EX-99.1 2 oksb-20170725xex99_1.htm EX-99.1 ER_Q22017

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 Results for Second Quarter 2017 

and Announces Quarterly Dividend

July 25, 2017, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market - OKSB), (“Southwest”), today reported net income for the second quarter of 2017 of  $5.8 million, or $0.31 per diluted share, compared to $5.4 million, or $0.28 per diluted share, for the second quarter of 2016. Net income for the six months ended June 30, 2017 totaled $11.1 million, or $0.59 per diluted share, compared to $7.3 million, or $0.38 per diluted share, for the six months ended June 30, 2016.  The increase was attributable to stronger revenues and improved efficiency.

Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable August 18, 2017 to shareholders of record as of August 4, 2017.

Mark Funke, President and CEO, stated, “We are pleased with the improvement in the second quarter’s earnings. Our good loan growth boosted revenues while expenses remained flat.” 

Highlights to take from this quarter:

·

Total loans grew $35.2 million to $1.97 billion from first quarter of 2017 and $150.3 million, or 8%, compared to the second quarter of 2016.

·

The quarterly net interest margin was 3.53%  at June 30,  2017, compared to 3.43% at March 31,  2017 and 3.48% at June 30, 2016.

·

Pre-tax, pre-provision income was $10.8 million in the second quarter, an increase of 15% from  $9.4 million in the first quarter of 2017 and an increase of 34% from $8.0 million in the second quarter of 2016.

·

The efficiency ratio for the second quarter of 2017 was 57.77%, compared to 63.30% for the first quarter of 2017 and 65.70% for the second quarter of 2016.

 “Diluted earnings per share of $0.31 was up 11% from the same quarter a year ago. 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.”

See Table 3 for details on pre-tax, pre-provision income, which is a non-GAAP measure.



Pending Merger Update

Southwest previously announced a definitive agreement and plan of merger with and into Simmons First National Corporation (NASDAQ-GS: SFNC). The merger application for this transaction was filed on July 14, 2017.   Conversion and integration plans are in process. Subject to regulatory approval and the satisfaction of other closing conditions, Southwest anticipates a closing date as early as October 2017 or as late as January 2018.



 

 

Financial Overview

Condition:    As of June 30, 2017, total assets were $2.6 billion, an increase of $50.3 million, when compared to March 31, 2017. As of June 30, 2017, total loans were $1.97 billion, an increase of $35.2 million from the prior quarter end. As of June 30, 2017,  investment securities were $434.4 million, an increase of $1.4 million from the prior quarter end. Cash and cash equivalents at June 30, 2017 were $79.8 million,  an increase of $14.7 million from March 31, 2017. 

At June 30, 2017, the allowance for loan losses was $27.3 million, a decrease of  $0.2 million when compared to March 31,  2017 and an increase of  $0.4 million when compared to June 30, 2016.  The allowance for loan losses to portfolio loans was 1.39%  as of June 30, 2017,  down from 1.43% as of March 31, 2017,  and from 1.48% as of June 30,  2016.  The allowance for loan losses to nonperforming loans was 118.46%  as of June 30, 2017, compared to 166.01% as of March 31,  2017 and 120.39% as of June 30,  2016. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.53% of gross loans as of June 30, 2017, compared to 1.63% as of March 31,  2017.  

Nonperforming loans were  $23.1  million at June 30, 2017, an increase of $6.5 million from March 31,  2017, and an increase of $0.7 million from June 30,  2016. There was no other real estate at June 30, 2017, compared to other real estate of $0.4 million at March 31,  2017 and $2.1 million at June 30,  2016.  Nonperforming assets were $23.1 million, or 1.17% of portfolio loans and other real estate, as of June 30, 2017, compared to $16.9 million, or 0.88% of portfolio loans and other real estate, as of March 31,  2017, and $24.4 million, or 1.35% of portfolio loans and other real estate, as of June 30,  2016.  

As of June 30, 2017, total deposits were $2.0 billion, an increase of $36.6 million,  when compared to March 31,  2017. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 78% and 79% of total funding as of June 30, 2017 and March 31,  2017, respectively.  Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 22%  of total funding at June 30, 2017 and 21% of total funding at March 31,  2017.  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 June 30, 2017 exceeded the criteria for regulatory classification as “well-capitalized.” Southwest’s total regulatory capital was $354.7 million, for a total risk-based capital ratio of 15.48%, Common Equity Tier 1 capital was $280.9 million, for a Common Equity Tier 1 ratio of 12.26%, and Tier 1 capital was $325.9 million, for a Tier 1 risk-based capital ratio of 14.23%. Bank SNB had total regulatory capital of $341.0 million, for a total risk-based capital ratio of 14.91% and Common Equity Tier 1 and Tier 1 capital of $312.3 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.66%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.



Second Quarter Results:

Summary:  For the second quarter of 2017, net income was $5.8 million, compared to $5.3 million for the first quarter of 2017 and $5.4 million for the second quarter of 2016.  Pre-tax, pre-provision income for the second quarter of 2017 was $10.8 million, compared to $9.4 million for the first quarter of 2017 and $8.0 million for the second quarter of 2016.

The $0.5 million increase in  net income compared to the first quarter of 2017 includes a $1.2 million increase in net interest income and a $0.1 million decrease in noninterest expense,  offset in part by a $0.4 million decrease in noninterest income, and a $0.5 million increase in income taxes. 

The  $0.4 million increase in net income compared to the second quarter of 2016 was due to a $1.7 million increase in net interest income, a $0.7 million increase in noninterest income,  and a $0.1 million decrease in noninterest expense, offset in part by a  $1.7 million increase in the provision for loan losses and a $0.3 million increase in income taxes.

Net Interest Income:    Net interest income totaled $21.4 million for the second quarter of 2017, compared to $20.2 million for the first quarter of 2017 and $19.7 million for the second quarter of 2016. Net interest margin was 3.53% for the second quarter of 2017, compared to 3.43% for the first quarter of 2017 and 3.48% for the second quarter of 2016. Included in interest income for the second quarter of 2017, the first quarter of 2017, and the second

 

quarter of 2016 was $0.4 million, $0.3 million, and $0.2 million of accelerated discount accretion, respectively. The net effects of these adjustments on the net interest margins  were  a 7 basis point, a 5 basis point, and a 3 basis point increase, respectively, for each quarter. Average loans (including loans held for sale) for the second quarter of 2017 increased $41.6 million when compared to March 31,  2017, and $141.1 million when compared to June 30,  2016. Loan growth combined with the March 2017 interest rate increase provided growth in interest income during the second quarter of 2017. 

Provision 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 $1.7 million for the second quarter of 2017, compared to a provision of $1.8 million for the first quarter of 2017, and a  provision of $10,000 for the second quarter of 2016.  The second quarter 2017 provision was driven primarily by loan growth and an increase in reserves on a few classified loans.  During the second quarter of 2017,  net charge-offs totaled $1.9 million, or 0.40% (annualized) of average portfolio loans, compared to net charge-offs of $1.8 million, or 0.38% (annualized) of average portfolio loans, for the first quarter of 2017 and net charge-offs of $0.3 million, or 0.07% (annualized) of average portfolio loans, for the second quarter of 2016.    

Noninterest Income:  Noninterest income totaled $4.5 million for the second quarter of 2017, compared to $4.9 million for the first quarter of 2017 and $3.9 million for the second quarter of 2016.    

The $0.4 million decrease from the first quarter of 2017 is primarily the result of a  $0.4 million decrease in the gain on sale/call of investment securities. 

The $0.7 million increase from the second quarter of 2016 is the result of a  $0.2 million increase in service charges and fees and a $0.6 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income, offset in part by a $0.2 million decrease in the gain on sale/call of investment securities.

Noninterest Expense:    Noninterest expense totaled $15.2 million for the second quarter of 2017, compared to $15.3 million for both the first quarter of 2017 and the second quarter of 2016. 

The $0.1 million decrease  in noninterest expense from the first quarter of 2017 was primarily due to a $0.2 million decrease in salaries and employee benefits and a $0.4 million decrease in general and administrative expenses, offset in part by a  $0.4 million increase in the provision for unfunded loan commitments. 

The $0.1 million decrease in noninterest expense from the second quarter of 2016 was primarily due to a $0.4 million decrease in occupancy, offset in part by a  $0.3 million increase in the provision for unfunded loan commitments. 

Income Tax:  Income tax expense totaled  $3.2 million for the second quarter of 2017, compared to  $2.7 million for the first quarter of 2017 and $2.9 million for the second quarter of 2016.  The income tax expense fluctuates in relation to pre-tax income levels. The second quarter of 2017 effective tax rate was 35.41%, compared to 33.71% for the first quarter of 2017 and 34.70% for the second quarter of 2016. The increase in the effective tax rate from the first quarter of 2017 includes a reduction in the tax benefit of vested stock awards.



Year-to-Date Results:

Summary:  Net income was $11.1 million for the six months ended June 30, 2017, compared to $7.3 million for the six months ended June 30, 2016.  The $3.8 million increase in net income from 2016 is the result of a $2.0 million increase in net interest income, a $2.1 million increase in noninterest income,  a $0.9 million decrease in the provision for loan losses, and a $0.8 million decrease in noninterest expense, offset in part by a $2.0 million increase in income taxes.

Net Interest Income:    Net interest income totaled $41.5 million for the first six months of 2017, compared to $39.5 million for the first six months of 2016,  an increase of $2.0 million.  Year-to-date net interest margin was 3.48% for the first six months of 2017 and 3.51% for the first six months of 2016.  Included in interest income for the first six months of 2017 and the first six months of 2016 was $0.7 million and $0.5 million of accelerated discount accretion, respectively. The net effect on the net interest margin was a  6 basis point and a 4 basis point increase, respectively, for each six-month period.  For the first six months of 2017, net interest margin was also reduced by an increase in the

 

cost of deposits and other borrowings. Average loans (including loans held for sale) as of June 30, 2017 increased $125.7 million when compared to June 30, 2016. Loan growth combined with the recent interest rate increases provided growth in our loan interest income.

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 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 $3.5 million for the first six months of 2017, compared to a provision of $4.4 million for the first six months of 2016.  The provision for loans losses for the first six months of 2017 was driven primarily by loan growth and an increase in reserves on a few classified loans. Net charge-offs totaled $3.7 million, or 0.39% (annualized) of average portfolio loans year-to-date as of June 30, 2017, compared to net charge-offs of $3.6 million, or 0.41% (annualized) of average portfolio loans for the same period in 2016.   

Noninterest Income:  Noninterest income totaled $9.4 million for the first six months of 2017, compared to $7.3 million for the first six months of 2016. The $2.1 million increase consists of a  $0.4 million increase in service charges and fees,  a  $0.1 million increase in gains on sales of mortgage loans, a $0.2 million increase in the gain on sale of investment securities driven by a first quarter of 2017 sale of a private equity investment, and a  $1.4 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income. 

Noninterest Expense:    Noninterest expense totaled $30.5 million for the first six months of 2017, compared to $31.3 million for the first six months of 2016.  The $0.8 million decrease consists of a  $0.6 million decrease in occupancy, a $0.3 million decrease in FDIC and other insurance, a $0.3 million increase in the credit provision for unfunded loan commitments, and a $0.2 million decrease in general and administrative expense, offset in part by a  $0.6 million increase in salaries and employee benefits.

Income Tax:  Income tax expense totaled $5.9 million for the first six months of 2017, compared to $3.9 million for the first six months of 2016.  The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 34.61% as of June 30, 2017, compared to 34.83% as of June 30, 2016.  





Conference Call

Southwest will host a conference call to review these results on Wednesday, July 26, 2017 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN:  http://dpregister.com/10109903. 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/oksb170726. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international),  conference number 10109903. Telephone replay access will be available until August 26, 2017.



Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado.  Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company.  At June 30, 2017,  Southwest had total assets of approximately  $2.6 billion, deposits of $2.0 billion, and shareholders’ equity of $295.5 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 June 30, 2017, approximately

 

$429.5 million, or 22%, 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 our planned merger with Simmons First National Corporation;

·

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

·

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

·

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



These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2016. 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, 2017 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30,  2017 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-YTD

Table 5

Unaudited Quarterly Summary Loan Data

Table 6

Unaudited Quarterly Summary Financial Data

Table 7

Unaudited Quarterly Supplemental Analytical Data

Table 8



 

 



 

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

Table 1



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Second Quarter

 

First Quarter

QUARTERLY HIGHLIGHTS

 

2017

 

2016

 

% Change

 

2017

 

% Change

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

 21,370 

 

$

 19,695 

 

 9% 

 

$

 20,163 

 

 6% 

Provision for loan losses

 

 

 1,729 

 

 

 10 

 

 17,190 

 

 

 1,776 

 

 (3)

Noninterest income

 

 

 4,521 

 

 

 3,871 

 

 17 

 

 

 4,880 

 

 (7)

Noninterest expense

 

 

 15,155 

 

 

 15,268 

 

 (1)

 

 

 15,303 

 

 (1)

Income before taxes

 

 

 9,007 

 

 

 8,288 

 

 9 

 

 

 7,964 

 

 13 

Taxes on income

 

 

 3,189 

 

 

 2,876 

 

 11 

 

 

 2,685 

 

 19 

Net income

 

 

 5,818 

 

 

 5,412 

 

 8 

 

 

 5,279 

 

 10 

Diluted earnings per share

 

 

 0.31 

 

 

 0.28 

 

 11 

 

 

 0.28 

 

 11 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 2,572,935 

 

 

 2,402,262 

 

 7 

 

 

 2,522,594 

 

 2 

Loans held for sale

 

 

 6,036 

 

 

 7,090 

 

 (15)

 

 

 4,980 

 

 21 

Portfolio loans

 

 

 1,965,598 

 

 

 1,814,287 

 

 8 

 

 

 1,931,463 

 

 2 

Total deposits

 

 

 2,013,834 

 

 

 1,902,865 

 

 6 

 

 

 1,977,265 

 

 2 

Total shareholders' equity

 

 

 295,546 

 

 

 282,360 

 

 5 

 

 

 290,914 

 

 2 

Book value per common share

 

 

 15.82 

 

 

 15.06 

 

 5 

 

 

 15.57 

 

 2 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 3.53% 

 

 

 3.48% 

 

 

 

 

 3.43% 

 

 

Efficiency ratio

 

 

 57.77 

 

 

 65.70 

 

 

 

 

 63.30 

 

 

Total capital to risk-weighted assets

 

 

 15.48 

 

 

 15.56 

 

 

 

 

 15.44 

 

 

Nonperforming loans to portfolio loans

 

 

 1.17 

 

 

 1.23 

 

 

 

 

 0.86 

 

 

Shareholders' equity to total assets

 

 

 11.49 

 

 

 11.75 

 

 

 

 

 11.53 

 

 

Tangible common equity to tangible assets*

 

 

 10.95 

 

 

 11.16 

 

 

 

 

 10.98 

 

 

Return on average assets (annualized)

 

 

 0.92 

 

 

 0.91 

 

 

 

 

 0.86 

 

 

Return on average common equity (annualized)

 

 

 7.93 

 

 

 7.67 

 

 

 

 

 7.40 

 

 

Return on average tangible common equity (annualized)**

 

 

 8.37 

 

 

 8.13 

 

 

 

 

 7.83 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Six Months

 

 

 

 

 

YEAR-TO-DATE  HIGHLIGHTS

 

2017

 

2016

 

% Change

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

 41,533 

 

$

 39,535 

 

 5% 

 

 

 

 

 

Provision for loan losses

 

 

 3,505 

 

 

 4,385 

 

 (20)

 

 

 

 

 

Noninterest income

 

 

 9,401 

 

 

 7,286 

 

 29 

 

 

 

 

 

Noninterest expense

 

 

 30,458 

 

 

 31,264 

 

 (3)

 

 

 

 

 

Income before taxes

 

 

 16,971 

 

 

 11,172 

 

 52 

 

 

 

 

 

Taxes on income

 

 

 5,874 

 

 

 3,891 

 

 51 

 

 

 

 

 

Net income

 

 

 11,097 

 

 

 7,281 

 

 52 

 

 

 

 

 

Diluted earnings per share

 

 

 0.59 

 

 

 0.38 

 

 55 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 2,572,935 

 

 

 2,402,262 

 

 7 

 

 

 

 

 

Loans held for sale

 

 

 6,036 

 

 

 7,090 

 

 (15)

 

 

 

 

 

Portfolio loans

 

 

 1,965,598 

 

 

 1,814,287 

 

 8 

 

 

 

 

 

Total deposits

 

 

 2,013,834 

 

 

 1,902,865 

 

 6 

 

 

 

 

 

Total shareholders' equity

 

 

 295,546 

 

 

 282,360 

 

 5 

 

 

 

 

 

Book value per common share

 

 

 15.82 

 

 

 15.06 

 

 5 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 3.48% 

 

 

 3.51% 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 60.47 

 

 

 66.58 

 

 

 

 

 

 

 

Total capital to risk-weighted assets

 

 

 15.48 

 

 

 15.56 

 

 

 

 

 

 

 

Nonperforming loans to portfolio loans

 

 

 1.17 

 

 

 1.23 

 

 

 

 

 

 

 

Shareholders' equity to total assets

 

 

 11.49 

 

 

 11.75 

 

 

 

 

 

 

 

Tangible common equity to tangible assets*

 

 

 10.95 

 

 

 11.16 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

 0.89 

 

 

 0.62 

 

 

 

 

 

 

 

Return on average common equity (annualized)

 

 

 7.67 

 

 

 5.07 

 

 

 

 

 

 

 

Return on average tangible common equity (annualized)**

 

 

 8.10 

 

 

 5.38 

 

 

 

 

 

 

 

Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure.  Please see Table 7 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.

 

 



 

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

Table 2



 

 

 

 

 

 

 

 



June 30,

 

December 31,

 

June 30,



2017

 

2016

 

2016

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

$

 37,898 

 

$

 36,831 

 

$

 35,822 

Interest-bearing deposits

 

 41,941 

 

 

 38,819 

 

 

 32,266 

Cash and cash equivalents

 

 79,839 

 

 

 75,650 

 

 

 68,088 

Securities held to maturity (fair values of $10,632, $10,677 and $12,660, respectively)

 

 10,382 

 

 

 10,443 

 

 

 12,161 

Securities available for sale (amortized cost of $424,172, $427,113 and $406,427, respectively)

 

 424,031 

 

 

 426,218 

 

 

 410,135 

Loans held for sale

 

 6,036 

 

 

 4,386 

 

 

 7,090 

Loans receivable

 

 1,965,598 

 

 

 1,872,746 

 

 

 1,814,287 

Less: Allowance for loan losses

 

 (27,318)

 

 

 (27,546)

 

 

 (26,876)

Net loans receivable

 

 1,938,280 

 

 

 1,845,200 

 

 

 1,787,411 

Accrued interest receivable

 

 6,328 

 

 

 6,194 

 

 

 5,730 

Non-hedge derivative asset

 

 2,698 

 

 

 1,235 

 

 

 5,163 

Premises and equipment, net

 

 21,901 

 

 

 22,808 

 

 

 22,971 

Other real estate

 

 0 

 

 

 350 

 

 

 2,122 

Goodwill

 

 13,545 

 

 

 13,545 

 

 

 13,467 

Other intangible assets, net

 

 5,727 

 

 

 5,790 

 

 

 5,934 

Other assets

 

 64,168 

 

 

 63,573 

 

 

 61,990 

Total assets

$

 2,572,935 

 

$

 2,475,392 

 

$

 2,402,262 



 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

 557,159 

 

$

 551,709 

 

$

 545,421 

Interest-bearing demand

 

 176,724 

 

 

 152,656 

 

 

 160,886 

Money market accounts

 

 599,122 

 

 

 567,058 

 

 

 547,415 

Savings accounts

 

 57,905 

 

 

 56,410 

 

 

 55,209 

Time deposits of $100,000 or more

 

 403,918 

 

 

 360,307 

 

 

 323,137 

Other time deposits

 

 219,006 

 

 

 257,878 

 

 

 270,797 

Total deposits

 

 2,013,834 

 

 

 1,946,018 

 

 

 1,902,865 

Accrued interest payable

 

 1,259 

 

 

 1,132 

 

 

 931 

Non-hedge derivative liability

 

 2,698 

 

 

 1,235 

 

 

 5,163 

Other liabilities

 

 9,500 

 

 

 10,171 

 

 

 10,982 

Other borrowings

 

 203,705 

 

 

 183,814 

 

 

 153,568 

Subordinated debentures

 

 46,393 

 

 

 46,393 

 

 

 46,393 

Total liabilities 

 

 2,277,389 

 

 

 2,188,763 

 

 

 2,119,902 



 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

21,260,352, 21,230,714 and 21,223,613 shares issued, respectively

 

 21,260 

 

 

 21,231 

 

 

 21,224 

Additional paid-in capital

 

 123,772 

 

 

 123,112 

 

 

 122,293 

Retained earnings

 

 192,961 

 

 

 184,840 

 

 

 177,373 

Accumulated other comprehensive (loss) gain

 

 (292)

 

 

 (907)

 

 

 1,503 

Treasury stock, at cost, 2,574,079, 2,555,987 and 2,472,830 shares, respectively

 

 (42,155)

 

 

 (41,647)

 

 

 (40,033)

Total shareholders' equity

 

 295,546 

 

 

 286,629 

 

 

 282,360 

Total liabilities and shareholders' equity

$

 2,572,935 

 

$

 2,475,392 

 

$

 2,402,262 



 

 



 

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,



2017

 

2017

 

2016

 

2017

 

2016

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

 22,562 

 

$

 20,944 

 

$

 20,031 

 

$

 43,506 

 

$

 40,061 

Investment securities

 

 2,035 

 

 

 2,052 

 

 

 1,962 

 

 

 4,087 

 

 

 3,927 

Other interest-earning assets

 

 111 

 

 

 75 

 

 

 51 

 

 

 186 

 

 

 104 

Total interest income

 

 24,708 

 

 

 23,071 

 

 

 22,044 

 

 

 47,779 

 

 

 44,092 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 2,124 

 

 

 1,840 

 

 

 1,428 

 

 

 3,964 

 

 

 2,735 

Other borrowings

 

 610 

 

 

 478 

 

 

 342 

 

 

 1,088 

 

 

 651 

Subordinated debentures

 

 604 

 

 

 590 

 

 

 579 

 

 

 1,194 

 

 

 1,171 

Total interest expense

 

 3,338 

 

 

 2,908 

 

 

 2,349 

 

 

 6,246 

 

 

 4,557 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 21,370 

 

 

 20,163 

 

 

 19,695 

 

 

 41,533 

 

 

 39,535 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 1,729 

 

 

 1,776 

 

 

 10 

 

 

 3,505 

 

 

 4,385 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

 19,641 

 

 

 18,387 

 

 

 19,685 

 

 

 38,028 

 

 

 35,150 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 2,800 

 

 

 2,681 

 

 

 2,556 

 

 

 5,481 

 

 

 5,105 

Gain on sales of mortgage loans

 

 695 

 

 

 552 

 

 

 722 

 

 

 1,247 

 

 

 1,123 

Gain on sale/call of investment securities, net

 

 -

 

 

 451 

 

 

 165 

 

 

 451 

 

 

 291 

Other noninterest income

 

 1,026 

 

 

 1,196 

 

 

 428 

 

 

 2,222 

 

 

 767 

Total noninterest income

 

 4,521 

 

 

 4,880 

 

 

 3,871 

 

 

 9,401 

 

 

 7,286 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 9,675 

 

 

 9,900 

 

 

 9,587 

 

 

 19,575 

 

 

 18,929 

Occupancy

 

 2,318 

 

 

 2,373 

 

 

 2,669 

 

 

 4,691 

 

 

 5,340 

Data processing

 

 459 

 

 

 409 

 

 

 430 

 

 

 868 

 

 

 900 

FDIC and other insurance

 

 273 

 

 

 273 

 

 

 432 

 

 

 546 

 

 

 800 

Other real estate, net

 

 50 

 

 

 3 

 

 

 8 

 

 

 53 

 

 

 21 

Provision (credit) for unfunded loan commitments

 

 30 

 

 

 (388)

 

 

 (263)

 

 

 (358)

 

 

 (48)

General and administrative

 

 2,350 

 

 

 2,733 

 

 

 2,405 

 

 

 5,083 

 

 

 5,322 

Total noninterest expense

 

 15,155 

 

 

 15,303 

 

 

 15,268 

 

 

 30,458 

 

 

 31,264 

Income before taxes

 

 9,007 

 

 

 7,964 

 

 

 8,288 

 

 

 16,971 

 

 

 11,172 

Taxes on income

 

 3,189 

 

 

 2,685 

 

 

 2,876 

 

 

 5,874 

 

 

 3,891 

Net income

$

 5,818 

 

$

 5,279 

 

$

 5,412 

 

$

 11,097 

 

$

 7,281 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income*

$

 10,766 

 

$

 9,352 

 

$

 8,035 

 

$

 20,118 

 

$

 15,509 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

 0.31 

 

$

 0.28 

 

$

 0.29 

 

$

 0.59 

 

$

 0.38 

Diluted earnings per common share

 

 0.31 

 

 

 0.28 

 

 

 0.28 

 

 

 0.59 

 

 

 0.38 

Common dividends declared per share

 

 0.08 

 

 

 0.08 

 

 

 0.08 

 

 

 0.16 

 

 

 0.16 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a non-GAAP financial measure.  Pre-tax, pre-provision income is calculated as follows: 

 

 

 

 

 

 

 

Net income + Taxes on income + Provision (credit) for loan losses + Provision (credit) for unfunded loan commitments

 

 

 

 

 

 



 

 



 

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

Table 4



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended



June 30, 2017

 

March 31, 2017

 

June 30, 2016



Average

 

Average

 

Average

 

Average

 

Average

 

Average



Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

 1,940,684 

 

 4.66% 

 

$

 1,899,047 

 

 4.47% 

 

$

 1,799,591 

 

 4.48% 

Investment securities

 

 435,091 

 

 1.88 

 

 

 431,542 

 

 1.93 

 

 

 428,275 

 

 1.84 

Other interest-earning assets

 

 54,634 

 

 0.81 

 

 

 56,089 

 

 0.54 

 

 

 48,569 

 

 0.42 

Total interest-earning assets

 

 2,430,409 

 

 4.08 

 

 

 2,386,678 

 

 3.92 

 

 

 2,276,435 

 

 3.89 

Other assets

 

 101,033 

 

 

 

 

 102,331 

 

 

 

 

 103,566 

 

 

Total assets

$

 2,531,442 

 

 

 

$

 2,489,009 

 

 

 

$

 2,380,001 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

 178,206 

 

 0.20% 

 

$

 187,269 

 

 0.19% 

 

$

 165,011 

 

 0.16% 

Money market accounts

 

 598,346 

 

 0.55 

 

 

 573,364 

 

 0.33 

 

 

 537,734 

 

 0.25 

Savings accounts

 

 57,749 

 

 0.13 

 

 

 58,021 

 

 0.13 

 

 

 54,808 

 

 0.13 

Time deposits

 

 616,870 

 

 0.78 

 

 

 611,170 

 

 0.84 

 

 

 589,029 

 

 0.69 

Total interest-bearing deposits

 

 1,451,171 

 

 0.59 

 

 

 1,429,824 

 

 0.52 

 

 

 1,346,582 

 

 0.43 

Other borrowings

 

 180,920 

 

 1.35 

 

 

 174,362 

 

 1.11 

 

 

 141,623 

 

 0.97 

Subordinated debentures

 

 46,393 

 

 5.21 

 

 

 46,393 

 

 5.09 

 

 

 46,393 

 

 4.99 

Total interest-bearing liabilities

 

 1,678,484 

 

 0.80 

 

 

 1,650,579 

 

 0.71 

 

 

 1,534,598 

 

 0.62 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 545,896 

 

 

 

 

 536,101 

 

 

 

 

 547,963 

 

 

Other liabilities

 

 12,630 

 

 

 

 

 13,070 

 

 

 

 

 13,598 

 

 

Shareholders' equity

 

 294,432 

 

 

 

 

 289,259 

 

 

 

 

 283,842 

 

 

Total liabilities and shareholders' equity

$

 2,531,442 

 

 

 

$

 2,489,009 

 

 

 

$

 2,380,001 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 

 3.28% 

 

 

 

 

 3.21% 

 

 

 

 

 3.27% 

Net interest margin (1)

 

 

 

 3.53% 

 

 

 

 

 3.43% 

 

 

 

 

 3.48% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 

 144.80% 

 

 

 

 

 144.60% 

 

 

 

 

 148.34% 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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,



2017

 

2016



Average

 

Average

 

Average

 

Average



Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

Loans

$

 1,919,981 

 

 4.57% 

 

$

 1,794,291 

 

 4.49% 

Investment securities

 

 433,326 

 

 1.90 

 

 

 420,291 

 

 1.88 

Other interest-earning assets

 

 55,358 

 

 0.68 

 

 

 49,800 

 

 0.42 

Total interest-earning assets

 

 2,408,665 

 

 4.00 

 

 

 2,264,382 

 

 3.92 

Other assets

 

 101,679 

 

 

 

 

 105,720 

 

 

Total assets

$

 2,510,344 

 

 

 

$

 2,370,102 

 

 



 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

 182,712 

 

 0.20% 

 

$

 162,825 

 

 0.16% 

Money market accounts

 

 585,924 

 

 0.44 

 

 

 540,267 

 

 0.24 

Savings accounts

 

 57,884 

 

 0.13 

 

 

 55,321 

 

 0.13 

Time deposits

 

 614,037 

 

 0.81 

 

 

 576,621 

 

 0.67 

Total interest-bearing deposits

 

 1,440,557 

 

 0.55 

 

 

 1,335,034 

 

 0.41 

Other borrowings

 

 177,659 

 

 1.23 

 

 

 129,397 

 

 1.01 

Subordinated debentures

 

 46,393 

 

 5.15 

 

 

 47,469 

 

 4.93 

Total interest-bearing liabilities

 

 1,664,609 

 

 0.76 

 

 

 1,511,900 

 

 0.61 



 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 541,025 

 

 

 

 

 555,493 

 

 

Other liabilities

 

 12,850 

 

 

 

 

 14,184 

 

 

Shareholders' equity

 

 291,860 

 

 

 

 

 288,525 

 

 

Total liabilities and shareholders' equity

$

 2,510,344 

 

 

 

$

 2,370,102 

 

 



 

 

 

 

 

 

 

 

 

Net interest income and spread

 

 

 

 3.24% 

 

 

 

 

 3.31% 

Net interest margin (1)

 

 

 

 3.48% 

 

 

 

 

 3.51% 

Average interest-earning assets

 

 

 

 

 

 

 

 

 

to average interest-bearing liabilities

 

 144.70% 

 

 

 

 

 149.77% 

 

 



 

 

 

 

 

 

 

 

 

(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



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2017

 

2016



Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

LOAN COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

 961,085 

 

$

 925,458 

 

$

 882,071 

 

$

 893,807 

 

$

 862,287 

 

$

 878,822 

One-to-four family residential

 

 241,140 

 

 

 210,495 

 

 

 199,123 

 

 

 193,678 

 

 

 183,693 

 

 

 158,078 

Real estate construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 182,620 

 

 

 193,937 

 

 

 199,113 

 

 

 184,211 

 

 

 175,805 

 

 

 156,454 

One-to-four family residential

 

 14,523 

 

 

 18,426 

 

 

 20,946 

 

 

 22,460 

 

 

 20,347 

 

 

 24,202 

Commercial

 

 554,094 

 

 

 570,001 

 

 

 556,248 

 

 

 566,403 

 

 

 558,472 

 

 

 543,822 

Installment and consumer

 

 18,172 

 

 

 18,126 

 

 

 19,631 

 

 

 19,553 

 

 

 20,773 

 

 

 20,506 

Total loans, including held for sale

 

 1,971,634 

 

 

 1,936,443 

 

 

 1,877,132 

 

 

 1,880,112 

 

 

 1,821,377 

 

 

 1,781,884 

Less allowance for loan losses

 

 (27,318)

 

 

 (27,543)

 

 

 (27,546)

 

 

 (28,452)

 

 

 (26,876)

 

 

 (27,168)

Total loans, net

$

 1,944,316 

 

$

 1,908,900 

 

$

 1,849,586 

 

$

 1,851,660 

 

$

 1,794,501 

 

$

 1,754,716 

LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking****

$

 1,193,108 

 

$

 1,153,417 

 

$

 1,095,930 

 

$

 1,117,716 

 

$

 1,085,986 

 

$

 1,060,482 

Texas banking

 

 636,709 

 

 

 639,945 

 

 

 636,643 

 

 

 605,682 

 

 

 577,333 

 

 

 560,421 

Kansas banking

 

 141,817 

 

 

 143,081 

 

 

 144,559 

 

 

 156,714 

 

 

 158,058 

 

 

 160,981 

Total loans

$

 1,971,634 

 

$

 1,936,443 

 

$

 1,877,132 

 

$

 1,880,112 

 

$

 1,821,377 

 

$

 1,781,884 

NONPERFORMING LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 579 

 

$

 970 

 

$

 970 

 

$

 1,073 

 

$

 1,436 

 

$

 1,444 

Commercial real estate

 

 6,694 

 

 

 570 

 

 

 6,471 

 

 

 7,620 

 

 

 3,894 

 

 

 3,830 

Commercial

 

 12,884 

 

 

 12,183 

 

 

 6,142 

 

 

 12,791 

 

 

 13,800 

 

 

 13,461 

One-to-four family residential

 

 2,797 

 

 

 2,838 

 

 

 2,904 

 

 

 2,982 

 

 

 3,120 

 

 

 3,448 

Consumer

 

 106 

 

 

 30 

 

 

 123 

 

 

 58 

 

 

 75 

 

 

 84 

Total nonperforming loans

$

 23,060 

 

$

 16,591 

 

$

 16,610 

 

$

 24,524 

 

$

 22,325 

 

$

 22,267 

NONPERFORMING LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

 12,920 

 

$

 7,479 

 

$

 12,006 

 

$

 12,275 

 

$

 9,268 

 

$

 7,978 

Texas banking

 

 10,035 

 

 

 8,987 

 

 

 4,140 

 

 

 11,805 

 

 

 12,586 

 

 

 13,521 

Kansas banking

 

 105 

 

 

 125 

 

 

 464 

 

 

 444 

 

 

 471 

 

 

 768 

Total nonperforming loans

$

 23,060 

 

$

 16,591 

 

$

 16,610 

 

$

 24,524 

 

$

 22,325 

 

$

 22,267 

OTHER REAL ESTATE BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 -

 

$

 -

 

$

 -

 

$

 1,756 

 

$

 1,962 

 

$

 2,060 

Commercial real estate

 

 -

 

 

 350 

 

 

 350 

 

 

 350 

 

 

 160 

 

 

 214 

Total other real estate

$

 -

 

$

 350 

 

$

 350 

 

$

 2,106 

 

$

 2,122 

 

$

 2,274 

OTHER REAL ESTATE BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 220 

 

$

 274 

Texas banking

 

 -

 

 

 350 

 

 

 350 

 

 

 2,106 

 

 

 1,902 

 

 

 2,000 

Total other real estate

$

 -

 

$

 350 

 

$

 350 

 

$

 2,106 

 

$

 2,122 

 

$

 2,274 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

****Due to immateriality, Colorado banking is included within Oklahoma banking.

Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 



 



 

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

Table 6
Continued



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2017

 

2016



Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

POTENTIAL PROBLEM LOANS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 591 

 

$

 588 

 

$

 589 

 

$

 588 

 

$

 -

 

$

 -

Commercial real estate

 

 9,059 

 

 

 12,167 

 

 

 13,831 

 

 

 12,212 

 

 

 33,472 

 

 

 36,216 

Commercial

 

 17,852 

 

 

 27,372 

 

 

 27,621 

 

 

 30,555 

 

 

 29,537 

 

 

 29,931 

One-to-four family residential

 

 1,194 

 

 

 1,954 

 

 

 1,980 

 

 

 2,119 

 

 

 1,353 

 

 

 2,275 

Consumer

 

 -

 

 

 2 

 

 

 2 

 

 

 2 

 

 

 2 

 

 

 38 

Total potential problem loans

$

 28,696 

 

$

 42,083 

 

$

 44,023 

 

$

 45,476 

 

$

 64,364 

 

$

 68,460 

POTENTIAL PROBLEM LOANS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking****

$

 15,785 

 

$

 22,001 

 

$

 20,258 

 

$

 21,780 

 

$

 43,895 

 

$

 46,102 

Texas banking

 

 10,762 

 

 

 16,346 

 

 

 19,807 

 

 

 21,029 

 

 

 17,726 

 

 

 18,801 

Kansas banking

 

 2,149 

 

 

 3,736 

 

 

 3,958 

 

 

 2,667 

 

 

 2,743 

 

 

 3,557 

Total potential problem loans

$

 28,696 

 

$

 42,083 

 

$

 44,023 

 

$

 45,476 

 

$

 64,364 

 

$

 68,460 

ALLOWANCE ACTIVITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

 27,543 

 

$

 27,546 

 

$

 28,452 

 

$

 26,876 

 

$

 27,168 

 

$

 26,106 

Charge-offs

 

 2,241 

 

 

 2,157 

 

 

 2,108 

 

 

 626 

 

 

 538 

 

 

 3,725 

Recoveries

 

 287 

 

 

 378 

 

 

 2,531 

 

 

 489 

 

 

 236 

 

 

 412 

Net charge-offs (recoveries)

 

 1,954 

 

 

 1,779 

 

 

 (423)

 

 

 137 

 

 

 302 

 

 

 3,313 

Provision (credit) for loan losses

 

 1,729 

 

 

 1,776 

 

 

 (1,329)

 

 

 1,713 

 

 

 10 

 

 

 4,375 

Balance, end of period

$

 27,318 

 

$

 27,543 

 

$

 27,546 

 

$

 28,452 

 

$

 26,876 

 

$

 27,168 

NET CHARGE-OFFS BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & development

$

 (5)

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

Commercial real estate

 

 (34)

 

$

 1,847 

 

$

 (84)

 

$

 108 

 

$

 (44)

 

$

 (187)

Commercial

 

 1,953 

 

 

 (105)

 

 

 (357)

 

 

 (64)

 

 

 82 

 

 

 3,408 

One-to-four family residential

 

 (17)

 

 

 (55)

 

 

 (16)

 

 

 44 

 

 

 (12)

 

 

 41 

Consumer

 

 57 

 

 

 92 

 

 

 34 

 

 

 49 

 

 

 276 

 

 

 51 

Total net charge-offs (recoveries) by type

$

 1,954 

 

$

 1,779 

 

$

 (423)

 

$

 137 

 

$

 302 

 

$

 3,313 

NET CHARGE-OFFS BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oklahoma banking

$

 1,095 

 

$

 1,950 

 

$

 (178)

 

$

 34 

 

$

 127 

 

$

 458 

Texas banking

 

 899 

 

 

 12 

 

 

 (168)

 

 

 180 

 

 

 211 

 

 

 952 

Kansas banking

 

 (40)

 

 

 (183)

 

 

 (77)

 

 

 (77)

 

 

 (36)

 

 

 1,903 

Total net charge-offs (recoveries) by segment

$

 1,954 

 

$

 1,779 

 

$

 (423)

 

$

 137 

 

$

 302 

 

$

 3,313 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

****Due to immateriality, Colorado banking is included within Oklahoma banking.



















 

 



 



 

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

Table 7



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2017

 

2016



Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

 0.31 

 

$

 0.28 

 

$

 0.33 

 

$

 0.23 

 

$

 0.29 

 

$

 0.10 

Diluted earnings per common share

 

 0.31 

 

 

 0.28 

 

 

 0.33 

 

 

 0.23 

 

 

 0.28 

 

 

 0.10 

Common dividends declared per share

 

 0.08 

 

 

 0.08 

 

 

 0.08 

 

 

 0.08 

 

 

 0.08 

 

 

 0.08 

Book value per common share

 

 15.82 

 

 

 15.57 

 

 

 15.35 

 

 

 15.19 

 

 

 15.06 

 

 

 14.81 

Tangible book value per share*

 

 14.98 

 

 

 14.72 

 

 

 14.50 

 

 

 14.33 

 

 

 14.20 

 

 

 13.97 

COMMON STOCK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

 21,260,352 

 

 

 21,275,434 

 

 

 21,230,714 

 

 

 21,223,895 

 

 

 21,223,613 

 

 

 21,225,034 

Less treasury shares

 

 2,574,079 

 

 

 2,586,412 

 

 

 2,555,987 

 

 

 2,538,510 

 

 

 2,472,830 

 

 

 1,939,989 

Outstanding shares

 

 18,686,273 

 

 

 18,689,022 

 

 

 18,674,727 

 

 

 18,685,385 

 

 

 18,750,783 

 

 

 19,285,045 

Diluted outstanding shares

 

 18,492,739 

 

 

 18,532,499 

 

 

 18,551,005 

 

 

 18,545,614 

 

 

 18,677,912 

 

 

 19,267,473 

OTHER FINANCIAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

$

 434,413 

 

$

 433,053 

 

$

 436,661 

 

$

 427,938 

 

$

 422,296 

 

$

 423,030 

Loans held for sale

 

 6,036 

 

 

 4,980 

 

 

 4,386 

 

 

 7,899 

 

 

 7,010 

 

 

 1,803 

Portfolio loans

 

 1,965,598 

 

 

 1,931,463 

 

 

 1,872,746 

 

 

 1,872,213 

 

 

 1,814,367 

 

 

 1,780,081 

Total loans

 

 1,971,634 

 

 

 1,936,443 

 

 

 1,877,132 

 

 

 1,880,112 

 

 

 1,821,377 

 

 

 1,781,884 

Total assets

 

 2,572,935 

 

 

 2,522,594 

 

 

 2,475,392 

 

 

 2,468,042 

 

 

 2,402,262 

 

 

 2,360,819 

Total deposits

 

 2,013,834 

 

 

 1,977,265 

 

 

 1,946,018 

 

 

 1,947,924 

 

 

 1,902,865 

 

 

 1,895,248 

Other borrowings

 

 203,705 

 

 

 194,645 

 

 

 183,814 

 

 

 173,971 

 

 

 153,568 

 

 

 117,763 

Subordinated debentures

 

 46,393 

 

 

 46,393 

 

 

 46,393 

 

 

 46,393 

 

 

 46,393 

 

 

 46,393 

Total shareholders' equity

 

 295,546 

 

 

 290,914 

 

 

 286,629 

 

 

 283,820 

 

 

 282,360 

 

 

 285,661 

Mortgage servicing portfolio

 

 463,849 

 

 

 458,961 

 

 

 460,646 

 

 

 453,988 

 

 

 443,568 

 

 

 434,340 

INTANGIBLE ASSET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

$

 13,545 

 

$

 13,545 

 

$

 13,545 

 

$

 13,545 

 

$

 13,467 

 

$

 13,467 

Core deposit intangible

 

 2,061 

 

 

 2,177 

 

 

 2,299 

 

 

 2,438 

 

 

 2,584 

 

 

 2,734 

Mortgage servicing rights

 

 3,666 

 

 

 3,516 

 

 

 3,491 

 

 

 3,381 

 

 

 3,350 

 

 

 3,411 

Total intangible assets

$

 19,272 

 

$

 19,238 

 

$

 19,335 

 

$

 19,364 

 

$

 19,401 

 

$

 19,612 

Intangible amortization expense

$

 197 

 

$

 229 

 

$

 275 

 

$

 344 

 

$

 350 

 

$

 341 

DEPOSIT COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

$

 557,159 

 

$

 541,021 

 

$

 551,709 

 

$

 550,121 

 

$

 545,421 

 

$

 552,499 

Interest-bearing demand

 

 176,724 

 

 

 177,676 

 

 

 152,656 

 

 

 146,583 

 

 

 160,886 

 

 

 168,210 

Money market accounts

 

 599,122 

 

 

 591,368 

 

 

 567,058 

 

 

 576,550 

 

 

 547,415 

 

 

 540,323 

Savings accounts

 

 57,905 

 

 

 58,387 

 

 

 56,410 

 

 

 54,849 

 

 

 55,209 

 

 

 56,235 

Time deposits of $100,000 or more

 

 403,918 

 

 

 353,244 

 

 

 360,307 

 

 

 347,976 

 

 

 323,137 

 

 

 314,496 

Other time deposits

 

 219,006 

 

 

 255,569 

 

 

 257,878 

 

 

 271,845 

 

 

 270,797 

 

 

 263,485 

Total deposits**

$

 2,013,834 

 

$

 1,977,265 

 

$

 1,946,018 

 

$

 1,947,924 

 

$

 1,902,865 

 

$

 1,895,248 

OFFICES AND EMPLOYEES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE Employees

 

 388 

 

 

 380 

 

 

 387 

 

 

 393 

 

 

 410 

 

 

 411 

Banking Centers

 

 30 

 

 

 30 

 

 

 30 

 

 

 30 

 

 

 32 

 

 

 32 

Loan production offices

 

 1 

 

 

 1 

 

 

 1 

 

 

 1 

 

 

 1 

 

 

 0 

Assets per employee

$

 6,631 

 

$

 6,638 

 

$

 6,396 

 

$

 6,280 

 

$

 5,859 

 

$

 5,744 

*This is a non-GAAP financial measure.

**Calculation of non-brokered deposits and core funding (non-GAAP financial measures)

Total deposits

$

 2,013,834 

 

$

 1,977,265 

 

$

 1,946,018 

 

$

 1,947,924 

 

$

 1,902,865 

 

$

 1,895,248 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokered time deposits

 

 84,229 

 

 

 59,698 

 

 

 64,652 

 

 

 65,398 

 

 

 61,709 

 

 

 55,901 

Other brokered deposits

 

 211,866 

 

 

 205,004 

 

 

 206,590 

 

 

 214,175 

 

 

 175,367 

 

 

 140,372 

Non-brokered deposits

$

 1,717,739 

 

$

 1,712,563 

 

$

 1,674,776 

 

$

 1,668,351 

 

$

 1,665,789 

 

$

 1,698,975 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sweep repurchase agreements

 

 11,705 

 

 

 9,645 

 

 

 45,814 

 

 

 46,971 

 

 

 42,568 

 

 

 42,763 

Core funding

$

 1,729,444 

 

$

 1,722,208 

 

$

 1,720,590 

 

$

 1,715,322 

 

$

 1,708,357 

 

$

 1,741,738 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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



 

 





 



 

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

Table 8







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2017

 

2016



Jun. 30

 

Mar. 31

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 0.92% 

 

 

 0.86% 

 

 

 1.00% 

 

 

 0.70% 

 

 

 0.91% 

 

 

 0.32% 

Return on average common equity (annualized)

 

 7.93 

 

 

 7.40 

 

 

 8.59 

 

 

 5.97 

 

 

 7.67 

 

 

 2.56 

Return on average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(annualized)*

 

 8.37 

 

 

 7.83 

 

 

 9.10 

 

 

 6.33 

 

 

 8.13 

 

 

 2.71 

Net interest margin (annualized)

 

 3.53 

 

 

 3.43 

 

 

 3.40 

 

 

 3.42 

 

 

 3.48 

 

 

 3.54 

Total dividends declared to net income

 

 25.70 

 

 

 28.33 

 

 

 24.23 

 

 

 35.14 

 

 

 28.35 

 

 

 84.66 

Effective tax rate

 

 35.41 

 

 

 33.71 

 

 

 37.38 

 

 

 34.45 

 

 

 34.70 

 

 

 35.19 

Efficiency ratio

 

 57.77 

 

 

 63.30 

 

 

 64.34 

 

 

 66.09 

 

 

 65.70 

 

 

 67.48 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

 22,929 

 

$

 16,481 

 

$

 16,267 

 

$

 24,109 

 

$

 22,259 

 

$

 22,161 

90 days past due and accruing

 

 131 

 

 

 110 

 

 

 343 

 

 

 415 

 

 

 66 

 

 

 106 

Total nonperforming loans

 

 23,060 

 

 

 16,591 

 

 

 16,610 

 

 

 24,524 

 

 

 22,325 

 

 

 22,267 

Other real estate

 

 -

 

 

 350 

 

 

 350 

 

 

 2,106 

 

 

 2,122 

 

 

 2,274 

Total nonperforming assets

$

 23,060 

 

$

 16,941 

 

$

 16,960 

 

$

 26,630 

 

$

 24,447 

 

$

 24,541 

Potential problem loans

$

 28,696 

 

$

 42,083 

 

$

 44,023 

 

$

 45,476 

 

$

 64,364 

 

$

 68,460 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to portfolio loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other real estate

 

 1.17% 

 

 

 0.88% 

 

 

 0.91% 

 

 

 1.42% 

 

 

 1.35% 

 

 

 1.38% 

Nonperforming loans to portfolio loans

 

 1.17 

 

 

 0.86 

 

 

 0.89 

 

 

 1.31 

 

 

 1.23 

 

 

 1.25 

Allowance for loan losses to portfolio loans

 

 1.39 

 

 

 1.43 

 

 

 1.47 

 

 

 1.52 

 

 

 1.48 

 

 

 1.53 

Allowance for loan losses to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nonperforming loans

 

 118.46 

 

 

 166.01 

 

 

 165.84 

 

 

 116.02 

 

 

 120.39 

 

 

 122.01 

Net loan charge-offs (recoveries) to average portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans (annualized)

 

 0.40 

 

 

 0.38 

 

 

 (0.09)

 

 

 0.03 

 

 

 0.07 

 

 

 0.75 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average assets

 

 11.63% 

 

 

 11.62% 

 

 

 11.62% 

 

 

 11.75% 

 

 

 11.93% 

 

 

 12.42% 

Leverage ratio

 

 12.95 

 

 

 12.98 

 

 

 13.02 

 

 

 13.07 

 

 

 13.18 

 

 

 13.45 

Common equity tier 1 capital

 

 12.26 

 

 

 12.20 

 

 

 12.36 

 

 

 11.95 

 

 

 12.22 

 

 

 12.13 

Tier 1 capital to risk-weighted assets

 

 14.23 

 

 

 14.19 

 

 

 14.40 

 

 

 13.95 

 

 

 14.28 

 

 

 14.14 

Total capital to risk-weighted assets

 

 15.48 

 

 

 15.44 

 

 

 15.66 

 

 

 15.21 

 

 

 15.53 

 

 

 15.39 

Tangible common equity to tangible assets**

 

 10.95 

 

 

 10.98 

 

 

 11.01 

 

 

 10.92 

 

 

 11.16 

 

 

 11.49 

REGULATORY CAPITAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital

$

 280,927 

 

$

 276,205 

 

$

 272,882 

 

$

 268,045 

 

$

 266,612 

 

$

 270,564 

Tier I capital

 

 325,927 

 

 

 321,205 

 

 

 317,882 

 

 

 313,045 

 

 

 311,612 

 

 

 315,326 

Total capital

 

 354,675 

 

 

 349,615 

 

 

 345,597 

 

 

 341,196 

 

 

 338,968 

 

 

 343,287 

Total risk adjusted assets

 

 2,291,118 

 

 

 2,263,998 

 

 

 2,207,508 

 

 

 2,243,895 

 

 

 2,182,051 

 

 

 2,230,326 

Average total assets

 

 2,516,167 

 

 

 2,474,481 

 

 

 2,440,918 

 

 

 2,395,991 

 

 

 2,363,834 

 

 

 2,344,259 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*This is a non-GAAP financial measure.

**Calculation of tangible common equity to tangible assets (non-GAAP financial measure)

Total shareholders' equity

$

 295,546 

 

$

 290,914 

 

$

 286,629 

 

$

 283,820 

 

$

 282,360 

 

$

 285,661 

Less goodwill and core deposit intangible

 

 15,606 

 

 

 15,722 

 

 

 15,844 

 

 

 15,983 

 

 

 16,051 

 

 

 16,201 

Tangible common equity

$

 279,940 

 

$

 275,192 

 

$

 270,785 

 

$

 267,837 

 

$

 266,309 

 

$

 269,460 

Total assets

$

 2,572,935 

 

$

 2,522,594 

 

$

 2,475,392 

 

$

 2,468,042 

 

$

 2,402,262 

 

$

 2,360,819 

Less goodwill and core deposit intangible

 

 15,606 

 

 

 15,722 

 

 

 15,844 

 

 

 15,983 

 

 

 16,051 

 

 

 16,201 

Tangible assets

$

 2,557,329 

 

$

 2,506,872 

 

$

 2,459,548 

 

$

 2,452,059 

 

$

 2,386,211 

 

$

 2,344,618 

Total shareholders' equity to total assets

 

 11.49% 

 

 

 11.53% 

 

 

 11.58% 

 

 

 11.50% 

 

 

 11.75% 

 

 

 12.10% 

Tangible common equity to tangible assets

 

 10.95% 

 

 

 10.98% 

 

 

 11.01% 

 

 

 10.92% 

 

 

 11.16% 

 

 

 11.49% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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