EX-99 2 y79881exv99.htm EX-99 exv99
Exhibit 99
(SOUTHWEST LOGO)
     
 
  For additional information:
 
       Rick Green
 
       President & CEO
 
       Kerby E. Crowell
 
       EVP & CFO
For Immediate Release
       (405) 372-2230
Southwest Bancorp Reports Third Quarter 2009 Results
     October 20, 2009, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $1.1 million, or $0.07 per diluted share for the third quarter 2009, compared to $2.3 million, or $0.16 per diluted share for the third quarter of 2008. Net income available to common shareholders for the nine months ended September 30, 2009 was $6.3 million, or $0.43 per diluted share, compared to $11.7 million, or $0.80 per diluted share for the nine months ended September 30, 2008. At September 30, 2009, total assets were $3.0 billion.
     Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “We continue to generate earnings from operations in a difficult banking environment and are taking steps designed to position ourselves to succeed when the economy improves. For now, we expect continuing weakness in our commercial real estate markets and are clearly focused on identification and resolution of problem credits. We are pleased to have been able to earn money, hold down operating expenses, and increase key capital ratios, while at the same time providing appropriate reserves for loan losses.”
     Third Quarter 2009 Results:
  •   Increased Nonperforming Assets. Nonperforming assets increased to $133.5 million and 4.97% of portfolio loans and other real estate owned from $103.8 million and 3.83% of portfolio loans and other real estate owned at June 30, 2009 and from $70.1 million and 2.80% of portfolio loans and other real estate owned at December 31, 2008.
 
  •   Increased Allowance and Provision for Loan Losses. The allowance for loan losses increased to $57.8 million and 2.16% of portfolio loans from $51.8 million and 1.91% of portfolio loans at June 30, 2009 and $39.8 million and 1.59% of portfolio loans at December 31, 2008. The provision for loan losses exceeded net charge-offs by $6.0 million for the third quarter, $18.0 million for the first nine months of 2009, and $22.0 million for the last four quarters.
 
  •   Increased Regulatory Capital. As of September 30, 2009, total regulatory capital was $411.2 million for a total risk-based capital ratio of 14.31% and Tier 1 capital was $374.8 million for a Tier 1 risk-based capital ratio of 13.04%. The tangible common equity ratio was 7.79%. (The tangible common equity ratio is a non-GAAP measure used by Southwest and analysts based on shareholders’ equity as defined by generally accepted accounting principles minus goodwill and preferred stock. See Table 6.)
 
  •   Increased Core Funding. Core deposits (total deposits less time deposits of $100,000 or more and brokered deposits) grew 2% from June 30, 2009 and 15% from December 31, 2008. Core funding, which includes all non-brokered time deposits and sweep repurchase agreements, grew 3% from June 30, 2009 and 20% from December 31, 2008. At September 30, 2009, total core funding comprised 85% of total funding, compared to 82% at June 30, 2009 and 76% at December 31, 2008. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 15% of total funding compared to 18% at June 30, 2009 and 24% at December 31, 2008. Please see Table 7 for details on these non-GAAP financial measures.

 

 

NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Third Quarter 2009 Results
  •   Increased Net Interest Income. Net interest income increased by $2.2 million, or 10%, for the third quarter of 2009 compared to the third quarter of 2008, and by $3.6 million, or 5%, for the first nine months of 2009 compared to the first nine months of 2008.
 
  •   Decreased Human Resource Costs. Salaries and employee benefits decreased by $1.0 million, or 12%, from the third quarter of 2008 and $5.0 million, or 19%, from the first nine months of 2008. Total noninterest expenses declined $1.0 million, or 6%, from the third quarter 2008 and $3.9 million, or 8%, from the first nine months of 2008, despite substantial increases in FDIC insurance assessments.
     Please review the following “Financial Overview” and the accompanying tables for important additional information regarding our results and plans.
Financial Overview
     Condition: Total assets were $3.0 billion at September 30, 2009, an increase of 5% from December 31, 2008. At September 30, 2009 total loans were $2.7 billion, which includes $117.1 million of loans acquired from First National Bank of Anthony (“FNBA”) in the second quarter and represents an increase of 6% from December 31, 2008.
     At September 30, 2009, the allowance for loan losses was $57.8 million, up 61% from September 30, 2008 and up 45% from year-end 2008 and represented 2.16% of portfolio loans versus 1.47% at September 30, 2008 and 1.59% at December 31, 2008. The methodology used to determine the appropriate amount of the allowance for loan losses at a particular time includes consideration of risk factors related to Southwest and to our markets, including regular assessments of national and local economic conditions and trends. For the nine months ended September 30, 2009, the provision for loan losses increased by $16.3 million, or 132%, over the provision for the comparable period ended September 30, 2008.
     Nonperforming assets to portfolio loans and other real estate owned was 4.97% at September 30, 2009 compared to 2.72% at September 30, 2008 and 2.80% at December 31, 2008. A breakdown of portfolio loans and nonperforming assets by type is shown in the following table:
                                 
            Percentage of             Percentage of  
    Portfolio     total portfolio     Nonperforming     nonperforming  
(dollars in thousands)   loans     loans     assets     assets  
Real estate construction
   $ 663,157       24.78 %   $ 62,723       46.98 %
Commercial real estate
     1,272,430       47.55       35,286       26.43  
Commercial
     558,813       20.89       11,375       8.52  
Other real estate owned
     —       —       8,987       6.73  
Residential real estate mortgages
     138,122       5.16       14,884       11.15  
Other consumer loans
     43,219       1.62       255       0.19  
 
                        
Total
   $ 2,675,741       100.00 %   $ 133,510       100.00 %
 
                        
     Included above are $12.8 million of nonperforming assets acquired from FNBA, which are subject to protection under loss share agreements with the FDIC. The loss share agreements require the FDIC to cover 80% of net losses on covered loans and related assets up to $35.0 million, and 95% of net losses above $35.0 million. Nonaccrual loans were $109.4 million as of September 30, 2009, an increase of $26.6 million from June 30, 2009 and $50.1 million from December 31, 2008. These loans are carried at their estimated collectible amounts and no longer accrue interest. Loans 90 days or more past due, another component of nonperforming assets, were $15.1 million as of September 30, 2009 and increased $3.1 million from June 30, 2009 and $10.4 million from December 31, 2008. These loans are deemed to have sufficient collateral and are in the process of collection. Performing loans considered potential problem loans, which are not included in the past due or nonaccrual categories, but for which known information about possible credit problems cause management to be uncertain as to the continued ability of the borrowers to comply with the present loan repayment terms in future periods, amounted to $259.5 million at September 30, 2009, an increase of $75.4 million from June 30, 2009 and $128.0 million from December 31, 2008. Included are $4.4 million of potential problem loans acquired from FNBA, which are subject to protection under loss share agreements with the FDIC. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.

2

 

NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Third Quarter 2009 Results
     Total deposits were $2.5 billion at September 30, 2009, up $293.0 million from December 31, 2008. At September 30, 2009, wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 15% of total funding compared to 24% at December 31, 2008.
     At September 30, 2009, Southwest exceeded all applicable regulatory capital requirements. Southwest and each of its banking subsidiaries met the criteria for regulatory classification as “well-capitalized”. Southwest’s capital exceeded the minimum to be classified as “well-capitalized” by $123.8 million. Southwest’s ratio of tangible common equity to tangible assets was 7.79% as of September 30, 2009. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.
     Year-to-date Results:
     Summary: The $5.4 million decrease in our net income available to common shareholders from 2008 is the result of a $16.3 million increase in the provision for loan losses, a $3.0 million increase in FDIC insurance and other insurance expense, and $3.1 million in dividends on the preferred stock that we issued in December 2008, offset in part by a $5.0 million decrease in personnel costs, a $2.3 million decrease in general and administrative expenses, a $1.8 million decrease in income tax expense, a $3.6 million increase in net interest income, a $2.7 million increase in other noninterest income, and a $1.7 million increase in gain on sale of investment securities.
     Net Interest Income: Net interest income totaled $70.9 million for the first nine month of 2009 compared to $67.3 million for the first nine months of 2008. Year-to-date net interest margin was 3.27% compared to 3.41% in 2008. Included in the second quarter net interest income is a one-time recovery of $1.9 million in interest from the successful resolution of a nonperforming loan. Net interest margin would have been 9 basis points lower without this recovery.
     Provision for Loan Losses: The provision for loan losses totaled $28.5 million for the first nine months of 2009 compared to $12.3 million for the first nine months of 2008. Net charge offs totaled $10.5 million, or 0.54% (annualized) of average portfolio loans, year-to-date as of September 30, 2009, compared to $6.1 million, or 0.35% (annualized) of average portfolio loans, for the same period in the prior year.
     Noninterest Income: For the first nine months of 2009, noninterest income totaled $17.4 million, compared to $12.7 million for 2008. The increase in noninterest income from 2008 was the result of a $1.7 million increase in gain on sale of investment securities and a $2.7 million increase in other noninterest income, which includes the $3.3 million gain on the FNBA acquisition that occurred in the second quarter.
     Noninterest Expense: For the first nine months of 2009, noninterest expense totaled $44.8 million compared to $48.7 million for 2008. The decrease consists mainly of a $5.0 million reduction in personnel expense, a $1.7 million decrease in other general and administrative expenses, and a $627,000 decrease in provision for unfunded loan commitments, offset in part by a $3.0 million increase in FDIC and other insurance expense and a $450,000 increase in occupancy expense.
     The efficiency ratio improved to 50.73% for the first nine months of 2009 from 60.86% for the first nine months of 2008.
     Third Quarter Results:
     Summary: The $1.2 million decrease in our net income available to common shareholders compared to the third quarter of 2008 was the result of a $3.3 million increase in the provision for loan losses and $1.0 million in quarterly dividends on the preferred stock that we issued in December 2008, offset in part by a $2.2 million increase in net interest income and a $1.0 million decrease in noninterest expenses.
     Net Interest Income: Net interest income totaled $25.4 million for the third quarter of 2009 compared to $23.2 million for the third quarter of 2008. Net interest margin was 3.39% for the third quarter of 2009 and for the third quarter of 2008.
     Provision for Loan Losses: The provision for loan losses totaled $10.2 million for the third quarter of 2009 compared to $6.9 million for the third quarter of 2008. Net charge offs totaled $4.2 million, or 0.61% (annualized) of average portfolio loans for the third quarter of 2009, compared to $2.4 million, or 0.39% (annualized) of average portfolio loans, for the third quarter of 2008.

3

 

NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Third Quarter 2009 Results
     Noninterest Income: Noninterest income totaled $3.7 million for the third quarter of 2009 compared to $4.1 million for the third quarter of 2008. The decrease was the result of a $340,000 decrease in other noninterest income and a $215,000 decrease in gains on sale of loans.
     Noninterest Expense: Noninterest expense totaled $15.5 million for the third quarter of 2009, a $1.0 million decrease from the third quarter of 2008. The decrease consists primarily of a $1.0 million reduction in personnel expense and a $634,000 decrease in other general and administrative expenses, offset in part by a $665,000 increase in FDIC and other insurance expense.
     The efficiency ratio for the third quarter of 2009 improved to 53.34% from 60.67% for the third quarter of 2008.
Southwest Bancorp and Subsidiaries
     Southwest Bancorp is the $3 billion asset financial holding company for Stillwater National Bank and Trust Company, Bank of Kansas, SNB Capital Corporation, Healthcare Strategic Support, Inc., and Business Consulting Group, Inc. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit, and investment services, and specialized cash management, consulting, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®.
     Southwest focuses on converting its strategic vision into long-term shareholder value. Our vision includes a commercial banking model and a community banking model focused on more traditional banking operations in our three-state market. Southwest’s strategic growth goals include prudent growth from existing and additional commercial banking offices in carefully selected markets and continued careful expansion of community banking operations. We expanded into Texas in 2002 and into Kansas in 2003. We operate seven offices in Texas, eleven offices in Oklahoma, and nine offices in Kansas. At September 30, 2009, our Texas segment accounted for $1.0 billion, or 39% of total portfolio loans, followed by $944.0 million, or 35%, from our Oklahoma segment, $400.7 million, or 15%, from our Kansas segment, and $288.7 million, or 11%, from our other states segment.
     We plan to reduce the percentage of commercial real estate loans to total portfolio loans in view of current economic conditions. Our plan focuses on reductions in particular subcategories of commercial real estate loans that are identified in our regular real estate market reviews. In general, and with some exceptions regarding locations and particular types of facilities, we do not intend to decrease healthcare related commercial or mortgage lending or commercial mortgage lending on owner-occupied properties that otherwise meet our underwriting criteria.
     Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest’s trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.
Forward-Looking Statements
     This Press Release includes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include: statements of Southwest’s goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk and interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; 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 time of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; and a variety of other matters. 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 its future results.

4

 

NASDAQ: OKSB
OKSBP
Southwest Bancorp Reports Third Quarter 2009 Results
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 Summary Financial Data by Quarter-2009 and 2008   Table 6
     
Unaudited Supplemental Analytical Data by Quarter-2009 and 2008   Table 7

5

 

     
SOUTHWEST BANCORP, INC.   Table 1
UNAUDITED FINANCIAL HIGHLIGHTS    
(Dollars in thousands except per share)    
                                         
    Third Quarter   Second Quarter
                    %           %
    2009   2008   Change   2009   Change
QUARTERLY HIGHLIGHTS
                                        
Operations
                                        
Net interest income
   $ 25,400     $ 23,188       10 %   $ 24,456       4 %
Provision for loan losses
     10,177       6,855       48       7,477       36  
Noninterest income
     3,710       4,062       (9 )     7,261       (49 )
Noninterest expense
     15,528       16,533       (6 )     14,690       6  
Income before taxes
     3,405       3,862       (12 )     9,550       (64 )
Taxes on income
     1,271       1,556       (18 )     3,605       (65 )
Net income
     2,134       2,306       (7 )     5,945       (64 )
Net income available to common shareholders
     1,097       2,306       (52 )     4,910       (78 )
Diluted earnings per share
     0.07       0.16       (56 )     0.33       (79 )
Balance Sheet
                                        
Total assets
     3,029,347       2,832,371       7       3,038,985       (0 )
Loans held for sale
     36,526       72,248       (49 )     26,006       40  
Portfolio loans
     2,675,741       2,440,091       10       2,704,326       (1 )
Total deposits
     2,473,162       2,198,719       12       2,452,295       1  
Total shareholders’ equity
     309,118       226,123       37       305,416       1  
Book value per share
     16.43       15.56       6       16.30       1  
Key Ratios
                                        
Net interest margin
     3.39 %     3.39 %             3.41 %        
Efficiency ratio (GAAP-based)
     53.34       60.67               46.32          
Total capital to risk-weighted assets
     14.31       11.88               13.92          
Nonperforming loans to portfolio loans
     4.65       2.62               3.51          
Shareholders’ equity to total assets
     10.20       7.98               10.05          
Tangible common equity to tangible assets
     7.79       7.75               7.65          
Return on average assets (annualized)
     0.28       0.33               0.81          
Return on average equity (annualized)
     2.72       3.97               7.82          
YEAR-TO-DATE HIGHLIGHTS
                                         
    Nine Months                
                    %                
    2009   2008   Change                
Operations
                                        
Net interest income
   $ 70,894     $ 67,305       5 %                
Provision for loan losses
     28,536       12,281       132                  
Noninterest income
     17,448       12,709       37                  
Noninterest expense
     44,817       48,695       (8 )                
Income before taxes
     14,989       19,038       (21 )                
Taxes on income
     5,581       7,362       (24 )                
Net income
     9,408       11,676       (19 )                
Net income available to common shareholders
     6,303       11,676       (46 )                
Diluted earnings per share
     0.43       0.80       (46 )                
Balance Sheet
                                        
Total assets
     3,029,347       2,832,371       7                  
Loans held for sale
     36,526       72,248       (49 )                
Portfolio loans
     2,675,741       2,440,091       10                  
Total deposits
     2,473,162       2,198,719       12                  
Total shareholders’ equity
     309,118       226,123       37                  
Book value per share
     16.43       15.56       6                  
Key Ratios
                                        
Net interest margin
     3.27 %     3.41 %                        
Efficiency ratio (GAAP-based)
     50.73       60.86                          
Total capital to risk-weighted assets
     14.31       11.88                          
Nonperforming loans to portfolio loans
     4.65       2.62                          
Shareholders’ equity to total assets
     10.20       7.98                          
Tangible common equity to tangible assets
     7.79       7.75                          
Return on average assets (annualized)
     0.42       0.58                          
Return on average equity (annualized)
     4.10       6.88                          
Balance sheet amounts are as of period end unless otherwise noted.
Please see accompanying tables for additional financial information.

 

 

     
SOUTHWEST BANCORP, INC.   Table 2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION    
(Dollars in thousands, except per share)    
                         
    September 30,     December 31,     September 30,  
    2009     2008     2008  
Assets
                        
Cash and due from banks
   $ 32,094     $ 27,287     $ 36,503  
Investment securities:
                        
Held to maturity. Fair value: $6,907 $7,293, $7,262
     6,795       7,343       7,342  
Available for sale. Amortized cost: $228,723 $233,293, $218,974 
     233,009       238,037       217,198  
Other investments, at cost
     18,986       18,786       17,188  
Loans held for sale
     36,526       56,941       72,248  
Loans receivable (1)
     2,675,741       2,494,506       2,440,091  
Less: Allowance for loan losses
     (57,777 )     (39,773 )     (35,807 )
 
                  
Net loans receivable
     2,617,964       2,454,733       2,404,284  
Accrued interest receivable
     10,794       11,512       12,530  
Premises and equipment, net
     25,255       24,580       24,799  
Other real estate owned (2)
     8,987       6,092       2,685  
Goodwill
     6,811       7,071       7,071  
Other intangible assets, net
     5,872       3,764       4,120  
Other assets
     26,254       23,616       26,403  
 
                  
Total assets
   $ 3,029,347     $ 2,879,762     $ 2,832,371  
 
                  
 
                        
Liabilities and shareholders’ equity
                        
Deposits:
                        
Noninterest-bearing demand
   $ 309,767     $ 261,940     $ 280,453  
Interest-bearing demand
     82,622       76,027       70,471  
Money market accounts
     506,196       454,250       554,357  
Savings accounts
     25,636       14,135       14,452  
Time deposits of $100,000 or more
     888,814       802,244       731,773  
Other time deposits
     660,127       571,526       547,213  
 
                  
Total deposits
     2,473,162       2,180,122       2,198,719  
Accrued interest payable
     4,545       7,018       9,992  
Income tax payable
     3,822       3,651       3,828  
Other liabilities
     10,288       9,667       12,628  
Other borrowings
     146,449       295,138       299,118  
Subordinated debentures
     81,963       81,963       81,963  
 
                  
Total liabilities
     2,720,229       2,577,559       2,606,248  
 
                        
Shareholders’ equity
                        
Preferred stock, Series B — $1,000 par value; 1,250,000 shares authorized; 70,000 shares issued
     66,872       66,392       —  
Common stock — $1 par value; 20,000,000 shares authorized; 14,748,223 shares issued
     14,748       14,658       14,658  
Paid in capital
     49,007       49,101       45,849  
Retained earnings
     175,834       170,579       169,026  
Accumulated other comprehensive income (loss)
     2,657       2,921       (1,075 )
Treasury stock, at cost, 0, 80,383, 129,586 shares
     —       (1,448 )     (2,335 )
 
                  
Total shareholders’ equity
     309,118       302,203       226,123  
 
                  
Total liabilities and shareholders’ equity
   $ 3,029,347     $ 2,879,762     $ 2,832,371  
 
                  
 
(1)   Includes $70.0 million which is subject to FDIC support through the loss share agreement which provides for 80% recovery of net losses up to $35.0 million and 95% recovery for net losses exceeding this amount.
 
(2)   Includes $2.9 million which is subject to FDIC support through the loss share agreement as discussed in (1).

 

 

     
SOUTHWEST BANCORP, INC.   Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS    
(Dollars in thousands except per share)    
                                 
    For the three months     For the nine months  
    ended September 30,     ended September 30,  
    2009     2008     2009     2008  
Interest income
                                
Loans
   $ 35,607     $ 38,441     $ 104,884     $ 116,536  
Investment securities
     2,122       2,531       6,713       7,293  
Other interest-earning assets
     4       22       13       70  
 
                        
Total interest income
     37,733       40,994       111,610       123,899  
 
                                
Interest expense
                                
Interest-bearing deposits
     10,097       14,398       33,229       47,759  
Other borrowings
     960       1,839       3,424       5,755  
Subordinated debentures
     1,276       1,569       4,063       3,080  
Total interest expense
     12,333       17,806       40,716       56,594  
 
                        
 
                                
Net interest income
     25,400       23,188       70,894       67,305  
 
                                
Provision for loan losses
     10,177       6,855       28,536       12,281  
 
                        
 
                                
Net interest income after provision for loan losses
     15,223       16,333       42,358       55,024  
 
                                
Noninterest income
                                
Service charges and fees
     2,992       2,849       8,409       8,118  
Gain on acquisition
     —       —       3,281       —  
Gain on sales of loans
     386       601       2,030       2,044  
Gain (loss) on investment securities
     10       (50 )     2,922       1,198  
Other noninterest income
     322       662       806       1,349  
 
                        
Total noninterest income
     3,710       4,062       17,448       12,709  
 
                                
Noninterest expense
                                
Salaries and employee benefits
     7,824       8,863       21,950       26,941  
Occupancy
     2,958       2,968       8,478       8,028  
FDIC and other insurance
     1,134       469       4,444       1,443  
Other real estate, net
     90       (92 )     91       115  
General and administrative
     3,522       4,325       9,854       12,168  
 
                        
Total noninterest expense
     15,528       16,533       44,817       48,695  
 
                        
Income before taxes
     3,405       3,862       14,989       19,038  
Taxes on income
     1,271       1,556       5,581       7,362  
 
                        
Net income
   $ 2,134     $ 2,306     $ 9,408     $ 11,676  
 
                        
Net income available to common shareholders
   $ 1,097     $ 2,306     $ 6,303     $ 11,676  
 
                        
 
                                
Basic earnings per common share
   $ 0.07     $ 0.16     $ 0.43     $ 0.81  
Diluted earnings per common share
     0.07       0.16       0.43       0.80  
Common dividends declared per share
     0.0238       0.0950       0.0714       0.2850  

 

 

     
SOUTHWEST BANCORP, INC.   Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES    
(Dollars in thousands)    
                                                 
    For the three months ended September 30,  
    2009     2008  
    Average             Average     Average             Average  
    Balance     Interest     Yield/Rate     Balance     Interest     Yield/Rate  
Assets
                                                
Loans
   $ 2,719,835     $ 35,607       5.19 %   $ 2,485,617     $ 38,441       6.15 %
Investment securities
     243,604       2,122       3.46       235,428       2,531       4.28  
Other interest-earning assets
     10,442       4       0.15       4,113       22       2.13  
 
                                        
Total interest-earning assets
     2,973,881       37,733       5.03       2,725,158       40,994       5.98  
Other assets
     62,160                       72,624                  
 
                                            
Total assets
   $ 3,036,041                     $ 2,797,782                  
 
                                            
 
                                                
Liabilities and Shareholders’ Equity
                                                
Interest-bearing demand deposits
   $ 84,031     $ 107       0.51 %   $ 75,436     $ 147       0.78 %
Money market accounts
     498,842       1,220       0.97       545,520       2,898       2.11  
Savings accounts
     26,101       39       0.59       14,285       17       0.47  
Time deposits
     1,547,192       8,731       2.24       1,272,097       11,336       3.55  
 
                                        
Total interest-bearing deposits
     2,156,166       10,097       1.86       1,907,338       14,398       3.00  
Other borrowings
     165,327       960       2.30       275,365       1,839       2.66  
Subordinated debentures
     81,963       1,276       6.23       81,122       1,569       7.74  
 
                                        
Total interest-bearing liabilities
     2,403,456       12,333       2.04       2,263,825       17,806       3.13  
 
                                        
Noninterest-bearing demand deposits
     299,235                       278,565                  
Other liabilities
     22,365                       24,250                  
Shareholders’ equity
     310,985                       231,142                  
 
                                            
Total liabilities and shareholders’ equity
   $ 3,036,041                     $ 2,797,782                  
 
                                            
 
                                                
Net interest income and spread
           $ 25,400       2.99 %           $ 23,188       2.85 %
 
                                        
Net interest margin (1)
                     3.39 %                     3.39 %
 
                                            
Average interest-earning assets to average interest-bearing liabilities
     123.73 %                     120.38 %                
 
                                            
 
(1)   Net interest margin = annualized net interest income / average interest-earning assets

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands) 		  Table 5
                                                 
    For the nine months ended September 30,  
    2009     2008  
    Average             Average     Average             Average  
    Balance     Interest     Yield/Rate     Balance     Interest     Yield/Rate  
Assets
                                                
Loans
   $ 2,655,156     $ 104,884       5.28 %   $ 2,401,162     $ 116,536       6.48 %
Investment securities
     239,134       6,713       3.75       234,894       7,293       4.15  
Other interest-earning assets
     5,877       13       0.30       3,430       70       2.73  
 
                                        
Total interest-earning assets
     2,900,167       111,610       5.15       2,639,486       123,899       6.27  
Other assets
     66,254                       72,084                  
 
                                            
Total assets
   $ 2,966,421                     $ 2,711,570                  
 
                                            
 
                                                
Liabilities and Shareholders’ Equity
                                                
Interest-bearing demand deposits
   $ 86,576     $ 410       0.63 %   $ 75,813     $ 454       0.80 %
Money market accounts
     479,700       3,784       1.05       546,560       10,488       2.56  
Savings accounts
     19,535       62       0.42       13,780       58       0.56  
Time deposits
     1,496,193       28,973       2.59       1,237,196       36,759       3.97  
 
                                        
Total interest-bearing deposits
     2,082,004       33,229       2.13       1,873,349       47,759       3.41  
Other borrowings
     199,982       3,424       2.29       266,367       5,755       2.89  
Subordinated debentures
     81,963       4,063       6.61       58,054       3,080       7.07  
 
                                        
Total interest-bearing liabilities
     2,363,949       40,716       2.30       2,197,770       56,594       3.44  
 
                                        
 
                                                
Noninterest-bearing demand deposits
     274,535                       265,245                  
Other liabilities
     20,877                       21,826                  
Shareholders’ equity
     307,060                       226,729                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,966,421                     $ 2,711,570                  
 
                                            
 
                                                
Net interest income and spread
           $ 70,894       2.85 %           $ 67,305       2.83 %
 
                                        
Net interest margin (1)
                     3.27 %                     3.41 %
 
                                            
Average interest-earning assets to average interest-bearing liabilities
     122.68 %                     120.10 %                
 
                                            
 
(1)   Net interest margin = annualized net interest income / average interest-earning assets

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share) 		  Table 6
                                                         
       
    2009     2008  
    Sep. 30     Jun. 30     Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
OPERATIONS
                                                        
Interest income:
                                                        
Loans
   $ 35,607     $ 36,009     $ 33,268     $ 36,183     $ 38,441     $ 37,485     $ 40,610  
Investment securities
     2,122       2,079       2,512       2,693       2,531       2,426       2,336  
Other interest-earning assets
     4       3       6       19       22       20       28  
 
                                          
Total interest income
     37,733       38,091       35,786       38,895       40,994       39,931       42,974  
Interest expense:
                                                        
Interest bearing demand deposits
     107       150       153       130       147       166       141  
Money market accounts
     1,220       1,211       1,353       2,132       2,898       3,062       4,528  
Savings accounts
     39       14       9       11       17       19       22  
Time deposits of $100,000 or more
     4,822       5,552       5,980       6,419       6,879       7,051       7,865  
Other time deposits
     3,909       4,145       4,565       4,571       4,457       4,809       5,698  
 
                                          
Total interest-bearing deposits
     10,097       11,072       12,060       13,263       14,398       15,107       18,254  
Other borrowings
     960       1,180       1,284       1,487       1,839       1,887       2,029  
Subordinated debentures
     1,276       1,383       1,404       1,731       1,569       653       858  
 
                                          
Total interest expense
     12,333       13,635       14,748       16,481       17,806       17,647       21,141  
 
                                          
Net interest income
     25,400       24,456       21,038       22,414       23,188       22,284       21,833  
Provision for loan losses
     10,177       7,477       10,882       6,698       6,855       3,190       2,236  
Noninterest income:
                                                        
Service charges and fees
     2,992       2,817       2,600       2,908       2,849       2,812       2,457  
Gain on sales of loans
     386       926       718       620       601       603       840  
Gain (loss) on investment securities
     10       (9 )     2,921       (296 )     (50 )     3       1,245  
Other noninterest income
     322       3,527       238       197       662       541       146  
 
                                          
Total noninterest income
     3,710       7,261       6,477       3,429       4,062       3,959       4,688  
Noninterest expense:
                                                        
Salaries and employee benefits
     7,824       6,887       7,239       6,389       8,863       8,856       9,222  
Occupancy
     2,958       2,789       2,731       2,844       2,968       2,602       2,458  
FDIC and other insurance
     1,134       2,319       991       645       469       521       453  
Other real estate, net
     90       103       (102 )     31       (92 )     197       10  
Provision for unfunded loan commitments
     (79 )     (388 )     90       385       90       15       145  
Other general and administrative
     3,601       2,980       3,650       3,499       4,235       4,141       3,542  
 
                                          
Total noninterest expenses
     15,528       14,690       14,599       13,793       16,533       16,332       15,830  
 
                                          
Income before taxes
     3,405       9,550       2,034       5,352       3,862       6,721       8,455  
Taxes on income
     1,271       3,605       705       2,127       1,556       2,559       3,247  
 
                                          
Net income
   $ 2,134     $ 5,945     $ 1,329     $ 3,225     $ 2,306     $ 4,162     $ 5,208  
 
                                          
Net income available to common shareholders
   $ 1,097     $ 4,910     $ 296     $ 2,982     $ 2,306     $ 4,162     $ 5,208  
 
                                          
PER SHARE DATA
                                                        
Basic earnings per common share
   $ 0.07     $ 0.34     $ 0.02     $ 0.21     $ 0.16     $ 0.29     $ 0.36  
Diluted earnings per common share
     0.07       0.33       0.02       0.20       0.16       0.28       0.36  
Common dividends declared per share
     0.0238       0.0238       0.0238       0.0950       0.0950       0.0950       0.0950  
Book value per share
     16.43       16.30       16.01       16.18       15.56       15.49       15.43  
Tangible book value per share
     15.96       15.84       15.52       15.69       15.08       15.00       14.95  
COMMON STOCK
                                                        
Issued
     14,748,223       14,658,042       14,658,042       14,658,042       14,658,042       14,658,042       14,658,042  
Less treasury shares
     —       (15,602 )     (49,930 )     (80,383 )     (129,586 )     (131,566 )     (133,605 )
 
                                          
Outstanding shares
     14,748,223       14,642,440       14,608,112       14,577,659       14,528,456       14,526,476       14,524,437  
 
                                          
OTHER FINANCIAL DATA
                                                        
Investment securities
   $ 258,790     $ 243,077     $ 179,006     $ 264,166     $ 241,728     $ 234,429     $ 236,059  
Loans held for sale
     36,526       26,006       76,404       56,941       72,248       62,892       66,364  
Portfolio loans
     2,675,741       2,704,326       2,526,293       2,494,506       2,440,091       2,381,893       2,287,606  
Total loans
     2,712,267       2,730,332       2,602,697       2,551,447       2,512,339       2,444,785       2,353,970  
Total assets
     3,029,347       3,038,985       2,928,133       2,879,762       2,832,371       2,773,013       2,670,580  
Total deposits
     2,473,162       2,452,295       2,330,089       2,180,122       2,198,719       2,211,001       2,094,927  
Other borrowings
     146,449       176,368       193,739       295,138       299,118       265,614       282,513  
Subordinated debentures
     81,963       81,963       81,963       81,963       81,963       46,393       46,393  
Total shareholders’ equity
     309,118       305,416       300,406       302,203       226,123       224,949       224,155  
Mortgage servicing portfolio
     223,226       209,425       179,959       158,143       153,250       147,672       145,028  
INTANGIBLE ASSET DATA
                                                        
Goodwill
   $ 6,811     $ 6,811     $ 7,071     $ 7,071     $ 7,071     $ 7,071     $ 7,071  
Core deposit intangible
     4,240       4,378       2,498       2,596       2,693       2,792       2,893  
Mortgage servicing rights
     1,625       1,589       1,362       1,159       1,417       1,354       1,299  
Nonmortgage servicing rights
     7       7       8       9       10       11       13  
 
                                          
Total intangible assets
   $ 12,683     $ 12,785     $ 10,939     $ 10,835     $ 11,191     $ 11,228     $ 11,276  
 
                                          
Intangible amortization expense
   $ 344     $ 391     $ 204     $ 214     $ 212     $ 215     $ 257  
 
                                          

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share) 		  Table 6
Continued
                                                         
       
    2009     2008  
    Sep. 30     Jun. 30     Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
PERFORMANCE RATIOS
                                                        
Return on average assets (annualized)
     0.28 %     0.81 %     0.18 %     0.45 %     0.33 %     0.62 %     0.80 %
Return on average common equity (annualized)
     1.78       8.26       1.77       5.15       3.97       7.38       9.43  
Return on average tangible equity (annualized)
     2.87       8.12       1.83       5.79       4.26       7.86       9.94  
Net interest margin
     3.39       3.41       3.00       3.22       3.39       3.38       3.45  
Total dividends declared to net income
     57.46       20.58       92.00       50.49       59.85       33.16       26.37  
Effective tax rate
     37.33       37.75       34.66       39.74       40.29       38.07       38.40  
Efficiency ratio
     53.34       46.32       53.06       53.37       60.67       62.23       59.69  
ASSET QUALITY RATIOS
                                                        
Nonperforming assets to portfolio loans and other real estate owned
     4.97 %     3.83 %     3.53 %     2.80 %     2.72 %     1.45 %     1.41 %
Nonperforming loans to portfolio loans
     4.65       3.51       3.32       2.56       2.62       1.35       1.27  
Net loan charge-offs to average portfolio loans (annualized)
     0.61       0.31       0.71       0.44       0.39       0.31       0.34  
Allowance for loan losses to total loans
     2.13       1.90       1.78       1.56       1.43       1.28       1.27  
Allowance for loan losses to portfolio loans
     2.16       1.91       1.83       1.59       1.47       1.32       1.31  
Allowance for loan losses to nonperforming loans
     46.40       54.55       55.12       62.16       56.07       97.62       103.49  
CAPITAL RATIOS
                                                        
Average total shareholders’ equity to average assets
     10.24 %     10.35 %     10.47 %     8.85 %     8.26 %     8.35 %     8.49 %
Leverage ratio
     12.39       12.70       12.72       13.06       10.51       9.66       9.91  
Tier 1 capital to risk-weighted assets
     13.04       12.67       12.85       13.01       10.49       9.40       9.47  
Total capital to risk-weighted assets
     14.31       13.92       14.11       14.26       11.88       10.65       10.69  
Tangible common equity to tangible assets*
     7.79       7.65       7.76       7.96       7.75       7.88       8.15  
LOANS BY SEGMENT
                                                        
Oklahoma banking
   $ 943,982     $ 967,981     $ 949,454     $ 966,243     $ 962,611     $ 965,952     $ 943,331  
Texas banking
     1,042,369       1,037,694       990,135       947,603       892,998       857,160       797,700  
Kansas banking
     400,710       412,314       309,774       304,855       288,268       277,887       287,339  
Other states banking
     288,680       286,337       276,930       275,805       296,214       280,894       259,236  
 
                                          
Subtotal
     2,675,741       2,704,326       2,526,293       2,494,506       2,440,091       2,381,893       2,287,606  
Secondary market
     36,526       26,006       76,404       56,941       72,248       62,892       66,364  
 
                                          
Total loans
   $ 2,712,267     $ 2,730,332     $ 2,602,697     $ 2,551,447     $ 2,512,339     $ 2,444,785     $ 2,353,970  
 
                                          
NET INCOME BY SEGMENT
                                                        
Oklahoma banking
   $ 2,529     $ 3,284     $ 3,210     $ 3,783     $ 3,295     $ 2,923     $ 2,503  
Texas banking
     2,686       3,662       1,119       2,036       1,332       1,777       2,406  
Kansas banking
     (1,180 )     548       598       (204 )     (1,336 )     (40 )     458  
Other states banking
     57       (78 )     (1,974 )     (89 )     848       1,028       969  
 
                                          
Subtotal
     4,092       7,416       2,953       5,526       4,139       5,688       6,336  
Secondary market
     (201 )     117       (61 )     139       (149 )     40       (174 )
Other operations
     (1,757 )     (1,588 )     (1,563 )     (2,440 )     (1,684 )     (1,566 )     (954 )
 
                                          
Net income
   $ 2,134     $ 5,945     $ 1,329     $ 3,225     $ 2,306     $ 4,162     $ 5,208  
 
                                          
OFFICES AND EMPLOYEES
                                                        
FTE Employees
     471       478       425       442       458       463       467  
ATM’s
     44       44       40       41       41       40       40  
Branches
     24       24       18       18       18       17       17  
Loan production offices
     3       3       3       3       3       3       3  
Assets per employee
   $ 6,432     $ 6,358     $ 6,890     $ 6,515     $ 6,184     $ 5,989     $ 5,719  
 
*Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)		                        
Total shareholders’ equity
   $ 309,118     $ 305,416     $ 300,406     $ 302,203     $ 226,123     $ 224,949     $ 224,155  
Less:
                                                        
Goodwill
     6,811       6,811       7,071       7,071       7,071       7,071       7,071  
Preferred stock
     66,872       66,710       66,549       66,392       —       —       —  
 
                                          
Tangible common equity
   $ 235,435     $ 231,895     $ 226,786     $ 228,740     $ 219,052     $ 217,878     $ 217,084  
 
                                          
Total assets
   $ 3,029,347     $ 3,038,985     $ 2,928,133     $ 2,879,762     $ 2,832,371     $ 2,773,013     $ 2,670,580  
Less goodwill
     6,811       6,811       7,071       7,071       7,071       7,071       7,071  
 
                                          
Tangible assets
   $ 3,022,536     $ 3,032,174     $ 2,921,062     $ 2,872,691     $ 2,825,300     $ 2,765,942     $ 2,663,509  
 
                                          
Tangible common equity to tangible assets
     7.79 %     7.65 %     7.76 %     7.96 %     7.75 %     7.88 %     8.15 %
Balance sheet amounts are as of period end unless otherwise noted.

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands except per share) 		  Table 7
                                                         
       
    2009     2008  
    Sep. 30     Jun. 30     Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
LOAN COMPOSITION
                                                        
Real estate mortgage:
                                                        
Commercial
   $ 1,259,559     $ 1,249,230     $ 1,098,587     $ 1,118,828     $ 1,077,601     $ 991,679     $ 846,757  
One-to-four family residential
     142,280       133,957       114,111       113,665       116,270       118,056       110,938  
Real estate construction
                                                        
Commercial
     627,083       636,575       640,132       579,795       554,496       583,784       654,039  
One-to-four family residential
     48,945       64,939       79,309       79,565       79,843       82,972       90,051  
Commercial
     560,232       581,937       558,834       564,670       574,087       566,830       544,183  
Installment and consumer:
                                                        
Guaranteed student loans
     30,949       18,477       69,792       54,057       67,610       57,413       63,706  
Other
     43,219       45,217       41,932       40,867       42,432       44,051       44,296  
 
                                          
Total loans, including held for sale
     2,712,267       2,730,332       2,602,697       2,551,447       2,512,339       2,444,785       2,353,970  
Less allowance for loan losses
     (57,777 )     (51,753 )     (46,262 )     (39,773 )     (35,807 )     (31,341 )     (29,950 )
 
                                          
Total loans, net
   $ 2,654,490     $ 2,678,579     $ 2,556,435     $ 2,511,674     $ 2,476,532     $ 2,413,444     $ 2,324,020  
 
                                          
By statement of condition category:
                                                        
Loans held for sale:
                                                        
Student loans
   $ 30,949     $ 18,477     $ 69,792     $ 54,057     $ 67,610     $ 57,413     $ 63,706  
One-to-four family residential
     4,158       6,599       5,563       1,790       3,500       4,283       1,417  
Other
     1,419       930       1,049       1,094       1,138       1,196       1,241  
 
                                          
Total loans held for sale
     36,526       26,006       76,404       56,941       72,248       62,892       66,364  
Portfolio loans
     2,675,741       2,704,326       2,526,293       2,494,506       2,440,091       2,381,893       2,287,606  
 
                                          
Total loans before allowance
   $ 2,712,267     $ 2,730,332     $ 2,602,697     $ 2,551,447     $ 2,512,339     $ 2,444,785     $ 2,353,970  
 
                                          
DEPOSIT COMPOSITION
                                                        
Non-interest bearing demand
   $ 309,767     $ 291,014     $ 274,175     $ 261,940     $ 280,453     $ 299,699     $ 248,315  
Interest-bearing demand
     82,622       94,060       85,629       76,027       70,471       81,415       71,450  
Money market accounts
     506,196       483,162       467,924       454,250       554,357       548,099       553,850  
Savings accounts
     25,636       25,660       15,797       14,135       14,452       13,809       13,808  
Time deposits of $100,000 or more
     888,814       905,202       849,814       802,244       731,773       740,174       690,421  
Other time deposits
     660,127       653,197       636,750       571,526       547,213       527,805       517,083  
 
                                          
Total deposits**
   $ 2,473,162     $ 2,452,295     $ 2,330,089     $ 2,180,122     $ 2,198,719     $ 2,211,001     $ 2,094,927  
 
                                          
NONPERFORMING ASSETS
                                                        
Nonaccrual loans
   $ 109,401     $ 82,812     $ 73,383     $ 59,310     $ 61,557     $ 30,861     $ 26,134  
90 days past due and accruing
     15,122       12,067       10,552       4,673       2,299       1,242       2,807  
 
                                          
Total nonperforming loans
     124,523       94,879       83,935       63,983       63,856       32,103       28,941  
Other real estate owned
     8,987       8,941       5,351       6,092       2,685       2,523       3,328  
 
                                          
Total nonperforming assets
   $ 133,510     $ 103,820     $ 89,286     $ 70,075     $ 66,541     $ 34,626     $ 32,269  
 
                                          
Potential problem loans
   $ 259,472     $ 184,058     $ 133,810     $ 131,516     $ 86,070     $ 71,070     $ 69,588  
 
                                          
ALLOWANCE ACTIVITY
                                                        
Balance, beginning of period
   $ 51,753     $ 46,262     $ 39,773     $ 35,807     $ 31,341     $ 29,950     $ 29,584  
Charge offs
     4,372       2,975       4,810       3,254       2,752       1,892       2,044  
Recoveries
     219       989       417       522       363       93       174  
 
                                          
Net charge offs
     4,153       1,986       4,393       2,732       2,389       1,799       1,870  
Provision for loan losses
     10,177       7,477       10,882       6,698       6,855       3,190       2,236  
 
                                          
Balance, end of period
   $ 57,777     $ 51,753     $ 46,262     $ 39,773     $ 35,807     $ 31,341     $ 29,950  
 
                                          
REGULATORY CAPITAL DATA
                                                        
Tier I capital
   $ 374,805     $ 372,713     $ 369,482     $ 369,049     $ 293,141     $ 261,354     $ 258,272  
Total capital
     411,201       409,764       405,613       404,695       332,012       296,166       291,638  
Total risk adjusted assets
     2,873,558       2,942,821       2,875,290       2,837,473       2,793,843       2,780,538       2,727,853  
 
**Calculation of Core Deposits and Core Funding (Non-GAAP Financial Measures)		                        
Total deposits
   $ 2,473,162     $ 2,452,295     $ 2,330,089     $ 2,180,122     $ 2,198,719     $ 2,211,001     $ 2,094,927  
Less:
                                                        
Brokered and capital market time deposits
     274,870       334,880       374,003       359,793       338,667       369,580       337,330  
Other time deposits of $100,000 or more
     614,143       570,617       515,463       445,896       398,337       381,349       365,875  
 
                                          
Core deposits
   $ 1,584,149     $ 1,546,798     $ 1,440,623     $ 1,374,433     $ 1,461,715     $ 1,460,072     $ 1,391,722  
 
                                          
Plus:
                                                        
Other time deposits of $100,000 or more
     614,143       570,617       515,463       445,896       398,337       381,349       365,875  
Sweep repurchase agreements
     26,500       35,708       24,963       38,034       47,955       41,203       35,087  
 
                                          
Core funding
   $ 2,224,792     $ 2,153,123     $ 1,981,049     $ 1,858,363     $ 1,908,007     $ 1,882,624     $ 1,792,684  
 
                                          
Balance sheet amounts are as of period end unless otherwise noted.