STILLWATER, Okla., July 25, 2017 (GLOBE NEWSWIRE) — Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the second quarter of 2017 of $5.8 million, or $0.31 per diluted share, compared to $5.4 million, or $0.28 per diluted share, for the second quarter of 2016. Net income for the six months ended June 30, 2017 totaled $11.1 million, or $0.59 per diluted share, compared to $7.3 million, or $0.38 per diluted share, for the six months ended June 30, 2016. The increase was attributable to stronger revenues and improved efficiency.
Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable August 18, 2017 to shareholders of record as of August 4, 2017.
Mark Funke, President and CEO, stated, “We are pleased with the improvement in the second quarter’s earnings. Our good loan growth boosted revenues while expenses remained flat.”
Highlights to take from this quarter:
- Total loans grew $35.2 million to $1.97 billion from first quarter of 2017 and $150.3 million, or 8%, compared to the second quarter of 2016.
- The quarterly net interest margin was 3.53% at June 30, 2017, compared to 3.43% at March 31, 2017 and 3.48% at June 30, 2016.
- Pre-tax, pre-provision income was $10.8 million in the second quarter, an increase of 15% from $9.4 million in the first quarter of 2017 and an increase of 34% from $8.0 million in the second quarter of 2016.
- The efficiency ratio for the second quarter of 2017 was 57.77%, compared to 63.30% for the first quarter of 2017 and 65.70% for the second quarter of 2016.
“Diluted earnings per share of $0.31 was up 11% from the same quarter a year ago. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing risk and expenses.”
See Table 3 for details on pre-tax, pre-provision income, which is a non-GAAP measure.
Pending Merger Update
Southwest previously announced a definitive agreement and plan of merger with and into Simmons First National Corporation (NASDAQ-GS:SFNC). The merger application for this transaction was filed on July 14, 2017. Conversion and integration plans are in process. Subject to regulatory approval and the satisfaction of other closing conditions, Southwest anticipates a closing date as early as October 2017 or as late as January 2018.
Financial Overview
Condition: As of June 30, 2017, total assets were $2.6 billion, an increase of $50.3 million, when compared to March 31, 2017. As of June 30, 2017, total loans were $1.97 billion, an increase of $35.2 million from the prior quarter end. As of June 30, 2017, investment securities were $434.4 million, an increase of $1.4 million from the prior quarter end. Cash and cash equivalents at June 30, 2017 were $79.8 million, an increase of $14.7 million from March 31, 2017.
At June 30, 2017, the allowance for loan losses was $27.3 million, a decrease of $0.2 million when compared to March 31, 2017 and an increase of $0.4 million when compared to June 30, 2016. The allowance for loan losses to portfolio loans was 1.39% as of June 30, 2017, down from 1.43% as of March 31, 2017, and from 1.48% as of June 30, 2016. The allowance for loan losses to nonperforming loans was 118.46% as of June 30, 2017, compared to 166.01% as of March 31, 2017 and 120.39% as of June 30, 2016. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.53% of gross loans as of June 30, 2017, compared to 1.63% as of March 31, 2017.
Nonperforming loans were $23.1 million at June 30, 2017, an increase of $6.5 million from March 31, 2017, and an increase of $0.7 million from June 30, 2016. There was no other real estate at June 30, 2017, compared to other real estate of $0.4 million at March 31, 2017 and $2.1 million at June 30, 2016. Nonperforming assets were $23.1 million, or 1.17% of portfolio loans and other real estate, as of June 30, 2017, compared to $16.9 million, or 0.88% of portfolio loans and other real estate, as of March 31, 2017, and $24.4 million, or 1.35% of portfolio loans and other real estate, as of June 30, 2016.
As of June 30, 2017, total deposits were $2.0 billion, an increase of $36.6 million, when compared to March 31, 2017. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 78% and 79% of total funding as of June 30, 2017 and March 31, 2017, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 22% of total funding at June 30, 2017 and 21% of total funding at March 31, 2017. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.
The capital ratios of Southwest and Bank SNB as of June 30, 2017 exceeded the criteria for regulatory classification as “well-capitalized.” Southwest’s total regulatory capital was $354.7 million, for a total risk-based capital ratio of 15.48%, Common Equity Tier 1 capital was $280.9 million, for a Common Equity Tier 1 ratio of 12.26%, and Tier 1 capital was $325.9 million, for a Tier 1 risk-based capital ratio of 14.23%. Bank SNB had total regulatory capital of $341.0 million, for a total risk-based capital ratio of 14.91% and Common Equity Tier 1 and Tier 1 capital of $312.3 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.66%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Second Quarter Results:
Summary: For the second quarter of 2017, net income was $5.8 million, compared to $5.3 million for the first quarter of 2017 and $5.4 million for the second quarter of 2016. Pre-tax, pre-provision income for the second quarter of 2017 was $10.8 million, compared to $9.4 million for the first quarter of 2017 and $8.0 million for the second quarter of 2016.
The $0.5 million increase in net income compared to the first quarter of 2017 includes a $1.2 million increase in net interest income and a $0.1 million decrease in noninterest expense, offset in part by a $0.4 million decrease in noninterest income, and a $0.5 million increase in income taxes.
The $0.4 million increase in net income compared to the second quarter of 2016 was due to a $1.7 million increase in net interest income, a $0.7 million increase in noninterest income, and a $0.1 million decrease in noninterest expense, offset in part by a $1.7 million increase in the provision for loan losses and a $0.3 million increase in income taxes.
Net Interest Income: Net interest income totaled $21.4 million for the second quarter of 2017, compared to $20.2 million for the first quarter of 2017 and $19.7 million for the second quarter of 2016. Net interest margin was 3.53% for the second quarter of 2017, compared to 3.43% for the first quarter of 2017 and 3.48% for the second quarter of 2016. Included in interest income for the second quarter of 2017, the first quarter of 2017, and the second quarter of 2016 was $0.4 million, $0.3 million, and $0.2 million of accelerated discount accretion, respectively. The net effects of these adjustments on the net interest margins were a 7 basis point, a 5 basis point, and a 3 basis point increase, respectively for each quarter. Average loans (including loans held for sale) for the second quarter of 2017 increased $41.6 million when compared to March 31, 2017, and $141.1 million when compared to June 30, 2016. Loan growth combined with the March 2017 interest rate increase provided growth in interest income during the second quarter of 2017.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was $1.7 million for the second quarter of 2017, compared to a provision of $1.8 million for the first quarter of 2017, and a provision of $10,000 for the second quarter of 2016. The second quarter 2017 provision was driven primarily by loan growth and an increase in reserves on a few classified loans. During the second quarter of 2017, net charge-offs totaled $1.9 million, or 0.40% (annualized) of average portfolio loans, compared to net charge-offs of $1.8 million, or 0.38% (annualized) of average portfolio loans, for the first quarter of 2017 and net charge-offs of $0.3 million, or 0.07% (annualized) of average portfolio loans, for the second quarter of 2016.
Noninterest Income: Noninterest income totaled $4.5 million for the second quarter of 2017, compared to $4.9 million for the first quarter of 2017 and $3.9 million for the second quarter of 2016.
The $0.4 million decrease from the first quarter of 2017 is primarily the result of a $0.4 million decrease in the gain on sale/call of investment securities.
The $0.7 million increase from the second quarter of 2016 is the result of a $0.2 million increase in service charges and fees and a $0.6 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income, offset in part by a $0.2 million decrease in the gain on sale/call of investment securities.
Noninterest Expense: Noninterest expense totaled $15.2 million for the second quarter of 2017, compared to $15.3 million for both the first quarter of 2017 and the second quarter of 2016.
The $0.1 million decrease in noninterest expense from the first quarter of 2017 was primarily due to a $0.2 million decrease in salaries and employee benefits and a $0.4 million decrease in general and administrative expenses, offset in part by a $0.4 million increase in the provision for unfunded loan commitments.
The $0.1 million decrease in noninterest expense from the second quarter of 2016 was primarily due to a $0.4 million decrease in occupancy, offset in part by a $0.3 million increase in the provision for unfunded loan commitments.
Income Tax: Income tax expense totaled $3.2 million for the second quarter of 2017, compared to $2.7 million for the first quarter of 2017 and $2.9 million for the second quarter of 2016. The income tax expense fluctuates in relation to pre-tax income levels. The second quarter of 2017 effective tax rate was 35.41%, compared to 33.71% for the first quarter of 2017 and 34.70% for the second quarter of 2016. The increase in the effective tax rate from the first quarter of 2017 includes a reduction in the tax benefit of vested stock awards.
Year-to-Date Results:
Summary: Net income was $11.1 million for the six months ended June 30, 2017, compared to $7.3 million for the six months ended June 30, 2016. The $3.8 million increase in net income from 2016 is the result of a $2.0 million increase in net interest income, a $2.1 million increase in noninterest income, a $0.9 million decrease in the provision for loan losses, and a $0.8 million decrease in noninterest expense, offset in part by a $2.0 million increase in income taxes.
Net Interest Income: Net interest income totaled $41.5 million for the first six months of 2017, compared to $39.5 million for the first six months of 2016, an increase of $2.0 million. Year-to-date net interest margin was 3.48% for the first six months of 2017 and 3.51% for the first six months of 2016. Included in interest income for the first six months of 2017 and the first six months of 2016 was $0.7 million and $0.5 million of accelerated discount accretion, respectively. The net effect on the net interest margin was a 6 basis point and a 4 basis point increase, respectively for each six-month period. For the first six months of 2017, net interest margin was also reduced by an increase in the cost of deposits and other borrowings. Average loans (including loans held for sale) as of June 30, 2017 increased $125.7 million when compared to June 30, 2016. Loan growth combined with the recent interest rate increases provided growth in our loan interest income.
Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount of expense that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was $3.5 million for the first six months of 2017, compared to a provision of $4.4 million for the first six months of 2016. The provision for loans losses for the first six months of 2017 was driven primarily by loan growth and an increase in reserves on a few classified loans. Net charge-offs totaled $3.7 million, or 0.39% (annualized) of average portfolio loans year-to-date as of June 30, 2017, compared to net charge-offs of $3.6 million, or 0.41% (annualized) of average portfolio loans for the same period in 2016.
Noninterest Income: Noninterest income totaled $9.4 million for the first six months of 2017, compared to $7.3 million for the first six months of 2016. The $2.1 million increase consists of a $0.4 million increase in service charges and fees, a $0.1 million increase in gains on sales of mortgage loans, a $0.2 million increase in the gain on sale of investment securities driven by a first quarter of 2017 sale of a private equity investment, and a $1.4 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income.
Noninterest Expense: Noninterest expense totaled $30.5 million for the first six months of 2017, compared to $31.3 million for the first six months of 2016. The $0.8 million decrease consists of a $0.6 million decrease in occupancy, a $0.3 million decrease in FDIC and other insurance, a $0.3 million increase in the credit provision for unfunded loan commitments, and a $0.2 million decrease in general and administrative expense, offset in part by a $0.6 million increase in salaries and employee benefits.
Income Tax: Income tax expense totaled $5.9 million for the first six months of 2017, compared to $3.9 million for the first six months of 2016. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 34.61% as of June 30, 2017, compared to 34.83% as of June 30, 2016.
Conference Call
Southwest will host a conference call to review these results on Wednesday, July 26, 2017 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10109903. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest’s website at www.oksb.com or http://services.choruscall.com/links/oksb170726. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10109903. Telephone replay access will be available until August 26, 2017.
Southwest Bancorp and Subsidiaries
Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At June 30, 2017, Southwest had total assets of approximately $2.6 billion, deposits of $2.0 billion, and shareholders’ equity of $295.5 million.
Southwest’s area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its banking subsidiary provide credit and other remittance services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of June 30, 2017, approximately $429.5 million, or 22%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.
Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.
Caution About Forward-Looking Statements
Southwest makes forward-looking statements in this news release that are subject to risks and uncertainties. These statements are intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include:
- Statements of Southwest’s goals, intentions, and expectations;
- Estimates of risks and of future costs and benefits;
- Expectations regarding Southwest’s future financial performance and the financial performance of its operating segments;
- Expectations regarding regulatory actions;
- Expectations regarding Southwest’s ability to utilize tax loss benefits;
- Expectations regarding Southwest’s stock repurchase program;
- Expectations regarding dividends;
- Expectations regarding our planned merger with Simmons First National Corporation;
- Assessments of loan quality, probable loan losses or negative provisions, and the amount and timing of loan payoffs;
- Estimates of the value of assets held for sale or available for sale; and
- Statements of Southwest’s ability to achieve financial and other goals.
These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest’s past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2016. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors”.
The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. Southwest does not intend, and undertakes no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.
Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of June 30, 2017 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2017 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.
The Southwest Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8074
The Bank SNB logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=23106
Financial Tables
| Unaudited Financial Highlights | Table 1 |
| Unaudited Consolidated Statements of Financial Condition | Table 2 |
| Unaudited Consolidated Statements of Operations | Table 3 |
| Unaudited Average Balances, Yields, and Rates-Quarterly | Table 4 |
| Unaudited Average Balances, Yields, and Rates-YTD | Table 5 |
| Unaudited Quarterly Summary Loan Data | Table 6 |
| Unaudited Quarterly Summary Financial Data | Table 7 |
| Unaudited Quarterly Supplemental Analytical Data | Table 8 |
| SOUTHWEST BANCORP, INC. | Table 1 | |||||||||||||||||
| UNAUDITED FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| (Dollars in thousands, except per share) | ||||||||||||||||||
| Second Quarter | First Quarter | |||||||||||||||||
| QUARTERLY HIGHLIGHTS | 2017 | 2016 | % Change | 2017 | % Change | |||||||||||||
| Operations | ||||||||||||||||||
| Net interest income | $ | 21,370 | $ | 19,695 | 9 | % | $ | 20,163 | 6 | % | ||||||||
| Provision for loan losses | 1,729 | 10 | 17,190 | 1,776 | (3 | ) | ||||||||||||
| Noninterest income | 4,521 | 3,871 | 17 | 4,880 | (7 | ) | ||||||||||||
| Noninterest expense | 15,155 | 15,268 | (1 | ) | 15,303 | (1 | ) | |||||||||||
| Income before taxes | 9,007 | 8,288 | 9 | 7,964 | 13 | |||||||||||||
| Taxes on income | 3,189 | 2,876 | 11 | 2,685 | 19 | |||||||||||||
| Net income | 5,818 | 5,412 | 8 | 5,279 | 10 | |||||||||||||
| Diluted earnings per share | 0.31 | 0.28 | 11 | 0.28 | 11 | |||||||||||||
| Balance Sheet | ||||||||||||||||||
| Total assets | 2,572,935 | 2,402,262 | 7 | 2,522,594 | 2 | |||||||||||||
| Loans held for sale | 6,036 | 7,090 | (15 | ) | 4,980 | 21 | ||||||||||||
| Portfolio loans | 1,965,598 | 1,814,287 | 8 | 1,931,463 | 2 | |||||||||||||
| Total deposits | 2,013,834 | 1,902,865 | 6 | 1,977,265 | 2 | |||||||||||||
| Total shareholders’ equity | 295,546 | 282,360 | 5 | 290,914 | 2 | |||||||||||||
| Book value per common share | 15.82 | 15.06 | 5 | 15.57 | 2 | |||||||||||||
| Key Ratios | ||||||||||||||||||
| Net interest margin | 3.53 | % | 3.48 | % | 3.43 | % | ||||||||||||
| Efficiency ratio | 57.77 | 65.70 | 63.30 | |||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 15.56 | 15.44 | |||||||||||||||
| Nonperforming loans to portfolio loans | 1.17 | 1.23 | 0.86 | |||||||||||||||
| Shareholders’ equity to total assets | 11.49 | 11.75 | 11.53 | |||||||||||||||
| Tangible common equity to tangible assets* | 10.95 | 11.16 | 10.98 | |||||||||||||||
| Return on average assets (annualized) | 0.92 | 0.91 | 0.86 | |||||||||||||||
| Return on average common equity (annualized) | 7.93 | 7.67 | 7.40 | |||||||||||||||
| Return on average tangible common equity (annualized)** | 8.37 | 8.13 | 7.83 | |||||||||||||||
| Six Months | ||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS | 2017 | 2016 | % Change | |||||||||||||||
| Operations | ||||||||||||||||||
| Net interest income | $ | 41,533 | $ | 39,535 | 5 | % | ||||||||||||
| Provision for loan losses | 3,505 | 4,385 | (20 | ) | ||||||||||||||
| Noninterest income | 9,401 | 7,286 | 29 | |||||||||||||||
| Noninterest expense | 30,458 | 31,264 | (3 | ) | ||||||||||||||
| Income before taxes | 16,971 | 11,172 | 52 | |||||||||||||||
| Taxes on income | 5,874 | 3,891 | 51 | |||||||||||||||
| Net income | 11,097 | 7,281 | 52 | |||||||||||||||
| Diluted earnings per share | 0.59 | 0.38 | 55 | |||||||||||||||
| Balance Sheet | ||||||||||||||||||
| Total assets | 2,572,935 | 2,402,262 | 7 | |||||||||||||||
| Loans held for sale | 6,036 | 7,090 | (15 | ) | ||||||||||||||
| Portfolio loans | 1,965,598 | 1,814,287 | 8 | |||||||||||||||
| Total deposits | 2,013,834 | 1,902,865 | 6 | |||||||||||||||
| Total shareholders’ equity | 295,546 | 282,360 | 5 | |||||||||||||||
| Book value per common share | 15.82 | 15.06 | 5 | |||||||||||||||
| Key Ratios | ||||||||||||||||||
| Net interest margin | 3.48 | % | 3.51 | % | ||||||||||||||
| Efficiency ratio | 60.47 | 66.58 | ||||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 15.56 | ||||||||||||||||
| Nonperforming loans to portfolio loans | 1.17 | 1.23 | ||||||||||||||||
| Shareholders’ equity to total assets | 11.49 | 11.75 | ||||||||||||||||
| Tangible common equity to tangible assets* | 10.95 | 11.16 | ||||||||||||||||
| Return on average assets (annualized) | 0.89 | 0.62 | ||||||||||||||||
| Return on average common equity (annualized) | 7.67 | 5.07 | ||||||||||||||||
| Return on average tangible common equity (annualized)** | 8.10 | 5.38 | ||||||||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | ||||||||||||||||||
| * This is a Non-GAAP financial measure. Please see Table 7 for a reconciliation to the most directly comparable GAAP based measure. | ||||||||||||||||||
| ** This is a Non-GAAP financial measure. | ||||||||||||||||||
| Please see accompanying tables for additional financial information. | ||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 2 | ||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
| (Dollars in thousands) | |||||||||||
| June 30, | December 31, | June 30, | |||||||||
| 2017 | 2016 | 2016 | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 37,898 | $ | 36,831 | $ | 35,822 | |||||
| Interest-bearing deposits | 41,941 | 38,819 | 32,266 | ||||||||
| Cash and cash equivalents | 79,839 | 75,650 | 68,088 | ||||||||
| Securities held to maturity (fair values of $10,632, $10,677 and $12,660, respectively) | 10,382 | 10,443 | 12,161 | ||||||||
| Securities available for sale (amortized cost of $424,172, $427,113 and $406,427, respectively) | 424,031 | 426,218 | 410,135 | ||||||||
| Loans held for sale | 6,036 | 4,386 | 7,090 | ||||||||
| Loans receivable | 1,965,598 | 1,872,746 | 1,814,287 | ||||||||
| Less: Allowance for loan losses | (27,318 | ) | (27,546 | ) | (26,876 | ) | |||||
| Net loans receivable | 1,938,280 | 1,845,200 | 1,787,411 | ||||||||
| Accrued interest receivable | 6,328 | 6,194 | 5,730 | ||||||||
| Non-hedge derivative asset | 2,698 | 1,235 | 5,163 | ||||||||
| Premises and equipment, net | 21,901 | 22,808 | 22,971 | ||||||||
| Other real estate | 0 | 350 | 2,122 | ||||||||
| Goodwill | 13,545 | 13,545 | 13,467 | ||||||||
| Other intangible assets, net | 5,727 | 5,790 | 5,934 | ||||||||
| Other assets | 64,168 | 63,573 | 61,990 | ||||||||
| Total assets | $ | 2,572,935 | $ | 2,475,392 | $ | 2,402,262 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing demand | $ | 557,159 | $ | 551,709 | $ | 545,421 | |||||
| Interest-bearing demand | 176,724 | 152,656 | 160,886 | ||||||||
| Money market accounts | 599,122 | 567,058 | 547,415 | ||||||||
| Savings accounts | 57,905 | 56,410 | 55,209 | ||||||||
| Time deposits of $100,000 or more | 403,918 | 360,307 | 323,137 | ||||||||
| Other time deposits | 219,006 | 257,878 | 270,797 | ||||||||
| Total deposits | 2,013,834 | 1,946,018 | 1,902,865 | ||||||||
| Accrued interest payable | 1,259 | 1,132 | 931 | ||||||||
| Non-hedge derivative liability | 2,698 | 1,235 | 5,163 | ||||||||
| Other liabilities | 9,500 | 10,171 | 10,982 | ||||||||
| Other borrowings | 203,705 | 183,814 | 153,568 | ||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | ||||||||
| Total liabilities | 2,277,389 | 2,188,763 | 2,119,902 | ||||||||
| Shareholders’ equity | |||||||||||
| Common stock – $1 par value; 40,000,000 shares authorized; | |||||||||||
| 21,260,352, 21,230,714 and 21,223,613 shares issued, respectively | 21,260 | 21,231 | 21,224 | ||||||||
| Additional paid-in capital | 123,772 | 123,112 | 122,293 | ||||||||
| Retained earnings | 192,961 | 184,840 | 177,373 | ||||||||
| Accumulated other comprehensive (loss) gain | (292 | ) | (907 | ) | 1,503 | ||||||
| Treasury stock, at cost, 2,574,079, 2,555,987 and 2,472,830 shares, respectively | (42,155 | ) | (41,647 | ) | (40,033 | ) | |||||
| Total shareholders’ equity | 295,546 | 286,629 | 282,360 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,572,935 | $ | 2,475,392 | $ | 2,402,262 | |||||
| SOUTHWEST BANCORP, INC. | Table 3 | |||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the three months ended | For the six months | |||||||||||||||||
| June 30, | March 31, | June 30, | ended June 30, | |||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Interest income | ||||||||||||||||||
| Loans | $ | 22,562 | $ | 20,944 | $ | 20,031 | $ | 43,506 | $ | 40,061 | ||||||||
| Investment securities | 2,035 | 2,052 | 1,962 | 4,087 | 3,927 | |||||||||||||
| Other interest-earning assets | 111 | 75 | 51 | 186 | 104 | |||||||||||||
| Total interest income | 24,708 | 23,071 | 22,044 | 47,779 | 44,092 | |||||||||||||
| Interest expense | ||||||||||||||||||
| Interest-bearing deposits | 2,124 | 1,840 | 1,428 | 3,964 | 2,735 | |||||||||||||
| Other borrowings | 610 | 478 | 342 | 1,088 | 651 | |||||||||||||
| Subordinated debentures | 604 | 590 | 579 | 1,194 | 1,171 | |||||||||||||
| Total interest expense | 3,338 | 2,908 | 2,349 | 6,246 | 4,557 | |||||||||||||
| Net interest income | 21,370 | 20,163 | 19,695 | 41,533 | 39,535 | |||||||||||||
| Provision for loan losses | 1,729 | 1,776 | 10 | 3,505 | 4,385 | |||||||||||||
| Net interest income after provision for loan losses | 19,641 | 18,387 | 19,685 | 38,028 | 35,150 | |||||||||||||
| Noninterest income | ||||||||||||||||||
| Service charges and fees | 2,800 | 2,681 | 2,556 | 5,481 | 5,105 | |||||||||||||
| Gain on sales of mortgage loans | 695 | 552 | 722 | 1,247 | 1,123 | |||||||||||||
| Gain on sale/call of investment securities, net | – | 451 | 165 | 451 | 291 | |||||||||||||
| Other noninterest income | 1,026 | 1,196 | 428 | 2,222 | 767 | |||||||||||||
| Total noninterest income | 4,521 | 4,880 | 3,871 | 9,401 | 7,286 | |||||||||||||
| Noninterest expense | ||||||||||||||||||
| Salaries and employee benefits | 9,675 | 9,900 | 9,587 | 19,575 | 18,929 | |||||||||||||
| Occupancy | 2,318 | 2,373 | 2,669 | 4,691 | 5,340 | |||||||||||||
| Data processing | 459 | 409 | 430 | 868 | 900 | |||||||||||||
| FDIC and other insurance | 273 | 273 | 432 | 546 | 800 | |||||||||||||
| Other real estate, net | 50 | 3 | 8 | 53 | 21 | |||||||||||||
| Provision (credit) for unfunded loan commitments | 30 | (388 | ) | (263 | ) | (358 | ) | (48 | ) | |||||||||
| General and administrative | 2,350 | 2,733 | 2,405 | 5,083 | 5,322 | |||||||||||||
| Total noninterest expense | 15,155 | 15,303 | 15,268 | 30,458 | 31,264 | |||||||||||||
| Income before taxes | 9,007 | 7,964 | 8,288 | 16,971 | 11,172 | |||||||||||||
| Taxes on income | 3,189 | 2,685 | 2,876 | 5,874 | 3,891 | |||||||||||||
| Net income | $ | 5,818 | $ | 5,279 | $ | 5,412 | $ | 11,097 | $ | 7,281 | ||||||||
| Pre-tax, pre-provision income* | $ | 10,766 | $ | 9,352 | $ | 8,035 | $ | 20,118 | $ | 15,509 | ||||||||
| Basic earnings per common share | $ | 0.31 | $ | 0.28 | $ | 0.29 | $ | 0.59 | $ | 0.38 | ||||||||
| Diluted earnings per common share | 0.31 | 0.28 | 0.28 | 0.59 | 0.38 | |||||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.08 | 0.16 | 0.16 | |||||||||||||
| *This is a non-GAAP financial measure. Pre-tax, pre-provision income is calculated as follows: | ||||||||||||||||||
| Net income + Taxes on income + Provision (credit) for loan losses + Provision (credit) for unfunded loan commitments | ||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 4 | |||||||||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||||||
| Assets | ||||||||||||||||||||
| Loans | $ | 1,940,684 | 4.66 | % | $ | 1,899,047 | 4.47 | % | $ | 1,799,591 | 4.48 | % | ||||||||
| Investment securities | 435,091 | 1.88 | 431,542 | 1.93 | 428,275 | 1.84 | ||||||||||||||
| Other interest-earning assets | 54,634 | 0.81 | 56,089 | 0.54 | 48,569 | 0.42 | ||||||||||||||
| Total interest-earning assets | 2,430,409 | 4.08 | 2,386,678 | 3.92 | 2,276,435 | 3.89 | ||||||||||||||
| Other assets | 101,033 | 102,331 | 103,566 | |||||||||||||||||
| Total assets | $ | 2,531,442 | $ | 2,489,009 | $ | 2,380,001 | ||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Interest-bearing demand deposits | $ | 178,206 | 0.20 | % | $ | 187,269 | 0.19 | % | $ | 165,011 | 0.16 | % | ||||||||
| Money market accounts | 598,346 | 0.55 | 573,364 | 0.33 | 537,734 | 0.25 | ||||||||||||||
| Savings accounts | 57,749 | 0.13 | 58,021 | 0.13 | 54,808 | 0.13 | ||||||||||||||
| Time deposits | 616,870 | 0.78 | 611,170 | 0.84 | 589,029 | 0.69 | ||||||||||||||
| Total interest-bearing deposits | 1,451,171 | 0.59 | 1,429,824 | 0.52 | 1,346,582 | 0.43 | ||||||||||||||
| Other borrowings | 180,920 | 1.35 | 174,362 | 1.11 | 141,623 | 0.97 | ||||||||||||||
| Subordinated debentures | 46,393 | 5.21 | 46,393 | 5.09 | 46,393 | 4.99 | ||||||||||||||
| Total interest-bearing liabilities | 1,678,484 | 0.80 | 1,650,579 | 0.71 | 1,534,598 | 0.62 | ||||||||||||||
| Noninterest-bearing demand deposits | 545,896 | 536,101 | 547,963 | |||||||||||||||||
| Other liabilities | 12,630 | 13,070 | 13,598 | |||||||||||||||||
| Shareholders’ equity | 294,432 | 289,259 | 283,842 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,531,442 | $ | 2,489,009 | $ | 2,380,001 | ||||||||||||||
| Net interest income and spread | 3.28 | % | 3.21 | % | 3.27 | % | ||||||||||||||
| Net interest margin (1) | 3.53 | % | 3.43 | % | 3.48 | % | ||||||||||||||
| Average interest-earning assets | ||||||||||||||||||||
| to average interest-bearing liabilities | 144.80 | % | 144.60 | % | 148.34 | % | ||||||||||||||
| (1) Net interest margin = annualized net interest income / average interest-earning assets | ||||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 5 | ||||||||||||
| UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE | |||||||||||||
| (Dollars in thousands) | |||||||||||||
| For the six months ended June 30, | |||||||||||||
| 2017 | 2016 | ||||||||||||
| Average | Average | Average | Average | ||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||
| Assets | |||||||||||||
| Loans | $ | 1,919,981 | 4.57 | % | $ | 1,794,291 | 4.49 | % | |||||
| Investment securities | 433,326 | 1.90 | 420,291 | 1.88 | |||||||||
| Other interest-earning assets | 55,358 | 0.68 | 49,800 | 0.42 | |||||||||
| Total interest-earning assets | 2,408,665 | 4.00 | 2,264,382 | 3.92 | |||||||||
| Other assets | 101,679 | 105,720 | |||||||||||
| Total assets | $ | 2,510,344 | $ | 2,370,102 | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||
| Interest-bearing demand deposits | $ | 182,712 | 0.20 | % | $ | 162,825 | 0.16 | % | |||||
| Money market accounts | 585,924 | 0.44 | 540,267 | 0.24 | |||||||||
| Savings accounts | 57,884 | 0.13 | 55,321 | 0.13 | |||||||||
| Time deposits | 614,037 | 0.81 | 576,621 | 0.67 | |||||||||
| Total interest-bearing deposits | 1,440,557 | 0.55 | 1,335,034 | 0.41 | |||||||||
| Other borrowings | 177,659 | 1.23 | 129,397 | 1.01 | |||||||||
| Subordinated debentures | 46,393 | 5.15 | 47,469 | 4.93 | |||||||||
| Total interest-bearing liabilities | 1,664,609 | 0.76 | 1,511,900 | 0.61 | |||||||||
| Noninterest-bearing demand deposits | 541,025 | 555,493 | |||||||||||
| Other liabilities | 12,850 | 14,184 | |||||||||||
| Shareholders’ equity | 291,860 | 288,525 | |||||||||||
| Total liabilities and shareholders’ equity | $ | 2,510,344 | $ | 2,370,102 | |||||||||
| Net interest income and spread | 3.24 | % | 3.31 | % | |||||||||
| Net interest margin (1) | 3.48 | % | 3.51 | % | |||||||||
| Average interest-earning assets | |||||||||||||
| to average interest-bearing liabilities | 144.70 | % | 149.77 | % | |||||||||
| (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) | ||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||
| LOAN COMPOSITION | ||||||||||||||||||
| Real estate mortgage: | ||||||||||||||||||
| Commercial | $ | 961,085 | $ | 925,458 | $ | 882,071 | $ | 893,807 | $ | 862,287 | $ | 878,822 | ||||||
| One-to-four family residential | 241,140 | 210,495 | 199,123 | 193,678 | 183,693 | 158,078 | ||||||||||||
| Real estate construction: | ||||||||||||||||||
| Commercial | 182,620 | 193,937 | 199,113 | 184,211 | 175,805 | 156,454 | ||||||||||||
| One-to-four family residential | 14,523 | 18,426 | 20,946 | 22,460 | 20,347 | 24,202 | ||||||||||||
| Commercial | 554,094 | 570,001 | 556,248 | 566,403 | 558,472 | 543,822 | ||||||||||||
| Installment and consumer | 18,172 | 18,126 | 19,631 | 19,553 | 20,773 | 20,506 | ||||||||||||
| Total loans, including held for sale | 1,971,634 | 1,936,443 | 1,877,132 | 1,880,112 | 1,821,377 | 1,781,884 | ||||||||||||
| Less allowance for loan losses | (27,318 | ) | (27,543 | ) | (27,546 | ) | (28,452 | ) | (26,876 | ) | (27,168 | ) | ||||||
| Total loans, net | $ | 1,944,316 | $ | 1,908,900 | $ | 1,849,586 | $ | 1,851,660 | $ | 1,794,501 | $ | 1,754,716 | ||||||
| LOANS BY SEGMENT | ||||||||||||||||||
| Oklahoma banking**** | $ | 1,193,108 | $ | 1,153,417 | $ | 1,095,930 | $ | 1,117,716 | $ | 1,085,986 | $ | 1,060,482 | ||||||
| Texas banking | 636,709 | 639,945 | 636,643 | 605,682 | 577,333 | 560,421 | ||||||||||||
| Kansas banking | 141,817 | 143,081 | 144,559 | 156,714 | 158,058 | 160,981 | ||||||||||||
| Total loans | $ | 1,971,634 | $ | 1,936,443 | $ | 1,877,132 | $ | 1,880,112 | $ | 1,821,377 | $ | 1,781,884 | ||||||
| NONPERFORMING LOANS BY TYPE | ||||||||||||||||||
| Construction & development | $ | 579 | $ | 970 | $ | 970 | $ | 1,073 | $ | 1,436 | $ | 1,444 | ||||||
| Commercial real estate | 6,694 | 570 | 6,471 | 7,620 | 3,894 | 3,830 | ||||||||||||
| Commercial | 12,884 | 12,183 | 6,142 | 12,791 | 13,800 | 13,461 | ||||||||||||
| One-to-four family residential | 2,797 | 2,838 | 2,904 | 2,982 | 3,120 | 3,448 | ||||||||||||
| Consumer | 106 | 30 | 123 | 58 | 75 | 84 | ||||||||||||
| Total nonperforming loans | $ | 23,060 | $ | 16,591 | $ | 16,610 | $ | 24,524 | $ | 22,325 | $ | 22,267 | ||||||
| NONPERFORMING LOANS BY SEGMENT | ||||||||||||||||||
| Oklahoma banking | $ | 12,920 | $ | 7,479 | $ | 12,006 | $ | 12,275 | $ | 9,268 | $ | 7,978 | ||||||
| Texas banking | 10,035 | 8,987 | 4,140 | 11,805 | 12,586 | 13,521 | ||||||||||||
| Kansas banking | 105 | 125 | 464 | 444 | 471 | 768 | ||||||||||||
| Total nonperforming loans | $ | 23,060 | $ | 16,591 | $ | 16,610 | $ | 24,524 | $ | 22,325 | $ | 22,267 | ||||||
| OTHER REAL ESTATE BY TYPE | ||||||||||||||||||
| Construction & development | $ | – | $ | – | $ | – | $ | 1,756 | $ | 1,962 | $ | 2,060 | ||||||
| Commercial real estate | – | 350 | 350 | 350 | 160 | 214 | ||||||||||||
| Total other real estate | $ | – | $ | 350 | $ | 350 | $ | 2,106 | $ | 2,122 | $ | 2,274 | ||||||
| OTHER REAL ESTATE BY SEGMENT | ||||||||||||||||||
| Oklahoma banking | $ | – | $ | – | $ | – | $ | – | $ | 220 | $ | 274 | ||||||
| Texas banking | – | 350 | 350 | 2,106 | 1,902 | 2,000 | ||||||||||||
| Total other real estate | $ | – | $ | 350 | $ | 350 | $ | 2,106 | $ | 2,122 | $ | 2,274 | ||||||
| POTENTIAL PROBLEM LOANS BY TYPE | ||||||||||||||||||
| Construction & development | $ | 591 | $ | 588 | $ | 589 | $ | 588 | $ | – | $ | – | ||||||
| Commercial real estate | 9,059 | 12,167 | 13,831 | 12,212 | 33,472 | 36,216 | ||||||||||||
| Commercial | 17,852 | 27,372 | 27,621 | 30,555 | 29,537 | 29,931 | ||||||||||||
| One-to-four family residential | 1,194 | 1,954 | 1,980 | 2,119 | 1,353 | 2,275 | ||||||||||||
| Consumer | – | 2 | 2 | 2 | 2 | 38 | ||||||||||||
| Total potential problem loans | $ | 28,696 | $ | 42,083 | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | ||||||
| POTENTIAL PROBLEM LOANS BY SEGMENT | ||||||||||||||||||
| Oklahoma banking**** | $ | 15,785 | $ | 22,001 | $ | 20,258 | $ | 21,780 | $ | 43,895 | $ | 46,102 | ||||||
| Texas banking | 10,762 | 16,346 | 19,807 | 21,029 | 17,726 | 18,801 | ||||||||||||
| Kansas banking | 2,149 | 3,736 | 3,958 | 2,667 | 2,743 | 3,557 | ||||||||||||
| Total potential problem loans | $ | 28,696 | $ | 42,083 | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | ||||||
| ALLOWANCE ACTIVITY | ||||||||||||||||||
| Balance, beginning of period | $ | 27,543 | $ | 27,546 | $ | 28,452 | $ | 26,876 | $ | 27,168 | $ | 26,106 | ||||||
| Charge-offs | 2,241 | 2,157 | 2,108 | 626 | 538 | 3,725 | ||||||||||||
| Recoveries | 287 | 378 | 2,531 | 489 | 236 | 412 | ||||||||||||
| Net charge-offs (recoveries) | 1,954 | 1,779 | (423 | ) | 137 | 302 | 3,313 | |||||||||||
| Provision (credit) for loan losses | 1,729 | 1,776 | (1,329 | ) | 1,713 | 10 | 4,375 | |||||||||||
| Balance, end of period | $ | 27,318 | $ | 27,543 | $ | 27,546 | $ | 28,452 | $ | 26,876 | $ | 27,168 | ||||||
| NET CHARGE-OFFS BY TYPE | ||||||||||||||||||
| Construction & development | $ | (5 | ) | $ | – | $ | – | $ | – | $ | – | $ | – | |||||
| Commercial real estate | (34 | ) | $ | 1,847 | $ | (84 | ) | $ | 108 | $ | (44 | ) | $ | (187 | ) | |||
| Commercial | 1,953 | (105 | ) | (357 | ) | (64 | ) | 82 | 3,408 | |||||||||
| One-to-four family residential | (17 | ) | (55 | ) | (16 | ) | 44 | (12 | ) | 41 | ||||||||
| Consumer | 57 | 92 | 34 | 49 | 276 | 51 | ||||||||||||
| Total net charge-offs (recoveries) by type | $ | 1,954 | $ | 1,779 | $ | (423 | ) | $ | 137 | $ | 302 | $ | 3,313 | |||||
| NET CHARGE-OFFS BY SEGMENT | ||||||||||||||||||
| Oklahoma banking | $ | 1,095 | $ | 1,950 | $ | (178 | ) | $ | 34 | $ | 127 | $ | 458 | |||||
| Texas banking | 899 | 12 | (168 | ) | 180 | 211 | 952 | |||||||||||
| Kansas banking | (40 | ) | (183 | ) | (77 | ) | (77 | ) | (36 | ) | 1,903 | |||||||
| Total net charge-offs (recoveries) by segment | $ | 1,954 | $ | 1,779 | $ | (423 | ) | $ | 137 | $ | 302 | $ | 3,313 | |||||
| ****Due to immateriality, Colorado banking is included within Oklahoma banking. | ||||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 7 | ||||||||||||||||
| UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA | |||||||||||||||||
| (Dollars in thousands, except per share) | |||||||||||||||||
| 2017 | 2016 | ||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||
| PER SHARE DATA | |||||||||||||||||
| Basic earnings per common share | $ | 0.31 | $ | 0.28 | $ | 0.33 | $ | 0.23 | $ | 0.29 | $ | 0.10 | |||||
| Diluted earnings per common share | 0.31 | 0.28 | 0.33 | 0.23 | 0.28 | 0.10 | |||||||||||
| Common dividends declared per share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | |||||||||||
| Book value per common share | 15.82 | 15.57 | 15.35 | 15.19 | 15.06 | 14.81 | |||||||||||
| Tangible book value per share* | 14.98 | 14.72 | 14.50 | 14.33 | 14.20 | 13.97 | |||||||||||
| COMMON STOCK | |||||||||||||||||
| Shares issued | 21,260,352 | 21,275,434 | 21,230,714 | 21,223,895 | 21,223,613 | 21,225,034 | |||||||||||
| Less treasury shares | 2,574,079 | 2,586,412 | 2,555,987 | 2,538,510 | 2,472,830 | 1,939,989 | |||||||||||
| Outstanding shares | 18,686,273 | 18,689,022 | 18,674,727 | 18,685,385 | 18,750,783 | 19,285,045 | |||||||||||
| Diluted outstanding shares | 18,492,739 | 18,532,499 | 18,551,005 | 18,545,614 | 18,677,912 | 19,267,473 | |||||||||||
| OTHER FINANCIAL DATA | |||||||||||||||||
| Investment securities | $ | 434,413 | $ | 433,053 | $ | 436,661 | $ | 427,938 | $ | 422,296 | $ | 423,030 | |||||
| Loans held for sale | 6,036 | 4,980 | 4,386 | 7,899 | 7,010 | 1,803 | |||||||||||
| Portfolio loans | 1,965,598 | 1,931,463 | 1,872,746 | 1,872,213 | 1,814,367 | 1,780,081 | |||||||||||
| Total loans | 1,971,634 | 1,936,443 | 1,877,132 | 1,880,112 | 1,821,377 | 1,781,884 | |||||||||||
| Total assets | 2,572,935 | 2,522,594 | 2,475,392 | 2,468,042 | 2,402,262 | 2,360,819 | |||||||||||
| Total deposits | 2,013,834 | 1,977,265 | 1,946,018 | 1,947,924 | 1,902,865 | 1,895,248 | |||||||||||
| Other borrowings | 203,705 | 194,645 | 183,814 | 173,971 | 153,568 | 117,763 | |||||||||||
| Subordinated debentures | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | 46,393 | |||||||||||
| Total shareholders’ equity | 295,546 | 290,914 | 286,629 | 283,820 | 282,360 | 285,661 | |||||||||||
| Mortgage servicing portfolio | 463,849 | 458,961 | 460,646 | 453,988 | 443,568 | 434,340 | |||||||||||
| INTANGIBLE ASSET DATA | |||||||||||||||||
| Goodwill | $ | 13,545 | $ | 13,545 | $ | 13,545 | $ | 13,545 | $ | 13,467 | $ | 13,467 | |||||
| Core deposit intangible | 2,061 | 2,177 | 2,299 | 2,438 | 2,584 | 2,734 | |||||||||||
| Mortgage servicing rights | 3,666 | 3,516 | 3,491 | 3,381 | 3,350 | 3,411 | |||||||||||
| Total intangible assets | $ | 19,272 | $ | 19,238 | $ | 19,335 | $ | 19,364 | $ | 19,401 | $ | 19,612 | |||||
| Intangible amortization expense | $ | 197 | $ | 229 | $ | 275 | $ | 344 | $ | 350 | $ | 341 | |||||
| DEPOSIT COMPOSITION | |||||||||||||||||
| Non-interest bearing demand | $ | 557,159 | $ | 541,021 | $ | 551,709 | $ | 550,121 | $ | 545,421 | $ | 552,499 | |||||
| Interest-bearing demand | 176,724 | 177,676 | 152,656 | 146,583 | 160,886 | 168,210 | |||||||||||
| Money market accounts | 599,122 | 591,368 | 567,058 | 576,550 | 547,415 | 540,323 | |||||||||||
| Savings accounts | 57,905 | 58,387 | 56,410 | 54,849 | 55,209 | 56,235 | |||||||||||
| Time deposits of $100,000 or more | 403,918 | 353,244 | 360,307 | 347,976 | 323,137 | 314,496 | |||||||||||
| Other time deposits | 219,006 | 255,569 | 257,878 | 271,845 | 270,797 | 263,485 | |||||||||||
| Total deposits** | $ | 2,013,834 | $ | 1,977,265 | $ | 1,946,018 | $ | 1,947,924 | $ | 1,902,865 | $ | 1,895,248 | |||||
| OFFICES AND EMPLOYEES | |||||||||||||||||
| FTE Employees | 388 | 380 | 387 | 393 | 410 | 411 | |||||||||||
| Banking Centers | 30 | 30 | 30 | 30 | 32 | 32 | |||||||||||
| Loan production offices | 1 | 1 | 1 | 1 | 1 | 0 | |||||||||||
| Assets per employee | $ | 6,631 | $ | 6,638 | $ | 6,396 | $ | 6,280 | $ | 5,859 | $ | 5,744 | |||||
| *This is a non-GAAP financial measure. | |||||||||||||||||
| **Calculation of non-brokered deposits and core funding (non-GAAP financial measures) | |||||||||||||||||
| Total deposits | $ | 2,013,834 | $ | 1,977,265 | $ | 1,946,018 | $ | 1,947,924 | $ | 1,902,865 | $ | 1,895,248 | |||||
| Less: | |||||||||||||||||
| Brokered time deposits | 84,229 | 59,698 | 64,652 | 65,398 | 61,709 | 55,901 | |||||||||||
| Other brokered deposits | 211,866 | 205,004 | 206,590 | 214,175 | 175,367 | 140,372 | |||||||||||
| Non-brokered deposits | $ | 1,717,739 | $ | 1,712,563 | $ | 1,674,776 | $ | 1,668,351 | $ | 1,665,789 | $ | 1,698,975 | |||||
| Plus: | |||||||||||||||||
| Sweep repurchase agreements | 11,705 | 9,645 | 45,814 | 46,971 | 42,568 | 42,763 | |||||||||||
| Core funding | $ | 1,729,444 | $ | 1,722,208 | $ | 1,720,590 | $ | 1,715,322 | $ | 1,708,357 | $ | 1,741,738 | |||||
| Balance sheet amounts are as of period end unless otherwise noted. | |||||||||||||||||
| SOUTHWEST BANCORP, INC. | Table 8 | ||||||||||||||||||||||
| UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||||||
| Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||
| Return on average assets (annualized) | 0.92 | % | 0.86 | % | 1.00 | % | 0.70 | % | 0.91 | % | 0.32 | % | |||||||||||
| Return on average common equity (annualized) | 7.93 | 7.40 | 8.59 | 5.97 | 7.67 | 2.56 | |||||||||||||||||
| Return on average tangible common equity | |||||||||||||||||||||||
| (annualized)* | 8.37 | 7.83 | 9.10 | 6.33 | 8.13 | 2.71 | |||||||||||||||||
| Net interest margin (annualized) | 3.53 | 3.43 | 3.40 | 3.42 | 3.48 | 3.54 | |||||||||||||||||
| Total dividends declared to net income | 25.70 | 28.33 | 24.23 | 35.14 | 28.35 | 84.66 | |||||||||||||||||
| Effective tax rate | 35.41 | 33.71 | 37.38 | 34.45 | 34.70 | 35.19 | |||||||||||||||||
| Efficiency ratio | 57.77 | 63.30 | 64.34 | 66.09 | 65.70 | 67.48 | |||||||||||||||||
| NONPERFORMING ASSETS | |||||||||||||||||||||||
| Nonaccrual loans | $ | 22,929 | $ | 16,481 | $ | 16,267 | $ | 24,109 | $ | 22,259 | $ | 22,161 | |||||||||||
| 90 days past due and accruing | 131 | 110 | 343 | 415 | 66 | 106 | |||||||||||||||||
| Total nonperforming loans | 23,060 | 16,591 | 16,610 | 24,524 | 22,325 | 22,267 | |||||||||||||||||
| Other real estate | – | 350 | 350 | 2,106 | 2,122 | 2,274 | |||||||||||||||||
| Total nonperforming assets | $ | 23,060 | $ | 16,941 | $ | 16,960 | $ | 26,630 | $ | 24,447 | $ | 24,541 | |||||||||||
| Potential problem loans | $ | 28,696 | $ | 42,083 | $ | 44,023 | $ | 45,476 | $ | 64,364 | $ | 68,460 | |||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||||
| Nonperforming assets to portfolio loans and | |||||||||||||||||||||||
| other real estate | 1.17 | % | 0.88 | % | 0.91 | % | 1.42 | % | 1.35 | % | 1.38 | % | |||||||||||
| Nonperforming loans to portfolio loans | 1.17 | 0.86 | 0.89 | 1.31 | 1.23 | 1.25 | |||||||||||||||||
| Allowance for loan losses to portfolio loans | 1.39 | 1.43 | 1.47 | 1.52 | 1.48 | 1.53 | |||||||||||||||||
| Allowance for loan losses to | |||||||||||||||||||||||
| nonperforming loans | 118.46 | 166.01 | 165.84 | 116.02 | 120.39 | 122.01 | |||||||||||||||||
| Net loan charge-offs (recoveries) to average portfolio | |||||||||||||||||||||||
| loans (annualized) | 0.40 | 0.38 | (0.09 | ) | 0.03 | 0.07 | 0.75 | ||||||||||||||||
| CAPITAL RATIOS | |||||||||||||||||||||||
| Average total shareholders’ equity to | |||||||||||||||||||||||
| average assets | 11.63 | % | 11.62 | % | 11.62 | % | 11.75 | % | 11.93 | % | 12.42 | % | |||||||||||
| Leverage ratio | 12.95 | 12.98 | 13.02 | 13.07 | 13.18 | 13.45 | |||||||||||||||||
| Common equity tier 1 capital | 12.26 | 12.20 | 12.36 | 11.95 | 12.22 | 12.13 | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 14.23 | 14.19 | 14.40 | 13.95 | 14.28 | 14.14 | |||||||||||||||||
| Total capital to risk-weighted assets | 15.48 | 15.44 | 15.66 | 15.21 | 15.53 | 15.39 | |||||||||||||||||
| Tangible common equity to tangible assets** | 10.95 | 10.98 | 11.01 | 10.92 | 11.16 | 11.49 | |||||||||||||||||
| REGULATORY CAPITAL DATA | |||||||||||||||||||||||
| Common equity tier 1 capital | $ | 280,927 | $ | 276,205 | $ | 272,882 | $ | 268,045 | $ | 266,612 | $ | 270,564 | |||||||||||
| Tier I capital | 325,927 | 321,205 | 317,882 | 313,045 | 311,612 | 315,326 | |||||||||||||||||
| Total capital | 354,675 | 349,615 | 345,597 | 341,196 | 338,968 | 343,287 | |||||||||||||||||
| Total risk adjusted assets | 2,291,118 | 2,263,998 | 2,207,508 | 2,243,895 | 2,182,051 | 2,230,326 | |||||||||||||||||
| Average total assets | 2,516,167 | 2,474,481 | 2,440,918 | 2,395,991 | 2,363,834 | 2,344,259 | |||||||||||||||||
| *This is a non-GAAP financial measure. | |||||||||||||||||||||||
| **Calculation of tangible common equity to tangible assets (non-GAAP financial measure) | |||||||||||||||||||||||
| Total shareholders’ equity | $ | 295,546 | $ | 290,914 | $ | 286,629 | $ | 283,820 | $ | 282,360 | $ | 285,661 | |||||||||||
| Less goodwill and core deposit intangible | 15,606 | 15,722 | 15,844 | 15,983 | 16,051 | 16,201 | |||||||||||||||||
| Tangible common equity | $ | 279,940 | $ | 275,192 | $ | 270,785 | $ | 267,837 | $ | 266,309 | $ | 269,460 | |||||||||||
| Total assets | $ | 2,572,935 | $ | 2,522,594 | $ | 2,475,392 | $ | 2,468,042 | $ | 2,402,262 | $ | 2,360,819 | |||||||||||
| Less goodwill and core deposit intangible | 15,606 | 15,722 | 15,844 | 15,983 | 16,051 | 16,201 | |||||||||||||||||
| Tangible assets | $ | 2,557,329 | $ | 2,506,872 | $ | 2,459,548 | $ | 2,452,059 | $ | 2,386,211 | $ | 2,344,618 | |||||||||||
| Total shareholders’ equity to total assets | 11.49 | % | 11.53 | % | 11.58 | % | 11.50 | % | 11.75 | % | 12.10 | % | |||||||||||
| Tangible common equity to tangible assets | 10.95 | % | 10.98 | % | 11.01 | % | 10.92 | % | 11.16 | % | 11.49 | % | |||||||||||
| Balance sheet amounts and ratios are as of period end unless otherwise noted. | |||||||||||||||||||||||
CONTACT: For additional information: Mark W. Funke President & CEO Joe T. Shockley, Jr. EVP & CFO (405) 372-2230