STILLWATER, Okla., Jan. 24, 2017 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the fourth quarter of 2016 of $6.2 million, or $0.33 per diluted share, compared to $4.6 million, or $0.23 per diluted share, for the fourth quarter of 2015, an earnings per share increase of 43.5% from the same quarter a year ago. Net income for the year ended December 31, 2016 totaled $17.7 million, or $0.92 per diluted share, compared to $17.4 million, or $0.90 per diluted share, for the year ended December 31, 2015.
Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable February 17, 2017 to shareholders of record as of February 3, 2017.
Mark Funke, President and CEO, stated, “The strong financial results for the quarter were driven primarily by improved credit quality and focused expense management. In mid-December, we were very pleased to announce the signing of a Definitive Agreement to merge with Simmons First National Corporation, which when completed, will add significant products and convenience for our customers. The merger is expected to be completed in the third quarter of 2017. Here are several highlights from this quarter:
- During the fourth quarter, nonperforming loans and assets were reduced by $9.7 million, or 36.3%, to end the year at $17.0 million.
- The improvement in credit quality combined with loan recoveries produced a $1.3 million release from our allowance for loan losses, resulting in a ratio of 1.47% when compared to total loans.
- Total loans at December 31, 2016 of $1.9 billion, while down slightly for the quarter, increased by $97.7 million, or 5.5% for the year.
- The quarterly net interest margin was 3.40% at December 31, 2016, compared to 3.42% at September 30, 2016 and 3.48% at December 31, 2015.
- Pre-tax, pre-provision income was $8.6 million in the fourth quarter, an increase of 2% from $8.4 million in the third quarter of 2016, and an increase of 33% from $6.4 million for the fourth quarter of 2015.
- The efficiency ratio for the fourth quarter of 2016 was 64.34%, compared to 66.09% for the third quarter of 2016 and 72.17% for the fourth quarter of 2015. Excluding the deal costs related to the pending merger, the efficiency ratio for the fourth quarter was 60.46%.”
See Table 3 for details on pre-tax, pre-provision income, which is a non-GAAP financial measure.
Financial Overview
Condition: As of December 31, 2016, total assets were $2.5 billion, an increase of $7.4 million, when compared to September 30, 2016. As of December 31, 2016, total loans were $1.9 billion, a decrease of $3.0 million from the prior quarter end. As of December 31, 2016, investment securities were $436.7 million, an increase of $8.7 million from the prior quarter end. Cash and cash equivalents at December 31, 2016 were $75.7 million, an increase of $5.6 million from September 30, 2016.
At December 31, 2016, the allowance for loan losses was $27.5 million, a decrease of $1.0 million when compared to September 30, 2016 and an increase of $1.4 million when compared to December 31, 2015. The allowance for loan losses to portfolio loans was 1.47% as of December 31, 2016, compared to 1.52% as of September 30, 2016, and 1.47% as of December 31, 2015. The allowance for loan losses to nonperforming loans was 165.84% as of December 31, 2016, compared to 116.02% as of September 30, 2016 and 128.23% as of December 31, 2015. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.71% of gross loans as of December 31, 2016.
Nonperforming loans were $16.6 million at December 31, 2016, a decrease of $7.9 million from September 30, 2016, and a decrease of $3.7 million from December 31, 2015. Other real estate was $0.4 million at December 31, 2016 compared to $2.1 million at September 30, 2016, and $2.3 million at December 31, 2015. Nonperforming assets were $17.0 million, or 0.91% of portfolio loans and other real estate, as of December 31, 2016, compared to $26.6 million, or 1.42% of portfolio loans and other real estate, as of September 30, 2016, and $22.6 million, or 1.28% of portfolio loans and other real estate, as of December 31, 2015.
As of December 31, 2016, total deposits were $1.9 billion, a decrease of $1.9 million, when compared to September 30, 2016. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 81% of total funding as of December 31, 2016 and September 30, 2016. Wholesale funding, including Federal Home Loan Bank borrowings and brokered deposits, accounted for 19% of total funding at December 31, 2016 and September 30, 2016. 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, 2016 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $345.6 million, for a total risk-based capital ratio of 15.66%, Common Equity Tier 1 capital was $272.9 million, for a Common Equity Tier 1 ratio of 12.36%, and Tier 1 capital was $317.9 million, for a Tier 1 risk-based capital ratio of 14.40%. Bank SNB had total regulatory capital of $328.7 million, for a total risk-based capital ratio of 14.92% and Common Equity Tier 1 and Tier 1 capital of $301.0 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.66%. 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 2016, net income was $6.2 million, compared to $4.3 million for the third quarter of 2016 and $4.6 million for the fourth quarter of 2015. Pre-tax, pre-provision income for the fourth quarter of 2016 was $8.6 million, compared to $8.4 million for the third quarter of 2016 and $6.4 million for the fourth quarter of 2015. The fourth quarter of 2016 includes $0.9 million of merger related costs. Certain variances in income and expenses in the fourth quarter compared to the prior year are due in part to the First Commercial Bancshares, Inc., acquisition that occurred in the fourth quarter of 2015.
The $1.9 million increase in net income compared to the third quarter of 2016 was primarily due to the $1.3 million credit provision for loan losses recorded in the fourth quarter, a $3.0 million decrease from the $1.7 million expense in the third quarter of 2016. The increase in net income also includes a $0.3 million increase in net interest income and a $0.3 million decrease in noninterest expense, offset in part by $0.3 million decrease in noninterest income and a $1.4 million increase in income taxes.
The $1.6 million increase in net income compared to the fourth quarter of 2015 was due to a $0.6 million increase in net interest income, a $0.8 million increase in the credit provision for loan losses, and a $1.3 million decrease in noninterest expense, offset in part by a $1.1 million increase in income taxes.
Net Interest Income: Net interest income totaled $20.1 million for the fourth quarter of 2016, compared to $19.8 million for the third quarter of 2016 and $19.5 million for the fourth quarter of 2015. Net interest margin was 3.40% for the fourth quarter of 2016, compared to 3.42% for the third quarter of 2016 and 3.48% for the fourth quarter of 2015. Interest income for the fourth quarter of 2016, the third quarter of 2016, and the fourth quarter of 2015 includes $0.1 million, $0.5 million and $0.3 million of accelerated discount accretion, respectively. The net effects of these adjustments on the net interest margins were a 2 basis point, a 10 basis point and a 5 basis point increase, respectively, for each quarter. Average loans (including loans held for sale) for the fourth quarter of 2016 increased $34.5 million when compared to September 30, 2016, and $122.8 million when compared to December 31, 2015. Loans pursuant to the acquisition in the fourth quarter of 2015 were $202.4 million.
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 net effects of charge-offs and recoveries for the period. The provision for loan losses was a credit provision of $1.3 million for the fourth quarter of 2016, compared to a provision of $1.7 million for the third quarter of 2016, and a credit provision of $0.6 million for the fourth quarter of 2015. The fourth quarter 2016 credit provision was driven primarily by a $2.1 million recovery on the sale of certain nonperforming loans and partially offset by a $0.8 million provision. During the fourth quarter of 2016, net recoveries totaled $0.4 million, or (0.09)% (annualized) of average portfolio loans, compared to net charge-offs of $0.1 million, or 0.03% (annualized) of average portfolio loans for the third quarter of 2016 and net recoveries of $0.1 million, or (0.02%) (annualized) of average portfolio loans for the fourth quarter of 2015. The 2016 fourth quarter recovery on the sale of certain nonperforming loans was substantially offset by a $2.0 million charge-off on a nonperforming loan with a specific reserve.
Noninterest Income: Noninterest income totaled $4.2 million for the fourth quarter of 2016, compared to $4.6 million for the third quarter of 2016 and $4.2 million for the fourth quarter of 2015.
The $0.3 million decrease from the third quarter of 2016 is the result of a $0.4 million decrease in other noninterest income, which is primarily from a reduced level of customer risk management interest rate swap income, offset in part by a $0.1 million increase in service charges and fees. The third quarter of 2016 service charges and fees includes a $0.1 million impairment on mortgage servicing rights and other noninterest income includes a $0.1 million loss on the disposition of fixed assets related to branch closures.
During the fourth quarter of 2016, there was a $0.1 million increase in service charges and fees and a $0.1 million increase in the gain on sales of mortgage loans, offset by a $0.2 million decrease in other noninterest income, which resulted in no change compared to the fourth quarter of 2015.
Noninterest Expense: Noninterest expense totaled $15.8 million for the fourth quarter of 2016, compared to $16.2 million for the third quarter of 2016 and $17.1 million for the fourth quarter of 2015. Excluding the deal costs related to the pending merger, the 2016 fourth quarter noninterest expense totaled $14.9 million. The initiatives taken in the third quarter of 2016 to close three branches, reduce leased space, and to improve operational efficiencies resulted in an expense reduction of approximately $0.7 million in the fourth quarter.
The $0.4 million decrease in noninterest expense from the third quarter of 2016 was due to a $0.8 million decrease in personnel expense, a $0.5 million decrease in occupancy, a $0.2 million decrease in data processing, a $0.1 million decrease in FDIC and other insurance expense, and a $0.1 million decrease in the provision for unfunded loan commitments, offset in part by a $0.2 million decrease in other real estate net gains on the sales of properties during the third quarter, and a $1.1 million increase in general and administrative expenses primarily due to the $0.9 million legal and consulting fees associated with the recently announced definitive agreement.
The $1.3 million decrease in noninterest expense from the fourth quarter of 2015 consisted of a $1.3 million decrease in personnel expense, a $0.4 million decrease in data processing and a $0.1 million decrease in FDIC and other insurance expense, offset in part by a $0.2 million increase in the provision for unfunded loan commitments and a $0.4 million increase in general and administrative expense, primarily due to the legal and consulting fees associated with the recently announced definitive agreement.
Income Tax: Income tax expense totaled $3.7 million for the fourth quarter of 2016, compared to $2.2 million for the third quarter of 2016 and $2.6 million for the fourth quarter of 2015. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2016 effective tax rate was 37.38%, compared to 34.45% for the third quarter of 2016 and 35.96% for the fourth quarter of 2015. The increase in the effective tax rate includes the impact of a decrease in tax exempt income as a percentage of pre-tax income, the higher level of pre-tax earnings, and the impact of certain nondeductible merger costs.
Year-to-Date Results:
Summary: Net income was $17.7 million for the year ended December 31, 2016, compared to $17.4 million for the year ended December 31, 2015. The $0.3 million increase in net income from 2015 is the result of a $12.0 million increase in net interest income and a $1.6 million increase in noninterest income, offset in part by an $8.3 million increase in the provision for loan losses and a $5.0 million increase in noninterest expense due to increased personnel, occupancy, and general and administrative expenses. The increases in net interest income, noninterest income, and noninterest expense are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015. Net income for the year ended December 31, 2016, was also reduced by the restructuring charges of $0.4 million, which incurred in the third quarter of 2016, and by $0.9 million of legal and consulting fees associated with the recently announced definitive agreement, which occurred in the fourth quarter of 2016.
Net Interest Income: Net interest income totaled $79.4 million for 2016, compared to $67.4 million for 2015, an increase of $12.0 million. Year-to-date net interest margin was 3.46%, compared to 3.35% for 2015. Interest income for 2016 and for 2015 includes $1.1 million and $0.6 million, respectively, of accelerated discount accretion. The net effects of these adjustments on the net interest margin was a 5 basis point and a 3 basis point increase, respectively. Average loans (including loans held for sale) for 2016 were $1.8 billion compared to $1.5 billion in 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.
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 net effects of charge-offs and recoveries for the period. The provision for loan losses was $4.8 million for 2016, compared to a credit provision of $3.6 million for 2015. The provision for loan losses for 2016 was driven by the growth in the loan portfolio and the impact of low energy prices combined with deterioration in a few general business credits that occurred primarily in the first quarter of 2016. Net charge-offs totaled $3.3 million, or 0.18% (annualized) of average portfolio loans year-to-date as of 2016, compared to net recoveries of $1.2 million, or (0.08%) (annualized) of average portfolio loans for 2015.
Noninterest Income: Noninterest income totaled $16.1 million for 2016, compared to $14.5 million for 2015, an increase of $1.6 million. The increase consists of a $0.6 million increase in service charges and fees, which includes a $0.6 million impairment of mortgage servicing rights, a $0.5 million increase in gains on sales of mortgage loans, a $0.1 million increase in the gain on sale of investment securities, and a $0.4 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income.
Noninterest Expense: Noninterest expense totaled $63.2 million for 2016, compared to $58.2 million for 2015. The increase consists of a $2.9 million increase in personnel expense, a $1.7 million increase in occupancy, a $0.4 million increase in the provision for unfunded loan commitments, and a $0.7 million increase in general and administrative expense, offset in part by a $0.3 million decrease in data processing and a $0.4 million decrease in other real estate expense.
Income Tax: Income tax expense totaled $9.8 million for 2016, compared to $9.8 million for 2015. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 35.65% as of December 31, 2016, compared to 36.00% as of December 31, 2015.
Pending Merger:
On December 14, 2016, Southwest and Simmons First National Corporation (“Simmons”) issued a joint press release announcing that we have entered into a Definitive Agreement and plan of merger. Simmons will acquire all of the outstanding stock of Southwest in a transaction valued at approximately $564.4 million, as of the date of the announcement. Southwest’s President and CEO, Mark Funke, will be the President of the new Southwest Division of Simmons Bank and will be responsible for the banking operations in Oklahoma, Texas, Colorado and Kansas. The transaction is subject to shareholder approval and customary regulatory approvals.
Conference Call
Southwest will host a conference call to review these results on Wednesday, January 25, 2017 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/100987341. 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/oksb170125.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 10098734. Telephone replay access will be available until February 25, 2017.
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 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, 2016, Southwest had total assets of approximately $2.5 billion, deposits of $1.9 billion, and shareholders’ equity of $286.6 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, 2016, approximately $423.8 million, or 23%, 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 or negative provisions, 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, 2015. 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, 2016 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2016 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
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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-YTD | 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 | 2016 | % Change | 2015 | % Change | ||||||||||||||
| Operations | ||||||||||||||||||
| Net interest income | $ | 20,103 | $ | 19,805 | 2 | % | $ | 19,520 | 3 | % | ||||||||
| Provision (credit) for loan losses | (1,329 | ) | 1,713 | (178 | ) | (566 | ) | 135 | ||||||||||
| Noninterest income | 4,244 | 4,555 | (7 | ) | 4,179 | 2 | ||||||||||||
| Noninterest expense | 15,826 | 16,156 | (2 | ) | 17,099 | (7 | ) | |||||||||||
| Income before taxes | 9,850 | 6,491 | 52 | 7,166 | 37 | |||||||||||||
| Taxes on income | 3,682 | 2,236 | 65 | 2,577 | 43 | |||||||||||||
| Net income | 6,168 | 4,255 | 45 | 4,589 | 34 | |||||||||||||
| Diluted earnings per share | 0.33 | 0.23 | 42 | 0.23 | 42 | |||||||||||||
| Balance Sheet | ||||||||||||||||||
| Total assets | 2,475,392 | 2,468,042 | 0 | 2,357,022 | 5 | |||||||||||||
| Loans held for sale | 4,386 | 7,899 | (44 | ) | 7,453 | (41 | ) | |||||||||||
| Portfolio loans | 1,872,746 | 1,872,213 | 0 | 1,771,976 | 6 | |||||||||||||
| Total deposits | 1,946,018 | 1,947,924 | (0 | ) | 1,884,105 | 3 | ||||||||||||
| Total shareholders' equity | 286,629 | 283,820 | 1 | 296,098 | (3 | ) | ||||||||||||
| Book value per common share | 15.35 | 15.19 | 1 | 14.80 | 4 | |||||||||||||
| Key Ratios | ||||||||||||||||||
| Net interest margin | 3.40 | % | 3.42 | % | 3.48 | % | ||||||||||||
| Efficiency ratio | 64.34 | 66.09 | 72.17 | |||||||||||||||
| Total capital to risk-weighted assets | 15.66 | 15.21 | 16.79 | |||||||||||||||
| Nonperforming loans to portfolio loans | 0.89 | 1.31 | 1.15 | |||||||||||||||
| Shareholders' equity to total assets | 11.58 | 11.50 | 12.56 | |||||||||||||||
| Tangible common equity to tangible assets* | 11.01 | 10.92 | 11.95 | |||||||||||||||
| Return on average assets (annualized) | 1.00 | 0.70 | 0.78 | |||||||||||||||
| Return on average common equity (annualized) | 8.59 | 5.97 | 6.14 | |||||||||||||||
| Return on average tangible common equity (annualized)** | 9.10 | 6.33 | 6.46 | |||||||||||||||
| Year | ||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2016 | 2015 | % Change | |||||||||||||||
| Operations | ||||||||||||||||||
| Net interest income | $ | 79,443 | $ | 67,417 | 18 | % | ||||||||||||
| Provision (credit) for loan losses | 4,769 | (3,566 | ) | 234 | ||||||||||||||
| Noninterest income | 16,085 | 14,457 | 11 | |||||||||||||||
| Noninterest expense | 63,246 | 58,240 | 9 | |||||||||||||||
| Income before taxes | 27,513 | 27,200 | 1 | |||||||||||||||
| Taxes on income | 9,809 | 9,793 | 0 | |||||||||||||||
| Net income | 17,704 | 17,407 | 2 | |||||||||||||||
| Diluted earnings per share | 0.92 | 0.90 | 3 | |||||||||||||||
| Balance Sheet | ||||||||||||||||||
| Total assets | 2,475,392 | 2,357,022 | 5 | |||||||||||||||
| Loans held for sale | 4,386 | 7,453 | (41 | ) | ||||||||||||||
| Portfolio loans | 1,872,746 | 1,771,976 | 6 | |||||||||||||||
| Total deposits | 1,946,018 | 1,884,105 | 3 | |||||||||||||||
| Total shareholders' equity | 286,629 | 296,098 | (3 | ) | ||||||||||||||
| Book value per common share | 15.35 | 14.80 | 4 | |||||||||||||||
| Key Ratios | ||||||||||||||||||
| Net interest margin | 3.46 | % | 3.35 | % | ||||||||||||||
| Efficiency ratio | 65.88 | 70.98 | ||||||||||||||||
| Total capital to risk-weighted assets | 15.66 | 16.79 | ||||||||||||||||
| Nonperforming loans to portfolio loans | 0.89 | 1.15 | ||||||||||||||||
| Shareholders' equity to total assets | 11.58 | 12.56 | ||||||||||||||||
| Tangible common equity to tangible assets* | 11.01 | 11.95 | ||||||||||||||||
| Return on average assets (annualized) | 0.74 | 0.84 | ||||||||||||||||
| Return on average common equity (annualized) | 6.18 | 6.23 | ||||||||||||||||
| Return on average tangible common equity (annualized)** | 6.55 | 6.35 | ||||||||||||||||
| 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, | |||||||
| 2016 | 2015 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 36,831 | $ | 24,971 | ||||
| Interest-bearing deposits | 38,819 | 53,158 | ||||||
| Cash and cash equivalents | 75,650 | 78,129 | ||||||
| Securities held to maturity (fair values of $10,677 and $12,282, respectively) | 10,443 | 11,797 | ||||||
| Securities available for sale (amortized cost of $427,113 and $401,136, respectively) | 426,218 | 400,331 | ||||||
| Loans held for sale | 4,386 | 7,453 | ||||||
| Loans receivable | 1,872,746 | 1,771,975 | ||||||
| Less: Allowance for loan losses | (27,546 | ) | (26,106 | ) | ||||
| Net loans receivable | 1,845,200 | 1,745,869 | ||||||
| Accrued interest receivable | 6,194 | 5,767 | ||||||
| Non-hedge derivative asset | 1,235 | 1,793 | ||||||
| Premises and equipment, net | 22,808 | 23,819 | ||||||
| Other real estate | 350 | 2,274 | ||||||
| Goodwill | 13,545 | 13,467 | ||||||
| Other intangible assets, net | 5,790 | 6,615 | ||||||
| Other assets | 63,573 | 59,708 | ||||||
| Total assets | $ | 2,475,392 | $ | 2,357,022 | ||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 551,709 | $ | 596,494 | ||||
| Interest-bearing demand | 152,656 | 151,015 | ||||||
| Money market accounts | 567,058 | 534,357 | ||||||
| Savings accounts | 56,410 | 56,333 | ||||||
| Time deposits of $100,000 or more | 360,307 | 311,538 | ||||||
| Other time deposits | 257,878 | 234,368 | ||||||
| Total deposits | 1,946,018 | 1,884,105 | ||||||
| Accrued interest payable | 1,132 | 867 | ||||||
| Non-hedge derivative liability | 1,235 | 1,793 | ||||||
| Other liabilities | 10,171 | 11,684 | ||||||
| Other borrowings | 183,814 | 110,927 | ||||||
| Subordinated debentures | 46,393 | 51,548 | ||||||
| Total liabilities | 2,188,763 | 2,060,924 | ||||||
| Shareholders' equity | ||||||||
| Common stock - $1 par value; 40,000,000 shares authorized; | ||||||||
| 21,230,714 and 21,138,028 shares issued, respectively | 21,231 | 21,138 | ||||||
| Additional paid-in capital | 123,112 | 121,966 | ||||||
| Retained earnings | 184,840 | 173,210 | ||||||
| Accumulated other comprehensive loss | (907 | ) | (1,290 | ) | ||||
| Treasury stock, at cost, 2,555,987 and 1,131,226 shares, respectively | (41,647 | ) | (18,926 | ) | ||||
| Total shareholders' equity | 286,629 | 296,098 | ||||||
| Total liabilities and shareholders' equity | $ | 2,475,392 | $ | 2,357,022 | ||||
| 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, | |||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans | $ | 20,925 | $ | 20,541 | $ | 19,725 | $ | 81,527 | $ | 67,644 | ||||||||||
| Investment securities | 1,761 | 1,719 | 1,813 | 7,407 | 6,559 | |||||||||||||||
| Other interest-earning assets | 52 | 50 | 46 | 206 | 280 | |||||||||||||||
| Total interest income | 22,738 | 22,310 | 21,584 | 89,140 | 74,483 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Interest-bearing deposits | 1,691 | 1,542 | 1,196 | 5,968 | 3,798 | |||||||||||||||
| Other borrowings | 354 | 374 | 261 | 1,379 | 984 | |||||||||||||||
| Subordinated debentures | 590 | 589 | 607 | 2,350 | 2,284 | |||||||||||||||
| Total interest expense | 2,635 | 2,505 | 2,064 | 9,697 | 7,066 | |||||||||||||||
| Net interest income | 20,103 | 19,805 | 19,520 | 79,443 | 67,417 | |||||||||||||||
| Provision (credit) for loan losses | (1,329 | ) | 1,713 | (566 | ) | 4,769 | (3,566 | ) | ||||||||||||
| Net interest income after provision (credit) for loan losses | 21,432 | 18,092 | 20,086 | 74,674 | 70,983 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges and fees | 2,772 | 2,681 | 2,676 | 10,558 | 9,995 | |||||||||||||||
| Gain on sales of mortgage loans | 774 | 775 | 645 | 2,672 | 2,179 | |||||||||||||||
| Gain on sale/call of investment securities, net | - | 3 | - | 294 | 162 | |||||||||||||||
| Other noninterest income | 698 | 1,096 | 858 | 2,561 | 2,121 | |||||||||||||||
| Total noninterest income | 4,244 | 4,555 | 4,179 | 16,085 | 14,457 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 9,001 | 9,794 | 10,273 | 37,724 | 34,850 | |||||||||||||||
| Occupancy | 2,616 | 3,103 | 2,586 | 11,059 | 9,359 | |||||||||||||||
| Data processing | 404 | 582 | 847 | 1,886 | 2,178 | |||||||||||||||
| FDIC and other insurance | 235 | 341 | 384 | 1,376 | 1,353 | |||||||||||||||
| Other real estate, net | (10 | ) | (233 | ) | 8 | (222 | ) | 161 | ||||||||||||
| Provision (credit) for unfunded loan commitments | 32 | 146 | (163 | ) | 130 | (255 | ) | |||||||||||||
| General and administrative | 3,548 | 2,423 | 3,164 | 11,293 | 10,594 | |||||||||||||||
| Total noninterest expense | 15,826 | 16,156 | 17,099 | 63,246 | 58,240 | |||||||||||||||
| Income before taxes | 9,850 | 6,491 | 7,166 | 27,513 | 27,200 | |||||||||||||||
| Taxes on income | 3,682 | 2,236 | 2,577 | 9,809 | 9,793 | |||||||||||||||
| Net income | $ | 6,168 | $ | 4,255 | $ | 4,589 | $ | 17,704 | $ | 17,407 | ||||||||||
| Pre-tax, pre-provision income* | $ | 8,553 | $ | 8,350 | $ | 6,437 | $ | 32,412 | $ | 23,379 | ||||||||||
| Basic earnings per common share | $ | 0.33 | $ | 0.23 | $ | 0.23 | $ | 0.93 | $ | 0.90 | ||||||||||
| Diluted earnings per common share | 0.33 | 0.23 | 0.23 | 0.92 | 0.90 | |||||||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.06 | 0.32 | 0.24 | |||||||||||||||
| *This is a Non-GAAP based financial measure. Pre-tax, pre-provision income is calculated as follows: | ||||||||||||||||||||
| Net Income + Taxes on income + Provision (credit) for loan losses + Provision (credit) for unfunded loan commitments | ||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | ||||||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||
| Average | Average | Average | Average | Average | Average | ||||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||||
| Assets | |||||||||||||||||||||
| Loans | $ | 1,867,210 | 4.46 | % | $ | 1,832,750 | 4.46 | % | $ | 1,744,375 | 4.49 | % | |||||||||
| Investment securities | 432,053 | 1.62 | 425,276 | 1.61 | 413,701 | 1.74 | |||||||||||||||
| Other interest-earning assets | 50,564 | 0.41 | 48,759 | 0.41 | 64,562 | 0.28 | |||||||||||||||
| Total interest-earning assets | 2,349,827 | 3.85 | 2,306,785 | 3.85 | 2,222,638 | 3.85 | |||||||||||||||
| Other assets | 106,961 | 107,140 | 101,002 | ||||||||||||||||||
| Total assets | $ | 2,456,788 | $ | 2,413,925 | $ | 2,323,640 | |||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||
| Interest-bearing demand deposits | $ | 146,708 | 0.16 | % | $ | 152,134 | 0.15 | % | $ | 137,153 | 0.15 | % | |||||||||
| Money market accounts | 572,984 | 0.26 | 545,040 | 0.26 | 541,976 | 0.19 | |||||||||||||||
| Savings accounts | 55,761 | 0.13 | 54,073 | 0.14 | 53,604 | 0.13 | |||||||||||||||
| Time deposits | 625,288 | 0.79 | 603,201 | 0.73 | 548,145 | 0.63 | |||||||||||||||
| Total interest-bearing deposits | 1,400,741 | 0.48 | 1,354,448 | 0.45 | 1,280,878 | 0.37 | |||||||||||||||
| Other borrowings | 151,004 | 0.93 | 163,495 | 0.91 | 80,343 | 1.29 | |||||||||||||||
| Subordinated debentures | 46,393 | 5.09 | 46,393 | 5.08 | 51,044 | 4.76 | |||||||||||||||
| Total interest-bearing liabilities | 1,598,138 | 0.66 | 1,564,336 | 0.64 | 1,412,265 | 0.58 | |||||||||||||||
| Noninterest-bearing demand deposits | 557,994 | 549,077 | 594,537 | ||||||||||||||||||
| Other liabilities | 15,157 | 16,937 | 20,149 | ||||||||||||||||||
| Shareholders' equity | 285,499 | 283,575 | 296,689 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,456,788 | $ | 2,413,925 | $ | 2,323,640 | |||||||||||||||
| Net interest income and spread | 3.19 | % | 3.21 | % | 3.27 | % | |||||||||||||||
| Net interest margin (1) | 3.40 | % | 3.42 | % | 3.48 | % | |||||||||||||||
| Average interest-earning assets | |||||||||||||||||||||
| to average interest-bearing liabilities | 147.04 | % | 147.46 | % | 157.38 | % | |||||||||||||||
| (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, | ||||||||||||||
| 2016 | 2015 | |||||||||||||
| Average | Average | Average | Average | |||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||
| Assets | ||||||||||||||
| Loans | $ | 1,822,288 | 4.47 | % | $ | 1,519,730 | 4.45 | % | ||||||
| Investment securities | 424,501 | 1.74 | 384,745 | 1.70 | ||||||||||
| Other interest-earning assets | 49,938 | 0.41 | 106,586 | 0.26 | ||||||||||
| Total interest-earning assets | 2,296,727 | 3.88 | 2,011,061 | 3.70 | ||||||||||
| Other assets | 106,180 | 68,681 | ||||||||||||
| Total assets | $ | 2,402,907 | $ | 2,079,742 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Interest-bearing demand deposits | $ | 156,086 | 0.16 | % | $ | 134,381 | 0.11 | % | ||||||
| Money market accounts | 549,691 | 0.25 | 499,788 | 0.17 | ||||||||||
| Savings accounts | 55,118 | 0.13 | 39,456 | 0.11 | ||||||||||
| Time deposits | 595,536 | 0.72 | 469,547 | 0.59 | ||||||||||
| Total interest-bearing deposits | 1,356,431 | 0.44 | 1,143,172 | 0.33 | ||||||||||
| Other borrowings | 143,399 | 0.96 | 72,538 | 1.36 | ||||||||||
| Subordinated debentures | 46,928 | 5.01 | 47,565 | 4.80 | ||||||||||
| Total interest-bearing liabilities | 1,546,758 | 0.63 | 1,263,275 | 0.56 | ||||||||||
| Noninterest-bearing demand deposits | 554,509 | 524,025 | ||||||||||||
| Other liabilities | 15,120 | 13,217 | ||||||||||||
| Shareholders' equity | 286,520 | 279,225 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 2,402,907 | $ | 2,079,742 | ||||||||||
| Net interest income and spread | 3.25 | % | 3.14 | % | ||||||||||
| Net interest margin (1) | 3.46 | % | 3.35 | % | ||||||||||
| Average interest-earning assets | ||||||||||||||
| to average interest-bearing liabilities | 148.49 | % | 159.19 | % | ||||||||||
| (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) | ||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||||||||
| LOAN COMPOSITION | ||||||||||||||||||||||||||||||||
| Real estate mortgage: | ||||||||||||||||||||||||||||||||
| Commercial | $ | 882,071 | $ | 893,807 | $ | 862,287 | $ | 878,822 | $ | 938,462 | $ | 869,250 | $ | 759,406 | $ | 759,676 | ||||||||||||||||
| One-to-four family residential | 199,123 | 193,678 | 183,693 | 158,078 | 161,958 | 95,906 | 85,338 | 86,343 | ||||||||||||||||||||||||
| Real estate construction: | ||||||||||||||||||||||||||||||||
| Commercial | 199,113 | 184,211 | 175,805 | 156,454 | 129,070 | 126,407 | 186,140 | 192,052 | ||||||||||||||||||||||||
| One-to-four family residential | 20,946 | 22,460 | 20,347 | 24,202 | 21,337 | 12,866 | 13,107 | 12,586 | ||||||||||||||||||||||||
| Commercial | 556,248 | 566,403 | 558,472 | 543,822 | 507,173 | 423,480 | 384,788 | 366,282 | ||||||||||||||||||||||||
| Installment and consumer | 19,631 | 19,553 | 20,773 | 20,506 | 21,429 | 20,185 | 20,651 | 21,306 | ||||||||||||||||||||||||
| Total loans, including held for sale | 1,877,132 | 1,880,112 | 1,821,377 | 1,781,884 | 1,779,429 | 1,548,094 | 1,449,430 | 1,438,245 | ||||||||||||||||||||||||
| Less allowance for loan losses | (27,546 | ) | (28,452 | ) | (26,876 | ) | (27,168 | ) | (26,106 | ) | (26,593 | ) | (26,219 | ) | (27,250 | ) | ||||||||||||||||
| Total loans, net | $ | 1,849,586 | $ | 1,851,660 | $ | 1,794,501 | $ | 1,754,716 | $ | 1,753,323 | $ | 1,521,501 | $ | 1,423,211 | $ | 1,410,995 | ||||||||||||||||
| LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 1,095,930 | $ | 1,117,716 | $ | 1,085,986 | $ | 1,060,482 | $ | 1,048,473 | $ | 832,282 | $ | 810,367 | $ | 814,949 | ||||||||||||||||
| Texas banking | 636,643 | 605,682 | 577,333 | 560,421 | 580,476 | 563,010 | 493,047 | 478,005 | ||||||||||||||||||||||||
| Kansas banking | 144,559 | 156,714 | 158,058 | 160,981 | 150,480 | 152,802 | 146,016 | 145,291 | ||||||||||||||||||||||||
| Total loans | $ | 1,877,132 | $ | 1,880,112 | $ | 1,821,377 | $ | 1,781,884 | $ | 1,779,429 | $ | 1,548,094 | $ | 1,449,430 | $ | 1,438,245 | ||||||||||||||||
| NONPERFORMING LOANS BY TYPE | ||||||||||||||||||||||||||||||||
| Construction & development | $ | 970 | $ | 1,073 | $ | 1,436 | $ | 1,444 | $ | 1,010 | $ | 391 | $ | 416 | $ | 392 | ||||||||||||||||
| Commercial real estate | 6,471 | 7,620 | 3,894 | 3,830 | 3,992 | 1,795 | 2,141 | 2,247 | ||||||||||||||||||||||||
| Commercial | 6,142 | 12,791 | 13,800 | 13,461 | 13,491 | 11,727 | 5,114 | 5,447 | ||||||||||||||||||||||||
| One-to-four family residential | 2,904 | 2,982 | 3,120 | 3,448 | 1,777 | 1,016 | 1,216 | 1,065 | ||||||||||||||||||||||||
| Consumer | 123 | 58 | 75 | 84 | 88 | 148 | - | - | ||||||||||||||||||||||||
| Total nonperforming loans | $ | 16,610 | $ | 24,524 | $ | 22,325 | $ | 22,267 | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | ||||||||||||||||
| NONPERFORMING LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 12,006 | $ | 12,275 | $ | 9,268 | $ | 7,978 | $ | 6,948 | $ | 2,846 | $ | 1,670 | $ | 2,244 | ||||||||||||||||
| Texas banking | 4,140 | 11,805 | 12,586 | 13,521 | 12,450 | 11,025 | 5,353 | 5,264 | ||||||||||||||||||||||||
| Kansas banking | 464 | 444 | 471 | 768 | 960 | 1,206 | 1,864 | 1,643 | ||||||||||||||||||||||||
| Total nonperforming loans | $ | 16,610 | $ | 24,524 | $ | 22,325 | $ | 22,267 | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | ||||||||||||||||
| OTHER REAL ESTATE BY TYPE | ||||||||||||||||||||||||||||||||
| Construction & development | $ | - | $ | 1,756 | $ | 1,962 | $ | 2,060 | $ | 2,060 | $ | 2,025 | $ | 2,035 | $ | 2,035 | ||||||||||||||||
| Commercial real estate | 350 | 350 | 160 | 214 | 214 | 249 | 358 | 220 | ||||||||||||||||||||||||
| Total other real estate | $ | 350 | $ | 2,106 | $ | 2,122 | $ | 2,274 | $ | 2,274 | $ | 2,274 | $ | 2,393 | $ | 2,255 | ||||||||||||||||
| OTHER REAL ESTATE BY SEGMENT | ||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | - | $ | - | $ | 220 | $ | 274 | $ | 274 | $ | 200 | $ | 200 | $ | - | ||||||||||||||||
| Texas banking | 350 | 2,106 | 1,902 | 2,000 | 2,000 | 2,025 | 2,000 | 2,000 | ||||||||||||||||||||||||
| Kansas banking | - | - | - | - | - | 49 | 193 | 255 | ||||||||||||||||||||||||
| Total other real estate | $ | 350 | $ | 2,106 | $ | 2,122 | $ | 2,274 | $ | 2,274 | $ | 2,274 | $ | 2,393 | $ | 2,255 | ||||||||||||||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | ||||||||||||||||||||||||||||||||
| Continued | ||||||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | |||||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||||||||
| POTENTIAL PROBLEM LOANS BY TYPE | ||||||||||||||||||||||||||||||||
| Construction & development | $ | 589 | $ | 588 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 201 | ||||||||||||||||
| Commercial real estate | 13,831 | 12,212 | 33,472 | 36,216 | 26,981 | 22,362 | 20,375 | 24,672 | ||||||||||||||||||||||||
| Commercial | 27,621 | 30,555 | 29,537 | 29,931 | 9,879 | 7,366 | 14,519 | 14,016 | ||||||||||||||||||||||||
| One-to-four family residential | 1,980 | 2,119 | 1,353 | 2,275 | 2,285 | 79 | 80 | 81 | ||||||||||||||||||||||||
| Consumer | 2 | 2 | 2 | 38 | 10 | - | - | - | ||||||||||||||||||||||||
| Total potential problem loans | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | ||||||||||||||||
| POTENTIAL PROBLEM LOANS BY SEGMENT | ||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 20,258 | $ | 21,780 | $ | 43,895 | $ | 46,102 | $ | 32,970 | $ | 23,597 | $ | 23,231 | $ | 26,713 | ||||||||||||||||
| Texas banking | 19,807 | 21,029 | 17,726 | 18,801 | 4,165 | 4,086 | 9,180 | 9,541 | ||||||||||||||||||||||||
| Kansas banking | 3,958 | 2,667 | 2,743 | 3,557 | 2,020 | 2,124 | 2,563 | 2,716 | ||||||||||||||||||||||||
| Total potential problem loans | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | ||||||||||||||||
| ALLOWANCE ACTIVITY | ||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 28,452 | $ | 26,876 | $ | 27,168 | $ | 26,106 | $ | 26,593 | $ | 26,219 | $ | 27,250 | $ | 28,452 | ||||||||||||||||
| Charge-offs | 2,108 | 626 | 538 | 3,725 | 569 | 226 | 325 | 230 | ||||||||||||||||||||||||
| Recoveries | 2,531 | 489 | 236 | 412 | 648 | 577 | 430 | 915 | ||||||||||||||||||||||||
| Net charge-offs (recoveries) | (423 | ) | 137 | 302 | 3,313 | (79 | ) | (351 | ) | (105 | ) | (685 | ) | |||||||||||||||||||
| Provision (credit) for loan losses | (1,329 | ) | 1,713 | 10 | 4,375 | (566 | ) | 23 | (1,136 | ) | (1,887 | ) | ||||||||||||||||||||
| Balance, end of period | $ | 27,546 | $ | 28,452 | $ | 26,876 | $ | 27,168 | $ | 26,106 | $ | 26,593 | $ | 26,219 | $ | 27,250 | ||||||||||||||||
| NET CHARGE-OFFS BY TYPE | ||||||||||||||||||||||||||||||||
| Construction & development | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (16 | ) | $ | (15 | ) | $ | 5 | ||||||||||||||
| Commercial real estate | (84 | ) | 108 | (44 | ) | (187 | ) | 219 | 24 | 82 | (118 | ) | ||||||||||||||||||||
| Commercial | (357 | ) | (64 | ) | 82 | 3,408 | (286 | ) | (325 | ) | (52 | ) | (188 | ) | ||||||||||||||||||
| One-to-four family residential | (16 | ) | 44 | (12 | ) | 41 | (48 | ) | (68 | ) | (91 | ) | (331 | ) | ||||||||||||||||||
| Consumer | 34 | 49 | 276 | 51 | 36 | 34 | (29 | ) | (53 | ) | ||||||||||||||||||||||
| Total net charge-offs (recoveries) by type | $ | (423 | ) | $ | 137 | $ | 302 | $ | 3,313 | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | |||||||||||
| NET CHARGE-OFFS BY SEGMENT | ||||||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | (178 | ) | $ | 34 | $ | 127 | $ | 458 | $ | 288 | $ | (86 | ) | $ | 25 | $ | (309 | ) | |||||||||||||
| Texas banking | (168 | ) | 180 | 211 | 952 | (415 | ) | (103 | ) | (72 | ) | (114 | ) | |||||||||||||||||||
| Kansas banking | (77 | ) | (77 | ) | (36 | ) | 1,903 | 48 | (162 | ) | (58 | ) | (262 | ) | ||||||||||||||||||
| Total net charge-offs (recoveries) by segment | $ | (423 | ) | $ | 137 | $ | 302 | $ | 3,313 | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | |||||||||||
| ****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) | ||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.33 | $ | 0.23 | $ | 0.29 | $ | 0.10 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.24 | ||||||||
| Diluted earnings per common share | 0.33 | 0.23 | 0.28 | 0.10 | 0.23 | 0.22 | 0.22 | 0.24 | ||||||||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.08 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | ||||||||||||||||
| Book value per common share | 15.35 | 15.19 | 15.06 | 14.81 | 14.80 | 14.57 | 14.38 | 14.26 | ||||||||||||||||
| Tangible book value per share* | 14.50 | 14.33 | 14.20 | 13.97 | 13.98 | 14.49 | 14.29 | 14.17 | ||||||||||||||||
| COMMON STOCK | ||||||||||||||||||||||||
| Shares issued | 21,230,714 | 21,223,895 | 21,223,613 | 21,225,034 | 21,138,028 | 19,901,336 | 19,900,855 | 19,900,350 | ||||||||||||||||
| Less treasury shares | 2,555,987 | 2,538,510 | 2,472,830 | 1,939,989 | 1,131,226 | 868,617 | 867,310 | 867,310 | ||||||||||||||||
| Outstanding shares | 18,674,727 | 18,685,385 | 18,750,783 | 19,285,045 | 20,006,802 | 19,032,719 | 19,033,545 | 19,033,040 | ||||||||||||||||
| Diluted outstanding shares | 18,551,146 | 18,545,614 | 18,677,912 | 19,267,473 | 19,866,477 | 18,846,561 | 18,863,977 | 18,934,175 | ||||||||||||||||
| OTHER FINANCIAL DATA | ||||||||||||||||||||||||
| Investment securities | $ | 436,661 | $ | 427,938 | $ | 422,296 | $ | 423,030 | $ | 412,128 | $ | 388,543 | $ | 373,260 | $ | 377,545 | ||||||||
| Loans held for sale | 4,386 | 7,899 | 7,010 | 1,803 | 7,453 | 7,024 | 6,687 | 9,106 | ||||||||||||||||
| Portfolio loans | 1,872,746 | 1,872,213 | 1,814,367 | 1,780,081 | 1,771,975 | 1,541,070 | 1,442,743 | 1,429,139 | ||||||||||||||||
| Total loans | 1,877,132 | 1,880,112 | 1,821,377 | 1,781,884 | 1,779,428 | 1,548,094 | 1,449,430 | 1,438,245 | ||||||||||||||||
| Total assets | 2,475,392 | 2,468,042 | 2,402,262 | 2,360,819 | 2,357,022 | 2,059,899 | 2,031,581 | 2,003,079 | ||||||||||||||||
| Total deposits | 1,946,018 | 1,947,924 | 1,902,865 | 1,895,248 | 1,884,105 | 1,626,250 | 1,624,446 | 1,616,454 | ||||||||||||||||
| Other borrowings | 183,814 | 173,971 | 153,568 | 117,763 | 110,927 | 96,801 | 75,839 | 58,578 | ||||||||||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | 46,393 | 51,548 | 46,393 | 46,393 | 46,393 | ||||||||||||||||
| Total shareholders' equity | 286,629 | 283,820 | 282,360 | 285,661 | 296,098 | 277,344 | 273,681 | 271,444 | ||||||||||||||||
| Mortgage servicing portfolio | 460,646 | 453,988 | 443,568 | 434,340 | 432,318 | 422,845 | 415,961 | 407,903 | ||||||||||||||||
| INTANGIBLE ASSET DATA | ||||||||||||||||||||||||
| Goodwill | $ | 13,545 | $ | 13,545 | $ | 13,467 | $ | 13,467 | $ | 13,467 | $ | 1,214 | $ | 1,214 | $ | 1,214 | ||||||||
| Core deposit intangible | 2,299 | 2,438 | 2,584 | 2,734 | 2,894 | 342 | 405 | 467 | ||||||||||||||||
| Mortgage servicing rights | 3,491 | 3,381 | 3,350 | 3,411 | 3,721 | 3,631 | 3,518 | 3,399 | ||||||||||||||||
| Total intangible assets | $ | 19,335 | $ | 19,364 | $ | 19,401 | $ | 19,612 | $ | 20,082 | $ | 5,187 | $ | 5,137 | $ | 5,080 | ||||||||
| Intangible amortization expense | $ | 275 | $ | 344 | $ | 350 | $ | 341 | $ | 330 | $ | 243 | $ | 243 | $ | 168 | ||||||||
| DEPOSIT COMPOSITION | ||||||||||||||||||||||||
| Non-interest bearing demand | $ | 551,709 | $ | 550,121 | $ | 545,421 | $ | 552,499 | $ | 596,494 | $ | 526,159 | $ | 515,156 | $ | 506,952 | ||||||||
| Interest-bearing demand | 152,656 | 146,583 | 160,886 | 168,210 | 151,015 | 114,877 | 131,547 | 140,659 | ||||||||||||||||
| Money market accounts | 567,058 | 576,550 | 547,415 | 540,323 | 534,357 | 502,028 | 496,178 | 488,569 | ||||||||||||||||
| Savings accounts | 56,410 | 54,849 | 55,209 | 56,235 | 56,333 | 36,163 | 35,647 | 34,413 | ||||||||||||||||
| Time deposits of $100,000 or more | 360,307 | 347,976 | 323,137 | 314,496 | 311,538 | 238,318 | 233,105 | 227,426 | ||||||||||||||||
| Other time deposits | 257,878 | 271,845 | 270,797 | 263,485 | 234,368 | 208,705 | 212,813 | 218,435 | ||||||||||||||||
| Total deposits** | $ | 1,946,018 | $ | 1,947,924 | $ | 1,902,865 | $ | 1,895,248 | $ | 1,884,105 | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | ||||||||
| OFFICES AND EMPLOYEES | ||||||||||||||||||||||||
| FTE Employees | 387 | 393 | 410 | 411 | 412 | 358 | 361 | 360 | ||||||||||||||||
| Banking Centers | 31 | 31 | 33 | 33 | 33 | 24 | 24 | 23 | ||||||||||||||||
| Assets per employee | $ | 6,396 | $ | 6,280 | $ | 5,859 | $ | 5,744 | $ | 5,721 | $ | 5,754 | $ | 5,628 | $ | 5,564 | ||||||||
| ____________________ | ||||||||||||||||||||||||
| *This is a Non-GAAP based financial measure. | ||||||||||||||||||||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | ||||||||||||||||||||||||
| Total deposits | $ | 1,946,018 | $ | 1,947,924 | $ | 1,902,865 | $ | 1,895,248 | $ | 1,884,105 | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | ||||||||
| Less: | ||||||||||||||||||||||||
| Brokered time deposits | 64,652 | 65,398 | 61,709 | 55,901 | 39,797 | 10,086 | 7,683 | 7,694 | ||||||||||||||||
| Other brokered deposits | 206,590 | 214,175 | 175,367 | 140,372 | 135,880 | 133,025 | 103,025 | 83,025 | ||||||||||||||||
| Non-brokered deposits | $ | 1,674,776 | $ | 1,668,351 | $ | 1,665,789 | $ | 1,698,975 | $ | 1,708,428 | $ | 1,483,139 | $ | 1,513,738 | $ | 1,525,735 | ||||||||
| Plus: | ||||||||||||||||||||||||
| Sweep repurchase agreements | 45,814 | 46,971 | 42,568 | 42,763 | 37,273 | 50,801 | 50,839 | 33,578 | ||||||||||||||||
| Core funding | $ | 1,720,590 | $ | 1,715,322 | $ | 1,708,357 | $ | 1,741,738 | $ | 1,745,701 | $ | 1,533,940 | $ | 1,564,577 | $ | 1,559,313 | ||||||||
| Balance sheet amounts are as of period end unless otherwise noted. | ||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | |||||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||
| Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||||||
| Return on average assets (annualized) | 1.00 | % | 0.70 | % | 0.91 | % | 0.32 | % | 0.78 | % | 0.81 | % | 0.85 | % | 0.92 | % | ||||||||||||||||
| Return on average common equity (annualized) | 8.59 | 5.97 | 7.67 | 2.56 | 6.14 | 5.94 | 6.11 | 6.78 | ||||||||||||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||||||||||||||
| (annualized)* | 9.10 | 6.33 | 8.13 | 2.71 | 6.46 | 5.97 | 6.14 | 6.82 | ||||||||||||||||||||||||
| Net interest margin (annualized) | 3.40 | 3.42 | 3.48 | 3.54 | 3.48 | 3.34 | 3.31 | 3.25 | ||||||||||||||||||||||||
| Total dividends declared to net income | 24.23 | 35.14 | 28.35 | 84.66 | 26.22 | 27.53 | 27.45 | 25.19 | ||||||||||||||||||||||||
| Effective tax rate | 37.38 | 34.45 | 34.70 | 35.19 | 35.96 | 35.84 | 34.51 | 37.49 | ||||||||||||||||||||||||
| Efficiency ratio | 64.34 | 66.09 | 65.70 | 67.48 | 72.17 | 68.16 | 71.83 | 71.69 | ||||||||||||||||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 16,267 | $ | 24,109 | $ | 22,259 | $ | 22,161 | $ | 19,858 | $ | 15,076 | $ | 8,887 | $ | 9,151 | ||||||||||||||||
| 90 days past due and accruing | 343 | 415 | 66 | 106 | 500 | 1 | - | - | ||||||||||||||||||||||||
| Total nonperforming loans | 16,610 | 24,524 | 22,325 | 22,267 | 20,358 | 15,077 | 8,887 | 9,151 | ||||||||||||||||||||||||
| Other real estate | 350 | 2,106 | 2,122 | 2,274 | 2,274 | 2,274 | 2,393 | 2,255 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 16,960 | $ | 26,630 | $ | 24,447 | $ | 24,541 | $ | 22,632 | $ | 17,351 | $ | 11,280 | $ | 11,406 | ||||||||||||||||
| Potential problem loans | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | ||||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||||||||||||
| Nonperforming assets to portfolio loans and | ||||||||||||||||||||||||||||||||
| other real estate | 0.91 | % | 1.42 | % | 1.35 | % | 1.38 | % | 1.28 | % | 1.12 | % | 0.78 | % | 0.80 | % | ||||||||||||||||
| Nonperforming loans to portfolio loans | 0.89 | 1.31 | 1.23 | 1.25 | 1.15 | 0.98 | 0.62 | 0.64 | ||||||||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.47 | 1.52 | 1.48 | 1.53 | 1.47 | 1.73 | 1.82 | 1.91 | ||||||||||||||||||||||||
| Allowance for loan losses to | ||||||||||||||||||||||||||||||||
| nonperforming loans | 165.84 | 116.02 | 120.39 | 122.01 | 128.23 | 176.38 | 295.03 | 297.78 | ||||||||||||||||||||||||
| Net loan charge-offs to average portfolio | ||||||||||||||||||||||||||||||||
| loans (annualized) | (0.09 | ) | 0.03 | 0.07 | 0.75 | (0.02 | ) | (0.09 | ) | (0.03 | ) | (0.20 | ) | |||||||||||||||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||||||||||
| Average total shareholders' equity to | ||||||||||||||||||||||||||||||||
| average assets | 11.62 | % | 11.75 | % | 11.93 | % | 12.42 | % | 12.77 | % | 13.59 | % | 13.87 | % | 13.59 | % | ||||||||||||||||
| Leverage ratio | 13.02 | 13.07 | 13.18 | 13.45 | 14.41 | 15.84 | 16.12 | 15.75 | ||||||||||||||||||||||||
| Common equity tier 1 capital | 12.36 | 11.95 | 12.22 | 12.13 | 13.21 | 14.57 | 15.30 | 15.51 | ||||||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 14.40 | 13.95 | 14.28 | 14.14 | 15.53 | 16.95 | 17.84 | 18.10 | ||||||||||||||||||||||||
| Total capital to risk-weighted assets | 15.66 | 15.21 | 15.53 | 15.39 | 16.79 | 18.21 | 19.09 | 19.36 | ||||||||||||||||||||||||
| Tangible common equity to tangible assets*** | 11.01 | 10.92 | 11.16 | 11.49 | 11.95 | 13.40 | 13.40 | 13.48 | ||||||||||||||||||||||||
| REGULATORY CAPITAL DATA | ||||||||||||||||||||||||||||||||
| Common equity tier 1 capital | $ | 272,882 | $ | 268,045 | $ | 266,612 | $ | 270,564 | $ | 282,737 | $ | 275,350 | $ | 272,048 | $ | 269,007 | ||||||||||||||||
| Tier I capital | 317,882 | 313,045 | 311,612 | 315,326 | 332,468 | 320,350 | 317,048 | 314,007 | ||||||||||||||||||||||||
| Total capital | 345,597 | 341,196 | 338,968 | 343,287 | 359,300 | 344,095 | 339,412 | 335,734 | ||||||||||||||||||||||||
| Total risk adjusted assets | 2,207,508 | 2,243,895 | 2,182,051 | 2,230,326 | 2,140,344 | 1,889,892 | 1,777,618 | 1,734,401 | ||||||||||||||||||||||||
| Average total assets | 2,440,918 | 2,395,991 | 2,363,834 | 2,344,259 | 2,307,421 | 2,022,972 | 1,966,577 | 1,993,446 | ||||||||||||||||||||||||
| *This is a Non-GAAP based financial measure. | ||||||||||||||||||||||||||||||||
| ***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure) | ||||||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 286,629 | $ | 283,820 | $ | 282,360 | $ | 285,661 | $ | 296,098 | $ | 277,344 | $ | 273,681 | $ | 271,444 | ||||||||||||||||
| Less goodwill and core deposit intangible | 15,844 | 15,983 | 16,051 | 16,201 | 16,361 | 1,556 | 1,619 | 1,681 | ||||||||||||||||||||||||
| Tangible common equity | $ | 270,785 | $ | 267,837 | $ | 266,309 | $ | 269,460 | $ | 279,737 | $ | 275,788 | $ | 272,062 | $ | 269,763 | ||||||||||||||||
| Total assets | $ | 2,475,392 | $ | 2,468,042 | $ | 2,402,262 | $ | 2,360,819 | $ | 2,357,022 | $ | 2,059,899 | $ | 2,031,581 | $ | 2,003,079 | ||||||||||||||||
| Less goodwill and core deposit intangible | 15,844 | 15,983 | 16,051 | 16,201 | 16,361 | 1,556 | 1,619 | 1,681 | ||||||||||||||||||||||||
| Tangible assets | $ | 2,459,548 | $ | 2,452,059 | $ | 2,386,211 | $ | 2,344,618 | $ | 2,340,661 | $ | 2,058,343 | $ | 2,029,962 | $ | 2,001,398 | ||||||||||||||||
| Total shareholders' equity to total assets | 11.58 | % | 11.50 | % | 11.75 | % | 12.10 | % | 12.56 | % | 13.46 | % | 13.47 | % | 13.55 | % | ||||||||||||||||
| Tangible common equity to tangible assets | 11.01 | % | 10.92 | % | 11.16 | % | 11.49 | % | 11.95 | % | 13.40 | % | 13.40 | % | 13.48 | % | ||||||||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | ||||||||||||||||||||||||||||||||