Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP),
("Southwest"), today reported a net loss available to common
shareholders of ($59.3) million, or ($3.05) per diluted share for
the fourth quarter of 2011, compared to net income available to
common shareholders of $3.3 million, or $0.17 per diluted share for
the fourth quarter of 2010. Fourth quarter results in 2011 include
the pretax loss of ($101.0) million resulting from the sale of
nonperforming assets and potential problem loans.
The net loss available to common shareholders for the year ended
December 31, 2011 was ($72.5) million, or ($3.73) per diluted
share, compared to net income available to common shareholders for
the year ended December 31, 2010 of $12.8 million, or $0.71 per
diluted share.
"We ended the year with successful sales of approximately $300
million of loans and other real estate," Rick Green, President and
CEO, stated. "Approximately $170 million of the total were
nonperforming assets. The remaining assets sold were classified
worse than "pass" in our credit risk system or were pass assets
related to other assets sold. These sales immediately and
substantially reduced our nonperforming assets and potential
problem loans. We believe this action is a major step toward
achieving our goals."
Background
"We began 2011 with continued high levels of nonperforming and
potential problem assets. In the spring of 2011, we reorganized and
strengthened our credit, loan review and workout functions. During
the year, we had success in resolving credits, but downgrades and
new problem assets, mainly driven by real estate appraisal
decreases, kept our total levels of unresolved credits
unsatisfactorily high. The levels significantly affected our
earnings.
"Faced with these facts, management and the Board of Directors
considered our alternatives for bringing nonperforming and
potential problem assets to healthier levels:
Do we take action to eliminate the pool of higher risk loans by
selling a substantial amount of nonperforming and potential problem
loans to immediately reduce the risk and improve our future
prospects?
or
Do we continue to "work out" these loans over some unknown
period and with uncertain earnings impact?"
Decision
"Southwest's Board of Directors carefully considered the
potential costs and benefits to Southwest and its shareholders, in
consultation with financial and legal advisors and management. The
Board also considered the substantial regulatory capital cushions
which made significant near-term sales possible. Based on
their analysis, the Board concluded that sale of assets in the
near-term was in the best interests of Southwest's
shareholders. The sales were completed in December 2011."
Result
"Although the result was a loss for 2011, we start 2012 with
significantly improved credit quality and regulatory capital ratios
that exceed "well capitalized" standards.
"We are looking forward to 2012. With our improved balance
sheet, we will continue to focus on our commercial banking
operations serving our primary markets in Oklahoma, Texas, and
Kansas. We have renewed strength in our credit and lending
areas and plan to stabilize loan revenue by generating new loans
prudently and profitably."
"Southwest is driven to return to sustained profitability, to
resume payment of dividends on trust preferred securities,
preferred stock, and common stock, and to once again produce
reliable and attractive returns for our shareholders."
Key items for the quarter were as follows:
Credit Quality (noncovered assets):
- During the fourth quarter, Southwest sold nonperforming loans,
potential problem loans, other related loans and other real estate
with an aggregate carrying value, before transfer to assets held
for sale, of $301.6 million, of which $169.1 million were
nonperforming assets. Southwest recognized $88.6 million in
net charge-offs as a result of the sales transactions. The loan
sales caused Southwest to increase the provision for loan losses in
the quarter by $74.9 million.
- Nonperforming loans were $13.5 million or 0.80% of portfolio
loans as of December 31, 2011, a decrease of $119.2 million (90%)
from $132.7 million at September 30, 2011. Excluding the loan sale,
nonperforming loans would have decreased by $7.4 million in the
fourth quarter of 2011. The allowance for loan losses to
nonperforming loans was 326.47% as of December 31, 2011 compared to
48.75% as of September 30, 2011. Nonperforming assets were
$33.4 million or 1.96% of portfolio loans and other real estate as
of December 31, 2011, a decrease of $170.1 million (84%) from
$203.5 million or 9.86% of portfolio loans and other real estate as
of September 30, 2011.
- Potential problem loans were $133.0 million as of December 31,
2011, a decrease of $143.7 million (52%) from $276.7 million as of
September 30, 2011. Excluding the loan sale, potential problem
loans would have decreased by $13.2 million in the fourth quarter
of 2011.
- The allowance for loan losses to portfolio loans was 2.62% as
of December 31, 2011 compared to 3.25% as of September 30,
2011. The decrease was primarily due to the loan sale and the
related reduction in nonperforming and potential problem loans
discussed above.
- The provision for loan losses was $77.8 million for the fourth
quarter of 2011, while net charge-offs were $98.3 million. For
the third quarter of 2011, the provision for loan losses and net
charge-offs were $24.6 million and $14.5 million,
respectively. Excluding the loan sale impact, the provision
for loan losses and net charge-offs for the fourth quarter of 2011
would have been approximately $6.2 million and $9.7 million,
respectively.
Capital Position and Liquidity:
- As of December 31, 2011, Southwest and each of its banking
subsidiaries met the criteria for regulatory classification as
"well-capitalized". Southwest's total regulatory capital was
$398.9 million, for a total risk-based capital ratio of 20.78%, and
Tier 1 capital was $374.6 million, for a Tier 1 risk-based capital
ratio of 19.51%. Southwest's capital exceeded the minimum to
be classified as "well-capitalized" by $206.9
million. Stillwater National Bank, Southwest's principal
banking subsidiary, had total regulatory capital of $323.4 million,
for a total risk-based capital ratio of 18.83%, and Tier 1 capital
of $286.7 million, for a Tier 1 risk-based capital ratio of
16.69%. Stillwater National Bank exceeded the minimum to be
classified as "well-capitalized" by $108.8
million. Designation as a well-capitalized institution under
regulations does not constitute a recommendation or endorsement by
Federal bank regulators. Stillwater National Bank's leverage
and total risk-based capital ratios also exceeded the individual
minimum ratios agreed to with the Comptroller of the Currency of
8.50% and 12.50%.
- In July 2011, Southwest determined to defer future payments of
interest on its debentures and dividends on related trust preferred
securities and to defer payments of dividends on its Series B
Preferred Securities issued under the U.S. Treasury Department's
Capital Purchase Program. The terms of the debentures and
trust preferred securities allow Southwest to increase or decrease
the deferral period without default or penalty.
- As of December 31, 2011, the holding company has $29.0 million
in available cash.
Financial Overview
Condition: Total assets were $2.4 billion
and total loans were $1.8 billion at December 31, 2011, a decrease
of 16% and 27%, respectively, from December 31, 2010.
At December 31, 2011 the allowance for loan losses was $44.7
million, a decrease of 32% from December 31, 2010.
Total core funding, which includes all non-brokered time
deposits and sweep repurchase agreements, comprised 94% of total
funding, compared to 86% at December 31, 2010. Wholesale
funding, including FHLB borrowings, federal funds purchased, and
brokered deposits, accounted for 6% of total funding at December
31, 2011, compared to 14% at December 31, 2010. Please see
Table 7 for details on these non-GAAP financial measures.
Year-to-date Results:
Summary: The net loss available to common
shareholders was ($72.5) million as of December 31, 2011, compared
to net income available to common shareholders of $12.8 million as
of December 31, 2010. The $85.3 million decrease in our net
income available to common shareholders from 2010 is the result of
a $96.5 million increase in the provision for loan losses, a $26.6
million increase in noninterest expense, an $11.0 million decrease
in net interest income, and a $4.5 million decrease in noninterest
income, offset in part by a $53.4 million decrease in income tax
expense.
On June 28, 2011, Southwest entered into a settlement agreement
with the Oklahoma State Tax Commission (the "Commission") with
respect to certain claims by the Commission. Southwest had
previously recorded reserves against these claims. As a result
of the settlement agreement, Southwest paid the sum of $4.8 million
to the Commission and recorded a gain of $2.6 million, net of tax
effect, upon reversal of excess reserves.
The year-to-date calculated effective tax rate is 39.00% and
results in a tax benefit.
Net Interest Income: Net
interest income totaled $96.3 million for 2011, compared to $107.3
million for 2010, a decrease of $11.0 million, or
10%. Year-to-date net interest margin was 3.74%, compared to
3.67% for 2010. Included in 2011 year-to-date net interest
income was a net reduction of $1.6 million resulting from interest
reversals on nonaccrual loans, which includes reversals relating to
the nonaccrual loans sold in the fourth quarter, offset by the
year-to-date adjustments of the discount accretion on loans and the
loss share receivable. Included in 2010 year-to-date net
interest income was $1.0 million of net recoveries from the
resolution of nonperforming loans and additional discount accretion
on loans and loss share receivable, offset in part by interest
reversals on nonaccrual loans. The net effects of these
adjustments on net interest margin were a 6 basis point decrease
and a 3 basis point increase, respectively.
Provision for Loan Losses and Net Charge
Offs: The provision for loan losses totaled $132.1
million for 2011, compared to $35.6 million for 2010. Net
charge-offs totaled $152.6 million, or 7.01% (annualized) of
average portfolio loans year-to-date as of December 31, 2011,
compared to $32.7 million, or 1.29% (annualized) of average
portfolio loans as of December 31, 2010. Excluding the fourth
quarter loan sales impact, the provision for loan losses and net
charge-offs would have been approximately $60.0 million and $64.1
million, respectively.
Noninterest Income: Noninterest income
totaled $14.0 million for 2011, compared to $18.6 million for
2010. The decrease in noninterest income was primarily the
result of a $2.7 million decline in gain on investment securities,
a $1.1 million decline in gain on sale of loans, mainly from
declined student loan sales, a $0.5 million decline in other
noninterest income, and a $0.3 million decline in service charges
and fees.
Noninterest Expense: Noninterest expense
totaled $90.2 million for 2011, compared to $63.6 million for 2010.
The increase consists of a $28.6 million increase in other
real estate expense, which includes the fair value adjustment for
the assets sold in the fourth quarter, and a $0.3 million increase
in general and administrative expense, offset in part by a $1.9
million decrease in FDIC and other insurance expense and a $0.4
million decrease in occupancy expense.
Fourth Quarter Results:
Summary: For the fourth quarter of 2011,
Southwest incurred a net loss available to common shareholders of
($59.3) million, compared to net income available to common
shareholders of $3.3 million in the fourth quarter of 2010 and a
net loss available to common shareholders of ($10.6) million in the
third quarter of 2011. The decrease from the fourth quarter of
2010 was the result of a $71.0 million increase in the provision
for loan losses, a $25.1 million increase in noninterest expense, a
$5.1 million decrease in net interest income, and a $0.5 million
decrease in noninterest income, offset in part by a $39.1 million
decrease in income taxes. The decrease from the third quarter
of 2011 was the result of a $53.7 million increase in the provision
for loan losses, a $24.2 million increase in noninterest expense,
and a $2.1 million decrease in net interest income, offset in part
by a $31.3 million decrease in income taxes.
For the fourth quarter of 2011, the calculated effective tax
rate is 38.49% and results in a tax benefit.
Net Interest Income: Net
interest income totaled $21.9 million for the fourth quarter of
2011, compared to $27.0 million for the fourth quarter of 2010, a
decrease of $5.1 million, or 19%, and $24.0 million for the third
quarter of 2011, a decrease of $2.1 million, or 9%. Net
interest margin was 3.62% for the fourth quarter of 2011, compared
to 3.82% for the fourth quarter of 2010 and 3.77% for the third
quarter of 2011. Included in the fourth quarter of 2011 net
interest margin was a net reduction of $1.2 million, resulting from
interest reversals on nonaccrual loans, primarily from the fourth
quarter loan sale, offset by the quarterly adjustments of the
discount accretion on loans and the loss share
receivable. Included in the fourth quarter of 2010 was a net
recovery of $0.5 million from the resolution of nonperforming loans
and the quarterly adjustment of the discount accretion on loans and
the loss share receivable. Included in the third quarter of
2011 was a net reduction of $0.3 million resulting from interest
reversals on nonaccrual loans offset by the quarterly adjustments
of the discount accretion on loans and the loss share
receivable. The net effects of these adjustments on the net
interest margins were a 19 basis point decrease, a 7 basis point
increase, and a 5 basis point decrease for each quarter,
respectively.
Provision for Loan Losses and Net
Charge-Offs: The provision for loan losses totaled
$78.3 million for the fourth quarter of 2011, compared to $7.3
million for the fourth quarter of 2010 and $24.6 million for the
third quarter of 2011. Net charge-offs totaled $98.3 million,
or 19.78% (annualized) of average portfolio loans for the fourth
quarter of 2011, compared to $14.5 million, or 2.35% (annualized)
of average portfolio loans for the fourth quarter of 2010 and $14.5
million, or 2.70% (annualized) of average portfolio loans for the
third quarter of 2011. Excluding the fourth quarter loan sales
impact, the provision for loan losses and net charge-offs would
have been approximately $6.2 million and $9.7 million,
respectively.
Noninterest Income: Noninterest income
totaled $3.6 million for the fourth quarter of 2011, compared to
$4.1 million for the fourth quarter of 2010 and $3.6 million for
the third quarter of 2011. The decrease in noninterest income
from the fourth quarter of 2010 was primarily the result of a $0.3
million decrease in service charges and fees.
Noninterest Expense: Noninterest expense
totaled $41.9 million for the fourth quarter of 2011, compared to
$16.8 million for the fourth quarter of 2010 and $17.7 million for
the third quarter of 2011. The increase from fourth quarter
2010 consisted of a $25.1 million increase in other real estate
expense, which includes the loss on assets sold during the quarter
of $23.6 million, and a $0.4 million increase in general and
administrative expense, offset in part by a $0.5 million decrease
in FDIC and other insurance expense. The increase from third
quarter 2011 consisted of a $24.9 million increase in other real
estate expense, offset in part by a $0.6 million decrease in
general and administrative expense.
Southwest Bancorp and
Subsidiaries
Southwest is the bank holding company for Stillwater National
Bank and Trust Company ("Stillwater National") and Bank of Kansas.
Through its subsidiaries, Southwest offers commercial and consumer
lending, deposit and investment services, specialized cash
management, and other financial services from offices in Oklahoma,
Texas, and Kansas, and on the Internet, through SNB
DirectBanker®. We were organized in 1981 as the holding
company for Stillwater National, which was chartered in
1894. At December 31, 2011 we had total assets of $2.4
billion, deposits of $1.9 billion, and shareholders' equity of
$307.2 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 December 31, 2011, approximately $614.7
million, or 36%, 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 December 31, 2011 approximately $1.3 billion, or
73%, of our noncovered loans were commercial real estate mortgage
and construction loans, including $381.1 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:
- 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 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 December 31, 2011 through the
date its financial statements are filed with the Securities and
Exchange Commission. The December 31, 2011 financial
statements included in this release will be adjusted if necessary
to properly reflect the impact of subsequent events on estimates
used to prepare those statements.
Financial
Tables |
|
|
Unaudited Financial Highlights |
Table 1 |
|
|
Unaudited Consolidated Statements of
Financial Condition |
Table 2 |
|
|
Unaudited Consolidated Statements of
Operations |
Table 3 |
|
|
Unaudited Average Balances, Yields, and
Rates-Quarterly |
Table 4 |
|
|
Unaudited Average Balances, Yields, and
Rates-Year-to-Date |
Table 5 |
|
|
Unaudited Quarterly Summary Loan
Data |
Table 6 |
|
|
Unaudited Quarterly Summary Financial
Data |
Table 7 |
|
|
Unaudited Quarterly Supplemental Analytical
Data |
Table 8 |
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
|
Table 1 |
UNAUDITED FINANCIAL
HIGHLIGHTS |
|
|
|
|
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
Fourth
Quarter |
Third
Quarter |
QUARTERLY
HIGHLIGHTS |
|
|
% |
|
% |
|
2011 |
2010 |
Change |
2011 |
Change |
Operations |
|
|
|
|
|
Net interest income |
$ 21,901 |
$ 26,970 |
(19)% |
$ 24,025 |
(9)% |
Provision for loan losses |
78,285 |
7,265 |
978 |
24,626 |
218 |
Noninterest income |
3,576 |
4,089 |
(13) |
3,589 |
-- |
Noninterest expense |
41,903 |
16,811 |
149 |
17,693 |
137 |
Income (loss) before taxes |
(94,711) |
6,983 |
(1,456) |
(14,705) |
544 |
Taxes on income |
(36,450) |
2,675 |
(1,463) |
(5,180) |
604 |
Net income (loss) |
(58,261) |
4,308 |
(1,452) |
(9,525) |
512 |
Net income (loss) available to
common shareholders |
(59,340) |
3,257 |
(1,922) |
(10,589) |
460 |
Diluted earnings per share |
(3.05) |
0.17 |
(1,894) |
(0.54) |
465 |
Balance Sheet |
|
|
|
|
|
Total assets |
2,382,873 |
2,820,541 |
(16) |
2,572,492 |
(7) |
Loans held for sale |
38,695 |
35,194 |
10 |
39,902 |
(3) |
Noncovered portfolio loans |
1,687,178 |
2,331,293 |
(28) |
1,933,694 |
(13) |
Covered portfolio loans |
37,615 |
53,628 |
(30) |
41,209 |
(9) |
Total deposits |
1,921,382 |
2,252,728 |
(15) |
2,022,253 |
(5) |
Total shareholders' equity |
307,186 |
377,812 |
(19) |
367,024 |
(16) |
Book value per common share |
12.28 |
15.97 |
(23) |
15.37 |
(20) |
Key Ratios |
|
|
|
|
|
Net interest margin |
3.62% |
3.82% |
|
3.77% |
|
Efficiency ratio |
164.47 |
54.13 |
|
64.07 |
|
Total capital to risk-weighted
assets |
20.78 |
19.06 |
|
20.81 |
|
Nonperforming loans to portfolio loans -
noncovered |
0.80 |
4.59 |
|
6.66 |
|
Shareholders' equity to total
assets |
12.89 |
13.40 |
|
14.27 |
|
Tangible common equity to tangible
assets* |
9.76 |
10.78 |
|
11.38 |
|
Return on average assets
(annualized) |
(8.96) |
0.59 |
|
(1.43) |
|
Return on average common equity
(annualized) |
(79.48) |
4.11 |
|
(13.42) |
|
Return on average tangible common equity
(annualized)** |
(81.35) |
4.21 |
|
(13.72) |
|
|
YEAR-TO-DATE HIGHLIGHTS |
Twelve
Months |
|
|
|
|
|
% |
|
|
|
2011 |
2010 |
Change |
|
|
Operations |
|
|
|
|
|
Net interest income |
$ 96,332 |
$ 107,331 |
(10)% |
|
|
Provision for loan losses |
132,101 |
35,560 |
271 |
|
|
Noninterest income |
14,018 |
18,564 |
(24) |
|
|
Noninterest expense |
90,201 |
63,633 |
42 |
|
|
Income (loss) before taxes |
(111,952) |
26,702 |
(519) |
|
|
Taxes on income |
(43,657) |
9,738 |
(548) |
|
|
Net income (loss) |
(68,295) |
16,964 |
(503) |
|
|
Net income (loss) available to
common shareholders |
(72,548) |
12,777 |
(668) |
|
|
Diluted earnings per share |
(3.73) |
0.71 |
(625) |
|
|
Balance Sheet |
|
|
|
|
|
Total assets |
2,382,873 |
2,820,541 |
(16) |
|
|
Loans held for sale |
38,695 |
35,194 |
10 |
|
|
Noncovered portfolio loans |
1,687,178 |
2,331,293 |
(28) |
|
|
Covered portfolio loans |
37,615 |
53,628 |
(30) |
|
|
Total deposits |
1,921,382 |
2,252,728 |
(15) |
|
|
Total shareholders' equity |
307,186 |
377,812 |
(19) |
|
|
Book value per common share |
12.28 |
15.97 |
(23) |
|
|
Key Ratios |
|
|
|
|
|
Net interest margin |
3.74 % |
3.67 % |
|
|
|
Efficiency ratio (GAAP-based) |
81.74 |
50.54 |
|
|
|
Total capital to risk-weighted
assets |
20.78 |
19.06 |
|
|
|
Nonperforming loans to portfolio loans -
noncovered |
0.80 |
4.59 |
|
|
|
Shareholders' equity to total
assets |
12.89 |
13.40 |
|
|
|
Tangible common equity to tangible
assets* |
9.76 |
10.78 |
|
|
|
Return on average assets |
(2.53) |
0.57 |
|
|
|
Return on average common
equity |
(23.40) |
4.37 |
|
|
|
Return on average tangible common
equity** |
(23.93) |
4.48 |
|
|
|
|
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. |
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
Table 2 |
UNAUDITED CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
December 31, |
December 31, |
|
2011 |
2010 |
Assets |
|
|
Cash and due from banks |
$ 30,247 |
$ 26,478 |
Interest-bearing deposits |
199,642 |
41,018 |
Cash and cash equivalents |
229,889 |
67,496 |
Securities held to maturity (fair values of
$15,885, $14,029, respectively) |
15,252 |
14,304 |
Securities available for sale (amortized cost
of $253,869, $246,649, respectively) |
260,100 |
248,221 |
Loans held for sale |
38,695 |
35,194 |
Noncovered loans receivable |
1,687,178 |
2,331,293 |
Less: Allowance for loan
losses |
(44,233) |
(65,229) |
Net noncovered loans
receivable |
1,642,945 |
2,266,064 |
Covered loans receivable (includes loss share
of $10,073, $14,370, respectively) |
37,615 |
53,628 |
Less: Allowance for loan
losses |
(451) |
-- |
Net covered loans receivable |
37,164 |
53,628 |
Net loans receivable |
1,680,109 |
2,319,692 |
Accrued interest receivable |
7,176 |
8,590 |
Income tax receivable |
28,666 |
-- |
Premises and equipment, net |
22,700 |
23,772 |
Noncovered other real estate |
19,844 |
37,722 |
Covered other real estate |
4,529 |
4,187 |
Goodwill |
6,811 |
6,811 |
Other intangible assets, net |
4,857 |
5,371 |
Other assets |
64,245 |
49,181 |
Total assets |
$ 2,382,873 |
$ 2,820,541 |
|
|
|
Liabilities |
|
|
Deposits: |
|
|
Noninterest-bearing demand |
$ 400,985 |
$ 377,182 |
Interest-bearing demand |
105,905 |
92,584 |
Money market accounts |
423,181 |
495,253 |
Savings accounts |
33,406 |
26,665 |
Time deposits of $100,000 or
more |
487,907 |
694,565 |
Other time deposits |
469,998 |
566,479 |
Total deposits |
1,921,382 |
2,252,728 |
Accrued interest payable |
3,689 |
1,577 |
Income tax payable |
-- |
2,878 |
Other liabilities |
12,174 |
8,981 |
Other borrowings |
56,479 |
94,602 |
Subordinated debentures |
81,963 |
81,963 |
Total liabilities |
2,075,687 |
2,442,729 |
|
|
|
Shareholders'
equity |
|
|
Serial preferred stock; 2,000,000 shares
authorized; 70,000 shares issued and outstanding |
68,455 |
67,724 |
Common stock -- $1 par value; 40,000,000
shares authorized; 19,444,213, 19,421,900, shares issued and
outstanding, respectively |
19,444 |
19,422 |
Additional paid-in capital |
98,932 |
98,894 |
Retained earnings |
118,244 |
190,793 |
Accumulated other comprehensive
income |
2,111 |
979 |
Total shareholders' equity |
307,186 |
377,812 |
Total liabilities and shareholders'
equity |
$ 2,382,873 |
$ 2,820,541 |
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
Table 3 |
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
|
|
|
|
For the three
months |
For the twelve
months |
|
ended December
31, |
ended December
31, |
|
2011 |
2010 |
2011 |
2010 |
Interest income |
|
|
|
|
Loans |
$ 25,333 |
$ 32,831 |
$ 113,223 |
$ 133,918 |
Investment securities |
1,584 |
1,724 |
6,973 |
8,148 |
Other interest-earning assets |
148 |
131 |
549 |
741 |
Total interest income |
27,065 |
34,686 |
120,745 |
142,807 |
|
|
|
|
|
Interest expense |
|
|
|
|
Interest-bearing deposits |
3,318 |
5,920 |
16,793 |
28,267 |
Other borrowings |
339 |
514 |
1,799 |
2,079 |
Subordinated debentures |
1,507 |
1,282 |
5,821 |
5,130 |
Total interest expense |
5,164 |
7,716 |
24,413 |
35,476 |
|
|
|
|
|
Net interest income |
21,901 |
26,970 |
96,332 |
107,331 |
|
|
|
|
|
Provision for loan losses |
78,285 |
7,265 |
132,101 |
35,560 |
|
|
|
|
|
Net interest income (loss) after provision
for loan losses |
(56,384) |
19,705 |
(35,769) |
71,771 |
|
|
|
|
|
Noninterest
income |
|
|
|
|
Service charges and fees |
2,849 |
3,144 |
12,075 |
12,404 |
Gain on sales of loans |
637 |
682 |
1,658 |
2,736 |
Gain on investment securities |
-- |
15 |
-- |
2,661 |
Other noninterest income |
90 |
248 |
285 |
763 |
Total noninterest income |
3,576 |
4,089 |
14,018 |
18,564 |
|
|
|
|
|
Noninterest
expense |
|
|
|
|
Salaries and employee benefits |
7,657 |
7,516 |
29,880 |
29,916 |
Occupancy |
2,614 |
2,717 |
10,815 |
11,171 |
FDIC and other insurance |
858 |
1,333 |
3,862 |
5,788 |
Other real estate, net |
26,369 |
1,255 |
30,852 |
2,218 |
General and administrative |
4,405 |
3,990 |
14,792 |
14,540 |
Total noninterest expense |
41,903 |
16,811 |
90,201 |
63,633 |
Income (loss) before taxes |
(94,711) |
6,983 |
(111,952) |
26,702 |
Taxes on income |
(36,450) |
2,675 |
(43,657) |
9,738 |
Net income (loss) |
$ (58,261) |
$ 4,308 |
$ (68,295) |
$ 16,964 |
Net income (loss) available to common
shareholders |
$ (59,340) |
$ 3,257 |
$ (72,548) |
$ 12,777 |
|
|
|
|
|
Basic earnings per common share |
$ (3.05) |
$ 0.17 |
$ (3.73) |
$ 0.71 |
Diluted earnings per common share |
(3.05) |
0.17 |
(3.73) |
0.71 |
Common dividends declared per
share |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
|
|
Table 4 |
UNAUDITED AVERAGE
BALANCES, YIELDS, AND RATES - QUARTERLY |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended December 31, |
|
2011 |
2010 |
|
Average |
|
Average |
Average |
|
Average |
|
Balance |
Interest |
Yield/Rate |
Balance |
Interest |
Yield/Rate |
Assets |
|
|
|
|
|
|
Noncovered loans |
$ 1,973,320 |
$ 24,473 |
4.92% |
$ 2,417,584 |
$ 31,933 |
5.24% |
Covered loans |
39,010 |
860 |
8.75 |
58,755 |
898 |
6.06 |
Investment securities |
264,011 |
1,584 |
2.38 |
253,664 |
1,724 |
2.70 |
Other interest-earning assets |
123,532 |
148 |
0.48 |
71,638 |
131 |
0.73 |
Total interest-earning assets |
2,399,873 |
27,065 |
4.47 |
2,801,641 |
34,686 |
4.91 |
Other assets |
178,904 |
|
|
81,735 |
|
|
Total assets |
$ 2,578,777 |
|
|
$ 2,883,376 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
Interest-bearing demand deposits |
$ 98,167 |
$ 53 |
0.21% |
$ 85,967 |
$ 85 |
0.39% |
Money market accounts |
471,059 |
388 |
0.33 |
508,110 |
885 |
0.69 |
Savings accounts |
32,032 |
12 |
0.15 |
25,885 |
17 |
0.26 |
Time deposits |
994,519 |
2,865 |
1.14 |
1,316,536 |
4,933 |
1.49 |
Total interest-bearing deposits |
1,595,777 |
3,318 |
0.82 |
1,936,498 |
5,920 |
1.21 |
Other borrowings |
70,952 |
339 |
1.90 |
96,267 |
514 |
2.12 |
Subordinated debentures |
81,963 |
1,507 |
7.35 |
81,963 |
1,282 |
6.26 |
Total interest-bearing liabilities |
1,748,692 |
5,164 |
1.17 |
2,114,728 |
7,716 |
1.45 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
400,435 |
|
|
367,761 |
|
|
Other liabilities |
65,093 |
|
|
19,252 |
|
|
Shareholders' equity |
364,557 |
|
|
381,635 |
|
|
Total liabilities and shareholders'
equity |
$ 2,578,777 |
|
|
$ 2,883,376 |
|
|
|
|
|
|
|
|
|
Net interest income and spread |
|
$ 21,901 |
3.30% |
|
$ 26,970 |
3.46% |
Net interest margin (1) |
|
|
3.62% |
|
|
3.82% |
Average interest-earning assets to
average interest-bearing liabilities |
137.24% |
|
|
132.48% |
|
|
|
|
|
|
|
|
|
(1) Net interest margin =
annualized net interest income / average interest-earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
|
|
Table 5 |
UNAUDITED AVERAGE
BALANCES, YIELDS, AND RATES - YEAR-TO-DATE |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months
ended December 31, |
|
2011 |
2010 |
|
Average |
|
Average |
Average |
|
Average |
|
Balance |
Interest |
Yield/Rate |
Balance |
Interest |
Yield/Rate |
Assets |
|
|
|
|
|
|
Noncovered loans |
$ 2,168,458 |
$ 109,839 |
5.07% |
$ 2,504,684 |
$ 129,314 |
5.16% |
Covered loans |
45,449 |
3,384 |
7.45 |
68,758 |
4,604 |
6.70 |
Investment securities |
264,006 |
6,973 |
2.64 |
245,411 |
8,148 |
3.32 |
Other interest-earning assets |
96,753 |
549 |
0.57 |
103,792 |
741 |
0.71 |
Total interest-earning assets |
2,574,666 |
120,745 |
4.69 |
2,922,645 |
142,807 |
4.89 |
Other assets |
121,416 |
|
|
76,099 |
|
|
Total assets |
$ 2,696,082 |
|
|
$ 2,998,744 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
Interest-bearing demand deposits |
$ 108,808 |
$ 382 |
0.35% |
$ 98,589 |
$ 468 |
0.47% |
Money market accounts |
483,373 |
2,154 |
0.45 |
508,583 |
3,911 |
0.77 |
Savings accounts |
29,862 |
49 |
0.16 |
25,609 |
64 |
0.25 |
Time deposits |
1,117,483 |
14,208 |
1.27 |
1,479,287 |
23,824 |
1.61 |
Total interest-bearing deposits |
1,739,526 |
16,793 |
0.97 |
2,112,068 |
28,267 |
1.34 |
Other borrowings |
84,738 |
1,799 |
2.12 |
96,141 |
2,079 |
2.16 |
Subordinated debentures |
81,963 |
5,821 |
7.10 |
81,963 |
5,130 |
6.26 |
Total interest-bearing liabilities |
1,906,227 |
24,413 |
1.28 |
2,290,172 |
35,476 |
1.55 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
377,780 |
|
|
330,998 |
|
|
Other liabilities |
33,991 |
|
|
18,039 |
|
|
Shareholders' equity |
378,084 |
|
|
359,535 |
|
|
Total liabilities and shareholders'
equity |
$ 2,696,082 |
|
|
$ 2,998,744 |
|
|
|
|
|
|
|
|
|
Net interest income and spread |
|
$ 96,332 |
3.41% |
|
$ 107,331 |
3.34% |
Net interest margin (1) |
|
|
3.74% |
|
|
3.67% |
Average interest-earning assets to
average interest-bearing liabilities |
135.07% |
|
|
127.62% |
|
|
|
|
|
|
|
|
|
(1) Net interest margin =
annualized net interest income / average interest-earning
assets |
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
Table 6 |
UNAUDITED QUARTERLY
SUMMARY LOAN DATA |
|
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
|
|
|
|
|
2011 |
2010 |
|
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
LOAN COMPOSITION |
|
|
|
|
|
|
|
|
Noncovered: |
|
|
|
|
|
|
|
|
Real estate mortgage: |
|
|
|
|
|
|
|
|
Commercial |
$ 1,028,561 |
$ 1,169,010 |
$ 1,262,753 |
$ 1,302,164 |
$ 1,310,464 |
$ 1,271,278 |
$ 1,251,709 |
$ 1,230,009 |
One-to-four family residential |
80,375 |
85,272 |
87,407 |
87,286 |
89,800 |
109,980 |
106,814 |
111,185 |
Real estate construction |
|
|
|
|
|
|
|
|
Commercial |
227,098 |
348,053 |
372,576 |
403,635 |
441,265 |
527,773 |
589,590 |
630,472 |
One-to-four family residential |
4,987 |
25,527 |
26,400 |
26,758 |
27,429 |
30,527 |
35,129 |
34,996 |
Commercial |
346,266 |
367,241 |
404,229 |
416,392 |
452,626 |
463,132 |
471,004 |
487,074 |
Installment and consumer: |
|
|
|
|
|
|
|
|
Guaranteed student loans |
5,396 |
5,547 |
5,600 |
5,700 |
5,843 |
5,960 |
7,389 |
10,199 |
Other |
33,190 |
32,946 |
34,335 |
36,493 |
39,060 |
39,014 |
39,328 |
38,048 |
Total noncovered loans, including held for
sale |
1,725,873 |
2,033,596 |
2,193,300 |
2,278,428 |
2,366,487 |
2,447,664 |
2,500,963 |
2,541,983 |
Less allowance for loan losses |
(44,233) |
(64,698) |
(54,575) |
(61,285) |
(65,229) |
(72,418) |
(67,055) |
(65,168) |
Total noncovered loans, net |
$ 1,681,640 |
$ 1,968,898 |
$ 2,138,725 |
$ 2,217,143 |
$ 2,301,258 |
$ 2,375,246 |
$ 2,433,908 |
$ 2,476,815 |
Covered: |
|
|
|
|
|
|
|
|
Real estate mortgage: |
|
|
|
|
|
|
|
|
Commercial |
$ 23,686 |
$ 23,201 |
$ 26,976 |
$ 28,929 |
$ 30,997 |
$ 33,428 |
$ 36,107 |
$ 37,487 |
One-to-four family residential |
7,072 |
7,378 |
8,113 |
8,192 |
9,122 |
10,071 |
10,277 |
10,843 |
Real estate construction |
|
|
|
|
|
|
|
|
Commercial |
3,746 |
5,987 |
6,001 |
6,144 |
6,840 |
7,464 |
8,190 |
11,173 |
One-to-four family residential |
-- |
-- |
172 |
281 |
439 |
1,823 |
3,853 |
5,273 |
Commercial |
2,841 |
4,286 |
4,461 |
5,021 |
5,554 |
6,816 |
8,487 |
10,807 |
Installment and consumer: |
270 |
357 |
430 |
550 |
676 |
956 |
1,092 |
1,326 |
Total covered loans |
37,615 |
41,209 |
46,153 |
49,117 |
53,628 |
60,558 |
68,006 |
76,909 |
Less allowance for loan losses |
(451) |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
Total covered loans, net |
$ 37,164 |
$ 41,209 |
$ 46,153 |
$ 49,117 |
$ 53,628 |
$ 60,558 |
$ 68,006 |
$ 76,909 |
LOANS BY SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ 688,592 |
$ 770,306 |
$ 834,189 |
$ 838,006 |
$ 871,393 |
$ 890,598 |
$ 914,004 |
$ 926,870 |
Texas banking |
665,010 |
845,485 |
911,134 |
953,123 |
982,845 |
1,024,863 |
1,041,228 |
1,063,511 |
Kansas banking |
238,468 |
252,302 |
260,431 |
272,685 |
289,642 |
309,240 |
329,157 |
342,596 |
Out of market |
132,723 |
166,810 |
196,495 |
226,383 |
241,041 |
248,653 |
258,965 |
260,329 |
Subtotal |
1,724,793 |
2,034,903 |
2,202,249 |
2,290,197 |
2,384,921 |
2,473,354 |
2,543,354 |
2,593,306 |
Secondary market |
38,695 |
39,902 |
37,204 |
37,348 |
35,194 |
34,868 |
25,615 |
25,586 |
Total loans |
$ 1,763,488 |
$ 2,074,805 |
$ 2,239,453 |
$ 2,327,545 |
$ 2,420,115 |
$ 2,508,222 |
$ 2,568,969 |
$ 2,618,892 |
NONPERFORMING LOANS BY
TYPE |
|
|
|
|
|
|
|
|
Construction & development |
$ 3,877 |
$ 68,554 |
$ 73,487 |
$ 68,183 |
$ 67,571 |
$ 88,590 |
$ 75,079 |
$ 54,648 |
Commercial real estate |
4,667 |
56,234 |
60,857 |
47,986 |
30,510 |
34,448 |
25,413 |
28,520 |
Commercial |
3,374 |
6,080 |
15,224 |
16,633 |
6,977 |
6,180 |
2,614 |
4,100 |
One-to-four family residential |
1,491 |
1,706 |
1,457 |
2,634 |
1,984 |
6,401 |
8,843 |
10,552 |
Consumer |
140 |
152 |
153 |
27 |
41 |
42 |
255 |
42 |
Total nonperforming loans -
noncovered |
$ 13,549 |
$ 132,726 |
$ 151,178 |
$ 135,463 |
$ 107,083 |
$ 135,661 |
$ 112,204 |
$ 97,862 |
NONPERFORMING LOANS BY
SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ 3,699 |
$ 14,932 |
$ 18,870 |
$ 13,443 |
$ 9,726 |
$ 9,937 |
$ 6,041 |
$ 7,638 |
Texas banking |
83 |
95,191 |
91,449 |
87,122 |
55,431 |
74,581 |
48,873 |
41,303 |
Kansas banking |
9,070 |
7,976 |
9,725 |
7,924 |
6,923 |
14,126 |
18,593 |
15,603 |
Out of market |
697 |
14,627 |
31,134 |
26,974 |
35,003 |
37,017 |
38,697 |
33,318 |
Total nonperforming loans -
noncovered |
$ 13,549 |
$ 132,726 |
$ 151,178 |
$ 135,463 |
$ 107,083 |
$ 135,661 |
$ 112,204 |
$ 97,862 |
OTHER REAL ESTATE BY
TYPE |
|
|
|
|
|
|
|
|
Construction & development |
$ 3,542 |
$ 38,927 |
$ 12,588 |
$ 6,304 |
$ 5,579 |
$ 9,349 |
$ 1,625 |
$ 1,441 |
Commercial real estate |
15,464 |
24,364 |
16,300 |
23,890 |
20,750 |
19,053 |
19,444 |
12,320 |
One-to-four family residential |
838 |
7,494 |
10,068 |
10,873 |
11,393 |
7,321 |
6,565 |
5,048 |
Total other real estate -
noncovered |
$ 19,844 |
$ 70,785 |
$ 38,956 |
$ 41,067 |
$ 37,722 |
$ 35,723 |
$ 27,634 |
$ 18,809 |
OTHER REAL ESTATE BY
SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ 6,178 |
$ 8,709 |
$ 2,613 |
$ 4,616 |
$ 4,814 |
$ 4,108 |
$ 3,547 |
$ 3,665 |
Texas banking |
9,846 |
35,270 |
17,398 |
18,652 |
15,810 |
14,651 |
10,352 |
4,376 |
Kansas banking |
3,210 |
12,390 |
14,539 |
12,848 |
13,182 |
12,218 |
8,989 |
9,198 |
Out of market |
610 |
14,416 |
4,406 |
4,951 |
3,916 |
4,746 |
4,746 |
1,570 |
Total other real estate -
noncovered |
$ 19,844 |
$ 70,785 |
$ 38,956 |
$ 41,067 |
$ 37,722 |
$ 35,723 |
$ 27,634 |
$ 18,809 |
POTENTIAL PROBLEM LOANS BY
TYPE |
|
|
|
|
|
|
|
|
Construction & development |
$ 43,607 |
$ 75,867 |
$ 111,032 |
$ 111,204 |
$ 94,765 |
$ 111,401 |
$ 101,455 |
$ 132,546 |
Commercial real estate |
55,873 |
162,692 |
140,079 |
85,833 |
101,629 |
97,694 |
107,538 |
111,989 |
Commercial |
32,477 |
37,027 |
38,850 |
19,940 |
36,142 |
27,119 |
32,843 |
30,582 |
One-to-four family residential |
1,082 |
1,108 |
1,210 |
429 |
589 |
608 |
354 |
764 |
Consumer |
-- |
-- |
-- |
-- |
15 |
22 |
27 |
31 |
Total potential problem loans -
noncovered |
$ 133,039 |
$ 276,694 |
$ 291,171 |
$ 217,406 |
$ 233,140 |
$ 236,844 |
$ 242,217 |
$ 275,912 |
POTENTIAL PROBLEM LOANS BY
SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ 27,481 |
$ 54,310 |
$ 42,565 |
$ 30,678 |
$ 36,170 |
$ 58,230 |
$ 47,686 |
$ 47,147 |
Texas banking |
83,035 |
163,973 |
183,486 |
114,506 |
144,357 |
116,049 |
145,684 |
168,717 |
Kansas banking |
836 |
14,530 |
11,289 |
19,472 |
20,232 |
19,737 |
1,754 |
5,175 |
Out of market |
21,687 |
43,881 |
53,831 |
52,750 |
32,381 |
42,828 |
47,093 |
54,873 |
Total potential problem loans -
noncovered |
$ 133,039 |
$ 276,694 |
$ 291,171 |
$ 217,406 |
$ 233,140 |
$ 236,844 |
$ 242,217 |
$ 275,912 |
Continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
Table 6 |
UNAUDITED QUARTERLY
SUMMARY LOAN DATA |
|
Continued |
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
|
|
|
|
|
2011 |
2010 |
|
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
OUT OF MARKET
LOANS |
|
|
|
|
|
|
|
|
Net balance out of market
loans: |
|
|
|
|
|
|
|
|
Iowa |
$ 26,494 |
$ 26,626 |
$ 26,695 |
$ 26,759 |
$ 26,836 |
$ 28,953 |
$ 25,035 |
$ 25,108 |
Arizona |
26,372 |
35,978 |
49,977 |
57,657 |
65,615 |
68,887 |
65,770 |
66,428 |
New Mexico |
15,215 |
21,019 |
21,092 |
28,226 |
28,710 |
29,188 |
29,514 |
29,732 |
Ohio |
12,741 |
9,367 |
9,568 |
9,963 |
10,420 |
10,666 |
10,786 |
10,293 |
California |
10,530 |
10,737 |
9,814 |
9,984 |
9,906 |
10,169 |
10,554 |
10,560 |
Tennessee |
6,427 |
6,484 |
6,550 |
6,606 |
6,784 |
6,837 |
6,898 |
6,967 |
Florida |
6,421 |
6,374 |
10,582 |
7,600 |
7,627 |
7,622 |
7,531 |
7,635 |
Louisiana |
5,336 |
5,644 |
5,963 |
8,018 |
8,651 |
9,223 |
9,788 |
10,354 |
Arkansas |
5,192 |
3,848 |
2,549 |
1,502 |
3,162 |
3,283 |
9,218 |
9,409 |
Colorado |
5,162 |
23,234 |
24,187 |
28,422 |
28,619 |
30,160 |
31,509 |
32,793 |
Other (16 states included) |
12,833 |
17,499 |
29,518 |
41,646 |
44,711 |
43,665 |
52,362 |
51,050 |
Total out of market loans |
$ 132,723 |
$ 166,810 |
$ 196,495 |
$ 226,383 |
$ 241,041 |
$ 248,653 |
$ 258,965 |
$ 260,329 |
Nonperforming out of market
loans: |
|
|
|
|
|
|
|
|
Florida |
$ 299 |
$ 305 |
$ 1,479 |
$ 1,479 |
$ 1,479 |
$ 1,479 |
$ 1,486 |
$ 1,486 |
Arizona |
267 |
8,441 |
16,745 |
10,316 |
17,061 |
19,145 |
19,576 |
11,834 |
Colorado |
131 |
746 |
4,909 |
880 |
1,235 |
1,239 |
1,255 |
521 |
New Mexico |
-- |
5,135 |
5,135 |
11,827 |
11,827 |
11,827 |
11,827 |
11,827 |
Tennessee |
-- |
-- |
-- |
-- |
30 |
32 |
33 |
35 |
Alabama |
-- |
-- |
157 |
172 |
192 |
192 |
195 |
195 |
Other |
-- |
-- |
2,709 |
2,300 |
3,179 |
3,103 |
4,325 |
7,420 |
Total nonperforming out of market
loans |
$ 697 |
$ 14,627 |
$ 31,134 |
$ 26,974 |
$ 35,003 |
$ 37,017 |
$ 38,697 |
$ 33,318 |
Potential problem out of market
loans: |
|
|
|
|
|
|
|
|
New Mexico |
$ 11,542 |
$ 11,589 |
$ 11,635 |
$ -- |
$ -- |
$ -- |
$ -- |
$ -- |
Arizona |
9,463 |
10,287 |
14,865 |
25,242 |
14,986 |
15,608 |
10,648 |
18,428 |
California |
578 |
593 |
9,423 |
9,575 |
-- |
9,825 |
9,950 |
9,950 |
Florida |
104 |
108 |
116 |
-- |
-- |
-- |
-- |
-- |
Iowa |
-- |
-- |
-- |
-- |
-- |
-- |
9,100 |
9,100 |
Colorado |
-- |
17,034 |
13,500 |
17,933 |
17,395 |
17,395 |
17,395 |
17,395 |
Alabama |
-- |
4,270 |
4,292 |
-- |
-- |
-- |
-- |
-- |
Total potential problem out of market
loans |
$ 21,687 |
$ 43,881 |
$ 53,831 |
$ 52,750 |
$ 32,381 |
$ 42,828 |
$ 47,093 |
$ 54,873 |
ALLOWANCE ACTIVITY,
Noncovered |
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ 64,698 |
$ 54,575 |
$ 61,285 |
$ 65,229 |
$ 72,418 |
$ 67,055 |
$ 65,168 |
$ 62,413 |
Charge offs |
99,604 |
16,067 |
27,562 |
13,392 |
14,720 |
7,006 |
6,168 |
6,545 |
Recoveries |
1,305 |
1,564 |
712 |
398 |
266 |
381 |
279 |
769 |
Net charge offs |
98,299 |
14,503 |
26,850 |
12,994 |
14,454 |
6,625 |
5,889 |
5,776 |
Provision for loan losses |
77,834 |
24,626 |
20,140 |
9,050 |
7,265 |
11,988 |
7,776 |
8,531 |
Balance, end of period |
$ 44,233 |
$ 64,698 |
$ 54,575 |
$ 61,285 |
$ 65,229 |
$ 72,418 |
$ 67,055 |
$ 65,168 |
NET CHARGE OFFS BY
TYPE |
|
|
|
|
|
|
|
|
Construction & development |
$ 41,513 |
$ 7,177 |
$ 10,847 |
$ 1,012 |
$ 11,613 |
$ 1,641 |
$ 4,126 |
$ 2,920 |
Commercial real estate |
50,070 |
5,702 |
7,593 |
7,290 |
1,351 |
1,582 |
515 |
919 |
Commercial |
6,434 |
1,469 |
7,999 |
4,337 |
1,214 |
1,318 |
1,081 |
1,148 |
One-to-four family residential |
1 |
55 |
165 |
58 |
149 |
1,589 |
119 |
558 |
Consumer |
281 |
100 |
246 |
297 |
127 |
495 |
48 |
231 |
Total net charge offs by type |
$ 98,299 |
$ 14,503 |
$ 26,850 |
$ 12,994 |
$ 14,454 |
$ 6,625 |
$ 5,889 |
$ 5,776 |
NET CHARGE OFFS BY
SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ 13,210 |
$ 1,058 |
$ 1,442 |
$ 1,593 |
$ 1,616 |
$ 1,960 |
$ 371 |
$ 1,815 |
Texas banking |
64,370 |
7,386 |
9,163 |
4,502 |
10,485 |
2,219 |
4,726 |
3,734 |
Kansas banking |
8,872 |
361 |
1,791 |
372 |
64 |
823 |
482 |
1,077 |
Out of market |
11,847 |
5,698 |
14,454 |
6,527 |
2,289 |
1,623 |
310 |
(850) |
Total net charge offs by segment |
$ 98,299 |
$ 14,503 |
$ 26,850 |
$ 12,994 |
$ 14,454 |
$ 6,625 |
$ 5,889 |
$ 5,776 |
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
Table 7 |
UNAUDITED QUARTERLY
SUMMARY FINANCIAL DATA |
|
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
|
|
|
|
|
2011 |
2010 |
|
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
NET INCOME (LOSS) BY
SEGMENT |
|
|
|
|
|
|
|
|
Oklahoma banking |
$ (5,586) |
$ 7 |
$ 5,290 |
$ 3,435 |
$ 4,205 |
$ 3,399 |
$ 4,387 |
$ 2,857 |
Texas banking |
(35,435) |
(6,455) |
1,575 |
1,079 |
4,001 |
(1,801) |
757 |
1,685 |
Kansas banking |
(7,533) |
(612) |
971 |
131 |
293 |
(306) |
940 |
(322) |
Out of market |
(7,857) |
(1,947) |
(9,039) |
(924) |
(3,674) |
494 |
(477) |
1,750 |
Subtotal |
(56,411) |
(9,007) |
(1,203) |
3,721 |
4,825 |
1,786 |
5,607 |
5,970 |
Secondary market |
144 |
90 |
127 |
(13) |
444 |
173 |
83 |
310 |
Other operations |
(1,994) |
(608) |
(1,894) |
(1,247) |
(961) |
1,914 |
(1,279) |
(1,908) |
Net income (loss) |
$ (58,261) |
$ (9,525) |
$ (2,970) |
$ 2,461 |
$ 4,308 |
$ 3,873 |
$ 4,411 |
$ 4,372 |
PER SHARE DATA |
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ (3.05) |
$ (0.54) |
$ (0.21) |
$ 0.07 |
$ 0.17 |
$ 0.15 |
$ 0.19 |
$ 0.23 |
Diluted earnings per common share |
(3.05) |
(0.54) |
(0.21) |
0.07 |
0.17 |
0.15 |
0.19 |
0.23 |
Book value per common share |
12.28 |
15.37 |
15.89 |
16.02 |
15.97 |
15.93 |
15.88 |
16.79 |
Tangible book value per share* |
11.93 |
15.02 |
15.54 |
15.67 |
15.62 |
15.58 |
15.53 |
16.33 |
COMMON STOCK |
|
|
|
|
|
|
|
|
Shares issued and outstanding |
19,444,213 |
19,441,577 |
19,439,167 |
19,438,290 |
19,421,900 |
19,395,675 |
19,388,797 |
14,779,711 |
OTHER FINANCIAL
DATA |
|
|
|
|
|
|
|
|
Investment securities |
$ 275,352 |
$ 269,599 |
$ 268,153 |
$ 258,436 |
$ 262,525 |
$ 240,844 |
$ 247,108 |
$ 241,693 |
Loans held for sale |
38,695 |
39,902 |
37,204 |
37,348 |
35,194 |
34,868 |
25,615 |
25,586 |
Noncovered portfolio loans |
1,687,178 |
1,993,694 |
2,156,096 |
2,241,080 |
2,331,293 |
2,412,796 |
2,475,348 |
2,516,397 |
Total noncovered loans |
1,725,873 |
2,033,596 |
2,193,300 |
2,278,428 |
2,366,487 |
2,447,664 |
2,500,963 |
2,541,983 |
Covered portfolio loans |
37,615 |
41,209 |
46,153 |
49,117 |
53,628 |
60,558 |
68,006 |
76,909 |
Total assets |
2,382,873 |
2,572,492 |
2,660,495 |
2,779,028 |
2,820,541 |
2,905,275 |
3,010,835 |
3,074,923 |
Total deposits |
1,921,382 |
2,022,253 |
2,094,236 |
2,218,571 |
2,252,728 |
2,345,648 |
2,444,939 |
2,554,165 |
Other borrowings |
56,479 |
86,583 |
96,682 |
85,332 |
94,602 |
82,506 |
93,036 |
103,620 |
Subordinated debentures |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
81,963 |
Total shareholders' equity |
307,186 |
367,024 |
376,930 |
379,350 |
377,812 |
376,576 |
375,319 |
315,341 |
Mortgage servicing portfolio |
295,492 |
285,886 |
283,083 |
281,271 |
278,146 |
261,266 |
249,632 |
241,224 |
INTANGIBLE ASSET
DATA |
|
|
|
|
|
|
|
|
Goodwill |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
$ 6,811 |
Core deposit intangible |
3,030 |
3,155 |
3,285 |
3,420 |
3,557 |
3,693 |
3,830 |
3,967 |
Mortgage servicing rights |
1,825 |
1,808 |
1,781 |
1,718 |
1,810 |
1,661 |
1,589 |
1,603 |
Nonmortgage servicing rights |
2 |
3 |
3 |
3 |
4 |
4 |
5 |
5 |
Total intangible assets |
$ 11,668 |
$ 11,777 |
$ 11,880 |
$ 11,952 |
$ 12,182 |
$ 12,169 |
$ 12,235 |
$ 12,386 |
Intangible amortization expense |
$ 252 |
$ 226 |
$ 222 |
$ 361 |
$ 402 |
$ 392 |
$ 350 |
$ 359 |
DEPOSIT
COMPOSITION |
|
|
|
|
|
|
|
|
Non-interest bearing demand |
$ 400,985 |
$ 388,365 |
$ 389,027 |
$ 369,013 |
$ 377,182 |
$ 329,655 |
$ 326,721 |
$ 317,896 |
Interest-bearing demand |
105,905 |
98,270 |
124,346 |
112,731 |
92,584 |
86,153 |
102,218 |
119,757 |
Money market accounts |
423,181 |
461,546 |
465,269 |
486,770 |
495,253 |
518,422 |
510,549 |
506,659 |
Savings accounts |
33,406 |
31,319 |
29,586 |
28,440 |
26,665 |
25,556 |
25,321 |
25,871 |
Time deposits of $100,000 or more |
487,907 |
551,914 |
570,116 |
669,817 |
694,565 |
795,303 |
861,110 |
944,871 |
Other time deposits |
469,998 |
490,839 |
515,892 |
551,800 |
566,479 |
590,559 |
619,020 |
639,111 |
Total deposits** |
$ 1,921,382 |
$ 2,022,253 |
$ 2,094,236 |
$ 2,218,571 |
$ 2,252,728 |
$ 2,345,648 |
$ 2,444,939 |
$ 2,554,165 |
OFFICES AND
EMPLOYEES |
|
|
|
|
|
|
|
|
FTE Employees |
435 |
437 |
437 |
424 |
432 |
440 |
447 |
455 |
Branches |
23 |
23 |
23 |
23 |
23 |
23 |
23 |
24 |
Loan production offices |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
Assets per employee |
$ 5,478 |
$ 5,887 |
$ 6,088 |
$ 6,554 |
$ 6,529 |
$ 6,603 |
$ 6,736 |
$ 6,758 |
|
|
|
|
|
|
|
|
|
*This is a Non-GAAP based financial
measure. |
|
|
|
|
|
|
|
|
**Calculation of Non-brokered
Deposits and Core Funding (Non-GAAP Financial Measures) |
|
|
|
Total deposits |
$ 1,921,382 |
$ 2,022,253 |
$ 2,094,236 |
$ 2,218,571 |
$ 2,252,728 |
$ 2,345,648 |
$ 2,444,939 |
$ 2,554,165 |
Less: |
|
|
|
|
|
|
|
|
Brokered time deposits |
14,974 |
46,838 |
52,407 |
122,124 |
145,240 |
226,238 |
279,027 |
359,571 |
Other brokered deposits |
78,236 |
105,483 |
105,392 |
112,033 |
117,532 |
129,096 |
126,643 |
124,969 |
Non-brokered deposits |
$ 1,828,172 |
$ 1,869,932 |
$ 1,936,437 |
$ 1,984,414 |
$ 1,989,956 |
$ 1,990,314 |
$ 2,039,269 |
$ 2,069,625 |
Plus: |
|
|
|
|
|
|
|
|
Sweep repurchase agreements |
31,482 |
40,305 |
30,636 |
27,214 |
26,492 |
22,211 |
22,700 |
33,192 |
Core funding |
$ 1,859,654 |
$ 1,910,237 |
$ 1,967,073 |
$ 2,011,628 |
$ 2,016,448 |
$ 2,012,525 |
$ 2,061,969 |
$ 2,102,817 |
|
|
|
|
|
|
|
|
|
Balance sheet amounts are as of
period end unless otherwise noted. |
|
|
|
|
|
|
|
|
|
|
|
SOUTHWEST BANCORP,
INC. |
|
|
|
Table 8 |
UNAUDITED QUARTERLY
SUPPLEMENTAL ANALYTICAL DATA |
|
(Dollars in thousands, except per
share) |
|
|
|
|
|
|
|
|
|
|
|
2011 |
2010 |
|
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
Dec. 31 |
Sep. 30 |
Jun. 30 |
Mar. 31 |
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
(8.96)% |
(1.43)% |
(0.43)% |
0.35% |
0.59% |
0.52% |
0.58% |
0.57% |
Return on average common equity
(annualized) |
(79.48) |
(13.42) |
(5.11) |
1.81 |
4.11 |
3.57 |
4.64 |
5.42 |
Return on average tangible common
equity |
|
|
|
|
|
|
|
|
(annualized)* |
(81.35) |
(13.72) |
(5.22) |
1.85 |
4.21 |
3.65 |
4.75 |
5.58 |
Net interest margin (annualized) |
3.62 |
3.77 |
3.79 |
3.78 |
3.82 |
3.63 |
3.65 |
3.59 |
Total dividends declared to net
income |
(0.92) |
(9.24) |
(29.46) |
35.56 |
20.31 |
22.59 |
19.84 |
20.02 |
Effective tax rate |
38.49 |
35.23 |
54.53 |
38.40 |
38.31 |
28.02 |
38.29 |
39.19 |
Efficiency ratio |
164.47 |
64.07 |
52.40 |
54.50 |
54.13 |
47.02 |
51.97 |
49.25 |
NONPERFORMING
ASSETS |
|
|
|
|
|
|
|
|
Noncovered: |
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ 13,506 |
$ 132,268 |
$ 151,135 |
$ 134,934 |
$ 106,566 |
$ 135,209 |
$ 111,871 |
$ 97,858 |
90 days past due and accruing |
43 |
458 |
43 |
529 |
517 |
452 |
333 |
4 |
Total nonperforming loans |
13,549 |
132,726 |
151,178 |
135,463 |
107,083 |
135,661 |
112,204 |
97,862 |
Other real estate |
19,844 |
70,785 |
38,956 |
41,067 |
37,722 |
35,723 |
27,634 |
18,809 |
Total nonperforming assets |
$ 33,393 |
$ 203,511 |
$ 190,134 |
$ 176,530 |
$ 144,805 |
$ 171,384 |
$ 139,838 |
$ 116,671 |
Performing restructured |
$ 1,017 |
$ 1,026 |
$ 3,191 |
$ 2,166 |
$ 2,177 |
$ 5,334 |
$ 5,525 |
$ 5,650 |
Potential problem loans |
$ 133,039 |
$ 276,694 |
$ 291,171 |
$ 217,406 |
$ 233,140 |
$ 236,844 |
$ 242,217 |
$ 275,912 |
Covered: |
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ 7,128 |
$ 7,065 |
$ 9,800 |
$ 9,809 |
$ 10,806 |
$ 7,906 |
$ 14,504 |
$ 16,192 |
90 days past due and accruing |
-- |
610 |
-- |
-- |
-- |
1,871 |
130 |
356 |
Total nonperforming loans |
7,128 |
7,675 |
9,800 |
9,809 |
10,806 |
9,777 |
14,634 |
16,548 |
Other real estate |
4,529 |
5,350 |
3,806 |
4,016 |
4,187 |
4,448 |
4,352 |
4,489 |
Total nonperforming assets |
$ 11,657 |
$ 13,025 |
$ 13,606 |
$ 13,825 |
$ 14,993 |
$ 14,225 |
$ 18,986 |
$ 21,037 |
Potential problem loans |
$ 912 |
$ 2,015 |
$ 2,731 |
$ 3,444 |
$ 3,495 |
$ 6,413 |
$ 6,184 |
$ 6,620 |
ASSET QUALITY
RATIOS |
|
|
|
|
|
|
|
|
Net loan charge-offs to average
portfolio loans (annualized) |
19.78% |
2.70% |
4.76% |
2.25% |
2.35% |
1.05% |
0.92% |
0.90% |
Noncovered: |
|
|
|
|
|
|
|
|
Nonperforming assets to portfolio loans
and other real estate |
1.96% |
9.86% |
8.66% |
7.74% |
6.11% |
7.00% |
5.59% |
4.60% |
Nonperforming loans to portfolio
loans |
0.80 |
6.66 |
7.01 |
6.04 |
4.59 |
5.62 |
4.53 |
3.89 |
Allowance for loan losses to portfolio
loans |
2.62 |
3.25 |
2.53 |
2.73 |
2.80 |
3.00 |
2.71 |
2.59 |
Allowance for loan losses
to nonperforming loans |
326.47 |
48.75 |
36.10 |
45.24 |
60.91 |
53.38 |
59.76 |
66.59 |
Covered: |
|
|
|
|
|
|
|
|
Nonperforming assets to portfolio loans
and other real estate |
27.66% |
27.98% |
27.23% |
26.02% |
25.93% |
21.88% |
26.24% |
25.84% |
Nonperforming loans to portfolio
loans |
18.95 |
18.62 |
21.23 |
19.97 |
20.15 |
16.14 |
21.52 |
21.52 |
Allowance for loan losses to portfolio
loans |
1.64 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
Allowance for loan losses
to nonperforming loans |
6.33 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
Average total shareholders' equity
to average assets |
14.14% |
14.39% |
13.98% |
13.57% |
13.24% |
12.85% |
11.78% |
10.18% |
Leverage ratio |
14.62 |
16.47 |
16.25 |
15.95 |
15.55 |
14.96 |
14.48 |
12.32 |
Tier 1 capital to risk-weighted
assets |
19.51 |
19.54 |
18.93 |
18.49 |
17.78 |
17.17 |
16.50 |
14.00 |
Total capital to risk-weighted
assets |
20.78 |
20.81 |
20.20 |
19.77 |
19.06 |
18.45 |
17.78 |
15.28 |
Tangible common equity to tangible
assets*** |
9.76 |
11.38 |
11.38 |
10.99 |
10.78 |
10.43 |
10.02 |
7.87 |
REGULATORY CAPITAL
DATA |
|
|
|
|
|
|
|
|
Tier I capital |
$ 374,552 |
$ 433,628 |
$ 444,106 |
$ 447,803 |
$ 445,966 |
$ 442,188 |
$ 438,973 |
$ 381,280 |
Total capital |
398,945 |
461,929 |
473,950 |
478,713 |
477,930 |
475,040 |
472,971 |
415,955 |
Total risk adjusted assets |
1,920,075 |
2,219,271 |
2,346,596 |
2,421,752 |
2,507,867 |
2,574,746 |
2,659,886 |
2,722,628 |
Average total assets |
2,562,094 |
2,633,000 |
2,733,561 |
2,807,518 |
2,867,114 |
2,955,779 |
3,032,328 |
3,094,756 |
|
|
|
|
|
|
|
|
|
*This is a Non-GAAP based financial
measure. |
|
|
|
|
|
|
|
|
***Calculation of Tangible
Capital to Tangible Assets (Non-GAAP Financial Measure) |
Total shareholders' equity |
$ 307,186 |
$ 367,024 |
$ 376,930 |
$ 379,350 |
$ 377,812 |
$ 376,576 |
$ 375,319 |
$ 315,341 |
Less: |
|
|
|
|
|
|
|
|
Goodwill |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
Preferred stock |
68,455 |
68,268 |
68,084 |
67,902 |
67,724 |
67,548 |
67,375 |
67,205 |
Tangible common equity |
$ 231,920 |
$ 291,945 |
$ 302,035 |
$ 304,637 |
$ 303,277 |
$ 302,217 |
$ 301,133 |
$ 241,325 |
Total assets |
$ 2,382,873 |
$ 2,572,492 |
$ 2,660,495 |
$ 2,779,028 |
$ 2,820,541 |
$ 2,905,275 |
$ 3,010,835 |
$ 3,074,923 |
Less goodwill |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
6,811 |
Tangible assets |
$ 2,376,062 |
$ 2,565,681 |
$ 2,653,684 |
$ 2,772,217 |
$ 2,813,730 |
$ 2,898,464 |
$ 3,004,024 |
$ 3,068,112 |
Tangible common equity to tangible
assets |
9.76% |
11.38% |
11.38% |
10.99% |
10.78% |
10.43% |
10.02% |
7.87% |
|
|
|
|
|
|
|
|
|
Balance sheet amounts and ratios
are as of period end unless otherwise noted. |
CONTACT: Rick Green
President & CEO
Laura Robertson
EVP & CFO
(405) 372-2230
Southwest Bancorp - Southwest Capital Trust Ii- Trust Preferred Securities (MM) (NASDAQ:OKSBP)
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