EX-99.1 2 oksb-20140722ex991b59d96.htm EX-99.1 ER_Q22014

 

Picture 1

 

For additional information:
           Mark W. Funke
           President & CEO
           Joe T. Shockley, Jr.
           EVP & CFO
           (405) 372-2230

For Immediate Release

Southwest Bancorp, Inc. Reports Second Quarter 2014 Results

and Announces Quarterly Dividend

July 22, 2014, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB), (“Southwest”), today reported net income for the second quarter of 2014 of $6.2 million, or $0.31 per diluted share, compared to $3.7 million, or $0.19 per diluted share, for the first quarter of 2014.  Included in the second quarter of 2014 results is a pre-tax net gain of $4.4 million from the sale of three community bank branches in Anthony, Harper, and Overland Park, Kansas.  Net income for the six months ended June 30, 2014 totaled $9.8 million, or $0.50 per diluted share, compared to $6.8 million, or $0.34 per diluted share, for the six months ended June 30, 2013.

Southwest announced that its board of directors has approved a quarterly cash dividend of $0.04 per share payable August 15, 2014 to shareholders of record as of August 1, 2014.

Mark Funke, President and CEO, stated, “The positive results of the second quarter reflect our focus on the strategic objective to grow loans, complete the sale of branches in non-strategic markets, and to continue to improve asset quality.  Our efforts produced several highlights for the quarter.   

·

The previously announced sales of three of our Kansas branches were successfully completed in the second quarter and resulted in a $4.4 million pre-tax net gain.  These sales included the sale of $27.9 million in loans and $130.6 million in deposits.

·

Loan growth in the second quarter was $59.5 million, adjusted for loans sold with the branch sales. 

·

The quarterly net interest margin improved to 3.34%  (normalized) at June 30, 2014 compared to 3.21%  (normalized) at March 31, 2014 and 3.07% at June 30, 2013. 

·

Asset quality improved as nonperforming loans stabilized and potential problem loans decreased $7.6 million, or 8%, during the second quarter.  The improved asset quality resulted in a negative provision of $0.4 million.”    

“These positive results and actions reflect the good work of our associates at Bank SNB and a growing customer base.  We will continue to focus our company on future growth through the expansion of our revenue base while prudently managing our expenses.  We are encouraged by the momentum we have throughout our company.”

   

Financial Overview

Condition:    During the quarter ended June 30, 2014, total assets of $1.9 billion decreased $126.9 million from March 31, 2014 primarily as a result of the branch sales.  Total loans of $1.4 billion increased $31.6 million from March 31, 2014 and total investment securities of $385.9 million remained flat compared to March 31, 2014.  Cash and cash equivalents at June 30, 2014 were $115.2 million, down $151.4 million from March 31, 2014, primarily due to the branch sales that occurred during the quarter. 

 

 

 

At June 30, 2014, the allowance for loan losses was $33.1 million, a decrease of $7.3 million when compared to a year ago, and a decrease of $1.8 million when compared to March 31, 2014.  The allowance for loan losses to portfolio loans was 2.46% as of June 30, 2014, compared to 3.08% as of June 30, 2013 and 2.66% as of March 31, 2014.  The allowance for loan losses to nonperforming loans was 200.77% as of June 30, 2014, compared to 123.87% as of June 30, 2013 and 217.13% as of March 31, 2014.  Subsequent to the end of the second quarter, Southwest collected a $1.3 million recovery of a prior period loan loss and a $6.8 million payoff of a related restructured potential problem loan. 

Nonperforming loans decreased by $16.1 million in a year over year comparison, and remained stable during the quarter with only an increase of  $0.4 million.  Other real estate at June 30, 2014 was $4.3 million, an increase of $2.5 million from June 30, 2013,  but a decrease of $0.4 million when compared to March 31, 2014.  Nonperforming assets were $20.8 million, or 1.54% of portfolio loans and other real estate, as of June 30, 2014, compared to $34.4 million, or 2.62% of portfolio loans and other real estate, as of June 30, 2013, 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 95% and 98% of total funding as of June 30, 2014 and March 31, 2014, respectively.  Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 5% and 2% of total funding at June 30, 2014 and March 31, 2014, 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, National Association, (“Bank SNB”), Southwest’s banking subsidiary, as of June 30, 2014, exceeded the criteria for regulatory classification as “well-capitalized”.  Southwest’s total regulatory capital was $329.6 million, for a total risk-based capital ratio of 21.43%, and Tier 1 capital was $309.6 million, for a Tier 1 risk-based capital ratio of 20.13%.  Southwest’s capital exceeded the minimum to be classified as “well-capitalized” by $175.8 million.  Bank SNB had total regulatory capital of $282.9 million, for a total risk-based capital ratio of 18.48%, and Tier 1 capital of $263.5 million, for a Tier 1 risk-based capital ratio of 17.21%.  Bank SNB exceeded the minimum to be classified as “well-capitalized” by $129.8 million.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.

 

Second Quarter Results:

Summary:    For the second quarter of 2014, net income was $6.2 million, compared to $4.4 million for the second quarter of 2013 and $3.7 million for the first quarter of 2014. 

The $1.7 million increase in our net income compared to the second quarter of 2013 was primarily the result of a $1.4 million increase in net interest income, primarily driven by lower interest expense on deposits and a reduction in interest costs due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013, and the $4.8 million increase in noninterest income, primarily driven by the pre-tax net gain on the sale of the community bank branches, offset in part by a $0.5 million decline in the negative provision for loan losses and a $2.5 million increase in noninterest expense. 

The $2.5 million increase in net income compared to the first quarter of 2014 was primarily due to the $0.6 million increase in net interest income resulting from loan growth combined with the recognition of accelerated discount accretion attributable to the sale of loans covered by the loss share agreement and the $5.2 million increase in noninterest income, which included the $4.4 million pre-tax net gain recognized on the branch sales and $0.6 million recognized on the sale of a stock that was acquired in a prior year repossession.  Partially offsetting these increases were a $0.6 million decrease in the negative provision for loan losses and a $1.2 million increase in noninterest expense.

Net Interest Income:    Net interest income totaled $16.6 million for the second quarter of 2014, compared to $15.1 million for the second  quarter of 2013,  an increase of $1.4 million, or 10%, and to $16.0 million for the first quarter of 2014,  an increase of $0.6 million, or 4%.  Net interest margin was 3.50% for the second quarter of 2014, compared to 3.07% for the second quarter of 2013 and 3.33% for the first quarter of 2014.  Included in interest income for the second quarter of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by the loss share agreement, and included in interest income for the first quarter of 2014 was $0.6 million due to the interest recognition resulting from loans returning to accrual status.  The net effects of these

 

 

 

adjustments on the net interest margin were a 16 basis point increase in the second quarter of 2014 and a 12 basis point increase in the first quarter of 2014.    Loans (including loans held for sale) increased $33.6 million, or 3%, when compared to June 30, 2013, and $31.6 million, or 2%, when compared to March 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 $0.4 million for the second quarter of 2014, compared to a negative provision of $0.9 million for the second quarter of 2013, and a negative provision of $1.0 million for the first quarter of 2014.  During the second quarter of 2014,  charge-offs totaled $2.0 million and recoveries totaled $0.5 million.  Therefore, the second quarter of 2014 net charge-offs totaled $1.5 million, or 0.45% (annualized) of average portfolio loans, compared to net charge-offs of $1.6 million, or 0.50% (annualized) of average portfolio loans for the second quarter of 2013 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 $8.2 million for the second quarter of 2014, compared to $3.5 million for the second quarter of 2013 and to $3.0 million for the first quarter of 2014.    The $4.8 million increase from second quarter 2013 included the $4.4 million recognized as the gain on sales of the community bank branches and $0.6 million gain on the sale of a stock investment that was acquired in a prior year repossession, offset in part by $0.4 million decrease in gain on sales of mortgage loans.  Excluding the gain on sale of branches, the $0.8 million increase from first quarter of 2014 included a $0.2 million increase in gain on sale of mortgage loans and a  $0.5 million increase in the gain on the sale of investment securities. 

Noninterest Expense:    Noninterest expense totaled $15.3 million for the second quarter of 2014, compared to $12.8 million for the second quarter of 2013 and to $14.1 million for the first quarter of 2014.  The $2.5 million increase in noninterest expense from second quarter of 2013 consisted of a $1.9 million increase in other real estate expense due to net gains on sales of other real estate properties recognized in the prior year, a $0.4 million increase in employee benefit expense, and a $0.4 million increase in other general and administrative expense, primarily increased legal fees and contingencies on several legal matters, offset in part by a $0.2 million decrease in the provision for unfunded loan commitments.   

The $1.2 million increase in noninterest expense from first quarter of 2014 was due to a $0.6 million increase in other general and administrative expense, primarily legal fees and contingencies and marketing expenses, a $0.4 million increase in other real estate expense due to write-downs that occurred during the second quarter, and a $0.3 million increase employee benefit expense.   

Income Tax:  Income tax expense totaled $3.7 million for the second quarter of 2014, compared to $2.2 million for the second quarter of 2013 and for the first quarter of 2014 each respectively.  The income tax expense fluctuates in relation to pre-tax income levels.  The second quarter of 2014 effective tax rate was 37.50%.

 

Year-to-date Results:

Summary:  Net income was $9.8 million as of June 30, 2014, compared to $6.8 million as of June 30, 2013.  The $3.0 million increase in net income from 2013 is the result of a $1.8 million increase in net interest income, primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013, a $1.0 million increase in the negative provision for loan losses, resulting from improved asset quality,  a $4.2 million increase in noninterest income, primarily the pre-tax net gain on sale of community bank branches, offset in part by a $2.2 million increase in noninterest expense due to decreased gains recognized on sale of other real estate properties and increased employee benefit expenses.  

Net Interest Income:    Net interest income totaled $32.6 million for the first six months of 2014, compared to $30.7 million for the first six months of 2013, an increase of $1.8 million, or 6%,  primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption the 10.5% Trust Preferred Securities in third quarter of 2013.  Year-to-date net interest margin was 3.42%, compared to 3.12% for 2013.  Included in interest income for the first six months of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by the 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  an  14 basis point increase for the first six months of 2014.  With the rate environment remaining low, earning assets are repricing at lower rates.

 

 

 

Provision 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 for the period.  The provision for loan losses was a credit (or negative) of $1.3 million for the first six months of 2014, compared to a credit of $0.4 million for the first six months of 2013.  Net charge-offs totaled $2.2 million, or 0.35% (annualized) of average portfolio loans year-to-date as of June 30, 2014, compared to $6.0 million, or 0.91% (annualized) of average portfolio loans for the same period 2013.   

Noninterest Income:  Noninterest income totaled $11.3 million for the first six months of 2014, compared to $7.0 million for the first six months of 2013.  The increase consists of the $4.4 million recognized as the pre-tax net gain on sales of the community bank branches and the $0.8 million in gain on sale of investment securities, offset in part by the $1.0 million decline in gains on sales of mortgage loans. 

Noninterest Expense:    Noninterest expense totaled $29.4 million for the first six months of 2014, compared to $27.2 million for the first six months of 2013.  The increase consists of a $1.6 million increase in other real estate expense, which is primarily due to net gains recognized during the prior year on the sale of other real estate properties, a $0.4 million increase in employee benefit expenses, a $0.3 million increase in occupancy expense, and a  $0.3 million increase in other general and administrative expense, primarily the result of increased legal fees and contingencies on several matters, offset in part by a decrease in the provision for unfunded loan commitments.

Income Tax:  Income tax expense totaled $5.9 million for the first six months of 2014, compared to $4.1 million for the first six months of 2013.  The income tax expense fluctuates in relation to pre-tax income levels.  The year-to-date effective tax rate was 37.50% as of June 30, 2014.

 

Conference Call

Southwest will host a conference call to review these results on Wednesday, July 23, 2014 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/10048892.  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/oksb140723.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 10048892.  Telephone replay access will be available until 9:00 a.m. Eastern Time on August 20, 2014.

 

Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, National Association (“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 June 30, 2014,  Southwest had total assets of $1.9 billion, deposits of $1.5 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 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 June 30, 2014, approximately $398.7 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: 

·

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;

·

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, 2013.  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 June 30, 2014 through the date its financial statements are filed with the Securities and Exchange Commission.  The June 30, 2014 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

First Quarter

QUARTERLY HIGHLIGHTS

 

2014

2013

 

% Change

 

2014

 

% Change

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$
16,574 

 

$
15,134 

 
10% 

 

$
16,001 

 
4% 

Provision for loan losses

 

 
(355)

 

 
(876)

 
(59)

 

 
(986)

 
(64)

Noninterest income

 

 
8,246 

 

 
3,491 

 
136 

 

 
3,025 

 
173 

Noninterest expense

 

 
15,332 

 

 
12,839 

 
19 

 

 
14,107 

 
9 

Income before taxes

 

 
9,843 

 

 
6,662 

 
48 

 

 
5,905 

 
67 

Taxes on income

 

 
3,691 

 

 
2,248 

 
64 

 

 
2,214 

 
67 

Net income

 

 
6,152 

 

 
4,414 

 
39 

 

 
3,691 

 
67 

Diluted earnings per share

 

 
0.31 

 

 
0.22 

 
41 

 

 
0.19 

 
63 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 
1,885,158 

 

 
2,031,962 

 
(7)

 

 
2,012,053 

 
(6)

Loans held for sale

 

 
6,803 

 

 
7,217 

 
(6)

 

 
5,741 

 
18 

Portfolio loans

 

 
1,344,897 

 

 
1,310,872 

 
3 

 

 
1,314,381 

 
2 

Total deposits

 

 
1,463,855 

 

 
1,615,961 

 
(9)

 

 
1,605,906 

 
(9)

Total shareholders' equity

 

 
271,351 

 

 
249,420 

 
9 

 

 
264,586 

 
3 

Book value per common share

 

 
13.71 

 

 
12.67 

 
8 

 

 
13.37 

 
3 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 
3.50% 

 

 
3.07% 

 

 

 

 
3.33% 

 

 

Efficiency ratio

 

 
61.77 

 

 
68.93 

 

 

 

 
74.15 

 

 

Total capital to risk-weighted assets

 

 
21.43 

 

 
23.78 

 

 

 

 
21.29 

 

 

Nonperforming loans to portfolio loans

 

 
1.23 

 

 
2.49 

 

 

 

 
1.22 

 

 

Shareholders' equity to total assets

 

 
14.39 

 

 
12.27 

 

 

 

 
13.15 

 

 

Tangible common equity to tangible assets*

 

 
14.34 

 

 
12.22 

 

 

 

 
13.10 

 

 

Return on average assets (annualized)

 

 
1.27 

 

 
0.87 

 

 

 

 
0.75 

 

 

Return on average common equity (annualized)

 

 
9.19 

 

 
7.00 

 

 

 

 
5.68 

 

 

Return on average tangible common equity (annualized)**

 

 
9.24 

 

 
7.03 

 

 

 

 
5.71 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months

 

 

 

 

 

YEAR-TO-DATE  HIGHLIGHTS

 

2014

 

2013

 

% Change

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$
32,575 

 

$
30,740 

 
6% 

 

 

 

 

 

Provision for loan losses

 

 
(1,341)

 

 
(378)

 
255 

 

 

 

 

 

Noninterest income

 

 
11,271 

 

 
7,028 

 
60 

 

 

 

 

 

Noninterest expense

 

 
29,439 

 

 
27,227 

 
8 

 

 

 

 

 

Income before taxes

 

 
15,748 

 

 
10,919 

 
44 

 

 

 

 

 

Taxes on income

 

 
5,905 

 

 
4,116 

 
43 

 

 

 

 

 

Net income

 

 
9,843 

 

 
6,803 

 
45 

 

 

 

 

 

Diluted earnings per share

 

 
0.50 

 

 
0.34 

 
47 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 
1,885,158 

 

 
2,031,962 

 
(7)

 

 

 

 

 

Loans held for sale

 

 
6,803 

 

 
7,217 

 
(6)

 

 

 

 

 

Portfolio loans

 

 
1,344,897 

 

 
1,310,872 

 
3 

 

 

 

 

 

Total deposits

 

 
1,463,855 

 

 
1,615,961 

 
(9)

 

 

 

 

 

Total shareholders' equity

 

 
271,351 

 

 
249,420 

 
9 

 

 

 

 

 

Book value per common share

 

 
13.71 

 

 
12.67 

 
8 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 
3.42% 

 

 
3.12% 

 

 

 

 

 

 

 

Efficiency ratio

 

 
67.14 

 

 
72.09 

 

 

 

 

 

 

 

Total capital to risk-weighted assets

 

 
21.43 

 

 
23.78 

 

 

 

 

 

 

 

Nonperforming loans to portfolio loans

 

 
1.23 

 

 
2.49 

 

 

 

 

 

 

 

Shareholders' equity to total assets

 

 
14.39 

 

 
12.27 

 

 

 

 

 

 

 

Tangible common equity to tangible assets*

 

 
14.34 

 

 
12.22 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 
1.01 

 

 
0.66 

 

 

 

 

 

 

 

Return on average common equity (annualized)

 

 
7.47 

 

 
5.46 

 

 

 

 

 

 

 

Return on average tangible common equity (annualized)**

 

 
7.50 

 

 
5.49 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

June 30,

 

2014

 

2013

 

2013

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

$
28,369 

 

$
28,062 

 

$
32,137 

Interest-bearing deposits

 
86,785 

 

 
251,777 

 

 
266,835 

Cash and cash equivalents

 
115,154 

 

 
279,839 

 

 
298,972 

Securities held to maturity (fair values of $11,286, $12,115, and $12,188, respectively)

 
10,682 

 

 
11,720 

 

 
11,758 

Securities available for sale (amortized cost of $373,609, $385,423, and $361,397, respectively)

 
375,191 

 

 
382,479 

 

 
360,645 

Loans held for sale

 
6,803 

 

 
3,060 

 

 
7,217 

Loans receivable (includes loss share of $606, $1,812, and $5,062, respectively)

 
1,344,897 

 

 
1,267,843 

 

 
1,310,872 

Less: Allowance for loan losses

 
(33,083)

 

 
(36,663)

 

 
(40,352)

Net loans receivable

 
1,311,814 

 

 
1,231,180 

 

 
1,270,520 

Accrued interest receivable

 
4,636 

 

 
5,335 

 

 
6,067 

Derivative asset

 
121 

 

 

 -

 

 

 -

Premises and equipment, net

 
19,096 

 

 
20,833 

 

 
21,063 

Other real estate

 
4,285 

 

 
2,654 

 

 
1,811 

Goodwill

 
1,214 

 

 
1,214 

 

 
1,214 

Other intangible assets, net

 
3,849 

 

 
4,980 

 

 
4,981 

Other assets

 
32,313 

 

 
38,129 

 

 
47,714 

Total assets

$
1,885,158 

 

$
1,981,423 

 

$
2,031,962 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$
427,431 

 

$
444,796 

 

$
412,176 

Interest-bearing demand

 
124,712 

 

 
120,156 

 

 
138,502 

Money market accounts

 
430,296 

 

 
439,981 

 

 
408,145 

Savings accounts

 
31,187 

 

 
41,727 

 

 
38,611 

Time deposits of $100,000 or more

 
209,059 

 

 
251,185 

 

 
295,179 

Other time deposits

 
241,170 

 

 
286,241 

 

 
323,348 

Total deposits

 
1,463,855 

 

 
1,584,086 

 

 
1,615,961 

Accrued interest payable

 
772 

 

 
832 

 

 
1,020 

Derivative liability

 
121 

 

 

 -

 

 

 -

Other liabilities

 
11,906 

 

 
10,293 

 

 
9,264 

Other borrowings

 
90,760 

 

 
80,632 

 

 
74,334 

Subordinated debentures

 
46,393 

 

 
46,393 

 

 
81,963 

Total liabilities 

 
1,613,807 

 

 
1,722,236 

 

 
1,782,542 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

19,793,123, 19,732,926, and 19,692,606 shares issued and outstanding, respectively

 
19,793 

 

 
19,733 

 

 
19,693 

Additional paid-in capital

 
100,962 

 

 
99,937 

 

 
99,342 

Retained earnings

 
150,789 

 

 
142,528 

 

 
131,896 

Accumulated other comprehensive loss

 
(193)

 

 
(3,011)

 

 
(1,511)

Total shareholders' equity

 
271,351 

 

 
259,187 

 

 
249,420 

Total liabilities and shareholders' equity

$
1,885,158 

 

$
1,981,423 

 

$
2,031,962 

 

 

 

 

 

 

 

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

Table 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months

 

June 30,

 

 

March 31,

 

June 30,

 

ended June 30,

 

2014

 

2014

 

2013

 

2014

 

2013

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$
16,343 

 

$
15,775 

 

$
16,415 

 

$
32,118 

 

$
33,421 

Investment securities

 
1,628 

 

 
1,650 

 

 
1,594 

 

 
3,278 

 

 
3,285 

Other interest-earning assets

 
314 

 

 
375 

 

 
255 

 

 
689 

 

 
495 

Total interest income

 
18,285 

 

 
17,800 

 

 
18,264 

 

 
36,085 

 

 
37,201 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 
931 

 

 
1,025 

 

 
1,442 

 

 
1,956 

 

 
3,094 

Other borrowings

 
223 

 

 
225 

 

 
222 

 

 
448 

 

 
442 

Subordinated debentures

 
557 

 

 
549 

 

 
1,466 

 

 
1,106 

 

 
2,925 

Total interest expense

 
1,711 

 

 
1,799 

 

 
3,130 

 

 
3,510 

 

 
6,461 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 
16,574 

 

 
16,001 

 

 
15,134 

 

 
32,575 

 

 
30,740 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 
(355)

 

 
(986)

 

 
(876)

 

 
(1,341)

 

 
(378)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 
16,929 

 

 
16,987 

 

 
16,010 

 

 
33,916 

 

 
31,118 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 
2,608 

 

 
2,596 

 

 
2,607 

 

 
5,204 

 

 
5,267 

Gain on sale of branches, net

 
4,378 

 

 

 -

 

 

 -

 

 
4,378 

 

 

 -

Gain on sales of mortgage loans

 
463 

 

 
224 

 

 
831 

 

 
687 

 

 
1,645 

Gain on sale/call of investment securities, net

 
629 

 

 
135 

 

 

 -

 

 
764 

 

 

 -

Other noninterest income

 
168 

 

 
70 

 

 
53 

 

 
238 

 

 
116 

Total noninterest income

 
8,246 

 

 
3,025 

 

 
3,491 

 

 
11,271 

 

 
7,028 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 
8,472 

 

 
8,126 

 

 
8,039 

 

 
16,598 

 

 
16,175 

Occupancy

 
2,783 

 

 
2,769 

 

 
2,679 

 

 
5,552 

 

 
5,253 

FDIC and other insurance

 
314 

 

 
397 

 

 
400 

 

 
711 

 

 
891 

Other real estate, net

 
511 

 

 
68 

 

 
(1,394)

 

 
579 

 

 
(1,041)

General and administrative

 
3,252 

 

 
2,747 

 

 
3,115 

 

 
5,999 

 

 
5,949 

Total noninterest expense

 
15,332 

 

 
14,107 

 

 
12,839 

 

 
29,439 

 

 
27,227 

Income before taxes

 
9,843 

 

 
5,905 

 

 
6,662 

 

 
15,748 

 

 
10,919 

Taxes on income

 
3,691 

 

 
2,214 

 

 
2,248 

 

 
5,905 

 

 
4,116 

Net income

$
6,152 

 

$
3,691 

 

$
4,414 

 

$
9,843 

 

$
6,803 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$
0.31 

 

$
0.19 

 

$
0.22 

 

$
0.50 

 

$
0.34 

Diluted earnings per common share

 
0.31 

 

 
0.19 

 

 
0.22 

 

 
0.50 

 

 
0.34 

Common dividends declared per share

 
0.04 

 

 
0.04 

 

 

 -

 

 
0.08 

 

 

 -

 

 

 

 

 

 

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

Table 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

June 30, 2014

 

March 31, 2014

 

June 30, 2013

 

Average

 

Average

 

Average

 

Average

 

Average

 

Average

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$
1,331,126 

 
4.92% 

 

$
1,278,332 

 
5.00% 

 

$
1,318,950 

 
4.99% 

Investment securities

 
384,395 

 
1.70 

 

 
388,639 

 
1.72 

 

 
374,353 

 
1.71 

Other interest-earning assets

 
183,378 

 
0.69 

 

 
280,327 

 
0.54 

 

 
282,067 

 
0.36 

Total interest-earning assets

 
1,898,899 

 
3.86 

 

 
1,947,298 

 
3.71 

 

 
1,975,370 

 
3.71 

Other assets

 
49,829 

 

 

 

 
50,247 

 

 

 

 
63,390 

 

 

Total assets

$
1,948,728 

 

 

 

$
1,997,545 

 

 

 

$
2,038,760 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$
130,232 

 
0.12% 

 

$
134,760 

 
0.12% 

 

$
126,250 

 
0.12% 

Money market accounts

 
421,001 

 
0.13 

 

 
436,763 

 
0.14 

 

 
420,477 

 
0.18 

Savings accounts

 
43,124 

 
0.10 

 

 
44,764 

 
0.10 

 

 
38,833 

 
0.12 

Time deposits

 
493,805 

 
0.60 

 

 
531,071 

 
0.63 

 

 
633,647 

 
0.76 

Total interest-bearing deposits

 
1,088,162 

 
0.34 

 

 
1,147,358 

 
0.36 

 

 
1,219,207 

 
0.47 

Other borrowings

 
85,682 

 
1.04 

 

 
80,806 

 
1.13 

 

 
71,857 

 
1.24 

Subordinated debentures

 
46,393 

 
4.81 

 

 
46,393 

 
4.73 

 

 
81,963 

 
7.15 

Total interest-bearing liabilities

 
1,220,237 

 
0.56 

 

 
1,274,557 

 
0.57 

 

 
1,373,027 

 
0.91 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 
449,364 

 

 

 

 
449,128 

 

 

 

 
402,224 

 

 

Other liabilities

 
10,751 

 

 

 

 
10,489 

 

 

 

 
10,561 

 

 

Shareholders' equity

 
268,376 

 

 

 

 
263,371 

 

 

 

 
252,948 

 

 

Total liabilities and shareholders' equity

$
1,948,728 

 

 

 

$
1,997,545 

 

 

 

$
2,038,760 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 
3.30% 

 

 

 

 
3.14% 

 

 

 

 
2.80% 

Net interest margin (1)

 

 

 
3.50% 

 

 

 

 
3.33% 

 

 

 

 
3.07% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 
155.62% 

 

 

 

 
152.78% 

 

 

 

 
143.87% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Table 5

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30,

 

2014

 

2013

 

Average

 

Average

 

Average

 

Average

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

Loans

$
1,304,876 

 
4.96% 

 

$
1,337,111 

 
5.04% 

Investment securities

 
386,506 

 
1.71 

 

 
377,422 

 
1.76 

Other interest-earning assets

 
231,584 

 
0.60 

 

 
275,269 

 
0.36 

Total interest-earning assets

 
1,922,966 

 
3.78 

 

 
1,989,802 

 
3.77 

Other assets

 
50,036 

 

 

 

 
75,423 

 

 

Total assets

$
1,973,002 

 

 

 

$
2,065,225 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$
132,483 

 
0.12% 

 

$
129,905 

 
0.13% 

Money market accounts

 
428,839 

 
0.13 

 

 
420,058 

 
0.20 

Savings accounts

 
43,939 

 
0.10 

 

 
38,777 

 
0.12 

Time deposits

 
512,335 

 
0.62 

 

 
658,266 

 
0.78 

Total interest-bearing deposits

 
1,117,596 

 
0.35 

 

 
1,247,006 

 
0.50 

Other borrowings

 
83,258 

 
1.09 

 

 
70,798 

 
1.26 

Subordinated debentures

 
46,393 

 
4.77 

 

 
81,963 

 
7.14 

Total interest-bearing liabilities

 
1,247,247 

 
0.57 

 

 
1,399,767 

 
0.93 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 
449,247 

 

 

 

 
402,882 

 

 

Other liabilities

 
10,621 

 

 

 

 
11,418 

 

 

Shareholders' equity

 
265,887 

 

 

 

 
251,158 

 

 

Total liabilities and shareholders' equity

$
1,973,002 

 

 

 

$
2,065,225 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 
3.21% 

 

 

 

 
2.84% 

Net interest margin (1)

 

 

 
3.42% 

 

 

 

 
3.12% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 
154.18% 

 

 

 

 
142.15% 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

LOAN COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$
769,021 

 

$
766,178 

 

$
752,279 

 

$
757,435 

 

$
802,138 

 

$
836,843 

One-to-four family residential

 
79,542 

 

 
84,619 

 

 
83,988 

 

 
84,645 

 

 
81,698 

 

 
78,369 

Real estate construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 
166,981 

 

 
166,007 

 

 
143,848 

 

 
163,307 

 

 
159,227 

 

 
139,829 

One-to-four family residential

 
8,359 

 

 
6,629 

 

 
4,646 

 

 
4,464 

 

 
5,241 

 

 
5,015 

Commercial

 
300,163 

 

 
266,311 

 

 
255,058 

 

 
264,565 

 

 
237,221 

 

 
233,939 

Installment and consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed student loans

 
4,282 

 

 
4,318 

 

 
4,394 

 

 
4,471 

 

 
4,520 

 

 
4,576 

Other

 
23,352 

 

 
26,060 

 

 
26,690 

 

 
27,738 

 

 
28,044 

 

 
28,644 

Total loans, including held for sale

 
1,351,700 

 

 
1,320,122 

 

 
1,270,903 

 

 
1,306,625 

 

 
1,318,089 

 

 
1,327,215 

Less allowance for loan losses

 
(33,083)

 

 
(34,925)

 

 
(36,663)

 

 
(40,081)

 

 
(40,352)

 

 
(42,853)

Total loans, net

$
1,318,617 

 

$
1,285,197 

 

$
1,234,240 

 

$
1,266,544 

 

$
1,277,737 

 

$
1,284,362 

LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$
773,665 

 

$
754,698 

 

$
681,999 

 

$
681,749 

 

$
656,356 

 

$
628,747 

Texas banking

 
408,385 

 

 
372,018 

 

 
366,697 

 

 
414,433 

 

 
444,327 

 

 
495,815 

Kansas banking

 
145,248 

 

 
170,720 

 

 
198,992 

 

 
206,802 

 

 
210,189 

 

 
195,355 

Subtotal

 
1,327,298 

 

 
1,297,436 

 

 
1,247,688 

 

 
1,302,984 

 

 
1,310,872 

 

 
1,319,917 

Mortgage banking

 
24,402 

 

 
22,686 

 

 
23,215 

 

 
3,641 

 

 
7,217 

 

 
7,298 

Total loans

$
1,351,700 

 

$
1,320,122 

 

$
1,270,903 

 

$
1,306,625 

 

$
1,318,089 

 

$
1,327,215 

NONPERFORMING LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$
82 

 

$
80 

 

$
2,721 

 

$
5,789 

 

$
6,119 

 

$
6,539 

Commercial real estate

 
7,613 

 

 
7,541 

 

 
7,766 

 

 
15,378 

 

 
15,112 

 

 
15,975 

Commercial

 
7,484 

 

 
7,992 

 

 
8,819 

 

 
10,991 

 

 
10,790 

 

 
11,940 

One-to-four family residential

 
1,180 

 

 
470 

 

 
513 

 

 
467 

 

 
492 

 

 
701 

Consumer

 
119 

 

 
2 

 

 
53 

 

 
55 

 

 
64 

 

 
74 

Total nonperforming loans

$
16,478 

 

$
16,085 

 

$
19,872 

 

$
32,680 

 

$
32,577 

 

$
35,229 

NONPERFORMING LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$
7,149 

 

$
7,056 

 

$
5,547 

 

$
3,279 

 

$
1,678 

 

$
2,000 

Texas banking

 
5,636 

 

 
5,793 

 

 
11,902 

 

 
24,963 

 

 
26,294 

 

 
28,817 

Kansas banking

 
3,693 

 

 
3,236 

 

 
2,423 

 

 
4,438 

 

 
4,605 

 

 
4,412 

Total nonperforming loans

$
16,478 

 

$
16,085 

 

$
19,872 

 

$
32,680 

 

$
32,577 

 

$
35,229 

OTHER REAL ESTATE BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$
2,130 

 

$
2,130 

 

$
130 

 

$
1,333 

 

$
972 

 

$
1,389 

Commercial real estate

 
2,155 

 

 
2,524 

 

 
2,524 

 

 
360 

 

 
839 

 

 
10,276 

Total other real estate

$
4,285 

 

$
4,654 

 

$
2,654 

 

$
1,693 

 

$
1,811 

 

$
11,665 

OTHER REAL ESTATE BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$
1,980 

Texas banking

 
2,000 

 

 
2,000 

 

 

 -

 

 

 -

 

 

 -

 

 
7,227 

Kansas banking

 
2,285 

 

 
2,654 

 

 
2,654 

 

 
1,693 

 

 
1,811 

 

 
2,458 

Total other real estate

$
4,285 

 

$
4,654 

 

$
2,654 

 

$
1,693 

 

$
1,811 

 

$
11,665 

Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Table 6
Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

POTENTIAL PROBLEM LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$
18,842 

 

$
22,220 

 

$
21,501 

 

 
22,222 

 

$
20,745 

 

$
19,968 

Commercial real estate

 
60,559 

 

 
64,257 

 

 
70,654 

 

 
64,505 

 

 
65,518 

 

 
64,287 

Commercial

 
4,299 

 

 
4,807 

 

 
7,107 

 

 
10,028 

 

 
10,136 

 

 
8,220 

One-to-four family residential

 
475 

 

 
481 

 

 
488 

 

 
414 

 

 
1,071 

 

 
1,157 

Total potential problem loans

$
84,175 

 

$
91,765 

 

$
99,750 

 

$
97,169 

 

$
97,470 

 

$
93,632 

POTENTIAL PROBLEM LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$
23,887 

 

$
29,208 

 

$
29,005 

 

$
31,345 

 

$
31,495 

 

$
32,246 

Texas banking

 
57,044 

 

 
58,361 

 

 
65,079 

 

 
59,561 

 

 
58,710 

 

 
51,978 

Kansas banking

 
3,244 

 

 
4,196 

 

 
5,666 

 

 
6,263 

 

 
7,265 

 

 
9,408 

Total potential problem loans

$
84,175 

 

$
91,765 

 

$
99,750 

 

$
97,169 

 

$
97,470 

 

$
93,632 

LOANS OUT OF MARKET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net balance of loans out of market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

$
14,984 

 

$
15,348 

 

$
19,458 

 

$
30,516 

 

$
31,564 

 

$
33,017 

Kentucky

 
14,273 

 

 
13,415 

 

 
12,404 

 

 
10,088 

 

 
11,860 

 

 
10,144 

North Carolina

 
13,323 

 

 
13,494 

 

 
13,070 

 

 
10,161 

 

 
300 

 

 
407 

Colorado

 
13,269 

 

 
13,705 

 

 
12,553 

 

 
12,358 

 

 
8,586 

 

 
3,067 

Iowa

 
11,501 

 

 
22,178 

 

 
22,316 

 

 
22,438 

 

 
22,537 

 

 
22,659 

California

 
9,527 

 

 
8,869 

 

 
9,154 

 

 
9,472 

 

 
9,632 

 

 
10,866 

Mississippi

 
8,582 

 

 
8,712 

 

 
8,823 

 

 
8,929 

 

 
9,233 

 

 
9,170 

Montana

 
6,722 

 

 
471 

 

 
514 

 

 
519 

 

 
566 

 

 
570 

Tennessee

 
6,555 

 

 
6,684 

 

 
6,048 

 

 
6,136 

 

 
6,171 

 

 
6,246 

Ohio

 
4,142 

 

 
3,862 

 

 
3,549 

 

 
3,294 

 

 
4,759 

 

 
4,132 

Other

 
10,011 

 

 
9,452 

 

 
14,766 

 

 
27,342 

 

 
30,100 

 

 
27,759 

Total loans out of market

$
112,889 

 

$
116,190 

 

$
122,655 

 

$
141,253 

 

$
135,308 

 

$
128,037 

Nonperforming loans out of market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

$
5,381 

 

$
5,441 

 

$
9,302 

 

$
11,205 

 

$
12,167 

 

$
13,419 

New Jersey

 
594 

 

 
1,094 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

New York

 

 -

 

 

 -

 

 

 -

 

 
1,033 

 

 
1,048 

 

 

 -

Florida

 
240 

 

 
246 

 

 
252 

 

 
258 

 

 
264 

 

 
270 

Colorado

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
131 

Other

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
1 

 

 

 -

Total nonperforming out of market

$
6,215 

 

$
6,781 

 

$
9,554 

 

$
12,496 

 

$
13,480 

 

$
13,820 

Potential problem loans out of market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Iowa

$
11,414 

 

$
11,490 

 

$
11,568 

 

$
11,645 

 

$
11,719 

 

$
11,792 

Arizona

 
1,152 

 

 
1,167 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

California

 
461 

 

 
474 

 

 
482 

 

 
499 

 

 
512 

 

 
524 

Florida

 
58 

 

 
62 

 

 
66 

 

 
71 

 

 
75 

 

 
80 

New Jersey

 

 -

 

 

 -

 

 
1,094 

 

 
1,170 

 

 
1,244 

 

 

 -

Total potential problem loans out of market

$
13,085 

 

$
13,193 

 

$
13,210 

 

$
13,385 

 

$
13,550 

 

$
12,396 

Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Table 6
Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

ALLOWANCE ACTIVITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$
34,925 

 

$
36,663 

 

$
40,081 

 

$
40,352 

 

$
42,853 

 

$
46,718 

Charge offs

 
1,991 

 

 
3,392 

 

 
2,681 

 

 
600 

 

 
2,072 

 

 
4,651 

Recoveries

 
504 

 

 
2,640 

 

 
5,765 

 

 
658 

 

 
447 

 

 
288 

Net charge offs (recoveries)

 
1,487 

 

 
752 

 

 
(3,084)

 

 
(58)

 

 
1,625 

 

 
4,363 

Provision for loan losses

 
(355)

 

 
(986)

 

 
(6,502)

 

 
(329)

 

 
(876)

 

 
498 

Balance, end of period

$
33,083 

 

$
34,925 

 

$
36,663 

 

$
40,081 

 

$
40,352 

 

$
42,853 

NET CHARGE OFFS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 -

 

$
655 

 

$
(4,845)

 

 
(20)

 

$
111 

 

$
(19)

Commercial real estate

 
583 

 

 
(2,243)

 

 
(62)

 

 
274 

 

 
7 

 

 
416 

Commercial

 
652 

 

 
2,267 

 

 
1,883 

 

 
(169)

 

 
1,085 

 

 
3,751 

One-to-four family residential

 
(2)

 

 
(18)

 

 
(40)

 

 
(165)

 

 
363 

 

 
167 

Consumer

 
254 

 

 
91 

 

 
(20)

 

 
22 

 

 
59 

 

 
48 

Total net charge offs (recoveries) by type

$
1,487 

 

$
752 

 

$
(3,084)

 

$
(58)

 

$
1,625 

 

$
4,363 

NET CHARGE OFFS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$
763 

 

$
229 

 

$
(1,294)

 

$
(203)

 

$
200 

 

$
589 

Texas banking

 
244 

 

 
(1,586)

 

 
(2,314)

 

 
(80)

 

 
1,356 

 

 
3,241 

Kansas banking

 
480 

 

 
2,109 

 

 
524 

 

 
225 

 

 
69 

 

 
533 

Total net charge offs (recoveries) by segment

$
1,487 

 

$
752 

 

$
(3,084)

 

$
(58)

 

$
1,625 

 

$
4,363 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Table 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$
0.31 

 

$
0.19 

 

$
0.35 

 

$
0.19 

 

$
0.22 

 

$
0.12 

Diluted earnings per common share

 
0.31 

 

 
0.19 

 

 
0.35 

 

 
0.19 

 

 
0.22 

 

 
0.12 

Common dividends declared per share

 
0.04 

 

 
0.04 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Book value per common share

 
13.71 

 

 
13.37 

 

 
13.13 

 

 
12.83 

 

 
12.67 

 

 
12.72 

Tangible book value per share*

 
13.65 

 

 
13.31 

 

 
13.07 

 

 
12.77 

 

 
12.60 

 

 
12.66 

COMMON STOCK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued and outstanding

 
19,793,123 

 

 
19,786,206 

 

 
19,732,926 

 

 
19,703,313 

 

 
19,692,606 

 

 
19,692,038 

OTHER FINANCIAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

$
385,873 

 

$
386,987 

 

$
394,199 

 

$
382,001 

 

$
372,403 

 

$
365,605 

Loans held for sale

 
6,803 

 

 
5,741 

 

 
3,060 

 

 
3,641 

 

 
7,217 

 

 
7,297 

Portfolio loans

 
1,344,897 

 

 
1,314,381 

 

 
1,267,843 

 

 
1,302,984 

 

 
1,310,872 

 

 
1,319,918 

Total loans

 
1,351,700 

 

 
1,320,122 

 

 
1,270,903 

 

 
1,306,625 

 

 
1,318,089 

 

 
1,327,215 

Total assets

 
1,885,158 

 

 
2,012,053 

 

 
1,981,423 

 

 
1,972,367 

 

 
2,031,962 

 

 
2,091,694 

Total deposits

 
1,463,855 

 

 
1,605,906 

 

 
1,584,086 

 

 
1,583,791 

 

 
1,615,961 

 

 
1,677,668 

Other borrowings

 
90,760 

 

 
85,692 

 

 
80,632 

 

 
78,663 

 

 
74,334 

 

 
70,872 

Subordinated debentures

 
46,393 

 

 
46,393 

 

 
46,393 

 

 
46,393 

 

 
81,963 

 

 
81,963 

Total shareholders' equity

 
271,351 

 

 
264,586 

 

 
259,187 

 

 
252,802 

 

 
249,420 

 

 
250,509 

Mortgage servicing portfolio

 
397,339 

 

 
391,303 

 

 
390,732 

 

 
383,400 

 

 
368,825 

 

 
356,032 

INTANGIBLE ASSET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

$
1,214 

 

$
1,214 

 

$
1,214 

 

$
1,214 

 

$
1,214 

 

$
1,214 

Core deposit intangible

 
667 

 

 
1,925 

 

 
2,058 

 

 
2,185 

 

 
2,306 

 

 
2,424 

Mortgage servicing rights

 
3,182 

 

 
3,006 

 

 
2,922 

 

 
2,837 

 

 
2,675 

 

 
2,445 

Total intangible assets

$
5,063 

 

$
6,145 

 

$
6,194 

 

$
6,236 

 

$
6,195 

 

$
6,083 

Intangible amortization expense

$
210 

 

$
183 

 

$
278 

 

$
314 

 

$
313 

 

$
410 

DEPOSIT COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

$
427,431 

 

$
471,568 

 

$
444,796 

 

$
436,904 

 

$
412,176 

 

$
416,979 

Interest-bearing demand

 
124,712 

 

 
132,622 

 

 
120,156 

 

 
106,176 

 

 
138,502 

 

 
125,914 

Money market accounts

 
430,296 

 

 
440,875 

 

 
439,981 

 

 
423,720 

 

 
408,145 

 

 
437,629 

Savings accounts

 
31,187 

 

 
47,532 

 

 
41,727 

 

 
39,727 

 

 
38,611 

 

 
39,733 

Time deposits of $100,000 or more

 
209,059 

 

 
236,035 

 

 
251,185 

 

 
270,916 

 

 
295,179 

 

 
317,270 

Other time deposits

 
241,170 

 

 
277,274 

 

 
286,241 

 

 
306,348 

 

 
323,348 

 

 
340,143 

Total deposits**

$
1,463,855 

 

$
1,605,906 

 

$
1,584,086 

 

$
1,583,791 

 

$
1,615,961 

 

$
1,677,668 

OFFICES AND EMPLOYEES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE Employees

 
364 

 

 
397 

 

 
402 

 

 
407 

 

 
408 

 

 
412 

Branches

 
21 

 

 
24 

 

 
23 

 

 
23 

 

 
22 

 

 
22 

Assets per employee

$
5,179 

 

$
5,068 

 

$
4,929 

 

$
4,846 

 

$
4,980 

 

$
5,077 

____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a Non-GAAP based financial measure.

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

Total deposits

$
1,463,855 

 

$
1,605,906 

 

$
1,584,086 

 

$
1,583,791 

 

$
1,615,961 

 

$
1,677,668 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokered time deposits

 
1,348 

 

 
1,347 

 

 
1,347 

 

 
1,343 

 

 
4,904 

 

 
5,760 

Other brokered deposits

 
48,424 

 

 
3,424 

 

 
3,423 

 

 
3,423 

 

 
3,422 

 

 
3,422 

Non-brokered deposits

$
1,414,083 

 

$
1,601,135 

 

$
1,579,316 

 

$
1,579,025 

 

$
1,607,635 

 

$
1,668,486 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sweep repurchase agreements

 
65,760 

 

 
60,692 

 

 
55,631 

 

 
53,663 

 

 
49,334 

 

 
45,872 

Core funding

$
1,479,843 

 

$
1,661,827 

 

$
1,634,947 

 

$
1,632,688 

 

$
1,656,969 

 

$
1,714,358 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

Table 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 
1.27% 

 

 
0.75% 

 

 
1.37% 

 

 
0.75% 

 

 
0.87% 

 

 
0.46% 

Return on average common equity (annualized)

 
9.19 

 

 
5.68 

 

 
10.59 

 

 
5.99 

 

 
7.00 

 

 
3.89 

Return on average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(annualized)*

 
9.24 

 

 
5.71 

 

 
10.64 

 

 
6.02 

 

 
7.03 

 

 
3.90 

Net interest margin (annualized)

 
3.50 

 

 
3.33 

 

 
3.42 

 

 
3.11 

 

 
3.07 

 

 
3.16 

Total dividends declared to net income

 
12.86 

 

 
21.40 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Effective tax rate

 
37.50 

 

 
37.49 

 

 
38.68 

 

 
38.01 

 

 
33.74 

 

 
43.88 

Efficiency ratio

 
61.77 

 

 
74.15 

 

 
76.45 

 

 
69.18 

 

 
68.93 

 

 
75.16 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$
16,478 

 

$
16,085 

 

$
19,819 

 

$
32,678 

 

$
32,575 

 

$
35,229 

90 days past due and accruing

 

 -

 

 

 -

 

 
53 

 

 
2 

 

 
2 

 

 

 -

Total nonperforming loans

 
16,478 

 

 
16,085 

 

 
19,872 

 

 
32,680 

 

 
32,577 

 

 
35,229 

Other real estate

 
4,285 

 

 
4,654 

 

 
2,654 

 

 
1,693 

 

 
1,811 

 

 
11,665 

Total nonperforming assets

$
20,763 

 

$
20,739 

 

$
22,526 

 

$
34,373 

 

$
34,388 

 

$
46,894 

Potential problem loans

$
84,175 

 

$
91,765 

 

$
99,750 

 

$
97,169 

 

$
97,470 

 

$
93,632 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to portfolio loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other real estate

 
1.54% 

 

 
1.57% 

 

 
1.77% 

 

 
2.63% 

 

 
2.62% 

 

 
3.52% 

Nonperforming loans to portfolio loans

 
1.23 

 

 
1.22 

 

 
1.57 

 

 
2.51 

 

 
2.49 

 

 
2.67 

Allowance for loan losses to portfolio loans

 
2.46 

 

 
2.66 

 

 
2.89 

 

 
3.08 

 

 
3.08 

 

 
3.24 

Allowance for loan losses to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nonperforming loans

 
200.77 

 

 
217.13 

 

 
184.50 

 

 
122.65 

 

 
123.87 

 

 
121.64 

Net loan charge-offs to average portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans (annualized)

 
0.45 

 

 
0.24 

 

 
(0.96)

 

 
(0.02)

 

 
0.50 

 

 
1.32 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average assets

 
13.77% 

 

 
13.18% 

 

 
12.93% 

 

 
12.53% 

 

 
12.41% 

 

 
11.92% 

Leverage ratio

 
15.95 

 

 
15.09 

 

 
14.86 

 

 
14.78 

 

 
16.10 

 

 
15.59 

Tier 1 capital to risk-weighted assets

 
20.13 

 

 
19.98 

 

 
20.28 

 

 
20.21 

 

 
22.48 

 

 
22.25 

Total capital to risk-weighted assets

 
21.43 

 

 
21.29 

 

 
21.59 

 

 
21.52 

 

 
23.78 

 

 
23.54 

Tangible common equity to tangible assets***

 
14.34 

 

 
13.10 

 

 
13.03 

 

 
12.76 

 

 
12.22 

 

 
11.93 

REGULATORY CAPITAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I capital

$
309,600 

 

$
299,938 

 

$
292,051 

 

$
296,488 

 

$
326,831 

 

$
324,659 

Total capital

 
329,586 

 

 
319,516 

 

 
310,867 

 

 
315,570 

 

 
345,717 

 

 
343,562 

Total risk adjusted assets

 
1,537,903 

 

 
1,500,957 

 

 
1,439,934 

 

 
1,466,672 

 

 
1,453,878 

 

 
1,459,465 

Average total assets

 
1,941,064 

 

 
1,987,231 

 

 
1,964,920 

 

 
2,006,525 

 

 
2,030,064 

 

 
2,082,789 

____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a Non-GAAP based financial measure.

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

Total shareholders' equity

$
271,351 

 

$
264,586 

 

$
259,187 

 

$
252,802 

 

$
249,420 

 

$
250,509 

Less goodwill

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

Tangible common equity

$
270,137 

 

$
263,372 

 

$
257,973 

 

$
251,588 

 

$
248,206 

 

$
249,295 

Total assets

$
1,885,158 

 

$
2,012,053 

 

$
1,981,423 

 

$
1,972,367 

 

$
2,031,962 

 

$
2,091,694 

Less goodwill

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

 

 
1,214 

Tangible assets

$
1,883,944 

 

$
2,010,839 

 

$
1,980,209 

 

$
1,971,153 

 

$
2,030,748 

 

$
2,090,480 

Total shareholders' equity to total assets

 
14.39% 

 

 
13.15% 

 

 
13.08% 

 

 
12.82% 

 

 
12.27% 

 

 
11.98% 

Tangible common equity to tangible assets

 
14.34% 

 

 
13.10% 

 

 
13.03% 

 

 
12.76% 

 

 
12.22% 

 

 
11.93% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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