STILLWATER, Okla., Oct. 20, 2015 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the third quarter of 2015 of $4.1 million, or $0.22 per diluted share, compared to $5.3 million, or $0.27 per diluted share, for the third quarter of 2014, which included a negative (credit) provision for loan losses of $2.9 million. Net income for the nine months ended September 30, 2015 totaled $12.8 million, or $0.68 per diluted share, compared to $15.1 million, or $0.77 per diluted share, for the nine months ended September 30, 2014. Included in the prior year’s results was a pre-tax net gain on sale of bank branches of $4.4 million and a negative (credit) provision for loan losses of $4.2 million, versus a negative (credit) provision for loan losses of $3.0 million for the first nine months of 2015.
Southwest also announced that its board of directors has approved a quarterly cash dividend of $0.06 per share payable November 13, 2015 to shareholders of record as of October 30, 2015.
Mark Funke, President and CEO, stated, “The third quarter was a busy and successful quarter for Bank SNB. We received regulatory approval to acquire First Commercial Bancshares, Inc. and completed the acquisition in early October. This expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also adds Colorado to our geographic footprint with three branches in Denver and one in Colorado Springs.
“The financial results for the third quarter reflect solid earnings, improved efficiency, and strong loan growth. Our efforts produced several highlights:
- Received regulatory approval to acquire Edmond-based First Commercial Bancshares, Inc. (“FCBI”) and closed the merger on October 9, 2015.
- Loan growth was $98.7 million, or 7%, for the third quarter and $148.1 million, or 11%, for the first nine months of 2015. We have had seven consecutive quarters of loan growth.
- The quarterly net interest margin improved to 3.34% at September 30, 2015 compared to 3.31% at June 30, 2015.
- The quarterly efficiency ratio improved to 68.25% for the third quarter, reflecting management’s commitment to improved operating performance.
“Our financial results and the strong loan growth for the third quarter reflect the excellent work of our banking associates. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing our expenses.”
Southwest’s share repurchase program, approved in August of 2014, authorized the repurchase of up to 5.0% or 990,000 shares of its outstanding common stock, par value $1.00 per share. As of September 30, 2015, Southwest had repurchased 867,310 shares for a total of $14.3 million. During the third quarter of 2015, no shares were repurchased due to trade restrictions pursuant to the pending acquisition of FCBI. On August 14, 2015, this share repurchase plan expired. On February 24, 2015, Southwest’s board of directors authorized a second share repurchase program of up to another 5.0% of its outstanding common stock, or approximately 950,000 shares, which became effective on August 14, 2015, immediately following the expiration of the 2014 program.
Financial Overview
Condition: As of September 30, 2015, total assets were $2.1 billion, an increase of $28.3 million from June 30, 2015. As of September 30, 2015, total loans were $1.5 billion and investment securities were $388.5 million, an increase of $98.7 million and an increase of $15.3 million from the prior quarter end, respectively. Consequently, cash and cash equivalents at September 30, 2015 were $68.6 million, down $88.0 million from June 30, 2015.
At September 30, 2015, the allowance for loan losses was $26.6 million, an increase of $0.4 million when compared to June 30, 2015 and a decrease of $4.3 million when compared to September 30, 2014. The allowance for loan losses to portfolio loans was 1.73% as of September 30, 2015, compared to 1.82% as of June 30, 2015 and 2.27% as of September 30, 2014. The allowance for loan losses to nonperforming loans was 176.38% as of September 30, 2015, compared to 295.03% as of June 30, 2015 and 205.29% as of September 30, 2014.
Nonperforming loans were $15.1 million at September 30, 2015, an increase of $6.2 million from June 30, 2015, and remained relatively flat from September 30, 2014. Other real estate at September 30, 2015 was $2.3 million, a decrease of $0.1 million from June 30, 2015, and a decrease of $1.2 million when compared to September 30, 2014. Nonperforming assets were $17.4 million, or 1.12% of portfolio loans and other real estate, as of September 30, 2015, compared to $11.3 million, or 0.78% of portfolio loans and other real estate, as of June 30, 2015, and $18.5 million, or 1.36% of portfolio loans and other real estate, as of September 30, 2014.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 89% and 92% of total funding as of September 30, 2015 and June 30, 2015, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 11% and 8% of total funding at September 30, 2015 and June 30, 2015, 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 as of September 30, 2015 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $344.1 million, for a total risk-based capital ratio of 18.21%, Common Equity Tier 1 capital was $275.4 million, for a Common Equity Tier 1 ratio of 14.57%, and Tier 1 capital was $320.4 million, for a Tier 1 risk-based capital ratio of 16.95%. Bank SNB had total regulatory capital of $296.9 million, for a total risk-based capital ratio of 15.77% and Common Equity Tier 1 and Tier 1 capital of $273.2 million, for a Common Equity Tier 1 and Tier 1 ratio of 14.51%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Third Quarter Results:
Summary: For the third quarter of 2015, net income was $4.1 million, compared to $4.2 million for the second quarter of 2015 and $5.3 million for the third quarter of 2014.
The $0.04 million decrease in net income compared to the second quarter of 2015 was primarily due to a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of $1.1 million, a $0.1 million increase in noninterest expense, and an increase in taxes of $0.1 million, offset in part by a $0.7 million increase in net interest income and a $0.6 million increase of noninterest income.
The $1.2 million decrease in our net income compared to the third quarter of 2014 was primarily the result of a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of $2.9 million and a $0.7 million increase in noninterest expense, offset in part by a $0.7 million increase in net interest income, a $0.9 million increase in noninterest income, and a $0.9 million decrease in taxes.
Net Interest Income: Net interest income totaled $16.5 million for the third quarter of 2015, compared to $15.8 million for the second quarter of 2015 and the third quarter of 2014. Net interest margin was 3.34% for the third quarter of 2015, compared to 3.31% for the second quarter of 2015 and 3.44% for the third quarter of 2014. Loans (including loans held for sale) for the third quarter of 2015 increased $98.7 million, or 7%, when compared to June 30, 2015, and $180.7 million, or 13%, when compared to September 30, 2014.
Provision (Credit) 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 provision of $0.02 million for the third quarter of 2015, compared to a negative provision of $1.1 million for the second quarter of 2015, and a negative provision of $2.9 million for the third quarter of 2014. The $98.7 million loan growth in the third quarter of 2015 accounts for $1.3 million of the excess provision for loan losses. During the third quarter of 2015, net recoveries totaled $0.4 million, or (0.09%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.03%) (annualized) of average portfolio loans for the second quarter of 2015 and net recoveries of $0.7 million, or (0.21%) (annualized) of average portfolio loans for the third quarter of 2014.
Noninterest Income: Noninterest income totaled $4.0 million for the third quarter of 2015, compared to $3.4 million for the second quarter of 2015 and $3.1 million for the third quarter of 2014.
The $0.6 million increase from the second quarter of 2015 is primarily the result of a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income, offset in part by a $0.1 million decrease in gain on sale of mortgage loans, and a $0.1 million decrease in gain on sale of securities.
The $0.9 million increase from the third quarter of 2014 is primarily the result of a $0.2 million increase in the gain on sale of mortgage loans and a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income and interest income on bank owned life insurance, offset in part by a $0.1 million decrease in service charges and fees.
Noninterest Expense: Noninterest expense totaled $14.1 million for the third quarter of 2015, compared to $14.0 million for the second quarter of 2015 and $13.4 million for the third quarter of 2014.
The $0.1 million increase in noninterest expense from the second quarter of 2015 was primarily due to a $0.1 million increase in each personnel expense, occupancy expense, and data processing, offset in part by a $0.1 million decrease in other real estate, and a $0.1 million decrease in general and administrative expense primarily related to the decrease in provision for unfunded loan commitments, and also included $0.3 million in FCBI acquisition expenses and $0.1 million in swap fee consulting expense, offset in part by the reversal of a prior accrual of a contingent liability.
The $0.7 million increase in noninterest expense from the third quarter of 2014 consisted of a $0.6 million increase in personnel expense, a $0.1 million increase in data processing, a $0.2 million increase in other real estate, and a $0.3 million increase in the provision for unfunded loan commitments, offset in part by a $0.6 million decrease in general and administrative expense, which includes primarily legal, accounting, and marketing expenses.
Income Tax: Income tax expense totaled $2.3 million for the third quarter of 2015, compared to $2.2 million for the second quarter of 2015 and $3.2 million for the third quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The third quarter of 2015 effective tax rate was 35.84%, compared to 34.51% for the second quarter of 2015 and 37.49% for the third quarter of 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Year-to-date Results:
Summary: Net income was $12.8 million for the nine months ended September 30, 2015, compared to $15.1 million for the nine months ended September 30, 2014. The $2.3 million decrease in net income from 2014 is the result of a $0.5 million decrease in net interest income, a $1.2 million decrease in the negative provision for loan losses, and a $4.1 million decrease in noninterest income, which is primarily the pre-tax net gain of $4.4 million on the sales of community bank branches in the second quarter of 2014, offset in part by a $1.7 million decrease in noninterest expense, primarily due to decreased general and administrative expense and other real estate expenses, and a $1.8 million decrease in income tax.
Net Interest Income: Net interest income totaled $47.9 million for the first nine months of 2015, compared to $48.4 million for the first nine months of 2014, a decrease of $0.5 million. Year-to-date net interest margin was 3.30%, compared to 3.43% for 2014. 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 a 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 (Credit) 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 or net recoveries for the period. The provision for loan losses was a credit (or negative) of $3.0 million for the first nine months of 2015, compared to a negative provision of $4.2 million for the first nine months of 2014. Net recoveries totaled $1.1 million, or (0.11%) (annualized) of average portfolio loans year-to-date as of September 30, 2015, compared to net charge-offs of $1.5 million, or 0.15% (annualized) of average portfolio loans for the same period in 2014.
Noninterest Income: Noninterest income totaled $10.3 million for the first nine months of 2015, compared to $14.4 million for the first nine months of 2014. The decrease consists of a $0.4 million decrease in service charges and fees, the $4.4 million recognized as the pre-tax net gain on the sales of the community bank branches in the second quarter of 2014, and a $0.6 million decrease in the gain on sale of investment securities, due to the gain on the sale of a stock investment that was acquired in a prior year repossession in 2014, offset in part by a $0.5 million increase in gains on sales of mortgage loans and a $0.8 million increase in other noninterest income, which includes customer risk management interest rate swap income and interest income on bank owned life insurance.
Noninterest Expense: Noninterest expense totaled $41.1 million for the first nine months of 2015, compared to $42.8 million for the first nine months of 2014. The decrease consists of a $0.2 million decrease in other real estate expense and a $1.7 million decrease in other general and administrative expenses, which primarily includes legal, marketing, travel, consulting, and is offset by $0.5 million in FCBI acquisition expenses. These decreases are offset in part by a $0.2 million increase in employee benefit expenses and a $0.1 million increase in the provision for unfunded loan commitments.
Income Tax: Income tax expense totaled $7.2 million for the first nine months of 2015, compared to $9.1 million for the first nine months of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 36.02% as of September 30, 2015, compared to 37.50% as of September 30, 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Conference Call
Southwest will host a conference call to review these results on Wednesday, October 21, 2015 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/10073037. 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/oksb151021.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 10073037. Telephone replay access will be available until 9:00 a.m. Eastern Time on November 21, 2015.
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, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At September 30, 2015, Southwest had total assets of approximately $2.1 billion, deposits of $1.6 billion, and shareholders’ equity of $277.3 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 remittance 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, 2015, approximately $429.5 million, or 28%, 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;
- Expectations regarding Southwest’s stock repurchase program;
- Expectations regarding dividends;
- Expectations regarding acquisitions and divestitures;
- 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, 2014. 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, 2015 through the date its financial statements are filed with the Securities and Exchange Commission. The September 30, 2015 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 | 2015 | % Change | 2014 | % Change | |||||||||||||||||||
| Operations | |||||||||||||||||||||||
| Net interest income | $ | 16,496 | $ | 15,791 | 4 | % | $ | 15,837 | 4 | % | |||||||||||||
| Provision (credit) for loan losses | 23 | (1,136 | ) | (102 | ) | (2,897 | ) | (101 | ) | ||||||||||||||
| Noninterest income | 4,029 | 3,409 | 18 | 3,084 | 31 | ||||||||||||||||||
| Noninterest expense | 14,077 | 13,982 | 1 | 13,358 | 5 | ||||||||||||||||||
| Income before taxes | 6,425 | 6,354 | 1 | 8,460 | (24 | ) | |||||||||||||||||
| Taxes on income | 2,303 | 2,193 | 5 | 3,172 | (27 | ) | |||||||||||||||||
| Net income | 4,122 | 4,161 | (1 | ) | 5,288 | (22 | ) | ||||||||||||||||
| Diluted earnings per share | 0.22 | 0.22 | - | 0.27 | (19 | ) | |||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||
| Total assets | 2,059,899 | 2,031,581 | 1 | 1,900,948 | 8 | ||||||||||||||||||
| Loans held for sale | 7,024 | 6,687 | 5 | 4,368 | 61 | ||||||||||||||||||
| Portfolio loans | 1,541,070 | 1,442,743 | 7 | 1,363,020 | 13 | ||||||||||||||||||
| Total deposits | 1,626,250 | 1,624,446 | 0 | 1,494,946 | 9 | ||||||||||||||||||
| Total shareholders' equity | 277,344 | 273,681 | 1 | 271,966 | 2 | ||||||||||||||||||
| Book value per common share | 14.57 | 14.38 | 1 | 13.90 | 5 | ||||||||||||||||||
| Key Ratios | |||||||||||||||||||||||
| Net interest margin | 3.34 | % | 3.31 | % | 3.44 | % | |||||||||||||||||
| Efficiency ratio | 68.25 | 72.43 | 70.60 | ||||||||||||||||||||
| Total capital to risk-weighted assets | 18.21 | 19.09 | 21.34 | ||||||||||||||||||||
| Nonperforming loans to portfolio loans | 0.98 | 0.62 | 1.10 | ||||||||||||||||||||
| Shareholders' equity to total assets | 13.46 | 13.47 | 14.31 | ||||||||||||||||||||
| Tangible common equity to tangible assets* | 13.40 | 13.40 | 14.23 | ||||||||||||||||||||
| Return on average assets (annualized) | 0.81 | 0.85 | 1.12 | ||||||||||||||||||||
| Return on average common equity (annualized) | 5.94 | 6.11 | 7.69 | ||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 5.97 | 6.14 | 7.72 | ||||||||||||||||||||
| Nine Months | |||||||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2015 | 2014 | % Change | ||||||||||||||||||||
| Operations | |||||||||||||||||||||||
| Net interest income | $ | 47,897 | $ | 48,412 | (1 | )% | |||||||||||||||||
| Provision (credit) for loan losses | (3,000 | ) | (4,238 | ) | (29 | ) | |||||||||||||||||
| Noninterest income | 10,278 | 14,355 | (28 | ) | |||||||||||||||||||
| Noninterest expense | 41,141 | 42,797 | (4 | ) | |||||||||||||||||||
| Income before taxes | 20,034 | 24,208 | (17 | ) | |||||||||||||||||||
| Taxes on income | 7,216 | 9,077 | (21 | ) | |||||||||||||||||||
| Net income | 12,818 | 15,131 | (15 | ) | |||||||||||||||||||
| Net income available to common shareholders | 12,818 | 15,131 | (15 | ) | |||||||||||||||||||
| Diluted earnings per share | 0.68 | 0.77 | (12 | ) | |||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||
| Total assets | 2,059,899 | 1,900,948 | 8 | ||||||||||||||||||||
| Loans held for sale | 7,024 | 4,368 | 61 | ||||||||||||||||||||
| Portfolio loans | 1,541,070 | 1,363,020 | 13 | ||||||||||||||||||||
| Total deposits | 1,626,250 | 1,494,946 | 9 | ||||||||||||||||||||
| Total shareholders' equity | 277,344 | 271,966 | 2 | ||||||||||||||||||||
| Book value per common share | 14.57 | 13.90 | 5 | ||||||||||||||||||||
| Key Ratios | |||||||||||||||||||||||
| Net interest margin | 3.30 | % | 3.43 | % | |||||||||||||||||||
| Efficiency ratio | 70.33 | 68.18 | |||||||||||||||||||||
| Total capital to risk-weighted assets | 18.21 | 21.34 | |||||||||||||||||||||
| Nonperforming loans to portfolio loans | 0.98 | 1.10 | |||||||||||||||||||||
| Shareholders' equity to total assets | 13.46 | 14.31 | |||||||||||||||||||||
| Tangible common equity to tangible assets* | 13.40 | 14.23 | |||||||||||||||||||||
| Return on average assets (annualized) | 0.86 | 1.04 | |||||||||||||||||||||
| Return on average common equity (annualized) | 6.27 | 7.54 | |||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 6.31 | 7.62 | |||||||||||||||||||||
| 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, | ||||||||||||
| 2015 | 2014 | 2014 | ||||||||||||
| Assets | ||||||||||||||
| Cash and due from banks | $ | 25,198 | $ | 19,705 | $ | 18,498 | ||||||||
| Interest-bearing deposits | 43,447 | 121,231 | 111,605 | |||||||||||
| Cash and cash equivalents | 68,645 | 140,936 | 130,103 | |||||||||||
| Securities held to maturity (fair values of $13,462, $12,880 and $11,265, respectively) | 12,954 | 12,362 | 10,663 | |||||||||||
| Securities available for sale (amortized cost of $373,219, $352,275 and $359,042, respectively) | 375,589 | 353,231 | 359,944 | |||||||||||
| Loans held for sale | 7,024 | 1,485 | 4,368 | |||||||||||
| Loans receivable (includes loss share of $0 in all periods) | 1,541,070 | 1,398,506 | 1,363,020 | |||||||||||
| Less: Allowance for loan losses | (26,593 | ) | (28,452 | ) | (30,917 | ) | ||||||||
| Net loans receivable | 1,514,477 | 1,370,054 | 1,332,103 | |||||||||||
| Accrued interest receivable | 4,872 | 4,723 | 4,952 | |||||||||||
| Non-hedge derivative asset | 2,344 | 787 | 166 | |||||||||||
| Premises and equipment, net | 18,180 | 18,588 | 18,986 | |||||||||||
| Other real estate | 2,274 | 3,097 | 3,448 | |||||||||||
| Goodwill | 1,214 | 1,214 | 1,214 | |||||||||||
| Other intangible assets, net | 3,973 | 3,927 | 3,866 | |||||||||||
| Other assets | 48,353 | 31,630 | 31,135 | |||||||||||
| Total assets | $ | 2,059,899 | $ | 1,942,034 | $ | 1,900,948 | ||||||||
| Liabilities | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest-bearing demand | $ | 526,159 | $ | 496,128 | $ | 445,148 | ||||||||
| Interest-bearing demand | 114,877 | 122,342 | 104,807 | |||||||||||
| Money market accounts | 502,028 | 461,679 | 477,614 | |||||||||||
| Savings accounts | 36,163 | 32,795 | 33,398 | |||||||||||
| Time deposits of $100,000 or more | 238,318 | 198,952 | 203,090 | |||||||||||
| Other time deposits | 208,705 | 222,103 | 230,889 | |||||||||||
| Total deposits | 1,626,250 | 1,533,999 | 1,494,946 | |||||||||||
| Accrued interest payable | 778 | 769 | 771 | |||||||||||
| Non-hedge derivative liability | 2,344 | 787 | 166 | |||||||||||
| Other liabilities | 9,989 | 9,920 | 10,822 | |||||||||||
| Other borrowings | 96,801 | 79,380 | 75,884 | |||||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | |||||||||||
| Total liabilities | 1,782,555 | 1,671,248 | 1,628,982 | |||||||||||
| Shareholders' equity | ||||||||||||||
| Common stock - $1 par value; 40,000,000 shares authorized; | ||||||||||||||
| 19,901,336, 19,810,877, and 19,793,623 shares issued, respectively | 19,901 | 19,811 | 19,794 | |||||||||||
| Additional paid-in capital | 101,611 | 101,245 | 100,971 | |||||||||||
| Retained earnings | 169,825 | 160,427 | 155,290 | |||||||||||
| Accumulated other comprehensive income (loss) | 372 | (395 | ) | (411 | ) | |||||||||
| Treasury stock, at cost, 868,617, 617,818 and 223,005 shares, respectively | (14,365 | ) | (10,302 | ) | (3,678 | ) | ||||||||
| Total shareholders' equity | 277,344 | 270,786 | 271,966 | |||||||||||
| Total liabilities and shareholders' equity | $ | 2,059,899 | $ | 1,942,034 | $ | 1,900,948 | ||||||||
| SOUTHWEST BANCORP, INC. | Table 3 | |||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| For the three months ended | For the nine months | |||||||||||||||||||||
| September 30, | June 30, | September 30, | ended September 30, | |||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Interest income | ||||||||||||||||||||||
| Loans | $ | 16,510 | $ | 15,839 | $ | 15,683 | $ | 47,919 | $ | 47,801 | ||||||||||||
| Investment securities | 1,443 | 1,328 | 1,534 | 4,120 | 4,812 | |||||||||||||||||
| Other interest-earning assets | 267 | 288 | 274 | 860 | 963 | |||||||||||||||||
| Total interest income | 18,220 | 17,455 | 17,491 | 52,899 | 53,576 | |||||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Interest-bearing deposits | 905 | 862 | 864 | 2,602 | 2,820 | |||||||||||||||||
| Other borrowings | 255 | 241 | 227 | 723 | 675 | |||||||||||||||||
| Subordinated debentures | 564 | 561 | 563 | 1,677 | 1,669 | |||||||||||||||||
| Total interest expense | 1,724 | 1,664 | 1,654 | 5,002 | 5,164 | |||||||||||||||||
| Net interest income | 16,496 | 15,791 | 15,837 | 47,897 | 48,412 | |||||||||||||||||
| Provision (credit) for loan losses | 23 | (1,136 | ) | (2,897 | ) | (3,000 | ) | (4,238 | ) | |||||||||||||
| Net interest income after provision for loan losses | 16,473 | 16,927 | 18,734 | 50,897 | 52,650 | |||||||||||||||||
| Noninterest income | ||||||||||||||||||||||
| Service charges and fees | 2,441 | 2,450 | 2,492 | 7,319 | 7,696 | |||||||||||||||||
| Gain on sale of branches, net | - | - | - | - | 4,378 | |||||||||||||||||
| Gain on sales of mortgage loans | 565 | 621 | 382 | 1,534 | 1,069 | |||||||||||||||||
| Gain on sale/call of investment securities, net | 19 | 138 | - | 162 | 764 | |||||||||||||||||
| Other noninterest income | 1,004 | 200 | 210 | 1,263 | 448 | |||||||||||||||||
| Total noninterest income | 4,029 | 3,409 | 3,084 | 10,278 | 14,355 | |||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||
| Salaries and employee benefits | 8,374 | 8,289 | 7,804 | 24,577 | 24,402 | |||||||||||||||||
| Occupancy | 2,288 | 2,201 | 2,269 | 6,773 | 6,805 | |||||||||||||||||
| Data processing | 475 | 410 | 343 | 1,331 | 1,359 | |||||||||||||||||
| FDIC and other insurance | 341 | 316 | 299 | 969 | 1,010 | |||||||||||||||||
| Other real estate, net | 20 | 112 | (220 | ) | 153 | 359 | ||||||||||||||||
| General and administrative | 2,579 | 2,654 | 2,863 | 7,338 | 8,862 | |||||||||||||||||
| Total noninterest expense | 14,077 | 13,982 | 13,358 | 41,141 | 42,797 | |||||||||||||||||
| Income before taxes | 6,425 | 6,354 | 8,460 | 20,034 | 24,208 | |||||||||||||||||
| Taxes on income | 2,303 | 2,193 | 3,172 | 7,216 | 9,077 | |||||||||||||||||
| Net income | $ | 4,122 | $ | 4,161 | $ | 5,288 | $ | 12,818 | $ | 15,131 | ||||||||||||
| Basic earnings per common share | $ | 0.22 | $ | 0.22 | $ | 0.27 | $ | 0.67 | $ | 0.77 | ||||||||||||
| Diluted earnings per common share | 0.22 | 0.22 | 0.27 | 0.68 | 0.77 | |||||||||||||||||
| Common dividends declared per share | 0.06 | 0.06 | 0.04 | 0.18 | 0.12 | |||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | ||||||||||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||
| September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||
| Loans | $ | 1,473,297 | 4.45 | % | $ | 1,439,050 | 4.41 | % | $ | 1,356,729 | 4.59 | % | |||||||||||||
| Investment securities | 387,194 | 1.48 | 369,677 | 1.44 | 378,924 | 1.61 | |||||||||||||||||||
| Other interest-earning assets | 100,011 | 1.06 | 103,943 | 1.11 | 88,653 | 1.23 | |||||||||||||||||||
| Total interest-earning assets | 1,960,502 | 3.69 | 1,912,670 | 3.66 | 1,824,306 | 3.80 | |||||||||||||||||||
| Other assets | 65,459 | 58,267 | 43,339 | ||||||||||||||||||||||
| Total assets | $ | 2,025,961 | $ | 1,970,937 | $ | 1,867,645 | |||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 123,829 | 0.12 | % | $ | 137,781 | 0.09 | % | $ | 109,245 | 0.12 | % | |||||||||||||
| Money market accounts | 497,935 | 0.17 | 473,993 | 0.15 | 437,632 | 0.14 | |||||||||||||||||||
| Savings accounts | 35,982 | 0.10 | 34,702 | 0.10 | 32,076 | 0.10 | |||||||||||||||||||
| Time deposits | 446,464 | 0.57 | 448,175 | 0.57 | 440,317 | 0.60 | |||||||||||||||||||
| Total interest-bearing deposits | 1,104,210 | 0.33 | 1,094,651 | 0.32 | 1,019,270 | 0.34 | |||||||||||||||||||
| Other borrowings | 76,799 | 1.32 | 60,568 | 1.60 | 85,423 | 1.05 | |||||||||||||||||||
| Subordinated debentures | 46,393 | 4.86 | 46,393 | 4.84 | 46,393 | 4.85 | |||||||||||||||||||
| Total interest-bearing liabilities | 1,227,402 | 0.56 | 1,201,612 | 0.56 | 1,151,086 | 0.57 | |||||||||||||||||||
| Noninterest-bearing demand deposits | 511,442 | 485,984 | 432,255 | ||||||||||||||||||||||
| Other liabilities | 11,708 | 10,005 | 11,442 | ||||||||||||||||||||||
| Shareholders' equity | 275,409 | 273,336 | 272,862 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,025,961 | $ | 1,970,937 | $ | 1,867,645 | |||||||||||||||||||
| Net interest income and spread | 3.13 | % | 3.10 | % | 3.23 | % | |||||||||||||||||||
| Net interest margin (1) | 3.34 | % | 3.31 | % | 3.44 | % | |||||||||||||||||||
| Average interest-earning assets | |||||||||||||||||||||||||
| to average interest-bearing liabilities | 159.73 | % | 159.18 | % | 158.49 | % | |||||||||||||||||||
| (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, | |||||||||||||||||
| 2015 | 2014 | ||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||
| Loans | $ | 1,444,026 | 4.44 | % | $ | 1,322,351 | 4.83 | % | |||||||||
| Investment securities | 374,987 | 1.47 | 383,950 | 1.68 | |||||||||||||
| Other interest-earning assets | 120,749 | 0.95 | 183,416 | 0.70 | |||||||||||||
| Total interest-earning assets | 1,939,762 | 3.65 | 1,889,717 | 3.79 | |||||||||||||
| Other assets | 57,787 | 47,780 | |||||||||||||||
| Total assets | $ | 1,997,549 | $ | 1,937,497 | |||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||
| Interest-bearing demand deposits | $ | 133,447 | 0.10 | % | $ | 124,652 | 0.12 | % | |||||||||
| Money market accounts | 485,571 | 0.16 | 431,802 | 0.14 | |||||||||||||
| Savings accounts | 34,688 | 0.10 | 39,941 | 0.10 | |||||||||||||
| Time deposits | 443,060 | 0.57 | 488,066 | 0.61 | |||||||||||||
| Total interest-bearing deposits | 1,096,766 | 0.32 | 1,084,461 | 0.35 | |||||||||||||
| Other borrowings | 69,908 | 1.38 | 83,987 | 1.07 | |||||||||||||
| Subordinated debentures | 46,393 | 4.82 | 46,393 | 4.80 | |||||||||||||
| Total interest-bearing liabilities | 1,213,067 | 0.55 | 1,214,841 | 0.57 | |||||||||||||
| Noninterest-bearing demand deposits | 500,263 | 443,520 | |||||||||||||||
| Other liabilities | 10,879 | 10,898 | |||||||||||||||
| Shareholders' equity | 273,340 | 268,238 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,997,549 | $ | 1,937,497 | |||||||||||||
| Net interest income and spread | 3.10 | % | 3.22 | % | |||||||||||||
| Net interest margin (1) | 3.30 | % | 3.43 | % | |||||||||||||
| Average interest-earning assets | |||||||||||||||||
| to average interest-bearing liabilities | 159.91 | % | 155.55 | % | |||||||||||||
| (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) | ||||||||||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||||
| LOAN COMPOSITION | ||||||||||||||||||||||||||||||||||
| Real estate mortgage: | ||||||||||||||||||||||||||||||||||
| Commercial | $ | 869,250 | $ | 759,406 | $ | 759,676 | $ | 752,971 | $ | 757,878 | $ | 769,021 | $ | 766,178 | ||||||||||||||||||||
| One-to-four family residential | 95,906 | 85,338 | 86,343 | 77,531 | 78,985 | 79,542 | 84,619 | |||||||||||||||||||||||||||
| Real estate construction: | ||||||||||||||||||||||||||||||||||
| Commercial | 126,407 | 186,140 | 192,052 | 186,659 | 166,379 | 166,981 | 166,007 | |||||||||||||||||||||||||||
| One-to-four family residential | 12,866 | 13,107 | 12,586 | 10,464 | 11,030 | 8,359 | 6,629 | |||||||||||||||||||||||||||
| Commercial | 423,480 | 384,788 | 366,282 | 350,410 | 330,738 | 300,163 | 266,311 | |||||||||||||||||||||||||||
| Installment and consumer: | ||||||||||||||||||||||||||||||||||
| Guaranteed student loans | - | - | - | 37 | 127 | 4,282 | 4,318 | |||||||||||||||||||||||||||
| Other | 20,185 | 20,651 | 21,306 | 21,919 | 22,251 | 23,352 | 26,060 | |||||||||||||||||||||||||||
| Total loans, including held for sale | 1,548,094 | 1,449,430 | 1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||||||||||||||||||||
| Less allowance for loan losses | (26,593 | ) | (26,219 | ) | (27,250 | ) | (28,452 | ) | (30,917 | ) | (33,083 | ) | (34,925 | ) | ||||||||||||||||||||
| Total loans, net | $ | 1,521,501 | $ | 1,423,211 | $ | 1,410,995 | $ | 1,371,539 | $ | 1,336,471 | $ | 1,318,617 | $ | 1,285,197 | ||||||||||||||||||||
| LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||||
| Oklahoma banking | $ | 832,282 | $ | 810,367 | $ | 814,949 | $ | 793,268 | $ | 800,201 | $ | 798,067 | $ | 777,384 | ||||||||||||||||||||
| Texas banking | 563,010 | 493,047 | 478,005 | 460,680 | 424,640 | 408,385 | 372,018 | |||||||||||||||||||||||||||
| Kansas banking | 152,802 | 146,016 | 145,291 | 146,043 | 142,547 | 145,248 | 170,720 | |||||||||||||||||||||||||||
| Total loans | $ | 1,548,094 | $ | 1,449,430 | $ | 1,438,245 | $ | 1,399,991 | $ | 1,367,388 | $ | 1,351,700 | $ | 1,320,122 | ||||||||||||||||||||
| NONPERFORMING LOANS BY TYPE | ||||||||||||||||||||||||||||||||||
| Construction & development | $ | 391 | $ | 416 | $ | 392 | $ | 73 | $ | 77 | $ | 82 | $ | 80 | ||||||||||||||||||||
| Commercial real estate | 1,795 | 2,141 | 2,247 | 2,195 | 7,504 | 7,613 | 7,541 | |||||||||||||||||||||||||||
| Commercial | 11,727 | 5,114 | 5,447 | 6,044 | 6,149 | 7,484 | 7,992 | |||||||||||||||||||||||||||
| One-to-four family residential | 1,016 | 1,216 | 1,065 | 1,100 | 1,274 | 1,180 | 470 | |||||||||||||||||||||||||||
| Consumer | 148 | - | - | 1 | 55 | 119 | 2 | |||||||||||||||||||||||||||
| Total nonperforming loans | $ | 15,077 | $ | 8,887 | $ | 9,151 | $ | 9,413 | $ | 15,059 | $ | 16,478 | $ | 16,085 | ||||||||||||||||||||
| NONPERFORMING LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||||
| Oklahoma banking | $ | 2,846 | $ | 1,670 | $ | 2,244 | $ | 1,867 | $ | 6,410 | $ | 7,149 | $ | 7,056 | ||||||||||||||||||||
| Texas banking | 11,025 | 5,353 | 5,264 | 5,699 | 5,777 | 5,636 | 5,793 | |||||||||||||||||||||||||||
| Kansas banking | 1,206 | 1,864 | 1,643 | 1,847 | 2,872 | 3,693 | 3,236 | |||||||||||||||||||||||||||
| Total nonperforming loans | $ | 15,077 | $ | 8,887 | $ | 9,151 | $ | 9,413 | $ | 15,059 | $ | 16,478 | $ | 16,085 | ||||||||||||||||||||
| OTHER REAL ESTATE BY TYPE | ||||||||||||||||||||||||||||||||||
| Construction & development | $ | 2,025 | $ | 2,035 | $ | 2,035 | $ | 2,035 | $ | 2,130 | $ | 2,130 | $ | 2,130 | ||||||||||||||||||||
| Commercial real estate | 249 | 358 | 220 | 1,062 | 1,318 | 2,155 | 2,524 | |||||||||||||||||||||||||||
| Total other real estate | $ | 2,274 | $ | 2,393 | $ | 2,255 | $ | 3,097 | $ | 3,448 | $ | 4,285 | $ | 4,654 | ||||||||||||||||||||
| OTHER REAL ESTATE BY SEGMENT | ||||||||||||||||||||||||||||||||||
| Oklahoma banking | $ | 200 | $ | 200 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
| Texas banking | 2,025 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||||||||||||||||||||
| Kansas banking | 49 | 193 | 255 | 1,097 | 1,448 | 2,285 | 2,654 | |||||||||||||||||||||||||||
| Total other real estate | $ | 2,274 | $ | 2,393 | $ | 2,255 | $ | 3,097 | $ | 3,448 | $ | 4,285 | $ | 4,654 | ||||||||||||||||||||
| Continued | ||||||||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | |||||||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||||
| POTENTIAL PROBLEM LOANS BY TYPE | ||||||||||||||||||||||||||||||||||
| Construction & development | $ | - | $ | - | $ | 201 | $ | 2,004 | $ | 19,307 | $ | 18,842 | $ | 22,220 | ||||||||||||||||||||
| Commercial real estate | 22,362 | 20,375 | 24,672 | 26,108 | 40,623 | 60,559 | 64,257 | |||||||||||||||||||||||||||
| Commercial | 7,366 | 14,519 | 14,016 | 5,842 | 4,090 | 4,299 | 4,807 | |||||||||||||||||||||||||||
| One-to-four family residential | 79 | 80 | 81 | 83 | 355 | 475 | 481 | |||||||||||||||||||||||||||
| Total potential problem loans | $ | 29,807 | $ | 34,974 | $ | 38,970 | $ | 34,037 | $ | 64,375 | $ | 84,175 | $ | 91,765 | ||||||||||||||||||||
| POTENTIAL PROBLEM LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||||
| Oklahoma banking | $ | 23,597 | $ | 23,231 | $ | 26,713 | $ | 24,950 | $ | 23,895 | $ | 23,887 | $ | 29,208 | ||||||||||||||||||||
| Texas banking | 4,086 | 9,180 | 9,541 | 6,283 | 38,586 | 57,044 | 58,361 | |||||||||||||||||||||||||||
| Kansas banking | 2,124 | 2,563 | 2,716 | 2,804 | 1,894 | 3,244 | 4,196 | |||||||||||||||||||||||||||
| Total potential problem loans | $ | 29,807 | $ | 34,974 | $ | 38,970 | $ | 34,037 | $ | 64,375 | $ | 84,175 | $ | 91,765 | ||||||||||||||||||||
| ALLOWANCE ACTIVITY | ||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 26,219 | $ | 27,250 | $ | 28,452 | $ | 30,917 | $ | 33,083 | $ | 34,925 | $ | 36,663 | ||||||||||||||||||||
| Charge offs | 226 | 325 | 230 | 377 | 1,156 | 1,991 | 3,392 | |||||||||||||||||||||||||||
| Recoveries | 577 | 430 | 915 | 298 | 1,887 | 504 | 2,640 | |||||||||||||||||||||||||||
| Net charge offs (recoveries) | (351 | ) | (105 | ) | (685 | ) | 79 | (731 | ) | 1,487 | 752 | |||||||||||||||||||||||
| Provision (credit) for loan losses | 23 | (1,136 | ) | (1,887 | ) | (2,386 | ) | (2,897 | ) | (355 | ) | (986 | ) | |||||||||||||||||||||
| Balance, end of period | $ | 26,593 | $ | 26,219 | $ | 27,250 | $ | 28,452 | $ | 30,917 | $ | 33,083 | $ | 34,925 | ||||||||||||||||||||
| NET CHARGE OFFS BY TYPE | ||||||||||||||||||||||||||||||||||
| Construction & development | $ | (16 | ) | $ | (15 | ) | $ | 5 | $ | - | $ | - | $ | - | $ | 655 | ||||||||||||||||||
| Commercial real estate | 24 | 82 | (118 | ) | (34 | ) | (640 | ) | 583 | (2,243 | ) | |||||||||||||||||||||||
| Commercial | (325 | ) | (52 | ) | (188 | ) | (45 | ) | 22 | 652 | 2,267 | |||||||||||||||||||||||
| One-to-four family residential | (68 | ) | (91 | ) | (331 | ) | 84 | 11 | (2 | ) | (18 | ) | ||||||||||||||||||||||
| Consumer | 34 | (29 | ) | (53 | ) | 74 | (124 | ) | 254 | 91 | ||||||||||||||||||||||||
| Total net charge offs (recoveries) by type | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | $ | 79 | $ | (731 | ) | $ | 1,487 | $ | 752 | ||||||||||||||||
| NET CHARGE OFFS BY SEGMENT | ||||||||||||||||||||||||||||||||||
| Oklahoma banking | $ | (86 | ) | $ | 25 | $ | (309 | ) | $ | 248 | $ | 67 | $ | 763 | $ | 229 | ||||||||||||||||||
| Texas banking | (103 | ) | (72 | ) | (114 | ) | (36 | ) | (611 | ) | 244 | (1,586 | ) | |||||||||||||||||||||
| Kansas banking | (162 | ) | (58 | ) | (262 | ) | (133 | ) | (187 | ) | 480 | 2,109 | ||||||||||||||||||||||
| Total net charge offs (recoveries) by segment | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | $ | 79 | $ | (731 | ) | $ | 1,487 | $ | 752 | ||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 7 | |||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | ||||||||||||||||||||
| (Dollars in thousands, except per share) | ||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.22 | $ | 0.22 | $ | 0.24 | $ | 0.30 | $ | 0.27 | $ | 0.31 | $ | 0.19 | ||||||
| Diluted earnings per common share | 0.22 | 0.22 | 0.24 | 0.30 | 0.27 | 0.31 | 0.19 | |||||||||||||
| Common dividends declared per share | 0.06 | 0.06 | 0.06 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||
| Book value per common share | 14.57 | 14.38 | 14.26 | 14.11 | 13.90 | 13.71 | 13.37 | |||||||||||||
| Tangible book value per share* | 14.49 | 14.29 | 14.17 | 14.02 | 13.80 | 13.61 | 13.21 | |||||||||||||
| COMMON STOCK | ||||||||||||||||||||
| Shares issued | 19,901,336 | 19,900,855 | 19,900,350 | 19,810,877 | 19,793,623 | 19,793,123 | 19,786,206 | |||||||||||||
| Less treasury shares | 868,617 | 867,310 | 867,310 | 617,818 | 223,005 | - | - | |||||||||||||
| Outstanding shares | 19,032,719 | 19,033,545 | 19,033,040 | 19,193,059 | 19,570,618 | 19,793,123 | 19,786,206 | |||||||||||||
| OTHER FINANCIAL DATA | ||||||||||||||||||||
| Investment securities | $ | 388,543 | $ | 373,260 | $ | 377,545 | $ | 365,593 | $ | 370,607 | $ | 385,873 | $ | 386,987 | ||||||
| Loans held for sale | 7,024 | 6,687 | 9,106 | 1,485 | 4,368 | 6,803 | 5,741 | |||||||||||||
| Portfolio loans | 1,541,070 | 1,442,743 | 1,429,139 | 1,398,506 | 1,363,020 | 1,344,897 | 1,314,381 | |||||||||||||
| Total loans | 1,548,094 | 1,449,430 | 1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||||||
| Total assets | 2,059,899 | 2,031,581 | 2,003,079 | 1,942,034 | 1,900,948 | 1,885,158 | 2,012,053 | |||||||||||||
| Total deposits | 1,626,250 | 1,624,446 | 1,616,454 | 1,533,999 | 1,494,946 | 1,463,855 | 1,605,906 | |||||||||||||
| Other borrowings | 96,801 | 75,839 | 58,578 | 79,380 | 75,884 | 90,760 | 85,692 | |||||||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||||||
| Total shareholders' equity | 277,344 | 273,681 | 271,444 | 270,786 | 271,966 | 271,351 | 264,586 | |||||||||||||
| Mortgage servicing portfolio | 422,845 | 415,961 | 407,903 | 410,315 | 401,756 | 397,339 | 391,303 | |||||||||||||
| INTANGIBLE ASSET DATA | ||||||||||||||||||||
| Goodwill | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | ||||||
| Core deposit intangible | 342 | 405 | 467 | 530 | 597 | 667 | 1,925 | |||||||||||||
| Mortgage servicing rights | 3,631 | 3,518 | 3,399 | 3,397 | 3,269 | 3,182 | 3,006 | |||||||||||||
| Total intangible assets | $ | 5,187 | $ | 5,137 | $ | 5,080 | $ | 5,141 | $ | 5,080 | $ | 5,063 | $ | 6,145 | ||||||
| Intangible amortization expense | $ | 243 | $ | 243 | $ | 168 | $ | 193 | $ | 195 | $ | 210 | $ | 183 | ||||||
| DEPOSIT COMPOSITION | ||||||||||||||||||||
| Non-interest bearing demand | $ | 526,159 | $ | 515,156 | $ | 506,952 | $ | 496,128 | $ | 445,148 | $ | 427,431 | $ | 471,568 | ||||||
| Interest-bearing demand | 114,877 | 131,547 | 140,659 | 122,342 | 104,807 | 124,712 | 132,622 | |||||||||||||
| Money market accounts | 502,028 | 496,178 | 488,569 | 461,679 | 477,614 | 430,296 | 440,875 | |||||||||||||
| Savings accounts | 36,163 | 35,647 | 34,413 | 32,795 | 33,398 | 31,187 | 47,532 | |||||||||||||
| Time deposits of $100,000 or more | 238,318 | 233,105 | 227,426 | 198,952 | 203,090 | 209,059 | 236,035 | |||||||||||||
| Other time deposits | 208,705 | 212,813 | 218,435 | 222,103 | 230,889 | 241,170 | 277,274 | |||||||||||||
| Total deposits** | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | $ | 1,533,999 | $ | 1,494,946 | $ | 1,463,855 | $ | 1,605,906 | ||||||
| OFFICES AND EMPLOYEES | ||||||||||||||||||||
| FTE Employees | 358 | 361 | 360 | 359 | 351 | 364 | 397 | |||||||||||||
| Branches | 23 | 23 | 22 | 21 | 21 | 21 | 24 | |||||||||||||
| Assets per employee | $ | 5,754 | $ | 5,628 | $ | 5,564 | $ | 5,410 | $ | 5,416 | $ | 5,179 | $ | 5,068 | ||||||
| *This is a Non-GAAP based financial measure. | ||||||||||||||||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | ||||||||||||||||||||
| Total deposits | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | $ | 1,533,999 | $ | 1,494,946 | $ | 1,463,855 | $ | 1,605,906 | ||||||
| Less: | ||||||||||||||||||||
| Brokered time deposits | 10,086 | 7,683 | 7,694 | 3,373 | 2,952 | 1,348 | 1,347 | |||||||||||||
| Other brokered deposits | 133,025 | 103,025 | 83,025 | 73,425 | 98,425 | 48,424 | 3,424 | |||||||||||||
| Non-brokered deposits | $ | 1,483,139 | $ | 1,513,738 | $ | 1,525,735 | $ | 1,457,201 | $ | 1,393,569 | $ | 1,414,083 | $ | 1,601,135 | ||||||
| Plus: | ||||||||||||||||||||
| Sweep repurchase agreements | 50,801 | 50,839 | 33,578 | 54,380 | 50,884 | 65,760 | 60,692 | |||||||||||||
| Core funding | $ | 1,533,940 | $ | 1,564,577 | $ | 1,559,313 | $ | 1,511,581 | $ | 1,444,453 | $ | 1,479,843 | $ | 1,661,827 | ||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | |||||||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||||||||||
| Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||||||||
| Return on average assets (annualized) | 0.81 | % | 0.85 | % | 0.92 | % | 1.22 | % | 1.12 | % | 1.27 | % | 0.75 | % | ||||||||||||||||||||
| Return on average common equity (annualized) | 5.94 | 6.11 | 6.78 | 8.62 | 7.69 | 9.19 | 5.68 | |||||||||||||||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||||||||||||||||
| (annualized)* | 5.97 | 6.14 | 6.82 | 8.67 | 7.74 | 9.30 | 5.75 | |||||||||||||||||||||||||||
| Net interest margin (annualized) | 3.34 | 3.31 | 3.25 | 3.52 | 3.44 | 3.50 | 3.33 | |||||||||||||||||||||||||||
| Total dividends declared to net income | 27.53 | 27.45 | 25.19 | 12.93 | 14.88 | 12.86 | 21.40 | |||||||||||||||||||||||||||
| Effective tax rate | 35.84 | 34.51 | 37.49 | 37.50 | 37.49 | 37.50 | 37.49 | |||||||||||||||||||||||||||
| Efficiency ratio | 68.25 | 72.43 | 70.47 | 68.90 | 71.39 | 74.25 | 73.61 | |||||||||||||||||||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 15,076 | $ | 8,887 | $ | 9,151 | $ | 9,276 | $ | 15,059 | $ | 16,478 | $ | 16,085 | ||||||||||||||||||||
| 90 days past due and accruing | 1 | - | - | 137 | - | - | - | |||||||||||||||||||||||||||
| Total nonperforming loans | 15,077 | 8,887 | 9,151 | 9,413 | 15,059 | 16,478 | 16,085 | |||||||||||||||||||||||||||
| Other real estate | 2,274 | 2,393 | 2,255 | 3,097 | 3,448 | 4,285 | 4,654 | |||||||||||||||||||||||||||
| Total nonperforming assets | $ | 17,351 | $ | 11,280 | $ | 11,406 | $ | 12,510 | $ | 18,507 | $ | 20,763 | $ | 20,739 | ||||||||||||||||||||
| Potential problem loans | $ | 29,807 | $ | 34,974 | $ | 38,970 | $ | 34,037 | $ | 64,375 | $ | 84,175 | $ | 91,765 | ||||||||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||||||||||||||
| Nonperforming assets to portfolio loans and | ||||||||||||||||||||||||||||||||||
| other real estate | 1.12 | % | 0.78 | % | 0.80 | % | 0.89 | % | 1.36 | % | 1.54 | % | 1.57 | % | ||||||||||||||||||||
| Nonperforming loans to portfolio loans | 0.98 | 0.62 | 0.64 | 0.67 | 1.10 | 1.23 | 1.22 | |||||||||||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.73 | 1.82 | 1.91 | 2.03 | 2.27 | 2.46 | 2.66 | |||||||||||||||||||||||||||
| Allowance for loan losses to | ||||||||||||||||||||||||||||||||||
| nonperforming loans | 176.38 | 295.03 | 297.78 | 302.26 | 205.29 | 200.77 | 217.13 | |||||||||||||||||||||||||||
| Net loan charge-offs to average portfolio | ||||||||||||||||||||||||||||||||||
| loans (annualized) | (0.09 | ) | (0.03 | ) | (0.20 | ) | 0.02 | (0.21 | ) | 0.45 | 0.24 | |||||||||||||||||||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||||||||||||
| Average total shareholders' equity to | ||||||||||||||||||||||||||||||||||
| average assets | 13.59 | % | 13.87 | % | 13.59 | % | 14.19 | % | 14.61 | % | 13.77 | % | 13.18 | % | ||||||||||||||||||||
| Leverage ratio | 15.84 | 16.12 | 15.75 | 16.45 | 16.86 | 15.95 | 15.09 | |||||||||||||||||||||||||||
| Common equity tier 1 capital | 14.57 | 15.30 | 15.51 | n/a | n/a | n/a | n/a | |||||||||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 16.95 | 17.84 | 18.10 | 19.70 | 20.05 | 20.13 | 19.98 | |||||||||||||||||||||||||||
| Total capital to risk-weighted assets | 18.21 | 19.09 | 19.36 | 20.96 | 21.34 | 21.43 | 21.29 | |||||||||||||||||||||||||||
| Tangible common equity to tangible assets*** | 13.40 | 13.40 | 13.48 | 13.87 | 14.23 | 14.31 | 13.01 | |||||||||||||||||||||||||||
| REGULATORY CAPITAL DATA | ||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital | $ | 275,350 | $ | 272,048 | $ | 269,007 | $ | n/a | $ | n/a | $ | n/a | $ | n/a | ||||||||||||||||||||
| Tier I capital | 320,350 | 317,048 | 314,007 | 314,216 | 314,120 | 309,600 | 299,938 | |||||||||||||||||||||||||||
| Total capital | 344,095 | 339,412 | 335,734 | 334,348 | 334,456 | 329,586 | 319,516 | |||||||||||||||||||||||||||
| Total risk adjusted assets | 1,889,892 | 1,777,618 | 1,734,401 | 1,595,032 | 1,566,996 | 1,537,903 | 1,500,957 | |||||||||||||||||||||||||||
| Average total assets | 2,022,972 | 1,966,577 | 1,993,446 | 1,910,688 | 1,863,127 | 1,941,064 | 1,987,231 | |||||||||||||||||||||||||||
| *This is a Non-GAAP based financial measure. | ||||||||||||||||||||||||||||||||||
| ***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure) | ||||||||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 277,344 | $ | 273,681 | $ | 271,444 | $ | 270,786 | $ | 271,966 | $ | 271,351 | $ | 264,586 | ||||||||||||||||||||
| Less goodwill and core deposit intangible | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||||||||||||||
| Tangible common equity | $ | 275,788 | $ | 272,062 | $ | 269,763 | $ | 269,042 | $ | 270,155 | $ | 269,470 | $ | 261,447 | ||||||||||||||||||||
| Total assets | $ | 2,059,899 | $ | 2,031,581 | $ | 2,003,079 | $ | 1,942,034 | $ | 1,900,948 | $ | 1,885,158 | $ | 2,012,053 | ||||||||||||||||||||
| Less goodwill and core deposit intangible | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||||||||||||||
| Tangible assets | $ | 2,058,343 | $ | 2,029,962 | $ | 2,001,398 | $ | 1,940,290 | $ | 1,899,137 | $ | 1,883,277 | $ | 2,008,914 | ||||||||||||||||||||
| Total shareholders' equity to total assets | 13.46 | % | 13.47 | % | 13.55 | % | 13.94 | % | 14.31 | % | 14.39 | % | 13.15 | % | ||||||||||||||||||||
| Tangible common equity to tangible assets | 13.40 | % | 13.40 | % | 13.48 | % | 13.87 | % | 14.23 | % | 14.31 | % | 13.01 | % | ||||||||||||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | ||||||||||||||||||||||||||||||||||