Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SOUTHWEST BANCORP INC | oksb-20150421x8k.htm |
| EX-99.2 - EX-99.2 - SOUTHWEST BANCORP INC | oksb-20150421xex992.htm |
|
For additional information: |
For Immediate Release
Southwest Bancorp, Inc. Reports First Quarter 2015 Results
and Announces Quarterly Dividend
April 21, 2015, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB), (“Southwest”), today reported net income for the first quarter of 2015 of $4.5 million, or $0.24 per diluted share, compared to $3.7 million, or $0.19 per diluted share, for the first quarter of 2014.
Southwest also announced that its board of directors has approved a quarterly cash dividend of $0.06 per share payable May 15, 2015 to shareholders of record as of May 1, 2015.
Mark Funke, President and CEO, stated, “The quarterly results reflect continued improvement in asset quality and our focus on growing loans and customer relationships. We are pleased with our results despite the economic headwinds currently existing in our markets. Our efforts produced several highlights.
|
· |
Loan growth in the first quarter was $38.3 million, or 11% (annualized). |
|
· |
Asset quality improved as nonperforming loans decreased $0.3 million, or 3% during the first quarter. The improved asset quality, coupled with net recoveries of prior-period loan losses of $0.7 million, resulted in a negative provision of $1.9 million for the quarter. |
|
· |
Core deposits grew by $68.5 million, or 5%, during the first quarter, as we continue to expand our customer base. |
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· |
Operating expenses have been reduced by $1.0 million, or 7%, compared to the first quarter of 2014, representing improved operating efficiencies. |
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· |
On February 24, 2015 our board of directors authorized a second share repurchase program of up to another 5.0%, or approximately 950,000 shares, effective upon the earlier of (i) the date Southwest completes the repurchase of all of the shares is is authorized to repurchase under the current program, and (ii) August 14, 2015. |
“Our positive financial results for 2015 reflect the good work of our associates at Bank SNB. We will continue to focus our company on growing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing our expenses. During the first quarter, we continued to make internal operational enhancements helping to form a solid base on which we can prudently grow our company.”
On April 10, 2015, Southwest’s banking subsidiary, Bank SNB, entered into an agreement with the FDIC to terminate the loss share agreements from its FDIC-assisted acquisition. Bank SNB initially entered the agreements when it acquired the assets of First National Bank of Anthony from the FDIC in June 2009. All future recoveries, charge-offs, and expenses related to these covered assets will now be recognized entirely by Bank SNB.
In January 2015, our Fort Worth, Texas branch formally opened, and on January 29, 2015, our second location in San Antonio, Texas received regulatory approval and will formally open in the second quarter of 2015. We have already seen positive production in the Fort Worth market that is expected to produce good growth in the second quarter as our new team builds momentum. The new San Antonio location provides needed space and a stronger profile for our growing investment in this market.
In the third quarter of 2014, Southwest’s share repurchase program, approved in August of 2014, authorized the repurchase of up to 5.0% or 990,000 shares of its outstanding common stock, par value $1.00 per share. As of March 31, 2015, Southwest had repurchased 867,310 shares for a total of $14.3 million in treasury stock. During the first quarter of 2015, Southwest purchased approximately 250,000 shares for a total of $4.0 million. On February 24, 2015, Southwest’s board of directors authorized a second share repurchase program of up to another 5.0%, or approximately 950,000 shares, effective upon the earlier of (i) the date we complete the repurchase of all of the shares Southwest is authorized to repurchase under the current program, and (ii) August 14, 2015.
Financial Overview
Condition: As of the end of the quarter ending March 31, 2015, total assets were $2.0 billion, an increase of $61.0 million from December 31, 2014. As of March 31, 2015, total loans were $1.4 billion and investment securities were $377.5 million, an increase of $38.3 million and $12.0 million from the prior quarter end, respectively. Cash and cash equivalents at March 31, 2015 were $154.4 million, up $13.5 million from December 31, 2014.
At March 31, 2015, the allowance for loan losses was $27.3 million, a decrease of $1.2 million when compared to December 31, 2014 and a decrease of $7.7 million when compared to a year ago. The allowance for loan losses to portfolio loans was 1.91% as of March 31, 2015, compared to 2.03% as of December 31, 2014 and 2.66% as of March 31, 2014. The allowance for loan losses to nonperforming loans was 297.78% as of March 31, 2015, compared to 302.26% as of December 31, 2014 and 217.13% as of March 31, 2014.
Nonperforming loans were $9.2 million at March 31, 2015, a decrease of $0.3 million from December 31, 2014, and a decrease of $7.0 million from March 31, 2014. Other real estate at March 31, 2015 was $2.3 million, a decrease of $0.8 million from December 31, 2014, and a decrease of $2.4 million when compared to March 31, 2014. Nonperforming assets were $11.4 million, or 0.80% of portfolio loans and other real estate, as of March 31, 2015, compared to $12.5 million, or 0.89% of portfolio loans and other real estate, as of December 31, 2014, and $20.7 million, or 1.57% of portfolio loans and other real estate, as of March 31, 2014.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 93% and 94% of total funding as of March 31, 2015 and December 31, 2014, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 7% and 6% of total funding at March 31, 2015 and December 31, 2014, respectively. See Table 6 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 March 31, 2015 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $335.7 million, for a total risk-based capital ratio of 19.36%, and Tier 1 capital was $314.0 million, for a Tier 1 risk-based capital ratio of 18.10%. Bank SNB had total regulatory capital of $285.3 million, for a total risk-based capital ratio of 16.53% and Tier 1 capital of $263.5 million, for a Tier 1 risk-based capital ratio of 15.27%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
First Quarter Results:
Summary: For the first quarter of 2015, net income was $4.5 million, compared to $5.9 million for the fourth quarter of 2014 and $3.7 million for the first quarter of 2014.
The $1.4 million decrease in net income compared to the fourth quarter of 2014 was primarily due to a $1.0 million decrease in net interest income, a $0.5 million lower negative provision for loan losses, and a $1.7 million decrease in noninterest income, due to the fourth quarter’s gain recognized on the divestiture of a private equity investment and interest rate swap income recognized during that quarter. These decreases were offset in part by a $1.0 million decrease in noninterest expense.
The $0.8 million increase in our net income compared to the first quarter of 2014 was primarily the result of a $1.0 million decrease in noninterest expense and a $0.9 million increase in the negative provision for loan losses, offset in part by a $0.4 million decrease in net interest income and a $0.2 million decrease in noninterest income.
Net Interest Income: Net interest income totaled $15.6 million for the first quarter of 2015, compared to $16.6 million for the fourth quarter of 2014, and to $16.0 million for the first quarter of 2014. Net interest margin was 3.25% for the first quarter of 2015, compared to 3.52% for the fourth quarter of 2014 and 3.33% for the first quarter of 2014. Included in interest income for the first quarter of 2014 was $0.6 million due to interest recognition resulting from loans returning to accrual status, and included in interest income for the fourth quarter of 2014 was $0.2 million due to interest recovery on nonaccrual loans combined with $0.6 million of accelerated discount accretion. The net effect of these additional incomes on the net interest margin was a 18 and a 12 basis point increase in the fourth quarter of 2014 and the first quarter of 2014, respectively. Loans (including loans held for sale) for the first quarter of 2015 increased $38.3 million, or 3%, when compared to December 31, 2014.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a negative provision (or credit) of $1.9 million for the first quarter of 2015, compared to a negative provision of $2.4 million for the fourth quarter of 2014, and a negative provision of $1.0 million for the first quarter of 2014. During the first quarter of 2015, net recoveries totaled $0.7 million, or (0.20%) (annualized) of average portfolio loans, compared to net charge-offs of $0.1 million, or 0.02% (annualized) of average portfolio loans for the fourth quarter of 2014 and net charge-offs of $0.8 million, or 0.24% (annualized) of average portfolio loans for the first quarter of 2014.
Noninterest Income: Noninterest income totaled $2.8 million for the first quarter of 2015, compared to $4.6 million for the fourth quarter of 2014 and $3.0 million for the first quarter of 2014.
The $1.7 million decrease from the fourth quarter of 2014 is primarily the result of a $1.1 million gain on sale of a private equity investment during the fourth quarter of 2014, a $0.4 million decrease in other noninterest income primarily due to fourth quarter 2014 swap fee income, a $0.1 million decrease in gain on sale of mortgage loans and a $0.1 million decrease in service charges and fees.
The $0.2 million decrease from the first quarter of 2014 is primarily the result of a $0.2 million decrease in service charges and fees, a $0.1 million decrease in gain on sale of investment securities due to the sale of an investment that was carried at cost during the first quarter of 2014, offset in part by a $0.1 million increase in gain on sale of mortgage loans.
Noninterest Expense: Noninterest expense totaled $13.1 million for the first quarter of 2015, compared to $14.1 million for the fourth quarter of 2014 and the first quarter of 2014.
The $1.0 million decrease in noninterest expense from fourth quarter of 2014 was primarily due to a $0.2 million decrease in other real estate expense, a $1.2 million decrease in general and administrative expense primarily from decreases in legal fees, consulting fees, accounting and examination fees, and decreased marketing expense, and a decrease of $0.1 million in occupancy expense, offset by a $0.5 million increase in personnel expense.
The $1.0 million decrease in noninterest expense from the first quarter of 2014 consisted of a $0.2 million decrease in personnel expense, a $0.6 million decrease in general and administrative expense, which includes a $0.3 million decrease in the provision for unfunded loan commitments, and a $0.1 million decrease in FDIC and other insurance.
Income Tax: Income tax expense totaled $2.7 million for the first quarter of 2015, compared to $3.5 million for the fourth quarter of 2014 and $2.2 million for the first quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The first quarter of 2015 effective tax rate was 37.5%, which is consistent with prior quarters.
Conference Call
Southwest will host a conference call to review these results on Wednesday, April 22, 2015 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10062880. 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/oksb150422.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 10062880. Telephone replay access will be available until 9:00 a.m. Eastern Time on May 20, 2015.
Southwest Bancorp and Subsidiaries
Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At March 31, 2015, Southwest had total assets of $2.0 billion, deposits of $1.6 billion, and shareholders’ equity of $271.4 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 March 31, 2015, approximately $413.5 million, or 29%, 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:
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· |
Statements of Southwest's goals, intentions, and expectations; |
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Estimates of risks and of future costs and benefits; |
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Expectations regarding Southwest’s future financial performance and the financial performance of its operating segments; |
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Expectations regarding regulatory actions; |
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Expectations regarding Southwest’s ability to utilize tax loss benefits; |
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Expectations regarding Southwest’s stock repurchase program; |
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Expectations regarding dividends; |
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Expectations regarding acquisitions and divestitures; |
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Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; |
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Estimates of the value of assets held for sale or available for sale; and |
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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 March 31, 2015 through the date its financial statements are filed with the Securities and Exchange Commission. The March 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 |
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Unaudited Consolidated Statements of Financial Condition |
Table 2 |
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Unaudited Consolidated Statements of Operations |
Table 3 |
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Unaudited Average Balances, Yields, and Rates-Quarterly |
Table 4 |
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Unaudited Quarterly Summary Loan Data |
Table 5 |
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Unaudited Quarterly Summary Financial Data |
Table 6 |
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Unaudited Quarterly Supplemental Analytical Data |
Table 7 |
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SOUTHWEST BANCORP, INC. |
Table 1 |
|
First Quarter |
Fourth Quarter |
||||||||||||
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QUARTERLY HIGHLIGHTS |
2015 |
2014 |
% Change |
2014 |
% Change |
||||||||
|
Operations |
|||||||||||||
|
Net interest income |
$ |
15,610 |
$ |
16,001 |
(2)% |
$ |
16,592 |
(6)% |
|||||
|
Provision for loan losses |
(1,887) | (986) | 91 | (2,386) | (21) | ||||||||
|
Noninterest income |
2,840 | 3,025 | (6) | 4,576 | (38) | ||||||||
|
Noninterest expense |
13,082 | 14,107 | (7) | 14,115 | (7) | ||||||||
|
Income before taxes |
7,255 | 5,905 | 23 | 9,439 | (23) | ||||||||
|
Taxes on income |
2,720 | 2,214 | 23 | 3,540 | (23) | ||||||||
|
Net income |
4,535 | 3,691 | 23 | 5,899 | (23) | ||||||||
|
Diluted earnings per share |
0.24 | 0.19 | 25 | 0.30 | (21) | ||||||||
|
Balance Sheet |
|||||||||||||
|
Total assets |
2,003,079 | 2,012,053 | (0) | 1,942,034 | 3 | ||||||||
|
Loans held for sale |
9,106 | 5,741 | 59 | 1,485 | 513 | ||||||||
|
Portfolio loans |
1,429,139 | 1,314,381 | 9 | 1,398,506 | 2 | ||||||||
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Total deposits |
1,616,454 | 1,605,906 | 1 | 1,533,999 | 5 | ||||||||
|
Total shareholders' equity |
271,444 | 264,586 | 3 | 270,786 | 0 | ||||||||
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Book value per common share |
14.26 | 13.37 | 7 | 14.11 | 1 | ||||||||
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Key Ratios |
|||||||||||||
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Net interest margin |
3.25% | 3.33% | 3.52% | ||||||||||
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Efficiency ratio |
70.47 | 73.61 | 68.90 | ||||||||||
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Total capital to risk-weighted assets |
19.36 | 21.29 | 20.96 | ||||||||||
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Nonperforming loans to portfolio loans |
0.64 | 1.22 | 0.67 | ||||||||||
|
Shareholders' equity to total assets |
13.55 | 13.15 | 13.94 | ||||||||||
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Tangible common equity to tangible assets* |
13.50 | 13.10 | 13.89 | ||||||||||
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Return on average assets (annualized) |
0.92 | 0.75 | 1.22 | ||||||||||
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Return on average common equity (annualized) |
6.78 | 5.68 | 8.62 | ||||||||||
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Return on average tangible common equity (annualized)** |
6.81 | 5.71 | 8.66 | ||||||||||
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 7 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.
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SOUTHWEST BANCORP, INC. |
Table 2 |
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March 31, |
December 31, |
March 31, |
||||||
|
2015 |
2014 |
2014 |
||||||
|
Assets |
||||||||
|
Cash and due from banks |
$ |
20,510 |
$ |
19,705 |
$ |
24,995 | ||
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Interest-bearing deposits |
133,886 | 121,231 | 241,579 | |||||
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Cash and cash equivalents |
154,396 | 140,936 | 266,574 | |||||
|
Securities held to maturity (fair values of $11,921, $12,880 and $11,252, respectively) |
11,393 | 12,362 | 10,700 | |||||
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Securities available for sale (amortized cost of $363,352, $352,275 and $376,837, respectively) |
366,152 | 353,231 | 376,287 | |||||
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Loans held for sale |
9,106 | 1,485 | 5,741 | |||||
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Loans receivable (includes loss share of $0, $0 and $1,139, respectively) |
1,429,139 | 1,398,506 | 1,314,381 | |||||
|
Less: Allowance for loan losses |
(27,250) | (28,452) | (34,925) | |||||
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Net loans receivable |
1,401,889 | 1,370,054 | 1,279,456 | |||||
|
Accrued interest receivable |
4,974 | 4,723 | 5,380 | |||||
|
Non-hedge derivative asset |
1,273 | 787 |
- |
|||||
|
Premises and equipment, net |
18,437 | 18,588 | 20,719 | |||||
|
Other real estate |
2,255 | 3,097 | 4,654 | |||||
|
Goodwill |
1,214 | 1,214 | 1,214 | |||||
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Other intangible assets, net |
3,866 | 3,927 | 4,931 | |||||
|
Other assets |
28,124 | 31,630 | 36,397 | |||||
|
Total assets |
$ |
2,003,079 |
$ |
1,942,034 |
$ |
2,012,053 | ||
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Liabilities |
||||||||
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Deposits: |
||||||||
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Noninterest-bearing demand |
$ |
506,952 |
$ |
496,128 |
$ |
471,568 | ||
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Interest-bearing demand |
140,659 | 122,342 | 132,622 | |||||
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Money market accounts |
488,569 | 461,679 | 440,875 | |||||
|
Savings accounts |
34,413 | 32,795 | 47,532 | |||||
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Time deposits of $100,000 or more |
227,426 | 198,952 | 236,035 | |||||
|
Other time deposits |
218,435 | 222,103 | 277,274 | |||||
|
Total deposits |
1,616,454 | 1,533,999 | 1,605,906 | |||||
|
Accrued interest payable |
770 | 769 | 807 | |||||
|
Non-hedge derivative liability |
1,273 | 787 |
- |
|||||
|
Other liabilities |
8,167 | 9,920 | 8,669 | |||||
|
Other borrowings |
58,578 | 79,380 | 85,692 | |||||
|
Subordinated debentures |
46,393 | 46,393 | 46,393 | |||||
|
Total liabilities |
1,731,635 | 1,671,248 | 1,747,467 | |||||
|
Shareholders' equity |
||||||||
|
Common stock - $1 par value; 40,000,000 shares authorized; |
||||||||
|
19,900,350 and 19,810,877 shares issued and 19,786,206 shares issued and outstanding, respectively |
19,900 | 19,811 | 19,786 | |||||
|
Additional paid-in capital |
101,395 | 101,245 | 100,853 | |||||
|
Retained earnings |
163,818 | 160,427 | 145,428 | |||||
|
Accumulated other comprehensive loss |
673 | (395) | (1,481) | |||||
|
Treasury stock, at cost, 867,310, 617,818 and 0 shares, respectively |
(14,342) | (10,302) |
- |
|||||
|
Total shareholders' equity |
271,444 | 270,786 | 264,586 | |||||
|
Total liabilities and shareholders' equity |
$ |
2,003,079 |
$ |
1,942,034 |
$ |
2,012,053 | ||
|
SOUTHWEST BANCORP, INC. |
Table 3 |
|
For the three months ended |
||||||||
|
March 31, |
December 31, |
March 31, |
||||||
|
2015 |
2014 |
2014 |
||||||
|
Interest income |
||||||||
|
Loans |
$ |
15,570 |
$ |
16,423 |
$ |
15,775 | ||
|
Investment securities |
1,349 | 1,506 | 1,650 | |||||
|
Other interest-earning assets |
305 | 287 | 375 | |||||
|
Total interest income |
17,224 | 18,216 | 17,800 | |||||
|
Interest expense |
||||||||
|
Interest-bearing deposits |
835 | 835 | 1,025 | |||||
|
Other borrowings |
227 | 225 | 225 | |||||
|
Subordinated debentures |
552 | 564 | 549 | |||||
|
Total interest expense |
1,614 | 1,624 | 1,799 | |||||
|
Net interest income |
15,610 | 16,592 | 16,001 | |||||
|
Provision for loan losses |
(1,887) | (2,386) | (986) | |||||
|
Net interest income after provision for loan losses |
17,497 | 18,978 | 16,987 | |||||
|
Noninterest income |
||||||||
|
Service charges and fees |
2,428 | 2,526 | 2,596 | |||||
|
Gain on sales of mortgage loans |
348 | 480 | 224 | |||||
|
Gain on sale/call of investment securities, net |
5 | 1,120 | 135 | |||||
|
Other noninterest income |
59 | 450 | 70 | |||||
|
Total noninterest income |
2,840 | 4,576 | 3,025 | |||||
|
Noninterest expense |
||||||||
|
Salaries and employee benefits |
7,914 | 7,428 | 8,126 | |||||
|
Occupancy |
2,284 | 2,369 | 2,284 | |||||
|
Data processing |
446 | 436 | 485 | |||||
|
FDIC and other insurance |
312 | 295 | 397 | |||||
|
Other real estate, net |
21 | 235 | 68 | |||||
|
General and administrative |
2,105 | 3,352 | 2,747 | |||||
|
Total noninterest expense |
13,082 | 14,115 | 14,107 | |||||
|
Income before taxes |
7,255 | 9,439 | 5,905 | |||||
|
Taxes on income |
2,720 | 3,540 | 2,214 | |||||
|
Net income |
$ |
4,535 |
$ |
5,899 |
$ |
3,691 | ||
|
Basic earnings per common share |
$ |
0.24 |
$ |
0.30 |
$ |
0.19 | ||
|
Diluted earnings per common share |
0.24 | 0.30 | 0.19 | |||||
|
Common dividends declared per share |
0.06 | 0.04 | 0.04 | |||||
|
SOUTHWEST BANCORP, INC. |
Table 4 |
|
For the three months ended |
||||||||||||||
|
March 31, 2015 |
December 31, 2014 |
March 31, 2014 |
||||||||||||
|
Average |
Average |
Average |
Average |
Average |
Average |
|||||||||
|
Balance |
Yield/Rate |
Balance |
Yield/Rate |
Balance |
Yield/Rate |
|||||||||
|
Assets |
||||||||||||||
|
Loans |
$ |
1,419,137 | 4.45% |
$ |
1,369,852 | 4.76% |
$ |
1,278,332 | 5.00% | |||||
|
Investment securities |
367,877 | 1.49 | 367,978 | 1.62 | 388,639 | 1.72 | ||||||||
|
Other interest-earning assets |
158,940 | 0.78 | 132,418 | 0.86 | 280,327 | 0.54 | ||||||||
|
Total interest-earning assets |
1,945,954 | 3.59 | 1,870,248 | 3.86 | 1,947,298 | 3.71 | ||||||||
|
Other assets |
49,460 | 44,268 | 50,247 | |||||||||||
|
Total assets |
$ |
1,995,414 |
$ |
1,914,516 |
$ |
1,997,545 | ||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||
|
Interest-bearing demand deposits |
$ |
138,895 | 0.10% |
$ |
114,035 | 0.11% |
$ |
134,760 | 0.12% | |||||
|
Money market accounts |
484,639 | 0.15 | 466,937 | 0.15 | 436,763 | 0.14 | ||||||||
|
Savings accounts |
33,350 | 0.10 | 32,824 | 0.10 | 44,764 | 0.10 | ||||||||
|
Time deposits |
434,409 | 0.57 | 427,582 | 0.57 | 531,071 | 0.63 | ||||||||
|
Total interest-bearing deposits |
1,091,293 | 0.31 | 1,041,378 | 0.32 | 1,147,358 | 0.36 | ||||||||
|
Other borrowings |
72,307 | 1.27 | 79,932 | 1.12 | 80,806 | 1.13 | ||||||||
|
Subordinated debentures |
46,393 | 4.76 | 46,393 | 4.86 | 46,393 | 4.73 | ||||||||
|
Total interest-bearing liabilities |
1,209,993 | 0.54 | 1,167,703 | 0.55 | 1,274,557 | 0.57 | ||||||||
|
Noninterest-bearing demand deposits |
503,275 | 465,466 | 449,128 | |||||||||||
|
Other liabilities |
10,918 | 9,765 | 10,489 | |||||||||||
|
Shareholders' equity |
271,228 | 271,582 | 263,371 | |||||||||||
|
Total liabilities and shareholders' equity |
$ |
1,995,414 |
$ |
1,914,516 |
$ |
1,997,545 | ||||||||
|
Net interest income and spread |
3.05% | 3.31% | 3.14% | |||||||||||
|
Net interest margin (1) |
3.25% | 3.52% | 3.33% | |||||||||||
|
Average interest-earning assets |
||||||||||||||
|
to average interest-bearing liabilities |
160.82% | 160.16% | 152.78% | |||||||||||
|
(1) Net interest margin = annualized net interest income / average interest-earning assets |
||||||||||||||
|
SOUTHWEST BANCORP, INC. |
Table 5 |
|
2015 |
2014 |
|||||||||||||
|
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||
|
LOAN COMPOSITION |
||||||||||||||
|
Real estate mortgage: |
||||||||||||||
|
Commercial |
$ |
759,676 |
$ |
752,971 |
$ |
757,878 |
$ |
769,021 |
$ |
766,178 | ||||
|
One-to-four family residential |
86,343 | 77,531 | 78,985 | 79,542 | 84,619 | |||||||||
|
Real estate construction: |
||||||||||||||
|
Commercial |
192,052 | 186,659 | 166,379 | 166,981 | 166,007 | |||||||||
|
One-to-four family residential |
12,586 | 10,464 | 11,030 | 8,359 | 6,629 | |||||||||
|
Commercial |
366,282 | 350,410 | 330,738 | 300,163 | 266,311 | |||||||||
|
Installment and consumer: |
||||||||||||||
|
Guaranteed student loans |
- |
37 | 127 | 4,282 | 4,318 | |||||||||
|
Other |
21,306 | 21,919 | 22,251 | 23,352 | 26,060 | |||||||||
|
Total loans, including held for sale |
1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||
|
Less allowance for loan losses |
(27,250) | (28,452) | (30,917) | (33,083) | (34,925) | |||||||||
|
Total loans, net |
$ |
1,410,995 |
$ |
1,371,539 |
$ |
1,336,471 |
$ |
1,318,617 |
$ |
1,285,197 | ||||
|
LOANS BY SEGMENT |
||||||||||||||
|
Oklahoma banking |
$ |
814,949 |
$ |
793,268 |
$ |
800,201 |
$ |
798,067 |
$ |
777,384 | ||||
|
Texas banking |
478,005 | 460,680 | 424,640 | 408,385 | 372,018 | |||||||||
|
Kansas banking |
145,291 | 146,043 | 142,547 | 145,248 | 170,720 | |||||||||
|
Total loans |
$ |
1,438,245 |
$ |
1,399,991 |
$ |
1,367,388 |
$ |
1,351,700 |
$ |
1,320,122 | ||||
|
NONPERFORMING LOANS BY TYPE |
||||||||||||||
|
Construction & development |
$ |
392 |
$ |
73 |
$ |
77 |
$ |
82 |
$ |
80 | ||||
|
Commercial real estate |
2,247 | 2,195 | 7,504 | 7,613 | 7,541 | |||||||||
|
Commercial |
5,447 | 6,044 | 6,149 | 7,484 | 7,992 | |||||||||
|
One-to-four family residential |
1,065 | 1,100 | 1,274 | 1,180 | 470 | |||||||||
|
Consumer |
- |
1 | 55 | 119 | 2 | |||||||||
|
Total nonperforming loans |
$ |
9,151 |
$ |
9,413 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | ||||
|
NONPERFORMING LOANS BY SEGMENT |
||||||||||||||
|
Oklahoma banking |
$ |
2,244 |
$ |
1,867 |
$ |
6,410 |
$ |
7,149 |
$ |
7,056 | ||||
|
Texas banking |
5,264 | 5,699 | 5,777 | 5,636 | 5,793 | |||||||||
|
Kansas banking |
1,643 | 1,847 | 2,872 | 3,693 | 3,236 | |||||||||
|
Total nonperforming loans |
$ |
9,151 |
$ |
9,413 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | ||||
|
OTHER REAL ESTATE BY TYPE |
||||||||||||||
|
Construction & development |
$ |
2,035 |
$ |
2,035 |
$ |
2,130 |
$ |
2,130 |
$ |
2,130 | ||||
|
Commercial real estate |
220 | 1,062 | 1,318 | 2,155 | 2,524 | |||||||||
|
Total other real estate |
$ |
2,255 |
$ |
3,097 |
$ |
3,448 |
$ |
4,285 |
$ |
4,654 | ||||
|
OTHER REAL ESTATE BY SEGMENT |
||||||||||||||
|
Oklahoma banking |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
|
Texas banking |
2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||
|
Kansas banking |
255 | 1,097 | 1,448 | 2,285 | 2,654 | |||||||||
|
Total other real estate |
$ |
2,255 |
$ |
3,097 |
$ |
3,448 |
$ |
4,285 |
$ |
4,654 | ||||
|
Continued |
||||||||||||||
|
SOUTHWEST BANCORP, INC. |
Table 5 |
|
2015 |
2014 |
|||||||||||||
|
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 |
24,672 | 26,108 | 40,623 | 60,559 | 64,257 | |||||||||
|
Commercial |
14,016 | 5,842 | 4,090 | 4,299 | 4,807 | |||||||||
|
One-to-four family residential |
81 | 83 | 355 | 475 | 481 | |||||||||
|
Total potential problem loans |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | ||||
|
POTENTIAL PROBLEM LOANS BY SEGMENT |
||||||||||||||
|
Oklahoma banking |
$ |
26,713 |
$ |
24,950 |
$ |
23,895 |
$ |
23,887 |
$ |
29,208 | ||||
|
Texas banking |
9,541 | 6,283 | 38,586 | 57,044 | 58,361 | |||||||||
|
Kansas banking |
2,716 | 2,804 | 1,894 | 3,244 | 4,196 | |||||||||
|
Total potential problem loans |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | ||||
|
ALLOWANCE ACTIVITY |
||||||||||||||
|
Balance, beginning of period |
$ |
28,452 |
$ |
30,917 |
$ |
33,083 |
$ |
34,925 |
$ |
36,663 | ||||
|
Charge offs |
230 | 377 | 1,156 | 1,991 | 3,392 | |||||||||
|
Recoveries |
915 | 298 | 1,887 | 504 | 2,640 | |||||||||
|
Net charge offs (recoveries) |
(685) | 79 | (731) | 1,487 | 752 | |||||||||
|
Provision for loan losses |
(1,887) | (2,386) | (2,897) | (355) | (986) | |||||||||
|
Balance, end of period |
$ |
27,250 |
$ |
28,452 |
$ |
30,917 |
$ |
33,083 |
$ |
34,925 | ||||
|
NET CHARGE OFFS BY TYPE |
||||||||||||||
|
Construction & development |
$ |
5 |
$ |
- |
$ |
- |
$ |
- |
$ |
655 | ||||
|
Commercial real estate |
(118) | (34) | (640) | 583 | (2,243) | |||||||||
|
Commercial |
(188) | (45) | 22 | 652 | 2,267 | |||||||||
|
One-to-four family residential |
(331) | 84 | 11 | (2) | (18) | |||||||||
|
Consumer |
(53) | 74 | (124) | 254 | 91 | |||||||||
|
Total net charge offs (recoveries) by type |
$ |
(685) |
$ |
79 |
$ |
(731) |
$ |
1,487 |
$ |
752 | ||||
|
NET CHARGE OFFS BY SEGMENT |
||||||||||||||
|
Oklahoma banking |
$ |
(309) |
$ |
248 |
$ |
67 |
$ |
763 |
$ |
229 | ||||
|
Texas banking |
(114) | (36) | (611) | 244 | (1,586) | |||||||||
|
Kansas banking |
(262) | (133) | (187) | 480 | 2,109 | |||||||||
|
Total net charge offs (recoveries) by segment |
$ |
(685) |
$ |
79 |
$ |
(731) |
$ |
1,487 |
$ |
752 | ||||
|
SOUTHWEST BANCORP, INC. |
Table 6
|
|
2015 |
2014 |
|||||||||||||
|
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||
|
PER SHARE DATA |
||||||||||||||
|
Basic earnings per common share |
$ |
0.24 |
$ |
0.30 |
$ |
0.27 |
$ |
0.31 |
$ |
0.19 | ||||
|
Diluted earnings per common share |
0.24 | 0.30 | 0.27 | 0.31 | 0.19 | |||||||||
|
Common dividends declared per share |
0.06 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||
|
Book value per common share |
14.26 | 14.11 | 13.90 | 13.71 | 13.37 | |||||||||
|
Tangible book value per share* |
14.20 | 14.05 | 13.83 | 13.65 | 13.31 | |||||||||
|
COMMON STOCK |
||||||||||||||
|
Shares issued |
19,900,350 | 19,810,877 | 19,793,623 | 19,793,123 | 19,786,206 | |||||||||
|
Less treasury shares |
867,310 | 617,818 | 223,005 |
- |
- |
|||||||||
|
Outstanding shares |
19,033,040 | 19,193,059 | 19,570,618 | 19,793,123 | 19,786,206 | |||||||||
|
OTHER FINANCIAL DATA |
||||||||||||||
|
Investment securities |
$ |
377,545 |
$ |
365,593 |
$ |
370,607 |
$ |
385,873 |
$ |
386,987 | ||||
|
Loans held for sale |
9,106 | 1,485 | 4,368 | 6,803 | 5,741 | |||||||||
|
Portfolio loans |
1,429,139 | 1,398,506 | 1,363,020 | 1,344,897 | 1,314,381 | |||||||||
|
Total loans |
1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||
|
Total assets |
2,003,079 | 1,942,034 | 1,900,948 | 1,885,158 | 2,012,053 | |||||||||
|
Total deposits |
1,616,454 | 1,533,999 | 1,494,946 | 1,463,855 | 1,605,906 | |||||||||
|
Other borrowings |
58,578 | 79,380 | 75,884 | 90,760 | 85,692 | |||||||||
|
Subordinated debentures |
46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||
|
Total shareholders' equity |
271,444 | 270,786 | 271,966 | 271,351 | 264,586 | |||||||||
|
Mortgage servicing portfolio |
407,903 | 410,315 | 401,756 | 397,339 | 391,303 | |||||||||
|
INTANGIBLE ASSET DATA |
||||||||||||||
|
Goodwill |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 | ||||
|
Core deposit intangible |
467 | 530 | 597 | 667 | 1,925 | |||||||||
|
Mortgage servicing rights |
3,399 | 3,397 | 3,269 | 3,182 | 3,006 | |||||||||
|
Total intangible assets |
$ |
5,080 |
$ |
5,141 |
$ |
5,080 |
$ |
5,063 |
$ |
6,145 | ||||
|
Intangible amortization expense |
$ |
237 |
$ |
193 |
$ |
195 |
$ |
210 |
$ |
183 | ||||
|
DEPOSIT COMPOSITION |
||||||||||||||
|
Non-interest bearing demand |
$ |
506,952 |
$ |
496,128 |
$ |
445,148 |
$ |
427,431 |
$ |
471,568 | ||||
|
Interest-bearing demand |
140,659 | 122,342 | 104,807 | 124,712 | 132,622 | |||||||||
|
Money market accounts |
488,569 | 461,679 | 477,614 | 430,296 | 440,875 | |||||||||
|
Savings accounts |
34,413 | 32,795 | 33,398 | 31,187 | 47,532 | |||||||||
|
Time deposits of $100,000 or more |
227,426 | 198,952 | 203,090 | 209,059 | 236,035 | |||||||||
|
Other time deposits |
218,435 | 222,103 | 230,889 | 241,170 | 277,274 | |||||||||
|
Total deposits** |
$ |
1,616,454 |
$ |
1,533,999 |
$ |
1,494,946 |
$ |
1,463,855 |
$ |
1,605,906 | ||||
|
OFFICES AND EMPLOYEES |
||||||||||||||
|
FTE Employees |
360 | 359 | 351 | 364 | 397 | |||||||||
|
Branches |
22 | 21 | 21 | 21 | 24 | |||||||||
|
Assets per employee |
$ |
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 |
$ |
1,616,454 |
$ |
1,533,999 |
$ |
1,494,946 |
$ |
1,463,855 |
$ |
1,605,906 | ||||
|
Less: |
||||||||||||||
|
Brokered time deposits |
7,694 | 3,373 | 2,952 | 1,348 | 1,347 | |||||||||
|
Other brokered deposits |
83,025 | 73,425 | 98,425 | 48,424 | 3,424 | |||||||||
|
Non-brokered deposits |
$ |
1,525,735 |
$ |
1,457,201 |
$ |
1,393,569 |
$ |
1,414,083 |
$ |
1,601,135 | ||||
|
Plus: |
||||||||||||||
|
Sweep repurchase agreements |
33,578 | 54,380 | 50,884 | 65,760 | 60,692 | |||||||||
|
Core funding |
$ |
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 7
|
|
2015 |
2014 |
|||||||||||||
|
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||
|
PERFORMANCE RATIOS |
||||||||||||||
|
Return on average assets (annualized) |
0.92% | 1.22% | 1.12% | 1.27% | 0.75% | |||||||||
|
Return on average common equity (annualized) |
6.78 | 8.62 | 7.69 | 9.19 | 5.68 | |||||||||
|
Return on average tangible common equity |
||||||||||||||
|
(annualized)* |
6.81 | 8.66 | 7.72 | 9.24 | 5.71 | |||||||||
|
Net interest margin (annualized) |
3.25 | 3.52 | 3.44 | 3.50 | 3.33 | |||||||||
|
Total dividends declared to net income |
25.19 | 12.93 | 14.88 | 12.86 | 21.40 | |||||||||
|
Effective tax rate |
37.49 | 37.50 | 37.49 | 37.50 | 37.49 | |||||||||
|
Efficiency ratio |
70.47 | 68.90 | 71.39 | 74.25 | 73.61 | |||||||||
|
NONPERFORMING ASSETS |
||||||||||||||
|
Nonaccrual loans |
$ |
9,151 |
$ |
9,276 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | ||||
|
90 days past due and accruing |
- |
137 |
- |
- |
- |
|||||||||
|
Total nonperforming loans |
9,151 | 9,413 | 15,059 | 16,478 | 16,085 | |||||||||
|
Other real estate |
2,255 | 3,097 | 3,448 | 4,285 | 4,654 | |||||||||
|
Total nonperforming assets |
$ |
11,406 |
$ |
12,510 |
$ |
18,507 |
$ |
20,763 |
$ |
20,739 | ||||
|
Potential problem loans |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | ||||
|
ASSET QUALITY RATIOS |
||||||||||||||
|
Nonperforming assets to portfolio loans and |
||||||||||||||
|
other real estate |
0.80% | 0.89% | 1.36% | 1.54% | 1.57% | |||||||||
|
Nonperforming loans to portfolio loans |
0.64 | 0.67 | 1.10 | 1.23 | 1.22 | |||||||||
|
Allowance for loan losses to portfolio loans |
1.91 | 2.03 | 2.27 | 2.46 | 2.66 | |||||||||
|
Allowance for loan losses to |
||||||||||||||
|
nonperforming loans |
297.78 | 302.26 | 205.29 | 200.77 | 217.13 | |||||||||
|
Net loan charge-offs to average portfolio |
||||||||||||||
|
loans (annualized) |
(0.20) | 0.02 | (0.21) | 0.45 | 0.24 | |||||||||
|
CAPITAL RATIOS |
||||||||||||||
|
Average total shareholders' equity to |
||||||||||||||
|
average assets |
13.59% | 14.19% | 14.61% | 13.77% | 13.18% | |||||||||
|
Leverage ratio |
15.75 | 16.45 | 16.86 | 15.95 | 15.09 | |||||||||
|
Tier 1 capital to risk-weighted assets |
18.10 | 19.70 | 20.05 | 20.13 | 19.98 | |||||||||
|
Total capital to risk-weighted assets |
19.36 | 20.96 | 21.34 | 21.43 | 21.29 | |||||||||
|
Tangible common equity to tangible assets*** |
13.50 | 13.89 | 14.25 | 14.34 | 13.10 | |||||||||
|
REGULATORY CAPITAL DATA |
||||||||||||||
|
Tier I capital |
$ |
314,007 |
$ |
314,216 |
$ |
314,120 |
$ |
309,600 |
$ |
299,938 | ||||
|
Total capital |
335,734 | 334,348 | 334,456 | 329,586 | 319,516 | |||||||||
|
Total risk adjusted assets |
1,734,401 | 1,595,032 | 1,566,996 | 1,537,903 | 1,500,957 | |||||||||
|
Average total assets |
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 |
$ |
271,444 |
$ |
270,786 |
$ |
271,966 |
$ |
271,351 |
$ |
264,586 | ||||
|
Less goodwill |
1,214 | 1,214 | 1,214 | 1,214 | 1,214 | |||||||||
|
Tangible common equity |
$ |
270,230 |
$ |
269,572 |
$ |
270,752 |
$ |
270,137 |
$ |
263,372 | ||||
|
Total assets |
$ |
2,003,079 |
$ |
1,942,034 |
$ |
1,900,948 |
$ |
1,885,158 |
$ |
2,012,053 | ||||
|
Less goodwill |
1,214 | 1,214 | 1,214 | 1,214 | 1,214 | |||||||||
|
Tangible assets |
$ |
2,001,865 |
$ |
1,940,820 |
$ |
1,899,734 |
$ |
1,883,944 |
$ |
2,010,839 | ||||
|
Total shareholders' equity to total assets |
13.55% | 13.94% | 14.31% | 14.39% | 13.15% | |||||||||
|
Tangible common equity to tangible assets |
13.50% | 13.89% | 14.25% | 14.34% | 13.10% | |||||||||
|
Balance sheet amounts and ratios are as of period end unless otherwise noted. |
||||||||||||||