STILLWATER, Okla., July 19, 2016 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the second quarter of 2016 of $5.4 million, or $0.28 per diluted share, compared to $4.2 million, or $0.22 per diluted share, for the second quarter of 2015. Net income for the six months ended June 30, 2016 totaled $7.3 million, or $0.38 per diluted share, compared to $8.7 million, or $0.46 per diluted share, for the six months ended June 30, 2015. Included in the first six months of 2016 results is a first quarter $4.4 million loan loss provision primarily driven by the impact of low energy prices combined with deterioration in a few general business credits.
Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable August 12, 2016 to shareholders of record as of July 29, 2016.
Mark Funke, President and CEO, stated, “We are pleased with the improvement in earnings and efficiency. Loan growth was good in the second quarter and asset quality improved. Here are several highlights to take from this quarter.
- Total loans grew $39.5 million to $1.82 billion from first quarter of 2016 and $371.9 million, or 26%, compared to the second quarter of 2015. We funded $51.4 million in new loans during the second quarter of 2016 making this our tenth consecutive quarter of loan growth.
- The quarterly net interest margin was 3.48% at June 30, 2016, compared to 3.54% at March 31, 2016 and 3.31% at June 30, 2015.
- Pre-tax, pre-provision income was $8.0 million in the second quarter, an increase of 8% from $7.5 million in the first quarter of 2016 and an increase of 51% from $5.3 million in the second quarter of 2015.
- The efficiency ratio for the second quarter of 2016 improved to 65.70%, compared to 67.48% for the first quarter of 2016 and 71.83% for the second quarter of 2015.
- On May 25, 2016 our board of directors authorized a fourth consecutive share repurchase program of up to another 5.0%, or approximately 921,000 shares of Southwest’s outstanding common stock, which becomes effective as of the earlier of: (a) the date Southwest completes its repurchase of all the shares of Southwest’s common stock that it is authorized to purchase under its current stock repurchase program that became effective as of February 23, 2016; or (b) February 23, 2017, which is the original expiration date of the current program. During the first six months of 2016, Southwest repurchased 1,336,387 shares for a total of $21.0 million, and since August 2014, Southwest has repurchased 2,457,945 shares under the share repurchase programs for a total of $39.8 million.
“Diluted earnings per share of $0.28 was up 27% from the same quarter a year ago. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing risk and expenses.”
Financial Overview
Condition: As of June 30, 2016, total assets were $2.4 billion, an increase of $41.4 million, when compared to March 31, 2016. As of June 30, 2016, total loans were $1.8 billion, an increase of $39.5 million from the prior quarter end. As of June 30, 2016, investment securities were $422.3 million, a decrease of $0.7 million from the prior quarter end. Cash and cash equivalents at June 30, 2016 were $68.1 million, an increase of $0.7 million from March 31, 2016.
At June 30, 2016, the allowance for loan losses was $26.9 million, a decrease of $0.3 million when compared to March 31, 2016 and an increase of $0.7 million when compared to June 30, 2015. The allowance for loan losses to portfolio loans was 1.48% as of June 30, 2016, down from 1.53% as of March 31, 2016, and from 1.82% as of June 30, 2015. The allowance for loan losses to nonperforming loans was 121.80% as of June 30, 2016, compared to 122.01% as of March 31, 2016 and 295.03% as of June 30, 2015. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.87% of gross loans as of June 30, 2016, compared to 1.96% as of March 31, 2016.
Nonperforming loans were $22.3 million at June 30, 2016, an increase of $0.1 million from March 31, 2016, and an increase of $13.4 million from June 30, 2015. Other real estate at June 30, 2016 was $2.1 million, which is down from $2.3 million at March 31, 2016 and $2.4 million at June 30, 2015. Nonperforming assets were $24.4 million, or 1.35% of portfolio loans and other real estate, as of June 30, 2016, compared to $24.5 million, or 1.38% of portfolio loans and other real estate, as of March 31, 2016, and $11.3 million, or 0.78% of portfolio loans and other real estate, as of June 30, 2015.
As of June 30, 2016, total deposits were $1.9 billion, an increase of $7.6 million, when compared to March 31, 2016. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 83% and 87% of total funding as of June 30, 2016 and March 31, 2016, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 17% and 13% of total funding at June 30, 2016 and March 31, 2016, respectively. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.
The capital ratios of Southwest and Bank SNB as of June 30, 2016 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $339.6 million, for a total risk-based capital ratio of 15.56%, Common Equity Tier 1 capital was $266.9 million, for a Common Equity Tier 1 ratio of 12.23%, and Tier 1 capital was $312.2 million, for a Tier 1 risk-based capital ratio of 14.31%. Bank SNB had total regulatory capital of $321.7 million, for a total risk-based capital ratio of 14.78% and Common Equity Tier 1 and Tier 1 capital of $294.4 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.53%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Second Quarter Results:
Summary: For the second quarter of 2016, net income was $5.4 million, compared to $1.9 million for the first quarter of 2016 and $4.2 million for the second quarter of 2015. Pre-tax, pre-provision income for the second quarter of 2016 was $8.0 million, compared to $7.5 million for the first quarter of 2016 and $5.3 million for the second quarter of 2015.
The $3.5 million increase in net income compared to the first quarter of 2016 was primarily due to the $4.4 million provision for loan losses recorded in the prior quarter. The increase in net income also includes a $0.5 million increase in noninterest income and a $0.7 million decrease in noninterest expense, offset in part by a $0.1 million decrease in net interest income, and a $1.9 million increase in income taxes.
The $1.3 million increase in net income compared to the second quarter of 2015 was due to a $3.9 million increase in net interest income and a $0.5 million increase in noninterest income, offset in part by a $1.1 million increase in the provision for loan losses, a $1.3 million increase in noninterest expense, and a $0.7 million increase in income taxes. The increases in net interest income, noninterest income, and noninterest expense are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015.
Net Interest Income: Net interest income totaled $19.7 million for the second quarter of 2016, compared to $19.8 million for the first quarter of 2016 and $15.8 million for the second quarter of 2015. Net interest margin was 3.48% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016 and 3.31% for the second quarter of 2015. Included in interest income for the second quarter of 2016, the first quarter of 2016, and the second quarter of 2015 was $0.2 million, $0.3 million, and $0.2 million of accelerated discount accretion, respectively. The net effects of these adjustments on the net interest margins were a 3 basis point, a 5 basis point, and a 5 basis point increase, respectively for each quarter. Average loans (including loans held for sale) for the second quarter of 2016 increased $10.6 million when compared to March 31, 2016, and $360.5 million when compared to June 30, 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.
Provision (Credit) for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a provision of $10,000 for the second quarter of 2016, compared to a provision of $4.4 million for the first quarter of 2016, and a negative provision of $1.1 million for the second quarter of 2015. The first quarter 2016 provision was driven primarily by the impact of low energy prices combined with deterioration in a few general business credits. During the second quarter of 2016, net charge-offs totaled $0.3 million, or 0.07% (annualized) of average portfolio loans, compared to net charge-offs of $3.3 million, or 0.75% (annualized) of average portfolio loans for the first quarter of 2016 and net recoveries of $0.1 million, or (0.03%) (annualized) of average portfolio loans for the second quarter of 2015.
Noninterest Income: Noninterest income totaled $3.9 million for the second quarter of 2016, compared to $3.4 million for the first quarter of 2016 and the second quarter of 2015.
The $0.5 million increase from the first quarter of 2016 is primarily the result of a $0.3 million increase in the gain on sales of mortgage loans and a $0.1 million increase in other noninterest income, which is primarily from customer risk management interest rate swap income. Included in service charges and fees was a $0.2 million and a $0.3 million impairment on mortgage servicing rights for the second quarter of 2016 and the first quarter of 2016, respectively.
The $0.5 million increase from the second quarter of 2015 is the result of a $0.1 million increase in service charges and fees, a $0.1 million increase in the gain on sales of mortgage loans and a $0.2 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income.
Noninterest Expense: Noninterest expense totaled $15.3 million for the second quarter of 2016, compared to $16.0 million for the first quarter of 2016 and $14.0 million for the second quarter of 2015.
The $0.7 million decrease in noninterest expense from the first quarter of 2016 was primarily due to a $0.5 million decrease in the provision for unfunded loan commitments and a $0.5 million decrease in general and administrative expense, which includes a $0.2 million decrease in business development expenses and a $0.2 million decrease in professional fees, offset in part by a $0.2 million increase in personnel expense.
The $1.3 million increase in noninterest expense from the second quarter of 2015 consisted of a $1.3 million increase in personnel expense, a $0.5 million increase in occupancy, and a $0.1 million increase in FDIC and other insurance, offset in part by a $0.1 million decrease in other real estate expense, a $0.4 million decrease in the provision for unfunded loan commitments, and a $0.1 million decrease in general and administrative expense, which includes a $0.1 million decrease in business development expenses, a $0.1 million decrease in professional fees, and a $0.1 million increase in intangible amortization expense.
Income Tax: Income tax expense totaled $2.9 million for the second quarter of 2016, compared to $1.0 million for the first quarter of 2016 and $2.2 million for the second quarter of 2015. The income tax expense fluctuates in relation to pre-tax income levels. The second quarter of 2016 effective tax rate was 34.70%, compared to 35.19% for the first quarter of 2016 and 34.51% for the second quarter of 2015. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Year-to-Date Results:
Summary: Net income was $7.3 million for the six months ended June 30, 2016, compared to $8.7 million for the six months ended June 30, 2015. The $1.4 million decrease in net income from 2015 is the result of a $7.4 million increase in the provision for loan losses and a $4.2 million increase in noninterest expense due to increased personnel, occupancy, and general and administrative expenses, offset in part by an $8.1 million increase in net interest income, a $1.0 million increase in noninterest income, and a $1.0 million decrease in income taxes. The increases in noninterest expense, net interest income, and noninterest income are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015.
Net Interest Income: Net interest income totaled $39.5 million for the first six months of 2016, compared to $31.4 million for the first six months of 2015, an increase of $8.1 million. Year-to-date net interest margin was 3.51%, compared to 3.28% for 2015. Included in interest income for the first six months of 2016 and the first six months of 2015 was $0.5 million and $0.3 million of accelerated discount accretion, respectively. The net effect on the net interest margin was a 4 basis point and a 3 basis point increase, respectively for each six-month period. Average loans (including loans held for sale) as of June 30, 2016 increased $365.1 million when compared to June 30, 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.
Provision (Credit) for Loan Losses and Net Charge-offs: The provision for loan losses is the amount of expense that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was $4.4 million for the first six months of 2016, compared to a negative provision of $3.0 million for the first six months of 2015. The provision for loans losses for the first six months of 2016 was driven primarily by the impact of low energy prices combined with deterioration in a few general business credits that occurred in the first quarter of 2016. Net charge-offs totaled $3.6 million, or 0.41% (annualized) of average portfolio loans year-to-date as of June 30, 2016, compared to net recoveries of $0.8 million, or (0.11%) (annualized) of average portfolio loans for the same period in 2015.
Noninterest Income: Noninterest income totaled $7.3 million for the first six months of 2016, compared to $6.2 million for the first six months of 2015. The increase consists of a $0.2 million increase in service charges and fees, which for the first six months of 2016 includes a $0.5 million impairment of mortgage servicing rights, a $0.2 million increase in gains on sales of mortgage loans, a $0.1 million increase in the gain on sale of investment securities and, a $0.5 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income.
Noninterest Expense: Noninterest expense totaled $31.3 million for the first six months of 2016, compared to $27.1 million for the first six months of 2015. The increase consists of a $2.7 million increase in personnel expense, a $0.9 million increase in occupancy, a $0.2 million increase in FDIC and other insurance, a $0.1 million increase in the provision for unfunded loan commitments, and a $0.5 million increase in general and administrative expense, which includes a $0.1 million increase in business development expense, a $0.1 million increase in telephone expense, and a $0.2 million increase in intangible amortization expense, offset in part by a $0.1 million decrease in other real estate expense.
Income Tax: Income tax expense totaled $3.9 million for the first six months of 2016, compared to $4.9 million for the first six months of 2015. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 34.83% as of June 30, 2016, compared to 36.10% as of June 30, 2015. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.
Conference Call
Southwest will host a conference call to review these results on Wednesday, July 20, 2016 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10088802. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest’s website at www.oksb.com or http://services.choruscall.com/links/oksb160720. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10088802. Telephone replay access will be available until August 20, 2016.
Southwest Bancorp and Subsidiaries
Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At June 30, 2016, Southwest had total assets of approximately $2.4 billion, deposits of $1.9 billion, and shareholders’ equity of $282.4 million.
Southwest’s area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its banking subsidiary provide credit and other remittance services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of June 30, 2016, approximately $435.2 million, or 24%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.
Caution About Forward-Looking Statements
Southwest makes forward-looking statements in this news release that are subject to risks and uncertainties. These statements are intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include:
- Statements of Southwest's goals, intentions, and expectations;
- Estimates of risks and of future costs and benefits;
- Expectations regarding Southwest’s future financial performance and the financial performance of its operating segments;
- Expectations regarding regulatory actions;
- Expectations regarding Southwest’s ability to utilize tax loss benefits;
- Expectations regarding Southwest’s stock repurchase program;
- Expectations regarding dividends;
- Expectations regarding acquisitions and divestitures;
- Assessments of loan quality, probable loan losses or negative provisions, and the amount and timing of loan payoffs;
- Estimates of the value of assets held for sale or available for sale; and
- Statements of Southwest’s ability to achieve financial and other goals.
These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2015. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors”.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. Southwest does not intend, and undertakes no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of June 30, 2016 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2016 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
The Southwest Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8074
The Bank SNB logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=23106
| Financial Tables | |
| Unaudited Financial Highlights | Table 1 |
| Unaudited Consolidated Statements of Financial Condition | Table 2 |
| Unaudited Consolidated Statements of Operations | Table 3 |
| Unaudited Average Balances, Yields, and Rates-Quarterly | Table 4 |
| Unaudited Average Balances, Yields, and Rates-YTD | Table 5 |
| Unaudited Quarterly Summary Loan Data | Table 6 |
| Unaudited Quarterly Summary Financial Data | Table 7 |
| Unaudited Quarterly Supplemental Analytical Data | Table 8 |
| SOUTHWEST BANCORP, INC. | Table 1 | ||||||||||||||||||||||||||
| UNAUDITED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
| (Dollars in thousands, except per share) | |||||||||||||||||||||||||||
| Second Quarter | First Quarter | ||||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS | 2016 | 2015 | % Change | 2016 | % Change | ||||||||||||||||||||||
| Operations | |||||||||||||||||||||||||||
| Net interest income | $ | 19,695 | $ | 15,791 | 25 | % | $ | 19,840 | (1 | )% | |||||||||||||||||
| Provision (credit) for loan losses | 10 | (1,136 | ) | (101 | ) | 4,375 | (100 | ) | |||||||||||||||||||
| Noninterest income | 3,871 | 3,409 | 14 | 3,415 | 13 | ||||||||||||||||||||||
| Noninterest expense | 15,268 | 13,982 | 9 | 15,996 | (5 | ) | |||||||||||||||||||||
| Income before taxes | 8,288 | 6,354 | 30 | 2,884 | 187 | ||||||||||||||||||||||
| Taxes on income | 2,876 | 2,193 | 31 | 1,015 | 183 | ||||||||||||||||||||||
| Net income | 5,412 | 4,161 | 30 | 1,869 | 190 | ||||||||||||||||||||||
| Diluted earnings per share | 0.28 | 0.22 | 27 | 0.10 | 193 | ||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||
| Total assets | 2,402,262 | 2,031,581 | 18 | 2,360,819 | 2 | ||||||||||||||||||||||
| Loans held for sale | 7,090 | 6,687 | 6 | 1,803 | 293 | ||||||||||||||||||||||
| Portfolio loans | 1,814,287 | 1,442,743 | 26 | 1,780,081 | 2 | ||||||||||||||||||||||
| Total deposits | 1,902,865 | 1,624,446 | 17 | 1,895,248 | 0 | ||||||||||||||||||||||
| Total shareholders' equity | 282,360 | 273,681 | 3 | 285,661 | (1 | ) | |||||||||||||||||||||
| Book value per common share | 15.06 | 14.38 | 5 | 14.81 | 2 | ||||||||||||||||||||||
| Key Ratios | |||||||||||||||||||||||||||
| Net interest margin | 3.48 | % | 3.31 | % | 3.54 | % | |||||||||||||||||||||
| Efficiency ratio | 65.70 | 71.83 | 67.48 | ||||||||||||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 19.09 | 15.39 | ||||||||||||||||||||||||
| Nonperforming loans to portfolio loans | 1.23 | 0.62 | 1.25 | ||||||||||||||||||||||||
| Shareholders' equity to total assets | 11.75 | 13.47 | 12.10 | ||||||||||||||||||||||||
| Tangible common equity to tangible assets* | 11.16 | 13.40 | 11.49 | ||||||||||||||||||||||||
| Return on average assets (annualized) | 0.91 | 0.85 | 0.32 | ||||||||||||||||||||||||
| Return on average common equity (annualized) | 7.67 | 6.11 | 2.56 | ||||||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 8.13 | 6.14 | 2.71 | ||||||||||||||||||||||||
| Six Months | |||||||||||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2016 | 2015 | % Change | ||||||||||||||||||||||||
| Operations | |||||||||||||||||||||||||||
| Net interest income | $ | 39,535 | $ | 31,401 | 26 | % | |||||||||||||||||||||
| Provision (credit) for loan losses | 4,385 | (3,023 | ) | (245 | ) | ||||||||||||||||||||||
| Noninterest income | 7,286 | 6,249 | 17 | ||||||||||||||||||||||||
| Noninterest expense | 31,264 | 27,064 | 16 | ||||||||||||||||||||||||
| Income before taxes | 11,172 | 13,609 | (18 | ) | |||||||||||||||||||||||
| Taxes on income | 3,891 | 4,913 | (21 | ) | |||||||||||||||||||||||
| Net income | 7,281 | 8,696 | (16 | ) | |||||||||||||||||||||||
| Diluted earnings per share | 0.38 | 0.46 | (17 | ) | |||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||
| Total assets | 2,402,262 | 2,031,581 | 18 | ||||||||||||||||||||||||
| Loans held for sale | 7,090 | 6,687 | 6 | ||||||||||||||||||||||||
| Portfolio loans | 1,814,287 | 1,442,743 | 26 | ||||||||||||||||||||||||
| Total deposits | 1,902,865 | 1,624,446 | 17 | ||||||||||||||||||||||||
| Total shareholders' equity | 282,360 | 273,681 | 3 | ||||||||||||||||||||||||
| Book value per common share | 15.06 | 14.38 | 5 | ||||||||||||||||||||||||
| Key Ratios | |||||||||||||||||||||||||||
| Net interest margin | 3.51 | % | 3.28 | % | |||||||||||||||||||||||
| Efficiency ratio | 66.58 | 71.76 | |||||||||||||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 19.09 | |||||||||||||||||||||||||
| Nonperforming loans to portfolio loans | 1.23 | 0.62 | |||||||||||||||||||||||||
| Shareholders' equity to total assets | 11.75 | 13.47 | |||||||||||||||||||||||||
| Tangible common equity to tangible assets* | 11.16 | 13.40 | |||||||||||||||||||||||||
| Return on average assets (annualized) | 0.62 | 0.88 | |||||||||||||||||||||||||
| Return on average common equity (annualized) | 5.07 | 6.44 | |||||||||||||||||||||||||
| Return on average tangible common equity (annualized)** | 5.38 | 6.48 | |||||||||||||||||||||||||
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 7 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.
| SOUTHWEST BANCORP, INC. | Table 2 | |||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Cash and due from banks | $ | 35,822 | $ | 24,971 | $ | 22,923 | ||||||||||||||||
| Interest-bearing deposits | 32,266 | 53,158 | 133,765 | |||||||||||||||||||
| Cash and cash equivalents | 68,088 | 78,129 | 156,688 | |||||||||||||||||||
| Securities held to maturity (fair values of $12,660, $12,282, and $11,818 respectively) | 12,161 | 11,797 | 11,364 | |||||||||||||||||||
| Securities available for sale (amortized cost of $406,427, $401,136 and $360,609, respectively) | 410,135 | 400,331 | 361,896 | |||||||||||||||||||
| Loans held for sale | 7,090 | 7,453 | 6,687 | |||||||||||||||||||
| Loans receivable | 1,814,287 | 1,771,975 | 1,442,743 | |||||||||||||||||||
| Less: Allowance for loan losses | (26,876 | ) | (26,106 | ) | (26,219 | ) | ||||||||||||||||
| Net loans receivable | 1,787,411 | 1,745,869 | 1,416,524 | |||||||||||||||||||
| Accrued interest receivable | 5,730 | 5,767 | 4,281 | |||||||||||||||||||
| Non-hedge derivative asset | 5,163 | 1,793 | 701 | |||||||||||||||||||
| Premises and equipment, net | 22,971 | 23,819 | 18,251 | |||||||||||||||||||
| Other real estate | 2,122 | 2,274 | 2,393 | |||||||||||||||||||
| Goodwill | 13,467 | 13,467 | 1,214 | |||||||||||||||||||
| Other intangible assets, net | 5,934 | 6,615 | 3,923 | |||||||||||||||||||
| Other assets | 61,990 | 59,708 | 47,659 | |||||||||||||||||||
| Total assets | $ | 2,402,262 | $ | 2,357,022 | $ | 2,031,581 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 545,421 | $ | 596,494 | $ | 515,156 | ||||||||||||||||
| Interest-bearing demand | 160,886 | 151,015 | 131,547 | |||||||||||||||||||
| Money market accounts | 547,415 | 534,357 | 496,178 | |||||||||||||||||||
| Savings accounts | 55,209 | 56,333 | 35,647 | |||||||||||||||||||
| Time deposits of $100,000 or more | 323,137 | 311,538 | 233,105 | |||||||||||||||||||
| Other time deposits | 270,797 | 234,368 | 212,813 | |||||||||||||||||||
| Total deposits | 1,902,865 | 1,884,105 | 1,624,446 | |||||||||||||||||||
| Accrued interest payable | 931 | 867 | 774 | |||||||||||||||||||
| Non-hedge derivative liability | 5,163 | 1,793 | 701 | |||||||||||||||||||
| Other liabilities | 10,982 | 11,684 | 9,747 | |||||||||||||||||||
| Other borrowings | 153,568 | 110,927 | 75,839 | |||||||||||||||||||
| Subordinated debentures | 46,393 | 51,548 | 46,393 | |||||||||||||||||||
| Total liabilities | 2,119,902 | 2,060,924 | 1,757,900 | |||||||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||
| Common stock - $1 par value; 40,000,000 shares authorized; | ||||||||||||||||||||||
| 21,223,613, 21,138,028 and 19,900,855 shares issued, respectively | 21,224 | 21,138 | 19,901 | |||||||||||||||||||
| Additional paid-in capital | 122,293 | 121,966 | 101,518 | |||||||||||||||||||
| Retained earnings | 177,373 | 173,210 | 166,837 | |||||||||||||||||||
| Accumulated other comprehensive income (loss) | 1,503 | (1,290 | ) | (233 | ) | |||||||||||||||||
| Treasury stock, at cost, 2,472,830, 1,131,226 and 867,310 shares, respectively | (40,033 | ) | (18,926 | ) | (14,342 | ) | ||||||||||||||||
| Total shareholders' equity | 282,360 | 296,098 | 273,681 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,402,262 | $ | 2,357,022 | $ | 2,031,581 | ||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 3 | |||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| For the three months ended | For the six months | |||||||||||||||||||||
| June 30, | March 31, | June 30, | ended June 30, | |||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Interest income | ||||||||||||||||||||||
| Loans | $ | 20,031 | $ | 20,030 | $ | 15,839 | $ | 40,061 | $ | 31,409 | ||||||||||||
| Investment securities | 1,962 | 1,965 | 1,549 | 3,927 | 3,102 | |||||||||||||||||
| Other interest-earning assets | 51 | 53 | 67 | 104 | 168 | |||||||||||||||||
| Total interest income | 22,044 | 22,048 | 17,455 | 44,092 | 34,679 | |||||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Interest-bearing deposits | 1,428 | 1,307 | 862 | 2,735 | 1,697 | |||||||||||||||||
| Other borrowings | 342 | 309 | 241 | 651 | 468 | |||||||||||||||||
| Subordinated debentures | 579 | 592 | 561 | 1,171 | 1,113 | |||||||||||||||||
| Total interest expense | 2,349 | 2,208 | 1,664 | 4,557 | 3,278 | |||||||||||||||||
| Net interest income | 19,695 | 19,840 | 15,791 | 39,535 | 31,401 | |||||||||||||||||
| Provision (credit) for loan losses | 10 | 4,375 | (1,136 | ) | 4,385 | (3,023 | ) | |||||||||||||||
| Net interest income after provision for loan losses | 19,685 | 15,465 | 16,927 | 35,150 | 34,424 | |||||||||||||||||
| Noninterest income | ||||||||||||||||||||||
| Service charges and fees | 2,556 | 2,549 | 2,450 | 5,105 | 4,878 | |||||||||||||||||
| Gain on sales of mortgage loans | 722 | 401 | 621 | 1,123 | 969 | |||||||||||||||||
| Gain on sale/call of investment securities, net | 165 | 126 | 138 | 291 | 143 | |||||||||||||||||
| Other noninterest income | 428 | 339 | 200 | 767 | 259 | |||||||||||||||||
| Total noninterest income | 3,871 | 3,415 | 3,409 | 7,286 | 6,249 | |||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||
| Salaries and employee benefits | 9,587 | 9,342 | 8,289 | 18,929 | 16,203 | |||||||||||||||||
| Occupancy | 2,669 | 2,671 | 2,201 | 5,340 | 4,485 | |||||||||||||||||
| Data processing | 430 | 470 | 410 | 900 | 856 | |||||||||||||||||
| FDIC and other insurance | 432 | 368 | 316 | 800 | 628 | |||||||||||||||||
| Other real estate, net | 8 | 13 | 112 | 21 | 133 | |||||||||||||||||
| Provision for unfunded loan commitments | (263 | ) | 215 | 115 | (48 | ) | (110 | ) | ||||||||||||||
| General and administrative | 2,405 | 2,917 | 2,539 | 5,322 | 4,869 | |||||||||||||||||
| Total noninterest expense | 15,268 | 15,996 | 13,982 | 31,264 | 27,064 | |||||||||||||||||
| Income before taxes | 8,288 | 2,884 | 6,354 | 11,172 | 13,609 | |||||||||||||||||
| Taxes on income | 2,876 | 1,015 | 2,193 | 3,891 | 4,913 | |||||||||||||||||
| Net income | $ | 5,412 | $ | 1,869 | $ | 4,161 | $ | 7,281 | $ | 8,696 | ||||||||||||
| Pre-tax, pre-provision income* | $ | 8,035 | $ | 7,474 | $ | 5,333 | $ | 15,509 | $ | 10,476 | ||||||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.10 | $ | 0.22 | $ | 0.38 | $ | 0.46 | ||||||||||||
| Diluted earnings per common share | 0.28 | 0.10 | 0.22 | 0.38 | 0.46 | |||||||||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.06 | 0.16 | 0.12 | |||||||||||||||||
| *This is a Non-GAAP based financial measure. Pre-tax, pre-provision income is calculated as follows: | ||||||||||||||||||||||
| Net Income + Taxes on income + Provision (credit) for loan losses + Provision for unfunded loan commitments | ||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | |||||||||||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Loans | $ | 1,799,591 | 4.48 | % | $ | 1,788,992 | 4.50 | % | $ | 1,439,050 | 4.41 | % | ||||||||||||||
| Investment securities | 428,275 | 1.84 | 412,307 | 1.92 | 369,677 | 1.68 | ||||||||||||||||||||
| Other interest-earning assets | 48,569 | 0.42 | 51,031 | 0.42 | 103,943 | 0.26 | ||||||||||||||||||||
| Total interest-earning assets | 2,276,435 | 3.89 | 2,252,330 | 3.94 | 1,912,670 | 3.66 | ||||||||||||||||||||
| Other assets | 103,566 | 107,874 | 58,267 | |||||||||||||||||||||||
| Total assets | $ | 2,380,001 | $ | 2,360,204 | $ | 1,970,937 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 165,011 | 0.16 | % | $ | 160,638 | 0.16 | % | $ | 137,781 | 0.09 | % | ||||||||||||||
| Money market accounts | 537,734 | 0.25 | 542,800 | 0.24 | 473,993 | 0.15 | ||||||||||||||||||||
| Savings accounts | 54,808 | 0.13 | 55,834 | 0.14 | 34,702 | 0.10 | ||||||||||||||||||||
| Time deposits | 589,029 | 0.69 | 564,213 | 0.65 | 448,175 | 0.57 | ||||||||||||||||||||
| Total interest-bearing deposits | 1,346,582 | 0.43 | 1,323,485 | 0.40 | 1,094,651 | 0.32 | ||||||||||||||||||||
| Other borrowings | 141,623 | 0.97 | 117,171 | 1.06 | 60,568 | 1.60 | ||||||||||||||||||||
| Subordinated debentures | 46,393 | 4.99 | 48,546 | 4.88 | 46,393 | 4.84 | ||||||||||||||||||||
| Total interest-bearing liabilities | 1,534,598 | 0.62 | 1,489,202 | 0.60 | 1,201,612 | 0.56 | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 547,963 | 563,022 | 485,984 | |||||||||||||||||||||||
| Other liabilities | 13,598 | 14,769 | 10,005 | |||||||||||||||||||||||
| Shareholders' equity | 283,842 | 293,211 | 273,336 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,380,001 | $ | 2,360,204 | $ | 1,970,937 | ||||||||||||||||||||
| Net interest income and spread | 3.27 | % | 3.34 | % | 3.10 | % | ||||||||||||||||||||
| Net interest margin (1) | 3.48 | % | 3.54 | % | 3.31 | % | ||||||||||||||||||||
| Average interest-earning assets | ||||||||||||||||||||||||||
| to average interest-bearing liabilities | 148.34 | % | 151.24 | % | 159.18 | % | ||||||||||||||||||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | ||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 5 | ||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| For the six months ended June 30, | |||||||||||||||||
| 2016 | 2015 | ||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||
| Loans | $ | 1,794,291 | 4.49 | % | $ | 1,429,148 | 4.43 | % | |||||||||
| Investment securities | 420,291 | 1.88 | 368,782 | 1.70 | |||||||||||||
| Other interest-earning assets | 49,800 | 0.42 | 131,290 | 0.26 | |||||||||||||
| Total interest-earning assets | 2,264,382 | 3.92 | 1,929,220 | 3.62 | |||||||||||||
| Other assets | 105,720 | 53,888 | |||||||||||||||
| Total assets | $ | 2,370,102 | $ | 1,983,108 | |||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||
| Interest-bearing demand deposits | $ | 162,825 | 0.16 | % | $ | 138,335 | 0.09 | % | |||||||||
| Money market accounts | 540,267 | 0.24 | 479,287 | 0.15 | |||||||||||||
| Savings accounts | 55,321 | 0.13 | 34,030 | 0.10 | |||||||||||||
| Time deposits | 576,621 | 0.67 | 441,330 | 0.57 | |||||||||||||
| Total interest-bearing deposits | 1,335,034 | 0.41 | 1,092,982 | 0.31 | |||||||||||||
| Other borrowings | 129,397 | 1.01 | 66,405 | 1.42 | |||||||||||||
| Subordinated debentures | 47,469 | 4.93 | 46,393 | 4.80 | |||||||||||||
| Total interest-bearing liabilities | 1,511,900 | 0.61 | 1,205,780 | 0.55 | |||||||||||||
| Noninterest-bearing demand deposits | 555,493 | 494,582 | |||||||||||||||
| Other liabilities | 14,184 | 10,458 | |||||||||||||||
| Shareholders' equity | 288,525 | 272,288 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,370,102 | $ | 1,983,108 | |||||||||||||
| Net interest income and spread | 3.31 | % | 3.07 | % | |||||||||||||
| Net interest margin (1) | 3.51 | % | 3.28 | % | |||||||||||||
| Average interest-earning assets | |||||||||||||||||
| to average interest-bearing liabilities | 149.77 | % | 160.00 | % | |||||||||||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | |||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
| LOAN COMPOSITION | |||||||||||||||||||||||||||||
| Real estate mortgage: | |||||||||||||||||||||||||||||
| Commercial | $ | 862,287 | $ | 878,822 | $ | 938,462 | $ | 869,250 | $ | 759,406 | $ | 759,676 | |||||||||||||||||
| One-to-four family residential | 183,693 | 158,078 | 161,958 | 95,906 | 85,338 | 86,343 | |||||||||||||||||||||||
| Real estate construction: | |||||||||||||||||||||||||||||
| Commercial | 175,805 | 156,454 | 129,070 | 126,407 | 186,140 | 192,052 | |||||||||||||||||||||||
| One-to-four family residential | 20,347 | 24,202 | 21,337 | 12,866 | 13,107 | 12,586 | |||||||||||||||||||||||
| Commercial | 558,472 | 543,822 | 507,173 | 423,480 | 384,788 | 366,282 | |||||||||||||||||||||||
| Installment and consumer | 20,773 | 20,506 | 21,429 | 20,185 | 20,651 | 21,306 | |||||||||||||||||||||||
| Total loans, including held for sale | 1,821,377 | 1,781,884 | 1,779,429 | 1,548,094 | 1,449,430 | 1,438,245 | |||||||||||||||||||||||
| Less allowance for loan losses | (26,876 | ) | (27,168 | ) | (26,106 | ) | (26,593 | ) | (26,219 | ) | (27,250 | ) | |||||||||||||||||
| Total loans, net | $ | 1,794,501 | $ | 1,754,716 | $ | 1,753,323 | $ | 1,521,501 | $ | 1,423,211 | $ | 1,410,995 | |||||||||||||||||
| LOANS BY SEGMENT | |||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 1,085,986 | $ | 1,060,482 | $ | 1,048,473 | $ | 832,282 | $ | 810,367 | $ | 814,949 | |||||||||||||||||
| Texas banking | 577,333 | 560,421 | 580,476 | 563,010 | 493,047 | 478,005 | |||||||||||||||||||||||
| Kansas banking | 158,058 | 160,981 | 150,480 | 152,802 | 146,016 | 145,291 | |||||||||||||||||||||||
| Total loans | $ | 1,821,377 | $ | 1,781,884 | $ | 1,779,429 | $ | 1,548,094 | $ | 1,449,430 | $ | 1,438,245 | |||||||||||||||||
| NONPERFORMING LOANS BY TYPE | |||||||||||||||||||||||||||||
| Construction & development | $ | 1,436 | $ | 1,444 | $ | 1,010 | $ | 391 | $ | 416 | $ | 392 | |||||||||||||||||
| Commercial real estate | 3,894 | 3,830 | 3,992 | 1,795 | 2,141 | 2,247 | |||||||||||||||||||||||
| Commercial | 13,800 | 13,461 | 13,491 | 11,727 | 5,114 | 5,447 | |||||||||||||||||||||||
| One-to-four family residential | 3,120 | 3,448 | 1,777 | 1,016 | 1,216 | 1,065 | |||||||||||||||||||||||
| Consumer | 75 | 84 | 88 | 148 | - | - | |||||||||||||||||||||||
| Total nonperforming loans | $ | 22,325 | $ | 22,267 | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | |||||||||||||||||
| NONPERFORMING LOANS BY SEGMENT | |||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 9,268 | $ | 7,978 | $ | 6,948 | $ | 2,846 | $ | 1,670 | $ | 2,244 | |||||||||||||||||
| Texas banking | 12,586 | 13,521 | 12,450 | 11,025 | 5,353 | 5,264 | |||||||||||||||||||||||
| Kansas banking | 471 | 768 | 960 | 1,206 | 1,864 | 1,643 | |||||||||||||||||||||||
| Total nonperforming loans | $ | 22,325 | $ | 22,267 | $ | 20,358 | $ | 15,077 | $ | 8,887 | $ | 9,151 | |||||||||||||||||
| OTHER REAL ESTATE BY TYPE | |||||||||||||||||||||||||||||
| Construction & development | $ | 1,962 | $ | 2,060 | $ | 2,060 | $ | 2,025 | $ | 2,035 | $ | 2,035 | |||||||||||||||||
| Commercial real estate | 160 | 214 | 214 | 249 | 358 | 220 | |||||||||||||||||||||||
| Total other real estate | $ | 2,122 | $ | 2,274 | $ | 2,274 | $ | 2,274 | $ | 2,393 | $ | 2,255 | |||||||||||||||||
| OTHER REAL ESTATE BY SEGMENT | |||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 220 | $ | 274 | $ | 274 | $ | 200 | $ | 200 | $ | - | |||||||||||||||||
| Texas banking | 1,902 | 2,000 | 2,000 | 2,025 | 2,000 | 2,000 | |||||||||||||||||||||||
| Kansas banking | - | - | - | 49 | 193 | 255 | |||||||||||||||||||||||
| Total other real estate | $ | 2,122 | $ | 2,274 | $ | 2,274 | $ | 2,274 | $ | 2,393 | $ | 2,255 | |||||||||||||||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | |||||||||||||||||||||||||||||
| Continued | |||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 6 | ||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY LOAN DATA | Continued | ||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
| POTENTIAL PROBLEM LOANS BY TYPE | |||||||||||||||||||||||||||||
| Construction & development | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 201 | |||||||||||||||||
| Commercial real estate | 33,472 | 36,216 | 26,981 | 22,362 | 20,375 | 24,672 | |||||||||||||||||||||||
| Commercial | 29,537 | 29,931 | 9,879 | 7,366 | 14,519 | 14,016 | |||||||||||||||||||||||
| One-to-four family residential | 1,353 | 2,275 | 2,285 | 79 | 80 | 81 | |||||||||||||||||||||||
| Consumer | 2 | 38 | 10 | - | - | - | |||||||||||||||||||||||
| Total potential problem loans | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | |||||||||||||||||
| POTENTIAL PROBLEM LOANS BY SEGMENT | |||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 43,895 | $ | 46,102 | $ | 32,970 | $ | 23,597 | $ | 23,231 | $ | 26,713 | |||||||||||||||||
| Texas banking | 17,726 | 18,801 | 4,165 | 4,086 | 9,180 | 9,541 | |||||||||||||||||||||||
| Kansas banking | 2,743 | 3,557 | 2,020 | 2,124 | 2,563 | 2,716 | |||||||||||||||||||||||
| Total potential problem loans | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | |||||||||||||||||
| ALLOWANCE ACTIVITY | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 27,168 | $ | 26,106 | $ | 26,593 | $ | 26,219 | $ | 27,250 | $ | 28,452 | |||||||||||||||||
| Charge-offs | 538 | 3,725 | 569 | 226 | 325 | 230 | |||||||||||||||||||||||
| Recoveries | 236 | 412 | 648 | 577 | 430 | 915 | |||||||||||||||||||||||
| Net charge-offs (recoveries) | 302 | 3,313 | (79 | ) | (351 | ) | (105 | ) | (685 | ) | |||||||||||||||||||
| Provision (credit) for loan losses | 10 | 4,375 | (566 | ) | 23 | (1,136 | ) | (1,887 | ) | ||||||||||||||||||||
| Balance, end of period | $ | 26,876 | $ | 27,168 | $ | 26,106 | $ | 26,593 | $ | 26,219 | $ | 27,250 | |||||||||||||||||
| NET CHARGE-OFFS BY TYPE | |||||||||||||||||||||||||||||
| Construction & development | $ | - | $ | - | $ | - | $ | (16 | ) | $ | (15 | ) | $ | 5 | |||||||||||||||
| Commercial real estate | (44 | ) | (187 | ) | 219 | 24 | 82 | (118 | ) | ||||||||||||||||||||
| Commercial | 82 | 3,408 | (286 | ) | (325 | ) | (52 | ) | (188 | ) | |||||||||||||||||||
| One-to-four family residential | (12 | ) | 41 | (48 | ) | (68 | ) | (91 | ) | (331 | ) | ||||||||||||||||||
| Consumer | 276 | 51 | 36 | 34 | (29 | ) | (53 | ) | |||||||||||||||||||||
| Total net charge-offs (recoveries) by type | $ | 302 | $ | 3,313 | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | |||||||||||||
| NET CHARGE-OFFS BY SEGMENT | |||||||||||||||||||||||||||||
| Oklahoma banking**** | $ | 127 | $ | 458 | $ | 288 | $ | (86 | ) | $ | 25 | $ | (309 | ) | |||||||||||||||
| Texas banking | 211 | 952 | (415 | ) | (103 | ) | (72 | ) | (114 | ) | |||||||||||||||||||
| Kansas banking | (36 | ) | 1,903 | 48 | (162 | ) | (58 | ) | (262 | ) | |||||||||||||||||||
| Total net charge-offs (recoveries) by segment | $ | 302 | $ | 3,313 | $ | (79 | ) | $ | (351 | ) | $ | (105 | ) | $ | (685 | ) | |||||||||||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | |||||||||||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 7 | ||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | |||||||||||||||||
| (Dollars in thousands, except per share) | |||||||||||||||||
| 2016 | 2015 | ||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||
| PER SHARE DATA | |||||||||||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.10 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.24 | |||||
| Diluted earnings per common share | 0.28 | 0.10 | 0.23 | 0.22 | 0.22 | 0.24 | |||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | |||||||||||
| Book value per common share | 15.06 | 14.81 | 14.80 | 14.57 | 14.38 | 14.26 | |||||||||||
| Tangible book value per share* | 14.20 | 13.97 | 13.98 | 14.49 | 14.29 | 14.17 | |||||||||||
| COMMON STOCK | |||||||||||||||||
| Shares issued | 21,223,613 | 21,225,034 | 21,138,028 | 19,901,336 | 19,900,855 | 19,900,350 | |||||||||||
| Less treasury shares | 2,472,830 | 1,939,989 | 1,131,226 | 868,617 | 867,310 | 867,310 | |||||||||||
| Outstanding shares | 18,750,783 | 19,285,045 | 20,006,802 | 19,032,719 | 19,033,545 | 19,033,040 | |||||||||||
| OTHER FINANCIAL DATA | |||||||||||||||||
| Investment securities | $ | 422,296 | $ | 423,030 | $ | 412,128 | $ | 388,543 | $ | 373,260 | $ | 377,545 | |||||
| Loans held for sale | 7,090 | 1,803 | 7,453 | 7,024 | 6,687 | 9,106 | |||||||||||
| Portfolio loans | 1,814,287 | 1,780,081 | 1,771,975 | 1,541,070 | 1,442,743 | 1,429,139 | |||||||||||
| Total loans | 1,821,377 | 1,781,884 | 1,779,428 | 1,548,094 | 1,449,430 | 1,438,245 | |||||||||||
| Total assets | 2,402,262 | 2,360,819 | 2,357,022 | 2,059,899 | 2,031,581 | 2,003,079 | |||||||||||
| Total deposits | 1,902,865 | 1,895,248 | 1,884,105 | 1,626,250 | 1,624,446 | 1,616,454 | |||||||||||
| Other borrowings | 153,568 | 117,763 | 110,927 | 96,801 | 75,839 | 58,578 | |||||||||||
| Subordinated debentures | 46,393 | 46,393 | 51,548 | 46,393 | 46,393 | 46,393 | |||||||||||
| Total shareholders' equity | 282,360 | 285,661 | 296,098 | 277,344 | 273,681 | 271,444 | |||||||||||
| Mortgage servicing portfolio | 443,568 | 434,340 | 432,318 | 422,845 | 415,961 | 407,903 | |||||||||||
| INTANGIBLE ASSET DATA | |||||||||||||||||
| Goodwill | $ | 13,467 | $ | 13,467 | $ | 13,467 | $ | 1,214 | $ | 1,214 | $ | 1,214 | |||||
| Core deposit intangible | 2,584 | 2,734 | 2,894 | 342 | 405 | 467 | |||||||||||
| Mortgage servicing rights | 3,350 | 3,411 | 3,721 | 3,631 | 3,518 | 3,399 | |||||||||||
| Total intangible assets | $ | 19,401 | $ | 19,612 | $ | 20,082 | $ | 5,187 | $ | 5,137 | $ | 5,080 | |||||
| Intangible amortization expense | $ | 350 | $ | 341 | $ | 330 | $ | 243 | $ | 243 | $ | 168 | |||||
| DEPOSIT COMPOSITION | |||||||||||||||||
| Non-interest bearing demand | $ | 545,421 | $ | 552,499 | $ | 596,494 | $ | 526,159 | $ | 515,156 | $ | 506,952 | |||||
| Interest-bearing demand | 160,886 | 168,210 | 151,015 | 114,877 | 131,547 | 140,659 | |||||||||||
| Money market accounts | 547,415 | 540,323 | 534,357 | 502,028 | 496,178 | 488,569 | |||||||||||
| Savings accounts | 55,209 | 56,235 | 56,333 | 36,163 | 35,647 | 34,413 | |||||||||||
| Time deposits of $100,000 or more | 323,137 | 314,496 | 311,538 | 238,318 | 233,105 | 227,426 | |||||||||||
| Other time deposits | 270,797 | 263,485 | 234,368 | 208,705 | 212,813 | 218,435 | |||||||||||
| Total deposits** | $ | 1,902,865 | $ | 1,895,248 | $ | 1,884,105 | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | |||||
| OFFICES AND EMPLOYEES | |||||||||||||||||
| FTE Employees | 410 | 411 | 412 | 358 | 361 | 360 | |||||||||||
| Branches | 33 | 33 | 33 | 24 | 24 | 23 | |||||||||||
| Assets per employee | $ | 5,859 | $ | 5,744 | $ | 5,721 | $ | 5,754 | $ | 5,628 | $ | 5,564 | |||||
| ____________________ | |||||||||||||||||
| *This is a Non-GAAP based financial measure. | |||||||||||||||||
| **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) | |||||||||||||||||
| Total deposits | $ | 1,902,865 | $ | 1,895,248 | $ | 1,884,105 | $ | 1,626,250 | $ | 1,624,446 | $ | 1,616,454 | |||||
| Less: | |||||||||||||||||
| Brokered time deposits | 61,709 | 55,901 | 39,797 | 10,086 | 7,683 | 7,694 | |||||||||||
| Other brokered deposits | 175,367 | 140,372 | 135,880 | 133,025 | 103,025 | 83,025 | |||||||||||
| Non-brokered deposits | $ | 1,665,789 | $ | 1,698,975 | $ | 1,708,428 | $ | 1,483,139 | $ | 1,513,738 | $ | 1,525,735 | |||||
| Plus: | |||||||||||||||||
| Sweep repurchase agreements | 42,568 | 42,763 | 37,273 | 50,801 | 50,839 | 33,578 | |||||||||||
| Core funding | $ | 1,708,357 | $ | 1,741,738 | $ | 1,745,701 | $ | 1,533,940 | $ | 1,564,577 | $ | 1,559,313 | |||||
| Balance sheet amounts are as of period end unless otherwise noted. | |||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | ||||||||||||||||||||||||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||
| Return on average assets (annualized) | 0.91 | % | 0.32 | % | 0.78 | % | 0.81 | % | 0.85 | % | 0.92 | % | |||||||||||||||||
| Return on average common equity (annualized) | 7.67 | 2.56 | 6.14 | 5.94 | 6.11 | 6.78 | |||||||||||||||||||||||
| Return on average tangible common equity | |||||||||||||||||||||||||||||
| (annualized)* | 8.13 | 2.71 | 6.46 | 5.97 | 6.14 | 6.82 | |||||||||||||||||||||||
| Net interest margin (annualized) | 3.48 | 3.54 | 3.48 | 3.34 | 3.31 | 3.25 | |||||||||||||||||||||||
| Total dividends declared to net income | 28.35 | 84.66 | 26.22 | 27.53 | 27.45 | 25.19 | |||||||||||||||||||||||
| Effective tax rate | 34.70 | 35.19 | 35.96 | 35.84 | 34.51 | 37.49 | |||||||||||||||||||||||
| Efficiency ratio | 65.70 | 67.48 | 72.17 | 68.16 | 71.83 | 71.69 | |||||||||||||||||||||||
| NONPERFORMING ASSETS | |||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 22,259 | $ | 22,161 | $ | 19,858 | $ | 15,076 | $ | 8,887 | $ | 9,151 | |||||||||||||||||
| 90 days past due and accruing | 66 | 106 | 500 | 1 | - | - | |||||||||||||||||||||||
| Total nonperforming loans | 22,325 | 22,267 | 20,358 | 15,077 | 8,887 | 9,151 | |||||||||||||||||||||||
| Other real estate | 2,122 | 2,274 | 2,274 | 2,274 | 2,393 | 2,255 | |||||||||||||||||||||||
| Total nonperforming assets | $ | 24,447 | $ | 24,541 | $ | 22,632 | $ | 17,351 | $ | 11,280 | $ | 11,406 | |||||||||||||||||
| Potential problem loans | $ | 64,364 | $ | 68,460 | $ | 39,155 | $ | 29,807 | $ | 34,974 | $ | 38,970 | |||||||||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||||||||||
| Nonperforming assets to portfolio loans and | |||||||||||||||||||||||||||||
| other real estate | 1.35 | % | 1.38 | % | 1.28 | % | 1.12 | % | 0.78 | % | 0.80 | % | |||||||||||||||||
| Nonperforming loans to portfolio loans | 1.23 | 1.25 | 1.15 | 0.98 | 0.62 | 0.64 | |||||||||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.48 | 1.53 | 1.47 | 1.73 | 1.82 | 1.91 | |||||||||||||||||||||||
| Allowance for loan losses to | |||||||||||||||||||||||||||||
| nonperforming loans | 120.39 | 122.01 | 128.23 | 176.38 | 295.03 | 297.78 | |||||||||||||||||||||||
| Net loan charge-offs to average portfolio | |||||||||||||||||||||||||||||
| loans (annualized) | 0.07 | 0.75 | (0.02 | ) | (0.09 | ) | (0.03 | ) | (0.20 | ) | |||||||||||||||||||
| CAPITAL RATIOS | |||||||||||||||||||||||||||||
| Average total shareholders' equity to | |||||||||||||||||||||||||||||
| average assets | 11.93 | % | 12.42 | % | 12.77 | % | 13.59 | % | 13.87 | % | 13.59 | % | |||||||||||||||||
| Leverage ratio | 13.16 | 13.45 | 14.41 | 15.84 | 16.12 | 15.75 | |||||||||||||||||||||||
| Common equity tier 1 capital | 12.18 | 12.13 | 13.21 | 14.57 | 15.30 | 15.51 | |||||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 14.22 | 14.14 | 15.53 | 16.95 | 17.84 | 18.10 | |||||||||||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 15.39 | 16.79 | 18.21 | 19.09 | 19.36 | |||||||||||||||||||||||
| Tangible common equity to tangible assets*** | 11.16 | 11.49 | 11.95 | 13.40 | 13.40 | 13.48 | |||||||||||||||||||||||
| REGULATORY CAPITAL DATA | |||||||||||||||||||||||||||||
| Common equity tier 1 capital | $ | 266,366 | $ | 270,564 | $ | 282,737 | $ | 275,350 | $ | 272,048 | $ | 269,007 | |||||||||||||||||
| Tier I capital | 311,127 | 315,326 | 332,468 | 320,350 | 317,048 | 314,007 | |||||||||||||||||||||||
| Total capital | 338,547 | 343,287 | 359,300 | 344,095 | 339,412 | 335,734 | |||||||||||||||||||||||
| Total risk adjusted assets | 2,187,262 | 2,230,326 | 2,140,344 | 1,889,892 | 1,777,618 | 1,734,401 | |||||||||||||||||||||||
| Average total assets | 2,363,351 | 2,344,259 | 2,307,421 | 2,022,972 | 1,966,577 | 1,993,446 | |||||||||||||||||||||||
| ____________________ | |||||||||||||||||||||||||||||
| *This is a Non-GAAP based financial measure. | |||||||||||||||||||||||||||||
| ***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure) | |||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 282,360 | $ | 285,661 | $ | 296,098 | $ | 277,344 | $ | 273,681 | $ | 271,444 | |||||||||||||||||
| Less goodwill and core deposit intangible | 16,051 | 16,201 | 16,361 | 1,556 | 1,619 | 1,681 | |||||||||||||||||||||||
| Tangible common equity | $ | 266,309 | $ | 269,460 | $ | 279,737 | $ | 275,788 | $ | 272,062 | $ | 269,763 | |||||||||||||||||
| Total assets | $ | 2,402,262 | $ | 2,360,819 | $ | 2,357,022 | $ | 2,059,899 | $ | 2,031,581 | $ | 2,003,079 | |||||||||||||||||
| Less goodwill and core deposit intangible | 16,051 | 16,201 | 16,361 | 1,556 | 1,619 | 1,681 | |||||||||||||||||||||||
| Tangible assets | $ | 2,386,211 | $ | 2,344,618 | $ | 2,340,661 | $ | 2,058,343 | $ | 2,029,962 | $ | 2,001,398 | |||||||||||||||||
| Total shareholders' equity to total assets | 11.75 | % | 12.10 | % | 12.56 | % | 13.46 | % | 13.47 | % | 13.55 | % | |||||||||||||||||
| Tangible common equity to tangible assets | 11.16 | % | 11.49 | % | 11.95 | % | 13.40 | % | 13.40 | % | 13.48 | % | |||||||||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |||||||||||||||||||||||||||||