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8-K - 8-K - SOUTHWEST BANCORP INCoksb-20151020x8k.htm
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For additional information:
           Mark W. Funke
           President & CEO
           Joe T. Shockley, Jr.
           EVP & CFO
           (405) 372-2230

For Immediate Release

Southwest Bancorp, Inc. Reports Another Quarter of Solid Results for Third Quarter 2015 

and Announces Quarterly Dividend

October 20, 2015, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB), (“Southwest”), today reported net income for the third quarter of 2015  of  $4.1 million, or $0.22 per diluted share, compared to $5.3 million, or $0.27 per diluted share, for the third quarter of 2014, which included a negative (credit) provision for loan losses of $2.9 million. Net income for the nine months ended September 30, 2015 totaled $12.8 million, or $0.68 per diluted share, compared to $15.1 million, or $0.77 per diluted share, for the nine months ended September 30, 2014. Included in the prior year’s results was a pre-tax net gain on sale of bank branches of $4.4 million and a negative (credit) provision for loan losses of $4.2 million, versus a negative (credit) provision for loan losses of $3.0 million for the first nine months of 2015.

Southwest also announced that its board of directors has approved a quarterly cash dividend of $0.06 per share payable November  13, 2015 to shareholders of record as of October 30, 2015.

Mark Funke, President and CEO, stated, “The third quarter was a busy and successful quarter for Bank SNB.  We received regulatory approval to acquire First Commercial Bancshares, Inc. and completed the acquisition in early October.  This expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also adds Colorado to our geographic footprint with three branches in Denver and one in Colorado Springs.   

The financial results for the third quarter reflect solid earnings, improved efficiency, and strong loan growthOur efforts produced several highlights:

·

Received regulatory approval to acquire Edmond-based First Commercial Bancshares, Inc. (“FCBI”) and closed the merger on October 9, 2015.

·

Loan growth was $98.7 million, or 7%, for the third quarter and $148.1 million, or 11%, for the first nine months of 2015. We have had seven consecutive quarters of loan growth. 

·

The quarterly net interest margin improved to 3.34%  at September 30, 2015 compared to 3.31% at June 30, 2015. 

·

The quarterly efficiency ratio improved to 68.25% for the third quarter, reflecting management’s commitment to improved operating performance.

Our financial results and the strong loan growth for the third quarter reflect the excellent work of our banking associates. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing our expenses.

Southwest’s share repurchase program, approved in August of 2014, authorized the repurchase of up to 5.0% or 990,000 shares of its outstanding common stock, par value $1.00 per share.  As of September 30, 2015, Southwest had repurchased 867,310 shares for a total of $14.3 million.   During the third quarter of 2015, no shares were repurchased due to trade restrictions pursuant to the pending acquisition of FCBI.  On August 14, 2015, this share repurchase plan expired.  On February 24, 2015, Southwest’s board of directors authorized a second share 

 


 

repurchase program of up to another 5.0% of its outstanding common stock, or approximately 950,000 shares,  which became effective on August 14, 2015, immediately following the expiration of the 2014 program.

 

Financial Overview

Condition:    As of September 30, 2015, total assets were $2.1 billion, an increase of $28.3 million from June 30, 2015.    As of September 30, 2015, total loans were $1.5  billion and investment securities were $388.5 million, an increase of $98.7 million and an increase of $15.3 million from the prior quarter end, respectively.    Consequently, cash and cash equivalents at September 30, 2015  were $68.6 million,  down  $88.0 million from June 30, 2015

At September 30, 2015, the allowance for loan losses was $26.6 million, an increase of  $0.4 million when compared to June 30, 2015 and a decrease of  $4.3 million when compared to September 30, 2014.  The allowance for loan losses to portfolio loans was 1.73% as of September  30, 2015, compared to 1.82% as of June 30, 2015 and 2.27% as of September 30, 2014.  The allowance for loan losses to nonperforming loans was 176.38%  as of September 30, 2015, compared to 295.03% as of June 30, 2015 and 205.29% as of September 30, 2014.   

Nonperforming loans were  $15.1  million at September 30, 2015,  an increase of $6.2 million from June 30, 2015, and remained relatively flat from September 30, 2014.  Other real estate at September 30, 2015 was $2.3 million, a  decrease  of $0.1 million from June 30, 2015,  and a decrease of $1.2 million when compared to September 30, 2014.  Nonperforming assets were $17.4 million, or 1.12% of portfolio loans and other real estate, as of September 30, 2015, compared to $11.3 million, or 0.78% of portfolio loans and other real estate, as of June 30, 2015, and $18.5 million, or 1.36% of portfolio loans and other real estate, as of September 30, 2014.  

Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 89% and 92% of total funding as of September 30, 2015 and June 30, 2015, respectively.  Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 11%  and 8%  of total funding at September 30, 2015 and June 30, 2015, respectively.  See Table 7  for details on core funding and non-brokered deposits, which are non-GAAP financial measures.

The capital ratios of Southwest and Bank SNB as of September 30, 2015 exceeded the criteria for regulatory classification as “well-capitalized”.  Southwest’s total regulatory capital was $344.1 million, for a total risk-based capital ratio of 18.21%, Common Equity Tier 1 capital was $275.4 million, for a Common Equity Tier 1 ratio of 14.57%, and Tier 1 capital was $320.4 million, for a Tier 1 risk-based capital ratio of  16.95%.  Bank SNB had total regulatory capital of  $296.9  million, for a total risk-based capital ratio of 15.77% and Common Equity Tier 1 and Tier 1 capital of $273.2 million, for a Common Equity Tier 1 and Tier 1 ratio of 14.51%.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Third Quarter Results:

Summary:  For the third quarter of 2015, net income was $4.1 million, compared to $4.2 million for the second quarter of 2015 and $5.3 million for the third quarter of 2014

The $0.04 million decrease in net income compared to the second quarter of 2015 was primarily due to  a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of  $1.1 million, a $0.1 million increase in noninterest expense, and an increase in taxes of $0.1 million,  offset in part by  a $0.7 million increase in net interest income and a $0.6 million increase of noninterest income.

The $1.2 million decrease in our net income compared to the third quarter of 2014 was primarily the result of a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of $2.9 million and a $0.7 million increase in noninterest expense, offset in part by  a $0.7 million increase in net interest income, a $0.9 million increase in noninterest income, and a $0.9 million decrease in taxes.  

Net Interest Income:    Net interest income totaled $16.5 million for the third quarter of 2015, compared to $15.8 million for the second quarter of 2015 and the third quarter of 2014.  Net interest margin was  3.34% for the third quarter of 2015, compared to 3.31% for the second quarter of 2015 and 3.44% for the third quarter of 2014. Loans (including loans held for sale) for the third quarter of 2015 increased $98.7 million, or 7%, when compared to June  30, 2015, and $180.7 million, or 13%, when compared to September 30, 2014.


 

Provision (Credit) for Loan Losses and Net Charge-offs:  The provision for loan losses is the amount that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period.  The provision for loan losses was a provision of $0.02 million for the third quarter of 2015, compared to a negative provision of $1.1 million for the second quarter of 2015, and a  negative provision of $2.9 million for the third quarter of 2014.  The $98.7 million loan growth in the third quarter of 2015 accounts for $1.3 million of the excess provision for loan losses. During the third quarter of 2015,  net recoveries totaled $0.4 million, or (0.09%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.03%) (annualized) of average portfolio loans for the second quarter of 2015 and net recoveries of $0.7 million, or (0.21%) (annualized) of average portfolio loans for the third quarter of 2014.    

Noninterest Income:  Noninterest income totaled $4.0  million for the third quarter of 2015, compared to $3.4 million for the second quarter of 2015 and $3.1 million for the third quarter of 2014.    

The $0.6 million increase  from the second  quarter of 2015 is primarily the result of a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income, offset in part by a $0.1 million decrease in gain on sale of mortgage loans, and a $0.1 million decrease in gain on sale of securities.    

The $0.9 million increase from the third quarter of 2014 is primarily the result of a $0.2 million increase in the gain on sale of mortgage loans and a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income and interest income on bank owned life insurance, offset in part by a $0.1 million decrease in service charges and fees.

Noninterest Expense:    Noninterest expense totaled $14.1 million for the third quarter of 2015, compared to $14.0 million for the second quarter of 2015 and $13.4 million for the third quarter of 2014

The $0.1 million increase in noninterest expense from the second quarter of 2015 was primarily due to a  $0.1 million increase in each personnel expense,  occupancy expense, and data processing, offset in part by a $0.1 million decrease in other real estate, and a $0.1 million decrease in general and administrative expense primarily related to the decrease in provision for unfunded loan commitments, and also included $0.3 million in FCBI acquisition expenses and $0.1 million in swap fee consulting expense, offset in part by the reversal of a prior accrual of a contingent liability.

The $0.7 million increase in  noninterest expense from the third quarter of 2014 consisted of a $0.6 million increase in personnel expense, a $0.1 million increase in data processing, a $0.2 million increase in other real estate, and a $0.3 million increase in the provision for unfunded loan commitments, offset in part by a $0.6 million decrease in general and administrative expense, which includes primarily legal, accounting, and marketing expenses. 

Income Tax:  Income tax expense totaled $2.3  million for the third quarter of 2015, compared to  $2.2 million for the second quarter of 2015 and $3.2 million for the third quarter of 2014.  The income tax expense fluctuates in relation to pre-tax income levels.  The third quarter of 2015 effective tax rate was 35.84%,  compared to 34.51% for the second quarter of 2015 and 37.49% for the third quarter of 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

 

Year-to-date Results:

Summary:  Net income was $12.8 million for the nine months ended September 30, 2015, compared to $15.1 million for the nine months ended September  30, 2014.  The $2.3 million decrease in net income from 2014 is the result of a  $0.5 million decrease in net interest income, a $1.2 million decrease in the negative provision for loan losses, and a $4.1 million decrease in noninterest income, which is primarily the pre-tax net gain of $4.4 million on the sales of community bank branches in the second quarter of 2014, offset in part by a $1.7 million decrease in noninterest expense, primarily due to decreased general and administrative expense and other real estate expenses, and a $1.8 million decrease in income tax.

Net Interest Income:    Net interest income totaled $47.9 million for the first nine months of 2015, compared to $48.4 million for the first nine months of 2014, a decrease of $0.5 millionYear-to-date net interest margin was 3.30%, compared to 3.43% for 2014. Included in interest income for the first nine months of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by a loss share agreement and $0.6 million due to the interest recognition resulting from loans returning to accrual status.  The net effect of these


 

adjustments on the net interest margin was a 9 basis point increase for the first nine months of 2014With the rate environment remaining low, earning assets are repricing at lower rates.

Provision (Credit) for Loan Losses and Net Charge-offs:  The provision for loan losses is the amount of expense that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period.  The provision for loan losses was a credit (or negative) of $3.0 million for the first nine months of 2015, compared to a negative provision of $4.2 million for the first nine months of 2014. Net recoveries totaled $1.1 million, or (0.11%)  (annualized) of average portfolio loans year-to-date as of September 30, 2015, compared to net charge-offs of  $1.5 million, or 0.15% (annualized) of average portfolio loans for the same period in 2014.  

Noninterest Income:  Noninterest income totaled $10.3 million for the first nine months of 2015, compared to $14.4 million for the first nine months of 2014.  The decrease consists of a $0.4 million decrease in service charges and fees, the $4.4 million recognized as the pre-tax net gain on the sales of the community bank branches in the second quarter of 2014, and a $0.6 million decrease in the gain on sale of investment securities, due to the gain on the sale of a stock investment that was acquired in a prior year repossession in 2014, offset in part by a $0.5 million increase in gains on sales of mortgage loans and a $0.8 million increase in other noninterest income, which includes customer risk management interest rate swap income and interest income on bank owned life insurance.    

Noninterest Expense:    Noninterest expense totaled $41.1 million for the first nine months of 2015, compared to $42.8 million for the first nine months of 2014.  The decrease consists of a $0.2 million decrease in other real estate expense and a $1.7 million decrease in other general and administrative expenses, which primarily includes legal, marketing, travel, consulting, and is offset by $0.5 million in FCBI acquisition expenses. These decreases are offset in part by a $0.2 million increase in employee benefit expenses and a $0.1 million increase in the provision for unfunded loan commitments.

Income Tax:  Income tax expense totaled $7.2 million for the first nine months of 2015, compared to $9.1 million for the first nine months of 2014.  The income tax expense fluctuates in relation to pre-tax income levels.  The year-to-date effective tax rate was 36.02% as of September 30, 2015, compared to 37.50% as of September 30, 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

 

Conference Call

Southwest will host a conference call to review these results on Wednesday, October 21, 2015 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).  Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN:  http://dpregister.com/10073037.  Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international).  Participants are encouraged to dial into the call approximately 10 minutes prior to the start time.  The call and corresponding presentation slides will be webcast live on Southwest’s website at www.oksb.com or http://services.choruscall.com/links/oksb151021.html.  An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international),  conference number 10073037.  Telephone replay access will be available until 9:00 a.m. Eastern Time on November 21, 2015.

 

Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”).  Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and ColoradoBank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company.  At September 30, 2015,  Southwest had total assets of approximately  $2.1  billion, deposits of $1.6  billion, and shareholders’ equity of $277.3 million.

Southwest’s area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers.  The strategic focus on healthcare lending was established in 1974.  Southwest and its banking subsidiary provide credit and other remittance services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and


 

purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities.  As of September 30, 2015, approximately $429.5 million, or 28%, of loans were loans to individuals and businesses in the healthcare industry.  Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.

Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. 

 

Caution About Forward-Looking Statements

Southwest makes forward-looking statements in this news release that are subject to risks and uncertainties.  These statements are intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include: 

·

Statements of Southwest's goals, intentions, and expectations;

·

Estimates of risks and of future costs and benefits;

·

Expectations regarding Southwest’s future financial performance and the financial performance of its operating segments;

·

Expectations regarding regulatory actions;

·

Expectations regarding Southwest’s ability to utilize tax loss benefits;

·

Expectations regarding Southwest’s stock repurchase program;

·

Expectations regarding dividends;

·

Expectations regarding acquisitions and divestitures;

·

Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs;

·

Estimates of the value of assets held for sale or available for sale; and

·

Statements of Southwest’s ability to achieve financial and other goals.

 

These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results.  For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2014.  You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors”.

The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.  These forward-looking statements speak only as of the date on which the statements were made.  Southwest does not intend, and undertakes no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of September 30, 2015 through the date its financial statements are filed with the Securities and Exchange Commission.  The September 30,  2015 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

 

The Southwest Bancorp, Inc. logo is available at

 http://www.globenewswire.com/newsroom/prs/?pkgid=8074


 

 

The Bank SNB logo is available at

 http://www.globenewswire.com/newsroom/prs/?pkgid=23106


 

Financial Tables

 

 

Unaudited Financial Highlights

Table 1

Unaudited Consolidated Statements of Financial Condition

Table 2

Unaudited Consolidated Statements of Operations

Table 3

Unaudited Average Balances, Yields, and Rates-Quarterly                                                          

Table 4

Unaudited Average Balances, Yields, and Rates-Year-to-date

Table 5

Unaudited Quarterly Summary Loan Data

Table 6

Unaudited Quarterly Summary Financial Data

Table 7

Unaudited Quarterly Supplemental Analytical Data

Table 8

 

 


 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)

Table 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

Second Quarter

 

 

Third Quarter

QUARTERLY HIGHLIGHTS

 

2015

 

% Change

 

2014

 

% Change

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

16,496 

 

$

15,791 

 

4% 

 

$

15,837 

 

4% 

Provision (credit) for loan losses

 

 

23 

 

 

(1,136)

 

(102)

 

 

(2,897)

 

(101)

Noninterest income

 

 

4,029 

 

 

3,409 

 

18 

 

 

3,084 

 

31 

Noninterest expense

 

 

14,077 

 

 

13,982 

 

 

 

13,358 

 

Income before taxes

 

 

6,425 

 

 

6,354 

 

 

 

8,460 

 

(24)

Taxes on income

 

 

2,303 

 

 

2,193 

 

 

 

3,172 

 

(27)

Net income

 

 

4,122 

 

 

4,161 

 

(1)

 

 

5,288 

 

(22)

Diluted earnings per share

 

 

0.22 

 

 

0.22 

 

 -

 

 

0.27 

 

(19)

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

2,059,899 

 

 

2,031,581 

 

 

 

1,900,948 

 

Loans held for sale

 

 

7,024 

 

 

6,687 

 

 

 

4,368 

 

61 

Portfolio loans

 

 

1,541,070 

 

 

1,442,743 

 

 

 

1,363,020 

 

13 

Total deposits

 

 

1,626,250 

 

 

1,624,446 

 

 

 

1,494,946 

 

Total shareholders' equity

 

 

277,344 

 

 

273,681 

 

 

 

271,966 

 

Book value per common share

 

 

14.57 

 

 

14.38 

 

 

 

13.90 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.34% 

 

 

3.31% 

 

 

 

 

3.44% 

 

 

Efficiency ratio

 

 

68.25 

 

 

72.43 

 

 

 

 

70.60 

 

 

Total capital to risk-weighted assets

 

 

18.21 

 

 

19.09 

 

 

 

 

21.34 

 

 

Nonperforming loans to portfolio loans

 

 

0.98 

 

 

0.62 

 

 

 

 

1.10 

 

 

Shareholders' equity to total assets

 

 

13.46 

 

 

13.47 

 

 

 

 

14.31 

 

 

Tangible common equity to tangible assets*

 

 

13.40 

 

 

13.40 

 

 

 

 

14.23 

 

 

Return on average assets (annualized)

 

 

0.81 

 

 

0.85 

 

 

 

 

1.12 

 

 

Return on average common equity (annualized)

 

 

5.94 

 

 

6.11 

 

 

 

 

7.69 

 

 

Return on average tangible common equity (annualized)**

 

 

5.97 

 

 

6.14 

 

 

 

 

7.72 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months

 

 

 

 

 

YEAR-TO-DATE  HIGHLIGHTS

 

2015

 

2014

 

% Change

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

47,897 

 

$

48,412 

 

(1)%

 

 

 

 

 

Provision (credit) for loan losses

 

 

(3,000)

 

 

(4,238)

 

(29)

 

 

 

 

 

Noninterest income

 

 

10,278 

 

 

14,355 

 

(28)

 

 

 

 

 

Noninterest expense

 

 

41,141 

 

 

42,797 

 

(4)

 

 

 

 

 

Income before taxes

 

 

20,034 

 

 

24,208 

 

(17)

 

 

 

 

 

Taxes on income

 

 

7,216 

 

 

9,077 

 

(21)

 

 

 

 

 

Net income

 

 

12,818 

 

 

15,131 

 

(15)

 

 

 

 

 

Net income available to common shareholders

 

 

12,818 

 

 

15,131 

 

(15)

 

 

 

 

 

Diluted earnings per share

 

 

0.68 

 

 

0.77 

 

(12)

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

2,059,899 

 

 

1,900,948 

 

 

 

 

 

 

Loans held for sale

 

 

7,024 

 

 

4,368 

 

61 

 

 

 

 

 

Portfolio loans

 

 

1,541,070 

 

 

1,363,020 

 

13 

 

 

 

 

 

Total deposits

 

 

1,626,250 

 

 

1,494,946 

 

 

 

 

 

 

Total shareholders' equity

 

 

277,344 

 

 

271,966 

 

 

 

 

 

 

Book value per common share

 

 

14.57 

 

 

13.90 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.30% 

 

 

3.43% 

 

 

 

 

 

 

 

Efficiency ratio

 

 

70.33 

 

 

68.18 

 

 

 

 

 

 

 

Total capital to risk-weighted assets

 

 

18.21 

 

 

21.34 

 

 

 

 

 

 

 

Nonperforming loans to portfolio loans

 

 

0.98 

 

 

1.10 

 

 

 

 

 

 

 

Shareholders' equity to total assets

 

 

13.46 

 

 

14.31 

 

 

 

 

 

 

 

Tangible common equity to tangible assets*

 

 

13.40 

 

 

14.23 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.86 

 

 

1.04 

 

 

 

 

 

 

 

Return on average common equity (annualized)

 

 

6.27 

 

 

7.54 

 

 

 

 

 

 

 

Return on average tangible common equity (annualized)**

 

 

6.31 

 

 

7.62 

 

 

 

 

 

 

 

 

Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure.  Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.

 


 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)

Table 2

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

 

2015

 

2014

 

2014

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

$

25,198 

 

$

19,705 

 

$

18,498 

Interest-bearing deposits

 

43,447 

 

 

121,231 

 

 

111,605 

Cash and cash equivalents

 

68,645 

 

 

140,936 

 

 

130,103 

Securities held to maturity (fair values of $13,462, $12,880 and $11,265, respectively)

 

12,954 

 

 

12,362 

 

 

10,663 

Securities available for sale (amortized cost of $373,219, $352,275 and $359,042, respectively)

 

375,589 

 

 

353,231 

 

 

359,944 

Loans held for sale

 

7,024 

 

 

1,485 

 

 

4,368 

Loans receivable (includes loss share of $0 in all periods)

 

1,541,070 

 

 

1,398,506 

 

 

1,363,020 

Less: Allowance for loan losses

 

(26,593)

 

 

(28,452)

 

 

(30,917)

Net loans receivable

 

1,514,477 

 

 

1,370,054 

 

 

1,332,103 

Accrued interest receivable

 

4,872 

 

 

4,723 

 

 

4,952 

Non-hedge derivative asset

 

2,344 

 

 

787 

 

 

166 

Premises and equipment, net

 

18,180 

 

 

18,588 

 

 

18,986 

Other real estate

 

2,274 

 

 

3,097 

 

 

3,448 

Goodwill

 

1,214 

 

 

1,214 

 

 

1,214 

Other intangible assets, net

 

3,973 

 

 

3,927 

 

 

3,866 

Other assets

 

48,353 

 

 

31,630 

 

 

31,135 

Total assets

$

2,059,899 

 

$

1,942,034 

 

$

1,900,948 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

526,159 

 

$

496,128 

 

$

445,148 

Interest-bearing demand

 

114,877 

 

 

122,342 

 

 

104,807 

Money market accounts

 

502,028 

 

 

461,679 

 

 

477,614 

Savings accounts

 

36,163 

 

 

32,795 

 

 

33,398 

Time deposits of $100,000 or more

 

238,318 

 

 

198,952 

 

 

203,090 

Other time deposits

 

208,705 

 

 

222,103 

 

 

230,889 

Total deposits

 

1,626,250 

 

 

1,533,999 

 

 

1,494,946 

Accrued interest payable

 

778 

 

 

769 

 

 

771 

Non-hedge derivative liability

 

2,344 

 

 

787 

 

 

166 

Other liabilities

 

9,989 

 

 

9,920 

 

 

10,822 

Other borrowings

 

96,801 

 

 

79,380 

 

 

75,884 

Subordinated debentures

 

46,393 

 

 

46,393 

 

 

46,393 

Total liabilities 

 

1,782,555 

 

 

1,671,248 

 

 

1,628,982 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

Common stock - $1 par value; 40,000,000 shares authorized;

 

 

 

 

 

 

 

 

19,901,336, 19,810,877, and 19,793,623 shares issued, respectively

 

19,901 

 

 

19,811 

 

 

19,794 

Additional paid-in capital

 

101,611 

 

 

101,245 

 

 

100,971 

Retained earnings

 

169,825 

 

 

160,427 

 

 

155,290 

Accumulated other comprehensive income (loss)

 

372 

 

 

(395)

 

 

(411)

Treasury stock, at cost, 868,617, 617,818 and 223,005 shares, respectively

 

(14,365)

 

 

(10,302)

 

 

(3,678)

Total shareholders' equity

 

277,344 

 

 

270,786 

 

 

271,966 

Total liabilities and shareholders' equity

$

2,059,899 

 

$

1,942,034 

 

$

1,900,948 

 

 


 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)

Table 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the nine months

 

September 30,

 

June 30,

 

September 30,

 

ended September 30,

 

2015

 

2015

 

2014

 

2015

 

2014

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

16,510 

 

$

15,839 

 

$

15,683 

 

$

47,919 

 

$

47,801 

Investment securities

 

1,443 

 

 

1,328 

 

 

1,534 

 

 

4,120 

 

 

4,812 

Other interest-earning assets

 

267 

 

 

288 

 

 

274 

 

 

860 

 

 

963 

Total interest income

 

18,220 

 

 

17,455 

 

 

17,491 

 

 

52,899 

 

 

53,576 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

905 

 

 

862 

 

 

864 

 

 

2,602 

 

 

2,820 

Other borrowings

 

255 

 

 

241 

 

 

227 

 

 

723 

 

 

675 

Subordinated debentures

 

564 

 

 

561 

 

 

563 

 

 

1,677 

 

 

1,669 

Total interest expense

 

1,724 

 

 

1,664 

 

 

1,654 

 

 

5,002 

 

 

5,164 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

16,496 

 

 

15,791 

 

 

15,837 

 

 

47,897 

 

 

48,412 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (credit) for loan losses

 

23 

 

 

(1,136)

 

 

(2,897)

 

 

(3,000)

 

 

(4,238)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

16,473 

 

 

16,927 

 

 

18,734 

 

 

50,897 

 

 

52,650 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

2,441 

 

 

2,450 

 

 

2,492 

 

 

7,319 

 

 

7,696 

Gain on sale of branches, net

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

4,378 

Gain on sales of mortgage loans

 

565 

 

 

621 

 

 

382 

 

 

1,534 

 

 

1,069 

Gain on sale/call of investment securities, net

 

19 

 

 

138 

 

 

 -

 

 

162 

 

 

764 

Other noninterest income

 

1,004 

 

 

200 

 

 

210 

 

 

1,263 

 

 

448 

Total noninterest income

 

4,029 

 

 

3,409 

 

 

3,084 

 

 

10,278 

 

 

14,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

8,374 

 

 

8,289 

 

 

7,804 

 

 

24,577 

 

 

24,402 

Occupancy

 

2,288 

 

 

2,201 

 

 

2,269 

 

 

6,773 

 

 

6,805 

Data processing

 

475 

 

 

410 

 

 

343 

 

 

1,331 

 

 

1,359 

FDIC and other insurance

 

341 

 

 

316 

 

 

299 

 

 

969 

 

 

1,010 

Other real estate, net

 

20 

 

 

112 

 

 

(220)

 

 

153 

 

 

359 

General and administrative

 

2,579 

 

 

2,654 

 

 

2,863 

 

 

7,338 

 

 

8,862 

Total noninterest expense

 

14,077 

 

 

13,982 

 

 

13,358 

 

 

41,141 

 

 

42,797 

Income before taxes

 

6,425 

 

 

6,354 

 

 

8,460 

 

 

20,034 

 

 

24,208 

Taxes on income

 

2,303 

 

 

2,193 

 

 

3,172 

 

 

7,216 

 

 

9,077 

Net income

$

4,122 

 

$

4,161 

 

$

5,288 

 

$

12,818 

 

$

15,131 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.22 

 

$

0.22 

 

$

0.27 

 

$

0.67 

 

$

0.77 

Diluted earnings per common share

 

0.22 

 

 

0.22 

 

 

0.27 

 

 

0.68 

 

 

0.77 

Common dividends declared per share

 

0.06 

 

 

0.06 

 

 

0.04 

 

 

0.18 

 

 

0.12 

 

 


 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands)

Table 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

September 30, 2015

 

June 30, 2015

 

September 30, 2014

 

Average

 

Average

 

Average

 

Average

 

Average

 

Average

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,473,297 

 

4.45% 

 

$

1,439,050 

 

4.41% 

 

$

1,356,729 

 

4.59% 

Investment securities

 

387,194 

 

1.48 

 

 

369,677 

 

1.44 

 

 

378,924 

 

1.61 

Other interest-earning assets

 

100,011 

 

1.06 

 

 

103,943 

 

1.11 

 

 

88,653 

 

1.23 

Total interest-earning assets

 

1,960,502 

 

3.69 

 

 

1,912,670 

 

3.66 

 

 

1,824,306 

 

3.80 

Other assets

 

65,459 

 

 

 

 

58,267 

 

 

 

 

43,339 

 

 

Total assets

$

2,025,961 

 

 

 

$

1,970,937 

 

 

 

$

1,867,645 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

123,829 

 

0.12% 

 

$

137,781 

 

0.09% 

 

$

109,245 

 

0.12% 

Money market accounts

 

497,935 

 

0.17 

 

 

473,993 

 

0.15 

 

 

437,632 

 

0.14 

Savings accounts

 

35,982 

 

0.10 

 

 

34,702 

 

0.10 

 

 

32,076 

 

0.10 

Time deposits

 

446,464 

 

0.57 

 

 

448,175 

 

0.57 

 

 

440,317 

 

0.60 

Total interest-bearing deposits

 

1,104,210 

 

0.33 

 

 

1,094,651 

 

0.32 

 

 

1,019,270 

 

0.34 

Other borrowings

 

76,799 

 

1.32 

 

 

60,568 

 

1.60 

 

 

85,423 

 

1.05 

Subordinated debentures

 

46,393 

 

4.86 

 

 

46,393 

 

4.84 

 

 

46,393 

 

4.85 

Total interest-bearing liabilities

 

1,227,402 

 

0.56 

 

 

1,201,612 

 

0.56 

 

 

1,151,086 

 

0.57 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

511,442 

 

 

 

 

485,984 

 

 

 

 

432,255 

 

 

Other liabilities

 

11,708 

 

 

 

 

10,005 

 

 

 

 

11,442 

 

 

Shareholders' equity

 

275,409 

 

 

 

 

273,336 

 

 

 

 

272,862 

 

 

Total liabilities and shareholders' equity

$

2,025,961 

 

 

 

$

1,970,937 

 

 

 

$

1,867,645 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 

3.13% 

 

 

 

 

3.10% 

 

 

 

 

3.23% 

Net interest margin (1)

 

 

 

3.34% 

 

 

 

 

3.31% 

 

 

 

 

3.44% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 

159.73% 

 

 

 

 

159.18% 

 

 

 

 

158.49% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net interest margin = annualized net interest income / average interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SOUTHWEST BANCORP, INC.                 Table 5
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE
(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30,

 

2015

 

2014

 

Average

 

Average

 

Average

 

Average

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

Loans

$

1,444,026 

 

4.44% 

 

$

1,322,351 

 

4.83% 

Investment securities

 

374,987 

 

1.47 

 

 

383,950 

 

1.68 

Other interest-earning assets

 

120,749 

 

0.95 

 

 

183,416 

 

0.70 

Total interest-earning assets

 

1,939,762 

 

3.65 

 

 

1,889,717 

 

3.79 

Other assets

 

57,787 

 

 

 

 

47,780 

 

 

Total assets

$

1,997,549 

 

 

 

$

1,937,497 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

133,447 

 

0.10% 

 

$

124,652 

 

0.12% 

Money market accounts

 

485,571 

 

0.16 

 

 

431,802 

 

0.14 

Savings accounts

 

34,688 

 

0.10 

 

 

39,941 

 

0.10 

Time deposits

 

443,060 

 

0.57 

 

 

488,066 

 

0.61 

Total interest-bearing deposits

 

1,096,766 

 

0.32 

 

 

1,084,461 

 

0.35 

Other borrowings

 

69,908 

 

1.38 

 

 

83,987 

 

1.07 

Subordinated debentures

 

46,393 

 

4.82 

 

 

46,393 

 

4.80 

Total interest-bearing liabilities

 

1,213,067 

 

0.55 

 

 

1,214,841 

 

0.57 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

500,263 

 

 

 

 

443,520 

 

 

Other liabilities

 

10,879 

 

 

 

 

10,898 

 

 

Shareholders' equity

 

273,340 

 

 

 

 

268,238 

 

 

Total liabilities and shareholders' equity

$

1,997,549 

 

 

 

$

1,937,497 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 

3.10% 

 

 

 

 

3.22% 

Net interest margin (1)

 

 

 

3.30% 

 

 

 

 

3.43% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 

159.91% 

 

 

 

 

155.55% 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net interest margin = annualized net interest income / average interest-earning assets

 

 

 

 

 

 


 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY LOAN DATA
(Dollars in thousands)

Table 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

Sep. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

LOAN COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

869,250 

 

$

759,406 

 

$

759,676 

 

$

752,971 

 

$

757,878 

 

$

769,021 

 

$

766,178 

One-to-four family residential

 

95,906 

 

 

85,338 

 

 

86,343 

 

 

77,531 

 

 

78,985 

 

 

79,542 

 

 

84,619 

Real estate construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

126,407 

 

 

186,140 

 

 

192,052 

 

 

186,659 

 

 

166,379 

 

 

166,981 

 

 

166,007 

One-to-four family residential

 

12,866 

 

 

13,107 

 

 

12,586 

 

 

10,464 

 

 

11,030 

 

 

8,359 

 

 

6,629 

Commercial

 

423,480 

 

 

384,788 

 

 

366,282 

 

 

350,410 

 

 

330,738 

 

 

300,163 

 

 

266,311 

Installment and consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed student loans

 

 -

 

 

 -

 

 

 -

 

 

37 

 

 

127 

 

 

4,282 

 

 

4,318 

Other

 

20,185 

 

 

20,651 

 

 

21,306 

 

 

21,919 

 

 

22,251 

 

 

23,352 

 

 

26,060 

Total loans, including held for sale

 

1,548,094 

 

 

1,449,430 

 

 

1,438,245 

 

 

1,399,991 

 

 

1,367,388 

 

 

1,351,700 

 

 

1,320,122 

Less allowance for loan losses

 

(26,593)

 

 

(26,219)

 

 

(27,250)

 

 

(28,452)

 

 

(30,917)

 

 

(33,083)

 

 

(34,925)

Total loans, net

$

1,521,501 

 

$

1,423,211 

 

$

1,410,995 

 

$

1,371,539 

 

$

1,336,471 

 

$

1,318,617 

 

$

1,285,197 

LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

832,282 

 

$

810,367 

 

$

814,949 

 

$

793,268 

 

$

800,201 

 

$

798,067 

 

$

777,384 

Texas banking

 

563,010 

 

 

493,047 

 

 

478,005 

 

 

460,680 

 

 

424,640 

 

 

408,385 

 

 

372,018 

Kansas banking

 

152,802 

 

 

146,016 

 

 

145,291 

 

 

146,043 

 

 

142,547 

 

 

145,248 

 

 

170,720 

Total loans

$

1,548,094 

 

$

1,449,430 

 

$

1,438,245 

 

$

1,399,991 

 

$

1,367,388 

 

$

1,351,700 

 

$

1,320,122 

NONPERFORMING LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

391 

 

$

416 

 

$

392 

 

$

73 

 

$

77 

 

$

82 

 

$

80 

Commercial real estate

 

1,795 

 

 

2,141 

 

 

2,247 

 

 

2,195 

 

 

7,504 

 

 

7,613 

 

 

7,541 

Commercial

 

11,727 

 

 

5,114 

 

 

5,447 

 

 

6,044 

 

 

6,149 

 

 

7,484 

 

 

7,992 

One-to-four family residential

 

1,016 

 

 

1,216 

 

 

1,065 

 

 

1,100 

 

 

1,274 

 

 

1,180 

 

 

470 

Consumer

 

148 

 

 

 -

 

 

 -

 

 

 

 

55 

 

 

119 

 

 

Total nonperforming loans

$

15,077 

 

$

8,887 

 

$

9,151 

 

$

9,413 

 

$

15,059 

 

$

16,478 

 

$

16,085 

NONPERFORMING LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

2,846 

 

$

1,670 

 

$

2,244 

 

$

1,867 

 

$

6,410 

 

$

7,149 

 

$

7,056 

Texas banking

 

11,025 

 

 

5,353 

 

 

5,264 

 

 

5,699 

 

 

5,777 

 

 

5,636 

 

 

5,793 

Kansas banking

 

1,206 

 

 

1,864 

 

 

1,643 

 

 

1,847 

 

 

2,872 

 

 

3,693 

 

 

3,236 

Total nonperforming loans

$

15,077 

 

$

8,887 

 

$

9,151 

 

$

9,413 

 

$

15,059 

 

$

16,478 

 

$

16,085 

OTHER REAL ESTATE BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

2,025 

 

$

2,035 

 

$

2,035 

 

$

2,035 

 

$

2,130 

 

$

2,130 

 

$

2,130 

Commercial real estate

 

249 

 

 

358 

 

 

220 

 

 

1,062 

 

 

1,318 

 

 

2,155 

 

 

2,524 

Total other real estate

$

2,274 

 

$

2,393 

 

$

2,255 

 

$

3,097 

 

$

3,448 

 

$

4,285 

 

$

4,654 

OTHER REAL ESTATE BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

200 

 

$

200 

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

Texas banking

 

2,025 

 

 

2,000 

 

 

2,000 

 

 

2,000 

 

 

2,000 

 

 

2,000 

 

 

2,000 

Kansas banking

 

49 

 

 

193 

 

 

255 

 

 

1,097 

 

 

1,448 

 

 

2,285 

 

 

2,654 

Total other real estate

$

2,274 

 

$

2,393 

 

$

2,255 

 

$

3,097 

 

$

3,448 

 

$

4,285 

 

$

4,654 

Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY LOAN DATA
(Dollars in thousands)

Table 6
Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

Sep. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

POTENTIAL PROBLEM LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 -

 

$

 -

 

$

201 

 

$

2,004 

 

$

19,307 

 

$

18,842 

 

$

22,220 

Commercial real estate

 

22,362 

 

 

20,375 

 

 

24,672 

 

 

26,108 

 

 

40,623 

 

 

60,559 

 

 

64,257 

Commercial

 

7,366 

 

 

14,519 

 

 

14,016 

 

 

5,842 

 

 

4,090 

 

 

4,299 

 

 

4,807 

One-to-four family residential

 

79 

 

 

80 

 

 

81 

 

 

83 

 

 

355 

 

 

475 

 

 

481 

Total potential problem loans

$

29,807 

 

$

34,974 

 

$

38,970 

 

$

34,037 

 

$

64,375 

 

$

84,175 

 

$

91,765 

POTENTIAL PROBLEM LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

23,597 

 

$

23,231 

 

$

26,713 

 

$

24,950 

 

$

23,895 

 

$

23,887 

 

$

29,208 

Texas banking

 

4,086 

 

 

9,180 

 

 

9,541 

 

 

6,283 

 

 

38,586 

 

 

57,044 

 

 

58,361 

Kansas banking

 

2,124 

 

 

2,563 

 

 

2,716 

 

 

2,804 

 

 

1,894 

 

 

3,244 

 

 

4,196 

Total potential problem loans

$

29,807 

 

$

34,974 

 

$

38,970 

 

$

34,037 

 

$

64,375 

 

$

84,175 

 

$

91,765 

ALLOWANCE ACTIVITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

26,219 

 

$

27,250 

 

$

28,452 

 

$

30,917 

 

$

33,083 

 

$

34,925 

 

$

36,663 

Charge offs

 

226 

 

 

325 

 

 

230 

 

 

377 

 

 

1,156 

 

 

1,991 

 

 

3,392 

Recoveries

 

577 

 

 

430 

 

 

915 

 

 

298 

 

 

1,887 

 

 

504 

 

 

2,640 

Net charge offs (recoveries)

 

(351)

 

 

(105)

 

 

(685)

 

 

79 

 

 

(731)

 

 

1,487 

 

 

752 

Provision (credit) for loan losses

 

23 

 

 

(1,136)

 

 

(1,887)

 

 

(2,386)

 

 

(2,897)

 

 

(355)

 

 

(986)

Balance, end of period

$

26,593 

 

$

26,219 

 

$

27,250 

 

$

28,452 

 

$

30,917 

 

$

33,083 

 

$

34,925 

NET CHARGE OFFS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

(16)

 

$

(15)

 

$

 

$

 -

 

$

 -

 

$

 -

 

$

655 

Commercial real estate

 

24 

 

 

82 

 

 

(118)

 

 

(34)

 

 

(640)

 

 

583 

 

 

(2,243)

Commercial

 

(325)

 

 

(52)

 

 

(188)

 

 

(45)

 

 

22 

 

 

652 

 

 

2,267 

One-to-four family residential

 

(68)

 

 

(91)

 

 

(331)

 

 

84 

 

 

11 

 

 

(2)

 

 

(18)

Consumer

 

34 

 

 

(29)

 

 

(53)

 

 

74 

 

 

(124)

 

 

254 

 

 

91 

Total net charge offs (recoveries) by type

$

(351)

 

$

(105)

 

$

(685)

 

$

79 

 

$

(731)

 

$

1,487 

 

$

752 

NET CHARGE OFFS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

(86)

 

$

25 

 

$

(309)

 

$

248 

 

$

67 

 

$

763 

 

$

229 

Texas banking

 

(103)

 

 

(72)

 

 

(114)

 

 

(36)

 

 

(611)

 

 

244 

 

 

(1,586)

Kansas banking

 

(162)

 

 

(58)

 

 

(262)

 

 

(133)

 

 

(187)

 

 

480 

 

 

2,109 

Total net charge offs (recoveries) by segment

$

(351)

 

$

(105)

 

$

(685)

 

$

79 

 

$

(731)

 

$

1,487 

 

$

752 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA 
(Dollars in thousands, except per share)

Table 7


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

Sep. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.22 

 

$

0.22 

 

$

0.24 

 

$

0.30 

 

$

0.27 

 

$

0.31 

 

$

0.19 

Diluted earnings per common share

 

0.22 

 

 

0.22 

 

 

0.24 

 

 

0.30 

 

 

0.27 

 

 

0.31 

 

 

0.19 

Common dividends declared per share

 

0.06 

 

 

0.06 

 

 

0.06 

 

 

0.04 

 

 

0.04 

 

 

0.04 

 

 

0.04 

Book value per common share

 

14.57 

 

 

14.38 

 

 

14.26 

 

 

14.11 

 

 

13.90 

 

 

13.71 

 

 

13.37 

Tangible book value per share*

 

14.49 

 

 

14.29 

 

 

14.17 

 

 

14.02 

 

 

13.80 

 

 

13.61 

 

 

13.21 

COMMON STOCK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

19,901,336 

 

 

19,900,855 

 

 

19,900,350 

 

 

19,810,877 

 

 

19,793,623 

 

 

19,793,123 

 

 

19,786,206 

Less treasury shares

 

868,617 

 

 

867,310 

 

 

867,310 

 

 

617,818 

 

 

223,005 

 

 

 -

 

 

 -

Outstanding shares

 

19,032,719 

 

 

19,033,545 

 

 

19,033,040 

 

 

19,193,059 

 

 

19,570,618 

 

 

19,793,123 

 

 

19,786,206 

OTHER FINANCIAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

$

388,543 

 

$

373,260 

 

$

377,545 

 

$

365,593 

 

$

370,607 

 

$

385,873 

 

$

386,987 

Loans held for sale

 

7,024 

 

 

6,687 

 

 

9,106 

 

 

1,485 

 

 

4,368 

 

 

6,803 

 

 

5,741 

Portfolio loans

 

1,541,070 

 

 

1,442,743 

 

 

1,429,139 

 

 

1,398,506 

 

 

1,363,020 

 

 

1,344,897 

 

 

1,314,381 

Total loans

 

1,548,094 

 

 

1,449,430 

 

 

1,438,245 

 

 

1,399,991 

 

 

1,367,388 

 

 

1,351,700 

 

 

1,320,122 

Total assets

 

2,059,899 

 

 

2,031,581 

 

 

2,003,079 

 

 

1,942,034 

 

 

1,900,948 

 

 

1,885,158 

 

 

2,012,053 

Total deposits

 

1,626,250 

 

 

1,624,446 

 

 

1,616,454 

 

 

1,533,999 

 

 

1,494,946 

 

 

1,463,855 

 

 

1,605,906 

Other borrowings

 

96,801 

 

 

75,839 

 

 

58,578 

 

 

79,380 

 

 

75,884 

 

 

90,760 

 

 

85,692 

Subordinated debentures

 

46,393 

 

 

46,393 

 

 

46,393 

 

 

46,393 

 

 

46,393 

 

 

46,393 

 

 

46,393 

Total shareholders' equity

 

277,344 

 

 

273,681 

 

 

271,444 

 

 

270,786 

 

 

271,966 

 

 

271,351 

 

 

264,586 

Mortgage servicing portfolio

 

422,845 

 

 

415,961 

 

 

407,903 

 

 

410,315 

 

 

401,756 

 

 

397,339 

 

 

391,303 

INTANGIBLE ASSET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

$

1,214 

 

$

1,214 

 

$

1,214 

 

$

1,214 

 

$

1,214 

 

$

1,214 

 

$

1,214 

Core deposit intangible

 

342 

 

 

405 

 

 

467 

 

 

530 

 

 

597 

 

 

667 

 

 

1,925 

Mortgage servicing rights

 

3,631 

 

 

3,518 

 

 

3,399 

 

 

3,397 

 

 

3,269 

 

 

3,182 

 

 

3,006 

Total intangible assets

$

5,187 

 

$

5,137 

 

$

5,080 

 

$

5,141 

 

$

5,080 

 

$

5,063 

 

$

6,145 

Intangible amortization expense

$

243 

 

$

243 

 

$

168 

 

$

193 

 

$

195 

 

$

210 

 

$

183 

DEPOSIT COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

$

526,159 

 

$

515,156 

 

$

506,952 

 

$

496,128 

 

$

445,148 

 

$

427,431 

 

$

471,568 

Interest-bearing demand

 

114,877 

 

 

131,547 

 

 

140,659 

 

 

122,342 

 

 

104,807 

 

 

124,712 

 

 

132,622 

Money market accounts

 

502,028 

 

 

496,178 

 

 

488,569 

 

 

461,679 

 

 

477,614 

 

 

430,296 

 

 

440,875 

Savings accounts

 

36,163 

 

 

35,647 

 

 

34,413 

 

 

32,795 

 

 

33,398 

 

 

31,187 

 

 

47,532 

Time deposits of $100,000 or more

 

238,318 

 

 

233,105 

 

 

227,426 

 

 

198,952 

 

 

203,090 

 

 

209,059 

 

 

236,035 

Other time deposits

 

208,705 

 

 

212,813 

 

 

218,435 

 

 

222,103 

 

 

230,889 

 

 

241,170 

 

 

277,274 

Total deposits**

$

1,626,250 

 

$

1,624,446 

 

$

1,616,454 

 

$

1,533,999 

 

$

1,494,946 

 

$

1,463,855 

 

$

1,605,906 

OFFICES AND EMPLOYEES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE Employees

 

358 

 

 

361 

 

 

360 

 

 

359 

 

 

351 

 

 

364 

 

 

397 

Branches

 

23 

 

 

23 

 

 

22 

 

 

21 

 

 

21 

 

 

21 

 

 

24 

Assets per employee

$

5,754 

 

$

5,628 

 

$

5,564 

 

$

5,410 

 

$

5,416 

 

$

5,179 

 

$

5,068 

____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a Non-GAAP based financial measure.

**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)

Total deposits

$

1,626,250 

 

$

1,624,446 

 

$

1,616,454 

 

$

1,533,999 

 

$

1,494,946 

 

$

1,463,855 

 

$

1,605,906 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokered time deposits

 

10,086 

 

 

7,683 

 

 

7,694 

 

 

3,373 

 

 

2,952 

 

 

1,348 

 

 

1,347 

Other brokered deposits

 

133,025 

 

 

103,025 

 

 

83,025 

 

 

73,425 

 

 

98,425 

 

 

48,424 

 

 

3,424 

Non-brokered deposits

$

1,483,139 

 

$

1,513,738 

 

$

1,525,735 

 

$

1,457,201 

 

$

1,393,569 

 

$

1,414,083 

 

$

1,601,135 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sweep repurchase agreements

 

50,801 

 

 

50,839 

 

 

33,578 

 

 

54,380 

 

 

50,884 

 

 

65,760 

 

 

60,692 

Core funding

$

1,533,940 

 

$

1,564,577 

 

$

1,559,313 

 

$

1,511,581 

 

$

1,444,453 

 

$

1,479,843 

 

$

1,661,827 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet amounts are as of period end unless otherwise noted.

 

 


 

 

 

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA 
(Dollars in thousands)

Table 8


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

Sep. 30

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

0.81% 

 

 

0.85% 

 

 

0.92% 

 

 

1.22% 

 

 

1.12% 

 

 

1.27% 

 

 

0.75% 

Return on average common equity (annualized)

 

5.94 

 

 

6.11 

 

 

6.78 

 

 

8.62 

 

 

7.69 

 

 

9.19 

 

 

5.68 

Return on average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(annualized)*

 

5.97 

 

 

6.14 

 

 

6.82 

 

 

8.67 

 

 

7.74 

 

 

9.30 

 

 

5.75 

Net interest margin (annualized)

 

3.34 

 

 

3.31 

 

 

3.25 

 

 

3.52 

 

 

3.44 

 

 

3.50 

 

 

3.33 

Total dividends declared to net income

 

27.53 

 

 

27.45 

 

 

25.19 

 

 

12.93 

 

 

14.88 

 

 

12.86 

 

 

21.40 

Effective tax rate

 

35.84 

 

 

34.51 

 

 

37.49 

 

 

37.50 

 

 

37.49 

 

 

37.50 

 

 

37.49 

Efficiency ratio

 

68.25 

 

 

72.43 

 

 

70.47 

 

 

68.90 

 

 

71.39 

 

 

74.25 

 

 

73.61 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

15,076 

 

$

8,887 

 

$

9,151 

 

$

9,276 

 

$

15,059 

 

$

16,478 

 

$

16,085 

90 days past due and accruing

 

 

 

 -

 

 

 -

 

 

137 

 

 

 -

 

 

 -

 

 

 -

Total nonperforming loans

 

15,077 

 

 

8,887 

 

 

9,151 

 

 

9,413 

 

 

15,059 

 

 

16,478 

 

 

16,085 

Other real estate

 

2,274 

 

 

2,393 

 

 

2,255 

 

 

3,097 

 

 

3,448 

 

 

4,285 

 

 

4,654 

Total nonperforming assets

$

17,351 

 

$

11,280 

 

$

11,406 

 

$

12,510 

 

$

18,507 

 

$

20,763 

 

$

20,739 

Potential problem loans

$

29,807 

 

$

34,974 

 

$

38,970 

 

$

34,037 

 

$

64,375 

 

$

84,175 

 

$

91,765 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to portfolio loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other real estate

 

1.12% 

 

 

0.78% 

 

 

0.80% 

 

 

0.89% 

 

 

1.36% 

 

 

1.54% 

 

 

1.57% 

Nonperforming loans to portfolio loans

 

0.98 

 

 

0.62 

 

 

0.64 

 

 

0.67 

 

 

1.10 

 

 

1.23 

 

 

1.22 

Allowance for loan losses to portfolio loans

 

1.73 

 

 

1.82 

 

 

1.91 

 

 

2.03 

 

 

2.27 

 

 

2.46 

 

 

2.66 

Allowance for loan losses to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nonperforming loans

 

176.38 

 

 

295.03 

 

 

297.78 

 

 

302.26 

 

 

205.29 

 

 

200.77 

 

 

217.13 

Net loan charge-offs to average portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans (annualized)

 

(0.09)

 

 

(0.03)

 

 

(0.20)

 

 

0.02 

 

 

(0.21)

 

 

0.45 

 

 

0.24 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average assets

 

13.59% 

 

 

13.87% 

 

 

13.59% 

 

 

14.19% 

 

 

14.61% 

 

 

13.77% 

 

 

13.18% 

Leverage ratio

 

15.84 

 

 

16.12 

 

 

15.75 

 

 

16.45 

 

 

16.86 

 

 

15.95 

 

 

15.09 

Common equity tier 1 capital

 

14.57 

 

 

15.30 

 

 

15.51 

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

Tier 1 capital to risk-weighted assets

 

16.95 

 

 

17.84 

 

 

18.10 

 

 

19.70 

 

 

20.05 

 

 

20.13 

 

 

19.98 

Total capital to risk-weighted assets

 

18.21 

 

 

19.09 

 

 

19.36 

 

 

20.96 

 

 

21.34 

 

 

21.43 

 

 

21.29 

Tangible common equity to tangible assets***

 

13.40 

 

 

13.40 

 

 

13.48 

 

 

13.87 

 

 

14.23 

 

 

14.31 

 

 

13.01 

REGULATORY CAPITAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital

$

275,350 

 

$

272,048 

 

$

269,007 

 

$

n/a

 

$

n/a

 

$

n/a

 

$

n/a

Tier I capital

 

320,350 

 

 

317,048 

 

 

314,007 

 

 

314,216 

 

 

314,120 

 

 

309,600 

 

 

299,938 

Total capital

 

344,095 

 

 

339,412 

 

 

335,734 

 

 

334,348 

 

 

334,456 

 

 

329,586 

 

 

319,516 

Total risk adjusted assets

 

1,889,892 

 

 

1,777,618 

 

 

1,734,401 

 

 

1,595,032 

 

 

1,566,996 

 

 

1,537,903 

 

 

1,500,957 

Average total assets

 

2,022,972 

 

 

1,966,577 

 

 

1,993,446 

 

 

1,910,688 

 

 

1,863,127 

 

 

1,941,064 

 

 

1,987,231 

____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a Non-GAAP based financial measure.

***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure)

Total shareholders' equity

$

277,344 

 

$

273,681 

 

$

271,444 

 

$

270,786 

 

$

271,966 

 

$

271,351 

 

$

264,586 

Less goodwill and core deposit intangible

 

1,556 

 

 

1,619 

 

 

1,681 

 

 

1,744 

 

 

1,811 

 

 

1,881 

 

 

3,139 

Tangible common equity

$

275,788 

 

$

272,062 

 

$

269,763 

 

$

269,042 

 

$

270,155 

 

$

269,470 

 

$

261,447 

Total assets

$

2,059,899 

 

$

2,031,581 

 

$

2,003,079 

 

$

1,942,034 

 

$

1,900,948 

 

$

1,885,158 

 

$

2,012,053 

Less goodwill and core deposit intangible

 

1,556 

 

 

1,619 

 

 

1,681 

 

 

1,744 

 

 

1,811 

 

 

1,881 

 

 

3,139 

Tangible assets

$

2,058,343 

 

$

2,029,962 

 

$

2,001,398 

 

$

1,940,290 

 

$

1,899,137 

 

$

1,883,277 

 

$

2,008,914 

Total shareholders' equity to total assets

 

13.46% 

 

 

13.47% 

 

 

13.55% 

 

 

13.94% 

 

 

14.31% 

 

 

14.39% 

 

 

13.15% 

Tangible common equity to tangible assets

 

13.40% 

 

 

13.40% 

 

 

13.48% 

 

 

13.87% 

 

 

14.23% 

 

 

14.31% 

 

 

13.01% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet amounts and ratios are as of period end unless otherwise noted.