SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 19, 2016
SOUTHWEST BANCORP, INC.
(Exact name of registrant as specified in its charter)
Oklahoma |
001-34110 |
73-1136584 |
||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
608 South Main Street, Stillwater, Oklahoma |
|
74074 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: (405) 742-1800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[X] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On January 19, 2016, Southwest Bancorp, Inc. (the “Company”) issued a press release reporting its results of operations and its financial condition for the quarter ended December 31, 2015. The text of the press release is included as Exhibit 99.1 to this Current Report on Form 8-K.
Item 8.01. Other Events.
On Wednesday, January 20, 2016, at 10:00 a.m. Central Time, the Company will host an investor conference call and webcast to review its fourth quarter 2015 financial results. The webcast will include a slide presentation which consists of information regarding the Company's operating and growth strategies and financial performance. The presentation materials will be posted on the Company's website on January 20, 2016. The presentation materials are attached hereto as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits:
99.1:Press Release dated January 19, 2016
99.2:Presentation materials
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
January 19, 2016
|
SOUTHWEST BANCORP, INC.
By: /s/ Mark W. Funke |
Exhibit Index
Exhibit No. |
|
Description |
|
Method of Filing |
|
|
|
|
|
99.1 |
|
Press Release dated January 19, 2016 |
|
Filed herewith electronically |
99.2 |
|
Presentation materials |
|
Filed herewith electronically |
For additional information: |
For Immediate Release
Southwest Bancorp, Inc. Reports Another Quarter of Solid Results for Fourth Quarter 2015
and Announces Increased Quarterly Dividend
January 19, 2016, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB), (“Southwest”), today reported net income for the fourth quarter of 2015 of $4.6 million, or $0.23 per diluted share, compared to $5.9 million, or $0.30 per diluted share, for the fourth quarter of 2014. Included in the prior year’s fourth quarter results was a negative (credit) provision for loan losses of $2.4 million versus a negative (credit) provision of $0.6 million for the quarter ended December 31, 2015. Net income for the year ended December 31, 2015 totaled $17.4 million, or $0.90 per diluted share, compared to $21.0 million, or $1.07 per diluted share, for the year ended December 31, 2014. Included in the prior year’s results was a pre-tax net gain on sale of bank branches of $4.4 million and a negative (credit) provision for loan losses of $6.6 million, versus a negative (credit) provision for loan losses of $3.6 million for the year ended December 31, 2015.
Southwest announced that its board of directors has approved an increase in the quarterly cash dividend from $0.06 per share to $0.08 per share payable February 12, 2016 to shareholders of record as of January 29, 2016.
Mark Funke, President and CEO, stated, “The fourth quarter was a positive growth and expansion quarter for Bank SNB. We successfully completed the acquisition and integration of First Commercial Bancshares, Inc. We hired a market president and two commercial bankers to lead our newly established Denver banking efforts. The acquisition expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also adds Colorado to our geographic footprint with three branches in Denver and one in Colorado Springs.
“The financial results for the fourth quarter reflect solid earnings and strong loan growth. Our efforts produced several highlights:
· |
Closed the acquisition of Edmond-based First Commercial Bancshares, Inc. (“FCBI”) October 9, 2015. |
· |
Total loan growth was $231.3 million, including $194.0 million of FCBI acquired loans, or 15%, for the fourth quarter and $379.4 million, or 27%, for the year. We have had eight consecutive quarters of loan growth. |
· |
Core loan growth (excluding the FCBI acquisition) for the year was $185.4 million, or 13%. |
· |
The quarterly net interest margin improved to 3.48% at December 31, 2015 compared to 3.34% at September 30, 2015. |
“Our financial results and the solid loan growth for the fourth quarter and the full year reflect the excellent work of our banking associates. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing risk and expenses.”
On February 24, 2015, Southwest’s board of directors authorized its second consecutive share repurchase program of up to 5.0% of its outstanding common stock, or approximately 950,000 shares, which became effective on August 14, 2015. The first share repurchase program, in August 2014, authorized up to 990,000 shares. Since August 2014, Southwest has repurchased 1,121,558 shares for a total of $18.8 million. During the fourth quarter of 2015, 254,248 shares for a total of $4.4 million were repurchased.
Financial Overview
Condition: As of December 31, 2015, total assets were $2.4 billion, an increase of $297.1 million, including FCBI acquired assets, when compared to September 30, 2015. At the date of acquisition, FCBI assets were $291.9 million. As of December 31, 2015, total loans were $1.8 billion, an increase of $231.3 million from the prior quarter end, including $194.0 million in acquired loans. As of December 31, 2015, investment securities were $412.1 million, an increase of $23.6 million from the prior quarter end, including $34.8 million in acquired investments. Cash and cash equivalents at December 31, 2015 were $78.1 million, up $9.5 million from September 30, 2015.
At December 31, 2015, the allowance for loan losses was $26.1 million, a decrease of $0.5 million when compared to September 30, 2015 and a decrease of $2.3 million when compared to December 31, 2014. The allowance for loan losses to portfolio loans was 1.47% as of December 31, 2015, compared to 1.73% as of September 30, 2015 and 2.03% as of December 31, 2014. The allowance for loan losses to nonperforming loans was 128.49% as of December 31, 2015, compared to 176.38% as of September 30, 2015 and 302.26% as of December 31, 2014. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.96% of gross loans.
Nonperforming loans were $20.3 million at December 31, 2015, an increase of $5.2 million from September 30, 2015, including $4.1 million of acquired nonperforming loans, and an increase of $10.9 million from December 31, 2014. Other real estate at
December 31, 2015 was $2.3 million, which is flat from September 30, 2015, and a decrease of $0.8 million when compared to December 31, 2014. Nonperforming assets were $22.6 million, or 1.27% of portfolio loans and other real estate, as of December 31, 2015, compared to $17.4 million, or 1.12% of portfolio loans and other real estate, as of September 30, 2015, and $12.5 million, or 0.89% of portfolio loans and other real estate, as of December 31, 2014.
As of December 31, 2015, total deposits were $1.9 billion, an increase of $257.9 million, including $227.9 million of acquired deposits, when compared to September 30, 2015. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 88% and 89% of total funding as of December 31, 2015 and September 30, 2015, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 12% and 11% of total funding at December 31, 2015 and September 30, 2015, respectively. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.
The capital ratios of Southwest and Bank SNB as of December 31, 2015 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $354.3 million, for a total risk-based capital ratio of 16.55%, Common Equity Tier 1 capital was $282.7 million, for a Common Equity Tier 1 ratio of 13.21%, and Tier 1 capital was $327.5 million, for a Tier 1 risk-based capital ratio of 15.30%. Bank SNB had total regulatory capital of $317.9 million, for a total risk-based capital ratio of 14.90% and Common Equity Tier 1 and Tier 1 capital of $291.1 million, for a Common Equity Tier 1 and Tier 1 ratio of 13.65%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Fourth Quarter Results:
Summary: For the fourth quarter of 2015, net income was $4.6 million, compared to $4.1 million for the third quarter of 2015 and $5.9 million for the fourth quarter of 2014. For the quarter, FCBI contributed $1.1 million of net income, which was substantially offset by deal costs, net of tax, of $1.0 million.
The $0.5 million increase in net income compared to the third quarter of 2015 was primarily due to $3.0 million increase in net interest income, a negative provision for loan losses of $0.6 million versus a small loan provision for loan losses in the previous quarter, and a $0.2 million increase in noninterest income, offset in part by a $3.0 million increase in noninterest expense including FCBI acquisition expenses, and an increase in taxes of $0.3 million.
The $1.3 million decrease in our net income compared to the fourth quarter of 2014 was primarily the result of a decrease in the negative provision for loan losses of $1.8 million, a $0.4 million decrease in noninterest income, a
$3.0 million increase in noninterest expense, offset in part by a $2.9 million increase in net interest income and a $1.0 million decrease in taxes.
Net Interest Income: Net interest income totaled $19.5 million for the fourth quarter of 2015, compared to $16.5 million for the third quarter of 2015 and $16.6 million for the fourth quarter of 2014. Net interest margin was 3.48% for the fourth quarter of 2015, compared to 3.34% for the third quarter of 2015 and 3.52% for the fourth quarter of 2014. Included in interest income for the fourth quarter of 2015 was $0.3 million due to accelerated discount accretion attributable to the acquisition of FCBI. The net effect of these adjustments on the net interest margin was a 5 basis point increase for the quarter ended 2015. The FCBI acquisition contributed $2.7 million in net interest income including $0.3 million in accelerated discount accretion. Loans (including loans held for sale) for the fourth quarter of 2015 increased $231.3 million, or 15%, including $194.0 million of acquired loans, when compared to September 30, 2015, and $379.4 million, or 27%, when compared to December 31, 2014.
Provision (Credit) for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a negative provision of $0.6 million for the fourth quarter of 2015, compared to a provision of $0.02 million for the third quarter of 2015, and a negative provision of $2.4 million for the fourth quarter of 2014. During the fourth quarter of 2015, net recoveries totaled $0.1 million, or (0.02%) (annualized) of average portfolio loans, compared to net recoveries of $0.4 million, or (0.09%) (annualized) of average portfolio loans for the third quarter of 2015 and net charge-offs of $0.1 million, or 0.02% (annualized) of average portfolio loans for the fourth quarter of 2014.
Noninterest Income: Noninterest income totaled $4.2 million for the fourth quarter of 2015, compared to $4.0 million for the third quarter of 2015 and $4.6 million for the fourth quarter of 2014.
The $0.2 million increase from the third quarter of 2015 is primarily the result of a $0.2 million increase in service charges and fees and a $0.1 million increase in the gain on sale of mortgage loans, offset in part by a $0.1 million decrease in other noninterest income, primarily from customer risk management interest rate swap income.
The $0.4 million decrease from the fourth quarter of 2014 is primarily the result of a $1.1 million decrease in gain on investment securities related to the gain on sale of a private equity investment during the fourth quarter of 2014, offset in part by a $0.1 million increase in service charges and fees, a $0.2 million increase in the gain on sale of mortgage loans, and a $0.4 million increase in other noninterest income, primarily from customer risk management interest rate swap income and income on bank owned life insurance.
Noninterest Expense: Noninterest expense totaled $17.1 million for the fourth quarter of 2015, compared to $14.1 million for the third quarter of 2015 and the fourth quarter of 2014.
The $3.0 million increase in noninterest expense from the third quarter of 2015 was primarily due to a $1.9 million increase in personnel expense, a $0.3 million increase in occupancy, a $0.4 million increase in data processing, and a $0.4 million increase in general and administrative expense. Noninterest expense included $2.6 million of expenses related to the acquisition of FCBI and the associated deal costs.
The $3.0 million increase in noninterest expense from the fourth quarter of 2014 consisted of a $2.8 million increase in personnel expense, a $0.2 million increase in occupancy, a $0.4 million increase in data processing, and a $0.1 million increase in FDIC and other insurance, offset in part by a $0.2 million decrease in other real estate and a $0.4 million decrease in general and administrative expense, which includes primarily legal, accounting, and marketing expenses. Noninterest expense included $2.6 million of expenses related to the acquisition of FCBI and the associated deal costs.
Income Tax: Income tax expense totaled $2.6 million for the fourth quarter of 2015, compared to $2.3 million for the third quarter of 2015 and $3.5 million for the fourth quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2015 effective tax rate was 35.96%, compared to 35.84% for the third quarter of 2015 and 37.50% for the fourth quarter of 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Year-to-date Results:
Summary: Net income was $17.4 million for the year ended December 31, 2015, compared to $21.0 million for the year ended December 31, 2014. The $3.6 million decrease in net income from 2014 is the result of a $3.1
million decrease in the negative provision for loan losses, a $4.5 million decrease in noninterest income, which is primarily the pre-tax net gain of $4.4 million on the sales of community bank branches in the second quarter of 2014, and a $1.3 million increase in noninterest expense, offset in part by a $2.4 million increase in net interest income and a $2.8 million decrease in income tax. For the year, FCBI contributed $1.1 million of net income, which was offset by, net of tax, deal costs of $1.2 million.
Net Interest Income: Net interest income totaled $67.4 million for 2015, compared to $65.0 million for 2014, an increase of $2.4 million. Year-to-date net interest margin was 3.35%, compared to 3.45% for 2014. Included in interest income for 2015 was $0.3 million due to accelerated discount accretion attributable to the acquisition of FCBI. The net effect of these adjustments on the net interest margin was a 2 basis point increase for the year ended 2015. Included in interest income for 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by a loss share agreement and $0.8 million due to the interest recovery on nonaccrual loans. The net effect of these adjustments on the net interest margin was a 8 basis point increase for the year ended 2014. With the rate environment remaining low, earning assets are repricing at lower rates.
Provision (Credit) for Loan Losses and Net Charge-offs: The provision for loan losses is the amount of expense that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a credit (or negative) of $3.6 million for 2015, compared to a negative provision of $6.6 million for 2014. Net recoveries totaled $1.2 million, or (0.08%) (annualized) of average portfolio loans year-to-date as of 2015, compared to net charge-offs of $1.6 million, or 0.12% (annualized) of average portfolio loans for 2014.
Noninterest Income: Noninterest income totaled $14.5 million for 2015, compared to $18.9 million for 2014. The decrease consists of a $0.2 million decrease in service charges and fees, the $4.4 million recognized as the pre-tax net gain on the sales of the community bank branches in the second quarter of 2014, and a $1.7 million decrease in the gain on sale of investment securities, due to the gain on sale of a private equity investment and the gain on the sale of a stock investment that was acquired in a prior year repossession in 2014, offset in part by a $0.6 million increase in gain on sales of mortgage loans and a $1.2 million increase in other noninterest income, which includes customer risk management interest rate swap income and income on bank owned life insurance.
Noninterest Expense: Noninterest expense totaled $58.2 million for 2015, compared to $56.9 million for 2014. The increase consists of a $3.0 million increase in salaries and employee benefits, a $0.2 million increase in occupancy expense, and a $0.4 million increase in data processing. These increases are offset in part by a $0.4 million decrease in other real estate expense and a $1.9 million decrease in general and administrative expenses, which primarily includes legal, marketing, and consulting. Noninterest expense included $3.1 million of expenses related to the acquisition of FCBI and the associated deal costs.
Income Tax: Income tax expense totaled $9.8 million for 2015, compared to $12.6 million for 2014. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 36.00% as of December 31, 2015, compared to 37.50% as of December 31, 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Conference Call
Southwest will host a conference call to review these results on Wednesday, January 20, 2016 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10077971. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest’s website at www.oksb.com or http://services.choruscall.com/links/oksb160120.html. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10077971. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 20, 2016.
Southwest Bancorp and Subsidiaries
Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2015, Southwest had total assets of approximately $2.4 billion, deposits of $1.9 billion, and shareholders’ equity of $296.1 million.
Southwest’s area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its banking subsidiary provide credit and other remittance services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of December 31, 2015, approximately $425.7 million, or 24%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.
Caution About Forward-Looking Statements
Southwest makes forward-looking statements in this news release that are subject to risks and uncertainties. These statements are intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include:
· |
Statements of Southwest's goals, intentions, and expectations; |
· |
Estimates of risks and of future costs and benefits; |
· |
Expectations regarding Southwest’s future financial performance and the financial performance of its operating segments; |
· |
Expectations regarding regulatory actions; |
· |
Expectations regarding Southwest’s ability to utilize tax loss benefits; |
· |
Expectations regarding Southwest’s stock repurchase program; |
· |
Expectations regarding dividends; |
· |
Expectations regarding acquisitions and divestitures; |
· |
Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; |
· |
Estimates of the value of assets held for sale or available for sale; and |
· |
Statements of Southwest’s ability to achieve financial and other goals. |
These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2014. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors”.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. Southwest does not intend, and undertakes no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of December 31, 2015 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2015 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
The Southwest Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8074
The Bank SNB logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=23106
Financial Tables
Unaudited Financial Highlights |
Table 1 |
Unaudited Consolidated Statements of Financial Condition |
Table 2 |
Unaudited Consolidated Statements of Operations |
Table 3 |
Unaudited Average Balances, Yields, and Rates-Quarterly |
Table 4 |
Unaudited Average Balances, Yields, and Rates-Year-to-date |
Table 5 |
Unaudited Quarterly Summary Loan Data |
Table 6 |
Unaudited Quarterly Summary Financial Data |
Table 7 |
Unaudited Quarterly Supplemental Analytical Data |
Table 8 |
SOUTHWEST BANCORP, INC. |
Table 1 |
Fourth Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||
QUARTERLY HIGHLIGHTS |
2015 |
% Change |
2014 |
% Change |
|||||||||
Operations |
|||||||||||||
Net interest income |
$ |
19,520 |
$ |
16,496 | 18% |
$ |
16,592 | 18% | |||||
Provision (credit) for loan losses |
(566) | 23 | (2,561) | (2,386) | (76) | ||||||||
Noninterest income |
4,179 | 4,029 | 4 | 4,576 | (9) | ||||||||
Noninterest expense |
17,099 | 14,077 | 21 | 14,115 | 21 | ||||||||
Income before taxes |
7,166 | 6,425 | 12 | 9,439 | (24) | ||||||||
Taxes on income |
2,577 | 2,303 | 12 | 3,540 | (27) | ||||||||
Net income |
4,589 | 4,122 | 11 | 5,899 | (22) | ||||||||
Diluted earnings per share |
0.23 | 0.22 | 5 | 0.30 | (23) | ||||||||
Balance Sheet |
|||||||||||||
Total assets |
2,357,022 | 2,059,899 | 14 | 1,942,034 | 21 | ||||||||
Loans held for sale |
7,453 | 7,024 | 6 | 1,485 | 402 | ||||||||
Portfolio loans |
1,771,976 | 1,541,070 | 15 | 1,398,506 | 27 | ||||||||
Total deposits |
1,884,105 | 1,626,250 | 16 | 1,533,999 | 23 | ||||||||
Total shareholders' equity |
296,098 | 277,344 | 7 | 270,786 | 9 | ||||||||
Book value per common share |
14.80 | 14.57 | 2 | 14.11 | 5 | ||||||||
Key Ratios |
|||||||||||||
Net interest margin |
3.48% | 3.34% | 3.52% | ||||||||||
Efficiency ratio |
71.49 | 68.25 | 66.68 | ||||||||||
Total capital to risk-weighted assets |
16.55 | 18.21 | 20.96 | ||||||||||
Nonperforming loans to portfolio loans |
1.15 | 0.98 | 0.67 | ||||||||||
Shareholders' equity to total assets |
12.56 | 13.46 | 13.94 | ||||||||||
Tangible common equity to tangible assets* |
11.95 | 13.40 | 13.89 | ||||||||||
Return on average assets (annualized) |
0.78 | 0.81 | 1.22 | ||||||||||
Return on average common equity (annualized) |
6.14 | 5.94 | 8.62 | ||||||||||
Return on average tangible common equity (annualized)** |
6.46 | 5.97 | 8.66 | ||||||||||
Year |
|||||||||||||
YEAR-TO-DATE HIGHLIGHTS |
2015 |
2014 |
% Change |
||||||||||
Operations |
|||||||||||||
Net interest income |
$ |
67,417 |
$ |
65,004 | 4% | ||||||||
Provision (credit) for loan losses |
(3,566) | (6,624) | (46) | ||||||||||
Noninterest income |
14,457 | 18,931 | (24) | ||||||||||
Noninterest expense |
58,240 | 56,912 | 2 | ||||||||||
Income before taxes |
27,200 | 33,647 | (19) | ||||||||||
Taxes on income |
9,793 | 12,617 | (22) | ||||||||||
Net income |
17,407 | 21,030 | (17) | ||||||||||
Net income available to common shareholders |
17,407 | 21,030 | (17) | ||||||||||
Diluted earnings per share |
0.90 | 1.07 | (16) | ||||||||||
Balance Sheet |
|||||||||||||
Total assets |
2,357,022 | 1,942,034 | 21 | ||||||||||
Loans held for sale |
7,453 | 1,485 | 402 | ||||||||||
Portfolio loans |
1,771,976 | 1,398,506 | 27 | ||||||||||
Total deposits |
1,884,105 | 1,533,999 | 23 | ||||||||||
Total shareholders' equity |
296,098 | 270,786 | 9 | ||||||||||
Book value per common share |
14.80 | 14.11 | 5 | ||||||||||
Key Ratios |
|||||||||||||
Net interest margin |
3.35% | 3.45% | |||||||||||
Efficiency ratio |
70.67 | 67.80 | |||||||||||
Total capital to risk-weighted assets |
16.55 | 20.96 | |||||||||||
Nonperforming loans to portfolio loans |
1.15 | 0.67 | |||||||||||
Shareholders' equity to total assets |
12.56 | 13.94 | |||||||||||
Tangible common equity to tangible assets* |
11.95 | 13.89 | |||||||||||
Return on average assets (annualized) |
0.84 | 1.09 | |||||||||||
Return on average common equity (annualized) |
6.23 | 7.82 | |||||||||||
Return on average tangible common equity (annualized)** |
6.35 | 7.85 |
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.
SOUTHWEST BANCORP, INC. |
Table 2 |
December 31, |
December 31, |
||||
2015 |
2014 |
||||
Assets |
|||||
Cash and due from banks |
$ |
24,971 |
$ |
19,705 | |
Interest-bearing deposits |
53,158 | 121,231 | |||
Cash and cash equivalents |
78,129 | 140,936 | |||
Securities held to maturity (fair values of $12,282 and $12,880, respectively) |
11,797 | 12,362 | |||
Securities available for sale (amortized cost of $401,136 and $352,275, respectively) |
400,331 | 353,231 | |||
Loans held for sale |
7,453 | 1,485 | |||
Loans receivable |
1,771,976 | 1,398,506 | |||
Less: Allowance for loan losses |
(26,106) | (28,452) | |||
Net loans receivable |
1,745,870 | 1,370,054 | |||
Accrued interest receivable |
5,767 | 4,723 | |||
Non-hedge derivative asset |
1,793 | 787 | |||
Premises and equipment, net |
23,819 | 18,588 | |||
Other real estate |
2,274 | 3,097 | |||
Goodwill |
13,467 | 1,214 | |||
Other intangible assets, net |
6,615 | 3,927 | |||
Other assets |
59,707 | 31,630 | |||
Total assets |
$ |
2,357,022 |
$ |
1,942,034 | |
Liabilities |
|||||
Deposits: |
|||||
Noninterest-bearing demand |
$ |
596,494 |
$ |
496,128 | |
Interest-bearing demand |
151,015 | 122,342 | |||
Money market accounts |
534,357 | 461,679 | |||
Savings accounts |
56,333 | 32,795 | |||
Time deposits of $100,000 or more |
311,538 | 198,952 | |||
Other time deposits |
234,368 | 222,103 | |||
Total deposits |
1,884,105 | 1,533,999 | |||
Accrued interest payable |
867 | 769 | |||
Non-hedge derivative liability |
1,793 | 787 | |||
Other liabilities |
11,684 | 9,920 | |||
Other borrowings |
110,927 | 79,380 | |||
Subordinated debentures |
51,548 | 46,393 | |||
Total liabilities |
2,060,924 | 1,671,248 | |||
Shareholders' equity |
|||||
Common stock - $1 par value; 40,000,000 shares authorized; |
|||||
21,138,028 and 19,810,877 shares issued, respectively |
21,138 | 19,811 | |||
Additional paid-in capital |
121,966 | 101,245 | |||
Retained earnings |
173,210 | 160,427 | |||
Accumulated other comprehensive income (loss) |
(1,290) | (395) | |||
Treasury stock, at cost, 1,131,226 and 617,818 shares, respectively |
(18,926) | (10,302) | |||
Total shareholders' equity |
296,098 | 270,786 | |||
Total liabilities and shareholders' equity |
$ |
2,357,022 |
$ |
1,942,034 |
SOUTHWEST BANCORP, INC. |
Table 3 |
For the three months ended |
For the year |
|||||||||||||
December 31, |
September 30, |
December 31, |
ended December 31, |
|||||||||||
2015 |
2015 |
2014 |
2015 |
2014 |
||||||||||
Interest income |
||||||||||||||
Loans |
$ |
19,725 |
$ |
16,510 |
$ |
16,423 |
$ |
67,644 |
$ |
64,224 | ||||
Investment securities |
1,813 | 1,644 | 1,737 | 6,559 | 7,146 | |||||||||
Other interest-earning assets |
46 | 66 | 56 | 280 | 422 | |||||||||
Total interest income |
21,584 | 18,220 | 18,216 | 74,483 | 71,792 | |||||||||
Interest expense |
||||||||||||||
Interest-bearing deposits |
1,196 | 905 | 835 | 3,798 | 3,655 | |||||||||
Other borrowings |
261 | 255 | 225 | 984 | 900 | |||||||||
Subordinated debentures |
607 | 564 | 564 | 2,284 | 2,233 | |||||||||
Total interest expense |
2,064 | 1,724 | 1,624 | 7,066 | 6,788 | |||||||||
Net interest income |
19,520 | 16,496 | 16,592 | 67,417 | 65,004 | |||||||||
Provision (credit) for loan losses |
(566) | 23 | (2,386) | (3,566) | (6,624) | |||||||||
Net interest income after provision for loan losses |
20,086 | 16,473 | 18,978 | 70,983 | 71,628 | |||||||||
Noninterest income |
||||||||||||||
Service charges and fees |
2,676 | 2,441 | 2,526 | 9,995 | 10,222 | |||||||||
Gain on sale of branches, net |
- |
- |
- |
- |
4,378 | |||||||||
Gain on sales of mortgage loans |
645 | 565 | 480 | 2,179 | 1,549 | |||||||||
Gain on sale/call of investment securities, net |
- |
19 | 1,120 | 162 | 1,884 | |||||||||
Other noninterest income |
858 | 1,004 | 450 | 2,121 | 898 | |||||||||
Total noninterest income |
4,179 | 4,029 | 4,576 | 14,457 | 18,931 | |||||||||
Noninterest expense |
||||||||||||||
Salaries and employee benefits |
10,273 | 8,374 | 7,428 | 34,850 | 31,830 | |||||||||
Occupancy |
2,586 | 2,288 | 2,388 | 9,359 | 9,193 | |||||||||
Data processing |
847 | 475 | 417 | 2,178 | 1,776 | |||||||||
FDIC and other insurance |
384 | 341 | 295 | 1,353 | 1,305 | |||||||||
Other real estate, net |
8 | 20 | 235 | 161 | 594 | |||||||||
General and administrative |
3,001 | 2,579 | 3,352 | 10,339 | 12,214 | |||||||||
Total noninterest expense |
17,099 | 14,077 | 14,115 | 58,240 | 56,912 | |||||||||
Income before taxes |
7,166 | 6,425 | 9,439 | 27,200 | 33,647 | |||||||||
Taxes on income |
2,577 | 2,303 | 3,540 | 9,793 | 12,617 | |||||||||
Net income |
$ |
4,589 |
$ |
4,122 |
$ |
5,899 |
$ |
17,407 |
$ |
21,030 | ||||
Basic earnings per common share |
$ |
0.23 |
$ |
0.22 |
$ |
0.30 |
$ |
0.90 |
$ |
1.07 | ||||
Diluted earnings per common share |
0.23 | 0.22 | 0.30 | 0.90 | 1.07 | |||||||||
Common dividends declared per share |
0.06 | 0.06 | 0.04 | 0.24 | 0.16 |
SOUTHWEST BANCORP, INC. |
Table 4 |
For the three months ended |
||||||||||||||
December 31, 2015 |
September 30, 2015 |
December 31, 2014 |
||||||||||||
Average |
Average |
Average |
Average |
Average |
Average |
|||||||||
Balance |
Yield/Rate |
Balance |
Yield/Rate |
Balance |
Yield/Rate |
|||||||||
Assets |
||||||||||||||
Loans |
$ |
1,744,374 | 4.49% |
$ |
1,473,297 | 4.45% |
$ |
1,369,852 | 4.76% | |||||
Investment securities |
413,701 | 1.74 | 387,194 | 1.68 | 367,978 | 1.87 | ||||||||
Other interest-earning assets |
64,562 | 0.28 | 100,011 | 0.26 | 132,418 | 0.17 | ||||||||
Total interest-earning assets |
2,222,637 | 3.85 | 1,960,502 | 3.69 | 1,870,248 | 3.86 | ||||||||
Other assets |
101,003 | 65,459 | 44,268 | |||||||||||
Total assets |
$ |
2,323,640 |
$ |
2,025,961 |
$ |
1,914,516 | ||||||||
Liabilities and Shareholders' Equity |
||||||||||||||
Interest-bearing demand deposits |
$ |
137,154 | 0.15% |
$ |
123,829 | 0.12% |
$ |
114,035 | 0.11% | |||||
Money market accounts |
541,976 | 0.18 | 497,935 | 0.17 | 466,937 | 0.15 | ||||||||
Savings accounts |
53,603 | 0.13 | 35,982 | 0.10 | 32,824 | 0.10 | ||||||||
Time deposits |
548,145 | 0.63 | 446,464 | 0.57 | 427,582 | 0.57 | ||||||||
Total interest-bearing deposits |
1,280,878 | 0.37 | 1,104,210 | 0.33 | 1,041,378 | 0.32 | ||||||||
Other borrowings |
80,343 | 1.29 | 76,799 | 1.32 | 79,932 | 1.12 | ||||||||
Subordinated debentures |
51,044 | 4.76 | 46,393 | 4.86 | 46,393 | 4.86 | ||||||||
Total interest-bearing liabilities |
1,412,265 | 0.58 | 1,227,402 | 0.56 | 1,167,703 | 0.55 | ||||||||
Noninterest-bearing demand deposits |
594,537 | 511,442 | 465,466 | |||||||||||
Other liabilities |
20,149 | 11,708 | 9,765 | |||||||||||
Shareholders' equity |
296,689 | 275,409 | 271,582 | |||||||||||
Total liabilities and shareholders' equity |
$ |
2,323,640 |
$ |
2,025,961 |
$ |
1,914,516 | ||||||||
Net interest income and spread |
3.27% | 3.13% | 3.31% | |||||||||||
Net interest margin (1) |
3.48% | 3.34% | 3.52% | |||||||||||
Average interest-earning assets |
||||||||||||||
to average interest-bearing liabilities |
157.38% | 159.73% | 160.16% | |||||||||||
(1) Net interest margin = annualized net interest income / average interest-earning assets |
SOUTHWEST BANCORP, INC. Table 5
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE
(Dollars in thousands)
For the year ended December 31, |
|||||||||
2015 |
2014 |
||||||||
Average |
Average |
Average |
Average |
||||||
Balance |
Yield/Rate |
Balance |
Yield/Rate |
||||||
Assets |
|||||||||
Loans |
$ |
1,519,730 | 4.45% |
$ |
1,334,323 | 4.81% | |||
Investment securities |
384,745 | 1.70 | 379,924 | 1.88 | |||||
Other interest-earning assets |
106,587 | 0.26 | 170,563 | 0.25 | |||||
Total interest-earning assets |
2,011,062 | 3.70 | 1,884,810 | 3.81 | |||||
Other assets |
68,680 | 46,894 | |||||||
Total assets |
$ |
2,079,742 |
$ |
1,931,704 | |||||
Liabilities and Shareholders' Equity |
|||||||||
Interest-bearing demand deposits |
$ |
134,381 | 0.11% |
$ |
121,976 | 0.12% | |||
Money market accounts |
499,788 | 0.17 | 440,658 | 0.14 | |||||
Savings accounts |
39,456 | 0.11 | 38,147 | 0.10 | |||||
Time deposits |
469,547 | 0.59 | 472,820 | 0.60 | |||||
Total interest-bearing deposits |
1,143,172 | 0.33 | 1,073,601 | 0.34 | |||||
Other borrowings |
72,538 | 1.36 | 82,965 | 1.08 | |||||
Subordinated debentures |
47,565 | 4.80 | 46,393 | 4.81 | |||||
Total interest-bearing liabilities |
1,263,275 | 0.56 | 1,202,959 | 0.56 | |||||
Noninterest-bearing demand deposits |
524,025 | 449,052 | |||||||
Other liabilities |
13,217 | 10,612 | |||||||
Shareholders' equity |
279,225 | 269,081 | |||||||
Total liabilities and shareholders' equity |
$ |
2,079,742 |
$ |
1,931,704 | |||||
Net interest income and spread |
3.14% | 3.25% | |||||||
Net interest margin (1) |
3.35% | 3.45% | |||||||
Average interest-earning assets |
|||||||||
to average interest-bearing liabilities |
159.19% | 156.68% | |||||||
(1) Net interest margin = annualized net interest income / average interest-earning assets |
SOUTHWEST BANCORP, INC. |
Table 6 |
2015 |
2014 |
||||||||||||||||||||||
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||||||||
LOAN COMPOSITION |
|||||||||||||||||||||||
Real estate mortgage: |
|||||||||||||||||||||||
Commercial |
$ |
938,462 |
$ |
869,250 |
$ |
759,406 |
$ |
759,676 |
$ |
752,971 |
$ |
757,878 |
$ |
769,021 |
$ |
766,178 | |||||||
One-to-four family residential |
161,958 | 95,906 | 85,338 | 86,343 | 77,531 | 78,985 | 79,542 | 84,619 | |||||||||||||||
Real estate construction: |
|||||||||||||||||||||||
Commercial |
129,070 | 126,407 | 186,140 | 192,052 | 186,659 | 166,379 | 166,981 | 166,007 | |||||||||||||||
One-to-four family residential |
21,337 | 12,866 | 13,107 | 12,586 | 10,464 | 11,030 | 8,359 | 6,629 | |||||||||||||||
Commercial |
507,173 | 423,480 | 384,788 | 366,282 | 350,410 | 330,738 | 300,163 | 266,311 | |||||||||||||||
Installment and consumer: |
|||||||||||||||||||||||
Guaranteed student loans |
- |
- |
- |
- |
37 | 127 | 4,282 | 4,318 | |||||||||||||||
Other |
21,429 | 20,185 | 20,651 | 21,306 | 21,919 | 22,251 | 23,352 | 26,060 | |||||||||||||||
Total loans, including held for sale |
1,779,429 | 1,548,094 | 1,449,430 | 1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||||||||
Less allowance for loan losses |
(26,106) | (26,593) | (26,219) | (27,250) | (28,452) | (30,917) | (33,083) | (34,925) | |||||||||||||||
Total loans, net |
$ |
1,753,323 |
$ |
1,521,501 |
$ |
1,423,211 |
$ |
1,410,995 |
$ |
1,371,539 |
$ |
1,336,471 |
$ |
1,318,617 |
$ |
1,285,197 | |||||||
LOANS BY SEGMENT |
|||||||||||||||||||||||
Oklahoma banking**** |
$ |
1,048,473 |
$ |
832,282 |
$ |
810,367 |
$ |
814,949 |
$ |
793,268 |
$ |
800,201 |
$ |
798,067 |
$ |
777,384 | |||||||
Texas banking |
580,476 | 563,010 | 493,047 | 478,005 | 460,680 | 424,640 | 408,385 | 372,018 | |||||||||||||||
Kansas banking |
150,480 | 152,802 | 146,016 | 145,291 | 146,043 | 142,547 | 145,248 | 170,720 | |||||||||||||||
Total loans |
$ |
1,779,429 |
$ |
1,548,094 |
$ |
1,449,430 |
$ |
1,438,245 |
$ |
1,399,991 |
$ |
1,367,388 |
$ |
1,351,700 |
$ |
1,320,122 | |||||||
NONPERFORMING LOANS BY TYPE |
|||||||||||||||||||||||
Construction & development |
$ |
1,010 |
$ |
391 |
$ |
416 |
$ |
392 |
$ |
73 |
$ |
77 |
$ |
82 |
$ |
80 | |||||||
Commercial real estate |
3,992 | 1,795 | 2,141 | 2,247 | 2,195 | 7,504 | 7,613 | 7,541 | |||||||||||||||
Commercial |
13,491 | 11,727 | 5,114 | 5,447 | 6,044 | 6,149 | 7,484 | 7,992 | |||||||||||||||
One-to-four family residential |
1,777 | 1,016 | 1,216 | 1,065 | 1,100 | 1,274 | 1,180 | 470 | |||||||||||||||
Consumer |
88 | 148 |
- |
- |
1 | 55 | 119 | 2 | |||||||||||||||
Total nonperforming loans |
$ |
20,358 |
$ |
15,077 |
$ |
8,887 |
$ |
9,151 |
$ |
9,413 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | |||||||
NONPERFORMING LOANS BY SEGMENT |
|||||||||||||||||||||||
Oklahoma banking**** |
$ |
6,948 |
$ |
2,846 |
$ |
1,670 |
$ |
2,244 |
$ |
1,867 |
$ |
6,410 |
$ |
7,149 |
$ |
7,056 | |||||||
Texas banking |
12,450 | 11,025 | 5,353 | 5,264 | 5,699 | 5,777 | 5,636 | 5,793 | |||||||||||||||
Kansas banking |
960 | 1,206 | 1,864 | 1,643 | 1,847 | 2,872 | 3,693 | 3,236 | |||||||||||||||
Total nonperforming loans |
$ |
20,358 |
$ |
15,077 |
$ |
8,887 |
$ |
9,151 |
$ |
9,413 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | |||||||
OTHER REAL ESTATE BY TYPE |
|||||||||||||||||||||||
Construction & development |
$ |
2,060 |
$ |
2,025 |
$ |
2,035 |
$ |
2,035 |
$ |
2,035 |
$ |
2,130 |
$ |
2,130 |
$ |
2,130 | |||||||
Commercial real estate |
214 | 249 | 358 | 220 | 1,062 | 1,318 | 2,155 | 2,524 | |||||||||||||||
Total other real estate |
$ |
2,274 |
$ |
2,274 |
$ |
2,393 |
$ |
2,255 |
$ |
3,097 |
$ |
3,448 |
$ |
4,285 |
$ |
4,654 | |||||||
OTHER REAL ESTATE BY SEGMENT |
|||||||||||||||||||||||
Oklahoma banking**** |
$ |
274 |
$ |
200 |
$ |
200 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||
Texas banking |
2,000 | 2,025 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||||||||
Kansas banking |
- |
49 | 193 | 255 | 1,097 | 1,448 | 2,285 | 2,654 | |||||||||||||||
Total other real estate |
$ |
2,274 |
$ |
2,274 |
$ |
2,393 |
$ |
2,255 |
$ |
3,097 |
$ |
3,448 |
$ |
4,285 |
$ |
4,654 | |||||||
****Due to immateriality, Colorado banking is included within Oklahoma banking. |
|||||||||||||||||||||||
Continued |
SOUTHWEST BANCORP, INC. |
Table 6 |
2015 |
2014 |
||||||||||||||||||||||
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||||||||
POTENTIAL PROBLEM LOANS BY TYPE |
|||||||||||||||||||||||
Construction & development |
$ |
- |
$ |
- |
$ |
- |
$ |
201 |
$ |
2,004 |
$ |
19,307 |
$ |
18,842 |
$ |
22,220 | |||||||
Commercial real estate |
26,981 | 22,362 | 20,375 | 24,672 | 26,108 | 40,623 | 60,559 | 64,257 | |||||||||||||||
Commercial |
9,879 | 7,366 | 14,519 | 14,016 | 5,842 | 4,090 | 4,299 | 4,807 | |||||||||||||||
One-to-four family residential |
2,285 | 79 | 80 | 81 | 83 | 355 | 475 | 481 | |||||||||||||||
Consumer |
10 |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||
Total potential problem loans |
$ |
39,155 |
$ |
29,807 |
$ |
34,974 |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | |||||||
POTENTIAL PROBLEM LOANS BY SEGMENT |
|||||||||||||||||||||||
Oklahoma banking**** |
$ |
32,970 |
$ |
23,597 |
$ |
23,231 |
$ |
26,713 |
$ |
24,950 |
$ |
23,895 |
$ |
23,887 |
$ |
29,208 | |||||||
Texas banking |
4,165 | 4,086 | 9,180 | 9,541 | 6,283 | 38,586 | 57,044 | 58,361 | |||||||||||||||
Kansas banking |
2,020 | 2,124 | 2,563 | 2,716 | 2,804 | 1,894 | 3,244 | 4,196 | |||||||||||||||
Total potential problem loans |
$ |
39,155 |
$ |
29,807 |
$ |
34,974 |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | |||||||
ALLOWANCE ACTIVITY |
|||||||||||||||||||||||
Balance, beginning of period |
$ |
26,593 |
$ |
26,219 |
$ |
27,250 |
$ |
28,452 |
$ |
30,917 |
$ |
33,083 |
$ |
34,925 |
$ |
36,663 | |||||||
Charge offs |
569 | 226 | 325 | 230 | 377 | 1,156 | 1,991 | 3,392 | |||||||||||||||
Recoveries |
648 | 577 | 430 | 915 | 298 | 1,887 | 504 | 2,640 | |||||||||||||||
Net charge offs (recoveries) |
(79) | (351) | (105) | (685) | 79 | (731) | 1,487 | 752 | |||||||||||||||
Provision (credit) for loan losses |
(566) | 23 | (1,136) | (1,887) | (2,386) | (2,897) | (355) | (986) | |||||||||||||||
Balance, end of period |
$ |
26,106 |
$ |
26,593 |
$ |
26,219 |
$ |
27,250 |
$ |
28,452 |
$ |
30,917 |
$ |
33,083 |
$ |
34,925 | |||||||
NET CHARGE OFFS BY TYPE |
|||||||||||||||||||||||
Construction & development |
$ |
- |
$ |
(16) |
$ |
(15) |
$ |
5 |
$ |
- |
$ |
- |
$ |
- |
$ |
655 | |||||||
Commercial real estate |
219 | 24 | 82 | (118) | (34) | (640) | 583 | (2,243) | |||||||||||||||
Commercial |
(286) | (325) | (52) | (188) | (45) | 22 | 652 | 2,267 | |||||||||||||||
One-to-four family residential |
(48) | (68) | (91) | (331) | 84 | 11 | (2) | (18) | |||||||||||||||
Consumer |
36 | 34 | (29) | (53) | 74 | (124) | 254 | 91 | |||||||||||||||
Total net charge offs (recoveries) by type |
$ |
(79) |
$ |
(351) |
$ |
(105) |
$ |
(685) |
$ |
79 |
$ |
(731) |
$ |
1,487 |
$ |
752 | |||||||
NET CHARGE OFFS BY SEGMENT |
|||||||||||||||||||||||
Oklahoma banking**** |
$ |
288 |
$ |
(86) |
$ |
25 |
$ |
(309) |
$ |
248 |
$ |
67 |
$ |
763 |
$ |
229 | |||||||
Texas banking |
(415) | (103) | (72) | (114) | (36) | (611) | 244 | (1,586) | |||||||||||||||
Kansas banking |
48 | (162) | (58) | (262) | (133) | (187) | 480 | 2,109 | |||||||||||||||
Total net charge offs (recoveries) by segment |
$ |
(79) |
$ |
(351) |
$ |
(105) |
$ |
(685) |
$ |
79 |
$ |
(731) |
$ |
1,487 |
$ |
752 | |||||||
****Due to immateriality, Colorado banking is included within Oklahoma banking. |
SOUTHWEST BANCORP, INC. |
Table 7
|
2015 |
2014 |
||||||||||||||||||||||
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||||||||
PER SHARE DATA |
|||||||||||||||||||||||
Basic earnings per common share |
$ |
0.23 |
$ |
0.22 |
$ |
0.22 |
$ |
0.24 |
$ |
0.30 |
$ |
0.27 |
$ |
0.31 |
$ |
0.19 | |||||||
Diluted earnings per common share |
0.23 | 0.22 | 0.22 | 0.24 | 0.30 | 0.27 | 0.31 | 0.19 | |||||||||||||||
Common dividends declared per share |
0.06 | 0.06 | 0.06 | 0.06 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||
Book value per common share |
14.80 | 14.57 | 14.38 | 14.26 | 14.11 | 13.90 | 13.71 | 13.37 | |||||||||||||||
Tangible book value per share* |
13.98 | 14.49 | 14.29 | 14.17 | 14.02 | 13.80 | 13.61 | 13.21 | |||||||||||||||
COMMON STOCK |
|||||||||||||||||||||||
Shares issued |
21,138,028 | 19,901,336 | 19,900,855 | 19,900,350 | 19,810,877 | 19,793,623 | 19,793,123 | 19,786,206 | |||||||||||||||
Less treasury shares |
1,131,226 | 868,617 | 867,310 | 867,310 | 617,818 | 223,005 |
- |
- |
|||||||||||||||
Outstanding shares |
20,006,802 | 19,032,719 | 19,033,545 | 19,033,040 | 19,193,059 | 19,570,618 | 19,793,123 | 19,786,206 | |||||||||||||||
OTHER FINANCIAL DATA |
|||||||||||||||||||||||
Investment securities |
$ |
412,128 |
$ |
388,543 |
$ |
373,260 |
$ |
377,545 |
$ |
365,593 |
$ |
370,607 |
$ |
385,873 |
$ |
386,987 | |||||||
Loans held for sale |
7,453 | 7,024 | 6,687 | 9,106 | 1,485 | 4,368 | 6,803 | 5,741 | |||||||||||||||
Portfolio loans |
1,771,976 | 1,541,070 | 1,442,743 | 1,429,139 | 1,398,506 | 1,363,020 | 1,344,897 | 1,314,381 | |||||||||||||||
Total loans |
1,779,429 | 1,548,094 | 1,449,430 | 1,438,245 | 1,399,991 | 1,367,388 | 1,351,700 | 1,320,122 | |||||||||||||||
Total assets |
2,357,022 | 2,059,899 | 2,031,581 | 2,003,079 | 1,942,034 | 1,900,948 | 1,885,158 | 2,012,053 | |||||||||||||||
Total deposits |
1,884,105 | 1,626,250 | 1,624,446 | 1,616,454 | 1,533,999 | 1,494,946 | 1,463,855 | 1,605,906 | |||||||||||||||
Other borrowings |
110,927 | 96,801 | 75,839 | 58,578 | 79,380 | 75,884 | 90,760 | 85,692 | |||||||||||||||
Subordinated debentures |
51,548 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||||||||
Total shareholders' equity |
296,098 | 277,344 | 273,681 | 271,444 | 270,786 | 271,966 | 271,351 | 264,586 | |||||||||||||||
Mortgage servicing portfolio |
432,318 | 422,845 | 415,961 | 407,903 | 410,315 | 401,756 | 397,339 | 391,303 | |||||||||||||||
INTANGIBLE ASSET DATA |
|||||||||||||||||||||||
Goodwill |
$ |
13,467 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 |
$ |
1,214 | |||||||
Core deposit intangible |
2,894 | 342 | 405 | 467 | 530 | 597 | 667 | 1,925 | |||||||||||||||
Mortgage servicing rights |
3,721 | 3,631 | 3,518 | 3,399 | 3,397 | 3,269 | 3,182 | 3,006 | |||||||||||||||
Total intangible assets |
$ |
20,082 |
$ |
5,187 |
$ |
5,137 |
$ |
5,080 |
$ |
5,141 |
$ |
5,080 |
$ |
5,063 |
$ |
6,145 | |||||||
Intangible amortization expense |
$ |
330 |
$ |
243 |
$ |
243 |
$ |
168 |
$ |
193 |
$ |
195 |
$ |
210 |
$ |
183 | |||||||
DEPOSIT COMPOSITION |
|||||||||||||||||||||||
Non-interest bearing demand |
$ |
596,494 |
$ |
526,159 |
$ |
515,156 |
$ |
506,952 |
$ |
496,128 |
$ |
445,148 |
$ |
427,431 |
$ |
471,568 | |||||||
Interest-bearing demand |
151,015 | 114,877 | 131,547 | 140,659 | 122,342 | 104,807 | 124,712 | 132,622 | |||||||||||||||
Money market accounts |
534,357 | 502,028 | 496,178 | 488,569 | 461,679 | 477,614 | 430,296 | 440,875 | |||||||||||||||
Savings accounts |
56,333 | 36,163 | 35,647 | 34,413 | 32,795 | 33,398 | 31,187 | 47,532 | |||||||||||||||
Time deposits of $100,000 or more |
311,538 | 238,318 | 233,105 | 227,426 | 198,952 | 203,090 | 209,059 | 236,035 | |||||||||||||||
Other time deposits |
234,368 | 208,705 | 212,813 | 218,435 | 222,103 | 230,889 | 241,170 | 277,274 | |||||||||||||||
Total deposits** |
$ |
1,884,105 |
$ |
1,626,250 |
$ |
1,624,446 |
$ |
1,616,454 |
$ |
1,533,999 |
$ |
1,494,946 |
$ |
1,463,855 |
$ |
1,605,906 | |||||||
OFFICES AND EMPLOYEES |
|||||||||||||||||||||||
FTE Employees |
412 | 358 | 361 | 360 | 359 | 351 | 364 | 397 | |||||||||||||||
Branches |
32 | 23 | 23 | 22 | 21 | 21 | 21 | 24 | |||||||||||||||
Assets per employee |
$ |
5,721 |
$ |
5,754 |
$ |
5,628 |
$ |
5,564 |
$ |
5,410 |
$ |
5,416 |
$ |
5,179 |
$ |
5,068 | |||||||
____________________ |
|||||||||||||||||||||||
*This is a Non-GAAP based financial measure. |
|||||||||||||||||||||||
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) |
|||||||||||||||||||||||
Total deposits |
$ |
1,884,105 |
$ |
1,626,250 |
$ |
1,624,446 |
$ |
1,616,454 |
$ |
1,533,999 |
$ |
1,494,946 |
$ |
1,463,855 |
$ |
1,605,906 | |||||||
Less: |
|||||||||||||||||||||||
Brokered time deposits |
39,797 | 10,086 | 7,683 | 7,694 | 3,373 | 2,952 | 1,348 | 1,347 | |||||||||||||||
Other brokered deposits |
135,880 | 133,025 | 103,025 | 83,025 | 73,425 | 98,425 | 48,424 | 3,424 | |||||||||||||||
Non-brokered deposits |
$ |
1,708,428 |
$ |
1,483,139 |
$ |
1,513,738 |
$ |
1,525,735 |
$ |
1,457,201 |
$ |
1,393,569 |
$ |
1,414,083 |
$ |
1,601,135 | |||||||
Plus: |
|||||||||||||||||||||||
Sweep repurchase agreements |
37,273 | 50,801 | 50,839 | 33,578 | 54,380 | 50,884 | 65,760 | 60,692 | |||||||||||||||
Core funding |
$ |
1,745,701 |
$ |
1,533,940 |
$ |
1,564,577 |
$ |
1,559,313 |
$ |
1,511,581 |
$ |
1,444,453 |
$ |
1,479,843 |
$ |
1,661,827 | |||||||
Balance sheet amounts are as of period end unless otherwise noted. |
SOUTHWEST BANCORP, INC. |
Table 8
|
2015 |
2014 |
||||||||||||||||||||||
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
||||||||||||||||
PERFORMANCE RATIOS |
|||||||||||||||||||||||
Return on average assets (annualized) |
0.78% | 0.81% | 0.85% | 0.92% | 1.22% | 1.12% | 1.27% | 0.75% | |||||||||||||||
Return on average common equity (annualized) |
6.14 | 5.94 | 6.11 | 6.78 | 8.62 | 7.69 | 9.19 | 5.68 | |||||||||||||||
Return on average tangible common equity |
|||||||||||||||||||||||
(annualized)* |
6.46 | 5.97 | 6.14 | 6.82 | 8.67 | 7.74 | 9.30 | 5.75 | |||||||||||||||
Net interest margin (annualized) |
3.48 | 3.34 | 3.31 | 3.25 | 3.52 | 3.44 | 3.50 | 3.33 | |||||||||||||||
Total dividends declared to net income |
26.22 | 27.53 | 27.45 | 25.19 | 12.93 | 14.88 | 12.86 | 21.40 | |||||||||||||||
Effective tax rate |
35.96 | 35.84 | 34.51 | 37.49 | 37.50 | 37.49 | 37.50 | 37.49 | |||||||||||||||
Efficiency ratio |
71.49 | 68.25 | 72.43 | 70.47 | 68.90 | 71.39 | 74.25 | 73.61 | |||||||||||||||
NONPERFORMING ASSETS |
|||||||||||||||||||||||
Nonaccrual loans |
$ |
19,858 |
$ |
15,076 |
$ |
8,887 |
$ |
9,151 |
$ |
9,276 |
$ |
15,059 |
$ |
16,478 |
$ |
16,085 | |||||||
90 days past due and accruing |
500 | 1 |
- |
- |
137 |
- |
- |
- |
|||||||||||||||
Total nonperforming loans |
20,358 | 15,077 | 8,887 | 9,151 | 9,413 | 15,059 | 16,478 | 16,085 | |||||||||||||||
Other real estate |
2,274 | 2,274 | 2,393 | 2,255 | 3,097 | 3,448 | 4,285 | 4,654 | |||||||||||||||
Total nonperforming assets |
$ |
22,632 |
$ |
17,351 |
$ |
11,280 |
$ |
11,406 |
$ |
12,510 |
$ |
18,507 |
$ |
20,763 |
$ |
20,739 | |||||||
Potential problem loans |
$ |
39,155 |
$ |
29,807 |
$ |
34,974 |
$ |
38,970 |
$ |
34,037 |
$ |
64,375 |
$ |
84,175 |
$ |
91,765 | |||||||
ASSET QUALITY RATIOS |
|||||||||||||||||||||||
Nonperforming assets to portfolio loans and |
|||||||||||||||||||||||
other real estate |
1.28% | 1.12% | 0.78% | 0.80% | 0.89% | 1.36% | 1.54% | 1.57% | |||||||||||||||
Nonperforming loans to portfolio loans |
1.15 | 0.98 | 0.62 | 0.64 | 0.67 | 1.10 | 1.23 | 1.22 | |||||||||||||||
Allowance for loan losses to portfolio loans |
1.47 | 1.73 | 1.82 | 1.91 | 2.03 | 2.27 | 2.46 | 2.66 | |||||||||||||||
Allowance for loan losses to |
|||||||||||||||||||||||
nonperforming loans |
128.49 | 176.38 | 295.03 | 297.78 | 302.26 | 205.29 | 200.77 | 217.13 | |||||||||||||||
Net loan charge-offs to average portfolio |
|||||||||||||||||||||||
loans (annualized) |
(0.02) | (0.09) | (0.03) | (0.20) | 0.02 | (0.21) | 0.45 | 0.24 | |||||||||||||||
CAPITAL RATIOS |
|||||||||||||||||||||||
Average total shareholders' equity to |
|||||||||||||||||||||||
average assets |
12.77% | 13.59% | 13.87% | 13.59% | 14.19% | 14.61% | 13.77% | 13.18% | |||||||||||||||
Leverage ratio |
14.19 | 15.84 | 16.12 | 15.75 | 16.45 | 16.86 | 15.95 | 15.09 | |||||||||||||||
Common equity tier 1 capital |
13.21 | 14.57 | 15.30 | 15.51 |
n/a |
n/a |
n/a |
n/a |
|||||||||||||||
Tier 1 capital to risk-weighted assets |
15.30 | 16.95 | 17.84 | 18.10 | 19.70 | 20.05 | 20.13 | 19.98 | |||||||||||||||
Total capital to risk-weighted assets |
16.55 | 18.21 | 19.09 | 19.36 | 20.96 | 21.34 | 21.43 | 21.29 | |||||||||||||||
Tangible common equity to tangible assets*** |
11.95 | 13.40 | 13.40 | 13.48 | 13.87 | 14.23 | 14.31 | 13.01 | |||||||||||||||
REGULATORY CAPITAL DATA |
|||||||||||||||||||||||
Common equity tier 1 capital |
$ |
282,737 |
$ |
275,350 |
$ |
272,048 |
$ |
269,007 |
$ |
n/a |
$ |
n/a |
$ |
n/a |
$ |
n/a |
|||||||
Tier I capital |
327,468 | 320,350 | 317,048 | 314,007 | 314,216 | 314,120 | 309,600 | 299,938 | |||||||||||||||
Total capital |
354,300 | 344,095 | 339,412 | 335,734 | 334,348 | 334,456 | 329,586 | 319,516 | |||||||||||||||
Total risk adjusted assets |
2,140,344 | 1,889,892 | 1,777,618 | 1,734,401 | 1,595,032 | 1,566,996 | 1,537,903 | 1,500,957 | |||||||||||||||
Average total assets |
2,307,421 | 2,022,972 | 1,966,577 | 1,993,446 | 1,910,688 | 1,863,127 | 1,941,064 | 1,987,231 | |||||||||||||||
____________________ |
|||||||||||||||||||||||
*This is a Non-GAAP based financial measure. |
|||||||||||||||||||||||
***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure) |
|||||||||||||||||||||||
Total shareholders' equity |
$ |
296,098 |
$ |
277,344 |
$ |
273,681 |
$ |
271,444 |
$ |
270,786 |
$ |
271,966 |
$ |
271,351 |
$ |
264,586 | |||||||
Less goodwill and core deposit intangible |
16,361 | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||
Tangible common equity |
$ |
279,737 |
$ |
275,788 |
$ |
272,062 |
$ |
269,763 |
$ |
269,042 |
$ |
270,155 |
$ |
269,470 |
$ |
261,447 | |||||||
Total assets |
$ |
2,357,022 |
$ |
2,059,899 |
$ |
2,031,581 |
$ |
2,003,079 |
$ |
1,942,034 |
$ |
1,900,948 |
$ |
1,885,158 |
$ |
2,012,053 | |||||||
Less goodwill and core deposit intangible |
16,361 | 1,556 | 1,619 | 1,681 | 1,744 | 1,811 | 1,881 | 3,139 | |||||||||||||||
Tangible assets |
$ |
2,340,661 |
$ |
2,058,343 |
$ |
2,029,962 |
$ |
2,001,398 |
$ |
1,940,290 |
$ |
1,899,137 |
$ |
1,883,277 |
$ |
2,008,914 | |||||||
Total shareholders' equity to total assets |
12.56% | 13.46% | 13.47% | 13.55% | 13.94% | 14.31% | 14.39% | 13.15% | |||||||||||||||
Tangible common equity to tangible assets |
11.95% | 13.40% | 13.40% | 13.48% | 13.87% | 14.23% | 14.31% | 13.01% | |||||||||||||||
Balance sheet amounts and ratios are as of period end unless otherwise noted. |
2015 Fourth Quarter Earnings Presentation NASDAQ: OKSB January 20, 2016
Forward Looking Statements We make forward-looking statements in this presentation that are subject to risks and uncertainties. We intend these statements 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 our future financial performance and the financial performance of our operating segments; • Expectations regarding regulatory actions; • Expectations regarding our ability to utilize tax loss benefits; • Expectations regarding our 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 our 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 our 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 the “Risk Factors” contained in Southwest’s reports to the Securities and Exchange Commission. We do not intend, or undertake no obligation, to update or revise any forward-looking statements contained in this presentation, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting said statements, except as required by law.
2015 Highlights Achieved net income of $17.4 million or $0.90 per fully diluted share in 2015. Successfully closed the acquisition and completed the integration of First Commercial Bank. Identified and acquired talented individuals and teams. This included: new market leadership in Colorado, Austin and Tulsa and new leadership in Consumer Banking, Operations and Technology. Restructured Commercial Banking operations to improve focus on market growth, customer responsiveness and efficiency. Maintained solid credit quality performance with four consecutive months of net recoveries totaling $1.2 million for 2015. Maintained high credit standards while accelerating loan growth focused in areas of expertise, i.e. healthcare, real estate and commercial. Now have recorded eight consecutive quarters of loan growth. Core loan growth of 13% for 2015. Continued improving internal operating efficiency while providing superior customer service. This includes a new investment in a core operating system. Efficiency ratio for 2015 was 68.3% excluding acquisition deal costs compared to 72.0% for 2014 excluding the gain on branch sales. Increased our investment in mortgage underwriting and booking system while adding leadership and delivery channels in Texas and Colorado. We continue to drive a culture that produces consistent, conservative and sustainable revenue and earnings growth.
Fourth Quarter 2015 Highlights Net income of $4.6 million, or $0.23 per diluted share. – Pre-tax, pre-provision income of $6.6 million. Loan portfolio continues to exhibit growth and stability. – Loans increased $231.3 million during the quarter, including $194.0 million of acquired loans, and $379.4 million for the year, or 27%. – Core loan growth for the quarter (excluding acquired loans) was $37.3 million, or 9.6% annualized. – Eight consecutive quarters of loan growth. – Booked $125.9 million in new loan commitments in the quarter. – Net interest margin was 3.48% for the quarter up from 3.34% in the third quarter. Legacy credit portfolio continued to improve while absorbing acquired loans. – Potential Problem Loans increased by $9.3 million to $39.2 million (inclusive of $11.4 million in acquired loans). – Total criticized assets increased by $20.2 million to $71.0 million (inclusive of $20.7 million in acquired loans). – NPLs increased by $5.2 million to $20.3 million (inclusive of $4.1 million in acquired loans). – Loss reserve is at 1.47% of total loans. Loss reserve and purchase discount on acquired loans represents 1.96% of gross loans. – Net recoveries were $0.1 million, fourth consecutive quarter of net recoveries. – Loan loss provision for the quarter was a release of $0.6 million.
Fourth Quarter 2015 Highlights (cont.) Positive non-interest income, including mortgage loan sales, deposit fees and swap fees. Capital ratios remain strong and above minimum well-capitalized standards. Efficiency ratio for fourth quarter was 66.9% (excluding deal costs of $1.4 million) compared to 67.3% (excluding deal costs of $339,000) for the third quarter of 2015 and 68.9% for the fourth quarter of 2014. Our board declared an increase in the quarterly dividend to $0.08 per share to shareholders of record as of January 29, 2016 and payable on February 12, 2016.
Energy Highlights Fourth Quarter 2015 Total direct energy exposure at year end included $96.7 million in commitments and $63.4 million in funded debt. Down from $107.9 million and $68.6 million at 9/30/15. Energy exposure represents 3.6% of total funded credit portfolio. Four credits totaling $9.1 million, or 14.0%, of the energy portfolio were criticized. One credit of $5.5 million is non-accrual with a $1.2 million allocated reserve. Including the specific allocation, the ALLL for energy credits is 4.0%. No participations purchased in our reserve-based portfolio. Only ten reserve-based borrowers with credit in excess of $1.0 million. Approved one new energy credit over $1.0 million in exposure in 2015 but has not yet closed. Portfolio has been stressed at $30 flat and front month pricing of $23. 75% of funded service portfolio is comprised of three credits, all of which are participations purchased from larger banks.
Financial Highlights ($ in thousands except per share data) Balance Sheet 2013 FY 12/31/13 2014 FY 12/31/14 2015 FY 12/31/15 2014 FQ4 12/31/14 2015 FQ1 3/31/15 2015 FQ2 6/30/15 2015 FQ3 9/30/15 2015 FQ4 12/31/15 Total Assets Total Gross Loans Total Deposits Total Equity Profitability (%) 1,981,423 1,270,903 1,584,086 259,187 1,942,034 1,399,991 1,533,999 270,786 2,357,022 1,779,429 1,884,105 296,098 1,942,034 1,399,991 1,533,999 270,786 2,003,079 1,438,245 1,616,454 271,444 2,031,581 1,449,430 1,624,446 273,681 2,059,899 1,548,094 1,626,250 277,344 2,357,022 1,779,429 1,884,105 296,098 Net Income ($000) ROAA ROAE Net Interest Margin Efficiency Ratio Balance Sheet Ratios / Capital (%) 17,435 0.86 6.90 3.19 73.30 21,030 1.09 7.82 3.45 72.02 17,407 0.84 6.23 3.35 70.67 5,899 1.22 8.62 3.52 68.90 4,535 0.92 6.78 3.25 70.47 4,161 0.85 6.11 3.31 72.43 4,122 0.81 5.94 3.34 68.25 4,589 0.78 6.14 3.48 71.49 Loans/ Deposits Tangible Common Equity/ Tang Assets(1)(3) Common Equity Tier 1 Capital Ratio Tier 1 Risk Based Capital Ratio Total Risk Based Capital Ratio Tier 1 Leverage Ratio Asset Quality (%)(2) 80.23 12.94 NA 20.28 21.59 14.86 91.26 13.89 NA 19.70 20.96 16.45 94.44 11.95 NA 15.30 16.52 14.19 91.26 13.87 NA 19.70 20.96 16.45 88.98 13.48 15.51 18.10 19.36 15.75 89.23 13.40 15.30 17.84 19.09 16.12 95.19 13.40 14.58 16.97 18.22 15.84 94.44 11.95 NA 15.30 16.52 14.19 NPLs/ Portfolio Loans NCOs/ Avg Portfolio Loans Reserves/Portfolio Loans Reserves/ NPLs Per Share Data Tangible Book Value Per Share(1)(3) Earnings Per Share 1.57 0.22 2.89 184.50 12.97 0.89 0.67 0.12 2.03 302.26 14.02 1.07 1.15 (0.08) 1.47 128.49 13.98 0.90 0.67 0.02 2.03 302.26 14.02 0.30 0.64 (0.20) 1.91 297.78 14.17 0.24 0.62 (0.03) 1.82 295.03 14.29 0.22 0.98 (0.09) 1.73 176.38 14.49 0.22 1.15 (0.02) 1.47 128.49 13.98 0.23 (1) Intangible assets defined as goodwill for purposes of these calculations. (2) NPLs defined as Non-Accrual loans + Loans 90+ Days Past Due, NPAs defined as NPLs + OREO. (3) This is a non-GAAP based financial measure. See Appendix for reconciliation to the most directly comparable GAAP based measure.
Earnings Results Earnings Summary ($ in thousands, except per share) 12/31/15 Three Months Ended 9/30/15 12/31/14 Q4 '15 vs. Q3 '15 % Change Net interest income Provision for loan losses Noninterest income Noninterest expense Income before taxes Taxes on income Net income $ 19,520 (566) 4,179 17,099 7,166 2,577 4,589 $ 16,496 23 4,029 14,077 6,425 2,303 4,122 $ 16,592 (2,386) 4,576 14,115 9,439 3,540 5,899 18.3% 2,560.9% 3.7% 21.5% 11.5% 11.9% 11.3% Pre-tax, pre-provision income (1) 6,600 6,448 7,053 2.4% Diluted earnings per share $ 0.23 $ 0.22 $ 0.30 (1) This is a non-GAAP based financial measure. See Appendix for reconciliation to the most directly comparable GAAP based measure.
Owner Occupied CRE $307.4 17% Non-Owner Occupied CRE $630.7 36%Residential Real Estate $183.4 10%Consumer $21.4 1% Construction & Development $129.5 7% Commercial & Industrial $507.0 29% Loan Portfolio 9Dollars in millions. Loans by Type Loans by Segment Owner Occupied CRE $345.2 25% Non-Owner Occupied CRE $408.9 29% Residential Real Estate $86.4 6% Consumer $21.5 2% Construction & Development $188.0 13% Commercial & Industrial $349.9 25% 12/31/2015 $1.78 billion 12/31/2014 $1.40 billion Kansas $150.5 8% Oklahoma $1,009.7 57% Colorado $38.8 2% Texas $580.5 33% Kansas $146.0 10% Oklahoma $793.3 57% Texas $460.7 33% Owner Occupied CRE $307.4 17% Non-Owner Occupied CRE $630.7 36%Residential Real Estate $183.4 10%Consumer $21.4 1% Construction & Development $129.5 7% Commercial & Industrial $507.0 29% Loan Portfolio 9Dollars in millions. Loans by Type Loans by Segment Owner Occupied CRE $345.2 25% Non-Owner Occupied CRE $408.9 29% Residential Real Estate $86.4 6% Consumer $21.5 2% Construction & Development $188.0 13% Commercial & Industrial $349.9 25% 12/31/2015 $1.78 billion 12/31/2014 $1.40 billion Kansas $150.5 8% Oklahoma $1,009.7 57% Colorado $38.8 2% Texas $580.5 33% Kansas $146.0 10% Oklahoma $793.3 57% Texas $460.7 33%
Owner Occupied CRE $1.1 5% Non Owner Occupied CRE $2.9 14% Residential Real Estate $1.8 9% Consumer $0.1 0% Construction & Development $1.0 5% Commercial & Industrial $3.1 16% Energy Commercial & Industrial $5.5 27% Healthcare Commercial & Industrial $4.8 24% Nonperforming Loans 10Dollars in millions. Nonperforming loans include non-accruals and 90 days past due loans. By Type By Geographic Location Owner Occupied CRE $2.1 22% Non-Owner Occupied CRE $0.1 1% Residential Real Estate $1.1 12% Construction & Development $0.1 1% Commercial & Industrial $0.3 3% Healthcare Commercial & Industrial $5.7 61% 12/31/2015 $20.3 million 12/31/2014 $9.4 million Kansas $0.7 3% Oklahoma $4.8 23% Arizona $4.5 22% Texas $7.8 39% Other $2.5 13% Kansas $1.8 20% Oklahoma $1.8 19%Arizona $5.0 53% Texas $0.7 7% Other $0.1 1% Owner Occupied CRE $1.1 5% Non Owner Occupied CRE $2.9 14% Residential Real Estate $1.8 9% Consumer $0.1 0% Construction & Development $1.0 5% Commercial & Industrial $3.1 16% Energy Commercial & Industrial $5.5 27% Healthcare Commercial & Industrial $4.8 24% Nonperforming Loans 10Dollars in millions. Nonperforming loans include non-accruals and 90 days past due loans. By Type By Geographic Location Owner Occupied CRE $2.1 22% Non-Owner Occupied CRE $0.1 1% Residential Real Estate $1.1 12% Construction & Development $0.1 1% Commercial & Industrial $0.3 3% Healthcare Commercial & Industrial $5.7 61% 12/31/2015 $20.3 million 12/31/2014 $9.4 million Kansas $0.7 3% Oklahoma $4.8 23% Arizona $4.5 22% Texas $7.8 39% Other $2.5 13% Kansas $1.8 20% Oklahoma $1.8 19%Arizona $5.0 53% Texas $0.7 7% Other $0.1 1%
Criticized Assets 11 $19,872 $16,085 $16,478 $15,059 $9,413 $9,151 $8,887 $15,077 $20,317 $99,750 $91,765 $84,175 $64,375 $34,037 $38,970 $34,974 $29,807 $39,155 $93,231 $87,411 $62,759 $41,224 $41,979 $48,895 $41,876 $3,605 $9,229 $2,654 $4,654 $4,285 $3,448 $3,097 $2,255 $2,393 $2,274 $2,274 2013 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Nonperforming Loans Potential Problem Loans Special Mention Loans Other Real Estate Dollars in thousands. Nonperforming loans include non-accruals and 90 days past due loans. PPL is defined as potential problem loans. Criticized Assets 11 $19,872 $16,085 $16,478 $15,059 $9,413 $9,151 $8,887 $15,077 $20,317 $99,750 $91,765 $84,175 $64,375 $34,037 $38,970 $34,974 $29,807 $39,155 $93,231 $87,411 $62,759 $41,224 $41,979 $48,895 $41,876 $3,605 $9,229 $2,654 $4,654 $4,285 $3,448 $3,097 $2,255 $2,393 $2,274 $2,274 2013 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Nonperforming Loans Potential Problem Loans Special Mention Loans Other Real Estate Dollars in thousands. Nonperforming loans include non-accruals and 90 days past due loans. PPL is defined as potential problem loans.
Loan Loss Reserve to NPL+PPL 12 30.65% 32.38% 32.87% 38.92% 65.48% 56.63% 59.78% 59.25% 43.90% 2013 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Nonperforming loans include non-accruals and 90 days past due loans. PPL is defined as potential problem loans. Loan Loss Reserve to NPL+PPL 12 30.65% 32.38% 32.87% 38.92% 65.48% 56.63% 59.78% 59.25% 43.90% 2013 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Nonperforming loans include non-accruals and 90 days past due loans. PPL is defined as potential problem loans.
Credit Risk Profile Nonperforming assets defined as nonaccrual loans, loans past due 90 days or more and still accruing, and other real estate owned.
Strong Core Deposit Franchise $1.9 billion Total Deposits (12/31/15) Deposits by Type Cost of Deposits 0.40% 0.36% 0.34% 0.34% 0.32% 0.31% 0.32% 0.33% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 Non-interest Bearing Demand$596 32%Interest Bearing Demand$151 8%Money market Accounts$534 28%Savings Accounts$56 3%Time Deposits $100,000 or More$312 17%Other Time Deposits$234 12%0.37% Dollars in millions.
NIM/Cost of Funds ($000s) $25,000 $20,000 $15,000 $10,000 $5,000 $0.40% 0.36% 0.34% 0.34% 0.32% 0.31% 0.32% 0.33% 0.37% 3.42% 3.33% 3.50% 3.44% 3.52% 3.25% 3.31% 3.34% 3.48% 5.0%4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Q4 '13 Q1 '14 Q2'14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Net Interest Income Cost of Deposits Net Interest Margin
Noninterest Income 16 $3,068 $3,025 $8,246 $3,084 $4,576 $2,840 $3,409 $4,029 $4,179 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Service Charges and Fees Gain on Sales of Loans Gain on Investment Securities Other Dollars in thousands. Noninterest Income 16 $3,068 $3,025 $8,246 $3,084 $4,576 $2,840 $3,409 $4,029 $4,179 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Service Charges and Fees Gain on Sales of Loans Gain on Investment Securities Other Dollars in thousands.
$15,065 $14,107 $15,332 $13,358 $14,115 $13,082 $13,982 $14,077 $17,099 12/31/13 3/3/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Salaries and Employee Benefits Occupancy General and Administrative Other Noninterest Expense 17 Dollars in thousands. $15,065 $14,107 $15,332 $13,358 $14,115 $13,082 $13,982 $14,077 $17,099 12/31/13 3/3/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Salaries and Employee Benefits Occupancy General and Administrative Other Noninterest Expense 17 Dollars in thousands.
Strong Regulatory Capital Position Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio 20.3% 20.3% 19.7% 15.3% 0% 5% 10% 15% 20% 25% 15.0% 14.9% 16.5% 14.2% 0% 5% 10% 15% 20% 25% * * 2012 2013 2014 2015 2012 2013 2014 2015 Total Risk Based Capital Ratio Tier 1 Common Ratio 2012 2013 2014 2015 2012 2013 2014 2015 15.2% 17.2% 16.9% 13.2% 0% 5% 10% 15% 20% 25% * * 21.6% 21.6% 21.0% 16.5% 0% 5% 10% 15% 20% 25% *Well-capitalized minimum.
2016 Priorities Maintain strong credit quality along with conservative balance sheet and risk management. Continue appropriate growth in the commercial banking sector. Grow deposit base commensurate with loan growth. Focus on fee based income growth in mortgage, consumer and treasury. Assess, manage and add talent where available and appropriate throughout the organization. Drive growth in the healthcare banking segment. Deploy capital in a manner that grows the organization and enhances shareholder value. Manage expenses to drive operating efficiency improvements. Ensure that the repurchase and dividend programs are providing the best shareholder returns.
ADDITIONAL FINANCIAL INFORMATION
Quarterly Net Income 21 $6.8 $3.7 $6.2 $5.3 $5.9 $4.5 $4.2 $4.1 $4.6 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions. Quarterly Net Income 21 $6.8 $3.7 $6.2 $5.3 $5.9 $4.5 $4.2 $4.1 $4.6 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions.
Quarterly Pre-Tax, Pre-Provision Income 22 $4.6 $4.9 $5.1 (1) $5.6 $5.9 (2) $5.4 $5.2 $6.4 $6.6 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions. (1) Excludes gain on sale of branches. (2) Excludes gain on sale of private equity security. Quarterly Pre-Tax, Pre-Provision Income 22 $4.6 $4.9 $5.1 (1) $5.6 $5.9 (2) $5.4 $5.2 $6.4 $6.6 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions. (1) Excludes gain on sale of branches. (2) Excludes gain on sale of private equity security.
Quarterly Net Interest Margin 23 3.42% 3.33% 3.50% 3.44% 3.52% 3.25% 3.31% 3.34% 3.48% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Quarterly Net Interest Margin 23 3.42% 3.33% 3.50% 3.44% 3.52% 3.25% 3.31% 3.34% 3.48% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15
Total Loans by Segment 24 $705.21 $777.38 $798.07 $800.20 $793.27 $814.95 $810.37 $832.28 $1,009.69 $366.70 $372.02 $408.39 $424.64 $460.68 $478.01 $493.05 $563.01 $580.48 $198.99 $170.72 $145.25 $142.55 $146.04 $145.29 $146.02 $152.80 $150.48 $38.79 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Oklahoma Texas Kansas Colorado Dollars in millions. Total Loans by Segment 24 $705.21 $777.38 $798.07 $800.20 $793.27 $814.95 $810.37 $832.28 $1,009.69 $366.70 $372.02 $408.39 $424.64 $460.68 $478.01 $493.05 $563.01 $580.48 $198.99 $170.72 $145.25 $142.55 $146.04 $145.29 $146.02 $152.80 $150.48 $38.79 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Oklahoma Texas Kansas Colorado Dollars in millions.
Potential Problem Loans by Segment 25 $29.0 $29.2 $23.9 $23.9 $25.0 $26.7 $23.2 $23.6 $30.2 $65.1 $58.4 $57.0 $38.6 $6.3 $9.5 $9.2 $4.1 $4.2 $5.7 $4.2 $3.2 $1.9 $2.8 $2.7 $2.6 $2.1 $2.0 $2.8 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/3/15 6/30/15 9/30/15 12/31/15 Oklahoma Texas Kansas Colorado Dollars in millions. Potential Problem Loans by Segment 25 $29.0 $29.2 $23.9 $23.9 $25.0 $26.7 $23.2 $23.6 $30.2 $65.1 $58.4 $57.0 $38.6 $6.3 $9.5 $9.2 $4.1 $4.2 $5.7 $4.2 $3.2 $1.9 $2.8 $2.7 $2.6 $2.1 $2.0 $2.8 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/3/15 6/30/15 9/30/15 12/31/15 Oklahoma Texas Kansas Colorado Dollars in millions.
Provision for Loan Loss 26 $(6.50) $(0.99) $(0.36) $(2.90) $(2.39) $(1.89) $(1.14) $0.02 $(0.57) 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions. Provision for Loan Loss 26 $(6.50) $(0.99) $(0.36) $(2.90) $(2.39) $(1.89) $(1.14) $0.02 $(0.57) 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in millions.
Loan Loss Reserve to Total Portfolio Loans 27 2.89% 2.66% 2.46% 2.27% 2.03% 1.91% 1.82% 1.73% 1.47% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Loan Loss Reserve to Total Portfolio Loans 27 2.89% 2.66% 2.46% 2.27% 2.03% 1.91% 1.82% 1.73% 1.47% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15
Loan Loss Reserve to Nonperforming Loans 28 184.50% 217.13% 200.77% 205.29% 302.26% 297.78% 295.03% 176.38% 128.49% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Loan Loss Reserve to Nonperforming Loans 28 184.50% 217.13% 200.77% 205.29% 302.26% 297.78% 295.03% 176.38% 128.49% 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15
APPENDIX
The subsequent tables present non-GAAP reconciliations of the following calculations: – Tangible Common Equity (TCE) to Tangible Assets (TA) ratio – Tangible Book Value per Share – Pre-tax, Pre-provision Income
TCA to TA and Tangible Book Value Per Share 2013 FY 2014 FY 2015 FY 2014 FQ4 2015 FQ1 2015 FQ2 2015 FQ3 2015 FQ4 12/31/13 12/31/14 12/31/15 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Total Equity $ 259,187 $ 270,786 $ 296,098 $ 270,786 $ 271,444 $ 273,681 $ 277,344 $ 296,098 Less Goodwill & Core Deposits 3,272 1,744 16,361 1,744 1,681 1,619 1,556 16,361 TCE $ 255,915 $ 269,042 $ 279,737 $ 269,042 $ 269,763 $ 272,062 $ 275,788 $ 279,737 Total Assets $ 1,981,423 $ 1,942,034 $ 2,357,022 $ 1,942,034 $ 2,003,079 $ 2,031,581 $ 2,059,899 $ 2,357,022 Less Goodwill & Core Deposits 3,272 1,744 16,361 1,744 1,681 1,619 1,556 16,361 TA $ 1,978,151 $ 1,940,290 $ 2,340,661 $ 1,940,290 $ 2,001,398 $ 2,029,962 $ 2,058,343 $ 2,340,661 Common Equity to Assets 13.08% 13.94% 12.56% 13.94% 13.55% 13.47% 13.46% 12.56% TCE to TA 12.94% 13.87% 11.95% 13.87% 13.48% 13.40% 13.40% 11.95% Shares outstanding 19,732,926 19,193,059 20,006,802 19,193,059 19,033,040 19,033,545 19,032,719 20,006,802 Book Value per Common Share $13.13 $14.11 $14.80 $14.11 $14.26 $14.38 $14.57 $14.80 Tangible BV per Share $12.97 $14.02 $13.98 $14.02 $14.17 $14.29 $14.49 $13.98 Pre-tax, Pre-provision Income 12/31/133/31/146/30/149/30/1412/31/143/31/156/30/159/30/1512/31/15Net Income6,832$ 3,691$ 6,152$ 5,288$ 5,899$ 4,535$ 4,161$ 4,122$ 4,589$ Taxes on Income4,310 2,214 3,691 3,172 3,540 2,720 2,193 2,303 2,577 Provision(6,502) (986) (355) (2,897) (2,386) (1,887) (1,136) 23 (566) Pre-tax, Pre-Provision Income4,640$ 4,919$ 9,488$ 5,563$ 7,053$ 5,368$ 5,218$ 6,448$ 6,600$ Gain on sale of bank branches4,378$ Gain on sale of private equity security1,120$ Adjusted Pre-tax, Pre-Provision Income5,110$ 5,933$ Dollars in thousands, except per share amounts.
2015 Fourth Quarter Earnings Presentation NASDAQ: OKSB January 20, 2016
4)(4C=V
M*U0X1G$R6O]#].\"HGED=:S9X?MS-
*X65V5>Z@R)1DM)<$7](NR_=8;VM=T?,_O['Y,IN50=?,(
MT[HG#E(Y\F:JOP2MV;DD5TN3(G(^RMHWR2X/U023/@S,BY'Y1,XE9CW#SN X
MZEV#@-+B.#U!E^*(L>CCY)8M*_+R;R/)IQ?V./[ #DOE)SB5F7/(#KJ78&
M 4F(8/3F7XHBQZ*-DMBTK\2)3>29/.+^QQ^?H*Y0CU 1X#=Q_$5I2#UY^,'H
M;J:'#3 ?HNKNH[K((R67(Y)S3/,4@;!SUTV74MO(5)S;*;!T_-*5F:S-1$KD
MBN>]3\-8P#K3HW%66287!UGBDR>V2%-D5S>U;%_>J\%$E9&Y9N
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M9E-H47#;[3[#,EXR/ 9(@
M U4_P!RK\B':\PG9G -']L=XX+K74=9J76U1CFIMQ;&P7
M&*^ZK=68G>YW&D5&,9%4UDB^A; R*TC3'_:]PUL$TI1DT0J]_(SV V8QVWV1
M185M/-:3',4C8KCL2NQ7+LAI*QB;&QBJG7C;D2LL(L9R2/$S
M/Q(!5P^1[L%LQGMULFAPK:F;4F.8G&Q3'(E=BN7Y#1UC$V-B]5.O&W(E;818
MSDYF_L)3;SGCY%G7':V*V:3)+R)+Q*6EYOPCR^#?X3]H?+
MYO2S8FVUCK/JEJ"=42-][=ALQW+QY=B3LJKU=J^+/8DP;'8V4Q8JUKE2&G:[
M'J\E3I:'W50*ZR\ Z4=-,F[9YO)0]*D8WJW$GXCF=98RAM4U9R"6[%QG&6GT
M.,R,ALVVE&;KB51X#'+SI+4;$>0&/_27IADW;;-Y*'I4C&]68D_$
ZZZEE!6--C=E/KD^XKT);LU
MAM*2X,S49$1&9D0T