Thursday, July 19, 2012 3:49:54 AM
Q2 earnings of $0.15 have been announced, beating analyst estimates by $0.00.
Southwest Bancorp Inc. Reports Net Income of $4.1 Million for the Second Quarter of 2012Font size: A | A | A
8:00 AM ET 7/18/12 | GlobeNewswire
Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP), ("Southwest"), today reported earnings for the second quarter of 2012 of $4.1 million, compared to a loss of ($3.0) million for the second quarter of 2011. Net income available to common shareholders was $3.0 million, or $0.15 per diluted share for the second quarter of 2012, compared to a net loss available to common shareholders of ($4.0) million, or ($0.21) per diluted share for the second quarter of 2011.
Southwest reported earnings for the first half of 2012 of $9.3 million, compared to a loss of ($0.5) million for the first half of 2011. Net income available to common shareholders was $7.1 million, or $0.37 per diluted share, for the first half of 2012, compared to a net loss available to common shareholders of ($2.6) million, or ($0.13) per diluted share, for the first half of 2011.
Rick Green, President and CEO, stated, "Our second quarter was one of continued profitability and regulatory achievements. We are pleased that the total of nonperforming assets plus potential problem loans is down and loan losses continue to decline. These factors, in addition to our smaller loan portfolio, reduced the required loan loss provision, which contributed to our performance. The reduction in loans also resulted in a decrease in net interest income. While we anticipate that further portfolio decreases may occur, we are working to stabilize loan revenue and volume by generating new loans prudently and profitably by focusing on customers in our primary markets.
"As of June 30, 2012, the capital ratios of Southwest and each of its banking subsidiaries continued to substantially exceed the ratios for regulatory classification as "well-capitalized", our nonperforming assets were 2.51% of our noncovered portfolio loans, and our allowance for loan losses was 2.92% of noncovered portfolio loans."
Mr. Green also noted, "We have continued to achieve our regulatory goals. In May 2012, the Office of the Comptroller of the Currency released Stillwater National from the formal regulatory agreement and the individual minimum capital agreement entered in January 2010. Earlier this month, with the consent of the Federal Reserve Bank of Kansas City, we terminated supervisory resolutions that we had adopted at its request in July 2009. Termination of these actions will reduce our regulatory burdens.
"We earlier announced our intention to bring current all dividends on our trust preferred securities and our Series B Preferred Stock owned by the Department of the Treasury. We now have brought current all the trust preferred securities and will bring the Series B Preferred Stock current in the next several days in accordance with its terms.
"Our Series B Preferred Stock carries with it significant burdens, and its dividend rate is scheduled to increase from 5% to 9% after 2013. With the termination of our regulatory agreements and resolutions and our payment of all dividends due, we now have as a top priority the redemption of our Series B Preferred Stock.
"Earlier this year, we reported that I plan to retire as President and CEO in January 2013. I am glad to report that our Board of Directors has made significant progress in identifying President and CEO candidates, has narrowed the field to a pool of highly-qualified finalists, and is proceeding to find the best fit expeditiously."
Key items for the quarter were as follows:
Unless otherwise indicated, the following discussion excludes "covered" assets, which are subject to loss sharing agreements with the FDIC. For information on covered versus noncovered assets, please see the accompanying unaudited financial statement and tables.
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-- Nonperforming loans were $20.7 million, 1.38% of portfolio loans, as of June 30, 2012, an increase of $6.3 million from $14.4 million, 0.92% of portfolio loans, as of March 31, 2012. This increase is primarily the result of one healthcare related loan in our Texas market. -- Nonperforming assets were $38.0 million, or 2.51% of portfolio loans and other real estate, as of June 30, 2012, an increase of $4.2 million (12%) from $33.8 million, or 2.12% of portfolio loans and other real estate, as of March 31, 2012. The increase in nonperforming assets during the second quarter of 2012 is attributable to placing $12.2 million in loans on nonaccrual, offset in part by the receipt of $3.8 million in resolutions and payments on nonperforming loans, the receipt of $1.1 million from sales of other real estate, net charge-offs of $2.2 million in nonperforming loans, and the recognition of impairments in other real estate assets of $1.0 million, which resulted in the Kansas Banking segment second quarter loss. -- Potential problem loans were $111.1 million as of June 30, 2012, a decrease of $15.2 million (12%) from $126.3 million as of March 31, 2012. The decrease in potential problem loans resulted from $15.9 million in resolutions and paydowns, $11.8 million in movement to nonaccrual, and $8.6 million in upgrades, offset in part by the identification of $21.1 million in additional potential problem loans. -- The allowance for loan losses was $43.8 million at June 30, 2012, a decrease of $1.2 million (3%) from March 31, 2012. The allowance for loan losses to portfolio loans was 2.92% as of June 30, 2012 compared to 2.87% as of March 31, 2012. The allowance for loan losses to nonperforming loans was 211.43% as of June 30, 2012 compared to 312.14% as of March 31, 2012. -- Portfolio loans decreased $72.2 million (5%) from March 31, 2012. The decline was anticipated due in part to the change in our lending focus away from larger average size loans. -- The capital ratios of Southwest and each of its banking subsidiaries, as of June 30, 2012, met the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $404.3 million, for a total risk-based capital ratio of 23.52%, and Tier 1 capital was $382.3 million, for a Tier 1 risk-based capital ratio of 22.24%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $232.3 million. Stillwater National Bank, Southwest's principal banking subsidiary, had total regulatory capital of $329.2 million, for a total risk-based capital ratio of 21.42%, and Tier 1 capital of $294.7 million, for a Tier 1 risk-based capital ratio of 19.17%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $175.5 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators. -- At June 30, 2012, the holding company had $22.3 million in available cash.
Financial Overview
Condition: At June 30, 2012 total assets were $2.3 billion, down $113.2 million, or 5%, from December 31, 2011, and total loans were $1.6 billion, down $210.1 million, or 12%, from December 31, 2011.
At June 30, 2012 the noncovered allowance for loan losses was $43.8 million, a decrease of 1% from December 31, 2011. The noncovered allowance for loan losses to noncovered portfolio loans was 2.92% as of June 30, 2012 compared to 2.62% as of December 31, 2011.
Investment securities increased $65.0 million, or 24%, to $340.4 million as of June 30, 2012, from $275.4 million as of December 31, 2011. The increase is primarily the result of a $31.5 million, or 17%, increase in government agency guaranteed residential mortgage-backed securities, a $19.4 million, or 30%, increase in U.S. government and agency securities, a $12.7 million, or 48%, increase in municipal securities, and $1.2 million in other mortgage-backed securities. The investment portfolio is managed to provide safety, liquidity, and collateral for public funds and borrowings. Southwest plans to continue to invest in treasury, U.S. agency, and high grade municipal securities. The investment portfolio continues to be managed in compliance with the current investment policy, including the average duration of the portfolio not exceeding four years.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of June 30, 2012, compared to 94% at December 31, 2011. Core funding by segment is as follows as of June 30, 2012 and December 31, 2011, respectively: $1,359.6 million and $1,426.2 million in Oklahoma banking, $155.1 million and $156.2 million in Texas banking, $273.2 million and $273.6 million in Kansas banking, and $27.4 million and $3.9 million in the secondary market and other operations segments. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at June 30, 2012, compared to 6% at December 31, 2011. Please see Table 7 for details on these non-GAAP financial measures.
Second Quarter Results:
Summary: For the second quarter of 2012, net income available to common shareholders was $3.0 million, compared to a net loss available to common shareholders of ($4.0) million for the second quarter of 2011. The $7.0 million increase in our net income available to common shareholders from second quarter 2011 is the result of a $20.1 million decrease in the provision for loan losses, offset in part by a $5.2 million decrease in net interest income, a $6.0 million increase in income tax expense, and a $1.8 million increase in noninterest expense.
The second quarter 2012 effective tax rate was 37.12%.
Net Interest Income: Net interest income totaled $19.7 million for the second quarter of 2012, compared to $25.0 million for the second quarter of 2011, a decrease of $5.2 million, or 21%, and to $20.8 million for the first quarter of 2012, a decrease of $1.1 million, or 5%. Lower average loan volume was the primary cause of each of these decreases. Net interest margin was 3.71% for the second quarter of 2012, compared to 3.79% for the second quarter of 2011 and 3.82% for the first quarter of 2012.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses totaled $32,000 for the second quarter of 2012, compared to $20.1 million for second quarter of 2011 and $1.7 million for the first quarter of 2012. Net charge-offs totaled $1.2 million, or 0.31% (annualized) of average portfolio loans for the second quarter of 2012, compared to $26.9 million, or 4.76% (annualized) of average portfolio loans for the second quarter of 2011 and $1.3 million, or 0.32% (annualized) of average portfolio loans for the first quarter of 2012. 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 for the period.
Noninterest Income: Noninterest income totaled $3.6 million for the second quarter of 2012, compared to $3.6 million for the second quarter of 2011 and $3.5 million for the first quarter of 2012.
Noninterest Expense: Noninterest expense totaled $16.8 million for the second quarter of 2012, compared to $15.0 million for the second quarter of 2011 and $14.3 million for the first quarter of 2012.
The $1.8 million increase from second quarter of 2011 consists of a $2.0 million increase in general and administrative expense, which is primarily the result of the prior year settlement of Oklahoma state tax claims for less than the amount accrued, a $0.4 million increase in personnel expense, and a $0.3 million increase in the provision for unfunded loan commitments, offset in part by a $0.5 million decrease in other real estate expense, a $0.2 million decrease in FDIC and other insurance expense, and a $0.1 million decrease in occupancy expense.
The $2.5 million increase from first quarter of 2012 consists of a $1.7 million increase in other real estate expense due to the fair value write-down of properties and increased expenses, a $0.4 million increase in general and administrative expense due to a second quarter write-down of an investment carried at cost, and a $0.3 million increase in the provision for unfunded loan commitments.
Year-to-date Results:
Summary: Net income available to common shareholders was $7.1 million as of June 30, 2012, compared to a net loss available to common shareholders of ($2.6) million as of June 30, 2011. The $9.7 million increase in our net income available to common shareholders from 2011 is the result of a $27.4 million decrease in the provision for loan losses and a $0.3 million increase in noninterest income, offset in part by a $9.8 million decrease in net interest income, a $7.6 million increase in income tax expense, and a $0.5 million increase in noninterest expense.
The year-to-date effective tax rate was 37.33% as of June 30, 2012.
Net Interest Income: Net interest income totaled $40.6 million for the first six months of 2012, compared to $50.4 million for the first six months of 2011, a decrease of $9.8 million, or 19%. Lower loan volume was the primary cause of this decrease. Year-to-date net interest margin was 3.77%, compared to 3.78% for 2011.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses totaled $1.7 million for the first six months of 2012, compared to $29.2 million for the first six months of 2011. Net charge-offs totaled $2.5 million, or 0.32% (annualized) of average portfolio loans year-to-date as of June 30, 2012, compared to $39.8 million, or 3.49% (annualized) of average portfolio loans for the same period 2011. 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 for the period.
Noninterest Income: Noninterest income totaled $7.1 million for the first six months of 2012, compared to $6.9 million for the first six months of 2011. The increase in noninterest income was primarily the result of a $0.5 million increase in gain on sale of loans, offset in part by a $0.3 million decline in service charges and fees.
Noninterest Expense: Noninterest expense totaled $31.1 million for the first six months of 2012, compared to $30.6 million for the first six months of 2011. The increase consists of a $1.6 million increase in general and administrative expense, which is primarily the result of the prior year settlement of Oklahoma state tax claims for less than the amount accrued, a $0.4 million increase in the provision for unfunded loan commitments, and a $0.1 million increase in personnel expense, offset in part by a $0.7 million decrease in FDIC and other insurance expense, a $0.6 million decrease in other real estate expense, and a $0.3 million decrease in occupancy 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(R). We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At June 30, 2012 we had total assets of $2.3 billion, deposits of $1.8 billion, and shareholders' equity of $314.6 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, 2012, approximately $536.1 million, or 35%, of our noncovered loans were loans to individuals and businesses in the healthcare industry. We conduct regular market reviews of our current and potential healthcare lending and the appropriate concentrations within healthcare based upon economic and regulatory conditions.
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, 2012 approximately $1.1 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $361.5 million of loans to individuals and businesses in the healthcare industry.
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
Caution About Forward-Looking Statements
We make forward-looking statements in this news release that are subject to risks and uncertainties. We intend these statements 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:
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-- Statements of Southwest's goals, intentions, and expectations; -- Estimates of risks and of future costs and benefits; -- Expectations regarding our future financial performance and the financial performance of our operating segments; -- Expectations regarding regulatory actions; -- Expectations regarding our ability to utilize tax loss benefits; -- Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; -- Estimates of the value of assets held for sale or available for sale; and -- Statements of our 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 our 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 the "Risk Factors" contained in Southwest's reports to the Securities and Exchange Commission.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause our 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. We do not intend, and undertake 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, 2012 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2012 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.
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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 Loan Data Table 6 Unaudited Quarterly Summary Financial Data Table 7 Unaudited Quarterly Supplemental Analytical Data Table 8
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Table SOUTHWEST BANCORP, INC. 1 UNAUDITED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share) Second Quarter First Quarter --------------------------------- -------------------------------- ------------------ QUARTERLY HIGHLIGHTS % % 2012 2011 Change 2012 Change ---------- ---------- -------- ---------- ------ Operations Net interest income $ 19,747 $ 24,985 (21)% $ 20,849 (5)% Provision for loan losses 32 20,140 (100) 1,716 (98) Noninterest income 3,601 3,604 -- 3,514 2 Noninterest expense 16,769 14,980 12 14,309 17 Income (loss) before taxes 6,547 (6,531) (200) 8,338 (21) Taxes on income 2,430 (3,561) (168) 3,127 (22) Net income (loss) 4,117 (2,970) (239) 5,211 (21) Net income (loss) available to common shareholders 3,011 (4,027) (175) 4,119 (27) Diluted earnings per share 0.15 (0.21) (171) 0.21 (29) Balance Sheet Total assets 2,269,720 2,660,495 (15) 2,273,861 (0) Loans held for sale 23,996 37,204 (36) 38,765 (38) Noncovered portfolio loans 1,498,708 2,156,096 (30) 1,570,866 (5) Covered portfolio loans 30,712 46,153 (33) 33,314 (8) Total deposits 1,788,379 2,094,236 (15) 1,806,780 (1) Total shareholders' equity 314,600 376,930 (17) 311,643 1 Book value per common share 12.64 15.89 (20) 12.50 1 Key Ratios Net interest margin 3.71% 3.79% 3.82% Efficiency ratio 71.82 52.40 58.73 Total capital to risk-weighted assets 23.52 20.20 22.49 Nonperforming loans to portfolio loans - noncovered 1.38 7.01 0.92 Shareholders' equity to total assets 13.86 14.17 13.71 Tangible common equity to tangible assets* 10.56 11.38 10.42 Return on average assets (annualized) 0.72 (0.43) 0.89 Return on average common equity (annualized) 4.92 (5.11) 6.84 Return on average tangible common equity (annualized)** 5.06 (5.22) 7.03 --------------------------------------------------------------------------------------- YEAR-TO-DATE HIGHLIGHTS Six Months -------------------------------- % 2012 2011 Change ---------- ---------- -------- Operations Net interest income $ 40,596 $ 50,406 (19)% Provision for loan losses 1,748 29,190 (94) Noninterest income 7,115 6,853 4 Noninterest expense 31,078 30,605 2 Income (loss) before taxes 14,885 (2,536) (687) Taxes on income 5,557 (2,027) (374) Net income (loss) 9,328 (509) (1,933) Net income (loss) available to common shareholders 7,130 (2,619) (372) Diluted earnings per share 0.37 (0.13) (385) Balance Sheet Total assets 2,269,720 2,660,495 (15) Loans held for sale 23,996 37,204 (36) Noncovered portfolio loans 1,498,708 2,156,096 (30) Covered portfolio loans 30,712 46,153 (33) Total deposits 1,788,379 2,094,236 (15) Total shareholders' equity 314,600 376,930 (17) Book value per common share 12.64 15.89 (20) Key Ratios Net interest margin 3.77 % 3.78 % Efficiency ratio (GAAP-based) 65.14 53.45 Total capital to risk-weighted assets 23.52 20.20 Nonperforming loans to portfolio loans - noncovered 1.38 7.01 Shareholders' equity to total assets 13.86 14.17 Tangible common equity to tangible assets* 10.56 11.38 Return on average assets 0.81 (0.04) Return on average common equity 5.87 (1.67) Return on average tangible common equity** 6.04 (1.71) --------------------------------------------------------------------------------------- Balance sheet amounts and ratios are as of period end unless otherwise noted. * This is a Non-GAAP financial measure. Please see Table 8 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.
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SOUTHWEST BANCORP, INC. Table 2 UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share) December June 30, 31, June 30, 2012 2011 2011 ----------- ----------- ----------- Assets Cash and due from banks $ 39,539 $ 30,247 $ 26,368 Interest-bearing deposits 236,336 199,642 41,733 ----------- ----------- ----------- Cash and cash equivalents 275,875 229,889 68,101 Securities held to maturity (fair values of $13,735, $15,885, $15,461, respectively) 12,962 15,252 15,419 Securities available for sale (amortized cost of $320,929, $253,869,$248,004, respectively) 327,416 260,100 252,734 Loans held for sale 23,996 38,695 37,204 Noncovered loans receivable 1,498,708 1,687,178 2,156,096 Less: Allowance for loan losses (43,807) (44,233) (54,575) ----------- ----------- ----------- Net noncovered loans receivable 1,454,901 1,642,945 2,101,521 Covered loans receivable (includes loss share: $8,096, $10,073, and $12,101, respectively) 30,712 37,615 46,153 Less: Allowance for loan losses (91) (451) -- ----------- ----------- ----------- Net covered loans receivable 30,621 37,164 46,153 Net loans receivable 1,485,522 1,680,109 2,147,674 Accrued interest receivable 7,014 7,176 7,973 Income tax receivable 24,974 28,666 11,393 Premises and equipment, net 22,436 22,700 23,158 Noncovered other real estate 17,263 19,844 38,956 Covered other real estate 3,825 4,529 3,806 Goodwill 6,811 6,811 6,811 Other intangible assets, net 4,760 4,857 5,069 Other assets 56,866 64,245 42,197 ----------- ----------- ----------- Total assets $ 2,269,720 $ 2,382,873 $ 2,660,495 =========== =========== =========== Liabilities Deposits: Noninterest-bearing demand $ 421,083 $ 400,985 $ 389,027 Interest-bearing demand 119,929 105,905 124,346 Money market accounts 361,839 423,181 465,269 Savings accounts 35,610 33,406 29,586 Time deposits of $100,000 or more 431,317 487,907 570,116 Other time deposits 418,601 469,998 515,892 ----------- ----------- ----------- Total deposits 1,788,379 1,921,382 2,094,236 Accrued interest payable 831 3,689 1,574 Other liabilities 15,470 12,174 9,110 Other borrowings 68,477 56,479 96,682 Subordinated debentures 81,963 81,963 81,963 ----------- ----------- ----------- Total liabilities 1,955,120 2,075,687 2,283,565 Shareholders' equity Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding 68,837 68,455 68,084 Common stock -- $1 par value; 40,000,000 shares authorized; 19,447,202, 19,444,213, 19,439,167 shares issued and outstanding, respectively 19,447 19,444 19,439 Additional paid-in capital 98,899 98,932 99,005 Retained earnings 125,373 118,244 188,174 Accumulated other comprehensive income 2,044 2,111 2,228 ----------- ----------- ----------- Total shareholders' equity 314,600 307,186 376,930 ----------- ----------- ----------- Total liabilities and shareholders' equity $ 2,269,720 $ 2,382,873 $ 2,660,495 =========== =========== ===========
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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, ------------------- ------------------- 2012 2011 2012 2011 -------- --------- -------- --------- Interest income Loans $ 21,708 $ 29,478 $ 45,085 $ 60,017 Investment securities 2,139 1,864 4,085 3,610 Other interest-earning assets 193 130 377 270 -------- --------- -------- --------- Total interest income 24,040 31,472 49,547 63,897 Interest expense Interest-bearing deposits 2,542 4,531 5,438 9,664 Other borrowings 222 494 446 991 Subordinated debentures 1,529 1,462 3,067 2,836 -------- --------- -------- --------- Total interest expense 4,293 6,487 8,951 13,491 -------- --------- -------- --------- Net interest income 19,747 24,985 40,596 50,406 Provision for loan losses 32 20,140 1,748 29,190 -------- --------- -------- --------- Net interest income after provision for loan losses 19,715 4,845 38,848 21,216 Noninterest income Service charges and fees 2,931 3,231 5,858 6,109 Gain on sales of loans 582 401 1,117 595 Gain on investment securities 35 -- 35 -- Other noninterest income (loss) 53 (28) 105 149 -------- --------- -------- --------- Total noninterest income 3,601 3,604 7,115 6,853 Noninterest expense Salaries and employee benefits 7,354 6,974 14,601 14,489 Occupancy 2,635 2,703 5,180 5,507 FDIC and other insurance 699 937 1,482 2,180 Other real estate, net 2,059 2,602 2,431 3,038 General and administrative 4,022 1,764 7,384 5,391 -------- --------- -------- --------- Total noninterest expense 16,769 14,980 31,078 30,605 -------- --------- -------- --------- Income (loss) before taxes 6,547 (6,531) 14,885 (2,536) Taxes on income 2,430 (3,561) 5,557 (2,027) -------- --------- -------- --------- Net income (loss) $ 4,117 $ (2,970) $ 9,328 $ (509) -------- --------- -------- --------- Net income (loss) available to common shareholders $ 3,011 $ (4,027) $ 7,130 $ (2,619) ======== ========= ======== ========= Basic earnings per common share $ 0.15 $ (0.21) $ 0.37 $ (0.13) Diluted earnings per common share 0.15 (0.21) 0.37 (0.13) Common dividends declared per share -- -- -- --
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SOUTHWEST BANCORP, INC. Table 4 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY (Dollars in thousands) For the three months ended June 30, -------------------------------------------------------------------- 2012 2011 --------------------------------- --------------------------------- Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate ----------- -------- ---------- ----------- -------- ---------- Assets Noncovered loans $ 1,565,342 $ 21,125 5.43% $ 2,250,678 $ 28,551 5.09% Covered loans 31,853 583 7.36 47,427 927 7.84 Investment securities 339,435 2,139 2.53 266,344 1,864 2.81 Other interest-earning assets 202,040 193 82,898 130 ----------- -------- 0.38 ----------- -------- 0.63 Total interest-earning assets 2,138,670 24,040 4.52 2,647,347 31,472 4.77 Other assets 147,822 99,803 ----------- ----------- Total assets $ 2,286,492 $ 2,747,150 =========== =========== Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 120,648 $ 59 0.20% $ 112,942 $ 103 0.37% Money market accounts 356,758 234 0.26 490,559 582 0.48 Savings accounts 34,632 13 0.15 29,154 10 0.14 Time deposits 880,007 2,236 1,165,606 3,836 ----------- -------- 1.02 ----------- -------- 1.32 Total interest-bearing deposits 1,392,045 2,542 0.73 1,798,261 4,531 1.01 Other borrowings 59,754 222 1.49 87,991 494 2.25 Subordinated debentures 81,963 1,529 81,963 1,462 ----------- -------- 7.46 ----------- -------- 7.13 Total interest-bearing liabilities 1,533,762 4,293 1.13 6,487 1.32 -------- ---------- 1,968,215 -------- ---------- Noninterest-bearing demand deposits 387,057 369,700 Other liabilities 50,696 25,066 Shareholders' equity 314,977 384,169 ----------- ----------- Total liabilities and shareholders' equity $ 2,286,492 $ 2,747,150 =========== =========== Net interest income and spread $ 19,747 3.39% $ 24,985 3.45% ======== ========== ======== ========== Net interest margin (1) 3.71% 3.79% ========== ========== Average interest-earning assets to average interest-bearing liabilities 139.44% 134.50% =========== =========== (1) Net interest margin = annualized net interest income / average interest-earning assets
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SOUTHWEST BANCORP, INC. Table 5 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - YEAR-TO-DATE (Dollars in thousands) For the six months ended June 30, -------------------------------------------------------------------- 2012 2011 --------------------------------- --------------------------------- Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate ----------- -------- ---------- ----------- -------- ---------- Assets Noncovered loans $ 1,614,980 $ 43,848 5.46% $ 2,288,570 $ 58,206 5.13% Covered loans 33,951 1,237 7.33 49,449 1,811 7.39 Investment securities 327,180 4,085 2.51 261,391 3,610 2.79 Other interest-earning assets 191,839 377 87,770 270 ----------- -------- 0.40 ----------- -------- 0.62 Total interest-earning assets 2,167,950 49,547 4.60 2,687,180 63,897 4.80 Other assets 153,370 95,825 ----------- ----------- Total assets $ 2,321,320 $ 2,783,005 =========== =========== Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 120,626 $ 129 0.22% $ 112,693 $ 227 0.41% Money market accounts 375,289 520 0.28 490,931 1,259 0.52 Savings accounts 34,609 26 0.15 28,451 26 0.18 Time deposits 905,900 4,763 1,206,650 8,152 ----------- -------- 1.06 ----------- -------- 1.36 Total interest-bearing deposits 1,436,424 5,438 0.76 1,838,725 9,664 1.06 Other borrowings 57,301 446 1.57 89,088 991 2.24 Subordinated debentures 81,963 3,067 81,963 2,836 ----------- -------- 7.48 ----------- -------- 6.92 Total interest-bearing liabilities 1,575,688 8,951 1.14 13,491 1.35 -------- ---------- 2,009,776 -------- ---------- Noninterest-bearing demand deposits 383,008 367,444 Other liabilities 49,692 22,445 Shareholders' equity 312,932 383,340 ----------- ----------- Total liabilities and shareholders' equity $ 2,321,320 $ 2,783,005 =========== =========== Net interest income and spread $ 40,596 3.46% $ 50,406 3.45% ======== ========== ======== ========== Net interest margin (1) 3.77% 3.78% ========== ========== Average interest-earning assets to average interest-bearing liabilities 137.59% 133.71% =========== =========== (1) Net interest margin = annualized net interest income / average interest-earning assets
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SOUTHWEST BANCORP, INC. Table 6 UNAUDITED QUARTERLY SUMMARY LOAN DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- LOAN COMPOSITION Noncovered: Real estate mortgage: Commercial $ 931,239 $ 996,486 $ 1,028,561 $ 1,169,010 $ 1,262,753 $ 1,302,164 One-to-four family residential 74,390 76,287 80,375 85,272 87,407 87,286 Real estate construction Commercial 211,098 222,678 227,098 348,053 372,576 403,635 One-to-four family residential 4,184 3,814 4,987 25,527 26,400 26,758 Commercial 263,085 273,324 346,266 367,241 404,229 416,392 Installment and consumer: Guaranteed student loans 5,153 5,276 5,396 5,547 5,600 5,700 Other 33,555 31,766 33,190 32,946 34,335 36,493 ----------- ----------- ----------- ----------- ----------- ----------- Total noncovered loans, including held for sale 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428 Less allowance for loan losses (43,807) (45,023) (44,233) (64,698) (54,575) (61,285) ----------- ----------- ----------- ----------- ----------- ----------- Total noncovered loans, net $ 1,478,897 $ 1,564,608 $ 1,681,640 $ 1,968,898 $ 2,138,725 $ 2,217,143 =========== =========== =========== =========== =========== =========== Covered: Real estate mortgage: Commercial $ 21,472 $ 22,607 $ 23,686 $ 23,201 $ 26,976 $ 28,929 One-to-four family residential 5,432 5,766 7,072 7,378 8,113 8,192 Real estate construction Commercial 1,627 2,344 3,746 5,987 6,001 6,144 One-to-four family residential -- -- -- -- 172 281 Commercial 2,033 2,401 2,841 4,286 4,461 5,021 Installment and consumer: 148 196 270 357 430 550 ----------- ----------- ----------- ----------- ----------- ----------- Total covered loans 30,712 33,314 37,615 41,209 46,153 49,117 Less allowance for loan losses (91) (60) (451) -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total covered loans, net $ 30,621 $ 33,254 $ 37,164 $ 41,209 $ 46,153 $ 49,117 =========== =========== =========== =========== =========== =========== LOANS BY SEGMENT Oklahoma banking $ 597,506 $ 642,700 $ 688,592 $ 770,306 $ 834,189 $ 838,006 Texas banking 596,262 636,540 665,010 845,485 911,134 953,123 Kansas banking 198,404 202,050 238,468 252,302 260,431 272,685 Out of market 137,248 122,890 132,723 166,810 196,495 226,383 ----------- ----------- ----------- ----------- ----------- ----------- Subtotal 1,529,420 1,604,180 1,724,793 2,034,903 2,202,249 2,290,197 Secondary market 23,996 38,765 38,695 39,902 37,204 37,348 ----------- ----------- ----------- ----------- ----------- ----------- Total loans $ 1,553,416 $ 1,642,945 $ 1,763,488 $ 2,074,805 $ 2,239,453 $ 2,327,545 =========== =========== =========== =========== =========== =========== NONPERFORMING LOANS BY TYPE Construction & development $ 3,608 $ 3,768 $ 3,877 $ 68,554 $ 73,487 $ 68,183 Commercial real estate 4,932 6,821 4,667 56,234 60,857 47,986 Commercial 10,878 2,209 3,374 6,080 15,224 16,633 One-to-four family residential 1,125 1,508 1,491 1,706 1,457 2,634 Consumer 176 118 140 152 153 27 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans - noncovered $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463 =========== =========== =========== =========== =========== =========== NONPERFORMING LOANS BY SEGMENT Oklahoma banking $ 2,305 $ 2,864 $ 3,699 $ 14,932 $ 18,870 $ 13,443 Texas banking 11,526 2,258 83 95,191 91,449 87,122 Kansas banking 6,214 8,617 9,070 7,976 9,725 7,924 Out of market 674 685 697 14,627 31,134 26,974 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans - noncovered $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463 =========== =========== =========== =========== =========== =========== OTHER REAL ESTATE BY TYPE Construction & development $ 2,585 $ 3,542 $ 3,542 $ 38,927 $ 12,588 $ 6,304 Commercial real estate 14,129 14,854 15,464 24,364 16,300 23,890 One-to-four family residential 549 933 838 7,494 10,068 10,873 ----------- ----------- ----------- ----------- ----------- ----------- Total other real estate - noncovered $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067 =========== =========== =========== =========== =========== =========== OTHER REAL ESTATE BY SEGMENT Oklahoma banking $ 6,178 $ 6,273 $ 6,178 $ 8,709 $ 2,613 $ 4,616 Texas banking 9,162 9,846 9,846 35,270 17,398 18,652 Kansas banking 1,923 3,210 3,210 12,390 14,539 12,848 Out of market -- -- 610 14,416 4,406 4,951 ----------- ----------- ----------- ----------- ----------- ----------- Total other real estate - noncovered $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067 =========== =========== =========== =========== =========== =========== POTENTIAL PROBLEM LOANS BY TYPE Construction & development $ 25,563 $ 33,907 $ 43,607 $ 75,867 $ 111,032 $ 111,204 Commercial real estate 71,537 67,654 55,873 162,692 140,079 85,833 Commercial 12,753 23,506 32,477 37,027 38,850 19,940 One-to-four family residential 1,230 1,253 1,082 1,108 1,210 429 ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem loans - noncovered $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 =========== =========== =========== =========== =========== =========== POTENTIAL PROBLEM LOANS BY SEGMENT Oklahoma banking $ 37,320 $ 32,761 $ 27,481 $ 54,310 $ 42,565 $ 30,678 Texas banking 58,021 78,961 83,035 163,973 183,486 114,506 Kansas banking 3,118 1,893 836 14,530 11,289 19,472 Out of market 12,624 12,705 21,687 43,881 53,831 52,750 ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem loans - noncovered $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 =========== =========== =========== =========== =========== =========== Continued SOUTHWEST BANCORP, INC. Table 6 UNAUDITED QUARTERLY SUMMARY LOAN DATA Continued (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- OUT OF MARKET LOANS Net balance out of market loans: Arizona $ 39,449 $ 34,749 $ 26,372 $ 35,978 $ 49,977 $ 57,657 Iowa 23,022 23,130 26,494 26,626 26,695 26,759 Ohio 11,502 12,650 12,741 9,367 9,568 9,963 California 9,922 10,252 10,530 10,737 9,814 9,984 Kentucky 9,455 517 488 490 492 494 South Carolina 7,320 -- -- -- -- -- Tennessee 6,310 6,368 6,427 6,484 6,550 6,606 Florida 6,240 6,269 6,421 6,374 10,582 7,600 Louisiana 4,974 4,931 5,336 5,644 5,963 8,018 New Mexico 3,714 3,715 15,215 21,019 21,092 28,226 Other 15,340 20,309 22,699 44,091 55,762 71,076 ----------- ----------- ----------- ----------- ----------- ----------- Total out of market loans $ 137,248 $ 122,890 $ 132,723 $ 166,810 $ 196,495 $ 226,383 =========== =========== =========== =========== =========== =========== Nonperforming out of market loans: Florida $ 287 $ 293 $ 299 $ 305 $ 1,479 $ 1,479 Arizona 256 261 267 8,441 16,745 10,316 Colorado 131 131 131 746 4,909 880 New Mexico -- -- -- 5,135 5,135 11,827 Alabama -- -- -- -- 157 172 Other -- -- -- -- 2,709 2,300 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming out of market loans $ 674 $ 685 $ 697 $ 14,627 $ 31,134 $ 26,974 =========== =========== =========== =========== =========== =========== Potential problem out of market loans: Iowa $ 11,970 $ 12,035 $ -- $ -- $ -- $ -- New Mexico -- -- 11,542 11,589 11,635 -- Arizona -- -- 9,463 10,287 14,865 25,242 California 559 570 578 593 9,423 9,575 Florida 95 100 104 108 116 -- Colorado -- -- -- 17,034 13,500 17,933 Alabama -- -- -- 4,270 4,292 -- ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem out of market loans $ 12,624 $ 12,705 $ 21,687 $ 43,881 $ 53,831 $ 52,750 =========== =========== =========== =========== =========== =========== ALLOWANCE ACTIVITY Balance, beginning of period $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285 $ 65,229 Charge offs 2,229 1,936 99,604 16,067 27,562 13,392 Recoveries 1,012 619 1,305 1,564 712 398 ----------- ----------- ----------- ----------- ----------- ----------- Net charge offs 1,217 1,317 98,299 14,503 26,850 12,994 Provision for loan losses 32 1,716 78,285 24,626 20,140 9,050 ----------- ----------- ----------- ----------- ----------- ----------- Balance, end of period $ 43,898 $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285 =========== =========== =========== =========== =========== =========== NET CHARGE OFFS BY TYPE Construction & development $ (85) $ (42) $ 41,513 $ 7,177 $ 10,847 $ 1,012 Commercial real estate 91 14 50,070 5,702 7,593 7,290 Commercial 1,228 1,211 6,434 1,469 7,999 4,337 One-to-four family residential (105) 123 1 55 165 58 Consumer 88 11 281 100 246 297 ----------- ----------- ----------- ----------- ----------- ----------- Total net charge offs by type $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994 =========== =========== =========== =========== =========== =========== NET CHARGE OFFS BY SEGMENT Oklahoma banking $ (204) $ 1,070 $ 13,210 $ 1,058 $ 1,442 $ 1,593 Texas banking 1,139 229 64,370 7,386 9,163 4,502 Kansas banking 324 166 8,872 361 1,791 372 Out of market (42) (148) 11,847 5,698 14,454 6,527 ----------- ----------- ----------- ----------- ----------- ----------- Total net charge offs by segment $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994 =========== =========== =========== =========== =========== =========== SOUTHWEST BANCORP, INC. Table 7 UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME (LOSS) BY SEGMENT Oklahoma banking $ 4,497 $ 3,158 $ (5,586) $ 7 $ 5,290 $ 3,435 Texas banking 1,435 3,161 (35,435) (6,455) 1,575 1,079 Kansas banking (424) 1,239 (7,533) (612) 971 131 Out of market 693 (570) (7,857) (1,947) (9,039) (924) ----------- ----------- ----------- ----------- ----------- ----------- Subtotal 6,201 6,988 (56,411) (9,007) (1,203) 3,721 Secondary market 124 286 144 90 127 (13) Other operations (2,208) (2,063) (1,994) (608) (1,894) (1,247) ----------- ----------- ----------- ----------- ----------- ----------- Net income (loss) $ 4,117 $ 5,211 $ (58,261) $ (9,525) $ (2,970) $ 2,461 =========== =========== =========== =========== =========== =========== PER SHARE DATA Basic earnings per common share $ 0.15 $ 0.21 $ (3.05) $ (0.54) $ (0.21) $ 0.07 Diluted earnings per common share 0.15 0.21 (3.05) (0.54) (0.21) 0.07 Book value per common share 12.64 12.50 12.28 15.37 15.89 16.02 Tangible book value per share* 12.29 12.15 11.93 15.02 15.54 15.67 COMMON STOCK Shares issued and outstanding 19,447,202 19,445,913 19,444,213 19,441,577 19,439,167 19,438,290 OTHER FINANCIAL DATA Investment securities $ 340,378 $ 333,860 $ 275,352 $ 269,599 $ 268,153 $ 258,436 Loans held for sale 23,996 38,765 38,695 39,902 37,204 37,348 Noncovered portfolio loans 1,498,708 1,570,866 1,687,178 1,993,694 2,156,096 2,241,080 Total noncovered loans 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428 Covered portfolio loans 30,712 33,314 37,615 41,209 46,153 49,117 Total assets 2,269,720 2,273,861 2,382,873 2,572,492 2,660,495 2,779,028 Total deposits 1,788,379 1,806,780 1,921,382 2,022,253 2,094,236 2,218,571 Other borrowings 68,477 55,139 56,479 86,583 96,682 85,332 Subordinated debentures 81,963 81,963 81,963 81,963 81,963 81,963 Total shareholders' equity 314,600 311,643 307,186 367,024 376,930 379,350 Mortgage servicing portfolio 305,465 301,378 295,492 285,886 283,083 281,271 INTANGIBLE ASSET DATA Goodwill $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 Core deposit intangible 2,785 2,906 3,030 3,155 3,285 3,420 Mortgage servicing rights 1,975 1,952 1,825 1,808 1,781 1,718 Nonmortgage servicing rights -- -- 2 3 3 3 ----------- ----------- ----------- ----------- ----------- ----------- Total intangible assets $ 11,571 $ 11,669 $ 11,668 $ 11,777 $ 11,880 $ 11,952 =========== =========== =========== =========== =========== =========== Intangible amortization expense $ 282 $ 296 $ 252 $ 226 $ 222 $ 361 ----------- ----------- ----------- ----------- ----------- ----------- DEPOSIT COMPOSITION Non-interest bearing demand $ 421,083 $ 395,141 $ 400,985 $ 388,365 $ 389,027 $ 369,013 Interest-bearing demand 119,929 119,759 105,905 98,270 124,346 112,731 Money market accounts 361,839 349,419 423,181 461,546 465,269 486,770 Savings accounts 35,610 34,679 33,406 31,319 29,586 28,440 Time deposits of $100,000 or more 431,317 464,876 487,907 551,914 570,116 669,817 Other time deposits 418,601 442,906 469,998 490,839 515,892 551,800 ----------- ----------- ----------- ----------- ----------- ----------- Total deposits** $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571 =========== =========== =========== =========== =========== =========== OFFICES AND EMPLOYEES FTE Employees 430 435 435 437 437 424 Branches 23 23 23 23 23 23 Loan production offices 2 2 2 2 2 2 Assets per employee $ 5,278 $ 5,227 $ 5,478 $ 5,887 $ 6,088 $ 6,554 *This is a Non-GAAP based financial measure. **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) Total deposits $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571 Less: Brokered time deposits 12,238 13,307 14,974 46,838 52,407 122,124 Other brokered deposits 4,420 6,529 78,236 105,483 105,392 112,033 ----------- ----------- ----------- ----------- ----------- ----------- Non-brokered deposits $ 1,771,721 $ 1,786,944 $ 1,828,172 $ 1,869,932 $ 1,936,437 $ 1,984,414 ----------- ----------- ----------- ----------- ----------- ----------- Plus: Sweep repurchase agreements 43,477 30,139 31,482 40,305 30,636 27,214 ----------- ----------- ----------- ----------- ----------- ----------- Core funding $ 1,815,198 $ 1,817,083 $ 1,859,654 $ 1,910,237 $ 1,967,073 $ 2,011,628 =========== =========== =========== =========== =========== =========== Balance sheet amounts are as of period end unless otherwise noted. SOUTHWEST BANCORP, INC. Table 8 UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- PERFORMANCE RATIOS Return on average assets (annualized) 0.72% 0.89% (8.96)% (1.43)% (0.43)% 0.35% Return on average common equity (annualized) 4.92 6.84 (79.48) (13.42) (5.11) 1.81 Return on average tangible common equity (annualized)* 5.06 7.03 (81.35) (13.72) (5.22) 1.85 Net interest margin (annualized) 3.71 3.82 3.62 3.77 3.79 3.78 Effective tax rate 37.12 37.50 38.49 35.23 54.53 38.40 Efficiency ratio 71.82 58.73 164.47 64.07 52.40 54.50 NONPERFORMING ASSETS Noncovered: Nonaccrual loans $ 20,474 $ 14,324 $ 13,506 $ 132,268 $ 151,135 $ 134,934 90 days past due and accruing 245 100 43 458 43 529 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans 20,719 14,424 13,549 132,726 151,178 135,463 Other real estate 17,263 19,329 19,844 70,785 38,956 41,067 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 37,982 $ 33,753 $ 33,393 $ 203,511 $ 190,134 $ 176,530 =========== =========== =========== =========== =========== =========== Performing restructured $ 328 $ 1,700 $ 1,017 $ 1,026 $ 3,191 $ 2,166 ----------- ----------- ----------- ----------- ----------- ----------- Potential problem loans $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 ----------- ----------- ----------- ----------- ----------- ----------- Covered: Nonaccrual loans $ 6,067 $ 7,015 $ 7,128 $ 7,065 $ 9,800 $ 9,809 90 days past due and accruing -- -- -- 610 -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans 6,067 7,015 7,128 7,675 9,800 9,809 Other real estate 3,825 4,694 4,529 5,350 3,806 4,016 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 9,892 $ 11,709 $ 11,657 $ 13,025 $ 13,606 $ 13,825 =========== =========== =========== =========== =========== =========== Performing restructured $ 1,701 $ -- $ -- $ -- $ -- $ -- ----------- ----------- ----------- ----------- ----------- ----------- Potential problem loans $ 1,573 $ 553 $ 912 $ 2,015 $ 2,731 $ 3,444 ----------- ----------- ----------- ----------- ----------- ----------- ASSET QUALITY RATIOS Net loan charge-offs to average portfolio loans (annualized) 0.31% 0.32% 19.78% 2.70% 4.76% 2.25% Noncovered: Nonperforming assets to portfolio loans and other real estate 2.51% 2.12% 1.96% 9.86% 8.66% 7.74% Nonperforming loans to portfolio loans 1.38 0.92 0.80 6.66 7.01 6.04 Allowance for loan losses to portfolio loans 2.92 2.87 2.62 3.25 2.53 2.73 Allowance for loan losses to nonperforming loans 211.43 312.14 326.47 48.75 36.10 45.24 Covered: Nonperforming assets to portfolio loans and other real estate 28.64% 30.81% 27.66% 27.98% 27.23% 26.02% Nonperforming loans to portfolio loans 19.75 21.06 18.95 18.62 21.23 19.97 Allowance for loan losses to portfolio loans 0.30 0.18 1.20 -- -- -- Allowance for loan losses to nonperforming loans 1.50 0.86 6.33 -- -- -- CAPITAL RATIOS Average total shareholders' equity to average assets 13.78% 13.19% 14.14% 14.39% 13.98% 13.57% Leverage ratio 16.84 16.20 14.50 16.47 16.25 15.95 Tier 1 capital to risk-weighted assets 22.24 21.21 19.51 19.54 18.93 18.49 Total capital to risk-weighted assets 23.52 22.49 20.78 20.81 20.20 19.77 Tangible common equity to tangible assets*** 10.56 10.42 9.76 11.38 11.38 10.99 REGULATORY CAPITAL DATA Tier I capital $ 382,262 $ 378,949 $ 374,552 $ 433,628 $ 444,106 $ 447,803 Total capital 404,251 401,808 398,945 461,929 473,950 478,713 Total risk adjusted assets 1,719,057 1,786,282 1,920,075 2,219,271 2,346,596 2,421,752 Average total assets 2,269,639 2,339,784 2,562,094 2,633,000 2,733,561 2,807,518 *This is a Non-GAAP based financial measure. ***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) Total shareholders' equity $ 314,600 $ 311,643 $ 307,186 $ 367,024 $ 376,930 $ 379,350 Less: Goodwill 6,811 6,811 6,811 6,811 6,811 6,811 Preferred stock 68,837 68,644 68,455 68,268 68,084 67,902 ----------- ----------- ----------- ----------- ----------- ----------- Tangible common equity $ 238,952 $ 236,188 $ 231,920 $ 291,945 $ 302,035 $ 304,637 =========== =========== =========== =========== =========== =========== Total assets $ 2,269,720 $ 2,273,861 $ 2,382,873 $ 2,572,492 $ 2,660,495 $ 2,779,028 Less goodwill 6,811 6,811 6,811 6,811 6,811 6,811 ----------- ----------- ----------- ----------- ----------- ----------- Tangible assets $ 2,262,909 $ 2,267,050 $ 2,376,062 $ 2,565,681 $ 2,653,684 $ 2,772,217 =========== =========== =========== =========== =========== =========== Tangible common equity to tangible assets 10.56% 10.42% 9.76% 11.38% 11.38% 10.99% Balance sheet amounts and ratios are as of period end unless otherwise noted.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Southwest Bancorp, Inc.
(Logo: http://media.primezone.com/cache/13093/int/8863.jpg)
CONTACT: Rick Green
President & CEO
Priscilla J. Barnes
Senior EVP & COO
(405) 372-2230
Southwest Bancorp Inc. Reports Net Income of $4.1 Million for the Second Quarter of 2012Font size: A | A | A
8:00 AM ET 7/18/12 | GlobeNewswire
Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP), ("Southwest"), today reported earnings for the second quarter of 2012 of $4.1 million, compared to a loss of ($3.0) million for the second quarter of 2011. Net income available to common shareholders was $3.0 million, or $0.15 per diluted share for the second quarter of 2012, compared to a net loss available to common shareholders of ($4.0) million, or ($0.21) per diluted share for the second quarter of 2011.
Southwest reported earnings for the first half of 2012 of $9.3 million, compared to a loss of ($0.5) million for the first half of 2011. Net income available to common shareholders was $7.1 million, or $0.37 per diluted share, for the first half of 2012, compared to a net loss available to common shareholders of ($2.6) million, or ($0.13) per diluted share, for the first half of 2011.
Rick Green, President and CEO, stated, "Our second quarter was one of continued profitability and regulatory achievements. We are pleased that the total of nonperforming assets plus potential problem loans is down and loan losses continue to decline. These factors, in addition to our smaller loan portfolio, reduced the required loan loss provision, which contributed to our performance. The reduction in loans also resulted in a decrease in net interest income. While we anticipate that further portfolio decreases may occur, we are working to stabilize loan revenue and volume by generating new loans prudently and profitably by focusing on customers in our primary markets.
"As of June 30, 2012, the capital ratios of Southwest and each of its banking subsidiaries continued to substantially exceed the ratios for regulatory classification as "well-capitalized", our nonperforming assets were 2.51% of our noncovered portfolio loans, and our allowance for loan losses was 2.92% of noncovered portfolio loans."
Mr. Green also noted, "We have continued to achieve our regulatory goals. In May 2012, the Office of the Comptroller of the Currency released Stillwater National from the formal regulatory agreement and the individual minimum capital agreement entered in January 2010. Earlier this month, with the consent of the Federal Reserve Bank of Kansas City, we terminated supervisory resolutions that we had adopted at its request in July 2009. Termination of these actions will reduce our regulatory burdens.
"We earlier announced our intention to bring current all dividends on our trust preferred securities and our Series B Preferred Stock owned by the Department of the Treasury. We now have brought current all the trust preferred securities and will bring the Series B Preferred Stock current in the next several days in accordance with its terms.
"Our Series B Preferred Stock carries with it significant burdens, and its dividend rate is scheduled to increase from 5% to 9% after 2013. With the termination of our regulatory agreements and resolutions and our payment of all dividends due, we now have as a top priority the redemption of our Series B Preferred Stock.
"Earlier this year, we reported that I plan to retire as President and CEO in January 2013. I am glad to report that our Board of Directors has made significant progress in identifying President and CEO candidates, has narrowed the field to a pool of highly-qualified finalists, and is proceeding to find the best fit expeditiously."
Key items for the quarter were as follows:
Unless otherwise indicated, the following discussion excludes "covered" assets, which are subject to loss sharing agreements with the FDIC. For information on covered versus noncovered assets, please see the accompanying unaudited financial statement and tables.
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-- Nonperforming loans were $20.7 million, 1.38% of portfolio loans, as of June 30, 2012, an increase of $6.3 million from $14.4 million, 0.92% of portfolio loans, as of March 31, 2012. This increase is primarily the result of one healthcare related loan in our Texas market. -- Nonperforming assets were $38.0 million, or 2.51% of portfolio loans and other real estate, as of June 30, 2012, an increase of $4.2 million (12%) from $33.8 million, or 2.12% of portfolio loans and other real estate, as of March 31, 2012. The increase in nonperforming assets during the second quarter of 2012 is attributable to placing $12.2 million in loans on nonaccrual, offset in part by the receipt of $3.8 million in resolutions and payments on nonperforming loans, the receipt of $1.1 million from sales of other real estate, net charge-offs of $2.2 million in nonperforming loans, and the recognition of impairments in other real estate assets of $1.0 million, which resulted in the Kansas Banking segment second quarter loss. -- Potential problem loans were $111.1 million as of June 30, 2012, a decrease of $15.2 million (12%) from $126.3 million as of March 31, 2012. The decrease in potential problem loans resulted from $15.9 million in resolutions and paydowns, $11.8 million in movement to nonaccrual, and $8.6 million in upgrades, offset in part by the identification of $21.1 million in additional potential problem loans. -- The allowance for loan losses was $43.8 million at June 30, 2012, a decrease of $1.2 million (3%) from March 31, 2012. The allowance for loan losses to portfolio loans was 2.92% as of June 30, 2012 compared to 2.87% as of March 31, 2012. The allowance for loan losses to nonperforming loans was 211.43% as of June 30, 2012 compared to 312.14% as of March 31, 2012. -- Portfolio loans decreased $72.2 million (5%) from March 31, 2012. The decline was anticipated due in part to the change in our lending focus away from larger average size loans. -- The capital ratios of Southwest and each of its banking subsidiaries, as of June 30, 2012, met the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $404.3 million, for a total risk-based capital ratio of 23.52%, and Tier 1 capital was $382.3 million, for a Tier 1 risk-based capital ratio of 22.24%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $232.3 million. Stillwater National Bank, Southwest's principal banking subsidiary, had total regulatory capital of $329.2 million, for a total risk-based capital ratio of 21.42%, and Tier 1 capital of $294.7 million, for a Tier 1 risk-based capital ratio of 19.17%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $175.5 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators. -- At June 30, 2012, the holding company had $22.3 million in available cash.
Financial Overview
Condition: At June 30, 2012 total assets were $2.3 billion, down $113.2 million, or 5%, from December 31, 2011, and total loans were $1.6 billion, down $210.1 million, or 12%, from December 31, 2011.
At June 30, 2012 the noncovered allowance for loan losses was $43.8 million, a decrease of 1% from December 31, 2011. The noncovered allowance for loan losses to noncovered portfolio loans was 2.92% as of June 30, 2012 compared to 2.62% as of December 31, 2011.
Investment securities increased $65.0 million, or 24%, to $340.4 million as of June 30, 2012, from $275.4 million as of December 31, 2011. The increase is primarily the result of a $31.5 million, or 17%, increase in government agency guaranteed residential mortgage-backed securities, a $19.4 million, or 30%, increase in U.S. government and agency securities, a $12.7 million, or 48%, increase in municipal securities, and $1.2 million in other mortgage-backed securities. The investment portfolio is managed to provide safety, liquidity, and collateral for public funds and borrowings. Southwest plans to continue to invest in treasury, U.S. agency, and high grade municipal securities. The investment portfolio continues to be managed in compliance with the current investment policy, including the average duration of the portfolio not exceeding four years.
Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of June 30, 2012, compared to 94% at December 31, 2011. Core funding by segment is as follows as of June 30, 2012 and December 31, 2011, respectively: $1,359.6 million and $1,426.2 million in Oklahoma banking, $155.1 million and $156.2 million in Texas banking, $273.2 million and $273.6 million in Kansas banking, and $27.4 million and $3.9 million in the secondary market and other operations segments. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at June 30, 2012, compared to 6% at December 31, 2011. Please see Table 7 for details on these non-GAAP financial measures.
Second Quarter Results:
Summary: For the second quarter of 2012, net income available to common shareholders was $3.0 million, compared to a net loss available to common shareholders of ($4.0) million for the second quarter of 2011. The $7.0 million increase in our net income available to common shareholders from second quarter 2011 is the result of a $20.1 million decrease in the provision for loan losses, offset in part by a $5.2 million decrease in net interest income, a $6.0 million increase in income tax expense, and a $1.8 million increase in noninterest expense.
The second quarter 2012 effective tax rate was 37.12%.
Net Interest Income: Net interest income totaled $19.7 million for the second quarter of 2012, compared to $25.0 million for the second quarter of 2011, a decrease of $5.2 million, or 21%, and to $20.8 million for the first quarter of 2012, a decrease of $1.1 million, or 5%. Lower average loan volume was the primary cause of each of these decreases. Net interest margin was 3.71% for the second quarter of 2012, compared to 3.79% for the second quarter of 2011 and 3.82% for the first quarter of 2012.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses totaled $32,000 for the second quarter of 2012, compared to $20.1 million for second quarter of 2011 and $1.7 million for the first quarter of 2012. Net charge-offs totaled $1.2 million, or 0.31% (annualized) of average portfolio loans for the second quarter of 2012, compared to $26.9 million, or 4.76% (annualized) of average portfolio loans for the second quarter of 2011 and $1.3 million, or 0.32% (annualized) of average portfolio loans for the first quarter of 2012. 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 for the period.
Noninterest Income: Noninterest income totaled $3.6 million for the second quarter of 2012, compared to $3.6 million for the second quarter of 2011 and $3.5 million for the first quarter of 2012.
Noninterest Expense: Noninterest expense totaled $16.8 million for the second quarter of 2012, compared to $15.0 million for the second quarter of 2011 and $14.3 million for the first quarter of 2012.
The $1.8 million increase from second quarter of 2011 consists of a $2.0 million increase in general and administrative expense, which is primarily the result of the prior year settlement of Oklahoma state tax claims for less than the amount accrued, a $0.4 million increase in personnel expense, and a $0.3 million increase in the provision for unfunded loan commitments, offset in part by a $0.5 million decrease in other real estate expense, a $0.2 million decrease in FDIC and other insurance expense, and a $0.1 million decrease in occupancy expense.
The $2.5 million increase from first quarter of 2012 consists of a $1.7 million increase in other real estate expense due to the fair value write-down of properties and increased expenses, a $0.4 million increase in general and administrative expense due to a second quarter write-down of an investment carried at cost, and a $0.3 million increase in the provision for unfunded loan commitments.
Year-to-date Results:
Summary: Net income available to common shareholders was $7.1 million as of June 30, 2012, compared to a net loss available to common shareholders of ($2.6) million as of June 30, 2011. The $9.7 million increase in our net income available to common shareholders from 2011 is the result of a $27.4 million decrease in the provision for loan losses and a $0.3 million increase in noninterest income, offset in part by a $9.8 million decrease in net interest income, a $7.6 million increase in income tax expense, and a $0.5 million increase in noninterest expense.
The year-to-date effective tax rate was 37.33% as of June 30, 2012.
Net Interest Income: Net interest income totaled $40.6 million for the first six months of 2012, compared to $50.4 million for the first six months of 2011, a decrease of $9.8 million, or 19%. Lower loan volume was the primary cause of this decrease. Year-to-date net interest margin was 3.77%, compared to 3.78% for 2011.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses totaled $1.7 million for the first six months of 2012, compared to $29.2 million for the first six months of 2011. Net charge-offs totaled $2.5 million, or 0.32% (annualized) of average portfolio loans year-to-date as of June 30, 2012, compared to $39.8 million, or 3.49% (annualized) of average portfolio loans for the same period 2011. 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 for the period.
Noninterest Income: Noninterest income totaled $7.1 million for the first six months of 2012, compared to $6.9 million for the first six months of 2011. The increase in noninterest income was primarily the result of a $0.5 million increase in gain on sale of loans, offset in part by a $0.3 million decline in service charges and fees.
Noninterest Expense: Noninterest expense totaled $31.1 million for the first six months of 2012, compared to $30.6 million for the first six months of 2011. The increase consists of a $1.6 million increase in general and administrative expense, which is primarily the result of the prior year settlement of Oklahoma state tax claims for less than the amount accrued, a $0.4 million increase in the provision for unfunded loan commitments, and a $0.1 million increase in personnel expense, offset in part by a $0.7 million decrease in FDIC and other insurance expense, a $0.6 million decrease in other real estate expense, and a $0.3 million decrease in occupancy 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(R). We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At June 30, 2012 we had total assets of $2.3 billion, deposits of $1.8 billion, and shareholders' equity of $314.6 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, 2012, approximately $536.1 million, or 35%, of our noncovered loans were loans to individuals and businesses in the healthcare industry. We conduct regular market reviews of our current and potential healthcare lending and the appropriate concentrations within healthcare based upon economic and regulatory conditions.
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, 2012 approximately $1.1 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $361.5 million of loans to individuals and businesses in the healthcare industry.
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
Caution About Forward-Looking Statements
We make forward-looking statements in this news release that are subject to risks and uncertainties. We intend these statements 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:
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-- Statements of Southwest's goals, intentions, and expectations; -- Estimates of risks and of future costs and benefits; -- Expectations regarding our future financial performance and the financial performance of our operating segments; -- Expectations regarding regulatory actions; -- Expectations regarding our ability to utilize tax loss benefits; -- Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; -- Estimates of the value of assets held for sale or available for sale; and -- Statements of our 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 our 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 the "Risk Factors" contained in Southwest's reports to the Securities and Exchange Commission.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause our 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. We do not intend, and undertake 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, 2012 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2012 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.
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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 Loan Data Table 6 Unaudited Quarterly Summary Financial Data Table 7 Unaudited Quarterly Supplemental Analytical Data Table 8
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Table SOUTHWEST BANCORP, INC. 1 UNAUDITED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share) Second Quarter First Quarter --------------------------------- -------------------------------- ------------------ QUARTERLY HIGHLIGHTS % % 2012 2011 Change 2012 Change ---------- ---------- -------- ---------- ------ Operations Net interest income $ 19,747 $ 24,985 (21)% $ 20,849 (5)% Provision for loan losses 32 20,140 (100) 1,716 (98) Noninterest income 3,601 3,604 -- 3,514 2 Noninterest expense 16,769 14,980 12 14,309 17 Income (loss) before taxes 6,547 (6,531) (200) 8,338 (21) Taxes on income 2,430 (3,561) (168) 3,127 (22) Net income (loss) 4,117 (2,970) (239) 5,211 (21) Net income (loss) available to common shareholders 3,011 (4,027) (175) 4,119 (27) Diluted earnings per share 0.15 (0.21) (171) 0.21 (29) Balance Sheet Total assets 2,269,720 2,660,495 (15) 2,273,861 (0) Loans held for sale 23,996 37,204 (36) 38,765 (38) Noncovered portfolio loans 1,498,708 2,156,096 (30) 1,570,866 (5) Covered portfolio loans 30,712 46,153 (33) 33,314 (8) Total deposits 1,788,379 2,094,236 (15) 1,806,780 (1) Total shareholders' equity 314,600 376,930 (17) 311,643 1 Book value per common share 12.64 15.89 (20) 12.50 1 Key Ratios Net interest margin 3.71% 3.79% 3.82% Efficiency ratio 71.82 52.40 58.73 Total capital to risk-weighted assets 23.52 20.20 22.49 Nonperforming loans to portfolio loans - noncovered 1.38 7.01 0.92 Shareholders' equity to total assets 13.86 14.17 13.71 Tangible common equity to tangible assets* 10.56 11.38 10.42 Return on average assets (annualized) 0.72 (0.43) 0.89 Return on average common equity (annualized) 4.92 (5.11) 6.84 Return on average tangible common equity (annualized)** 5.06 (5.22) 7.03 --------------------------------------------------------------------------------------- YEAR-TO-DATE HIGHLIGHTS Six Months -------------------------------- % 2012 2011 Change ---------- ---------- -------- Operations Net interest income $ 40,596 $ 50,406 (19)% Provision for loan losses 1,748 29,190 (94) Noninterest income 7,115 6,853 4 Noninterest expense 31,078 30,605 2 Income (loss) before taxes 14,885 (2,536) (687) Taxes on income 5,557 (2,027) (374) Net income (loss) 9,328 (509) (1,933) Net income (loss) available to common shareholders 7,130 (2,619) (372) Diluted earnings per share 0.37 (0.13) (385) Balance Sheet Total assets 2,269,720 2,660,495 (15) Loans held for sale 23,996 37,204 (36) Noncovered portfolio loans 1,498,708 2,156,096 (30) Covered portfolio loans 30,712 46,153 (33) Total deposits 1,788,379 2,094,236 (15) Total shareholders' equity 314,600 376,930 (17) Book value per common share 12.64 15.89 (20) Key Ratios Net interest margin 3.77 % 3.78 % Efficiency ratio (GAAP-based) 65.14 53.45 Total capital to risk-weighted assets 23.52 20.20 Nonperforming loans to portfolio loans - noncovered 1.38 7.01 Shareholders' equity to total assets 13.86 14.17 Tangible common equity to tangible assets* 10.56 11.38 Return on average assets 0.81 (0.04) Return on average common equity 5.87 (1.67) Return on average tangible common equity** 6.04 (1.71) --------------------------------------------------------------------------------------- Balance sheet amounts and ratios are as of period end unless otherwise noted. * This is a Non-GAAP financial measure. Please see Table 8 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.
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SOUTHWEST BANCORP, INC. Table 2 UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share) December June 30, 31, June 30, 2012 2011 2011 ----------- ----------- ----------- Assets Cash and due from banks $ 39,539 $ 30,247 $ 26,368 Interest-bearing deposits 236,336 199,642 41,733 ----------- ----------- ----------- Cash and cash equivalents 275,875 229,889 68,101 Securities held to maturity (fair values of $13,735, $15,885, $15,461, respectively) 12,962 15,252 15,419 Securities available for sale (amortized cost of $320,929, $253,869,$248,004, respectively) 327,416 260,100 252,734 Loans held for sale 23,996 38,695 37,204 Noncovered loans receivable 1,498,708 1,687,178 2,156,096 Less: Allowance for loan losses (43,807) (44,233) (54,575) ----------- ----------- ----------- Net noncovered loans receivable 1,454,901 1,642,945 2,101,521 Covered loans receivable (includes loss share: $8,096, $10,073, and $12,101, respectively) 30,712 37,615 46,153 Less: Allowance for loan losses (91) (451) -- ----------- ----------- ----------- Net covered loans receivable 30,621 37,164 46,153 Net loans receivable 1,485,522 1,680,109 2,147,674 Accrued interest receivable 7,014 7,176 7,973 Income tax receivable 24,974 28,666 11,393 Premises and equipment, net 22,436 22,700 23,158 Noncovered other real estate 17,263 19,844 38,956 Covered other real estate 3,825 4,529 3,806 Goodwill 6,811 6,811 6,811 Other intangible assets, net 4,760 4,857 5,069 Other assets 56,866 64,245 42,197 ----------- ----------- ----------- Total assets $ 2,269,720 $ 2,382,873 $ 2,660,495 =========== =========== =========== Liabilities Deposits: Noninterest-bearing demand $ 421,083 $ 400,985 $ 389,027 Interest-bearing demand 119,929 105,905 124,346 Money market accounts 361,839 423,181 465,269 Savings accounts 35,610 33,406 29,586 Time deposits of $100,000 or more 431,317 487,907 570,116 Other time deposits 418,601 469,998 515,892 ----------- ----------- ----------- Total deposits 1,788,379 1,921,382 2,094,236 Accrued interest payable 831 3,689 1,574 Other liabilities 15,470 12,174 9,110 Other borrowings 68,477 56,479 96,682 Subordinated debentures 81,963 81,963 81,963 ----------- ----------- ----------- Total liabilities 1,955,120 2,075,687 2,283,565 Shareholders' equity Serial preferred stock; 2,000,000 shares authorized; 70,000 shares issued and outstanding 68,837 68,455 68,084 Common stock -- $1 par value; 40,000,000 shares authorized; 19,447,202, 19,444,213, 19,439,167 shares issued and outstanding, respectively 19,447 19,444 19,439 Additional paid-in capital 98,899 98,932 99,005 Retained earnings 125,373 118,244 188,174 Accumulated other comprehensive income 2,044 2,111 2,228 ----------- ----------- ----------- Total shareholders' equity 314,600 307,186 376,930 ----------- ----------- ----------- Total liabilities and shareholders' equity $ 2,269,720 $ 2,382,873 $ 2,660,495 =========== =========== ===========
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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, ------------------- ------------------- 2012 2011 2012 2011 -------- --------- -------- --------- Interest income Loans $ 21,708 $ 29,478 $ 45,085 $ 60,017 Investment securities 2,139 1,864 4,085 3,610 Other interest-earning assets 193 130 377 270 -------- --------- -------- --------- Total interest income 24,040 31,472 49,547 63,897 Interest expense Interest-bearing deposits 2,542 4,531 5,438 9,664 Other borrowings 222 494 446 991 Subordinated debentures 1,529 1,462 3,067 2,836 -------- --------- -------- --------- Total interest expense 4,293 6,487 8,951 13,491 -------- --------- -------- --------- Net interest income 19,747 24,985 40,596 50,406 Provision for loan losses 32 20,140 1,748 29,190 -------- --------- -------- --------- Net interest income after provision for loan losses 19,715 4,845 38,848 21,216 Noninterest income Service charges and fees 2,931 3,231 5,858 6,109 Gain on sales of loans 582 401 1,117 595 Gain on investment securities 35 -- 35 -- Other noninterest income (loss) 53 (28) 105 149 -------- --------- -------- --------- Total noninterest income 3,601 3,604 7,115 6,853 Noninterest expense Salaries and employee benefits 7,354 6,974 14,601 14,489 Occupancy 2,635 2,703 5,180 5,507 FDIC and other insurance 699 937 1,482 2,180 Other real estate, net 2,059 2,602 2,431 3,038 General and administrative 4,022 1,764 7,384 5,391 -------- --------- -------- --------- Total noninterest expense 16,769 14,980 31,078 30,605 -------- --------- -------- --------- Income (loss) before taxes 6,547 (6,531) 14,885 (2,536) Taxes on income 2,430 (3,561) 5,557 (2,027) -------- --------- -------- --------- Net income (loss) $ 4,117 $ (2,970) $ 9,328 $ (509) -------- --------- -------- --------- Net income (loss) available to common shareholders $ 3,011 $ (4,027) $ 7,130 $ (2,619) ======== ========= ======== ========= Basic earnings per common share $ 0.15 $ (0.21) $ 0.37 $ (0.13) Diluted earnings per common share 0.15 (0.21) 0.37 (0.13) Common dividends declared per share -- -- -- --
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SOUTHWEST BANCORP, INC. Table 4 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY (Dollars in thousands) For the three months ended June 30, -------------------------------------------------------------------- 2012 2011 --------------------------------- --------------------------------- Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate ----------- -------- ---------- ----------- -------- ---------- Assets Noncovered loans $ 1,565,342 $ 21,125 5.43% $ 2,250,678 $ 28,551 5.09% Covered loans 31,853 583 7.36 47,427 927 7.84 Investment securities 339,435 2,139 2.53 266,344 1,864 2.81 Other interest-earning assets 202,040 193 82,898 130 ----------- -------- 0.38 ----------- -------- 0.63 Total interest-earning assets 2,138,670 24,040 4.52 2,647,347 31,472 4.77 Other assets 147,822 99,803 ----------- ----------- Total assets $ 2,286,492 $ 2,747,150 =========== =========== Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 120,648 $ 59 0.20% $ 112,942 $ 103 0.37% Money market accounts 356,758 234 0.26 490,559 582 0.48 Savings accounts 34,632 13 0.15 29,154 10 0.14 Time deposits 880,007 2,236 1,165,606 3,836 ----------- -------- 1.02 ----------- -------- 1.32 Total interest-bearing deposits 1,392,045 2,542 0.73 1,798,261 4,531 1.01 Other borrowings 59,754 222 1.49 87,991 494 2.25 Subordinated debentures 81,963 1,529 81,963 1,462 ----------- -------- 7.46 ----------- -------- 7.13 Total interest-bearing liabilities 1,533,762 4,293 1.13 6,487 1.32 -------- ---------- 1,968,215 -------- ---------- Noninterest-bearing demand deposits 387,057 369,700 Other liabilities 50,696 25,066 Shareholders' equity 314,977 384,169 ----------- ----------- Total liabilities and shareholders' equity $ 2,286,492 $ 2,747,150 =========== =========== Net interest income and spread $ 19,747 3.39% $ 24,985 3.45% ======== ========== ======== ========== Net interest margin (1) 3.71% 3.79% ========== ========== Average interest-earning assets to average interest-bearing liabilities 139.44% 134.50% =========== =========== (1) Net interest margin = annualized net interest income / average interest-earning assets
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SOUTHWEST BANCORP, INC. Table 5 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - YEAR-TO-DATE (Dollars in thousands) For the six months ended June 30, -------------------------------------------------------------------- 2012 2011 --------------------------------- --------------------------------- Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate ----------- -------- ---------- ----------- -------- ---------- Assets Noncovered loans $ 1,614,980 $ 43,848 5.46% $ 2,288,570 $ 58,206 5.13% Covered loans 33,951 1,237 7.33 49,449 1,811 7.39 Investment securities 327,180 4,085 2.51 261,391 3,610 2.79 Other interest-earning assets 191,839 377 87,770 270 ----------- -------- 0.40 ----------- -------- 0.62 Total interest-earning assets 2,167,950 49,547 4.60 2,687,180 63,897 4.80 Other assets 153,370 95,825 ----------- ----------- Total assets $ 2,321,320 $ 2,783,005 =========== =========== Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 120,626 $ 129 0.22% $ 112,693 $ 227 0.41% Money market accounts 375,289 520 0.28 490,931 1,259 0.52 Savings accounts 34,609 26 0.15 28,451 26 0.18 Time deposits 905,900 4,763 1,206,650 8,152 ----------- -------- 1.06 ----------- -------- 1.36 Total interest-bearing deposits 1,436,424 5,438 0.76 1,838,725 9,664 1.06 Other borrowings 57,301 446 1.57 89,088 991 2.24 Subordinated debentures 81,963 3,067 81,963 2,836 ----------- -------- 7.48 ----------- -------- 6.92 Total interest-bearing liabilities 1,575,688 8,951 1.14 13,491 1.35 -------- ---------- 2,009,776 -------- ---------- Noninterest-bearing demand deposits 383,008 367,444 Other liabilities 49,692 22,445 Shareholders' equity 312,932 383,340 ----------- ----------- Total liabilities and shareholders' equity $ 2,321,320 $ 2,783,005 =========== =========== Net interest income and spread $ 40,596 3.46% $ 50,406 3.45% ======== ========== ======== ========== Net interest margin (1) 3.77% 3.78% ========== ========== Average interest-earning assets to average interest-bearing liabilities 137.59% 133.71% =========== =========== (1) Net interest margin = annualized net interest income / average interest-earning assets
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SOUTHWEST BANCORP, INC. Table 6 UNAUDITED QUARTERLY SUMMARY LOAN DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- LOAN COMPOSITION Noncovered: Real estate mortgage: Commercial $ 931,239 $ 996,486 $ 1,028,561 $ 1,169,010 $ 1,262,753 $ 1,302,164 One-to-four family residential 74,390 76,287 80,375 85,272 87,407 87,286 Real estate construction Commercial 211,098 222,678 227,098 348,053 372,576 403,635 One-to-four family residential 4,184 3,814 4,987 25,527 26,400 26,758 Commercial 263,085 273,324 346,266 367,241 404,229 416,392 Installment and consumer: Guaranteed student loans 5,153 5,276 5,396 5,547 5,600 5,700 Other 33,555 31,766 33,190 32,946 34,335 36,493 ----------- ----------- ----------- ----------- ----------- ----------- Total noncovered loans, including held for sale 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428 Less allowance for loan losses (43,807) (45,023) (44,233) (64,698) (54,575) (61,285) ----------- ----------- ----------- ----------- ----------- ----------- Total noncovered loans, net $ 1,478,897 $ 1,564,608 $ 1,681,640 $ 1,968,898 $ 2,138,725 $ 2,217,143 =========== =========== =========== =========== =========== =========== Covered: Real estate mortgage: Commercial $ 21,472 $ 22,607 $ 23,686 $ 23,201 $ 26,976 $ 28,929 One-to-four family residential 5,432 5,766 7,072 7,378 8,113 8,192 Real estate construction Commercial 1,627 2,344 3,746 5,987 6,001 6,144 One-to-four family residential -- -- -- -- 172 281 Commercial 2,033 2,401 2,841 4,286 4,461 5,021 Installment and consumer: 148 196 270 357 430 550 ----------- ----------- ----------- ----------- ----------- ----------- Total covered loans 30,712 33,314 37,615 41,209 46,153 49,117 Less allowance for loan losses (91) (60) (451) -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total covered loans, net $ 30,621 $ 33,254 $ 37,164 $ 41,209 $ 46,153 $ 49,117 =========== =========== =========== =========== =========== =========== LOANS BY SEGMENT Oklahoma banking $ 597,506 $ 642,700 $ 688,592 $ 770,306 $ 834,189 $ 838,006 Texas banking 596,262 636,540 665,010 845,485 911,134 953,123 Kansas banking 198,404 202,050 238,468 252,302 260,431 272,685 Out of market 137,248 122,890 132,723 166,810 196,495 226,383 ----------- ----------- ----------- ----------- ----------- ----------- Subtotal 1,529,420 1,604,180 1,724,793 2,034,903 2,202,249 2,290,197 Secondary market 23,996 38,765 38,695 39,902 37,204 37,348 ----------- ----------- ----------- ----------- ----------- ----------- Total loans $ 1,553,416 $ 1,642,945 $ 1,763,488 $ 2,074,805 $ 2,239,453 $ 2,327,545 =========== =========== =========== =========== =========== =========== NONPERFORMING LOANS BY TYPE Construction & development $ 3,608 $ 3,768 $ 3,877 $ 68,554 $ 73,487 $ 68,183 Commercial real estate 4,932 6,821 4,667 56,234 60,857 47,986 Commercial 10,878 2,209 3,374 6,080 15,224 16,633 One-to-four family residential 1,125 1,508 1,491 1,706 1,457 2,634 Consumer 176 118 140 152 153 27 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans - noncovered $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463 =========== =========== =========== =========== =========== =========== NONPERFORMING LOANS BY SEGMENT Oklahoma banking $ 2,305 $ 2,864 $ 3,699 $ 14,932 $ 18,870 $ 13,443 Texas banking 11,526 2,258 83 95,191 91,449 87,122 Kansas banking 6,214 8,617 9,070 7,976 9,725 7,924 Out of market 674 685 697 14,627 31,134 26,974 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans - noncovered $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463 =========== =========== =========== =========== =========== =========== OTHER REAL ESTATE BY TYPE Construction & development $ 2,585 $ 3,542 $ 3,542 $ 38,927 $ 12,588 $ 6,304 Commercial real estate 14,129 14,854 15,464 24,364 16,300 23,890 One-to-four family residential 549 933 838 7,494 10,068 10,873 ----------- ----------- ----------- ----------- ----------- ----------- Total other real estate - noncovered $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067 =========== =========== =========== =========== =========== =========== OTHER REAL ESTATE BY SEGMENT Oklahoma banking $ 6,178 $ 6,273 $ 6,178 $ 8,709 $ 2,613 $ 4,616 Texas banking 9,162 9,846 9,846 35,270 17,398 18,652 Kansas banking 1,923 3,210 3,210 12,390 14,539 12,848 Out of market -- -- 610 14,416 4,406 4,951 ----------- ----------- ----------- ----------- ----------- ----------- Total other real estate - noncovered $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067 =========== =========== =========== =========== =========== =========== POTENTIAL PROBLEM LOANS BY TYPE Construction & development $ 25,563 $ 33,907 $ 43,607 $ 75,867 $ 111,032 $ 111,204 Commercial real estate 71,537 67,654 55,873 162,692 140,079 85,833 Commercial 12,753 23,506 32,477 37,027 38,850 19,940 One-to-four family residential 1,230 1,253 1,082 1,108 1,210 429 ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem loans - noncovered $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 =========== =========== =========== =========== =========== =========== POTENTIAL PROBLEM LOANS BY SEGMENT Oklahoma banking $ 37,320 $ 32,761 $ 27,481 $ 54,310 $ 42,565 $ 30,678 Texas banking 58,021 78,961 83,035 163,973 183,486 114,506 Kansas banking 3,118 1,893 836 14,530 11,289 19,472 Out of market 12,624 12,705 21,687 43,881 53,831 52,750 ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem loans - noncovered $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 =========== =========== =========== =========== =========== =========== Continued SOUTHWEST BANCORP, INC. Table 6 UNAUDITED QUARTERLY SUMMARY LOAN DATA Continued (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- OUT OF MARKET LOANS Net balance out of market loans: Arizona $ 39,449 $ 34,749 $ 26,372 $ 35,978 $ 49,977 $ 57,657 Iowa 23,022 23,130 26,494 26,626 26,695 26,759 Ohio 11,502 12,650 12,741 9,367 9,568 9,963 California 9,922 10,252 10,530 10,737 9,814 9,984 Kentucky 9,455 517 488 490 492 494 South Carolina 7,320 -- -- -- -- -- Tennessee 6,310 6,368 6,427 6,484 6,550 6,606 Florida 6,240 6,269 6,421 6,374 10,582 7,600 Louisiana 4,974 4,931 5,336 5,644 5,963 8,018 New Mexico 3,714 3,715 15,215 21,019 21,092 28,226 Other 15,340 20,309 22,699 44,091 55,762 71,076 ----------- ----------- ----------- ----------- ----------- ----------- Total out of market loans $ 137,248 $ 122,890 $ 132,723 $ 166,810 $ 196,495 $ 226,383 =========== =========== =========== =========== =========== =========== Nonperforming out of market loans: Florida $ 287 $ 293 $ 299 $ 305 $ 1,479 $ 1,479 Arizona 256 261 267 8,441 16,745 10,316 Colorado 131 131 131 746 4,909 880 New Mexico -- -- -- 5,135 5,135 11,827 Alabama -- -- -- -- 157 172 Other -- -- -- -- 2,709 2,300 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming out of market loans $ 674 $ 685 $ 697 $ 14,627 $ 31,134 $ 26,974 =========== =========== =========== =========== =========== =========== Potential problem out of market loans: Iowa $ 11,970 $ 12,035 $ -- $ -- $ -- $ -- New Mexico -- -- 11,542 11,589 11,635 -- Arizona -- -- 9,463 10,287 14,865 25,242 California 559 570 578 593 9,423 9,575 Florida 95 100 104 108 116 -- Colorado -- -- -- 17,034 13,500 17,933 Alabama -- -- -- 4,270 4,292 -- ----------- ----------- ----------- ----------- ----------- ----------- Total potential problem out of market loans $ 12,624 $ 12,705 $ 21,687 $ 43,881 $ 53,831 $ 52,750 =========== =========== =========== =========== =========== =========== ALLOWANCE ACTIVITY Balance, beginning of period $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285 $ 65,229 Charge offs 2,229 1,936 99,604 16,067 27,562 13,392 Recoveries 1,012 619 1,305 1,564 712 398 ----------- ----------- ----------- ----------- ----------- ----------- Net charge offs 1,217 1,317 98,299 14,503 26,850 12,994 Provision for loan losses 32 1,716 78,285 24,626 20,140 9,050 ----------- ----------- ----------- ----------- ----------- ----------- Balance, end of period $ 43,898 $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285 =========== =========== =========== =========== =========== =========== NET CHARGE OFFS BY TYPE Construction & development $ (85) $ (42) $ 41,513 $ 7,177 $ 10,847 $ 1,012 Commercial real estate 91 14 50,070 5,702 7,593 7,290 Commercial 1,228 1,211 6,434 1,469 7,999 4,337 One-to-four family residential (105) 123 1 55 165 58 Consumer 88 11 281 100 246 297 ----------- ----------- ----------- ----------- ----------- ----------- Total net charge offs by type $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994 =========== =========== =========== =========== =========== =========== NET CHARGE OFFS BY SEGMENT Oklahoma banking $ (204) $ 1,070 $ 13,210 $ 1,058 $ 1,442 $ 1,593 Texas banking 1,139 229 64,370 7,386 9,163 4,502 Kansas banking 324 166 8,872 361 1,791 372 Out of market (42) (148) 11,847 5,698 14,454 6,527 ----------- ----------- ----------- ----------- ----------- ----------- Total net charge offs by segment $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994 =========== =========== =========== =========== =========== =========== SOUTHWEST BANCORP, INC. Table 7 UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME (LOSS) BY SEGMENT Oklahoma banking $ 4,497 $ 3,158 $ (5,586) $ 7 $ 5,290 $ 3,435 Texas banking 1,435 3,161 (35,435) (6,455) 1,575 1,079 Kansas banking (424) 1,239 (7,533) (612) 971 131 Out of market 693 (570) (7,857) (1,947) (9,039) (924) ----------- ----------- ----------- ----------- ----------- ----------- Subtotal 6,201 6,988 (56,411) (9,007) (1,203) 3,721 Secondary market 124 286 144 90 127 (13) Other operations (2,208) (2,063) (1,994) (608) (1,894) (1,247) ----------- ----------- ----------- ----------- ----------- ----------- Net income (loss) $ 4,117 $ 5,211 $ (58,261) $ (9,525) $ (2,970) $ 2,461 =========== =========== =========== =========== =========== =========== PER SHARE DATA Basic earnings per common share $ 0.15 $ 0.21 $ (3.05) $ (0.54) $ (0.21) $ 0.07 Diluted earnings per common share 0.15 0.21 (3.05) (0.54) (0.21) 0.07 Book value per common share 12.64 12.50 12.28 15.37 15.89 16.02 Tangible book value per share* 12.29 12.15 11.93 15.02 15.54 15.67 COMMON STOCK Shares issued and outstanding 19,447,202 19,445,913 19,444,213 19,441,577 19,439,167 19,438,290 OTHER FINANCIAL DATA Investment securities $ 340,378 $ 333,860 $ 275,352 $ 269,599 $ 268,153 $ 258,436 Loans held for sale 23,996 38,765 38,695 39,902 37,204 37,348 Noncovered portfolio loans 1,498,708 1,570,866 1,687,178 1,993,694 2,156,096 2,241,080 Total noncovered loans 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428 Covered portfolio loans 30,712 33,314 37,615 41,209 46,153 49,117 Total assets 2,269,720 2,273,861 2,382,873 2,572,492 2,660,495 2,779,028 Total deposits 1,788,379 1,806,780 1,921,382 2,022,253 2,094,236 2,218,571 Other borrowings 68,477 55,139 56,479 86,583 96,682 85,332 Subordinated debentures 81,963 81,963 81,963 81,963 81,963 81,963 Total shareholders' equity 314,600 311,643 307,186 367,024 376,930 379,350 Mortgage servicing portfolio 305,465 301,378 295,492 285,886 283,083 281,271 INTANGIBLE ASSET DATA Goodwill $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 Core deposit intangible 2,785 2,906 3,030 3,155 3,285 3,420 Mortgage servicing rights 1,975 1,952 1,825 1,808 1,781 1,718 Nonmortgage servicing rights -- -- 2 3 3 3 ----------- ----------- ----------- ----------- ----------- ----------- Total intangible assets $ 11,571 $ 11,669 $ 11,668 $ 11,777 $ 11,880 $ 11,952 =========== =========== =========== =========== =========== =========== Intangible amortization expense $ 282 $ 296 $ 252 $ 226 $ 222 $ 361 ----------- ----------- ----------- ----------- ----------- ----------- DEPOSIT COMPOSITION Non-interest bearing demand $ 421,083 $ 395,141 $ 400,985 $ 388,365 $ 389,027 $ 369,013 Interest-bearing demand 119,929 119,759 105,905 98,270 124,346 112,731 Money market accounts 361,839 349,419 423,181 461,546 465,269 486,770 Savings accounts 35,610 34,679 33,406 31,319 29,586 28,440 Time deposits of $100,000 or more 431,317 464,876 487,907 551,914 570,116 669,817 Other time deposits 418,601 442,906 469,998 490,839 515,892 551,800 ----------- ----------- ----------- ----------- ----------- ----------- Total deposits** $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571 =========== =========== =========== =========== =========== =========== OFFICES AND EMPLOYEES FTE Employees 430 435 435 437 437 424 Branches 23 23 23 23 23 23 Loan production offices 2 2 2 2 2 2 Assets per employee $ 5,278 $ 5,227 $ 5,478 $ 5,887 $ 6,088 $ 6,554 *This is a Non-GAAP based financial measure. **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures) Total deposits $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571 Less: Brokered time deposits 12,238 13,307 14,974 46,838 52,407 122,124 Other brokered deposits 4,420 6,529 78,236 105,483 105,392 112,033 ----------- ----------- ----------- ----------- ----------- ----------- Non-brokered deposits $ 1,771,721 $ 1,786,944 $ 1,828,172 $ 1,869,932 $ 1,936,437 $ 1,984,414 ----------- ----------- ----------- ----------- ----------- ----------- Plus: Sweep repurchase agreements 43,477 30,139 31,482 40,305 30,636 27,214 ----------- ----------- ----------- ----------- ----------- ----------- Core funding $ 1,815,198 $ 1,817,083 $ 1,859,654 $ 1,910,237 $ 1,967,073 $ 2,011,628 =========== =========== =========== =========== =========== =========== Balance sheet amounts are as of period end unless otherwise noted. SOUTHWEST BANCORP, INC. Table 8 UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA (Dollars in thousands, except per share) ------------------------ -------------------------------------------------- 2012 2011 ------------------------ -------------------------------------------------- Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 ----------- ----------- ----------- ----------- ----------- ----------- PERFORMANCE RATIOS Return on average assets (annualized) 0.72% 0.89% (8.96)% (1.43)% (0.43)% 0.35% Return on average common equity (annualized) 4.92 6.84 (79.48) (13.42) (5.11) 1.81 Return on average tangible common equity (annualized)* 5.06 7.03 (81.35) (13.72) (5.22) 1.85 Net interest margin (annualized) 3.71 3.82 3.62 3.77 3.79 3.78 Effective tax rate 37.12 37.50 38.49 35.23 54.53 38.40 Efficiency ratio 71.82 58.73 164.47 64.07 52.40 54.50 NONPERFORMING ASSETS Noncovered: Nonaccrual loans $ 20,474 $ 14,324 $ 13,506 $ 132,268 $ 151,135 $ 134,934 90 days past due and accruing 245 100 43 458 43 529 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans 20,719 14,424 13,549 132,726 151,178 135,463 Other real estate 17,263 19,329 19,844 70,785 38,956 41,067 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 37,982 $ 33,753 $ 33,393 $ 203,511 $ 190,134 $ 176,530 =========== =========== =========== =========== =========== =========== Performing restructured $ 328 $ 1,700 $ 1,017 $ 1,026 $ 3,191 $ 2,166 ----------- ----------- ----------- ----------- ----------- ----------- Potential problem loans $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406 ----------- ----------- ----------- ----------- ----------- ----------- Covered: Nonaccrual loans $ 6,067 $ 7,015 $ 7,128 $ 7,065 $ 9,800 $ 9,809 90 days past due and accruing -- -- -- 610 -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming loans 6,067 7,015 7,128 7,675 9,800 9,809 Other real estate 3,825 4,694 4,529 5,350 3,806 4,016 ----------- ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 9,892 $ 11,709 $ 11,657 $ 13,025 $ 13,606 $ 13,825 =========== =========== =========== =========== =========== =========== Performing restructured $ 1,701 $ -- $ -- $ -- $ -- $ -- ----------- ----------- ----------- ----------- ----------- ----------- Potential problem loans $ 1,573 $ 553 $ 912 $ 2,015 $ 2,731 $ 3,444 ----------- ----------- ----------- ----------- ----------- ----------- ASSET QUALITY RATIOS Net loan charge-offs to average portfolio loans (annualized) 0.31% 0.32% 19.78% 2.70% 4.76% 2.25% Noncovered: Nonperforming assets to portfolio loans and other real estate 2.51% 2.12% 1.96% 9.86% 8.66% 7.74% Nonperforming loans to portfolio loans 1.38 0.92 0.80 6.66 7.01 6.04 Allowance for loan losses to portfolio loans 2.92 2.87 2.62 3.25 2.53 2.73 Allowance for loan losses to nonperforming loans 211.43 312.14 326.47 48.75 36.10 45.24 Covered: Nonperforming assets to portfolio loans and other real estate 28.64% 30.81% 27.66% 27.98% 27.23% 26.02% Nonperforming loans to portfolio loans 19.75 21.06 18.95 18.62 21.23 19.97 Allowance for loan losses to portfolio loans 0.30 0.18 1.20 -- -- -- Allowance for loan losses to nonperforming loans 1.50 0.86 6.33 -- -- -- CAPITAL RATIOS Average total shareholders' equity to average assets 13.78% 13.19% 14.14% 14.39% 13.98% 13.57% Leverage ratio 16.84 16.20 14.50 16.47 16.25 15.95 Tier 1 capital to risk-weighted assets 22.24 21.21 19.51 19.54 18.93 18.49 Total capital to risk-weighted assets 23.52 22.49 20.78 20.81 20.20 19.77 Tangible common equity to tangible assets*** 10.56 10.42 9.76 11.38 11.38 10.99 REGULATORY CAPITAL DATA Tier I capital $ 382,262 $ 378,949 $ 374,552 $ 433,628 $ 444,106 $ 447,803 Total capital 404,251 401,808 398,945 461,929 473,950 478,713 Total risk adjusted assets 1,719,057 1,786,282 1,920,075 2,219,271 2,346,596 2,421,752 Average total assets 2,269,639 2,339,784 2,562,094 2,633,000 2,733,561 2,807,518 *This is a Non-GAAP based financial measure. ***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure) Total shareholders' equity $ 314,600 $ 311,643 $ 307,186 $ 367,024 $ 376,930 $ 379,350 Less: Goodwill 6,811 6,811 6,811 6,811 6,811 6,811 Preferred stock 68,837 68,644 68,455 68,268 68,084 67,902 ----------- ----------- ----------- ----------- ----------- ----------- Tangible common equity $ 238,952 $ 236,188 $ 231,920 $ 291,945 $ 302,035 $ 304,637 =========== =========== =========== =========== =========== =========== Total assets $ 2,269,720 $ 2,273,861 $ 2,382,873 $ 2,572,492 $ 2,660,495 $ 2,779,028 Less goodwill 6,811 6,811 6,811 6,811 6,811 6,811 ----------- ----------- ----------- ----------- ----------- ----------- Tangible assets $ 2,262,909 $ 2,267,050 $ 2,376,062 $ 2,565,681 $ 2,653,684 $ 2,772,217 =========== =========== =========== =========== =========== =========== Tangible common equity to tangible assets 10.56% 10.42% 9.76% 11.38% 11.38% 10.99% Balance sheet amounts and ratios are as of period end unless otherwise noted.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Southwest Bancorp, Inc.
(Logo: http://media.primezone.com/cache/13093/int/8863.jpg)
CONTACT: Rick Green
President & CEO
Priscilla J. Barnes
Senior EVP & COO
(405) 372-2230
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