STILLWATER, Okla., Oct. 21, 2014 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB), ("Southwest"), today reported net income for the third quarter of 2014 of $5.3 million, or $0.27 per diluted share, compared to $6.2 million, or $0.31 per diluted share, for the second quarter of 2014. Included in the second quarter of 2014 results was a pre-tax net gain of $4.4 million from the sale of three community bank branches in Anthony, Harper, and Overland Park, Kansas. Net income for the nine months ended September 30, 2014 totaled $15.1 million, or $0.77 per diluted share, compared to $10.6 million, or $0.54 per diluted share, for the nine months ended September 30, 2013.
Southwest announced that its board of directors has approved a quarterly cash dividend of $0.04 per share payable November 14, 2014 to shareholders of record as of October 31, 2014.
Mark Funke, President and CEO, stated, "The third quarter results reflect continued improvement in asset quality, our focus on growing loan and customer relationships, and improved operating efficiencies. Our efforts produced several highlights for the quarter.
- Loan growth in the third quarter was $41.1 million, adjusted for paydowns on nonaccrual and potential problem loans and the sale of the student loan portfolio.
- The quarterly net interest margin was 3.44% at September 30, 2014 compared to 3.34% (normalized) at June 30, 2014 and 3.11% at September 30, 2013.
- Asset quality improved as nonperforming loans decreased $1.4 million, or 9%, and potential problem loans decreased $19.8 million, or 24%, during the third quarter. Included in these improvements is the collection of a $1.3 million recovery of a prior period loan loss and a $6.8 million payoff of a related restructured potential problem loan. The improved asset quality resulted in a negative provision of $2.9 million."
"These positive results and actions reflect the good work of our associates at Bank SNB and a growing customer base. We will continue to focus our company on future growth through the expansion of our revenue base while prudently managing our expenses. We are encouraged by the momentum we have throughout our company."
On October 1, 2014, Southwest's previously filed application with the Oklahoma State Banking Department was approved and its wholly owned banking subsidiary became a state chartered bank with the state of Oklahoma. Southwest's banking subsidiary's name is now Bank SNB.
On August 14, 2014, Southwest's board of directors authorized the repurchase of up to 5.0% or 990,000 shares, of its outstanding common stock, par value $1.00 per share. The share repurchases are expected to be made primarily on the open market from time to time until August 14, 2015. Repurchases under the program are available at the discretion of management based upon market, business, legal, and other factors. During the third quarter, Southwest repurchased 223,005 shares for a total of $3.7 million.
Financial Overview
Condition: During the quarter ended September 30, 2014, total assets of $1.9 billion increased $15.8 million from June 30, 2014. Total loans of $1.4 billion increased $15.7 million from June 30, 2014 and total investment securities of $370.6 million decreased $15.3 million compared to June 30, 2014. Cash and cash equivalents at September 30, 2014 were $130.1 million, up $14.9 million from June 30, 2014.
At September 30, 2014, the allowance for loan losses was $30.9 million, a decrease of $9.2 million when compared to a year ago, and a decrease of $2.2 million when compared to June 30, 2014. The allowance for loan losses to portfolio loans was 2.27% as of September 30, 2014, compared to 3.08% as of September 30, 2013 and 2.46% as of June 30, 2014. The allowance for loan losses to nonperforming loans was 205.29% as of September 30, 2014, compared to 122.65% as of September 30, 2013 and 200.77% as of June 30, 2014.
Nonperforming loans decreased by $17.6 million in a year over year comparison, and decreased $1.4 million during the quarter. Other real estate at September 30, 2014 was $3.4 million, an increase of $1.8 million from September 30, 2013, but a decrease of $0.8 million when compared to June 30, 2014. Nonperforming assets were $18.5 million, or 1.36% of portfolio loans and other real estate, as of September 30, 2014, compared to $34.4 million, or 2.63% of portfolio loans and other real estate, as of September 30, 2013, and $20.8 million, or 1.54% of portfolio loans and other real estate, as of June 30, 2014.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 92% and 95% of total funding as of September 30, 2014 and June 30, 2014, respectively. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 8% and 5% of total funding at September 30, 2014 and June 30, 2014, respectively. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.
The capital ratios of Southwest and Bank SNB, Southwest's banking subsidiary, as of September 30, 2014, exceeded the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $334.5 million, for a total risk-based capital ratio of 21.34%, and Tier 1 capital was $314.1 million, for a Tier 1 risk-based capital ratio of 20.05%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $177.8 million. Bank SNB had total regulatory capital of $292.5 million, for a total risk-based capital ratio of 18.77%, and Tier 1 capital of $272.8 million, for a Tier 1 risk-based capital ratio of 17.51%. Bank SNB exceeded the minimum to be classified as "well-capitalized" by $136.7 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.
Third Quarter Results:
Summary: For the third quarter of 2014, net income was $5.3 million, compared to $3.8 million for the third quarter of 2013 and $6.2 million for the second quarter of 2014.
The $1.5 million increase in our net income compared to the third quarter of 2013 was primarily the result of a $0.6 million increase in net interest income, primarily driven by lower interest expense on deposits and a reduction in interest costs due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013, and a $2.6 million increase in the negative provision for loan losses, offset in part by a $0.5 million decrease in noninterest income and a $0.3 million increase in noninterest expense.
The $0.9 million decrease in net income compared to the second quarter of 2014 was primarily due to the $0.7 million decrease in net interest income and the $5.2 million decrease in noninterest income, due to the prior quarter's inclusion of the $4.4 million pre-tax net gain recognized on the branch sales and $0.6 million recognized on the sale of a stock that was acquired in a prior year repossession. Partially offsetting these decreases were a $2.5 million increase in the negative provision for loan losses and a $2.0 million decrease in noninterest expense, primarily driven by decreased other real estate expenses, decreased personnel expenses, and decreased general and administrative expenses.
Net Interest Income: Net interest income totaled $15.8 million for the third quarter of 2014, compared to $15.3 million for the third quarter of 2013, an increase of $0.5 million, or 4%, and to $16.6 million for the second quarter of 2014, a decrease of $0.7 million, or 4%. Net interest margin was 3.44% for the third quarter of 2014, compared to 3.11% for the third quarter of 2013 and 3.50% for the second quarter of 2014. Included in interest income for the second quarter of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by the loss share agreement. The net effects of these adjustments on the net interest margin were a 16 basis point increase in the second quarter of 2014 net interest margin. Loans (including loans held for sale) increased $60.8 million, or 5%, when compared to September 30, 2013, and $15.7 million, or 1%, when compared to June 30, 2014.
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 negative provision (or credit) of $2.9 million for the third quarter of 2014, compared to a negative provision of $0.3 million for the third quarter of 2013, and a negative provision of $0.4 million for the second quarter of 2014. During the third quarter of 2014, charge-offs totaled $1.2 million and recoveries totaled $1.9 million. Therefore, the third quarter of 2014 net recoveries totaled $0.7 million, or (0.21)% (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 $1.5 million, or 0.45% (annualized) of average portfolio loans for the second quarter of 2014.
Noninterest Income: Noninterest income totaled $3.1 million for the third quarter of 2014, compared to $3.5 million for the third quarter of 2013 and to $8.2 million for the second quarter of 2014. The $0.5 million decrease from third quarter 2013 included a $0.2 million decrease in gain on sale of mortgage loans, a $0.1 million decrease in service charges, and a $0.1 million decrease in other noninterest income. The $5.2 million decrease from second quarter 2014 is primarily the result of the $4.4 million recognized as the gain on sales of the community bank branches and $0.6 million gain on the sale of a stock investment that was acquired in a prior year repossession.
Noninterest Expense: Noninterest expense totaled $13.4 million for the third quarter of 2014, compared to $13.0 million for the third quarter of 2013 and to $15.3 million for the second quarter of 2014. The $0.4 million increase in noninterest expense from third quarter of 2013 consisted of a $0.2 million increase in other real estate expense due to net gains on sales of other real estate properties recognized in the prior year, a $0.2 million increase in employee benefit expense, and a $0.2 million increase in general and administrative expense, primarily increased legal and consulting fees, offset in part by a decrease in the provision for unfunded loan commitments.
The $2.0 million decrease in noninterest expense from second quarter of 2014 was due to a $0.7 million decrease in personnel expense, a $0.7 million decrease in other real estate expense, and a $0.4 million decrease in general and administrative expense, resulting from a decrease in the provision for unfunded loan commitments.
Income Tax: Income tax expense totaled $3.2 million for the third quarter of 2014, compared to $2.3 million for the third quarter of 2013 and $3.7 million for the second quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The third quarter of 2014 effective tax rate was 37.5%.
Year-to-date Results:
Summary: Net income was $15.1 million for the first nine months of 2014, compared to $10.6 million for the first nine months of 2013. The $4.5 million increase in net income from 2013 is the result of a $2.4 million increase in net interest income, primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013, a $3.5 million increase in the negative provision for loan losses, resulting from improved asset quality, a $3.8 million increase in noninterest income, primarily the pre-tax net gain on sale of community bank branches, offset in part by a $2.6 million increase in noninterest expense due to decreased gains recognized on sale of other real estate properties and increased employee benefit expenses.
Net Interest Income: Net interest income totaled $48.4 million for the first nine months of 2014, compared to $46.0 million for the first nine months of 2013, an increase of $2.4 million, or 5%, primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption the 10.5% Trust Preferred Securities in third quarter of 2013. Year-to-date net interest margin was 3.43%, compared to 3.11% for 2013. Included in interest income for the first nine months of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by the loss share agreement and $0.6 million due to the interest recognition resulting from loans returning to accrual status. The net effect of these adjustments on the net interest margin was a 9 basis point increase for the first nine months of 2014. 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) of $4.2 million for the first nine months of 2014, compared to a credit of $0.7 million for the first nine months of 2013. Net charge-offs totaled $1.5 million, or 0.15% (annualized) of average portfolio loans year-to-date as of September 30, 2014, compared to $5.9 million, or 0.61% (annualized) of average portfolio loans for the same period 2013.
Noninterest Income: Noninterest income totaled $14.4 million for the first nine months of 2014, compared to $10.6 million for the first nine months of 2013. The increase primarily consists of the $4.4 million recognized as the pre-tax net gain on sales of the community bank branches and the $0.8 million in gain on sale of investment securities, offset in part by the $1.2 million decline in gains on sales of mortgage loans.
Noninterest Expense: Noninterest expense totaled $42.8 million for the first nine months of 2014, compared to $40.2 million for the first nine months of 2013. The increase consists of a $1.8 million increase in other real estate expense, which is primarily due to net gains recognized during the prior year on the sale of other real estate properties, a $0.6 million increase in employee benefit expenses, a $0.2 million increase in occupancy expense, and a $0.3 million increase in general and administrative expense, primarily the result of increased legal fees and consulting fees, offset in part by a decrease in the provision for unfunded loan commitments.
Income Tax: Income tax expense totaled $9.1 million for the first nine months of 2014, compared to $6.4 million for the first nine months of 2013. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 37.5% as of September 30, 2014.
Conference Call
Southwest will host a conference call to review these results on Wednesday, October 22, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10053246. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (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/oksb141022.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 10053246. Telephone replay access will be available until 9:00 a.m. Eastern Time on November 19, 2014.
Southwest Bancorp and Subsidiaries
Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation ("Bank SNB"). Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At September 30, 2014, Southwest had total assets of $1.9 billion, deposits of $1.5 billion, and shareholders' equity of $272.0 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 banking 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 September 30, 2014, approximately $403.8 million, or 30%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) 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, 2013. 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 September 30, 2014 through the date its financial statements are filed with the Securities and Exchange Commission. The September 30, 2014 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.
The Southwest Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8074
The Bank SNB logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=23106
| 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) | |||||
| Third Quarter | Second Quarter | Third Quarter | |||
| QUARTERLY HIGHLIGHTS | 2014 | % Change | 2013 | % Change | |
| Operations | |||||
| Net interest income | $ 15,837 | $ 16,574 | (4)% | $15,273 | 4 % |
| Provision for loan losses | (2,897) | (355) | 716 | (329) | 781 |
| Noninterest income | 3,084 | 8,246 | (63) | 3,547 | (13) |
| Noninterest expense | 13,358 | 15,332 | (13) | 13,019 | 3 |
| Income before taxes | 8,460 | 9,843 | (14) | 6,130 | 38 |
| Taxes on income | 3,172 | 3,691 | (14) | 2,330 | 36 |
| Net income | 5,288 | 6,152 | (14) | 3,800 | 39 |
| Diluted earnings per share | 0.27 | 0.31 | (13) | 0.19 | 42 |
| Balance Sheet | |||||
| Total assets | 1,900,948 | 1,885,158 | 1 | 1,972,367 | (4) |
| Loans held for sale | 4,368 | 6,803 | (36) | 3,641 | 20 |
| Portfolio loans | 1,363,020 | 1,344,897 | 1 | 1,302,984 | 5 |
| Total deposits | 1,494,946 | 1,463,855 | 2 | 1,583,791 | (6) |
| Total shareholders' equity | 271,966 | 271,351 | 0 | 252,802 | 8 |
| Book value per common share | 13.90 | 13.71 | 1 | 12.83 | 8 |
| Key Ratios | |||||
| Net interest margin | 3.44% | 3.50% | 3.11% | ||
| Efficiency ratio | 70.60 | 61.77 | 69.18 | ||
| Total capital to risk-weighted assets | 21.34 | 21.43 | 21.52 | ||
| Nonperforming loans to portfolio loans | 1.10 | 1.23 | 2.27 | ||
| Shareholders' equity to total assets | 14.31 | 14.39 | 12.82 | ||
| Tangible common equity to tangible assets* | 14.25 | 14.34 | 12.76 | ||
| Return on average assets (annualized) | 1.12 | 1.27 | 0.75 | ||
| Return on average common equity (annualized) | 7.69 | 9.19 | 5.99 | ||
| Return on average tangible common equity (annualized)** | 7.72 | 9.24 | 6.02 | ||
| Nine Months | |||||
| YEAR-TO-DATE HIGHLIGHTS | 2014 | 2013 | % Change | ||
| Operations | |||||
| Net interest income | $ 48,412 | $ 46,013 | 5% | ||
| Provision for loan losses | (4,238) | (707) | 499 | ||
| Noninterest income | 14,355 | 10,575 | 36 | ||
| Noninterest expense | 42,797 | 40,246 | 6 | ||
| Income before taxes | 24,208 | 17,049 | 42 | ||
| Taxes on income | 9,077 | 6,446 | 41 | ||
| Net income | 15,131 | 10,603 | 43 | ||
| Diluted earnings per share | 0.77 | 0.54 | 43 | ||
| Balance Sheet | |||||
| Total assets | 1,900,948 | 1,972,367 | (4) | ||
| Loans held for sale | 4,368 | 3,641 | 20 | ||
| Portfolio loans | 1,363,020 | 1,302,984 | 5 | ||
| Total deposits | 1,494,946 | 1,583,791 | (6) | ||
| Total shareholders' equity | 271,966 | 252,802 | 8 | ||
| Book value per common share | 13.90 | 12.83 | 8 | ||
| Key Ratios | |||||
| Net interest margin | 3.43% | 3.11% | |||
| Efficiency ratio | 68.18 | 71.12 | |||
| Total capital to risk-weighted assets | 21.34 | 21.52 | |||
| Nonperforming loans to portfolio loans | 1.10 | 2.27 | |||
| Shareholders' equity to total assets | 14.31 | 12.82 | |||
| Tangible common equity to tangible assets* | 14.25 | 12.76 | |||
| Return on average assets (annualized) | 1.04 | 0.69 | |||
| Return on average common equity (annualized) | 7.54 | 5.64 | |||
| Return on average tangible common equity (annualized)** | 7.58 | 5.67 | |||
| 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) | |||
| September 30, | December 31, | September 30, | |
| 2014 | 2013 | 2013 | |
| Assets | |||
| Cash and due from banks | $ 18,498 | $ 28,062 | $ 31,043 |
| Interest-bearing deposits | 111,605 | 251,777 | 214,241 |
| Cash and cash equivalents | 130,103 | 279,839 | 245,284 |
| Securities held to maturity (fair values of $11,265, $12,115, and $12,177, respectively) | 10,663 | 11,720 | 11,739 |
| Securities available for sale (amortized cost of $359,042, $385,423, and $371,433, respectively) | 359,944 | 382,479 | 370,262 |
| Loans held for sale | 4,368 | 3,060 | 3,641 |
| Loans receivable (includes loss share of $0, $1,812, and $4,282, respectively) | 1,363,020 | 1,267,843 | 1,302,984 |
| Less: Allowance for loan losses | (30,917) | (36,663) | (40,081) |
| Net loans receivable | 1,332,103 | 1,231,180 | 1,262,903 |
| Accrued interest receivable | 4,952 | 5,335 | 5,725 |
| Income tax receivable | -- | -- | 1,807 |
| Non-hedge derivative asset | 166 | -- | -- |
| Premises and equipment, net | 18,986 | 20,833 | 21,283 |
| Other real estate | 3,448 | 2,654 | 1,693 |
| Goodwill | 1,214 | 1,214 | 1,214 |
| Other intangible assets, net | 3,866 | 4,980 | 5,022 |
| Other assets | 31,135 | 38,129 | 41,794 |
| Total assets | $ 1,900,948 | $ 1,981,423 | $ 1,972,367 |
| Liabilities | |||
| Deposits: | |||
| Noninterest-bearing demand | $ 445,148 | $ 444,796 | $ 436,904 |
| Interest-bearing demand | 104,807 | 120,156 | 106,176 |
| Money market accounts | 477,614 | 439,981 | 423,720 |
| Savings accounts | 33,398 | 41,727 | 39,727 |
| Time deposits of $100,000 or more | 203,090 | 251,185 | 270,916 |
| Other time deposits | 230,889 | 286,241 | 306,348 |
| Total deposits | 1,494,946 | 1,584,086 | 1,583,791 |
| Accrued interest payable | 771 | 832 | 840 |
| Non-hedge derivative liability | 166 | -- | -- |
| Other liabilities | 10,822 | 10,293 | 9,878 |
| Other borrowings | 75,884 | 80,632 | 78,663 |
| Subordinated debentures | 46,393 | 46,393 | 46,393 |
| Total liabilities | 1,628,982 | 1,722,236 | 1,719,565 |
| Shareholders' equity | |||
| Common stock -- $1 par value; 40,000,000 shares authorized; 19,793,623 shares issued and 19,732,926 and 19,703,313 shares issued and outstanding, respectively | 19,794 | 19,733 | 19,703 |
| Additional paid-in capital | 100,971 | 99,937 | 99,488 |
| Retained earnings | 155,290 | 142,528 | 135,696 |
| Accumulated other comprehensive loss | (411) | (3,011) | (2,085) |
| Treasury stock, at cost, 223,005, 0, and 0 shares, respectively | (3,678) | -- | -- |
| Total shareholders' equity | 271,966 | 259,187 | 252,802 |
| Total liabilities and shareholders' equity | $ 1,900,948 | $ 1,981,423 | $ 1,972,367 |
| SOUTHWEST BANCORP, INC. | Table 3 | ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (Dollars in thousands, except per share) | |||||
| For the three months ended | For the nine months | ||||
| September 30, | June 30, | September 30, | ended September 30, | ||
| 2014 | 2014 | 2013 | 2014 | 2013 | |
| Interest income | |||||
| Loans | $ 15,683 | $ 16,343 | $ 16,242 | $ 47,801 | $ 49,663 |
| Investment securities | 1,534 | 1,628 | 1,623 | 4,812 | 4,908 |
| Other interest-earning assets | 274 | 314 | 270 | 963 | 765 |
| Total interest income | 17,491 | 18,285 | 18,135 | 53,576 | 55,336 |
| Interest expense | |||||
| Interest-bearing deposits | 864 | 931 | 1,317 | 2,820 | 4,411 |
| Other borrowings | 227 | 223 | 225 | 675 | 667 |
| Subordinated debentures | 563 | 557 | 1,320 | 1,669 | 4,245 |
| Total interest expense | 1,654 | 1,711 | 2,862 | 5,164 | 9,323 |
| Net interest income | 15,837 | 16,574 | 15,273 | 48,412 | 46,013 |
| Provision for loan losses | (2,897) | (355) | (329) | (4,238) | (707) |
| Net interest income after provision for loan losses | 18,734 | 16,929 | 15,602 | 52,650 | 46,720 |
| Noninterest income | |||||
| Service charges and fees | 2,492 | 2,608 | 2,589 | 7,696 | 7,856 |
| Gain on sale of branches, net | -- | 4,378 | -- | 4,378 | -- |
| Gain on sales of mortgage loans | 382 | 463 | 619 | 1,069 | 2,264 |
| Gain on sale/call of investment securities, net | -- | 629 | -- | 764 | -- |
| Other noninterest income | 210 | 168 | 339 | 448 | 455 |
| Total noninterest income | 3,084 | 8,246 | 3,547 | 14,355 | 10,575 |
| Noninterest expense | |||||
| Salaries and employee benefits | 7,804 | 8,472 | 7,645 | 24,402 | 23,820 |
| Occupancy | 2,612 | 2,783 | 2,721 | 8,164 | 7,974 |
| FDIC and other insurance | 299 | 314 | 413 | 1,010 | 1,304 |
| Other real estate, net | (220) | 511 | (387) | 359 | (1,428) |
| General and administrative | 2,863 | 3,252 | 2,627 | 8,862 | 8,576 |
| Total noninterest expense | 13,358 | 15,332 | 13,019 | 42,797 | 40,246 |
| Income before taxes | 8,460 | 9,843 | 6,130 | 24,208 | 17,049 |
| Taxes on income | 3,172 | 3,691 | 2,330 | 9,077 | 6,446 |
| Net income | $ 5,288 | $ 6,152 | $ 3,800 | $ 15,131 | $ 10,603 |
| Basic earnings per common share | $ 0.27 | $ 0.31 | $ 0.19 | $ 0.77 | $ 0.53 |
| Diluted earnings per common share | 0.27 | 0.31 | 0.19 | 0.77 | 0.54 |
| Common dividends declared per share | 0.04 | 0.04 | -- | 0.12 | -- |
| SOUTHWEST BANCORP, INC. | Table 4 | |||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY | ||||||
| (Dollars in thousands) | ||||||
| For the three months ended | ||||||
| September 30, 2014 | June 30, 2014 | September 30, 2013 | ||||
| Average | Average | Average | Average | Average | Average | |
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | |
| Assets | ||||||
| Loans | $1,356,729 | 4.59% | $1,331,126 | 4.92% | $1,298,018 | 4.96% |
| Investment securities | 378,924 | 1.61 | 384,395 | 1.70 | 364,746 | 1.76 |
| Other interest-earning assets | 88,653 | 1.23 | 183,378 | 0.69 | 287,968 | 0.37 |
| Total interest-earning assets | 1,824,306 | 3.80 | 1,898,899 | 3.86 | 1,950,732 | 3.69 |
| Other assets | 43,339 | 49,829 | 57,622 | |||
| Total assets | $1,867,645 | $1,948,728 | $2,008,354 | |||
| Liabilities and Shareholders' Equity | ||||||
| Interest-bearing demand deposits | $ 109,245 | 0.12% | $ 130,232 | 0.12% | $ 117,124 | 0.12% |
| Money market accounts | 437,632 | 0.14 | 421,001 | 0.13 | 416,839 | 0.17 |
| Savings accounts | 32,076 | 0.10 | 43,124 | 0.10 | 38,992 | 0.10 |
| Time deposits | 440,317 | 0.60 | 493,805 | 0.60 | 600,321 | 0.72 |
| Total interest-bearing deposits | 1,019,270 | 0.34 | 1,088,162 | 0.34 | 1,173,276 | 0.45 |
| Other borrowings | 85,423 | 1.05 | 85,682 | 1.04 | 75,822 | 1.18 |
| Subordinated debentures | 46,393 | 4.85 | 46,393 | 4.80 | 75,004 | 7.04 |
| Total interest-bearing liabilities | 1,151,086 | 0.57 | 1,220,237 | 0.56 | 1,324,102 | 0.86 |
| Noninterest-bearing demand deposits | 432,255 | 449,364 | 422,203 | |||
| Other liabilities | 11,442 | 10,751 | 10,319 | |||
| Shareholders' equity | 272,862 | 268,376 | 251,730 | |||
| Total liabilities and shareholders' equity | $1,867,645 | $1,948,728 | $2,008,354 | |||
| Net interest income and spread | 3.23% | 3.30% | 2.83% | |||
| Net interest margin (1) | 3.44% | 3.50% | 3.11% | |||
| Average interest-earning assets to average interest-bearing liabilities | 158.49% | 155.62% | 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 nine months ended September 30, | ||||
| 2014 | 2013 | |||
| Average | Average | Average | Average | |
| Balance | Yield/Rate | Balance | Yield/Rate | |
| Assets | ||||
| Loans | $1,322,351 | 4.83% | $1,323,938 | 5.02% |
| Investment securities | 383,950 | 1.68 | 373,150 | 1.76 |
| Other interest-earning assets | 183,416 | 0.70 | 279,549 | 0.37 |
| Total interest-earning assets | 1,889,717 | 3.79 | 1,976,637 | 3.74 |
| Other assets | 47,780 | 69,423 | ||
| Total assets | $1,937,497 | $ 2,046,060 | ||
| Liabilities and Shareholders' Equity | ||||
| Interest-bearing demand deposits | $124,652 | 0.12% | $125,598 | 0.12% |
| Money market accounts | 431,802 | 0.14 | 418,973 | 0.19 |
| Savings accounts | 39,941 | 0.10 | 38,850 | 0.12 |
| Time deposits | 488,066 | 0.61 | 638,739 | 0.76 |
| Total interest-bearing deposits | 1,084,461 | 0.35 | 1,222,160 | 0.48 |
| Other borrowings | 83,987 | 1.07 | 72,491 | 1.23 |
| Subordinated debentures | 46,393 | 4.80 | 79,618 | 7.11 |
| Total interest-bearing liabilities | 1,214,841 | 0.57 | 1,374,269 | 0.91 |
| Noninterest-bearing demand deposits | 443,520 | 409,393 | ||
| Other liabilities | 10,898 | 11,047 | ||
| Shareholders' equity | 268,238 | 251,351 | ||
| Total liabilities and shareholders' equity | $1,937,497 | $2,046,060 | ||
| Net interest income and spread | 3.22% | 2.83% | ||
| Net interest margin (1) | 3.43% | 3.11% | ||
| Average interest-earning assets to average interest-bearing liabilities | 155.55% | 143.83% | ||
| (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) | |||||||
| 2014 | 2013 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| LOAN COMPOSITION | |||||||
| Real estate mortgage: | |||||||
| Commercial | $ 757,878 | $ 769,021 | $ 766,178 | $ 752,279 | $ 757,435 | $ 802,138 | $ 836,843 |
| One-to-four family residential | 78,985 | 79,542 | 84,619 | 83,988 | 84,645 | 81,698 | 78,369 |
| Real estate construction: | |||||||
| Commercial | 166,379 | 166,981 | 166,007 | 143,848 | 163,307 | 159,227 | 139,829 |
| One-to-four family residential | 11,030 | 8,359 | 6,629 | 4,646 | 4,464 | 5,241 | 5,015 |
| Commercial | 330,738 | 300,163 | 266,311 | 255,058 | 264,565 | 237,221 | 233,939 |
| Installment and consumer: | |||||||
| Guaranteed student loans | 127 | 4,282 | 4,318 | 4,394 | 4,471 | 4,520 | 4,576 |
| Other | 22,251 | 23,352 | 26,060 | 26,690 | 27,738 | 28,044 | 28,644 |
| Total loans, including held for sale | 1,367,388 | 1,351,700 | 1,320,122 | 1,270,903 | 1,306,625 | 1,318,089 | 1,327,215 |
| Less allowance for loan losses | (30,917) | (33,083) | (34,925) | (36,663) | (40,081) | (40,352) | (42,853) |
| Total loans, net | $ 1,336,471 | $ 1,318,617 | $ 1,285,197 | $ 1,234,240 | $ 1,266,544 | $ 1,277,737 | $ 1,284,362 |
| LOANS BY SEGMENT | |||||||
| Oklahoma banking | $ 777,037 | $ 773,665 | $ 754,698 | $ 681,999 | $ 681,749 | $ 656,356 | $ 628,747 |
| Texas banking | 424,640 | 408,385 | 372,018 | 366,697 | 414,433 | 444,327 | 495,815 |
| Kansas banking | 142,547 | 145,248 | 170,720 | 198,992 | 206,802 | 210,189 | 195,355 |
| Subtotal | 1,344,224 | 1,327,298 | 1,297,436 | 1,247,688 | 1,302,984 | 1,310,872 | 1,319,917 |
| Mortgage banking | 23,164 | 24,402 | 22,686 | 23,215 | 3,641 | 7,217 | 7,298 |
| Total loans | $ 1,367,388 | $ 1,351,700 | $ 1,320,122 | $ 1,270,903 | $ 1,306,625 | $ 1,318,089 | $ 1,327,215 |
| NONPERFORMING LOANS BY TYPE | |||||||
| Construction & development | $ 77 | $ 82 | $ 80 | $ 2,721 | $ 5,789 | $ 6,119 | $ 6,539 |
| Commercial real estate | 7,504 | 7,613 | 7,541 | 7,766 | 15,378 | 15,112 | 15,975 |
| Commercial | 6,149 | 7,484 | 7,992 | 8,819 | 10,991 | 10,790 | 11,940 |
| One-to-four family residential | 1,274 | 1,180 | 470 | 513 | 467 | 492 | 701 |
| Consumer | 55 | 119 | 2 | 53 | 55 | 64 | 74 |
| Total nonperforming loans | $ 15,059 | $ 16,478 | $ 16,085 | $ 19,872 | $ 32,680 | $ 32,577 | $ 35,229 |
| NONPERFORMING LOANS BY SEGMENT | |||||||
| Oklahoma banking | $ 6,410 | $ 7,149 | $ 7,056 | $ 5,547 | $ 3,279 | $ 1,678 | $ 2,000 |
| Texas banking | 5,777 | 5,636 | 5,793 | 11,902 | 24,963 | 26,294 | 28,817 |
| Kansas banking | 2,872 | 3,693 | 3,236 | 2,423 | 4,438 | 4,605 | 4,412 |
| Total nonperforming loans | $ 15,059 | $ 16,478 | $ 16,085 | $ 19,872 | $ 32,680 | $ 32,577 | $ 35,229 |
| OTHER REAL ESTATE BY TYPE | |||||||
| Construction & development | $ 2,130 | $ 2,130 | $ 2,130 | $ 130 | $ 1,333 | $ 972 | $ 1,389 |
| Commercial real estate | 1,318 | 2,155 | 2,524 | 2,524 | 360 | 839 | 10,276 |
| Total other real estate | $ 3,448 | $ 4,285 | $ 4,654 | $ 2,654 | $ 1,693 | $ 1,811 | $ 11,665 |
| OTHER REAL ESTATE BY SEGMENT | |||||||
| Oklahoma banking | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- | $ 1,980 |
| Texas banking | 2,000 | 2,000 | 2,000 | -- | -- | -- | 7,227 |
| Kansas banking | 1,448 | 2,285 | 2,654 | 2,654 | 1,693 | 1,811 | 2,458 |
| Total other real estate | $ 3,448 | $ 4,285 | $ 4,654 | $ 2,654 | $ 1,693 | $ 1,811 | $ 11,665 |
| Continued | |||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | ||||||
| (Dollars in thousands) | |||||||
| 2014 | 2013 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| POTENTIAL PROBLEM LOANS BY TYPE | |||||||
| Construction & development | $ 19,307 | $ 18,842 | $ 22,220 | $ 21,501 | $ 22,222 | $ 20,745 | $ 19,968 |
| Commercial real estate | 40,623 | 60,559 | 64,257 | 70,654 | 64,505 | 65,518 | 64,287 |
| Commercial | 4,090 | 4,299 | 4,807 | 7,107 | 10,028 | 10,136 | 8,220 |
| One-to-four family residential | 355 | 475 | 481 | 488 | 414 | 1,071 | 1,157 |
| Total potential problem loans | $ 64,375 | $ 84,175 | $ 91,765 | $ 99,750 | $ 97,169 | $ 97,470 | $ 93,632 |
| POTENTIAL PROBLEM LOANS BY SEGMENT | |||||||
| Oklahoma banking | $ 23,895 | $ 23,887 | $ 29,208 | $ 29,005 | $ 31,345 | $ 31,495 | $ 32,246 |
| Texas banking | 38,586 | 57,044 | 58,361 | 65,079 | 59,561 | 58,710 | 51,978 |
| Kansas banking | 1,894 | 3,244 | 4,196 | 5,666 | 6,263 | 7,265 | 9,408 |
| Total potential problem loans | $ 64,375 | $ 84,175 | $ 91,765 | $ 99,750 | $ 97,169 | $ 97,470 | $ 93,632 |
| LOANS OUT OF MARKET | |||||||
| Net balance of loans out of market: | |||||||
| Arizona | $ 14,397 | $ 14,984 | $ 15,348 | $ 19,458 | $ 30,516 | $ 31,564 | $ 33,017 |
| Kentucky | 14,648 | 14,273 | 13,415 | 12,404 | 10,088 | 11,860 | 10,144 |
| North Carolina | 13,711 | 13,323 | 13,494 | 13,070 | 10,161 | 300 | 407 |
| Colorado | 14,048 | 13,269 | 13,705 | 12,553 | 12,358 | 8,586 | 3,067 |
| Iowa | 11,369 | 11,501 | 22,178 | 22,316 | 22,438 | 22,537 | 22,659 |
| California | 9,000 | 9,527 | 8,869 | 9,154 | 9,472 | 9,632 | 10,866 |
| Mississippi | 8,474 | 8,582 | 8,712 | 8,823 | 8,929 | 9,233 | 9,170 |
| Montana | 6,434 | 6,722 | 471 | 514 | 519 | 566 | 570 |
| Tennessee | 7,005 | 6,555 | 6,684 | 6,048 | 6,136 | 6,171 | 6,246 |
| Ohio | 132 | 4,142 | 3,862 | 3,549 | 3,294 | 4,759 | 4,132 |
| Other | 9,894 | 10,011 | 9,452 | 14,766 | 27,342 | 30,100 | 27,759 |
| Total loans out of market | $ 109,112 | $ 112,889 | $ 116,190 | $ 122,655 | $ 141,253 | $ 135,308 | $ 128,037 |
| Nonperforming loans out of market: | |||||||
| Arizona | $ 5,174 | $ 5,381 | $ 5,441 | $ 9,302 | $ 11,205 | $ 12,167 | $ 13,419 |
| New Jersey | 66 | 594 | 1,094 | -- | -- | -- | -- |
| New York | -- | -- | -- | -- | 1,033 | 1,048 | -- |
| Florida | 235 | 240 | 246 | 252 | 258 | 264 | 270 |
| Colorado | -- | -- | -- | -- | -- | -- | 131 |
| Other | 112 | -- | -- | -- | -- | 1 | -- |
| Total nonperforming out of market | $ 5,587 | $ 6,215 | $ 6,781 | $ 9,554 | $ 12,496 | $ 13,480 | $ 13,820 |
| Potential problem loans out of market: | |||||||
| Iowa | $ 11,336 | $ 11,414 | $ 11,490 | $ 11,568 | $ 11,645 | $ 11,719 | $ 11,792 |
| Arizona | 1,138 | 1,152 | 1,167 | -- | -- | -- | -- |
| California | -- | 461 | 474 | 482 | 499 | 512 | 524 |
| Florida | 53 | 58 | 62 | 66 | 71 | 75 | 80 |
| New Jersey | -- | -- | -- | 1,094 | 1,170 | 1,244 | -- |
| Total potential problem loans out of market | $ 12,527 | $ 13,085 | $ 13,193 | $ 13,210 | $ 13,385 | $ 13,550 | $ 12,396 |
| Continued | |||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | Continued | ||||||
| (Dollars in thousands) | |||||||
| 2014 | 2013 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| ALLOWANCE ACTIVITY | |||||||
| Balance, beginning of period | $ 33,083 | $ 34,925 | $ 36,663 | $ 40,081 | $ 40,352 | $ 42,853 | $ 46,718 |
| Charge offs | 1,156 | 1,991 | 3,392 | 2,681 | 600 | 2,072 | 4,651 |
| Recoveries | 1,887 | 504 | 2,640 | 5,765 | 658 | 447 | 288 |
| Net charge offs (recoveries) | (731) | 1,487 | 752 | (3,084) | (58) | 1,625 | 4,363 |
| Provision for loan losses | (2,897) | (355) | (986) | (6,502) | (329) | (876) | 498 |
| Balance, end of period | $ 30,917 | $ 33,083 | $ 34,925 | $ 36,663 | $ 40,081 | $ 40,352 | $ 42,853 |
| NET CHARGE OFFS BY TYPE | |||||||
| Construction & development | $ -- | $ -- | $ 655 | $ (4,845) | $ (20) | $ 111 | $ (19) |
| Commercial real estate | (640) | 583 | (2,243) | (62) | 274 | 7 | 416 |
| Commercial | 22 | 652 | 2,267 | 1,883 | (169) | 1,085 | 3,751 |
| One-to-four family residential | 11 | (2) | (18) | (40) | (165) | 363 | 167 |
| Consumer | (124) | 254 | 91 | (20) | 22 | 59 | 48 |
| Total net charge offs (recoveries) by type | $ (731) | $ 1,487 | $ 752 | $ (3,084) | $ (58) | $ 1,625 | $ 4,363 |
| NET CHARGE OFFS BY SEGMENT | |||||||
| Oklahoma banking | $ 67 | $ 763 | $ 229 | $ (1,294) | $ (203) | $ 200 | $ 589 |
| Texas banking | (611) | 244 | (1,586) | (2,314) | (80) | 1,356 | 3,241 |
| Kansas banking | (187) | 480 | 2,109 | 524 | 225 | 69 | 533 |
| Total net charge offs (recoveries) by segment | $ (731) | $ 1,487 | $ 752 | $ (3,084) | $ (58) | $ 1,625 | $ 4,363 |
| SOUTHWEST BANCORP, INC. | Table 7 | ||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | |||||||
| (Dollars in thousands, except per share) | |||||||
| 2014 | 2013 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| PER SHARE DATA | |||||||
| Basic earnings per common share | $ 0.27 | $ 0.31 | $ 0.19 | $ 0.35 | $ 0.19 | $ 0.22 | $ 0.12 |
| Diluted earnings per common share | 0.27 | 0.31 | 0.19 | 0.35 | 0.19 | 0.22 | 0.12 |
| Common dividends declared per share | 0.04 | 0.04 | 0.04 | -- | -- | -- | -- |
| Book value per common share | 13.90 | 13.71 | 13.37 | 13.13 | 12.83 | 12.67 | 12.72 |
| Tangible book value per share* | 13.83 | 13.65 | 13.31 | 13.07 | 12.77 | 12.60 | 12.66 |
| COMMON STOCK | |||||||
| Shares issued | 19,793,623 | 19,793,123 | 19,786,206 | 19,732,926 | 19,703,313 | 19,692,606 | 19,692,038 |
| Less treasury shares | 223,005 | -- | -- | -- | -- | -- | -- |
| Outstanding shares | 19,570,618 | 19,793,123 | 19,786,206 | 19,732,926 | 19,703,313 | 19,692,606 | 19,692,038 |
| OTHER FINANCIAL DATA | |||||||
| Investment securities | $ 370,607 | $ 385,873 | $ 386,987 | $ 394,199 | $ 382,001 | $ 372,403 | $ 365,605 |
| Loans held for sale | 4,368 | 6,803 | 5,741 | 3,060 | 3,641 | 7,217 | 7,297 |
| Portfolio loans | 1,363,020 | 1,344,897 | 1,314,381 | 1,267,843 | 1,302,984 | 1,310,872 | 1,319,918 |
| Total loans | 1,367,388 | 1,351,700 | 1,320,122 | 1,270,903 | 1,306,625 | 1,318,089 | 1,327,215 |
| Total assets | 1,900,948 | 1,885,158 | 2,012,053 | 1,981,423 | 1,972,367 | 2,031,962 | 2,091,694 |
| Total deposits | 1,494,946 | 1,463,855 | 1,605,906 | 1,584,086 | 1,583,791 | 1,615,961 | 1,677,668 |
| Other borrowings | 75,884 | 90,760 | 85,692 | 80,632 | 78,663 | 74,334 | 70,872 |
| Subordinated debentures | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 81,963 | 81,963 |
| Total shareholders' equity | 271,966 | 271,351 | 264,586 | 259,187 | 252,802 | 249,420 | 250,509 |
| Mortgage servicing portfolio | 401,756 | 397,339 | 391,303 | 390,732 | 383,400 | 368,825 | 356,032 |
| INTANGIBLE ASSET DATA | |||||||
| Goodwill | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 | $ 1,214 |
| Core deposit intangible | 597 | 667 | 1,925 | 2,058 | 2,185 | 2,306 | 2,424 |
| Mortgage servicing rights | 3,269 | 3,182 | 3,006 | 2,922 | 2,837 | 2,675 | 2,445 |
| Total intangible assets | $ 5,080 | $ 5,063 | $ 6,145 | $ 6,194 | $ 6,236 | $ 6,195 | $ 6,083 |
| Intangible amortization expense | $ 195 | $ 210 | $ 183 | $ 278 | $ 314 | $ 313 | $ 410 |
| DEPOSIT COMPOSITION | |||||||
| Non-interest bearing demand | $ 445,148 | $ 427,431 | $ 471,568 | $ 444,796 | $ 436,904 | $ 412,176 | $ 416,979 |
| Interest-bearing demand | 104,807 | 124,712 | 132,622 | 120,156 | 106,176 | 138,502 | 125,914 |
| Money market accounts | 477,614 | 430,296 | 440,875 | 439,981 | 423,720 | 408,145 | 437,629 |
| Savings accounts | 33,398 | 31,187 | 47,532 | 41,727 | 39,727 | 38,611 | 39,733 |
| Time deposits of $100,000 or more | 203,090 | 209,059 | 236,035 | 251,185 | 270,916 | 295,179 | 317,270 |
| Other time deposits | 230,889 | 241,170 | 277,274 | 286,241 | 306,348 | 323,348 | 340,143 |
| Total deposits** | $ 1,494,946 | $ 1,463,855 | $ 1,605,906 | $ 1,584,086 | $ 1,583,791 | $ 1,615,961 | $ 1,677,668 |
| OFFICES AND EMPLOYEES | |||||||
| FTE Employees | 351 | 364 | 397 | 402 | 407 | 408 | 412 |
| Branches | 21 | 21 | 24 | 23 | 23 | 22 | 22 |
| Assets per employee | $ 5,416 | $ 5,179 | $ 5,068 | $ 4,929 | $ 4,846 | $ 4,980 | $ 5,077 |
| *This is a Non-GAAP based financial measure. | |||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | |||||||
| Total deposits | $ 1,494,946 | $ 1,463,855 | $ 1,605,906 | $ 1,584,086 | $ 1,583,791 | $ 1,615,961 | $ 1,677,668 |
| Less: | |||||||
| Brokered time deposits | 2,952 | 1,348 | 1,347 | 1,347 | 1,343 | 4,904 | 5,760 |
| Other brokered deposits | 98,425 | 48,424 | 3,424 | 3,423 | 3,423 | 3,422 | 3,422 |
| Non-brokered deposits | $ 1,393,569 | $ 1,414,083 | $ 1,601,135 | $ 1,579,316 | $ 1,579,025 | $ 1,607,635 | $ 1,668,486 |
| Plus: | |||||||
| Sweep repurchase agreements | 50,884 | 65,760 | 60,692 | 55,631 | 53,663 | 49,334 | 45,872 |
| Core funding | $ 1,444,453 | $ 1,479,843 | $ 1,661,827 | $ 1,634,947 | $ 1,632,688 | $ 1,656,969 | $ 1,714,358 |
| Balance sheet amounts are as of period end unless otherwise noted. | |||||||
| SOUTHWEST BANCORP, INC. | Table 8 | ||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | |||||||
| (Dollars in thousands) | |||||||
| 2014 | 2013 | ||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |
| PERFORMANCE RATIOS | |||||||
| Return on average assets (annualized) | 1.12% | 1.27% | 0.75% | 1.37% | 0.75% | 0.87% | 0.46% |
| Return on average common equity (annualized) | 7.69 | 9.19 | 5.68 | 10.59 | 5.99 | 7.00 | 3.89 |
| Return on average tangible common equity (annualized)* | 7.72 | 9.24 | 5.71 | 10.64 | 6.02 | 7.03 | 3.90 |
| Net interest margin (annualized) | 3.44 | 3.50 | 3.33 | 3.42 | 3.11 | 3.07 | 3.16 |
| Total dividends declared to net income | 14.88 | 12.86 | 21.40 | -- | -- | -- | -- |
| Effective tax rate | 37.49 | 37.50 | 37.49 | 38.68 | 38.01 | 33.74 | 43.88 |
| Efficiency ratio | 70.60 | 61.77 | 74.15 | 76.45 | 69.18 | 68.93 | 75.16 |
| NONPERFORMING ASSETS | |||||||
| Nonaccrual loans | $ 15,059 | $ 16,478 | $ 16,085 | $ 19,819 | $ 32,678 | $ 32,575 | $ 35,229 |
| 90 days past due and accruing | -- | -- | -- | 53 | 2 | 2 | -- |
| Total nonperforming loans | 15,059 | 16,478 | 16,085 | 19,872 | 32,680 | 32,577 | 35,229 |
| Other real estate | 3,448 | 4,285 | 4,654 | 2,654 | 1,693 | 1,811 | 11,665 |
| Total nonperforming assets | $ 18,507 | $ 20,763 | $ 20,739 | $ 22,526 | $ 34,373 | $ 34,388 | $ 46,894 |
| Potential problem loans | $ 64,375 | $ 84,175 | $ 91,765 | $ 99,750 | $ 97,169 | $ 97,470 | $ 93,632 |
| ASSET QUALITY RATIOS | |||||||
| Nonperforming assets to portfolio loans and other real estate | 1.36% | 1.54% | 1.57% | 1.77% | 2.63% | 2.62% | 3.52% |
| Nonperforming loans to portfolio loans | 1.10 | 1.23 | 1.22 | 1.57 | 2.51 | 2.49 | 2.67 |
| Allowance for loan losses to portfolio loans | 2.27 | 2.46 | 2.66 | 2.89 | 3.08 | 3.08 | 3.24 |
| Allowance for loan losses to nonperforming loans | 205.29 | 200.77 | 217.13 | 184.50 | 122.65 | 123.87 | 121.64 |
| Net loan charge-offs to average portfolio loans (annualized) | (0.21)% | 0.45 | 0.24 | (0.96) | (0.02) | 0.50 | 1.32 |
| CAPITAL RATIOS | |||||||
| Average total shareholders' equity to average assets | 14.61% | 13.77% | 13.18% | 12.93% | 12.53% | 12.41% | 11.92% |
| Leverage ratio | 16.86 | 15.95 | 15.09 | 14.86 | 14.78 | 16.10 | 15.59 |
| Tier 1 capital to risk-weighted assets | 20.05 | 20.13 | 19.98 | 20.28 | 20.21 | 22.48 | 22.25 |
| Total capital to risk-weighted assets | 21.34 | 21.43 | 21.29 | 21.59 | 21.52 | 23.78 | 23.54 |
| Tangible common equity to tangible assets*** | 14.25 | 14.34 | 13.10 | 13.03 | 12.76 | 12.22 | 11.93 |
| REGULATORY CAPITAL DATA | |||||||
| Tier I capital | $ 314,120 | $ 309,600 | $ 299,938 | $ 292,051 | $ 296,488 | $ 326,831 | $ 324,659 |
| Total capital | 334,456 | 329,586 | 319,516 | 310,867 | 315,570 | 345,717 | 343,562 |
| Total risk adjusted assets | 1,566,996 | 1,537,903 | 1,500,957 | 1,439,934 | 1,466,672 | 1,453,878 | 1,459,465 |
| Average total assets | 1,863,127 | 1,941,064 | 1,987,231 | 1,964,920 | 2,006,525 | 2,030,064 | 2,082,789 |
| *This is a Non-GAAP based financial measure. | |||||||
| ***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure) | |||||||
| Total shareholders' equity | $ 271,966 | $ 271,351 | $ 264,586 | $ 259,187 | $ 252,802 | $ 249,420 | $ 250,509 |
| Less goodwill | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 |
| Tangible common equity | $ 270,752 | $ 270,137 | $ 263,372 | $ 257,973 | $ 251,588 | $ 248,206 | $ 249,295 |
| Total assets | $1,900,948 | $1,885,158 | $2,012,053 | $1,981,423 | $1,972,367 | $2,031,962 | $2,091,694 |
| Less goodwill | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 | 1,214 |
| Tangible assets | $1,899,734 | $1,883,944 | $2,010,839 | $1,980,209 | $1,971,153 | $2,030,748 | $2,090,480 |
| Total shareholders' equity to total assets | 14.31% | 14.39% | 13.15% | 13.08% | 12.82% | 12.27% | 11.98% |
| Tangible common equity to tangible assets | 14.25% | 14.34% | 13.10% | 13.03% | 12.76% | 12.22% | 11.93% |
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |||||||