EX-99 2 y83938exv99.htm EX-99 exv99
Exhibit 99
(SOUTHWEST BANCORP LOGO)
     
 
For additional information:
 
  Rick Green
 
  President & CEO
 
  Kerby E. Crowell
 
  EVP & CFO
For Immediate Release
  (405) 372-2230
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings
     April 19, 2010, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $3.3 million, or $0.23 per diluted share for the first quarter 2010, compared to $296,000, or $0.02 per diluted share for the first quarter of 2009, and $2.5 million, or $0.17 per diluted share for the fourth quarter of 2009. At March 31, 2010, total assets were $3.1 billion.
     Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “Our first quarter results continue to demonstrate our ability to maintain top line revenue, effectively manage noninterest expenses, and take steps to control risk. Our earnings growth over last year’s first quarter was driven by a 27% growth in net interest income and a 22% decrease in our provision for loan losses.
     Our operating expenses were up 5% over the first quarter of 2009 due mainly to increases in FDIC insurance premiums and the personnel costs for the Kansas offices we acquired last June, and were 5% lower than the fourth quarter of 2009. Our efficiency ratio for the first quarter of 2010 improved to 49.25% from 53.06% in the first quarter of 2009 and 49.69% for the fourth quarter of 2009.
     At March 31, 2010, our allowance for loan losses was up 4% from December 31, 2009 and represented 2.59% of noncovered portfolio loans versus 1.83% at March 31, 2009 and 2.46% at December 31, 2009. Our provision for loan losses in the first quarter exceeded charge-offs by $2.8 million, while our noncovered nonperforming assets were down $2.3 million from year-end 2009.
     Southwest and its bank subsidiaries have maintained capital levels that exceed the minimums for regulatory “well capitalized” status. At March 31, 2010, Southwest’s total regulatory capital was $416.0 million for a total risk-based capital ratio of 15.28%, and Tier 1 capital was $381.3 million for a Tier 1 risk-based capital ratio of 14.00%.
     Please review the following discussion and the attached financial tables for important additional information regarding our financial condition and performance.”
Financial Overview
     Condition: At March 31, 2010 total assets of $3.1 billion and total loans of $2.6 billion were approximately the same as at year-end 2009.
     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.
     Excluding assets subject to loss sharing agreements with the FDIC (“covered assets”), nonperforming assets decreased to $122.3 million and 4.82% of portfolio loans and other real estate as of March 31, 2010 from $124.6 million and 4.87% of portfolio loans and other real estate as of December 31, 2009. A breakdown of noncovered portfolio loans and noncovered nonperforming assets by type is shown in the following table:

 

 

     
    NASDAQ: OKSB
    OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings    
                                 
    Noncovered     Percentage of     Noncovered     Percentage of  
    portfolio     total noncovered     nonperforming     total noncovered  
(dollars in thousands)   loans     portfolio loans     assets     nonperforming assets  
Real estate construction
   $ 665,468       26.45 %   $ 54,648       44.68 %
Commercial real estate
     1,220,518       48.50       28,520       23.31  
Commercial
     484,874       19.27       9,750       7.97  
Residential real estate mortgages
     107,489       4.27       10,552       8.63  
Other consumer loans
     38,048       1.51       42       0.03  
Other real estate owned
     —       —       18,809       15.38  
 
                        
Total
   $ 2,516,397       100.00 %   $ 122,321       100.00 %
 
                        
     Excluding covered loans, nonaccrual loans were $97.9 million as of March 31, 2010, a decrease of $8.0 million, or 8%, from December 31, 2009. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due, another component of nonperforming loans, were $4,000 as of March 31, 2010 and decreased $306,000 from December 31, 2009. 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 $282.5 million at March 31, 2010, an increase of $15.3 million from December 31, 2009. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses. Included are $6.6 million of potential problem loans acquired from FNBA, which are subject to protection under the loss share agreements with the FDIC.
     Due to changes in federal regulations related to student loans, Southwest is reducing student loan activities. During the quarter student loans were reduced by $26.0 million, or 72%, due to sales. These sales generated $624,000 in gains on sale of loans, which is included in noninterest income.
     At March 31, 2010, 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 $143.7 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.
     First Quarter Results:
     Summary: The $3.0 million increase in our net income available to common shareholders from first quarter 2009 is the result of a $5.8 million increase in net interest income and a $2.4 million decrease in the provision for loan losses, offset in part by a $2.3 million decrease in noninterest income, a $2.1 million increase in income tax expense, and a $659,000 increase in noninterest expense.
     Net Interest Income: Net interest income totaled $26.8 million for first quarter 2010, compared to $21.0 million for first quarter of 2009, an increase of $5.8 million, or 27%, and $27.8 million for the fourth quarter of 2009, a decrease of $1.0 million, or 4%. Net interest margin was 3.59% for the first quarter of 2010, compared to 3.00% for the first quarter of 2009 and 3.71% for the fourth quarter of 2009. Included in the first quarter net interest income is a net recovery of $394,000 from the resolution of a nonperforming loan, discount accretion on loans and loss share receivable, offset by interest reversals on nonaccrual loans.
     Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $8.5 million for the first quarter of 2010, compared to $10.9 million for the first quarter of 2009 and $10.6 million for the fourth quarter of 2009. Noncovered net charge offs totaled $5.8 million, or 0.93% (annualized) of average noncovered portfolio loans for the first quarter of 2010, compared to $4.4 million, or 0.71% (annualized), and $6.0 million, or 0.95% (annualized), of average noncovered portfolio loans for the first and fourth quarters of 2009, respectively.
     Noninterest Income: Noninterest income totaled $4.2 million for the first quarter of 2010, compared to $6.5 million for the first quarter of 2009. The decrease in noninterest income was primarily the result of a $2.9 million decrease in gain on sale of investment securities, offset in part by a $496,000 increase in service charges and fees.

 

 

     
    NASDAQ: OKSB
    OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings    
     Noninterest Expense: Noninterest expense totaled $15.3 million for the first quarter of 2010, compared to $14.6 million for the first quarter of 2009. The increase consists of a $596,000 increase in FDIC and other insurance expense, a $341,000 increase personnel expense, due primarily to the FNBA transaction which occurred in the second half of 2009, and a $208,000 increase in other real estate expense, offset in part by a $555,000 decrease in provision for unfunded loan commitments.
     Efficiency Ratio: The efficiency ratio for the first quarter of 2010 improved to 49.25% from 53.06% and 49.69% for first and fourth quarters of 2009, respectively.
Southwest Bancorp and Subsidiaries
     Southwest is the bank holding company for Stillwater National Bank and Trust Company, Bank of Kansas, and SNB Capital Corporation. 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®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. We became a public company in late 1993 with assets of approximately $434.0 million. At March 31, 2010, we had total assets of $3.1 billion, deposits of $2.6 billion, and shareholders’ equity of $315.3 million.
     Our area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, and commercial and commercial real estate borrowers. We established a strategic focus on healthcare lending in 1974. We provide credit and other services, such as deposits, cash management, and document imaging, for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of March 31, 2010, approximately $708.2 million, or 28%, of our noncovered loan portfolio were loans to individuals and businesses in the healthcare industry.
     We also focus on commercial real estate mortgage and construction credits. Many of our real estate credits are to owner-occupants, who use the property for conducting their business and not primarily for investment. We do not focus on one-to-four family residential development loans or “spec” residential property credits. Additionally, subprime lending has never been a part of our business strategy, and our exposure to subprime loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of March 31, 2010, approximately $1.9 billion, or 73%, of our noncovered loan portfolio was commercial real estate mortgage and construction loans, including $401.5 million of loans to individuals and businesses in the healthcare industry. Our commercial real estate mortgage and construction and commercial loans are concentrated in states that have experienced less adverse effects from the recession than many others.
     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. We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At March 31, 2010, our Texas segment accounted for $1.1 billion, or 41% of total portfolio loans, followed by $926.9 million, or 36%, from our Oklahoma segment, $342.6 million, or 13%, from our Kansas segment, and $260.3 million, or 10%, from our other states segment.
     Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest’s public 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

 

 

     
    NASDAQ: OKSB
    OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings    
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.
     Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of March 31, 2010 through the date its financial statements are filed with the Securities and Exchange Commission. The March 31, 2010 financial statements will be adjusted as necessary to properly consider the impact of subsequent events on estimates used to prepare those statements.

 

 

     
    NASDAQ: OKSB
    OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings    
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 Summary Financial Data by Quarter-2010 and 2009
  Table 5
 
Unaudited Supplemental Analytical Data by Quarter-2010 and 2009
  Table 6

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share) 		  Table 1
                                         
    First Quarter     Fourth Quarter  
QUARTERLY HIGHLIGHTS                   %             %  
    2010     2009     Change     2009     Change  
Operations
                                        
Net interest income
   $ 26,801     $ 21,038       27 %   $ 27,797       (4 )%
Provision for loan losses
     8,531       10,882       (22 )     10,640       (20 )
Noninterest income
     4,178       6,477       (35 )     4,488       (7 )
Noninterest expense
     15,258       14,599       5       16,041       (5 )
Income before taxes
     7,190       2,034       253       5,604       28  
Taxes on income
     2,818       705       300       2,030       39  
Net income
     4,372       1,329       229       3,574       22  
Net income available to common shareholders
     3,329       296       1,025       2,534       31  
Diluted earnings per share
     0.23       0.02       1,050       0.17       35  
Balance Sheet
                                        
Total assets
     3,074,923       2,928,133       5       3,108,291       (1 )
Loans held for sale
     25,586       76,404       (67 )     43,134       (41 )
Noncovered portfolio loans
     2,516,397       2,526,293       (0 )     2,539,294       (1 )
Covered portfolio loans
     76,909       —       —       85,405       (10 )
Total deposits
     2,554,165       2,330,089       10       2,592,730       (1 )
Total shareholders’ equity
     315,341       300,406       5       309,778       2  
Book value per common share
     16.79       16.01       5       16.46       2  
Key Ratios
                                        
Net interest margin
     3.59 %     3.00 %             3.71 %        
Efficiency ratio
     49.25       53.06               49.69          
Total capital to risk-weighted assets
     15.28       14.11               14.55          
Nonperforming loans to portfolio loans - noncovered
     4.11       3.32               4.18          
Shareholders’ equity to total assets
     10.26       10.26               9.97          
Tangible common equity to tangible assets*
     7.87       7.76               7.61          
Return on average assets (annualized)
     0.57       0.18               0.46          
Return on average common equity (annualized)
     5.42       0.50               4.06          
Return on average tangible equity (annualized)
    5.84       1.83               4.78          
 
*   This is a Non-GAAP financial measure. Please see Table 6 for a reconciliation to the most directly comparable GAAP based measure.
Please see accompanying tables for additional financial information.

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share) 		  Table 2
                         
    March 31,     December 31,     March 31,  
    2010     2009     2009  
Assets
                        
Cash and cash equivalents
   $ 146,325     $ 118,847     $ 50,655  
Investment securities:
                        
Held to maturity. Fair value: $6,750, $6,754, $7,388, respectively
     6,670       6,670       7,344  
Available for sale. Amortized cost: $230,522, $236,199, $151,686, respectively
     235,023       237,703       152,826  
Other investments, at cost
     19,144       19,066       18,836  
Loans held for sale
     25,586       43,134       76,404  
Noncovered loans receivable
     2,516,397       2,539,294       2,526,293  
Less: Allowance for loan losses
     (65,168 )     (62,413 )     (46,262 )
 
                  
Net noncovered loans receivable
     2,451,229       2,476,881       2,480,031  
Covered loans receivable (includes loss share of $21.1 million, $23.9 million, $0, respectively)
     76,909       85,405       —  
 
                  
Net loans receivable
     2,528,138       2,562,286       2,480,031  
Accrued interest receivable
     10,271       10,806       10,524  
Premises and equipment, net
     25,996       26,536       24,098  
Noncovered other real estate
     18,809       18,432       5,351  
Covered other real estate
     4,489       4,748       —  
Goodwill
     6,811       6,811       7,071  
Other intangible assets, net
     5,575       5,779       3,868  
Other assets
     42,086       47,473       91,125  
 
                  
Total assets
   $ 3,074,923     $ 3,108,291     $ 2,928,133  
 
                  
 
                        
Liabilities and shareholders’ equity
                        
Deposits:
                        
Noninterest-bearing demand
   $ 317,896     $ 324,829     $ 274,175  
Interest-bearing demand
     119,757       74,201       85,629  
Money market accounts
     506,659       505,521       467,924  
Savings accounts
     25,871       25,730       15,797  
Time deposits of $100,000 or more
     944,871       1,004,439       849,814  
Other time deposits
     639,111       658,010       636,750  
 
                  
Total deposits
     2,554,165       2,592,730       2,330,089  
Accrued interest payable
     2,993       3,191       6,391  
Income tax payable
     6,761       4,486       5,938  
Other liabilities
     10,080       13,121       9,607  
Other borrowings
     103,620       103,022       193,739  
Subordinated debentures
     81,963       81,963       81,963  
 
                  
Total liabilities
     2,759,582       2,798,513       2,627,727  
 
                        
Shareholders’ equity
                        
Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding
     67,205       67,037       66,549  
Common stock — $1 par value; 20,000,000 shares authorized; 14,779,711, 14,750,713, 14,658,042 shares issued, respectively
     14,753       14,751       14,658  
Paid in capital
     49,256       49,029       48,851  
Retained earnings
     181,344       178,016       170,528  
Accumulated other comprehensive income
     2,783       945       720  
Treasury stock, at cost, 0, 0, 49,930 shares, respectively
     —       —       (900 )
 
                  
Total shareholders’ equity
     315,341       309,778       300,406  
 
                  
Total liabilities and shareholders’ equity
   $ 3,074,923     $ 3,108,291     $ 2,928,133  
 
                  

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share) 		  Table 3
                 
    For the three months  
    ended March 31,  
    2010     2009  
Interest income
                
Loans
   $ 34,372     $ 33,268  
Investment securities
     2,320       2,512  
Other interest-earning assets
     67       6  
 
            
Total interest income
     36,759       35,786  
 
                
Interest expense
                
Interest-bearing deposits
     8,174       12,060  
Other borrowings
     517       1,284  
Subordinated debentures
     1,267       1,404  
 
            
Total interest expense
     9,958       14,748  
 
            
Net interest income
     26,801       21,038  
 
                
Provision for loan losses
     8,531       10,882  
 
            
 
                
Net interest income after provision for loan losses
     18,270       10,156  
 
                
Noninterest income
                
Service charges and fees
     3,096       2,600  
Gain on sales of loans
     985       718  
Gain on investment securities
     7       2,921  
Other noninterest income
     90       238  
 
            
Total noninterest income
     4,178       6,477  
 
                
Noninterest expense
                
Salaries and employee benefits
     7,580       7,239  
Occupancy
     2,783       2,731  
FDIC and other insurance
     1,587       991  
Other real estate, net
     106       (102 )
General and administrative
     3,202       3,740  
 
            
Total noninterest expense
     15,258       14,599  
 
            
Income before taxes
     7,190       2,034  
Taxes on income
     2,818       705  
 
            
Net income
   $ 4,372     $ 1,329  
 
            
Net income available to common shareholders
   $ 3,329     $ 296  
 
            
 
                
Basic earnings per common share
   $ 0.23     $ 0.02  
Diluted earnings per common share
     0.23       0.02  
Common dividends declared per share
     0.0000       0.0238  

 

 

SOUTHWEST BANCORP, INC.
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands) 		  Table 4
                                                 
    For the three months ended March 31,  
    2010     2009  
    Average             Average     Average             Average  
    Balance     Interest     Yield/Rate     Balance     Interest     Yield/Rate  
Assets
                                                
Noncovered loans
   $ 2,587,603     $ 32,981       5.17 %   $ 2,595,124     $ 33,268       5.20 %
Covered loans
     82,043       1,391       6.88       —       —       —  
Investment securities
     260,342       2,320       3.61       248,499       2,512       4.10  
Other interest-earning assets
     96,308       67       0.28       2,785       6       0.87  
 
                                        
Total interest-earning assets
     3,026,296       36,759       4.93       2,846,408       35,786       5.10  
Other assets
     79,238                       68,949                  
 
                                            
Total assets
   $ 3,105,534                     $ 2,915,357                  
 
                                            
 
                                                
Liabilities and Shareholders’ Equity
                                                
Interest-bearing demand deposits
   $ 107,510     $ 132       0.50 %   $ 88,714     $ 153       0.70 %
Money market accounts
     504,486       1,013       0.81       469,428       1,353       1.17  
Savings accounts
     25,628       16       0.25       15,074       9       0.24  
Time deposits
     1,649,888       7,013       1.72       1,442,587       10,545       2.96  
 
                                        
Total interest-bearing deposits
     2,287,512       8,174       1.45       2,015,803       12,060       2.43  
Other borrowings
     97,297       517       2.15       236,464       1,284       2.20  
Subordinated debentures
     81,963       1,267       6.18       81,963       1,404       6.85  
 
                                        
Total interest-bearing liabilities
     2,466,772       9,958       1.64       2,334,230       14,748       2.56  
 
                                        
 
                                                
Noninterest-bearing demand deposits
     303,684                       256,493                  
Other liabilities
     19,032                       19,405                  
Shareholders’ equity
     316,046                       305,229                  
 
                                            
Total liabilities and shareholders’ equity
   $ 3,105,534                     $ 2,915,357                  
 
                                            
 
                                                
Net interest income and spread
           $ 26,801       3.29 %           $ 21,038       2.54 %
 
                                        
Net interest margin (1)
                     3.59 %                     3.00 %
 
                                            
Average interest-earning assets to average interest-bearing liabilities
     122.68 %                     121.94 %                
 
                                            
 
(1)   Net interest margin = annualized net interest income / average interest-earning assets

 

 

SOUTHWEST BANCORP, INC.   Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA    
(Dollars in thousands except per share)    
                                         
    2010     2009  
    Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
OPERATIONS
                                        
Interest income:
                                        
Loans
   $ 34,372     $ 36,355     $ 35,607     $ 36,009     $ 33,268  
Investment securities
     2,320       2,433       2,122       2,079       2,512  
Other interest-earning assets
     67       1       4       3       6  
 
                              
Total interest income
     36,759       38,789       37,733       38,091       35,786  
Interest expense:
                                        
Interest bearing demand deposits
     132       66       107       150       153  
Money market accounts
     1,013       1,170       1,220       1,211       1,353  
Savings accounts
     16       16       39       14       9  
Time deposits of $100,000 or more
     4,024       4,340       4,822       5,552       5,980  
Other time deposits
     2,989       3,498       3,909       4,145       4,565  
 
                              
Total interest-bearing deposits
     8,174       9,090       10,097       11,072       12,060  
Other borrowings
     517       625       960       1,180       1,284  
Subordinated debentures
     1,267       1,277       1,276       1,383       1,404  
 
                              
Total interest expense
     9,958       10,992       12,333       13,635       14,748  
 
                              
Net interest income
     26,801       27,797       25,400       24,456       21,038  
Provision for loan losses
     8,531       10,640       10,177       7,477       10,882  
Noninterest income:
                                        
Service charges and fees
     3,096       3,295       2,992       2,817       2,600  
Gain on sales of loans
     985       933       386       926       718  
Gain (loss) on investment securities
     7       3       10       (9 )     2,921  
Other noninterest income
     90       257       322       3,527       238  
 
                              
Total noninterest income
     4,178       4,488       3,710       7,261       6,477  
Noninterest expense:
                                        
Salaries and employee benefits
     7,580       7,349       7,824       6,887       7,239  
Occupancy
     2,783       3,159       2,958       2,789       2,731  
FDIC and other insurance
     1,587       1,101       1,134       2,319       991  
Other real estate, net
     106       39       90       103       (102 )
Provision for unfunded loan commitments
     (465 )     147       (79 )     (388 )     90  
Other general and administrative
     3,667       4,246       3,601       2,980       3,650  
 
                              
Total noninterest expenses
     15,258       16,041       15,528       14,690       14,599  
 
                              
Income before taxes
     7,190       5,604       3,405       9,550       2,034  
Taxes on income
     2,818       2,030       1,271       3,605       705  
 
                              
Net income
   $ 4,372     $ 3,574     $ 2,134     $ 5,945     $ 1,329  
 
                              
Net income available to common shareholders
   $ 3,329     $ 2,534     $ 1,097     $ 4,910     $ 296  
 
                              
PER SHARE DATA
                                        
Basic earnings per common share
   $ 0.23     $ 0.17     $ 0.07     $ 0.34     $ 0.02  
Diluted earnings per common share
     0.23       0.17       0.07       0.33       0.02  
Common dividends declared per share
     0.0000       0.0238       0.0238       0.0238       0.0238  
Book value per share
     16.79       16.46       16.43       16.30       16.01  
Tangible book value per share*
     16.33       15.99       15.96       15.84       15.52  
COMMON STOCK
                                        
Shares issued
     14,779,711       14,750,713       14,748,223       14,658,042       14,658,042  
Less treasury shares
     —       —       —       (15,602 )     (49,930 )
 
                              
Outstanding shares
     14,779,711       14,750,713       14,748,223       14,642,440       14,608,112  
 
                              
OTHER FINANCIAL DATA
                                        
Investment securities
   $ 260,837     $ 263,439     $ 258,790     $ 243,077     $ 179,006  
Loans held for sale
     25,586       43,134       36,526       26,006       76,404  
Noncovered portfolio loans
     2,516,397       2,539,294       2,572,111       2,587,230       2,526,293  
Total noncovered loans
     2,541,983       2,582,428       2,608,637       2,613,236       2,602,697  
Covered portfolio loans
     76,909       85,405       103,630       117,096       —  
Total assets
     3,074,923       3,108,291       3,029,347       3,038,985       2,928,133  
Total deposits
     2,554,165       2,592,730       2,473,162       2,452,295       2,330,089  
Other borrowings
     103,620       103,022       146,449       176,368       193,739  
Subordinated debentures
     81,963       81,963       81,963       81,963       81,963  
Total shareholders’ equity
     315,341       309,778       309,118       305,416       300,406  
Mortgage servicing portfolio
     241,224       237,459       223,226       209,425       179,959  
INTANGIBLE ASSET DATA
                                        
Goodwill
   $ 6,811     $ 6,811     $ 6,811     $ 6,811     $ 7,071  
Core deposit intangible
     3,967       4,103       4,240       4,378       2,498  
Mortgage servicing rights
     1,603       1,670       1,625       1,589       1,362  
Nonmortgage servicing rights
     5       6       7       7       8  
 
                              
Total intangible assets
   $ 12,386     $ 12,590     $ 12,683     $ 12,785     $ 10,939  
 
                              
Intangible amortization expense
   $ 359     $ 381     $ 344     $ 391     $ 204  
 
                              
Continued
 
*   This is a Non-GAAP based financial measure.

 

 

SOUTHWEST BANCORP, INC.   Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA   Continued
(Dollars in thousands except per share)    
                                         
    2010     2009  
    Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
LOAN COMPOSITION
                                        
Noncovered
                                        
Real estate mortgage:
                                        
Commercial
   $ 1,230,009     $ 1,212,409     $ 1,221,739     $ 1,208,819     $ 1,098,587  
One-to-four family residential
     111,185       114,614       125,034       116,068       114,111  
Real estate construction
                                        
Commercial
     630,472       618,078       612,905       622,298       640,132  
One-to-four family residential
     34,996       41,109       39,009       51,292       79,309  
Commercial
     487,074       520,505       538,757       554,734       558,834  
Installment and consumer:
                                        
Guaranteed student loans
     10,199       36,163       30,949       18,477       69,792  
Other
     38,048       39,550       40,244       41,548       41,932  
 
                              
Total noncovered loans, including held for sale
     2,541,983       2,582,428       2,608,637       2,613,236       2,602,697  
Less allowance for loan losses
     (65,168 )     (62,413 )     (57,777 )     (51,753 )     (46,262 )
 
                              
Total noncovered loans, net
   $ 2,476,815     $ 2,520,015     $ 2,550,860     $ 2,561,483     $ 2,556,435  
 
                              
Covered
                                        
Real estate mortgage:
                                        
Commercial
   $ 37,487     $ 39,836     $ 37,820     $ 40,411     $ —  
One-to-four family residential
     10,843       12,630       17,246       17,889       —  
Real estate construction
                                        
Commercial
     11,173       12,515       14,178       14,277       —  
One-to-four family residential
     5,273       5,324       9,936       13,647       —  
Commercial
     10,807       13,412       21,475       27,203       —  
Installment and consumer:
     1,326       1,688       2,975       3,669       —  
 
                              
Total covered loans
   $ 76,909     $ 85,405     $ 103,630     $ 117,096     $ —  
 
                              
DEPOSIT COMPOSITION
                                        
Non-interest bearing demand
   $ 317,896     $ 324,829     $ 309,767     $ 291,014     $ 274,175  
Interest-bearing demand
     119,757       74,201       82,622       94,060       85,629  
Money market accounts
     506,659       505,521       506,196       483,162       467,924  
Savings accounts
     25,871       25,730       25,636       25,660       15,797  
Time deposits of $100,000 or more
     944,871       1,004,439       888,814       905,202       849,814  
Other time deposits
     639,111       658,010       660,127       653,197       636,750  
 
                              
Total deposits
   $ 2,554,165     $ 2,592,730     $ 2,473,162     $ 2,452,295     $ 2,330,089  
 
                              
LOANS BY SEGMENT
                                        
Oklahoma banking
   $ 926,870     $ 933,150     $ 943,982     $ 967,981     $ 949,454  
Texas banking
     1,063,511       1,054,404       1,042,369       1,037,694       990,135  
Kansas banking
     342,596       359,633       400,710       412,314       309,774  
Other states banking
     260,329       277,512       288,680       286,337       276,930  
 
                              
Subtotal
     2,593,306       2,624,699       2,675,741       2,704,326       2,526,293  
Secondary market
     25,586       43,134       36,526       26,006       76,404  
 
                              
Total loans
   $ 2,618,892     $ 2,667,833     $ 2,712,267     $ 2,730,332     $ 2,602,697  
 
                              
NET INCOME BY SEGMENT
                                        
Oklahoma banking
   $ 2,820     $ 3,807     $ 2,529     $ 3,284     $ 3,210  
Texas banking
     1,656       3,591       2,686       3,662       1,119  
Kansas banking
     (355 )     (2,328 )     (1,180 )     2,405       598  
Other states banking
     1,722       300       57       (78 )     (1,974 )
 
                              
Subtotal
     5,843       5,370       4,092       9,273       2,953  
Secondary market
     327       (3 )     (201 )     117       (61 )
Other operations
     (1,798 )     (1,793 )     (1,757 )     (3,445 )     (1,563 )
 
                              
Net income
   $ 4,372     $ 3,574     $ 2,134     $ 5,945     $ 1,329  
 
                              
OFFICES AND EMPLOYEES
                                        
FTE Employees
     455       466       471       478       425  
ATM’s
     43       44       44       44       40  
Branches
     23       24       24       24       18  
Loan production offices
     2       3       3       3       3  
Assets per employee
   $ 6,758     $ 6,670     $ 6,432     $ 6,358     $ 6,890  
 
Balance sheet amounts are as of period end unless otherwise noted.

 

 

SOUTHWEST BANCORP, INC.   Table 6
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA    
(Dollars in thousands except per share)    
                                         
    2010     2009  
    Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
PERFORMANCE RATIOS
                                        
Return on average assets (annualized)
     0.57 %     0.46 %     0.28 %     0.81 %     0.18 %
Return on average common equity (annualized)
     5.42       4.06       1.78       8.26       0.50  
Return on average tangible equity (annualized)
     5.84       4.78       2.87       8.12       1.83  
Net interest margin (annualized)
     3.59       3.71       3.39       3.41       3.00  
Total dividends declared to net income
     20.02       34.31       57.46       20.58       92.00  
Effective tax rate
     39.19       36.22       37.33       37.75       34.66  
Efficiency ratio
     49.25       49.69       53.34       46.32       53.06  
NONPERFORMING ASSETS
                                        
Noncovered
                                        
Nonaccrual loans
   $ 97,858     $ 105,887     $ 94,715     $ 74,205     $ 73,383  
90 days past due and accruing
     4       310       10,578       8,409       10,552  
Restructured
     5,650       —       —       —       —  
 
                              
Total nonperforming loans
     103,512       106,197       105,293       82,614       83,935  
Other real estate
     18,809       18,432       6,389       6,003       5,351  
 
                              
Total nonperforming assets
   $ 122,321     $ 124,629     $ 111,682     $ 88,617     $ 89,286  
 
                              
Potential problem loans
   $ 275,912     $ 258,399     $ 255,051     $ 178,081     $ 133,810  
 
                              
Covered
                                        
Nonaccrual loans
   $ 16,192     $ 12,322     $ 14,686     $ 8,607     $ —  
90 days past due and accruing
     356       1,136       4,544       3,658       —  
 
                              
Total nonperforming loans
     16,548       13,458       19,230       12,265       —  
Other real estate
     4,489       4,748       2,598       2,938       —  
 
                              
Total nonperforming assets
   $ 21,037     $ 18,206     $ 21,828     $ 15,203     $ —  
 
                              
Potential problem loans
   $ 6,620     $ 8,874     $ 4,421     $ 5,977     $ —  
 
                              
ALLOWANCE ACTIVITY
                                        
Balance, beginning of period
   $ 62,413     $ 57,777     $ 51,753     $ 46,262     $ 39,773  
Charge offs
     6,545       6,756       4,372       2,975       4,810  
Recoveries
     769       752       219       989       417  
 
                              
Net charge offs
     5,776       6,004       4,153       1,986       4,393  
Provision for loan losses
     8,531       10,640       10,177       7,477       10,882  
 
                              
Balance, end of period
   $ 65,168     $ 62,413     $ 57,777     $ 51,753     $ 46,262  
 
                              
ASSET QUALITY RATIOS
                                        
Noncovered
                                        
Nonperforming assets to portfolio loans and other real estate
     4.82 %     4.87 %     4.33 %     3.41 %     3.53 %
Nonperforming loans to portfolio loans
     4.11       4.18       4.09       3.19       3.32  
Net loan charge-offs to average portfolio loans (annualized)
     0.93       0.95       0.62       0.31       0.71  
Allowance for loan losses to portfolio loans
     2.59       2.46       2.25       2.00       1.83  
Allowance for loan losses to nonperforming loans
     62.96       58.77       54.87       62.64       55.12  
Covered
                                        
Nonperforming assets to portfolio loans and other real estate
     25.84 %     20.19 %     20.55 %     12.67 %     —  
Nonperforming loans to portfolio loans
     21.52       15.76       18.56       10.47       —  
CAPITAL RATIOS
                                        
Average total shareholders’ equity to average assets
     10.18 %     10.31 %     10.24 %     10.35 %     10.47 %
Leverage ratio
     12.32       12.42       12.39       12.70       12.72  
Tier 1 capital to risk-weighted assets
     14.00       13.28       13.04       12.67       12.85  
Total capital to risk-weighted assets
     15.28       14.55       14.31       13.92       14.11  
Tangible common equity to tangible assets**
     7.87       7.61       7.79       7.65       7.76  
REGULATORY CAPITAL DATA
                                        
Tier I capital
   $ 381,280     $ 377,418     $ 374,805     $ 372,713     $ 369,482  
Total capital
     415,955       413,438       411,201       409,764       405,613  
Total risk adjusted assets
     2,722,628       2,841,476       2,873,558       2,942,821       2,875,290  
Average total assets
     3,094,756       3,039,014       3,024,885       2,935,189       2,905,653  
 
**   Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
                                         
Total shareholders’ equity
   $ 315,341     $ 309,778     $ 309,118     $ 305,416     $ 300,406  
Less:
                                        
Goodwill
     6,811       6,811       6,811       6,811       7,071  
Preferred stock
     67,205       67,037       66,872       66,710       66,549  
 
                              
Tangible common equity
   $ 241,325     $ 235,930     $ 235,435     $ 231,895     $ 226,786  
 
                              
Total assets
   $ 3,074,923     $ 3,108,291     $ 3,029,347     $ 3,038,985     $ 2,928,133  
Less goodwill
     6,811       6,811       6,811       6,811       7,071  
 
                              
Tangible assets
   $ 3,068,112     $ 3,101,480     $ 3,022,536     $ 3,032,174     $ 2,921,062  
 
                              
Tangible common equity to tangible assets
     7.87 %     7.61 %     7.79 %     7.65 %     7.76 %
Balance sheet amounts and ratios are as of period end unless otherwise noted.