to nonperforming loans | 4.45 | 1.95 | 2.68 | 7.45 | 6.23 | 2.67 | 1.50 | 0.86 |
| CAPITAL RATIOS | ||||||||
| Average total shareholders' equity to average assets | 12.93% | 12.53% | 12.41% | 11.92% | 11.61% | 12.31% | 13.56% | 12.99% |
| Leverage ratio | 14.86 | 14.78 | 16.10 | 15.59 | 15.01 | 14.49 | 16.84 | 16.20 |
| Tier 1 capital to risk-weighted assets | 20.28 | 20.22 | 22.48 | 22.25 | 20.28 | 19.36 | 22.24 | 21.21 |
| Total capital to risk-weighted assets | 21.59 | 21.52 | 23.78 | 23.54 | 21.56 | 20.64 | 23.52 | 22.49 |
| Tangible common equity to tangible assets*** | 13.03 | 12.76 | 12.22 | 11.93 | 11.54 | 11.33 | 10.56 | 10.42 |
| Continued | ||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | |||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | Continued | |||||||
| (Dollars in thousands, except per share) | ||||||||
| 2013 | 2012 | |||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| REGULATORY CAPITAL DATA | ||||||||
| Tier I capital | $ 292,051 | $ 296,488 | $ 326,831 | $ 324,659 | $ 319,665 | $ 317,665 | $ 382,263 | $ 378,949 |
| Total capital | 310,867 | 315,570 | 345,717 | 343,562 | 339,964 | 338,739 | 404,252 | 401,808 |
| Total risk adjusted assets | 1,439,934 | 1,466,672 | 1,453,878 | 1,459,465 | 1,576,521 | 1,641,121 | 1,719,058 | 1,786,282 |
| Average total assets | 1,964,920 | 2,006,525 | 2,030,064 | 2,082,789 | 2,130,035 | 2,192,579 | 2,269,640 | 2,339,784 |
| ____________________ | ||||||||
| *This is a Non-GAAP based financial measure. | ||||||||
| ***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) | ||||||||
| Total shareholders' equity | $ 259,187 | $ 252,802 | $ 249,420 | $ 250,509 | $ 246,056 | $ 244,821 | $ 309,003 | $ 306,046 |
| Less: | ||||||||
| Goodwill | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 |
| Preferred stock | -- | -- | -- | -- | -- | -- | 68,837 | 68,644 |
| Tangible common equity | $ 257,973 | $ 251,588 | $ 248,206 | $ 249,295 | $ 244,842 | $ 243,607 | $ 238,952 | $ 236,188 |
| Total assets | $ 1,981,423 | $ 1,972,367 | $ 2,031,962 | $ 2,091,694 | $ 2,122,255 | $ 2,151,153 | $ 2,264,123 | $ 2,268,264 |
| Less goodwill | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 |
| Tangible assets | $ 1,980,209 | $ 1,971,153 | $ 2,030,748 | $ 2,090,480 | $ 2,121,041 | $ 2,149,939 | $ 2,262,909 | $ 2,267,050 |
| Tangible common equity to tangible assets | 13.03% | 12.76% | 12.22% | 11.93% | 11.54% | 11.33% | 10.56% | 10.42% |
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | ||||||||