STILLWATER, Okla., Jan. 19, 2016 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the fourth quarter of 2015 of $4.6 million, or $0.23 per diluted share, compared to $5.9 million, or $0.30 per diluted share, for the fourth quarter of 2014. Included in the prior year’s fourth quarter results was a negative (credit) provision for loan losses of $2.4 million versus a negative (credit) provision of $0.6 million for the quarter ended December 31, 2015. Net income for the year ended December 31, 2015 totaled $17.4 million, or $0.90 per diluted share, compared to $21.0 million, or $1.07 per diluted share, for the year ended December 31, 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 $6.6 million, versus a negative (credit) provision for loan losses of $3.6 million for the year ended December 31, 2015.
Southwest announced that its board of directors has approved an increase in the quarterly cash dividend from $0.06 per share to $0.08 per share payable February 12, 2016 to shareholders of record as of January 29, 2016.
Mark Funke, President and CEO, stated, “The fourth quarter was a positive growth and expansion quarter for Bank SNB. We successfully completed the acquisition and integration of First Commercial Bancshares, Inc. We hired a market president and two commercial bankers to lead our newly established Denver banking efforts. The acquisition 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 fourth quarter reflect solid earnings and strong loan growth. Our efforts produced several highlights:
- Closed the acquisition of Edmond-based First Commercial Bancshares, Inc. (“FCBI”) October 9, 2015.
- Total loan growth was $231.3 million, including $194.0 million of FCBI acquired loans, or 15%, for the fourth quarter and $379.4 million, or 27%, for the year. We have had eight consecutive quarters of loan growth.
- Core loan growth (excluding the FCBI acquisition) for the year was $185.4 million, or 13%.
- The quarterly net interest margin improved to 3.48% at December 31, 2015 compared to 3.34% at September 30, 2015.
“Our financial results and the solid loan growth for the fourth quarter and the full year 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 risk and expenses.”
On February 24, 2015, Southwest’s board of directors authorized its second consecutive share repurchase program of up to 5.0% of its outstanding common stock, or approximately 950,000 shares, which became effective on August 14, 2015. The first share repurchase program, in August 2014, authorized up to 990,000 shares. Since August 2014, Southwest has repurchased 1,121,558 shares for a total of $18.8 million. During the fourth quarter of 2015, 254,248 shares for a total of $4.4 million were repurchased.
Financial Overview
Condition: As of December 31, 2015, total assets were $2.4 billion, an increase of $297.1 million, including FCBI acquired assets, when compared to September 30, 2015. At the date of acquisition, FCBI assets were $291.9 million. As of December 31, 2015, total loans were $1.8 billion, an increase of $231.3 million from the prior quarter end, including $194.0 million in acquired loans. As of December 31, 2015, investment securities were $412.1 million, an increase of $23.6 million from the prior quarter end, including $34.8 million in acquired investments. Cash and cash equivalents at December 31, 2015 were $78.1 million, up $9.5 million from September 30, 2015.
At December 31, 2015, the allowance for loan losses was $26.1 million, a decrease of $0.5 million when compared to September 30, 2015 and a decrease of $2.3 million when compared to December 31, 2014. The allowance for loan losses to portfolio loans was 1.47% as of December 31, 2015, compared to 1.73% as of September 30, 2015 and 2.03% as of December 31, 2014. The allowance for loan losses to nonperforming loans was 128.49% as of December 31, 2015, compared to 176.38% as of September 30, 2015 and 302.26% as of December 31, 2014. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.96% of gross loans.
Nonperforming loans were $20.3 million at December 31, 2015, an increase of $5.2 million from September 30, 2015, including $4.1 million of acquired nonperforming loans, and an increase of $10.9 million from December 31, 2014. Other real estate at December 31, 2015 was $2.3 million, which is flat from September 30, 2015, and a decrease of $0.8 million when compared to December 31, 2014. Nonperforming assets were $22.6 million, or 1.27% of portfolio loans and other real estate, as of December 31, 2015, compared to $17.4 million, or 1.12% of portfolio loans and other real estate, as of September 30, 2015, and $12.5 million, or 0.89% of portfolio loans and other real estate, as of December 31, 2014.
As of December 31, 2015, total deposits were $1.9 billion, an increase of $257.9 million, including $227.9 million of acquired deposits, when compared to September 30, 2015. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 88% and 89% of total funding as of December 31, 2015 and September 30, 2015, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 12% and 11% of total funding at December 31, 2015 and September 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 December 31, 2015 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $354.3 million, for a total risk-based capital ratio of 16.55%, Common Equity Tier 1 capital was $282.7 million, for a Common Equity Tier 1 ratio of 13.21%, and Tier 1 capital was $327.5 million, for a Tier 1 risk-based capital ratio of 15.30%. Bank SNB had total regulatory capital of $317.9 million, for a total risk-based capital ratio of 14.90% and Common Equity Tier 1 and Tier 1 capital of $291.1 million, for a Common Equity Tier 1 and Tier 1 ratio of 13.65%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Fourth Quarter Results:
Summary: For the fourth quarter of 2015, net income was $4.6 million, compared to $4.1 million for the third quarter of 2015 and $5.9 million for the fourth quarter of 2014. For the quarter, FCBI contributed $1.1 million of net income, which was substantially offset by deal costs, net of tax, of $1.0 million.
The $0.5 million increase in net income compared to the third quarter of 2015 was primarily due to $3.0 million increase in net interest income, a negative provision for loan losses of $0.6 million versus a small loan provision for loan losses in the previous quarter, and a $0.2 million increase in noninterest income, offset in part by a $3.0 million increase in noninterest expense including FCBI acquisition expenses, and an increase in taxes of $0.3 million.
The $1.3 million decrease in our net income compared to the fourth quarter of 2014 was primarily the result of a decrease in the negative provision for loan losses of $1.8 million, a $0.4 million decrease in noninterest income, a $3.0 million increase in noninterest expense, offset in part by a $2.9 million increase in net interest income and a $1.0 million decrease in taxes.
Net Interest Income: Net interest income totaled $19.5 million for the fourth quarter of 2015, compared to $16.5 million for the third quarter of 2015 and $16.6 million for the fourth quarter of 2014. Net interest margin was 3.48% for the fourth quarter of 2015, compared to 3.34% for the third quarter of 2015 and 3.52% for the fourth quarter of 2014. Included in interest income for the fourth quarter of 2015 was $0.3 million due to accelerated discount accretion attributable to the acquisition of FCBI. The net effect of these adjustments on the net interest margin was a 5 basis point increase for the quarter ended 2015. The FCBI acquisition contributed $2.7 million in net interest income including $0.3 million in accelerated discount accretion. Loans (including loans held for sale) for the fourth quarter of 2015 increased $231.3 million, or 15%, including $194.0 million of acquired loans, when compared to September 30, 2015, and $379.4 million, or 27%, when compared to December 31, 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 loan 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 of $0.6 million for the fourth quarter of 2015, compared to a provision of $0.02 million for the third quarter of 2015, and a negative provision of $2.4 million for the fourth quarter of 2014. During the fourth quarter of 2015, net recoveries totaled $0.1 million, or (0.02%) (annualized) of average portfolio loans, compared to net recoveries of $0.4 million, or (0.09%) (annualized) of average portfolio loans for the third quarter of 2015 and net charge-offs of $0.1 million, or 0.02% (annualized) of average portfolio loans for the fourth quarter of 2014.
Noninterest Income: Noninterest income totaled $4.2 million for the fourth quarter of 2015, compared to $4.0 million for the third quarter of 2015 and $4.6 million for the fourth quarter of 2014.
The $0.2 million increase from the third quarter of 2015 is primarily the result of a $0.2 million increase in service charges and fees and a $0.1 million increase in the gain on sale of mortgage loans, offset in part by a $0.1 million decrease in other noninterest income, primarily from customer risk management interest rate swap income.
The $0.4 million decrease from the fourth quarter of 2014 is primarily the result of a $1.1 million decrease in gain on investment securities related to the gain on sale of a private equity investment during the fourth quarter of 2014, offset in part by a $0.1 million increase in service charges and fees, a $0.2 million increase in the gain on sale of mortgage loans, and a $0.4 million increase in other noninterest income, primarily from customer risk management interest rate swap income and income on bank owned life insurance.
Noninterest Expense: Noninterest expense totaled $17.1 million for the fourth quarter of 2015, compared to $14.1 million for the third quarter of 2015 and the fourth quarter of 2014.
The $3.0 million increase in noninterest expense from the third quarter of 2015 was primarily due to a $1.9 million increase in personnel expense, a $0.3 million increase in occupancy, a $0.4 million increase in data processing, and a $0.4 million increase in general and administrative expense. Noninterest expense included $2.6 million of expenses related to the acquisition of FCBI and the associated deal costs.
The $3.0 million increase in noninterest expense from the fourth quarter of 2014 consisted of a $2.8 million increase in personnel expense, a $0.2 million increase in occupancy, a $0.4 million increase in data processing, and a $0.1 million increase in FDIC and other insurance, offset in part by a $0.2 million decrease in other real estate and a $0.4 million decrease in general and administrative expense, which includes primarily legal, accounting, and marketing expenses. Noninterest expense included $2.6 million of expenses related to the acquisition of FCBI and the associated deal costs.
Income Tax: Income tax expense totaled $2.6 million for the fourth quarter of 2015, compared to $2.3 million for the third quarter of 2015 and $3.5 million for the fourth quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2015 effective tax rate was 35.96%, compared to 35.84% for the third quarter of 2015 and 37.50% for the fourth 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 $17.4 million for the year ended December 31, 2015, compared to $21.0 million for the year ended December 31, 2014. The $3.6 million decrease in net income from 2014 is the result of a $3.1 million decrease in the negative provision for loan losses, a $4.5 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, and a $1.3 million increase in noninterest expense, offset in part by a $2.4 million increase in net interest income and a $2.8 million decrease in income tax. For the year, FCBI contributed $1.1 million of net income, which was offset by, net of tax, deal costs of $1.2 million.
Net Interest Income: Net interest income totaled $67.4 million for 2015, compared to $65.0 million for 2014, an increase of $2.4 million. Year-to-date net interest margin was 3.35%, compared to 3.45% for 2014. Included in interest income for 2015 was $0.3 million due to accelerated discount accretion attributable to the acquisition of FCBI. The net effect of these adjustments on the net interest margin was a 2 basis point increase for the year ended 2015. Included in interest income for 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by a loss share agreement and $0.8 million due to the interest recovery on nonaccrual loans. The net effect of these adjustments on the net interest margin was a 8 basis point increase for the year ended 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 loan 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 $3.6 million for 2015, compared to a negative provision of $6.6 million for 2014. Net recoveries totaled $1.2 million, or (0.08%) (annualized) of average portfolio loans year-to-date as of 2015, compared to net charge-offs of $1.6 million, or 0.12% (annualized) of average portfolio loans for 2014.
Noninterest Income: Noninterest income totaled $14.5 million for 2015, compared to $18.9 million for 2014. The decrease consists of a $0.2 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 $1.7 million decrease in the gain on sale of investment securities, due to the gain on sale of a private equity investment and the gain on the sale of a stock investment that was acquired in a prior year repossession in 2014, offset in part by a $0.6 million increase in gain on sales of mortgage loans and a $1.2 million increase in other noninterest income, which includes customer risk management interest rate swap income and income on bank owned life insurance.
Noninterest Expense: Noninterest expense totaled $58.2 million for 2015, compared to $56.9 million for 2014. The increase consists of a $3.0 million increase in salaries and employee benefits, a $0.2 million increase in occupancy expense, and a $0.4 million increase in data processing. These increases are offset in part by a $0.4 million decrease in other real estate expense and a $1.9 million decrease in general and administrative expenses, which primarily includes legal, marketing, and consulting. Noninterest expense included $3.1 million of expenses related to the acquisition of FCBI and the associated deal costs.
Income Tax: Income tax expense totaled $9.8 million for 2015, compared to $12.6 million for 2014. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 36.00% as of December 31, 2015, compared to 37.50% as of December 31, 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, January 20, 2016 at 11:00 a.m. Eastern Time (10:00 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/10077971. 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/oksb160120.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 10077971. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 20, 2016.
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 December 31, 2015, Southwest had total assets of approximately $2.4 billion, deposits of $1.9 billion, and shareholders’ equity of $296.1 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 December 31, 2015, approximately $425.7 million, or 24%, 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 December 31, 2015 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 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) | ||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS | 2015 | % Change | 2014 | % Change | ||||||||||||||||||||
| Operations | ||||||||||||||||||||||||
| Net interest income | $ | 19,520 | $ | 16,496 | 18 | % | $ | 16,592 | 18 | % | ||||||||||||||
| Provision (credit) for loan losses | (566 | ) | 23 | (2,561 | ) | (2,386 | ) | (76 | ) | |||||||||||||||
| Noninterest income | 4,179 | 4,029 | 4 | 4,576 | (9 | ) | ||||||||||||||||||
| Noninterest expense | 17,099 | 14,077 | 21 | 14,115 | 21 | |||||||||||||||||||
| Income before taxes | 7,166 | 6,425 | 12 | 9,439 | (24 | ) | ||||||||||||||||||
| Taxes on income | 2,577 | 2,303 | 12 | 3,540 | (27 | ) | ||||||||||||||||||
| Net income | 4,589 | 4,122 | 11 | 5,899 | (22 | ) | ||||||||||||||||||
| Diluted earnings per share | 0.23 | 0.22 | 5 | 0.30 | (23 | ) | ||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||
| Total assets | 2,357,022 | 2,059,899 | 14 | 1,942,034 | 21 | |||||||||||||||||||
| Loans held for sale | 7,453 | 7,024 | 6 | 1,485 | 402 | |||||||||||||||||||
| Portfolio loans | 1,771,976 | 1,541,070 | 15 | 1,398,506 | 27 | |||||||||||||||||||
| Total deposits | 1,884,105 | 1,626,250 | 16 | 1,533,999 | 23 | |||||||||||||||||||
| Total shareholders' equity | 296,098 | 277,344 | 7 | 270,786 | 9 | |||||||||||||||||||
| Book value per common share | 14.80 | 14.57 | 2 | 14.11 | 5 | |||||||||||||||||||
| Key Ratios | ||||||||||||||||||||||||
| Net interest margin | 3.48 | % | 3.34 | % | 3.52 | % | ||||||||||||||||||
| Efficiency ratio | 71.49 | 68.25 | 66.68 | |||||||||||||||||||||
| Total capital to risk-weighted assets | 16.55 | 18.21 | 20.96 | |||||||||||||||||||||
| Nonperforming loans to portfolio loans | 1.15 | 0.98 | 0.67 | |||||||||||||||||||||
| Shareholders' equity to total assets | 12.56 | 13.46 | 13.94 | |||||||||||||||||||||
| Tangible common equity to tangible assets* | 11.95 | 13.40 | 13.89 | |||||||||||||||||||||
| Return on average assets (annualized) | 0.78 | 0.81 | 1.22 | |||||||||||||||||||||
| Return on average common equity (annualized) | 6.14 | 5.94 | 8.62 | |||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 6.46 | 5.97 | 8.66 | |||||||||||||||||||||
| Year | ||||||||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2015 | 2014 | % Change | |||||||||||||||||||||
| Operations | ||||||||||||||||||||||||
| Net interest income | $ | 67,417 | $ | 65,004 | 4 | % | ||||||||||||||||||
| Provision (credit) for loan losses | (3,566 | ) | (6,624 | ) | (46 | ) | ||||||||||||||||||
| Noninterest income | 14,457 | 18,931 | (24 | ) | ||||||||||||||||||||
| Noninterest expense | 58,240 | 56,912 | 2 | |||||||||||||||||||||
| Income before taxes | 27,200 | 33,647 | (19 | ) | ||||||||||||||||||||
| Taxes on income | 9,793 | 12,617 | (22 | ) | ||||||||||||||||||||
| Net income | 17,407 | 21,030 | (17 | ) | ||||||||||||||||||||
| Net income available to common shareholders | 17,407 | 21,030 | (17 | ) | ||||||||||||||||||||
| Diluted earnings per share | 0.90 | 1.07 | (16 | ) | ||||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||
| Total assets | 2,357,022 | 1,942,034 | 21 | |||||||||||||||||||||
| Loans held for sale | 7,453 | 1,485 | 402 | |||||||||||||||||||||
| Portfolio loans | 1,771,976 | 1,398,506 | 27 | |||||||||||||||||||||
| Total deposits | 1,884,105 | 1,533,999 | 23 | |||||||||||||||||||||
| Total shareholders' equity | 296,098 | 270,786 | 9 | |||||||||||||||||||||
| Book value per common share | 14.80 | 14.11 | 5 | |||||||||||||||||||||
| Key Ratios | ||||||||||||||||||||||||
| Net interest margin | 3.35 | % | 3.45 | % | ||||||||||||||||||||
| Efficiency ratio | 70.67 | 67.80 | ||||||||||||||||||||||
| Total capital to risk-weighted assets | 16.55 | 20.96 | ||||||||||||||||||||||
| Nonperforming loans to portfolio loans | 1.15 | 0.67 | ||||||||||||||||||||||
| Shareholders' equity to total assets | 12.56 | 13.94 | ||||||||||||||||||||||
| Tangible common equity to tangible assets* | 11.95 | 13.89 | ||||||||||||||||||||||
| Return on average assets (annualized) | 0.84 | 1.09 | ||||||||||||||||||||||
| Return on average common equity (annualized) | 6.23 | 7.82 | ||||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 6.35 | 7.85 | ||||||||||||||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | ||||||||||||||||||||||||
| * This is a Non-GAAP financial measure. Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure. | ||||||||||||||||||||||||
| ** This is a Non-GAAP financial measure. | ||||||||||||||||||||||||
| Please see accompanying tables for additional financial information. | ||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 2 | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||
| (Dollars in thousands) | |||||||||
| December 31, | December 31, | ||||||||
| 2015 | 2014 | ||||||||
| Assets | |||||||||
| Cash and due from banks | $ | 24,971 | $ | 19,705 | |||||
| Interest-bearing deposits | 53,158 | 121,231 | |||||||
| Cash and cash equivalents | 78,129 | 140,936 | |||||||
| Securities held to maturity (fair values of $12,282 and $12,880, respectively) | 11,797 | 12,362 | |||||||
| Securities available for sale (amortized cost of $401,136 and $352,275, respectively) | 400,331 | 353,231 | |||||||
| Loans held for sale | 7,453 | 1,485 | |||||||
| Loans receivable | 1,771,976 | 1,398,506 | |||||||
| Less: Allowance for loan losses | (26,106 | ) | (28,452 | ) | |||||
| Net loans receivable | 1,745,870 | 1,370,054 | |||||||
| Accrued interest receivable | 5,767 | 4,723 | |||||||
| Non-hedge derivative asset | 1,793 | 787 | |||||||
| Premises and equipment, net | 23,819 | 18,588 | |||||||
| Other real estate | 2,274 | 3,097 | |||||||
| Goodwill | 13,467 | 1,214 | |||||||
| Other intangible assets, net | 6,615 | 3,927 | |||||||
| Other assets | 59,707 | 31,630 | |||||||
| Total assets | $ | 2,357,022 | $ | 1,942,034 | |||||
| Liabilities | |||||||||
| Deposits: | |||||||||
| Noninterest-bearing demand | $ | 596,494 | $ | 496,128 | |||||
| Interest-bearing demand | 151,015 | 122,342 | |||||||
| Money market accounts | 534,357 | 461,679 | |||||||
| Savings accounts | 56,333 | 32,795 | |||||||
| Time deposits of $100,000 or more | 311,538 | 198,952 | |||||||
| Other time deposits | 234,368 | 222,103 | |||||||
| Total deposits | 1,884,105 | 1,533,999 | |||||||
| Accrued interest payable | 867 | 769 | |||||||
| Non-hedge derivative liability | 1,793 | 787 | |||||||
| Other liabilities | 11,684 | 9,920 | |||||||
| Other borrowings | 110,927 | 79,380 | |||||||
| Subordinated debentures | 51,548 | 46,393 | |||||||
| Total liabilities | 2,060,924 | 1,671,248 | |||||||
| Shareholders' equity | |||||||||
| Common stock - $1 par value; 40,000,000 shares authorized; | |||||||||
| 21,138,028 and 19,810,877 shares issued, respectively | 21,138 | 19,811 | |||||||
| Additional paid-in capital | 121,966 | 101,245 | |||||||
| Retained earnings | 173,210 | 160,427 | |||||||
| Accumulated other comprehensive income (loss) | (1,290 | ) | (395 | ) | |||||
| Treasury stock, at cost, 1,131,226 and 617,818 shares, respectively | (18,926 | ) | (10,302 | ) | |||||
| Total shareholders' equity | 296,098 | 270,786 | |||||||
| Total liabilities and shareholders' equity | $ | 2,357,022 | $ | 1,942,034 | |||||
| SOUTHWEST BANCORP, INC. | Table 3 | |||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| For the three months ended | For the year | |||||||||||||||||||||
| December 31, | September 30, | December 31, | ended December 31, | |||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Interest income | ||||||||||||||||||||||
| Loans | $ | 19,725 | $ | 16,510 | $ | 16,423 | $ | 67,644 | $ | 64,224 | ||||||||||||
| Investment securities | 1,813 | 1,644 | 1,737 | 6,559 | 7,146 | |||||||||||||||||
| Other interest-earning assets | 46 | 66 | 56 | 280 | 422 | |||||||||||||||||
| Total interest income | 21,584 | 18,220 | 18,216 | 74,483 | 71,792 | |||||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Interest-bearing deposits | 1,196 | 905 | 835 | 3,798 | 3,655 | |||||||||||||||||
| Other borrowings | 261 | 255 | 225 | 984 | 900 | |||||||||||||||||
| Subordinated debentures | 607 | 564 | 564 | 2,284 | 2,233 | |||||||||||||||||
| Total interest expense | 2,064 | 1,724 | 1,624 | 7,066 | 6,788 | |||||||||||||||||
| Net interest income | 19,520 | 16,496 | 16,592 | 67,417 | 65,004 | |||||||||||||||||
| Provision (credit) for loan losses | (566 | ) | 23 | (2,386 | ) | (3,566 | ) | (6,624 | ) | |||||||||||||
| Net interest income after provision for loan losses | 20,086 | 16,473 | 18,978 | 70,983 | 71,628 | |||||||||||||||||
| Noninterest income | ||||||||||||||||||||||
| Service charges and fees | 2,676 | 2,441 | 2,526 | 9,995 | 10,222 | |||||||||||||||||
| Gain on sale of branches, net | - | - | - | - | 4,378 | |||||||||||||||||
| Gain on sales of mortgage loans | 645 | 565 | 480 | 2,179 | 1,549 | |||||||||||||||||
| Gain on sale/call of investment securities, net | - | 19 | 1,120 | 162 | 1,884 | |||||||||||||||||
| Other noninterest income | 858 | 1,004 | 450 | 2,121 | 898 | |||||||||||||||||
| Total noninterest income | 4,179 | 4,029 | 4,576 | 14,457 | 18,931 | |||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||
| Salaries and employee benefits | 10,273 | 8,374 | 7,428 | 34,850 | 31,830 | |||||||||||||||||
| Occupancy | 2,586 | 2,288 | 2,388 | 9,359 | 9,193 | |||||||||||||||||
| Data processing | 847 | 475 | 417 | 2,178 | 1,776 | |||||||||||||||||
| FDIC and other insurance | 384 | 341 | 295 | 1,353 | 1,305 | |||||||||||||||||
| Other real estate, net | 8 | 20 | 235 | 161 | 594 | |||||||||||||||||
| General and administrative | 3,001 | 2,579 | 3,352 | 10,339 | 12,214 | |||||||||||||||||
| Total noninterest expense | 17,099 | 14,077 | 14,115 | 58,240 | 56,912 | |||||||||||||||||
| Income before taxes | 7,166 | 6,425 | 9,439 | 27,200 | 33,647 | |||||||||||||||||
| Taxes on income | 2,577 | 2,303 | 3,540 | 9,793 | 12,617 | |||||||||||||||||
| Net income | $ | 4,589 | $ | 4,122 | $ | 5,899 | $ | 17,407 | $ | 21,030 | ||||||||||||
| Basic earnings per common share | $ | 0.23 | $ | 0.22 | $ | 0.30 | $ | 0.90 | $ | 1.07 | ||||||||||||
| Diluted earnings per common share | 0.23 | 0.22 | 0.30 | 0.90 | 1.07 | |||||||||||||||||
| Common dividends declared per share | 0.06 | 0.06 | 0.04 | 0.24 | 0.16 | |||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | ||||||||||||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
| Loans | $ | 1,744,374 | 4.49 | % | $ | 1,473,297 | 4.45 | % | $ | 1,369,852 | 4.76 | % | |||||||||||||||
| Investment securities | 413,701 | 1.74 | 387,194 | 1.68 | 367,978 | 1.87 | |||||||||||||||||||||
| Other interest-earning assets | 64,562 | 0.28 | 100,011 | 0.26 | 132,418 | 0.17 | |||||||||||||||||||||
| Total interest-earning assets | 2,222,637 | 3.85 | 1,960,502 | 3.69 | 1,870,248 | 3.86 | |||||||||||||||||||||
| Other assets | 101,003 | 65,459 | 44,268 | ||||||||||||||||||||||||
| Total assets | $ | 2,323,640 | $ | 2,025,961 | $ | 1,914,516 | |||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 137,154 | 0.15 | % | $ | 123,829 | 0.12 | % | $ | 114,035 | 0.11 | % | |||||||||||||||
| Money market accounts | 541,976 | 0.18 | 497,935 | 0.17 | 466,937 | 0.15 | |||||||||||||||||||||
| Savings accounts | 53,603 | 0.13 | 35,982 | 0.10 | 32,824 | 0.10 | |||||||||||||||||||||
| Time deposits | 548,145 | 0.63 | 446,464 | 0.57 | 427,582 | 0.57 | |||||||||||||||||||||
| Total interest-bearing deposits | 1,280,878 | 0.37 | 1,104,210 | 0.33 | 1,041,378 | 0.32 | |||||||||||||||||||||
| Other borrowings | 80,343 | 1.29 | 76,799 | 1.32 | 79,932 | 1.12 | |||||||||||||||||||||
| Subordinated debentures | 51,044 | 4.76 | 46,393 | 4.86 | 46,393 | 4.86 | |||||||||||||||||||||
| Total interest-bearing liabilities | 1,412,265 | 0.58 | 1,227,402 | 0.56 | 1,167,703 | 0.55 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 594,537 | 511,442 | 465,466 | ||||||||||||||||||||||||
| Other liabilities | 20,149 | 11,708 | 9,765 | ||||||||||||||||||||||||
| Shareholders' equity | 296,689 | 275,409 | 271,582 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,323,640 | $ | 2,025,961 | $ | 1,914,516 | |||||||||||||||||||||
| Net interest income and spread | 3.27 | % | 3.13 | % | 3.31 | % | |||||||||||||||||||||
| Net interest margin (1) | 3.48 | % | 3.34 | % | 3.52 | % | |||||||||||||||||||||
| Average interest-earning assets | |||||||||||||||||||||||||||
| to average interest-bearing liabilities | 157.38 | % | 159.73 | % | 160.16 | % | |||||||||||||||||||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | |||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 5 | ||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| For the year ended December 31, | |||||||||||||||||
| 2015 | 2014 | ||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||
| Loans | $ | 1,519,730 | 4.45 | % | $ | 1,334,323 | 4.81 | % | |||||||||
| Investment securities | 384,745 | 1.70 | 379,924 | 1.88 | |||||||||||||
| Other interest-earning assets | 106,587 | 0.26 | 170,563 | 0.25 | |||||||||||||
| Total interest-earning assets | 2,011,062 | 3.70 | 1,884,810 | 3.81 | |||||||||||||
| Other assets | 68,680 | 46,894 | |||||||||||||||
| Total assets | $ | 2,079,742 | $ | 1,931,704 | |||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||
| Interest-bearing demand deposits | $ | 134,381 | 0.11 | % | $ | 121,976 | 0.12 | % | |||||||||
| Money market accounts | 499,788 | 0.17 | 440,658 | 0.14 | |||||||||||||
| Savings accounts | 39,456 | 0.11 | 38,147 | 0.10 | |||||||||||||
| Time deposits | 469,547 | 0.59 | 472,820 | 0.60 | |||||||||||||
| Total interest-bearing deposits | 1,143,172 | 0.33 | 1,073,601 | 0.34 | |||||||||||||
| Other borrowings | 72,538 | 1.36 | 82,965 | 1.08 | |||||||||||||
| Subordinated debentures | 47,565 | 4.80 | 46,393 | 4.81 | |||||||||||||
| Total interest-bearing liabilities | 1,263,275 | 0.56 | 1,202,959 | 0.56 | |||||||||||||
| Noninterest-bearing demand deposits | 524,025 | 449,052 | |||||||||||||||
| Other liabilities | 13,217 | 10,612 | |||||||||||||||
| Shareholders' equity | 279,225 | 269,081 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,079,742 | $ | 1,931,704 | |||||||||||||
| Net interest income and spread | 3.14 | % | 3.25 | % | |||||||||||||
| Net interest margin (1) | 3.35 | % | 3.45 | % | |||||||||||||
| Average interest-earning assets | |||||||||||||||||
| to average interest-bearing liabilities | 159.19 | % | 156.68 | % | |||||||||||||
| (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 | ||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||||||||
| LOAN COMPOSITION | |||||||||||||||||||||||||||||||||||||||
| Real estate mortgage: | |||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 938,462 | $ | 869,250 | $ | 759,406 | $ | 759,676 | $ | 752,971 | $ | 757,878 | $ | 769,021 | $ | 766,178 | |||||||||||||||||||||||
| One-to-four family residential | 161,958 | 95,906 | 85,338 | 86,343 | 77,531 | 78,985 | 79,542 | 84,619 | |||||||||||||||||||||||||||||||
| Real estate construction: | |||||||||||||||||||||||||||||||||||||||
| Commercial | 129,070 | 126,407 | 186,140 | 192,052 | 186,659 | 166,379 | 166,981 | 166,007 | |||||||||||||||||||||||||||||||
| One-to-four family residential | 21,337 | 12,866 | 13,107 | 12,586 | 10,464 | 11,030 | 8,359 | 6,629 | |||||||||||||||||||||||||||||||
| Commercial | 507,173 | 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 | 21,429 | 20,185 | 20,651 | 21,306 | 21,919 | 22,251 | 23,352 | 26,060 | |||||||||||||||||||||||||||||||
| Total loans, including held for sale | 1,779,429 | 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 | (26,106 | ) | (26,593 | ) | (26,219 | ) | (27,250 | ) | (28,452 | ) | (30,917 | ) | (33,083 | ) | (34,925 | ) | |||||||||||||||||||||||
| Total loans, net | $ | 1,753,323 | $ | 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**** | $ | 1,048,473 | $ | 832,282 | $ | 810,367 | $ | 814,949 | $ | 793,268 | $ | 800,201 | $ | 798,067 | $ | 777,384 | |||||||||||||||||||||||
| Texas banking | 580,476 | 563,010 | 493,047 | 478,005 | 460,680 | 424,640 | 408,385 | 372,018 | |||||||||||||||||||||||||||||||
| Kansas banking | 150,480 | 152,802 | 146,016 | 145,291 | 146,043 | 142,547 | 145,248 | 170,720 | |||||||||||||||||||||||||||||||
| Total loans | $ | 1,779,429 | $ | 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 | $ | 1,010 | $ | 391 | $ | 416 | $ | 392 | $ | 73 | $ | 77 | $ | 82 | $ | 80 | |||||||||||||||||||||||
| Commercial real estate | 3,992 | 1,795 | 2,141 | 2,247 | 2,195 | 7,504 | 7,613 | 7,541 | |||||||||||||||||||||||||||||||
| Commercial | 13,491 | 11,727 | 5,114 | 5,447 | 6,044 | 6,149 | 7,484 | 7,992 | |||||||||||||||||||||||||||||||
| One-to-four family residential | 1,777 | 1,016 | 1,216 | 1,065 | 1,100 | 1,274 | 1,180 | 470 | |||||||||||||||||||||||||||||||
| Consumer | 88 | 148 | - | - | 1 | 55 | 119 | 2 | |||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | $ | 9,413 | $ | 15,059 | $ | 16,478 | $ | 16,085 | |||||||||||||||||||||||
| NONPERFORMING LOANS BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 6,948 | $ | 2,846 | $ | 1,670 | $ | 2,244 | $ | 1,867 | $ | 6,410 | $ | 7,149 | $ | 7,056 | |||||||||||||||||||||||
| Texas banking | 12,450 | 11,025 | 5,353 | 5,264 | 5,699 | 5,777 | 5,636 | 5,793 | |||||||||||||||||||||||||||||||
| Kansas banking | 960 | 1,206 | 1,864 | 1,643 | 1,847 | 2,872 | 3,693 | 3,236 | |||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | $ | 9,413 | $ | 15,059 | $ | 16,478 | $ | 16,085 | |||||||||||||||||||||||
| OTHER REAL ESTATE BY TYPE | |||||||||||||||||||||||||||||||||||||||
| Construction & development | $ | 2,060 | $ | 2,025 | $ | 2,035 | $ | 2,035 | $ | 2,035 | $ | 2,130 | $ | 2,130 | $ | 2,130 | |||||||||||||||||||||||
| Commercial real estate | 214 | 249 | 358 | 220 | 1,062 | 1,318 | 2,155 | 2,524 | |||||||||||||||||||||||||||||||
| Total other real estate | $ | 2,274 | $ | 2,274 | $ | 2,393 | $ | 2,255 | $ | 3,097 | $ | 3,448 | $ | 4,285 | $ | 4,654 | |||||||||||||||||||||||
| OTHER REAL ESTATE BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 274 | $ | 200 | $ | 200 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||
| Texas banking | 2,000 | 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 | $ | 2,274 | $ | 2,393 | $ | 2,255 | $ | 3,097 | $ | 3,448 | $ | 4,285 | $ | 4,654 | |||||||||||||||||||||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | |||||||||||||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||||||||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | ||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||||||||||||||||||||||
| Dec. 31 | 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 | 26,981 | 22,362 | 20,375 | 24,672 | 26,108 | 40,623 | 60,559 | 64,257 | |||||||||||||||||||||||||||||||
| Commercial | 9,879 | 7,366 | 14,519 | 14,016 | 5,842 | 4,090 | 4,299 | 4,807 | |||||||||||||||||||||||||||||||
| One-to-four family residential | 2,285 | 79 | 80 | 81 | 83 | 355 | 475 | 481 | |||||||||||||||||||||||||||||||
| Consumer | 10 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Total potential problem loans | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | $ | 34,037 | $ | 64,375 | $ | 84,175 | $ | 91,765 | |||||||||||||||||||||||
| POTENTIAL PROBLEM LOANS BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 32,970 | $ | 23,597 | $ | 23,231 | $ | 26,713 | $ | 24,950 | $ | 23,895 | $ | 23,887 | $ | 29,208 | |||||||||||||||||||||||
| Texas banking | 4,165 | 4,086 | 9,180 | 9,541 | 6,283 | 38,586 | 57,044 | 58,361 | |||||||||||||||||||||||||||||||
| Kansas banking | 2,020 | 2,124 | 2,563 | 2,716 | 2,804 | 1,894 | 3,244 | 4,196 | |||||||||||||||||||||||||||||||
| Total potential problem loans | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | $ | 34,037 | $ | 64,375 | $ | 84,175 | $ | 91,765 | |||||||||||||||||||||||
| ALLOWANCE ACTIVITY | |||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 26,593 | $ | 26,219 | $ | 27,250 | $ | 28,452 | $ | 30,917 | $ | 33,083 | $ | 34,925 | $ | 36,663 | |||||||||||||||||||||||
| Charge offs | 569 | 226 | 325 | 230 | 377 | 1,156 | 1,991 | 3,392 | |||||||||||||||||||||||||||||||
| Recoveries | 648 | 577 | 430 | 915 | 298 | 1,887 | 504 | 2,640 | |||||||||||||||||||||||||||||||
| Net charge offs (recoveries) | (79 | ) | (351 | ) | (105 | ) | (685 | ) | 79 | (731 | ) | 1,487 | 752 | ||||||||||||||||||||||||||
| Provision (credit) for loan losses | (566 | ) | 23 | (1,136 | ) | (1,887 | ) | (2,386 | ) | (2,897 | ) | (355 | ) | (986 | ) | ||||||||||||||||||||||||
| Balance, end of period | $ | 26,106 | $ | 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 | 219 | 24 | 82 | (118 | ) | (34 | ) | (640 | ) | 583 | (2,243 | ) | |||||||||||||||||||||||||||
| Commercial | (286 | ) | (325 | ) | (52 | ) | (188 | ) | (45 | ) | 22 | 652 | 2,267 | ||||||||||||||||||||||||||
| One-to-four family residential | (48 | ) | (68 | ) | (91 | ) | (331 | ) | 84 | 11 | (2 | ) | (18 | ) | |||||||||||||||||||||||||
| Consumer | 36 | 34 | (29 | ) | (53 | ) | 74 | (124 | ) | 254 | 91 | ||||||||||||||||||||||||||||
| Total net charge offs (recoveries) by type | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | $ | 79 | $ | (731 | ) | $ | 1,487 | $ | 752 | ||||||||||||||||||
| NET CHARGE OFFS BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 288 | $ | (86 | ) | $ | 25 | $ | (309 | ) | $ | 248 | $ | 67 | $ | 763 | $ | 229 | |||||||||||||||||||||
| Texas banking | (415 | ) | (103 | ) | (72 | ) | (114 | ) | (36 | ) | (611 | ) | 244 | (1,586 | ) | ||||||||||||||||||||||||
| Kansas banking | 48 | (162 | ) | (58 | ) | (262 | ) | (133 | ) | (187 | ) | 480 | 2,109 | ||||||||||||||||||||||||||
| Total net charge offs (recoveries) by segment | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | $ | 79 | $ | (731 | ) | $ | 1,487 | $ | 752 | ||||||||||||||||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | |||||||||||||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 7 | ||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | |||||||||||||||||||||||
| (Dollars in thousands, except per share) | |||||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||
| Basic earnings per common share | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.24 | $ | 0.30 | $ | 0.27 | $ | 0.31 | $ | 0.19 | |||||||
| Diluted earnings per common share | 0.23 | 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 | 0.06 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||
| Book value per common share | 14.80 | 14.57 | 14.38 | 14.26 | 14.11 | 13.90 | 13.71 | 13.37 | |||||||||||||||
| Tangible book value per share* | 13.98 | 14.49 | 14.29 | 14.17 | 14.02 | 13.80 | 13.61 | 13.21 | |||||||||||||||
| COMMON STOCK | |||||||||||||||||||||||
| Shares issued | 21,138,028 | 19,901,336 | 19,900,855 | 19,900,350 | 19,810,877 | 19,793,623 | 19,793,123 | 19,786,206 | |||||||||||||||
| Less treasury shares | 1,131,226 | 868,617 | 867,310 | 867,310 | 617,818 | 223,005 | - | - | |||||||||||||||
| Outstanding shares | 20,006,802 | 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 | $ | 412,128 | $ | 388,543 | $ | 373,260 | $ | 377,545 | $ | 365,593 | $ | 370,607 | $ | 385,873 | $ | 386,987 | |||||||
| Loans held for sale | 7,453 | 7,024 | 6,687 | 9,106 | 1,485 | 4,368 | 6,803 | 5,741 | |||||||||||||||
| Portfolio loans | 1,771,976 | 1,541,070 | 1,442,743 | 1,429,139 | 1,398,506 | 1,363,020 | 1,344,897 | 1,314,381 | |||||||||||||||
| Total loans | 1,779,429 | 1,548,094 | 1,449,430 | 1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||||||||
| Total assets | 2,357,022 | 2,059,899 | 2,031,581 | 2,003,079 | 1,942,034 | 1,900,948 | 1,885,158 | 2,012,053 | |||||||||||||||
| Total deposits | 1,884,105 | 1,626,250 | 1,624,446 | 1,616,454 | 1,533,999 | 1,494,946 | 1,463,855 | 1,605,906 | |||||||||||||||
| Other borrowings | 110,927 | 96,801 | 75,839 | 58,578 | 79,380 | 75,884 | 90,760 | 85,692 | |||||||||||||||
| Subordinated debentures | 51,548 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||||||||
| Total shareholders' equity | 296,098 | 277,344 | 273,681 | 271,444 | 270,786 | 271,966 | 271,351 | 264,586 | |||||||||||||||
| Mortgage servicing portfolio | 432,318 | 422,845 | 415,961 | 407,903 | 410,315 | 401,756 | 397,339 | 391,303 | |||||||||||||||
| INTANGIBLE ASSET DATA | |||||||||||||||||||||||
| Goodwill | $ | 13,467 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | $ | 1,214 | |||||||
| Core deposit intangible | 2,894 | 342 | 405 | 467 | 530 | 597 | 667 | 1,925 | |||||||||||||||
| Mortgage servicing rights | 3,721 | 3,631 | 3,518 | 3,399 | 3,397 | 3,269 | 3,182 | 3,006 | |||||||||||||||
| Total intangible assets | $ | 20,082 | $ | 5,187 | $ | 5,137 | $ | 5,080 | $ | 5,141 | $ | 5,080 | $ | 5,063 | $ | 6,145 | |||||||
| Intangible amortization expense | $ | 330 | $ | 243 | $ | 243 | $ | 168 | $ | 193 | $ | 195 | $ | 210 | $ | 183 | |||||||
| DEPOSIT COMPOSITION | |||||||||||||||||||||||
| Non-interest bearing demand | $ | 596,494 | $ | 526,159 | $ | 515,156 | $ | 506,952 | $ | 496,128 | $ | 445,148 | $ | 427,431 | $ | 471,568 | |||||||
| Interest-bearing demand | 151,015 | 114,877 | 131,547 | 140,659 | 122,342 | 104,807 | 124,712 | 132,622 | |||||||||||||||
| Money market accounts | 534,357 | 502,028 | 496,178 | 488,569 | 461,679 | 477,614 | 430,296 | 440,875 | |||||||||||||||
| Savings accounts | 56,333 | 36,163 | 35,647 | 34,413 | 32,795 | 33,398 | 31,187 | 47,532 | |||||||||||||||
| Time deposits of $100,000 or more | 311,538 | 238,318 | 233,105 | 227,426 | 198,952 | 203,090 | 209,059 | 236,035 | |||||||||||||||
| Other time deposits | 234,368 | 208,705 | 212,813 | 218,435 | 222,103 | 230,889 | 241,170 | 277,274 | |||||||||||||||
| Total deposits** | $ | 1,884,105 | $ | 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 | 412 | 358 | 361 | 360 | 359 | 351 | 364 | 397 | |||||||||||||||
| Branches | 32 | 23 | 23 | 22 | 21 | 21 | 21 | 24 | |||||||||||||||
| Assets per employee | $ | 5,721 | $ | 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 | $ | 1,884,105 | $ | 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 | 39,797 | 10,086 | 7,683 | 7,694 | 3,373 | 2,952 | 1,348 | 1,347 | |||||||||||||||
| Other brokered deposits | 135,880 | 133,025 | 103,025 | 83,025 | 73,425 | 98,425 | 48,424 | 3,424 | |||||||||||||||
| Non-brokered deposits | $ | 1,708,428 | $ | 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 | 37,273 | 50,801 | 50,839 | 33,578 | 54,380 | 50,884 | 65,760 | 60,692 | |||||||||||||||
| Core funding | $ | 1,745,701 | $ | 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 | ||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||||||||||||
| Return on average assets (annualized) | 0.78 | % | 0.81 | % | 0.85 | % | 0.92 | % | 1.22 | % | 1.12 | % | 1.27 | % | 0.75 | % | |||||||||||||||||||||||
| Return on average common equity (annualized) | 6.14 | 5.94 | 6.11 | 6.78 | 8.62 | 7.69 | 9.19 | 5.68 | |||||||||||||||||||||||||||||||
| Return on average tangible common equity | |||||||||||||||||||||||||||||||||||||||
| (annualized)* | 6.46 | 5.97 | 6.14 | 6.82 | 8.67 | 7.74 | 9.30 | 5.75 | |||||||||||||||||||||||||||||||
| Net interest margin (annualized) | 3.48 | 3.34 | 3.31 | 3.25 | 3.52 | 3.44 | 3.50 | 3.33 | |||||||||||||||||||||||||||||||
| Total dividends declared to net income | 26.22 | 27.53 | 27.45 | 25.19 | 12.93 | 14.88 | 12.86 | 21.40 | |||||||||||||||||||||||||||||||
| Effective tax rate | 35.96 | 35.84 | 34.51 | 37.49 | 37.50 | 37.49 | 37.50 | 37.49 | |||||||||||||||||||||||||||||||
| Efficiency ratio | 71.49 | 68.25 | 72.43 | 70.47 | 68.90 | 71.39 | 74.25 | 73.61 | |||||||||||||||||||||||||||||||
| NONPERFORMING ASSETS | |||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 19,858 | $ | 15,076 | $ | 8,887 | $ | 9,151 | $ | 9,276 | $ | 15,059 | $ | 16,478 | $ | 16,085 | |||||||||||||||||||||||
| 90 days past due and accruing | 500 | 1 | - | - | 137 | - | - | - | |||||||||||||||||||||||||||||||
| Total nonperforming loans | 20,358 | 15,077 | 8,887 | 9,151 | 9,413 | 15,059 | 16,478 | 16,085 | |||||||||||||||||||||||||||||||
| Other real estate | 2,274 | 2,274 | 2,393 | 2,255 | 3,097 | 3,448 | 4,285 | 4,654 | |||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 22,632 | $ | 17,351 | $ | 11,280 | $ | 11,406 | $ | 12,510 | $ | 18,507 | $ | 20,763 | $ | 20,739 | |||||||||||||||||||||||
| Potential problem loans | $ | 39,155 | $ | 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 | 1.28 | % | 1.12 | % | 0.78 | % | 0.80 | % | 0.89 | % | 1.36 | % | 1.54 | % | 1.57 | % | |||||||||||||||||||||||
| Nonperforming loans to portfolio loans | 1.15 | 0.98 | 0.62 | 0.64 | 0.67 | 1.10 | 1.23 | 1.22 | |||||||||||||||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.47 | 1.73 | 1.82 | 1.91 | 2.03 | 2.27 | 2.46 | 2.66 | |||||||||||||||||||||||||||||||
| Allowance for loan losses to | |||||||||||||||||||||||||||||||||||||||
| nonperforming loans | 128.49 | 176.38 | 295.03 | 297.78 | 302.26 | 205.29 | 200.77 | 217.13 | |||||||||||||||||||||||||||||||
| Net loan charge-offs to average portfolio | |||||||||||||||||||||||||||||||||||||||
| loans (annualized) | (0.02 | ) | (0.09 | ) | (0.03 | ) | (0.20 | ) | 0.02 | (0.21 | ) | 0.45 | 0.24 | ||||||||||||||||||||||||||
| CAPITAL RATIOS | |||||||||||||||||||||||||||||||||||||||
| Average total shareholders' equity to | |||||||||||||||||||||||||||||||||||||||
| average assets | 12.77 | % | 13.59 | % | 13.87 | % | 13.59 | % | 14.19 | % | 14.61 | % | 13.77 | % | 13.18 | % | |||||||||||||||||||||||
| Leverage ratio | 14.19 | 15.84 | 16.12 | 15.75 | 16.45 | 16.86 | 15.95 | 15.09 | |||||||||||||||||||||||||||||||
| Common equity tier 1 capital | 13.21 | 14.57 | 15.30 | 15.51 | n/a | n/a | n/a | n/a | |||||||||||||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 15.30 | 16.95 | 17.84 | 18.10 | 19.70 | 20.05 | 20.13 | 19.98 | |||||||||||||||||||||||||||||||
| Total capital to risk-weighted assets | 16.55 | 18.21 | 19.09 | 19.36 | 20.96 | 21.34 | 21.43 | 21.29 | |||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets*** | 11.95 | 13.40 | 13.40 | 13.48 | 13.87 | 14.23 | 14.31 | 13.01 | |||||||||||||||||||||||||||||||
| REGULATORY CAPITAL DATA | |||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital | $ | 282,737 | $ | 275,350 | $ | 272,048 | $ | 269,007 | $ | n/a | $ | n/a | $ | n/a | $ | n/a | |||||||||||||||||||||||
| Tier I capital | 327,468 | 320,350 | 317,048 | 314,007 | 314,216 | 314,120 | 309,600 | 299,938 | |||||||||||||||||||||||||||||||
| Total capital | 354,300 | 344,095 | 339,412 | 335,734 | 334,348 | 334,456 | 329,586 | 319,516 | |||||||||||||||||||||||||||||||
| Total risk adjusted assets | 2,140,344 | 1,889,892 | 1,777,618 | 1,734,401 | 1,595,032 | 1,566,996 | 1,537,903 | 1,500,957 | |||||||||||||||||||||||||||||||
| Average total assets | 2,307,421 | 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 | $ | 296,098 | $ | 277,344 | $ | 273,681 | $ | 271,444 | $ | 270,786 | $ | 271,966 | $ | 271,351 | $ | 264,586 | |||||||||||||||||||||||
| Less goodwill and core deposit intangible | 16,361 | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||||||||||||||||||
| Tangible common equity | $ | 279,737 | $ | 275,788 | $ | 272,062 | $ | 269,763 | $ | 269,042 | $ | 270,155 | $ | 269,470 | $ | 261,447 | |||||||||||||||||||||||
| Total assets | $ | 2,357,022 | $ | 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 | 16,361 | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||||||||||||||||||
| Tangible assets | $ | 2,340,661 | $ | 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 | 12.56 | % | 13.46 | % | 13.47 | % | 13.55 | % | 13.94 | % | 14.31 | % | 14.39 | % | 13.15 | % | |||||||||||||||||||||||
| Tangible common equity to tangible assets | 11.95 | % | 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. | |||||||||||||||||||||||||||||||||||||||