Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP),
("Southwest"), today reported a net loss available to common
shareholders of $4.0 million, or $0.21 per diluted share for the
second quarter of 2011, compared to net income available to common
shareholders of $3.4 million, or $0.19 per diluted share for the
second quarter of 2010, and $1.4 million, or $0.07 per diluted
share for the first quarter of 2011. The net loss available to
common shareholders for the six months ended June 30, 2011 was $2.6
million, or $0.13 per diluted share, compared to net income
available to common shareholders for the six months ended June 30,
2010 of $6.7 million, or $0.41 per diluted share.
Second Quarter 2011 Results:
Rick Green, Southwest Bancorp's President and Chief Executive
Officer, stated, "This was a challenging quarter for Southwest and
Stillwater National Bank. We recorded a net loss year-to-date and
for the second quarter of 2011, mainly as a result of new
appraisals received on collateral dependent commercial real estate
loans from states outside of our home markets of Oklahoma, Texas,
and Kansas. Those effects were partially offset by our settlement
of certain tax matters, described later in this release, as well as
our stable net interest margins and expense control.
"We continue to focus on the resolution of problem assets.
Nonperforming assets increased to $190.1 million and 8.66% of
noncovered portfolio loans and other real estate from $176.5
million and 7.74% of noncovered portfolio loans and other real
estate at March 31, 2011 and from $144.8 million and 6.11% of
noncovered portfolio loans and other real estate at December 31,
2010. Our noncovered nonperforming assets were up from year-end,
primarily due to an increase in nonperforming loans. The dollar
amount of other real estate was up from year-end as well; however,
the composition has changed as our resolution process continues. In
the first six months of 2011 we placed $104.9 million on
nonaccrual, but returned $8.4 million to accrual status,
charged-off $35.5 million, wrote down $1.7 million on other real
estate, transferred $13.3 million from nonperforming loans to other
real estate, and received $3.5 million in resolutions and payments
on nonperforming loans and $10.8 million from sales of other real
estate. At quarter-end our potential problem loans were $291.2
million, up $58.0 million, or 25%, from year-end, and $49.0
million, or 20%, from June 30, 2010. We believe that levels of
nonperforming loans and potential problem loans are likely to
fluctuate up and down as the process continues.
"Our noncovered loans decreased by $173.2 million, or 7%, from
year-end and $307.7 million, or 12%, from June 30, 2010. This
decrease allowed us to reduce our commercial real estate mortgage
and construction concentration to $1.6 billion, or 75%, of
noncovered loans at June 30, 2011. Our healthcare credits at
quarter-end totaled $670.6 million, or 31%, of noncovered loans,
including $407.3 million of healthcare related commercial real
estate mortgage and construction loans. Nonperforming
healthcare assets at quarter-end were $20.6 million, or 11%, of
total nonperforming assets. Approximately 81% of our
nonperforming assets are in the more stable markets of Oklahoma,
Texas, and Kansas.
"At June 30, 2011, the allowance for loan losses was 2.53% of
noncovered portfolio loans, compared to 2.80% at year-end 2010 and
2.71% at June 30, 2010.
"The economy has not yet recovered, but we continue to be
encouraged by the performance of the economies of our principal
markets in Oklahoma, Texas, and Kansas and continue to make loans
in each of our markets with an emphasis on healthcare lending and
carefully controlled real estate collateralized credits.
"Lending and Credit
Reorganization. Earlier this year we made significant
organizational changes designed to improve our lending and credit
functions. We continue to implement those changes. On
July 11, following a thorough executive search process, we
announced the Board of Directors' appointment of John Danielson as
Executive Vice President and Chief Banking Officer, and Priscilla
Barnes as Executive Vice President and Chief Credit Officer, each
reporting to me.
"As Chief Banking Officer, John is responsible for the lending,
deposit, and treasury services of Southwest's banking subsidiaries,
Stillwater National Bank and Bank of Kansas, and for their banking
offices in Oklahoma, Texas, and Kansas. John previously
served as President of SNB-San Antonio, a division of Stillwater
National. He has 25 years of banking industry
experience. Before joining Southwest in 2006, John served as a
regional banking manager for Compass Bank and Bank of America.
"As Chief Credit Officer, Priscilla is responsible for credit
functions, including lending policy, credit analysis, credit
approvals, risk rating accuracy, training, and workouts. She
formerly served as interim Chief Credit Officer. Priscilla has
over 31 years of banking industry experience and is a former
Federal Reserve Bank examiner. She has been with Southwest
since 2005.
"Regulatory Capital. As of June 30, 2011,
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 total regulatory capital was
$474.0 million, for a total risk-based capital ratio of 20.20%, and
Tier 1 capital was $444.1 million, for a Tier 1 risk-based capital
ratio of 18.93%. Southwest's capital exceeded the minimum to
be classified as "well-capitalized" by $239.3
million. Stillwater National Bank, Southwest's principal
banking subsidiary, had total regulatory capital of $393.8 million,
for a total risk-based capital ratio of 18.50%, and Tier 1 capital
of $351.8 million, for a Tier 1 risk-based capital ratio of
16.53%. Stillwater National Bank exceeded the minimum to be
classified as "well-capitalized" by $127.7
million. Designation as a well-capitalized institution under
regulations does not constitute a recommendation or endorsement by
Federal bank regulators. Stillwater National Bank's leverage
and total risk-based capital ratios also substantially exceeded the
individual minimum ratios agreed to with the Comptroller of the
Currency of 8.50% and 12.50%.
"Increased Core Funding Percentage. At
June 30, 2011, total core funding, which includes all non-brokered
time deposits and sweep repurchase agreements, comprised 90% of
total funding, compared to 87% at March 31, 2011 and 86% at
December 31, 2010. Wholesale funding, including FHLB
borrowings, federal funds purchased, and brokered deposits,
accounted for 10% of total funding compared to 13% at March 31,
2011 and 14% at December 31, 2010. Please see Table 6 for
details on these non-GAAP financial measures.
"Future Interest and Dividend
Deferrals. In July, we determined to defer future
payments of interest on our debentures and dividends on related
trust preferred securities and to defer payments of dividends on
our Series A Preferred Securities issued under the U.S. Treasury
Department's Capital Purchase Program. The terms of our
debentures and trust preferred securities allow us to increase or
decrease the deferral period without default or
penalty. However, we plan to resume payments of dividends and
debenture interest as soon as we achieve sufficient improvement in
earnings and asset quality levels. We have taken important
steps to help us achieve those goals. For further information,
please see "Subsequent Event-Deferral of Interest and Dividend
Payments" later in this release.
Please review the following discussion and the attached
financial tables for important additional information regarding our
financial condition and performance."
Financial Overview
Condition: Total assets were $2.7 billion and
total loans were $2.2 billion at June 30, 2011, a decrease of 6%
and 7%, respectively, from December 31, 2010.
At June 30, 2011 the allowance for loan losses was $54.6
million, a decrease of 19% and 16% from June 30, 2010 and December
31, 2010, respectively, and represented 2.53% of noncovered
portfolio loans versus 2.71% and 2.80% at June 30, 2010 and
December 31, 2010, respectively. 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. Provisions
for loan losses are recorded in the amount necessary to maintain
the allowance at the level management deems appropriate.
Excluding assets subject to loss sharing agreements with the
FDIC ("covered assets"), nonperforming assets, consisting of
nonaccrual loans, loans past due by 90 days or more and still
accruing, and other real estate, were $190.1 million and 8.66% of
noncovered portfolio loans and other real estate as of June 30,
2011, up $45.3 million from December 31, 2010. A breakdown of
noncovered portfolio loans and noncovered nonperforming assets at
June 30, 2011 by type is shown in the following table:
|
Noncovered |
Noncovered |
Percentage of |
|
portfolio |
nonperforming |
total noncovered |
(dollars in thousands) |
loans |
assets |
nonperforming assets |
Real estate construction |
$ 384,924 |
$ 73,486 |
38.65% |
Commercial real estate |
1,249,560 |
60,858 |
32.01 |
Commercial |
404,081 |
15,224 |
8.00 |
Residential real estate mortgages |
83,196 |
1,457 |
0.77 |
Other consumer loans |
34,335 |
153 |
0.08 |
Other real estate |
-- |
38,956 |
20.49 |
Total |
$ 2,156,096 |
$ 190,134 |
100.00% |
Excluding covered loans, nonaccrual loans were $151.1 million as
of June 30, 2011, an increase of $44.6 million, or 42%, from
December 31, 2010, and an increase of $39.3 million, or 35%, from
June 30, 2010. These loans are carried at their estimated
collectible amounts and no longer accrue interest. Noncovered
loans 90 days or more past due were less than $0.1 million as of
June 30, 2011. These loans are deemed to have sufficient
collateral and are in the process of collection.
Impaired loans, which include nonaccrual and restructured loans,
are evaluated on an individual basis using the discounted present
value of expected cash flows, the fair value of collateral, or the
market value of the loan, and a specific allowance is recorded to
reflect the appropriate net realizable value. Collateral
dependent loans are evaluated for impairment based upon the fair
value of the collateral. Charge-offs against the allowance for
impaired loans are made when and to the extent amounts are deemed
uncollectible. Independent appraisals on real estate
collateral securing loans are obtained at origination. New
appraisals are obtained periodically and following discovery of
factors that may significantly affect the value of the
collateral. Appraisals typically are received within 30 days
of request. Results of appraisals on nonperforming and
potential problem loans are reviewed promptly upon receipt and
considered in the determination of the allowance for loan
losses. Southwest is not aware of any significant time lapses
in the process that have resulted, or would result in, a
significant delay in determination of a credit weakness, the
identification of a loan as nonperforming, or the measure of an
impairment.
Performing loans that have been restructured to provide a
reduction or deferral of interest or principal due to a weakening
in the financial position of the borrower were $3.2 million and
$2.2 million at June 30, 2011 and December 31, 2010,
respectively.
Excluding covered loans, 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 $291.2 million at June 30,
2011, an increase of $58.0 million from December 31, 2010 and $49.0
million from June 30, 2010. Potential problem loans are
subject to continuing management attention and are considered by
management in determining the level of the allowance for loan
losses.
Year-to-date Results:
Summary: The net loss available to common
shareholders was $2.6 million as of June 30, 2011, compared to net
income available to common shareholders of $6.7 million as of June
30, 2010. The $9.3 million decrease in our net income
available to common shareholders from 2010 is the result of a $12.9
million increase in the provision for loan losses, a $3.5 million
decrease in net interest income, and a $1.3 million decrease in
noninterest income, offset in part by a $7.6 million decrease in
income tax expense and a $0.8 million decrease in noninterest
expense.
On June 28, 2011, Southwest entered into a settlement agreement
with the Oklahoma State Tax Commission (the "Commission") with
respect to certain claims by the Commission. Southwest had
previously recorded reserves against these claims. As a result
of the settlement agreement, Southwest paid the sum of $4.8 million
to the Commission and recorded a gain of $2.6 million, net of tax
effect, upon reversal of excess reserves. The year-to-date
calculated effective tax rate is 79.93%; however, when the effect
of the reversal of the excess tax reserves in the second quarter is
excluded, the effective tax rate year-to-date is 43.60%.
Net Interest Income: Net
interest income totaled $50.4 million for the first six months of
2011, compared to $53.9 million for the first six months of 2010, a
decrease of $3.5 million, or 6%. Year-to-date net interest
margin was 3.78%, compared to 3.62% in 2010. Included in 2011
year-to-date net interest income was a net reduction of $0.1
million resulting from interest reversals on nonaccrual loans
offset by the year-to-date adjustments of the discount accretion on
loans and the loss share receivable. Included in 2010
year-to-date net interest income was $0.8 million of net recoveries
from the resolution of nonperforming loans, additional discount
accretion on loans and loss share receivable, offset in part by
interest reversals on nonaccrual loans. The net effects of
these adjustments on net interest margin were a 1 basis point
decrease and a 5 basis point increase, respectively.
Provision for Loan Losses and Net Charge
Offs: The provision for loan losses totaled $29.2
million for the first six months of 2011, compared to $16.3 million
for the first six months of 2010. Net charge-offs totaled
$39.8 million, or 3.49% (annualized) of average portfolio loans
year-to-date as of June 30, 2011, compared to $11.7 million, or
0.91% (annualized) of average portfolio loans for the same period
in the prior year.
A significant reason for the increase in the year-to-date
provision was an unanticipated decline in collateral value of
collateral dependent commercial real estate loans in markets other
than our primary markets of Oklahoma, Texas, and Kansas. As of
June 30, 2011, eleven relationships accounted for $32.5 million in
charge-offs, of which $20.6 million were on four out of market
relationships. At June 30, 2011, total out of market
commercial real estate and construction loans was $158.4 million,
of which $75.9 million were internally rated substandard or
doubtful.
Noninterest Income: Noninterest income
totaled $6.9 million for the first six months of 2011, compared to
$8.1 million for the first six months of 2010. The decrease in
noninterest income was primarily the result of a $0.8 million
decline in gain on sale of loans, mainly from declined student loan
sales, and a $0.3 million decline in other noninterest income.
Noninterest Expense: Noninterest expense
totaled $30.6 million for the first six months of 2011, compared to
$31.4 million for the first six months of 2010. The decrease
consists of a $2.4 million decrease in other general and
administrative expense, primarily from the settlement of Oklahoma
state tax claims for less than the amount accrued, a $0.9 million
decrease in FDIC and other insurance expense, and a $0.7 million
decrease in personnel expense, primarily as a result of a decrease
in the profit sharing contribution, offset in part by a $2.3
million increase in other real estate expense and a $1.1 million
increase in provision for unfunded loan commitments.
Second Quarter Results:
Summary: For the second quarter of 2011,
Southwest incurred a net loss available to common shareholders of
$4.0 million, compared to net income available to common
shareholders of $3.4 million in the second quarter of 2010 and $1.4
million in the first quarter of 2011. The decrease from the
second quarter of 2010 was the result of a $12.4 million increase
in the provision for loan losses, a $2.1 million decrease in net
interest income, and a $0.4 million decrease in noninterest income,
offset in part by a $6.3 million decrease in income taxes and a
$1.2 million decrease in noninterest expense. The decrease
from the first quarter of 2011 was the result of an $11.1 million
increase in the provision for loan losses and a $0.4 million
decrease in net interest income, offset in part by a $5.1 million
decrease in income taxes, a $0.6 million decrease in noninterest
expense, and a $0.4 million increase in noninterest
income.
For the second quarter of 2011, the calculated effective tax
rate is 54.53%; however, when the reversal of the excess tax
reserves is excluded, the effective tax rate for the second quarter
is 41.46%.
Net Interest Income: Net
interest income totaled $25.0 million for the second quarter of
2011, compared to $27.1 million for the second quarter of 2010, a
decrease of $2.1 million, or 8%, and $25.4 million for the first
quarter of 2011, a decrease of $0.4 million, or 2%. Net
interest margin was 3.79% for the second quarter of 2011, compared
to 3.65% for the second quarter of 2010 and 3.78% for the first
quarter of 2011. Included in the second quarter of 2011 net
interest margin was a net reduction of $0.2 million resulting from
interest reversal on nonaccrual loans offset by the quarterly
adjustment of the discount accretion on loans and the loss share
receivable. Included in the second quarter 2010 net interest
margin was a net recovery of $0.5 million from the quarterly
adjustment of the discount accretion on loans and loss share
receivable. Included in the first quarter of 2011 net interest
margin was a net recovery of $0.1 million from the quarterly
adjustment of the discount accretion on loans and the loss share
receivable offset by interest reversals on nonaccrual loans. The
net effects of these adjustments on net interest margin were a 3
basis point decrease, a 6 basis point increase, and a 1 basis point
increase for each quarter,
respectively.
Provision for Loan Losses and Net
Charge-Offs: The provision for loan losses totaled
$20.1 million for the second quarter of 2011, compared to $7.8
million for the second quarter of 2010 and $9.1 million for the
first quarter of 2011. Net charge-offs totaled $26.9 million,
or 4.76% (annualized) of average portfolio loans for the second
quarter of 2011, compared to $5.9 million, or 0.92% (annualized) of
average portfolio loans for the second quarter of 2010 and $13.0
million, or 2.25% (annualized) of average portfolio loans for the
first quarter of 2011.
A significant reason for the increased provision for the second
quarter was an unanticipated decline in collateral value of
collateral dependent commercial real estate loans in markets other
than our primary markets of Oklahoma, Texas, and Kansas. For
the second quarter of 2011, eight relationships accounted for $23.0
million in charge-offs, of which $13.6 million were on three out of
market relationships.
Noninterest Income: Noninterest income
totaled $3.6 million for the second quarter of 2011, compared to
$4.0 million for the second quarter of 2010 and $3.2 million for
the first quarter of 2011. The decrease in noninterest income
from the second quarter of 2010 was primarily the result of a $0.4
million decrease in other noninterest income. The increase
from the first quarter of 2011 was primarily the result of a $0.4
million increase in service charges and fees.
Noninterest Expense: Noninterest expense
totaled $15.0 million for the second quarter of 2011, compared to
$16.1 million for the second quarter of 2010 and $15.6 million for
the first quarter of 2011. The decrease from second quarter
2010 consisted of a $2.4 million decrease in other general and
administrative expense, primarily from the settlement of Oklahoma
state tax claims for less than the amount accrued, a $0.7 million
decrease in personnel expense, primarily as a result of a decrease
in the profit sharing contribution, and a $0.6 million decrease in
FDIC and other insurance expense, offset in part by a $2.0 million
increase in other real estate expense and a $0.6 million increase
in provision for unfunded loan commitments. The decrease from
first quarter 2011 consisted of a $2.0 million decrease in other
general and administrative expense, a $0.5 million decrease in
personnel expense, and a $0.3 million decrease in FDIC and other
insurance expense, offset in part by a $2.2 million increase in
other real estate expense.
Southwest Bancorp and
Subsidiaries
Southwest is the bank holding company for Stillwater National
Bank and Trust Company ("Stillwater National") and Bank of Kansas.
Through its subsidiaries, Southwest offers commercial and consumer
lending, deposit and investment services, specialized cash
management, 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. At June 30, 2011 we had total assets of $2.7 billion,
deposits of $2.1 billion, and shareholders' equity of $376.9
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 June 30, 2011, approximately $670.6 million,
or 31%, of our noncovered loans were loans to individuals and
businesses in the healthcare industry.
We also focus on commercial real estate mortgage and
construction credits. We do not focus on one-to-four family
residential development loans or "spec" residential property
credits. Additionally, subprime residential lending has never
been a part of our business strategy, and our exposure to subprime
mortgage loans and subprime lenders is minimal. One-to-four
family mortgages account for less than 5% of total noncovered
loans. As of June 30, 2011 approximately $1.6 billion, or 75%,
of our noncovered loans were commercial real estate mortgage and
construction loans, including $407.3 million of loans to
individuals and businesses in the healthcare industry.
We operate six offices in Texas, eleven offices in Oklahoma, and
eight offices in Kansas. At June 30, 2011 our Texas segment
accounted for $911.1 million, or 41% of total portfolio loans,
followed by $834.2 million, or 38%, from our Oklahoma segment,
$260.4 million, or 12%, from our Kansas segment, and $196.5
million, or 9%, 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.
The Southwest Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8074
Subsequent Event-Deferral of
Interest and Dividend Payments
In July 2011, Southwest Bancorp, Inc. ("Southwest") determined
to suspend payments of interest on its three issues of outstanding
debentures effective August 1, 2011, and dividends on the related
trust preferred securities.
The terms of the debentures allow Southwest to defer payments of
interest for up to 20 consecutive quarterly periods without default
or penalty. These terms also allow Southwest to resume
payments at the end of any deferral period, or to extend the
deferral up to the maximum 20 quarters in total. No deferral
can extend past the maturity date of the debenture.
We plan to resume payments of dividends and debenture interest
as soon as we achieve sufficient improvement in earnings and asset
quality levels. We are taking important steps to help us
achieve those goals. These included:
- Capital Levels. Capital levels for Southwest and each of
its bank subsidiaries well exceed all applicable capital
standards. We increased and maintained our capital ratios by
(a) sale of capital securities, including public securities
offerings in mid-2008 and 2010, and the sale of preferred
securities to the Treasury Department in late 2008, (b) net
quarterly earnings, and (c) intentional reduction of our loan
portfolio.
- Earnings. We had a net loss this quarter and year-to-date,
but this follows a long-record of successive quarterly
earnings. Our interest margins and net interest income are
solid, and we remain one of the most efficient banking
organizations in terms of operating expense control.
- Asset Quality. Our problem assets and potential problem
assets are too high. The keys to improvement in our net income
are improvement in asset quality and reduction in loan loss
provision expense. To that end this year we have (a)
substantially reorganized our lending and credit functions to
increase their independence and improve oversight; (b) installed a
new Chief Credit Officer in the second quarter reporting directly
to the CEO with authority over the entire credit and work-out
functions; (c) began staffing up credit and work-out areas with
experienced bankers; (d) increased our emphasis on timely and
accurate loan grading and consistency among our third party loan
review firm, our internal credit function, and federal regulators'
grading guidelines; and (e) begun a special review of larger
problem credits.
Interest will continue to accrue on the debentures, and
dividends will continue to accrue on the related trust preferred
securities while we work toward resuming payments.
Southwest's trust preferred securities were issued by the
following subsidiary trusts: Southwest Capital Trust II, which
trades on the NASDAQ Global Select Market under the symbol "OKSBP";
OKSB Statutory Trust I; and SBI Capital Trust II. At June 30,
2011, $82.0 million of debentures were outstanding.
In addition, Southwest has determined to defer payment of
dividends on its Series A Preferred Securities issued under the
U.S. Treasury Department's Capital Purchase Program, effective for
the next dividend payment, due August 15, 2011. Dividends on
the Preferred Securities may not be paid while interest on
Southwest's debentures has been deferred, but will continue to
accrue. At June 30, 2011, $70.0 million of Preferred
Securities were outstanding.
The deferrals on interest and dividends are intended to preserve
liquidity at the holding company level, which may be used to inject
funds in its bank subsidiaries or for other corporate
purposes. Because the interest on the debentures, the
dividends on the related trust preferred securities, and the
dividends on the Preferred Securities will continue to accrue,
these deferrals are not expected to have any significant effect on
the net income or net income available to common shareholders of
Southwest. During the year ended December 31, 2010, total
interest expense on the debentures, which is deductible for income
tax purposes, totaled $5.1 million, and dividends on the Preferred
Securities, which are not deductible for income tax purposes,
totaled $3.5 million.
Forward-Looking
Statements
This earnings 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 timing
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 our 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 June 30, 2011 through the date
its financial statements are filed with the Securities and Exchange
Commission. The June 30, 2011 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.
|
|
Financial
Tables |
Unaudited Financial Highlights |
Table 1 |
Unaudited Consolidated Statements of
Financial Condition |
Table 2 |
Unaudited Consolidated Statements of
Operations |
Table 3 |
Unaudited Average Balances, Yields, and
Rates-Quarterly |
Table 4 |
Unaudited Average Balances, Yields, and
Rates-Year-to-Date |
Table 5 |
Unaudited Quarterly Summary Financial
Data |
Table 6 |
Unaudited Quarterly Supplemental Analytical
Data |
Table 7 |
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
|
Table 1 |
UNAUDITED FINANCIAL
HIGHLIGHTS |
|
|
|
|
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
Second
Quarter |
First
Quarter |
QUARTERLY
HIGHLIGHTS |
|
|
% |
|
% |
|
2011 |
2010 |
Change |
2011 |
Change |
Operations |
|
|
|
|
|
Net interest income |
$ 24,985 |
$ 27,108 |
(8)% |
$ 25,421 |
(2)% |
Provision for loan
losses |
20,140 |
7,776 |
159 |
9,050 |
123 |
Noninterest income |
3,604 |
3,962 |
(9) |
3,249 |
11 |
Noninterest expense |
14,980 |
16,146 |
(7) |
15,625 |
(4) |
Income (loss) before
taxes |
(6,531) |
7,148 |
(191) |
3,995 |
(263) |
Taxes on income |
(3,561) |
2,737 |
(230) |
1,534 |
(332) |
Net income (loss) |
(2,970) |
4,411 |
(167) |
2,461 |
(221) |
Net income (loss) available to
common shareholders |
(4,027) |
3,366 |
(220) |
1,408 |
(386) |
Diluted earnings per
share |
(0.21) |
0.19 |
(211) |
0.07 |
(400) |
Balance
Sheet |
|
|
|
|
|
Total assets |
2,660,495 |
3,010,835 |
(12) |
2,779,028 |
(4) |
Loans held for sale |
37,204 |
25,615 |
45 |
37,348 |
(0) |
Noncovered portfolio
loans |
2,156,096 |
2,475,348 |
(13) |
2,241,080 |
(4) |
Covered portfolio loans |
46,153 |
68,006 |
(32) |
49,117 |
(6) |
Total deposits |
2,094,236 |
2,444,939 |
(14) |
2,218,571 |
(6) |
Total shareholders'
equity |
376,930 |
375,319 |
-- |
379,350 |
(1) |
Book value per common
share |
15.89 |
15.88 |
-- |
16.02 |
(1) |
Key Ratios |
|
|
|
|
|
Net interest margin |
3.79% |
3.65% |
|
3.78% |
|
Efficiency ratio |
52.40 |
51.97 |
|
54.50 |
|
Total capital to risk-weighted
assets |
20.20 |
17.78 |
|
19.77 |
|
Nonperforming loans to portfolio
loans - noncovered |
7.01 |
4.53 |
|
6.04 |
|
Shareholders' equity to total
assets |
14.17 |
12.47 |
|
13.65 |
|
Tangible common equity to tangible
assets* |
11.38 |
10.02 |
|
10.99 |
|
Return on average assets
(annualized) |
(0.43) |
0.58 |
|
0.35 |
|
Return on average common equity
(annualized) |
(5.11) |
4.64 |
|
1.81 |
|
Return on average tangible common
equity (annualized)** |
(5.22) |
4.75 |
|
1.85 |
|
|
YEAR-TO-DATE HIGHLIGHTS |
Six
Months |
|
|
|
|
|
% |
|
|
|
2011 |
2010 |
Change |
|
|
Operations |
|
|
|
|
|
Net interest income |
$ 50,406 |
$ 53,909 |
(6)% |
|
|
Provision for loan
losses |
29,190 |
16,307 |
79 |
|
|
Noninterest income |
6,853 |
8,140 |
(16) |
|
|
Noninterest expense |
30,605 |
31,404 |
(3) |
|
|
Income (loss) before
taxes |
(2,536) |
14,338 |
(118) |
|
|
Taxes on income |
(2,027) |
5,555 |
(136) |
|
|
Net income (loss) |
(509) |
8,783 |
(106) |
|
|
Net income (loss) available to
common |
|
|
|
|
|
shareholders |
(2,619) |
6,695 |
(139) |
|
|
Diluted earnings per
share |
(0.13) |
0.41 |
(132) |
|
|
Balance
Sheet |
|
|
|
|
|
Total assets |
2,660,495 |
3,010,835 |
(12) |
|
|
Loans held for sale |
37,204 |
25,615 |
45 |
|
|
Noncovered portfolio
loans |
2,156,096 |
2,475,348 |
(13) |
|
|
Covered portfolio loans |
46,153 |
68,006 |
(32) |
|
|
Total deposits |
2,094,236 |
2,444,939 |
(14) |
|
|
Total shareholders'
equity |
376,930 |
375,319 |
-- |
|
|
Book value per common
share |
15.89 |
15.88 |
-- |
|
|
Key Ratios |
|
|
|
|
|
Net interest margin |
3.78 % |
3.62 % |
|
|
|
Efficiency ratio
(GAAP-based) |
53.45 |
50.61 |
|
|
|
Total capital to risk-weighted
assets |
20.20 |
17.78 |
|
|
|
Nonperforming loans to portfolio
loans - noncovered |
7.01 |
4.53 |
|
|
|
Shareholders' equity to total
assets |
14.17 |
12.47 |
|
|
|
Tangible common equity to tangible
assets* |
11.38 |
10.02 |
|
|
|
Return on average assets |
(0.04) |
0.58 |
|
|
|
Return on average common
equity |
(1.67) |
5.00 |
|
|
|
Return on average tangible common
equity** |
(1.71) |
5.13 |
|
|
|
|
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,
except per share) |
|
|
|
|
|
|
June 30, |
December 31, |
June 30, |
|
2011 |
2010 |
2010 |
Assets |
|
|
|
Cash and due from banks |
$ 26,368 |
$ 26,478 |
$ 23,442 |
Interest-bearing deposits |
41,733 |
41,018 |
101,848 |
Cash and cash
equivalents |
68,101 |
67,496 |
125,290 |
Securities held to maturity (fair
values of $15,461, $14,029, $6,731, respectively) |
15,419 |
14,304 |
6,670 |
Securities available for sale
(amortized cost of $248,004, $246,649, $232,097,
respectively) |
252,734 |
248,221 |
240,438 |
Loans held for sale |
37,204 |
35,194 |
25,615 |
Noncovered loans receivable |
2,156,096 |
2,331,293 |
2,475,348 |
Less: Allowance for loan
losses |
(54,575) |
(65,229) |
(67,055) |
Net noncovered loans
receivable |
2,101,521 |
2,266,064 |
2,408,293 |
Covered loans receivable (includes loss
share: $12,101, $14,370, and $18,663, respectively) |
46,153 |
53,628 |
68,006 |
Net loans receivable |
2,147,674 |
2,319,692 |
2,476,299 |
Accrued interest receivable |
7,973 |
8,590 |
9,589 |
Income tax receivable |
11,393 |
-- |
-- |
Premises and equipment, net |
23,158 |
23,772 |
25,560 |
Noncovered other real estate |
38,956 |
37,722 |
27,634 |
Covered other real estate |
3,806 |
4,187 |
4,352 |
Goodwill |
6,811 |
6,811 |
6,811 |
Other intangible assets, net |
5,069 |
5,371 |
5,424 |
Other assets |
42,197 |
49,181 |
57,153 |
Total assets |
$ 2,660,495 |
$ 2,820,541 |
$ 3,010,835 |
|
|
|
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing
demand |
$ 389,027 |
$ 377,182 |
$ 326,721 |
Interest-bearing demand |
124,346 |
92,584 |
102,218 |
Money market accounts |
465,269 |
495,253 |
510,549 |
Savings accounts |
29,586 |
26,665 |
25,321 |
Time deposits of $100,000 or
more |
570,116 |
694,565 |
861,110 |
Other time deposits |
515,892 |
566,479 |
619,020 |
Total deposits |
2,094,236 |
2,252,728 |
2,444,939 |
Accrued interest payable |
1,574 |
1,577 |
2,567 |
Income tax payable |
-- |
2,878 |
4,053 |
Other liabilities |
9,110 |
8,981 |
8,958 |
Other borrowings |
96,682 |
94,602 |
93,036 |
Subordinated debentures |
81,963 |
81,963 |
81,963 |
Total liabilities |
2,283,565 |
2,442,729 |
2,635,516 |
|
|
|
|
Shareholders'
equity |
|
|
|
Serial preferred stock; 2,000,000
shares authorized; 70,000 shares issued and outstanding |
68,084 |
67,724 |
67,375 |
Common stock -- $1 par value;
40,000,000 shares authorized; 19,439,167, 19,421,900, 19,388,797
shares issued and outstanding, respectively |
19,439 |
19,422 |
19,389 |
Additional paid-in capital |
99,005 |
98,894 |
98,712 |
Retained earnings |
188,174 |
190,793 |
184,710 |
Accumulated other comprehensive
income |
2,228 |
979 |
5,133 |
Total shareholders'
equity |
376,930 |
377,812 |
375,319 |
Total liabilities and shareholders'
equity |
$ 2,660,495 |
$ 2,820,541 |
$ 3,010,835 |
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
Table 3 |
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Dollars in thousands,
except per share) |
|
|
|
|
|
|
|
For the three
months |
For the six
months |
|
ended June
30, |
ended June
30, |
|
2011 |
2010 |
2011 |
2010 |
Interest
income |
|
|
|
|
Loans |
$ 29,478 |
$ 33,891 |
$ 60,017 |
$ 68,263 |
Investment securities |
1,864 |
2,175 |
3,610 |
4,345 |
Other interest-earning
assets |
130 |
213 |
270 |
430 |
Total interest income |
31,472 |
36,279 |
63,897 |
73,038 |
|
|
|
|
|
Interest
expense |
|
|
|
|
Interest-bearing
deposits |
4,531 |
7,371 |
9,664 |
15,545 |
Other borrowings |
494 |
524 |
991 |
1,041 |
Subordinated debentures |
1,462 |
1,276 |
2,836 |
2,543 |
Total interest expense |
6,487 |
9,171 |
13,491 |
19,129 |
|
|
|
|
|
Net interest income |
24,985 |
27,108 |
50,406 |
53,909 |
|
|
|
|
|
Provision for loan losses |
20,140 |
7,776 |
29,190 |
16,307 |
|
|
|
|
|
Net interest income after provision for
loan losses |
4,845 |
19,332 |
21,216 |
37,602 |
|
|
|
|
|
Noninterest
income |
|
|
|
|
Service charges and fees |
3,231 |
3,170 |
6,109 |
6,266 |
Gain on sales of loans |
401 |
416 |
595 |
1,401 |
Gain on investment
securities |
-- |
34 |
-- |
41 |
Other noninterest income
(loss) |
(28) |
342 |
149 |
432 |
Total noninterest income |
3,604 |
3,962 |
6,853 |
8,140 |
|
|
|
|
|
Noninterest
expense |
|
|
|
|
Salaries and employee
benefits |
6,974 |
7,637 |
14,489 |
15,217 |
Occupancy |
2,703 |
2,836 |
5,507 |
5,619 |
FDIC and other insurance |
937 |
1,521 |
2,180 |
3,108 |
Other real estate, net |
2,602 |
629 |
3,038 |
735 |
General and
administrative |
1,764 |
3,523 |
5,391 |
6,725 |
Total noninterest
expense |
14,980 |
16,146 |
30,605 |
31,404 |
Income (loss) before taxes |
(6,531) |
7,148 |
(2,536) |
14,338 |
Taxes on income |
(3,561) |
2,737 |
(2,027) |
5,555 |
Net income (loss) |
$ (2,970) |
$ 4,411 |
$ (509) |
$ 8,783 |
Net income (loss) available to common
shareholders |
$ (4,027) |
$ 3,366 |
$ (2,619) |
$ 6,695 |
|
|
|
|
|
Basic earnings per common
share |
$ (0.21) |
$ 0.19 |
$ (0.13) |
$ 0.41 |
Diluted earnings per common
share |
(0.21) |
0.19 |
(0.13) |
0.41 |
Common dividends declared per
share |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
Table 4 |
UNAUDITED AVERAGE
BALANCES, YIELDS, AND RATES - QUARTERLY |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30, |
|
2011 |
2010 |
|
Average |
|
Average |
Average |
|
Average |
|
Balance |
Interest |
Yield/Rate |
Balance |
Interest |
Yield/Rate |
Assets |
|
|
|
|
|
|
Noncovered loans |
$ 2,250,678 |
$ 28,551 |
5.14% |
$ 2,534,565 |
$ 32,610 |
5.22% |
Covered loans |
47,427 |
927 |
7.93 |
72,121 |
1,281 |
7.20 |
Investment securities |
266,344 |
1,864 |
2.81 |
239,712 |
2,175 |
3.64 |
Other interest-earning assets |
82,898 |
130 |
0.63 |
129,188 |
213 |
0.66 |
Total interest-earning assets |
2,647,347 |
31,472 |
4.77 |
2,975,586 |
36,279 |
4.89 |
Other assets |
99,803 |
|
|
67,454 |
|
|
Total assets |
$ 2,747,150 |
|
|
$ 3,043,040 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
Interest-bearing demand deposits |
$ 112,942 |
$ 103 |
0.37% |
$ 107,693 |
$ 140 |
0.52% |
Money market accounts |
490,559 |
582 |
0.48 |
505,863 |
1,037 |
0.82 |
Savings accounts |
29,154 |
10 |
0.14 |
25,615 |
16 |
0.25 |
Time deposits |
1,165,606 |
3,836 |
1.32 |
1,527,074 |
6,178 |
1.62 |
Total interest-bearing deposits |
1,798,261 |
4,531 |
1.01 |
2,166,245 |
7,371 |
1.36 |
Other borrowings |
87,991 |
494 |
2.25 |
97,909 |
524 |
2.15 |
Subordinated debentures |
81,963 |
1,462 |
7.13 |
81,963 |
1,276 |
6.23 |
Total interest-bearing liabilities |
1,968,215 |
6,487 |
1.32 |
2,346,117 |
9,171 |
1.57 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
369,700 |
|
|
321,651 |
|
|
Other liabilities |
25,066 |
|
|
16,921 |
|
|
Shareholders' equity |
384,169 |
|
|
358,351 |
|
|
Total liabilities and shareholders'
equity |
$ 2,747,150 |
|
|
$ 3,043,040 |
|
|
|
|
|
|
|
|
|
Net interest income and spread |
|
$ 24,985 |
3.45% |
|
$ 27,108 |
3.32% |
Net interest margin (1) |
|
|
3.79% |
|
|
3.65% |
Average interest-earning assets to
average interest-bearing liabilities |
134.50% |
|
|
126.83% |
|
|
|
|
|
|
|
|
|
(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, |
|
2011 |
2010 |
|
Average |
|
Average |
Average |
|
Average |
|
Balance |
Interest |
Yield/Rate |
Balance |
Interest |
Yield/Rate |
Assets |
|
|
|
|
|
|
Noncovered loans |
$ 2,288,570 |
$ 58,206 |
5.16% |
$ 2,560,937 |
$ 65,591 |
5.19% |
Covered loans |
49,449 |
1,811 |
7.43 |
77,055 |
2,672 |
7.03 |
Investment securities |
261,391 |
3,610 |
2.79 |
240,489 |
4,345 |
3.64 |
Other interest-earning assets |
87,770 |
270 |
0.62 |
122,319 |
430 |
0.71 |
Total interest-earning assets |
2,687,180 |
63,897 |
4.80 |
3,000,800 |
73,038 |
4.91 |
Other assets |
95,825 |
|
|
73,314 |
|
|
Total assets |
$ 2,783,005 |
|
|
$ 3,074,114 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
Interest-bearing demand deposits |
$ 112,693 |
$ 227 |
0.41% |
$ 107,602 |
$ 272 |
0.51% |
Money market accounts |
490,931 |
1,259 |
0.52 |
505,178 |
2,050 |
0.82 |
Savings accounts |
28,451 |
26 |
0.18 |
25,622 |
32 |
0.25 |
Time deposits |
1,206,650 |
8,152 |
1.36 |
1,588,142 |
13,191 |
1.67 |
Total interest-bearing deposits |
1,838,725 |
9,664 |
1.06 |
2,226,544 |
15,545 |
1.41 |
Other borrowings |
89,088 |
991 |
2.24 |
97,604 |
1,041 |
2.15 |
Subordinated debentures |
81,963 |
2,836 |
6.92 |
81,963 |
2,543 |
6.21 |
Total interest-bearing liabilities |
2,009,776 |
13,491 |
1.35 |
2,406,111 |
19,129 |
1.60 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
367,444 |
|
|
312,717 |
|
|
Other liabilities |
22,445 |
|
|
17,971 |
|
|
Shareholders' equity |
383,340 |
|
|
337,315 |
|
|
Total liabilities and shareholders'
equity |
$ 2,783,005 |
|
|
$ 3,074,114 |
|
|
|
|
|
|
|
|
|
Net interest income and spread |
|
$ 50,406 |
3.45% |
|
$ 53,909 |
3.31% |
Net interest margin (1) |
|
|
3.78% |
|
|
3.62% |
Average interest-earning assets to
average interest-bearing liabilities |
133.71% |
|
|
124.72% |
|
|
|
|
|
|
|
|
|
(1) Net interest margin =
annualized net interest income / average interest-earning
assets |
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
Table 6 |
UNAUDITED QUARTERLY
SUMMARY FINANCIAL DATA |
|
(Dollars in thousands,
except per share) |
|
|
|
|
2011 |
2010 |
|
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
OPERATIONS |
|
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
Loans |
$ 29,478 |
$ 30,539 |
$ 32,831 |
$ 32,824 |
$ 33,891 |
$ 34,372 |
Investment securities |
1,864 |
1,746 |
1,724 |
2,079 |
2,175 |
2,170 |
Other interest-earning
assets |
130 |
140 |
131 |
180 |
213 |
217 |
Total interest income |
31,472 |
32,425 |
34,686 |
35,083 |
36,279 |
36,759 |
Interest
expense: |
|
|
|
|
|
|
Interest bearing demand
deposits |
103 |
124 |
85 |
111 |
140 |
132 |
Money market accounts |
582 |
677 |
885 |
976 |
1,037 |
1,013 |
Savings accounts |
10 |
16 |
17 |
15 |
16 |
16 |
Time deposits of $100,000 or
more |
2,077 |
2,349 |
2,703 |
3,128 |
3,517 |
4,024 |
Other time deposits |
1,759 |
1,967 |
2,230 |
2,572 |
2,661 |
2,989 |
Total interest-bearing
deposits |
4,531 |
5,133 |
5,920 |
6,802 |
7,371 |
8,174 |
Other borrowings |
494 |
497 |
514 |
524 |
524 |
517 |
Subordinated debentures |
1,462 |
1,374 |
1,282 |
1,305 |
1,276 |
1,267 |
Total interest expense |
6,487 |
7,004 |
7,716 |
8,631 |
9,171 |
9,958 |
Net interest income |
24,985 |
25,421 |
26,970 |
26,452 |
27,108 |
26,801 |
Provision for loan losses |
20,140 |
9,050 |
7,265 |
11,988 |
7,776 |
8,531 |
Noninterest
income: |
|
|
|
|
|
|
Service charges and fees |
3,231 |
2,878 |
3,144 |
2,994 |
3,170 |
3,096 |
Gain on sales of loans |
401 |
194 |
682 |
653 |
416 |
985 |
Gain on investment
securities |
-- |
-- |
15 |
2,605 |
34 |
7 |
Other noninterest income
(loss) |
(28) |
177 |
248 |
83 |
342 |
90 |
Total noninterest income |
3,604 |
3,249 |
4,089 |
6,335 |
3,962 |
4,178 |
Noninterest
expense: |
|
|
|
|
|
|
Salaries and employee
benefits |
6,974 |
7,515 |
7,516 |
7,183 |
7,637 |
7,580 |
Occupancy |
2,703 |
2,804 |
2,717 |
2,835 |
2,836 |
2,783 |
FDIC and other insurance |
937 |
1,243 |
1,333 |
1,347 |
1,521 |
1,587 |
Other real estate, net |
2,602 |
436 |
1,255 |
228 |
629 |
106 |
Provision for unfunded loan
commitments |
128 |
(55) |
(332) |
(294) |
(512) |
(465) |
Other general and
administrative |
1,636 |
3,682 |
4,322 |
4,119 |
4,035 |
3,667 |
Total noninterest
expense |
14,980 |
15,625 |
16,811 |
15,418 |
16,146 |
15,258 |
Income (loss) before taxes |
(6,531) |
3,995 |
6,983 |
5,381 |
7,148 |
7,190 |
Taxes on income |
(3,561) |
1,534 |
2,675 |
1,508 |
2,737 |
2,818 |
Net income (loss) |
$ (2,970) |
$ 2,461 |
$ 4,308 |
$ 3,873 |
$ 4,411 |
$ 4,372 |
Net income (loss) available to common
shareholders |
(4,027) |
$ 1,408 |
$ 3,257 |
$ 2,825 |
$ 3,366 |
$ 3,329 |
PER SHARE
DATA |
|
|
|
|
|
|
Basic earnings per common
share |
$ (0.21) |
$ 0.07 |
$ 0.17 |
$ 0.15 |
$ 0.19 |
$ 0.23 |
Diluted earnings per common
share |
(0.21) |
0.07 |
0.17 |
0.15 |
0.19 |
0.23 |
Book value per common share |
15.89 |
16.02 |
15.97 |
15.93 |
15.88 |
16.79 |
Tangible book value per
share* |
15.54 |
15.67 |
15.62 |
15.58 |
15.53 |
16.33 |
COMMON
STOCK |
|
|
|
|
|
|
Shares issued and
outstanding |
19,439,167 |
19,438,290 |
19,421,900 |
19,395,675 |
19,388,797 |
14,779,711 |
OTHER FINANCIAL
DATA |
|
|
|
|
|
|
Investment securities |
$ 268,153 |
$ 258,436 |
$ 262,525 |
$ 240,844 |
$ 247,108 |
$ 241,693 |
Loans held for sale |
37,204 |
37,348 |
35,194 |
34,868 |
25,615 |
25,586 |
Noncovered portfolio loans |
2,156,096 |
2,241,080 |
2,331,293 |
2,412,796 |
2,475,348 |
2,516,397 |
Total noncovered loans |
2,193,300 |
2,278,428 |
2,366,487 |
2,447,664 |
2,500,963 |
2,541,983 |
Covered portfolio loans |
46,153 |
49,117 |
53,628 |
60,558 |
68,006 |
76,909 |
Total assets |
2,660,495 |
2,779,028 |
2,820,541 |
2,905,275 |
3,010,835 |
3,074,923 |
Total deposits |
2,094,236 |
2,218,571 |
2,252,728 |
2,345,648 |
2,444,939 |
2,554,165 |
Other borrowings |
96,682 |
85,332 |
94,602 |
82,506 |
93,036 |
103,620 |
Subordinated debentures |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
Total shareholders' equity |
376,930 |
379,350 |
377,812 |
376,576 |
375,319 |
315,341 |
Mortgage servicing portfolio |
283,083 |
281,271 |
278,146 |
261,266 |
249,632 |
241,224 |
INTANGIBLE ASSET
DATA |
|
|
|
|
|
|
Goodwill |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
Core deposit intangible |
3,285 |
3,420 |
3,557 |
3,693 |
3,830 |
3,967 |
Mortgage servicing rights |
1,781 |
1,718 |
1,810 |
1,661 |
1,589 |
1,603 |
Nonmortgage servicing rights |
3 |
3 |
4 |
4 |
5 |
5 |
Total intangible assets |
$ 11,880 |
$ 11,952 |
$ 12,182 |
$ 12,169 |
$ 12,235 |
$ 12,386 |
Intangible amortization
expense |
$ 222 |
$ 361 |
$ 402 |
$ 392 |
$ 350 |
$ 359 |
Continued |
|
|
|
|
|
|
____________________ |
|
|
|
|
|
|
*This is a Non-GAAP based
financial measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
Table 6 |
UNAUDITED QUARTERLY
SUMMARY FINANCIAL DATA |
Continued |
(Dollars in thousands,
except per share) |
|
|
|
|
2011 |
2010 |
|
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
LOAN
COMPOSITION |
|
|
|
|
|
|
Noncovered |
|
|
|
|
|
|
Real estate mortgage: |
|
|
|
|
|
|
Commercial |
$ 1,262,753 |
$ 1,302,164 |
$ 1,310,464 |
$ 1,271,278 |
$ 1,251,709 |
$ 1,230,009 |
One-to-four family
residential |
87,407 |
87,286 |
89,800 |
109,980 |
106,814 |
111,185 |
Real estate construction |
|
|
|
|
|
|
Commercial |
372,576 |
403,635 |
441,265 |
527,773 |
589,590 |
630,472 |
One-to-four family
residential |
26,400 |
26,758 |
27,429 |
30,527 |
35,129 |
34,996 |
Commercial |
404,229 |
416,392 |
452,626 |
463,132 |
471,004 |
487,074 |
Installment and consumer: |
|
|
|
|
|
|
Guaranteed student loans |
5,600 |
5,700 |
5,843 |
5,960 |
7,389 |
10,199 |
Other |
34,335 |
36,493 |
39,060 |
39,014 |
39,328 |
38,048 |
Total noncovered loans, including held
for sale |
2,193,300 |
2,278,428 |
2,366,487 |
2,447,664 |
2,500,963 |
2,541,983 |
Less allowance for loan
losses |
(54,575) |
(61,285) |
(65,229) |
(72,418) |
(67,055) |
(65,168) |
Total noncovered loans, net |
$ 2,138,725 |
$ 2,217,143 |
$ 2,301,258 |
$ 2,375,246 |
$ 2,433,908 |
$ 2,476,815 |
Covered |
|
|
|
|
|
|
Real estate mortgage: |
|
|
|
|
|
|
Commercial |
$ 26,976 |
$ 28,929 |
$ 30,997 |
$ 33,428 |
$ 36,107 |
$ 37,487 |
One-to-four family
residential |
8,113 |
8,192 |
9,122 |
10,071 |
10,277 |
10,843 |
Real estate construction |
|
|
|
|
|
|
Commercial |
6,001 |
6,144 |
6,840 |
7,464 |
8,190 |
11,173 |
One-to-four family
residential |
172 |
281 |
439 |
1,823 |
3,853 |
5,273 |
Commercial |
4,461 |
5,021 |
5,554 |
6,816 |
8,487 |
10,807 |
Installment and consumer: |
430 |
550 |
676 |
956 |
1,092 |
1,326 |
Total covered loans |
$ 46,153 |
$ 49,117 |
$ 53,628 |
$ 60,558 |
$ 68,006 |
$ 76,909 |
DEPOSIT
COMPOSITION |
|
|
|
|
|
|
Non-interest bearing demand |
$ 389,027 |
$ 369,013 |
$ 377,182 |
$ 329,655 |
$ 326,721 |
$ 317,896 |
Interest-bearing demand |
124,346 |
112,731 |
92,584 |
86,153 |
102,218 |
119,757 |
Money market accounts |
465,269 |
486,770 |
495,253 |
518,422 |
510,549 |
506,659 |
Savings accounts |
29,586 |
28,440 |
26,665 |
25,556 |
25,321 |
25,871 |
Time deposits of $100,000 or
more |
570,116 |
669,817 |
694,565 |
795,303 |
861,110 |
944,871 |
Other time deposits |
515,892 |
551,800 |
566,479 |
590,559 |
619,020 |
639,111 |
Total deposits** |
$ 2,094,236 |
$ 2,218,571 |
$ 2,252,728 |
$ 2,345,648 |
$ 2,444,939 |
$ 2,554,165 |
LOANS BY
SEGMENT |
|
|
|
|
|
|
Oklahoma banking |
$ 834,189 |
$ 838,006 |
$ 871,393 |
$ 890,598 |
$ 914,004 |
$ 926,870 |
Texas banking |
911,134 |
953,123 |
982,845 |
1,024,863 |
1,041,228 |
1,063,511 |
Kansas banking |
260,431 |
272,685 |
289,642 |
309,240 |
329,157 |
342,596 |
Other states banking |
196,495 |
226,383 |
241,041 |
248,653 |
258,965 |
260,329 |
Subtotal |
2,202,249 |
2,290,197 |
2,384,921 |
2,473,354 |
2,543,354 |
2,593,306 |
Secondary market |
37,204 |
37,348 |
35,194 |
34,868 |
25,615 |
25,586 |
Total loans |
$ 2,239,453 |
$ 2,327,545 |
$ 2,420,115 |
$ 2,508,222 |
$ 2,568,969 |
$ 2,618,892 |
NET INCOME (LOSS) BY
SEGMENT |
|
|
|
|
|
|
Oklahoma banking |
$ 5,290 |
$ 3,435 |
$ 4,205 |
$ 3,399 |
$ 4,387 |
$ 2,857 |
Texas banking |
1,575 |
1,079 |
4,001 |
(1,801) |
757 |
1,685 |
Kansas banking |
971 |
131 |
293 |
(306) |
940 |
(322) |
Other states banking |
(9,039) |
(924) |
(3,674) |
494 |
(477) |
1,750 |
Subtotal |
(1,203) |
3,721 |
4,825 |
1,786 |
5,607 |
5,970 |
Secondary market |
127 |
(13) |
444 |
173 |
83 |
310 |
Other operations |
(1,894) |
(1,247) |
(961) |
1,914 |
(1,279) |
(1,908) |
Net income (loss) |
$ (2,970) |
$ 2,461 |
$ 4,308 |
$ 3,873 |
$ 4,411 |
$ 4,372 |
OFFICES AND
EMPLOYEES |
|
|
|
|
|
|
FTE Employees |
437 |
424 |
432 |
440 |
447 |
455 |
Branches |
23 |
23 |
23 |
23 |
23 |
24 |
Loan production offices |
2 |
2 |
2 |
2 |
2 |
2 |
Assets per employee |
$ 6,088 |
$ 6,554 |
$ 6,529 |
$ 6,603 |
$ 6,736 |
$ 6,758 |
____________________ |
|
|
|
|
|
|
**Calculation of
Non-brokered Deposits and Core Funding (Non-GAAP Financial
Measures) |
Total deposits |
$ 2,094,236 |
$ 2,218,571 |
$ 2,252,728 |
$ 2,345,648 |
$ 2,444,939 |
$ 2,554,165 |
Less: |
|
|
|
|
|
|
Brokered time deposits |
52,407 |
122,124 |
145,240 |
226,238 |
279,027 |
359,571 |
Other brokered deposits |
105,392 |
112,033 |
117,532 |
129,096 |
126,643 |
124,969 |
Non-brokered deposits |
$ 1,936,437 |
$ 1,984,414 |
$ 1,989,956 |
$ 1,990,314 |
$ 2,039,269 |
$ 2,069,625 |
Plus: |
|
|
|
|
|
|
Sweep repurchase
agreements |
30,636 |
27,214 |
26,492 |
22,211 |
22,700 |
33,192 |
Core funding |
$ 1,967,073 |
$ 2,011,628 |
$ 2,016,448 |
$ 2,012,525 |
$ 2,061,969 |
$ 2,102,817 |
|
|
|
|
|
|
|
Balance sheet amounts are
as of period end unless otherwise noted. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
Table 7 |
UNAUDITED QUARTERLY
SUPPLEMENTAL ANALYTICAL DATA |
|
(Dollars in thousands,
except per share) |
|
|
|
|
2011 |
2010 |
|
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
PERFORMANCE
RATIOS |
|
|
|
|
|
|
Return on average assets
(annualized) |
(0.43)% |
0.35% |
0.59% |
0.52% |
0.58% |
0.57% |
Return on average common equity
(annualized) |
(5.11) |
1.81 |
4.11 |
3.57 |
4.64 |
5.42 |
Return on average tangible common
equity (annualized)* |
(5.22) |
1.85 |
4.21 |
3.65 |
4.75 |
5.58 |
Net interest margin
(annualized) |
3.79 |
3.78 |
3.82 |
3.63 |
3.65 |
3.59 |
Total dividends declared to net
income |
(29.46) |
35.56 |
20.31 |
22.59 |
19.84 |
20.02 |
Effective tax rate |
54.53 |
38.40 |
38.31 |
28.02 |
38.29 |
39.19 |
Efficiency ratio |
52.40 |
54.50 |
54.13 |
47.02 |
51.97 |
49.25 |
NONPERFORMING
ASSETS |
|
|
|
|
|
|
Noncovered |
|
|
|
|
|
|
Nonaccrual loans |
$ 151,135 |
$ 134,934 |
$ 106,566 |
$ 135,209 |
$ 111,871 |
$ 97,858 |
90 days past due and
accruing |
43 |
529 |
517 |
452 |
333 |
4 |
Total nonperforming
loans |
151,178 |
135,463 |
107,083 |
135,661 |
112,204 |
97,862 |
Other real estate |
38,956 |
41,067 |
37,722 |
35,723 |
27,634 |
18,809 |
Total nonperforming
assets |
$ 190,134 |
$ 176,530 |
$ 144,805 |
$ 171,384 |
$ 139,838 |
$ 116,671 |
Performing restructured |
$ 3,191 |
$ 2,166 |
$ 2,177 |
$ 5,334 |
$ 5,525 |
$ 5,650 |
Potential problem loans |
$ 291,171 |
$ 217,406 |
$ 233,140 |
$ 236,844 |
$ 242,217 |
$ 275,912 |
Covered |
|
|
|
|
|
|
Nonaccrual loans |
$ 9,800 |
$ 9,809 |
$ 10,806 |
$ 7,906 |
$ 14,504 |
$ 16,192 |
90 days past due and
accruing |
-- |
-- |
-- |
1,871 |
130 |
356 |
Total nonperforming
loans |
9,800 |
9,809 |
10,806 |
9,777 |
14,634 |
16,548 |
Other real estate |
3,806 |
4,016 |
4,187 |
4,448 |
4,352 |
4,489 |
Total nonperforming
assets |
$ 13,606 |
$ 13,825 |
$ 14,993 |
$ 14,225 |
$ 18,986 |
$ 21,037 |
Potential problem loans |
$ 2,731 |
$ 3,444 |
$ 3,495 |
$ 6,413 |
$ 6,184 |
$ 6,620 |
ALLOWANCE
ACTIVITY |
|
|
|
|
|
|
Balance, beginning of period |
$ 61,285 |
$ 65,229 |
$ 72,418 |
$ 67,055 |
$ 65,168 |
$ 62,413 |
Charge offs |
27,562 |
13,392 |
14,720 |
7,006 |
6,168 |
6,545 |
Recoveries |
712 |
398 |
266 |
381 |
279 |
769 |
Net charge offs |
26,850 |
12,994 |
14,454 |
6,625 |
5,889 |
5,776 |
Provision for loan losses |
20,140 |
9,050 |
7,265 |
11,988 |
7,776 |
8,531 |
Balance, end of period |
$ 54,575 |
$ 61,285 |
$ 65,229 |
$ 72,418 |
$ 67,055 |
$ 65,168 |
ASSET QUALITY
RATIOS |
|
|
|
|
|
|
Net loan charge-offs to average
portfolio loans (annualized) |
4.76% |
2.25% |
2.35% |
1.05% |
0.92% |
0.90% |
Noncovered |
|
|
|
|
|
|
Nonperforming assets to portfolio loans
and other real estate |
8.66% |
7.74% |
6.11% |
7.00% |
5.59% |
4.60% |
Nonperforming loans to portfolio
loans |
7.01 |
6.04 |
4.59 |
5.62 |
4.53 |
3.89 |
Allowance for loan losses to portfolio
loans |
2.53 |
2.73 |
2.80 |
3.00 |
2.71 |
2.59 |
Allowance for loan losses to
nonperforming loans |
36.10 |
45.24 |
60.91 |
53.38 |
59.76 |
66.59 |
Covered |
|
|
|
|
|
|
Nonperforming assets to portfolio loans
and other real estate |
27.23% |
26.02% |
25.93% |
21.88% |
26.24% |
25.84% |
Nonperforming loans to portfolio
loans |
21.23 |
19.97 |
20.15 |
16.14 |
21.52 |
21.52 |
CAPITAL
RATIOS |
|
|
|
|
|
|
Average total shareholders' equity to
average assets |
13.98% |
13.57% |
13.24% |
12.85% |
11.78% |
10.18% |
Leverage ratio |
16.25 |
15.95 |
15.55 |
14.96 |
14.48 |
12.32 |
Tier 1 capital to risk-weighted
assets |
18.93 |
18.49 |
17.78 |
17.17 |
16.50 |
14.00 |
Total capital to risk-weighted
assets |
20.20 |
19.77 |
19.06 |
18.45 |
17.78 |
15.28 |
Tangible common equity to tangible
assets*** |
11.38 |
10.99 |
10.78 |
10.43 |
10.02 |
7.87 |
REGULATORY CAPITAL
DATA |
|
|
|
|
|
|
Tier I capital |
$ 444,106 |
$ 447,803 |
$ 445,966 |
$ 442,188 |
$ 438,973 |
$ 381,280 |
Total capital |
473,950 |
478,713 |
477,930 |
475,040 |
472,971 |
415,955 |
Total risk adjusted assets |
2,346,596 |
2,421,752 |
2,507,867 |
2,574,746 |
2,659,886 |
2,722,628 |
Average total assets |
2,733,561 |
2,807,518 |
2,867,114 |
2,955,779 |
3,032,328 |
3,094,756 |
____________________ |
|
|
|
|
|
|
*This is a Non-GAAP based
financial measure. |
***Calculation of Tangible
Capital to Tangible Assets (Non-GAAP Financial Measure) |
Total shareholders'
equity |
$ 376,930 |
$ 379,350 |
$ 377,812 |
$ 376,576 |
$ 375,319 |
$ 315,341 |
Less: |
|
|
|
|
|
|
Goodwill |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
Preferred stock |
68,084 |
67,902 |
67,724 |
67,548 |
67,375 |
67,205 |
Tangible common equity |
$ 302,035 |
$ 304,637 |
$ 303,277 |
$ 302,217 |
$ 301,133 |
$ 241,325 |
Total assets |
$ 2,660,495 |
$ 2,779,028 |
$ 2,820,541 |
$ 2,905,275 |
$ 3,010,835 |
$ 3,074,923 |
Less goodwill |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
Tangible assets |
$ 2,653,684 |
$ 2,772,217 |
$ 2,813,730 |
$ 2,898,464 |
$ 3,004,024 |
$ 3,068,112 |
Tangible common equity to tangible
assets |
11.38% |
10.99% |
10.78% |
10.43% |
10.02% |
7.87% |
|
|
|
|
|
|
|
Balance sheet amounts and
ratios are as of period end unless otherwise noted. |
CONTACT: Rick Green
President & CEO
Laura Robertson
EVP & CFO
(405) 372-2230
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