STILLWATER, Okla., Aug. 6 /PRNewswire-FirstCall/ -- Southwest
Bancorp, Inc. (NASDAQ:OKSB), ("Southwest"), today reported net
income available to common shareholders of $4.9 million, or $0.33
per diluted share for the second quarter 2009, compared to $4.2
million, or $0.28 per diluted share for the second quarter of 2008.
Net income available to common shareholders for the six months
ended June 30, 2009 was $5.2 million, or $0.35 per diluted share,
compared to $9.4 million, or $0.64 per diluted shares, for the
prior year. At June 30, 2009, total assets were $3.0 billion. The
second quarter results reflect $3.3 million in other income
recorded on an FDIC-assisted acquisition in Kansas and $1.9 million
in interest income recorded upon our successful resolution of a
large problem credit. (Logo:
http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGO) Rick
Green, Southwest Bancorp's President and Chief Executive Officer,
stated, "An important element of our strategic vision calls for
careful expansion of community banking operations in Kansas,
Oklahoma, and Texas. In 2007, we acquired Bank of Kansas,
headquartered in the Hutchinson market. This year, Bank of Kansas
acquired assets and assumed liabilities of First National Bank of
Anthony ("FNBA"), Anthony, Kansas, in an FDIC-assisted transaction
with loss sharing. The loss sharing agreement requires the FDIC to
cover 80% of any net losses on covered loans and related assets up
to $35.0 million, and 95% of net losses above $35.0 million. In
June, we recorded a one-time pre-tax gain of $3.3 million as a
result of fair value accounting for the transaction using outside
valuations of the acquired assets and assumed deposits. We
anticipate that this transaction will be accretive to future
earnings, but we cannot estimate the timing or amount of this
accretion. "The new Kansas acquisition gives Bank of Kansas six
additional community banking offices in Kansas, $117.1 million in
loans and $135.0 million in deposits The acquired loans include our
current estimate of $33.1 million loss share receivable from the
FDIC. "In the first half of 2009, we increased portfolio loans
(excluding FNBA portfolio loans) by $95.9 million, up 4%, from
year-end 2008, and increased our core deposits (total deposits less
time deposits of $100,000 or more and brokered deposits) by $67.1
million, up 5% (excluding FNBA core deposits). At June 30, 2009,
our shareholders' equity totaled $305.4 million, up $3.2 million,
or 1%, from year-end 2008, and our capital ratios exceeded the
levels for regulatory classification as "well-capitalized".
"Nonperforming assets (excluding FNBA nonperforming assets) were
essentially unchanged from March 31, 2009 at $88.2 million." Please
review the following "Financial Overview" and the accompanying
tables for important additional information regarding our results
and plans. Financial Overview Condition: Total assets were $3.0
billion at June 30, 2009, an increase of 6% from December 31, 2008.
At June 30, 2009 total loans were $2.7 billion, an increase of 7%
from December 31, 2008. At June 30, 2009, the allowance for loan
losses was $51.8 million, up 65% from June 30, 2008 and up 30% from
year-end 2008; and represented 1.91% of portfolio loans versus
1.32% at June 30, 2008 and 1.59% at December 31, 2008. The
methodology used to determine the appropriate amount of the
allowance for loan losses at a particular time includes
consideration of risk factors related to Southwest and to our
markets, including regular assessments of national and local
economic conditions and trends. For the six months ended June 30,
2009, the provision for loan losses increased by $12.9 million, or
238%, over the provision for the comparable period ended June 30,
2008. Nonperforming assets to portfolio loans and other real estate
owned were 3.83% at June 30, 2009 compared to 1.45% at June 30,
2008 and 2.80% at December 31, 2008. A breakdown of portfolio loans
and nonperforming assets by type are shown in the following table:
Percentage of total Percentage of (dollars in Portfolio portfolio
Nonperforming nonperforming thousands) loans loans assets assets
----- ----- ------ ------ Real estate construction $739,433 27.34%
$42,977 41.40% Commercial real estate 1,223,496 45.24 30,253 29.14
Commercial 569,336 21.06 11,022 10.62 Other real estate owned - -
8,941 8.61 Residential real estate mortgages 126,887 4.69 10,320
9.94 Other consumer loans 45,174 1.67 307 0.29 ------ ---- --- ----
Total $2,704,326 100.00% $103,820 100.00% Included above are $15.6
million of nonperforming assets acquired from FNBA, which are
subject to protection under the existing loss share agreements.
Nonaccrual loans, which are the majority of nonperforming assets,
were $82.8 million as of June 30, 2009, an increase of $9.4 million
from March 31, 2009 and $23.5 million from December 31, 2008. These
loans are carried at their estimated collectible amounts and no
longer accrue interest. Loans 90 days or more past due, another
component of nonperforming assets, increased $1.5 million from
March 31, 2009 and increased $7.4 million from December 31, 2008.
These loans are deemed to have sufficient collateral and are in the
process of being collected. Performing loans considered potential
problem loans, which are not included in the past due, nonaccrual,
or restructured categories, but for which known information about
possible credit problems cause management to be uncertain as to the
continued ability of the borrowers to comply with the present loan
repayment terms in future periods, amounted to approximately $184.1
million at June 30, 2009, an increase of $50.2 million from March
31, 2009 and $52.5 million from December 31, 2008. Included are
$6.0 million of potential problem loans acquired from FNBA, which
are subject to protection under the existing loss share agreements.
These loans are subject to continuing management attention and are
considered by management in determining the level of the allowance
for loan losses. Total deposits were $2.5 billion at June 30, 2009,
up $272.2 million from December 31, 2008. At June 30, 2009,
wholesale funding, including FHLB borrowings, federal funds
purchased, and brokered deposits, accounted for 17% of total
funding compared to 24% at December 31, 2008. At June 30, 2009
Southwest exceeded all applicable regulatory capital requirements,
having a total risk-based capital ratio of 13.92%, a Tier 1
risk-based capital ratio of 12.67%, and a leverage ratio of 12.70%.
Southwest and each of its banking subsidiaries met the criteria for
regulatory classification as "well-capitalized". Southwest's
capital exceeded the minimum to be classified as "well-capitalized"
by $115.5 million. Southwest's ratio of tangible common equity to
tangible assets was 7.65% as June 30, 2009. (The tangible common
equity ratio is a non-GAAP measure used by Southwest and analysts
based on shareholders' equity as defined by generally accepted
accounting principles minus goodwill and equity that does not
benefit common shareholders such as preferred equity and equity
provided by the U.S. Treasury's Capital Purchase Program. See table
6.) Designation as a well-capitalized institution under regulations
does not constitute a recommendation or endorsement by Federal bank
regulators. Year-to-date Results: Summary: The decrease in our net
income available to common shareholders from 2008 is the result of
a $12.9 million increase in the provision for loan losses, a $2.3
million increase in FDIC insurance and other insurance expense, and
$2.1 million in dividends on the preferred stock that we issued in
December 2008, offset in part by a $4.0 million decrease in
personnel costs, a $1.5 million decrease in general and
administrative expenses, a $1.5 million decrease in income tax
expense, a $3.1 million increase in other noninterest income, a
$1.7 million increase in gain on sale of investment securities, and
a $1.4 million increase in net interest income. Net Interest
Income: Net interest income totaled $45.5 million for the first six
month of 2009 compared to $44.1 million for the first six months of
2008. Year-to-date net interest margin was 3.20% compared to 3.42%
in 2008. Included in the second quarter net interest income is a
one-time recovery of $1.9 million in interest from the successful
resolution of a nonperforming loan. Net interest margin would have
been 13 basis points lower without this recovery. Provision for
Loan Losses: The provision for loan losses totaled $18.4 million
for the first six months of 2009 compared to $5.4 million for the
first six months of 2008. Net charge offs totaled $6.4 million, or
0.51% (annualized) of average portfolio loans, year-to-date as of
June 30, 2009, compared to $3.7 million, or 0.32% (annualized) of
average portfolio loans, for the same period in the prior year.
Noninterest Income: For the first six months of 2009, noninterest
income totaled $13.7 million compared to $8.6 million for 2008. The
increase in noninterest income from 2008 was the result of a $1.7
million increase in gain on sale of investment securities and a
$3.1 million increase in other noninterest income, which includes
the $3.3 million gain on acquisition. Noninterest Expense: For the
first six months of 2009, noninterest expense totaled $29.3 million
compared to $32.2 million for 2008. The decrease consists mainly of
a $4.0 million decrease in personnel expense, a $1.1 million
decrease in other general and administrative expenses, and a
$458,000 decrease in provision for unfunded loan commitments,
offset in part by a $2.3 million increase in FDIC and other
insurance expense and a $460,000 increase in occupancy expense. The
efficiency ratio improved to 49.45% for the first six months of
2009 from 60.95% for the first six months of 2008. Second Quarter
Results: Summary: The $748,000 increase in our net income available
to common shareholders compared to the second quarter of 2008 was
the result of a $3.3 million increase in noninterest income, a $2.2
million increase in net interest income and a $1.6 million decrease
in noninterest expenses, offset in party by a $4.3 million increase
in the provision for loan losses, a $1.0 million increase in income
tax expense, and $1.0 million in quarterly dividends on the
preferred stock that we issued in December 2008. Net Interest
Income: Net interest income totaled $24.5 million for the second
quarter of 2009 compared to $22.3 million for the second quarter of
2008. Net interest margin was 3.41% for the second quarter of 2009
compared to 3.38% for the second quarter of 2008. Included in
quarterly net interest income is a one-time recovery of $1.9
million in interest as a nonperforming loan was resolved. Net
interest margin would have been 26 basis points lower without this
recovery. Provision for Loan Losses: The provision for loan losses
totaled $7.5 million for the second quarter of 2009 compared to
$3.2 million for the second quarter of 2008. Net charge offs
totaled $2.0 million, or 0.31% (annualized) of average portfolio
loans for the second quarter of 2009, compared to $1.8 million, or
0.31% (annualized) of average portfolio loans, for the second
quarter of 2008. Noninterest Income: Noninterest income totaled
$7.3 million for the second quarter of 2009 compared to $4.0
million for the second quarter of 2008. The increase was primarily
the result of a $3.3 million gain recognized on the FDIC-assisted
acquisition. Noninterest Expense: Noninterest expense totaled $14.7
million for the second quarter of 2009, a $1.6 million decrease
from the second quarter 2008. The decrease consists mainly of a
$2.0 million decrease in personnel expense, a $1.2 million decrease
in other general and administrative expenses, and a $403,000
decrease in provision for unfunded loan commitments, offset in part
by a $1.8 million increase in FDIC and other insurance expense. The
efficiency ratio for the second quarter of 2009 improved to 46.32%
from 62.23% for the second quarter of 2008. Southwest Bancorp and
Subsidiaries Southwest Bancorp is the financial holding company for
Stillwater National Bank and Trust Company, Bank of Kansas, SNB
Capital Corporation, Healthcare Strategic Support, Inc., and
Business Consulting Group, Inc. Through its subsidiaries, Southwest
offers commercial and consumer lending, deposit, and investment
services, and specialized cash management, consulting, and other
financial services from offices in Oklahoma City, Edmond,
Stillwater, Tulsa, and Chickasha, Oklahoma; Austin, Dallas, Houston
and San Antonio, Texas; and Anthony, Harper, Hutchinson, Mayfield,
Olathe, Overland Park, South Hutchinson, and Wichita, Kansas, and
on the Internet, through SNB DirectBanker . Southwest focuses on
converting its strategic vision into long-term shareholder value.
Our vision includes a commercial banking model and a community
banking model focused on more traditional banking operations in
Texas, Oklahoma, and Kansas. Southwest's strategic growth goals
include prudent growth from existing and additional commercial
banking offices in carefully selected markets and continued careful
expansion of community banking operations. We plan to reduce the
percentage of commercial real estate loans to total portfolio loans
in view of current economic conditions. Our plan focuses on
reductions in particular subcategories of commercial real estate
loans that are identified in our regular real estate market
reviews. In general, and with some exceptions regarding locations
and particular types of facilities, we do not intend to decrease
healthcare related commercial or mortgage lending or commercial
mortgage lending on owner-occupied properties that otherwise meet
our underwriting criteria. Southwest's common stock is traded on
the NASDAQ Global Select Market under the symbol OKSB. Southwest's
trust preferred securities are traded on the NASDAQ Global Select
Market under the symbol OKSBP. Forward-Looking Statements This
Press Release includes forward-looking statements that are subject
to risks and uncertainties. These forward-looking statements
include: statements of Southwest's goals, intentions, and
expectations; estimates of risks and of future costs and benefits;
expectations regarding future financial performance of Southwest
and its operating segments; assessments of loan quality, probable
loan losses, and the amount and timing of loan payoffs; liquidity,
contractual obligations, off-balance sheet risk and market risk or
interest rate risk; estimates of value of acquired assets,
deposits, and other liabilities; and statements of Southwest's
ability to achieve financial and other goals. These forward-looking
statements are subject to significant uncertainties because they
are based upon: the amount and time of future changes in interest
rates, market behavior, and other economic conditions; future laws
and regulations and accounting principles; and a variety of other
matters. Because of these uncertainties, the actual future results
may be materially different from the results indicated by these
forward-looking statements. In addition, Southwest's past growth
and performance do not necessarily indicate its future results.
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 Summary
Financial Data by Quarter-2009 and 2008 Table 6 Unaudited
Supplemental Analytical Data by Quarter-2009 and 2008 Table 7
SOUTHWEST BANCORP, INC. Table 1 UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share) Second Quarter First
Quarter QUARTERLY
----------------------------------------------------- HIGHLIGHTS %
% 2009 2008 Change 2009 Change ---- ---- -------- ---- --------
Operations Net interest income $24,456 $22,284 10% $21,038 16%
Provision for loan losses 7,477 3,190 134 10,882 (31) Noninterest
income 7,261 3,959 83 6,477 12 Noninterest expense 14,690 16,332
(10) 14,599 1 Income before taxes 9,550 6,721 42 2,034 370 Taxes on
income 3,605 2,559 41 705 411 Net income 5,945 4,162 43 1,329 347
Net income available to common shareholders 4,910 4,162 18 296
1,559 Diluted earnings per share 0.33 0.28 18 0.02 1,550 Balance
Sheet Total assets 3,038,985 2,773,013 10 2,928,133 4 Loans held
for sale 26,006 62,892 (59) 76,404 (66) Portfolio loans 2,704,326
2,381,893 14 2,526,293 7 Total deposits 2,452,295 2,211,001 11
2,330,089 5 Total shareholders' equity 305,416 224,949 36 300,406 2
Book value per share 16.30 15.49 5 16.01 2 Key Ratios Net interest
margin 3.41% 3.38% 3.00% Efficiency ratio (GAAP- based) 46.32 62.23
53.06 Total capital to risk- weighted assets 13.92 10.65 14.11
Nonperforming loans to portfolio loans 3.51 1.35 3.32 Shareholders'
equity to total assets 10.05 8.11 10.26 Tangible common equity to
tangible assets 7.65 7.88 7.76 Return on average assets
(annualized) 0.81 0.62 0.18 Return on average equity (annualized)
7.82 7.38 1.77 YEAR-TO-DATE HIGHLIGHTS Six Months --------------- %
2009 2008 Change ---- ---- -------- Operations Net interest income
$45,494 $44,117 3% Provision for loan losses 18,359 5,426 238
Noninterest income 13,738 8,647 59 Noninterest expense 29,289
32,162 (9) Income before taxes 11,584 15,176 (24) Taxes on income
4,310 5,806 (26) Net income 7,274 9,370 (22) Net income available
to common shareholders 5,206 9,370 (44) Diluted earnings per share
0.35 0.64 (45) Balance Sheet Total assets 3,038,985 2,773,013 10
Loans held for sale 26,006 62,892 (59) Portfolio loans 2,704,326
2,381,893 14 Total deposits 2,452,295 2,211,001 11 Total
shareholders' equity 305,416 224,949 36 Book value per share 16.30
15.49 5 Key Ratios Net interest margin 3.20% 3.42% Efficiency ratio
(GAAP-based) 49.45 60.95 Total capital to risk-weighted assets
13.92 10.65 Nonperforming loans to portfolio loans 3.51 1.35
Shareholders' equity to total assets 10.05 8.11 Tangible common
equity to tangible assets 7.65 7.88 Return on average assets
(annualized) 0.50 0.71 Return on average equity (annualized) 4.81
8.39 ------------------------------------- Balance sheet amounts
are as of period end unless otherwise noted. Please see
accompanying tables for additional financial information. SOUTHWEST
BANCORP, INC. Table 2 UNAUDITED CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION (Dollars in thousands, except per share) June
30, December 31, June 30, 2009 2008 2008 ---- ---- ---- Assets Cash
and due from banks $33,724 $27,287 $51,462 Federal funds sold 809 -
- --- - - Cash and cash equivalents 34,533 27,287 51,462 Investment
securities: Held to maturity. Fair value: $6,834 $7,293, $8,282
6,795 7,343 8,340 Available for sale. Amortized cost: $214,944
$233,293, $210,721 216,293 238,037 208,640 Other investments, at
cost 19,989 18,786 17,449 Loans held for sale 26,006 56,941 62,892
Loans receivable (1) 2,704,326 2,494,506 2,381,893 Less: Allowance
for loan losses (51,753) (39,773) (31,341) ------- ------- -------
Net loans receivable 2,652,573 2,454,733 2,350,552 Accrued interest
receivable 10,753 11,512 12,624 Premises and equipment, net 24,743
24,580 23,607 Other real estate owned (2) 8,941 6,092 2,523
Goodwill 6,811 7,071 7,071 Other intangible assets, net 5,974 3,764
4,157 Other assets 25,574 23,616 23,696 ------ ------ ------ Total
assets $3,038,985 $2,879,762 $2,773,013 ========== ==========
========== Liabilities and shareholders' equity Deposits:
Noninterest-bearing demand $291,014 $261,940 $299,699
Interest-bearing demand 94,060 76,027 81,415 Money market accounts
483,162 454,250 548,099 Savings accounts 25,660 14,135 13,809 Time
deposits of $100,000 or more 905,202 802,244 740,174 Other time
deposits 653,197 571,526 527,805 ------- ------- ------- Total
deposits 2,452,295 2,180,122 2,211,001 Accrued interest payable
5,953 7,018 9,680 Income tax payable 5,752 3,651 3,924 Other
liabilities 11,238 9,667 11,452 Other borrowings 176,368 295,138
265,614 Subordinated debentures 81,963 81,963 46,393 ------ ------
------ Total liabilities 2,733,569 2,577,559 2,548,064
Shareholders' equity Preferred stock, Series B -$1,000 par value;
1,250,000 shares authorized; 70,000 shares issued 66,710 66,392 -
Common stock - $1 par value; 20,000,000 shares authorized;
14,658,042 shares issued 14,658 14,658 14,658 Paid in capital
48,387 49,101 45,818 Retained earnings 175,089 170,579 168,099
Accumulated other comprehensive income (loss) 853 2,921 (1,256)
Treasury stock, at cost, 15,602, 80,383, 131,566 shares (281)
(1,448) (2,370) ---- ------ ------ Total shareholders' equity
305,416 302,203 224,949 ------- ------- ------- Total liabilities
and shareholders' equity $3,038,985 $2,879,762 $2,773,013
========== ========== ========== (1) Includes $80.8 million which
is subject to FDIC support through the loss share agreement which
provides for 80% recovery of net losses up to $35.0 million and 95%
recovery for net losses exceeding this amount. (2) Includes $3.3
million which is subject to FDIC support through the loss share
agreement as discussed in (1). SOUTHWEST BANCORP, INC. Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in
thousands except per share) For the three For the six months months
ended June 30, ended June 30, ---------------- ----------------
2009 2008 2009 2008 ---- ---- ---- ---- Interest income Loans
$36,009 $37,485 $69,277 $78,095 Investment securities 2,079 2,426
4,591 4,762 Other interest- earning assets 3 20 9 48 --- --- ---
--- Total interest income 38,091 39,931 73,877 82,905 Interest
expense Interest- bearing deposits 11,072 15,107 23,132 33,361
Other borrowings 1,180 1,887 2,464 3,916 Subordinated debentures
1,383 653 2,787 1,511 ----- --- ----- ----- Total interest expense
13,635 17,647 28,383 38,788 ------ ------ ------ ------ Net
interest income 24,456 22,284 45,494 44,117 Provision for loan
losses 7,477 3,190 18,359 5,426 ----- ----- ------ ----- Net
interest income after provision for loan losses 16,979 19,094
27,135 38,691 Noninterest income Service charges and fees 2,817
2,812 5,417 5,269 Gain on acquisition 3,281 - 3,281 - Gain on sales
of loans 926 603 1,644 1,443 Gain (loss) on investment securities
(9) 3 2,912 1,248 Other noninterest income 246 541 484 687 --- ---
--- --- Total noninterest income 7,261 3,959 13,738 8,647
Noninterest expense Salaries and employee benefits 6,887 8,856
14,126 18,078 Occupancy 2,789 2,602 5,520 5,060 FDIC and other
insurance 2,319 521 3,310 974 Other real estate, net 103 197 1 207
General and administrative 2,592 4,156 6,332 7,843 ----- -----
----- ----- Total noninterest expenses 14,690 16,332 29,289 32,162
------ ------ ------ ------ Income before taxes 9,550 6,721 11,584
15,176 Taxes on income 3,605 2,559 4,310 5,806 ----- ----- -----
----- Net income $5,945 $4,162 $7,274 $9,370 ====== ====== ======
====== Net income available to common shareholders $4,910 $4,162
$5,206 $9,370 ====== ====== ====== ====== Basic earnings per common
share $0.34 $0.29 $0.36 $0.65 Diluted earnings per common share
0.33 0.28 0.35 0.64 Common dividends declared per share 0.0238
0.0950 0.0476 0.1900 SOUTHWEST BANCORP, INC. Table 4 UNAUDITED
AVERAGE BALANCES, YIELDS, AND RATES (Dollars in thousands) For the
three months ended June 30, --------------------------- 2009
--------------------------- Average Average Balance Interest
Yield/Rate ------- -------- ---------- Assets Loans $2,649,140
$36,009 5.45% Investment securities 225,353 2,079 3.70 Other
interest-earning assets 4,321 3 0.28 ----- --- Total
interest-earning assets 2,878,814 38,091 5.31 Other assets 67,725
------ Total assets $2,946,539 ========== Liabilities and
Shareholders' Equity Interest-bearing demand deposits $87,036 $150
0.69% Money market accounts 470,506 1,211 1.03 Savings accounts
17,309 14 0.32 Time deposits 1,497,651 9,697 2.60 --------- -----
Total interest-bearing deposits 2,072,502 11,072 2.14 Other
borrowings 198,936 1,180 2.38 Subordinated debentures 81,963 1,383
6.75 ------ ----- Total interest-bearing liabilities 2,353,401
13,635 2.32 ------ ---- Noninterest-bearing demand deposits 267,406
Other liabilities 20,827 Shareholders' equity 304,905 ------- Total
liabilities and shareholders' equity $2,946,539 ========== Net
interest income and spread $24,456 2.99% ======= ==== Net interest
margin (1) 3.41% ==== Average interest-earning assets to average
interest-bearing liabilities 122.33% ====== For the three months
ended June 30, --------------------------- 2008
----------------------------- Average Average Balance Interest
Yield/Rate ------- -------- ---------- Assets Loans $2,414,012
$37,485 6.25% Investment securities 233,101 2,426 4.19 Other
interest-earning assets 3,406 20 2.36 ----- --- Total
interest-earning assets 2,650,519 39,931 6.06 Other assets 66,385
------ Total assets $2,716,904 ========== Liabilities and
Shareholders' Equity Interest-bearing demand deposits $79,273 $166
0.84% Money market accounts 548,020 3,062 2.25 Savings accounts
13,586 19 0.56 Time deposits 1,230,327 11,860 3.88 --------- ------
Total interest-bearing deposits 1,871,206 15,107 3.25 Other
borrowings 284,828 1,887 2.66 Subordinated debentures 46,393 653
5.63 ------ --- Total interest-bearing liabilities 2,202,427 17,647
3.22 ------ ---- Noninterest-bearing demand deposits 267,026 Other
liabilities 20,687 Shareholders' equity 226,764 ------- Total
liabilities and shareholders' equity $2,716,904 ========== Net
interest income and spread $22,284 2.84% ======= ==== Net interest
margin (1) 3.38% ==== Average interest-earning assets to average
interest-bearing liabilities 120.35% ====== (1) Net interest margin
= annualized net interest income / average interest-earning assets
SOUTHWEST BANCORP, INC. Table 5 UNAUDITED AVERAGE BALANCES, YIELDS,
AND RATES (Dollars in thousands) For the six months ended June 30,
------------------------------ 2009 ------------------------------
Average Average Balance Interest Yield/Rate ------- --------
---------- Assets Loans $2,622,282 $69,277 5.33% Investment
securities 236,862 4,591 3.91 Other interest-earning assets 3,557 9
0.51 ----- --- Total interest-earning assets 2,862,701 73,877 5.20
Other assets 68,333 ------ Total assets $2,931,034 ==========
Liabilities and Shareholders' Equity Interest-bearing demand
deposits $87,870 $303 0.70% Money market accounts 469,970 2,564
1.10 Savings accounts 16,198 23 0.29 Time deposits 1,470,271 20,242
2.78 --------- ------ Total interest-bearing deposits 2,044,309
23,132 2.28 Other borrowings 217,597 2,464 2.28 Subordinated
debentures 81,963 2,787 6.80 ------ ----- Total interest-bearing
liabilities 2,343,869 28,383 2.44 ------ ---- Noninterest-bearing
demand deposits 261,980 Other liabilities 20,119 Shareholders'
equity 305,066 ------- Total liabilities and shareholders' equity
$2,931,034 ========== Net interest income and spread $45,494 2.76%
======= ==== Net interest margin (1) 3.20% ==== Average
interest-earning assets to average interest-bearing liabilities
122.14% ====== For the six months ended June 30,
------------------------------ 2008 ------------------------------
Average Average Balance Interest Yield/Rate ------- --------
---------- Assets Loans $2,359,489 $78,095 6.66% Investment
securities 236,071 4,762 4.08 Other interest-earning assets 3,084
48 3.13 ----- -- Total interest-earning assets 2,598,644 82,905
6.42 Other assets 68,492 ------ Total assets $2,667,136 ==========
Liabilities and Shareholders' Equity Interest-bearing demand
deposits $76,003 $307 0.81% Money market accounts 547,027 7,590
2.79 Savings accounts 13,525 41 0.61 Time deposits 1,219,554 25,423
4.19 --------- ------ Total interest-bearing deposits 1,856,109
33,361 3.61 Other borrowings 261,819 3,916 3.01 Subordinated
debentures 46,393 1,511 6.51 ------ ----- Total interest-bearing
liabilities 2,164,321 38,788 3.60 ------ ---- Noninterest-bearing
demand deposits 257,133 Other liabilities 21,181 Shareholders'
equity 224,501 ------- Total liabilities and shareholders' equity
$2,667,136 ========== Net interest income and spread $44,117 2.82%
======= ==== Net interest margin (1) 3.42% ==== Average
interest-earning assets to average interest-bearing liabilities
120.07% ====== (1) Net interest margin = annualized net interest
income / average interest-earning assets SOUTHWEST BANCORP, INC.
Table 6 UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA (Dollars in
thousands except per share) 2009 ------------------------ Jun. 30
Mar. 31 ----------- ----------- OPERATIONS Interest income: Loans
$36,009 $33,268 Investment securities 2,079 2,512 Other
interest-earning assets 3 6 -- -- Total interest income 38,091
35,786 Interest expense: Interest bearing demand deposits 150 153
Money market accounts 1,211 1,353 Savings accounts 14 9 Time
deposits of $100,000 or more 5,552 5,980 Other time deposits 4,145
4,565 ----- ----- Total interest-bearing deposits 11,072 12,060
Other borrowings 1,180 1,284 Subordinated debentures 1,383 1,404
----- ----- Total interest expense 13,635 14,748 ------ ------ Net
interest income 24,456 21,038 Provision for loan losses 7,477
10,882 Noninterest income: Service charges and fees 2,817 2,600
Gain on sales of loans 926 718 Gain (loss) on investment securities
(9) 2,921 Other noninterest income 3,527 238 ----- --- Total
noninterest income 7,261 6,477 Noninterest expense: Salaries and
employee benefits 6,887 7,239 Occupancy 2,789 2,731 FDIC and other
insurance 2,319 991 Other real estate, net 103 (102) Provision for
unfunded loan commitments (388) 90 Other general and administrative
2,980 3,650 ----- ----- Total noninterest expenses 14,690 14,599
------ ------ Income before taxes 9,550 2,034 Taxes on income 3,605
705 ----- --- Net income $5,945 $1,329 ====== ====== Net income
available to common shareholders $4,910 $296 ====== ==== PER SHARE
DATA Basic earnings per common share $0.34 $0.02 Diluted earnings
per common share 0.33 0.02 Common dividends declared per share
0.0238 0.0238 Book value per share 16.30 16.01 Tangible book value
per share 15.84 15.52 OTHER FINANCIAL DATA Investment securities
$243,077 $179,006 Loans held for sale 26,006 76,404 Portfolio loans
2,704,326 2,526,293 Total loans 2,730,332 2,602,697 Total assets
3,038,985 2,928,133 Total deposits 2,452,295 2,330,089 Other
borrowings 176,368 193,739 Subordinated debentures 81,963 81,963
Total shareholders' equity 305,416 300,406 Mortgage servicing
portfolio 209,425 179,959 2008
------------------------------------------------- Dec. 31 Sep. 30
Jun. 30 Mar. 31 ----------- ----------- ----------- -----------
OPERATIONS Interest income: Loans $36,183 $38,441 $37,485 $40,610
Investment securities 2,693 2,531 2,426 2,336 Other interest-
earning assets 19 22 20 28 -- -- -- -- Total interest income 38,895
40,994 39,931 42,974 Interest expense: Interest bearing demand
deposits 130 147 166 141 Money market accounts 2,132 2,898 3,062
4,528 Savings accounts 11 17 19 22 Time deposits of $100,000 or
more 6,419 6,879 7,051 7,865 Other time deposits 4,571 4,457 4,809
5,698 ----- ----- ----- ----- Total interest- bearing deposits
13,263 14,398 15,107 18,254 Other borrowings 1,487 1,839 1,887
2,029 Subordinated debentures 1,731 1,569 653 858 ----- ----- ---
--- Total interest expense 16,481 17,806 17,647 21,141 ------
------ ------ ------ Net interest income 22,414 23,188 22,284
21,833 Provision for loan losses 6,698 6,855 3,190 2,236
Noninterest income: Service charges and fees 2,908 2,849 2,812
2,457 Gain on sales of loans 620 601 603 840 Gain (loss) on
investment securities (296) (50) 3 1,245 Other noninterest income
197 662 541 146 --- --- --- --- Total noninterest income 3,429
4,062 3,959 4,688 Noninterest expense: Salaries and employee
benefits 6,389 8,863 8,856 9,222 Occupancy 2,844 2,968 2,602 2,458
FDIC and other insurance 645 469 521 453 Other real estate, net 31
(92) 197 10 Provision for unfunded loan commitments 385 90 15 145
Other general and administrative 3,499 4,235 4,141 3,542 -----
----- ----- ----- Total noninterest expenses 13,793 16,533 16,332
15,830 ------ ------ ------ ------ Income before taxes 5,352 3,862
6,721 8,455 Taxes on income 2,127 1,556 2,559 3,247 ----- -----
----- ----- Net income $3,225 $2,306 $4,162 $5,208 ====== ======
====== ====== Net income available to common shareholders $2,982
$2,306 $4,162 $5,208 ====== ====== ====== ====== PER SHARE DATA
Basic earnings per common share $0.21 $0.16 $0.29 $0.36 Diluted
earnings per common share 0.20 0.16 0.28 0.36 Common dividends
declared per share 0.0950 0.0950 0.0950 0.0950 Book value per share
16.18 15.56 15.49 15.43 Tangible book value per share 15.69 15.08
15.00 14.95 OTHER FINANCIAL DATA Investment securities $264,166
$241,728 $234,429 $236,059 Loans held for sale 56,941 72,248 62,892
66,364 Portfolio loans 2,494,506 2,440,091 2,381,893 2,287,606
Total loans 2,551,447 2,512,339 2,444,785 2,353,970 Total assets
2,879,762 2,832,371 2,773,013 2,670,580 Total deposits 2,180,122
2,198,719 2,211,001 2,094,927 Other borrowings 295,138 299,118
265,614 282,513 Subordinated debentures 81,963 81,963 46,393 46,393
Total shareholders' equity 302,203 226,123 224,949 224,155 Mortgage
servicing portfolio 158,143 153,250 147,672 145,028 Continued
SOUTHWEST BANCORP, INC. Table 6 UNAUDITED QUARTERLY SUMMARY
FINANCIAL DATA Continued (Dollars in thousands except per share)
------------------------ 2009 ------------------------ Jun. 30 Mar.
31 ----------- ----------- PERFORMANCE RATIOS Return on average
assets (annualized) 0.81% 0.18% Return on average common equity
(annualized) 8.26 1.77 Return on average tangible equity
(annualized) 8.12 1.83 Net interest margin 3.41 3.00 Total
dividends declared to net income 20.58 92.00 Effective tax rate
37.75 34.66 Efficiency ratio 46.32 53.06 ASSET QUALITY RATIOS
Nonperforming assets to portfolio loans and other real estate owned
3.83% 3.53% Nonperforming loans to portfolio loans 3.51 3.32 Net
loan charge-offs to average portfolio loans 0.31 0.71 Allowance for
loan losses to total loans 1.90 1.78 Allowance for loan losses to
portfolio loans 1.91 1.83 Allowance for loan losses to
nonperforming loans 54.55 55.12 CAPITAL RATIOS Average total
shareholders' equity to average assets 10.35% 10.47% Leverage ratio
12.70 12.72 Tier 1 capital to risk- weighted assets 12.67 12.85
Total capital to risk- weighted assets 13.92 14.11 Tangible common
equity to tangible assets* 7.65 7.76 LOANS BY SEGMENT Oklahoma
banking $967,981 $949,454 Texas banking 1,037,694 990,135 Kansas
banking 412,314 309,774 Other states banking 286,337 276,930
------- ------- Subtotal 2,704,326 2,526,293 Secondary market
26,006 76,404 Total loans $2,730,332 $2,602,697 ==========
========== NET INCOME BY SEGMENT Oklahoma banking $3,284 $3,210
Texas banking 3,662 1,119 Kansas banking 548 598 Other states
banking (78) (1,974) --- ------ Subtotal 7,416 2,953 Secondary
market 117 (61) Other operations (1,588) (1,563) ------ ------ Net
income $5,945 $1,329 ====== ====== OFFICES AND EMPLOYEES FTE
Employees 478 425 ATM's 44 40 Branches 24 18 Loan production
offices 3 3 Assets per employee $6,358 $6,890 * Calculation of
Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $305,416 $300,406 Less: Goodwill** 6,811
7,071 Preferred stock 66,710 66,549 ------ ------ Tangible common
equity $231,895 $226,786 ======== ======== Total assets $3,038,985
$2,928,133 Less goodwill 6,811 7,071 ----- ----- Tangible assets
$3,032,174 $2,921,062 ========== ========== Tangible common equity
to tangible assets 7.65% 7.76% 2008
-------------------------------------------------- Dec. 31 Sep. 30
Jun. 30 Mar. 31 ----------- ----------- ----------- -----------
PERFORMANCE RATIOS Return on average assets (annualized) 0.45%
0.33% 0.62% 0.80% Return on average common equity (annualized) 5.15
3.97 7.38 9.43 Return on average tangible equity (annualized) 5.79
4.26 7.86 9.94 Net interest margin 3.22 3.39 3.38 3.45 Total
dividends declared to net income 50.49 59.85 33.16 26.37 Effective
tax rate 39.74 40.29 38.07 38.40 Efficiency ratio 53.37 60.67 62.23
59.69 ASSET QUALITY RATIOS Nonperforming assets to portfolio loans
and other real estate owned 2.80% 2.72% 1.45% 1.41% Nonperforming
loans to portfolio loans 2.56 2.62 1.35 1.27 Net loan charge-offs
to average portfolio loans 0.44 0.39 0.31 0.34 Allowance for loan
losses to total loans 1.56 1.43 1.28 1.27 Allowance for loan losses
to portfolio loans 1.59 1.47 1.32 1.31 Allowance for loan losses to
nonperforming loans 62.16 56.07 97.62 103.49 CAPITAL RATIOS Average
total shareholders' equity to average assets 8.85% 8.26% 8.35%
8.49% Leverage ratio 13.06 10.51 9.66 9.91 Tier 1 capital to
risk-weighted assets 13.01 10.49 9.40 9.47 Total capital to
risk-weighted assets 14.26 11.88 10.65 10.69 Tangible common equity
to tangible assets* 7.96 7.75 7.88 8.15 LOANS BY SEGMENT Oklahoma
banking $966,243 $962,611 $965,952 $943,331 Texas banking 947,603
892,998 857,160 797,700 Kansas banking 304,855 288,268 277,887
287,339 Other states banking 275,805 296,214 280,894 259,236
------- ------- ------- ------- Subtotal 2,494,506 2,440,091
2,381,893 2,287,606 Secondary market 56,941 72,248 62,892 66,364
Total loans $2,551,447 $2,512,339 $2,444,785 $2,353,970 ==========
========== ========== ========== NET INCOME BY SEGMENT Oklahoma
banking $3,783 $3,295 $2,923 $2,503 Texas banking 2,036 1,332 1,777
2,406 Kansas banking (204) (1,336) (40) 458 Other states banking
(89) 848 1,028 969 --- --- ----- --- Subtotal 5,526 4,139 5,688
6,336 Secondary market 139 (149) 40 (174) Other operations (2,440)
(1,684) (1,566) (954) ------ ------ ------ ---- Net income $3,225
$2,306 $4,162 $5,208 ====== ====== ====== ====== OFFICES AND
EMPLOYEES FTE Employees 442 458 463 467 ATM's 41 41 40 40 Branches
18 18 17 17 Loan production offices 3 3 3 3 Assets per employee
$6,515 $6,184 $5,989 $5,719 *Calculation of Tangible Capital to
Tangible Assets (Non-GAAP Financial Measure) Total shareholders'
equity $302,203 $226,123 $224,949 $224,155 Less: Goodwill** 7,071
7,071 7,071 7,071 Preferred stock 66,392 - - - ------ - - -
Tangible common equity $228,740 $219,052 $217,878 $217,084 ========
======== ======== ======== Total assets $2,879,762 $2,832,371
$2,773,013 $2,670,580 Less goodwill 7,071 7,071 7,071 7,071 -----
----- ----- ----- Tangible assets $2,872,691 $2,825,300 $2,765,942
$2,663,509 ========== ========== ========== ========== Tangible
common equity to tangible assets 7.96% 7.75% 7.88% 8.15% ** We
discovered an error in the entries recording our 2007 acquisition
and corrected it in the current period. This correction did not
effect income and does not represent any impairment of goodwill.
Balance sheet amounts are as of period end unless otherwise noted.
SOUTHWEST BANCORP, INC. Table 7 UNAUDITED QUARTERLY SUPPLEMENTAL
ANALYTICAL DATA (Dollars in thousands except per share) 2009
------------------------ Jun. 30 Mar. 31 ----------- -----------
LOAN COMPOSITION Real estate mortgage: Commercial $1,249,230
$1,098,587 One-to-four family residential 133,957 114,111 Real
estate construction Commercial 636,575 640,132 One-to-four family
residential 64,939 79,309 Commercial 581,937 558,834 Installment
and consumer: Guaranteed student loans 18,477 69,792 Other 45,217
41,932 ------ ------ Total loans, including held for sale 2,730,332
2,602,697 Less allowance for loan losses (51,753) (46,262) -------
------- Total loans, net $2,678,579 $2,556,435 ==========
========== By statement of condition category: Loans held for sale:
Student loans $18,477 $69,792 One-to- four family residential 6,599
5,563 Other 930 1,049 --- ----- Total loans held for sale 26,006
76,404 Portfolio loans 2,704,326 2,526,293 --------- ---------
Total loans before allowance $2,730,332 $2,602,697 ==========
========== DEPOSIT COMPOSITION Non-interest bearing demand $291,014
$274,175 Interest-bearing demand 94,060 85,629 Money market
accounts 483,162 467,924 Savings accounts 25,660 15,797 Time
deposits of $100,000 or more 905,202 849,814 Other time deposits
653,197 636,750 ------- ------- Total deposits $2,452,295
$2,330,089 ========== ========== Brokered deposits under $100,000
$295 $589 NONPERFORMING ASSETS Nonaccrual loans $82,812 $73,383 90
days past due and accruing 12,067 10,552 ------ ------ Total
nonperforming loans 94,879 83,935 Other real estate owned 8,941
5,351 ----- ----- Total nonperforming assets $103,820 $89,286
======== ======= Potential problem loans $184,058 $133,810 ========
======== ALLOWANCE ACTIVITY Balance, beginning of period $46,262
$39,773 Charge offs 2,975 4,810 Recoveries 989 417 --- --- Net
charge offs 1,986 4,393 Provision for loan losses 7,477 10,882
----- ------ Balance, end of period $51,753 $46,262 ======= =======
REGULATORY CAPITAL DATA Tier I capital $372,713 $369,482 Total
capital 409,764 405,613 Total risk adjusted assets 2,942,821
2,875,290 COMMON STOCK Issued 14,658,042 14,658,042 Less treasury
shares (15,602) (49,930) ------- ------- Outstanding shares
14,642,440 14,608,112 ========== ========== INTANGIBLE ASSET DATA
Goodwill** $6,811 $7,071 Core deposit intangible 4,378 2,498
Mortgage servicing rights 1,589 1,362 Nonmortgage servicing rights
7 8 - - Total intangible assets $12,785 $10,939 ======= =======
Intangible amortization expense $391 $204 ==== ==== 2008
-------------------------------------------------- Dec. 31 Sep. 30
Jun. 30 Mar. 31 ----------- ----------- ----------- -----------
LOAN COMPOSITION Real estate mortgage: Commercial $1,118,828
$1,077,601 $991,679 $846,757 One-to-four family residential 113,665
116,270 118,056 110,938 Real estate construction Commercial 579,795
554,496 583,784 654,039 One-to-four family residential 79,565
79,843 82,972 90,051 Commercial 564,670 574,087 566,830 544,183
Installment and consumer: Guaranteed student loans 54,057 67,610
57,413 63,706 Other 40,867 42,432 44,051 44,296 ------ ------
------ ------ Total loans, including held for sale 2,551,447
2,512,339 2,444,785 2,353,970 Less allowance for loan losses
(39,773) (35,807) (31,341) (29,950) ------- ------- ------- -------
Total loans, net $2,511,674 $2,476,532 $2,413,444 $2,324,020
========== ========== ========== ========== By statement of
condition category: Loans held for sale: Student loans $54,057
$67,610 $57,413 $63,706 One-to-four family residential 1,790 3,500
4,283 1,417 Other 1,094 1,138 1,196 1,241 ----- ----- ----- -----
Total loans held for sale 56,941 72,248 62,892 66,364 Portfolio
loans 2,494,506 2,440,091 2,381,893 2,287,606 --------- ---------
--------- --------- Total loans before allowance $2,551,447
$2,512,339 $2,444,785 $2,353,970 ========== ========== ==========
========== DEPOSIT COMPOSITION Non-interest bearing demand $261,940
$280,453 $299,699 $248,315 Interest-bearing demand 76,027 70,471
81,415 71,450 Money market accounts 454,250 554,357 548,099 553,850
Savings accounts 14,135 14,452 13,809 13,808 Time deposits of
$100,000 or more 802,244 731,773 740,174 690,421 Other time
deposits 571,526 547,213 527,805 517,083 ------- ------- -------
------- Total deposits $2,180,122 $2,198,719 $2,211,001 $2,094,927
========== ========== ========== ========== Brokered deposits under
$100,000 $3,445 $5,235 $10,755 $12,784 NONPERFORMING ASSETS
Nonaccrual loans $59,310 $61,557 $30,861 $26,134 90 days past due
and accruing 4,673 2,299 1,242 2,807 ----- ----- ----- ----- Total
nonperforming loans 63,983 63,856 32,103 28,941 Other real estate
owned 6,092 2,685 2,523 3,328 ----- ----- ----- ----- Total
nonperforming assets $70,075 $66,541 $34,626 $32,269 =======
======= ======= ======= Potential problem loans $131,516 $86,070
$71,070 $69,588 ======== ======= ======= ======= ALLOWANCE ACTIVITY
Balance, beginning of period $35,807 $31,341 $29,950 $29,584 Charge
offs 3,254 2,752 1,892 2,044 Recoveries 522 363 93 174 --- --- --
--- Net charge offs 2,732 2,389 1,799 1,870 Provision for loan
losses 6,698 6,855 3,190 2,236 ----- ----- ----- ----- Balance, end
of period $39,773 $35,807 $31,341 $29,950 ======= ======= =======
======= REGULATORY CAPITAL DATA Tier I capital $369,049 $293,141
$261,354 $258,272 Total capital 404,695 332,012 296,166 291,638
Total risk adjusted assets 2,837,473 2,793,843 2,780,538 2,727,853
COMMON STOCK Issued 14,658,042 14,658,042 14,658,042 14,658,042
Less treasury shares (80,383) (129,586) (131,566) (133,605) -------
-------- -------- -------- Outstanding shares 14,577,659 14,528,456
14,526,476 14,524,437 ========== ========== ========== ==========
INTANGIBLE ASSET DATA Goodwill** $7,071 $7,071 $7,071 $7,071 Core
deposit intangible 2,596 2,693 2,792 2,893 Mortgage servicing
rights 1,159 1,417 1,354 1,299 Nonmortgage servicing rights 9 10 11
13 - -- -- -- Total intangible assets $10,835 $11,191 $11,228
$11,276 ======= ======= ======= ======= Intangible amortization
expense $214 $212 $215 $257 ==== ==== ==== ==== Balance sheet
amounts are as of period end unless otherwise noted.
http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGODATASOURCE:
Southwest Bancorp, Inc. CONTACT: Rick Green, President & CEO,
or Kerby E. Crowell, EVP & CFO, both of -- Southwest Bancorp,
Inc., +1-405-372-2230 Web Site: http://www.oksb.com/
Copyright