Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the second quarter of 2016 of $5.4 million, or $0.28 per diluted share, compared to $4.2 million, or $0.22 per diluted share, for the second quarter of 2015. Net income for the six months ended June 30, 2016 totaled $7.3 million, or $0.38 per diluted share, compared to $8.7 million, or $0.46 per diluted share, for the six months ended June 30, 2015. Included in the first six months of 2016 results is a first quarter $4.4 million loan loss provision primarily driven by the impact of low energy prices combined with deterioration in a few general business credits.

Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable August 12, 2016 to shareholders of record as of July 29, 2016.

Mark Funke, President and CEO, stated, “We are pleased with the improvement in earnings and efficiency.  Loan growth was good in the second quarter and asset quality improved. Here are several highlights to take from this quarter.

  • Total loans grew $39.5 million to $1.82 billion from first quarter of 2016 and $371.9 million, or 26%, compared to the second quarter of 2015. We funded $51.4 million in new loans during the second quarter of 2016 making this our tenth consecutive quarter of loan growth.
  • The quarterly net interest margin was 3.48% at June 30, 2016, compared to 3.54% at March 31, 2016 and 3.31% at June 30, 2015.
  • Pre-tax, pre-provision income was $8.0 million in the second quarter, an increase of 8% from $7.5 million in the first quarter of 2016 and an increase of 51% from $5.3 million in the second quarter of 2015.
  • The efficiency ratio for the second quarter of 2016 improved to 65.70%, compared to 67.48% for the first quarter of 2016 and 71.83% for the second quarter of 2015.
  • On May 25, 2016 our board of directors authorized a fourth consecutive share repurchase program of up to another 5.0%, or approximately 921,000 shares of Southwest’s outstanding common stock, which becomes effective as of the earlier of:  (a) the date Southwest completes its repurchase of all the shares of Southwest’s common stock that it is authorized to purchase under its current stock repurchase program that became effective as of February 23, 2016; or (b) February 23, 2017, which is the original expiration date of the current program. During the first six months of 2016, Southwest repurchased 1,336,387 shares for a total of $21.0 million, and since August 2014, Southwest has repurchased 2,457,945 shares under the share repurchase programs for a total of $39.8 million.

“Diluted earnings per share of $0.28 was up 27% 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.”

Financial Overview

Condition:  As of June 30, 2016, total assets were $2.4 billion, an increase of $41.4 million, when compared to March 31, 2016. As of June 30, 2016, total loans were $1.8 billion, an increase of $39.5 million from the prior quarter end. As of June 30, 2016, investment securities were $422.3 million, a decrease of $0.7 million from the prior quarter end. Cash and cash equivalents at June 30, 2016 were $68.1 million, an increase of $0.7 million from March 31, 2016. 

At June 30, 2016, the allowance for loan losses was $26.9 million, a decrease of $0.3 million when compared to March 31, 2016 and an increase of $0.7 million when compared to June 30, 2015. The allowance for loan losses to portfolio loans was 1.48% as of June 30, 2016, down from 1.53% as of March 31, 2016, and from 1.82% as of June 30, 2015. The allowance for loan losses to nonperforming loans was 121.80% as of June 30, 2016, compared to 122.01% as of March 31, 2016 and 295.03% as of June 30, 2015. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.87% of gross loans as of June 30, 2016, compared to 1.96% as of March 31, 2016.

Nonperforming loans were $22.3 million at June 30, 2016, an increase of $0.1 million from March 31, 2016, and an increase of $13.4 million from June 30, 2015. Other real estate at June 30, 2016 was $2.1 million, which is down from $2.3 million at March 31, 2016 and $2.4 million at June 30, 2015. Nonperforming assets were $24.4 million, or 1.35% of portfolio loans and other real estate, as of June 30, 2016, compared to $24.5 million, or 1.38% of portfolio loans and other real estate, as of March 31, 2016, and $11.3 million, or 0.78% of portfolio loans and other real estate, as of June 30, 2015.

As of June 30, 2016, total deposits were $1.9 billion, an increase of $7.6 million, when compared to March 31, 2016. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 83% and 87% of total funding as of June 30, 2016 and March 31, 2016, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 17% and 13% of total funding at June 30, 2016 and March 31, 2016, respectively. 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, 2016 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $339.6 million, for a total risk-based capital ratio of 15.56%, Common Equity Tier 1 capital was $266.9 million, for a Common Equity Tier 1 ratio of 12.23%, and Tier 1 capital was $312.2 million, for a Tier 1 risk-based capital ratio of 14.31%. Bank SNB had total regulatory capital of $321.7 million, for a total risk-based capital ratio of 14.78% and Common Equity Tier 1 and Tier 1 capital of $294.4 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.53%. 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 2016, net income was $5.4 million, compared to $1.9 million for the first quarter of 2016 and $4.2 million for the second quarter of 2015. Pre-tax, pre-provision income for the second quarter of 2016 was $8.0 million, compared to $7.5 million for the first quarter of 2016 and $5.3 million for the second quarter of 2015.

The $3.5 million increase in net income compared to the first quarter of 2016 was primarily due to the $4.4 million provision for loan losses recorded in the prior quarter. The increase in net income also includes a $0.5 million increase in noninterest income and a $0.7 million decrease in noninterest expense, offset in part by a $0.1 million decrease in net interest income, and a $1.9 million increase in income taxes.

The $1.3 million increase in net income compared to the second quarter of 2015 was due to a $3.9 million increase in net interest income and a $0.5 million increase in noninterest income, offset in part by a $1.1 million increase in the provision for loan losses, a $1.3 million increase in noninterest expense, and a $0.7 million increase in income taxes. The increases in net interest income, noninterest income, and noninterest expense are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015.

Net Interest Income:  Net interest income totaled $19.7 million for the second quarter of 2016, compared to $19.8 million for the first quarter of 2016 and $15.8 million for the second quarter of 2015. Net interest margin was 3.48% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016 and 3.31% for the second quarter of 2015. Included in interest income for the second quarter of 2016, the first quarter of 2016, and the second quarter of 2015 was $0.2 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 3 basis point, a 5 basis point, and a 5 basis point increase, respectively for each quarter. Average loans (including loans held for sale) for the second quarter of 2016 increased $10.6 million when compared to March 31, 2016, and $360.5 million when compared to June 30, 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.

Provision (Credit) 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 a provision of $10,000 for the second quarter of 2016, compared to a provision of $4.4 million for the first quarter of 2016, and a negative provision of $1.1 million for the second quarter of 2015. The first quarter 2016 provision was driven primarily by the impact of low energy prices combined with deterioration in a few general business credits. During the second quarter of 2016, net charge-offs totaled $0.3 million, or 0.07% (annualized) of average portfolio loans, compared to net charge-offs of $3.3 million, or 0.75% (annualized) of average portfolio loans for the first quarter of 2016 and net recoveries of $0.1 million, or (0.03%) (annualized) of average portfolio loans for the second quarter of 2015. 

Noninterest Income:  Noninterest income totaled $3.9 million for the second quarter of 2016, compared to $3.4 million for the first quarter of 2016 and the second quarter of 2015. 

The $0.5 million increase from the first quarter of 2016 is primarily the result of a $0.3 million increase in the gain on sales of mortgage loans and a $0.1 million increase in other noninterest income, which is primarily from customer risk management interest rate swap income. Included in service charges and fees was a $0.2 million and a $0.3 million impairment on mortgage servicing rights for the second quarter of 2016 and the first quarter of 2016, respectively.

The $0.5 million increase from the second quarter of 2015 is the result of a $0.1 million increase in service charges and fees, a $0.1 million increase in the gain on sales of mortgage loans and a $0.2 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 $15.3 million for the second quarter of 2016, compared to $16.0 million for the first quarter of 2016 and $14.0 million for the second quarter of 2015. 

The $0.7 million decrease in noninterest expense from the first quarter of 2016 was primarily due to a $0.5 million decrease in the provision for unfunded loan commitments and a $0.5 million decrease in general and administrative expense, which includes a $0.2 million decrease in business development expenses and a $0.2 million decrease in professional fees, offset in part by a $0.2 million increase in personnel expense.

The $1.3 million increase in noninterest expense from the second quarter of 2015 consisted of a $1.3 million increase in personnel expense, a $0.5 million increase in occupancy, and a $0.1 million increase in FDIC and other insurance, offset in part by a $0.1 million decrease in other real estate expense, a $0.4 million decrease in the provision for unfunded loan commitments, and a $0.1 million decrease in general and administrative expense, which includes a $0.1 million decrease in business development expenses, a $0.1 million decrease in professional fees, and a $0.1 million increase in intangible amortization expense.

Income Tax:  Income tax expense totaled $2.9 million for the second quarter of 2016, compared to $1.0 million for the first quarter of 2016 and $2.2 million for the second quarter of 2015.  The income tax expense fluctuates in relation to pre-tax income levels. The second quarter of 2016 effective tax rate was 34.70%, compared to 35.19% for the first quarter of 2016 and 34.51% for the second quarter of 2015. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

Year-to-Date Results:

Summary:  Net income was $7.3 million for the six months ended June 30, 2016, compared to $8.7 million for the six months ended June 30, 2015. The $1.4 million decrease in net income from 2015 is the result of a $7.4 million increase in the provision for loan losses and a $4.2 million increase in noninterest expense due to increased personnel, occupancy, and general and administrative expenses, offset in part by an $8.1 million increase in net interest income, a $1.0 million increase in noninterest income, and a $1.0 million decrease in income taxes. The increases in noninterest expense, net interest income, and noninterest income are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015.

Net Interest Income:  Net interest income totaled $39.5 million for the first six months of 2016, compared to $31.4 million for the first six months of 2015, an increase of $8.1 million. Year-to-date net interest margin was 3.51%, compared to 3.28% for 2015. Included in interest income for the first six months of 2016 and the first six months of 2015 was $0.5 million and $0.3 million of accelerated discount accretion, respectively. The net effect on the net interest margin was a 4 basis point and a 3 basis point increase, respectively for each six-month period. Average loans (including loans held for sale) as of June 30, 2016 increased $365.1 million when compared to June 30, 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.

Provision (Credit) 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 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 $4.4 million for the first six months of 2016, compared to a negative provision of $3.0 million for the first six months of 2015. The provision for loans losses for the first six months of 2016 was driven primarily by the impact of low energy prices combined with deterioration in a few general business credits that occurred in the first quarter of 2016. Net charge-offs totaled $3.6 million, or 0.41% (annualized) of average portfolio loans year-to-date as of June 30, 2016, compared to net recoveries of $0.8 million, or (0.11%) (annualized) of average portfolio loans for the same period in 2015.  

Noninterest Income:  Noninterest income totaled $7.3 million for the first six months of 2016, compared to $6.2 million for the first six months of 2015. The increase consists of a $0.2 million increase in service charges and fees, which for the first six months of 2016 includes a $0.5 million impairment of mortgage servicing rights, a $0.2 million increase in gains on sales of mortgage loans, a $0.1 million increase in the gain on sale of investment securities and, a $0.5 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 $31.3 million for the first six months of 2016, compared to $27.1 million for the first six months of 2015. The increase consists of a $2.7 million increase in personnel expense, a $0.9 million increase in occupancy, a $0.2 million increase in FDIC and other insurance, a $0.1 million increase in the provision for unfunded loan commitments, and a $0.5 million increase in general and administrative expense, which includes a $0.1 million increase in business development expense, a $0.1 million increase in telephone expense, and a $0.2 million increase in intangible amortization expense, offset in part by a $0.1 million decrease in other real estate expense.

Income Tax:  Income tax expense totaled $3.9 million for the first six months of 2016, compared to $4.9 million for the first six months of 2015. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 34.83% as of June 30, 2016, compared to 36.10% as of June 30, 2015. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

Conference Call

Southwest will host a conference call to review these results on Wednesday, July 20, 2016 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/10088802. 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/oksb160720. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10088802. Telephone replay access will be available until August 20, 2016. 

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 and investment 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, 2016, Southwest had total assets of approximately $2.4 billion, deposits of $1.9 billion, and shareholders’ equity of $282.4 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, 2016, approximately $435.2 million, or 24%, 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 acquisitions and divestitures;
  • 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, 2015. 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, 2016 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2016 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   2016   2015   % Change   2016   % Change  
Operations                            
Net interest income   $    19,695     $    15,791       25 %   $    19,840       (1 )%  
Provision (credit) for loan losses        10          (1,136 )       (101 )        4,375         (100 )  
Noninterest income        3,871          3,409         14          3,415       13    
Noninterest expense        15,268          13,982         9          15,996         (5 )  
Income before taxes        8,288          6,354         30          2,884         187    
Taxes on income        2,876          2,193         31          1,015       183    
Net income        5,412          4,161         30          1,869         190    
Diluted earnings per share        0.28          0.22         27          0.10         193    
Balance Sheet                            
Total assets        2,402,262          2,031,581         18          2,360,819         2    
Loans held for sale        7,090          6,687         6          1,803         293    
Portfolio loans        1,814,287          1,442,743         26          1,780,081       2    
Total deposits        1,902,865          1,624,446         17          1,895,248         0    
Total shareholders' equity        282,360          273,681         3          285,661         (1 )  
Book value per common share        15.06          14.38         5          14.81         2    
Key Ratios                            
Net interest margin       3.48 %       3.31 %           3.54 %      
Efficiency ratio         65.70           71.83               67.48        
Total capital to risk-weighted assets         15.48           19.09               15.39        
Nonperforming loans to portfolio loans         1.23           0.62               1.25        
Shareholders' equity to total assets         11.75           13.47               12.10        
Tangible common equity to tangible assets*         11.16           13.40               11.49        
Return on average assets (annualized)         0.91           0.85               0.32        
Return on average common equity (annualized)         7.67           6.11               2.56        
Return on average tangible common equity (annualized)**         8.13           6.14               2.71        
                             
    Six Months            
YEAR-TO-DATE  HIGHLIGHTS   2016   2015   % Change            
Operations                            
Net interest income   $    39,535     $    31,401       26 %            
Provision (credit) for loan losses        4,385          (3,023 )       (245 )            
Noninterest income        7,286          6,249         17              
Noninterest expense        31,264          27,064         16              
Income before taxes        11,172          13,609         (18 )            
Taxes on income        3,891         4,913         (21 )            
Net income        7,281          8,696         (16 )            
Diluted earnings per share        0.38         0.46         (17 )            
Balance Sheet                            
Total assets        2,402,262          2,031,581         18              
Loans held for sale        7,090          6,687         6              
Portfolio loans        1,814,287          1,442,743         26              
Total deposits        1,902,865          1,624,446         17              
Total shareholders' equity        282,360          273,681         3              
Book value per common share        15.06          14.38         5              
Key Ratios                            
Net interest margin       3.51 %       3.28 %                
Efficiency ratio         66.58           71.76                  
Total capital to risk-weighted assets         15.48           19.09                  
Nonperforming loans to portfolio loans         1.23           0.62                  
Shareholders' equity to total assets         11.75           13.47                  
Tangible common equity to tangible assets*         11.16           13.40                  
Return on average assets (annualized)         0.62           0.88                  
Return on average common equity (annualized)         5.07           6.44                  
Return on average tangible common equity (annualized)**         5.38           6.48                  
                                     

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,
  2016   2015   2015
Assets                
Cash and due from banks $   35,822     $   24,971     $   22,923  
Interest-bearing deposits     32,266         53,158         133,765  
Cash and cash equivalents     68,088         78,129         156,688  
Securities held to maturity (fair values of $12,660, $12,282, and $11,818 respectively)     12,161         11,797         11,364  
Securities available for sale (amortized cost of $406,427, $401,136 and $360,609, respectively)     410,135         400,331         361,896  
Loans held for sale     7,090         7,453         6,687  
Loans receivable     1,814,287         1,771,975         1,442,743  
Less: Allowance for loan losses     (26,876 )       (26,106 )       (26,219 )
Net loans receivable     1,787,411         1,745,869         1,416,524  
Accrued interest receivable     5,730         5,767         4,281  
Non-hedge derivative asset     5,163          1,793          701  
Premises and equipment, net     22,971         23,819         18,251  
Other real estate     2,122         2,274         2,393  
Goodwill     13,467         13,467         1,214  
Other intangible assets, net     5,934         6,615         3,923  
Other assets     61,990         59,708         47,659  
Total assets $   2,402,262     $   2,357,022     $   2,031,581  
                 
Liabilities                
Deposits:                
Noninterest-bearing demand $    545,421     $    596,494     $    515,156  
Interest-bearing demand      160,886          151,015          131,547  
Money market accounts      547,415          534,357          496,178  
Savings accounts      55,209          56,333          35,647  
Time deposits of $100,000 or more      323,137          311,538          233,105  
Other time deposits      270,797          234,368          212,813  
Total deposits      1,902,865          1,884,105          1,624,446  
Accrued interest payable      931          867          774  
Non-hedge derivative liability      5,163          1,793          701  
Other liabilities      10,982          11,684          9,747  
Other borrowings      153,568          110,927          75,839  
Subordinated debentures      46,393          51,548          46,393  
Total liabilities       2,119,902          2,060,924          1,757,900  
                 
Shareholders' equity                
Common stock - $1 par value; 40,000,000 shares authorized;                
21,223,613, 21,138,028 and 19,900,855 shares issued, respectively      21,224          21,138          19,901  
Additional paid-in capital      122,293          121,966          101,518  
Retained earnings      177,373          173,210          166,837  
Accumulated other comprehensive income (loss)      1,503          (1,290 )        (233 )
Treasury stock, at cost, 2,472,830, 1,131,226 and 867,310 shares, respectively      (40,033 )        (18,926 )        (14,342 )
Total shareholders' equity      282,360          296,098          273,681  
Total liabilities and shareholders' equity $    2,402,262     $    2,357,022     $    2,031,581  
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,
  2016   2016   2015   2016   2015
Interest income                            
Loans $    20,031     $  20,030   $    15,839     $    40,061     $    31,409  
Investment securities      1,962        1,965        1,549          3,927          3,102  
Other interest-earning assets      51        53        67          104          168  
Total interest income      22,044        22,048        17,455          44,092          34,679  
                             
Interest expense                            
Interest-bearing deposits      1,428        1,307        862          2,735          1,697  
Other borrowings      342        309        241          651          468  
Subordinated debentures      579        592        561          1,171          1,113  
Total interest expense      2,349        2,208        1,664          4,557          3,278  
                             
Net interest income      19,695        19,840        15,791          39,535          31,401  
                             
Provision (credit) for loan losses      10        4,375        (1,136 )        4,385          (3,023 )
                             
Net interest income after provision for loan losses      19,685        15,465        16,927          35,150          34,424  
                             
Noninterest income                            
Service charges and fees      2,556        2,549        2,450          5,105          4,878  
Gain on sales of mortgage loans      722        401        621          1,123          969  
Gain on sale/call of investment securities, net      165        126        138          291          143  
Other noninterest income      428        339        200          767          259  
Total noninterest income      3,871        3,415        3,409          7,286          6,249  
                             
Noninterest expense                            
Salaries and employee benefits      9,587        9,342        8,289          18,929          16,203  
Occupancy      2,669        2,671        2,201          5,340          4,485  
Data processing      430        470        410          900          856  
FDIC and other insurance      432        368        316          800          628  
Other real estate, net      8        13        112          21          133  
Provision for unfunded loan commitments      (263 )      215        115          (48 )        (110 )
General and administrative      2,405        2,917        2,539          5,322          4,869  
Total noninterest expense      15,268        15,996        13,982          31,264          27,064  
Income before taxes      8,288        2,884        6,354          11,172          13,609  
Taxes on income      2,876        1,015        2,193          3,891          4,913  
Net income $    5,412     $  1,869   $    4,161     $    7,281     $    8,696  
                             
Pre-tax, pre-provision income* $    8,035     $  7,474   $    5,333     $    15,509     $    10,476  
                             
Basic earnings per common share $    0.29     $  0.10   $    0.22     $    0.38     $    0.46  
Diluted earnings per common share      0.28        0.10        0.22          0.38          0.46  
Common dividends declared per share      0.08        0.08        0.06          0.16          0.12  
                             
*This is a Non-GAAP based financial measure.  Pre-tax, pre-provision income is calculated as follows:               
Net Income + Taxes on income + Provision (credit) for loan losses + Provision 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, 2016   March 31, 2016   June 30, 2015
  Average   Average   Average   Average   Average   Average
  Balance   Yield/Rate   Balance   Yield/Rate   Balance   Yield/Rate
Assets                            
Loans $    1,799,591       4.48 %   $    1,788,992       4.50 %   $    1,439,050       4.41 %
Investment securities      428,275         1.84          412,307         1.92          369,677         1.68  
Other interest-earning assets      48,569         0.42          51,031         0.42          103,943         0.26  
Total interest-earning assets      2,276,435         3.89          2,252,330         3.94          1,912,670         3.66  
Other assets      103,566              107,874              58,267      
Total assets $    2,380,001         $    2,360,204         $    1,970,937      
                             
Liabilities and Shareholders' Equity                            
Interest-bearing demand deposits $    165,011       0.16 %   $    160,638       0.16 %   $    137,781       0.09 %
Money market accounts      537,734         0.25          542,800         0.24          473,993         0.15  
Savings accounts      54,808         0.13          55,834         0.14          34,702         0.10  
Time deposits      589,029         0.69          564,213         0.65          448,175         0.57  
Total interest-bearing deposits      1,346,582         0.43          1,323,485         0.40          1,094,651         0.32  
Other borrowings      141,623         0.97          117,171         1.06          60,568         1.60  
Subordinated debentures      46,393         4.99          48,546         4.88          46,393         4.84  
Total interest-bearing liabilities      1,534,598         0.62          1,489,202         0.60          1,201,612         0.56  
                             
Noninterest-bearing demand deposits      547,963              563,022              485,984      
Other liabilities      13,598              14,769              10,005      
Shareholders' equity      283,842              293,211              273,336      
Total liabilities and shareholders' equity $    2,380,001         $    2,360,204         $    1,970,937      
                             
Net interest income and spread         3.27 %           3.34 %           3.10 %
Net interest margin (1)         3.48 %           3.54 %           3.31 %
Average interest-earning assets                            
   to average interest-bearing liabilities     148.34 %           151.24 %           159.18 %    
                             
(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,
  2016   2015
  Average   Average   Average   Average
  Balance   Yield/Rate   Balance   Yield/Rate
Assets                  
Loans $    1,794,291       4.49 %   $    1,429,148       4.43 %
Investment securities      420,291         1.88          368,782         1.70  
Other interest-earning assets      49,800         0.42          131,290         0.26  
Total interest-earning assets      2,264,382         3.92          1,929,220         3.62  
Other assets      105,720              53,888      
Total assets $    2,370,102         $    1,983,108      
                   
Liabilities and Shareholders' Equity                  
Interest-bearing demand deposits $    162,825       0.16 %   $    138,335       0.09 %
Money market accounts      540,267         0.24          479,287         0.15  
Savings accounts      55,321         0.13          34,030         0.10  
Time deposits      576,621         0.67          441,330         0.57  
Total interest-bearing deposits      1,335,034         0.41          1,092,982         0.31  
Other borrowings      129,397         1.01          66,405         1.42  
Subordinated debentures      47,469         4.93          46,393         4.80  
Total interest-bearing liabilities      1,511,900         0.61          1,205,780         0.55  
                   
Noninterest-bearing demand deposits      555,493              494,582      
Other liabilities      14,184              10,458      
Shareholders' equity      288,525              272,288      
Total liabilities and shareholders' equity $    2,370,102         $    1,983,108      
                   
Net interest income and spread         3.31 %           3.07 %
Net interest margin (1)         3.51 %           3.28 %
Average interest-earning assets                  
   to average interest-bearing liabilities     149.77 %           160.00 %    
                   
(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)    
     
  2016   2015
  Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
LOAN COMPOSITION                                  
Real estate mortgage:                                  
Commercial $    862,287     $    878,822     $    938,462     $    869,250     $    759,406     $    759,676  
One-to-four family residential      183,693          158,078          161,958          95,906          85,338          86,343  
Real estate construction:                                  
Commercial      175,805          156,454          129,070          126,407          186,140          192,052  
One-to-four family residential      20,347          24,202          21,337          12,866          13,107          12,586  
Commercial      558,472          543,822          507,173          423,480          384,788          366,282  
Installment and consumer      20,773          20,506          21,429          20,185          20,651          21,306  
Total loans, including held for sale      1,821,377          1,781,884          1,779,429          1,548,094          1,449,430          1,438,245  
Less allowance for loan losses      (26,876 )        (27,168 )        (26,106 )        (26,593 )        (26,219 )        (27,250 )
Total loans, net $    1,794,501     $    1,754,716     $    1,753,323     $    1,521,501     $    1,423,211     $    1,410,995  
LOANS BY SEGMENT                                  
Oklahoma banking**** $    1,085,986     $    1,060,482     $    1,048,473     $    832,282     $    810,367     $    814,949  
Texas banking      577,333          560,421          580,476          563,010          493,047          478,005  
Kansas banking      158,058          160,981          150,480          152,802          146,016          145,291  
Total loans $    1,821,377     $    1,781,884     $    1,779,429     $    1,548,094     $    1,449,430     $    1,438,245  
NONPERFORMING LOANS BY TYPE                                  
Construction & development $    1,436     $    1,444     $    1,010     $    391     $    416     $    392  
Commercial real estate      3,894          3,830          3,992          1,795          2,141          2,247  
Commercial      13,800          13,461          13,491          11,727          5,114          5,447  
One-to-four family residential      3,120          3,448          1,777          1,016          1,216          1,065  
Consumer      75          84          88          148          -          -  
Total nonperforming loans $    22,325     $    22,267     $    20,358     $    15,077     $    8,887     $    9,151  
NONPERFORMING LOANS BY SEGMENT                                  
Oklahoma banking**** $    9,268     $    7,978     $    6,948     $    2,846     $    1,670     $    2,244  
Texas banking      12,586          13,521          12,450          11,025          5,353          5,264  
Kansas banking      471          768          960          1,206          1,864          1,643  
Total nonperforming loans $    22,325     $    22,267     $    20,358     $    15,077     $    8,887     $    9,151  
OTHER REAL ESTATE BY TYPE                                  
Construction & development $    1,962     $    2,060     $    2,060     $    2,025     $    2,035     $    2,035  
Commercial real estate      160          214          214          249          358          220  
Total other real estate $    2,122     $    2,274     $    2,274     $    2,274     $    2,393     $    2,255  
OTHER REAL ESTATE BY SEGMENT                                  
Oklahoma banking**** $    220     $    274     $    274     $    200     $    200     $    -  
Texas banking      1,902          2,000          2,000          2,025          2,000          2,000  
Kansas banking      -          -          -          49          193          255  
Total other real estate $    2,122     $    2,274     $    2,274     $    2,274     $    2,393     $    2,255  
                                   
****Due to immateriality, Colorado banking is included within Oklahoma banking.
Continued                                  
SOUTHWEST BANCORP, INC.   Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA   Continued
(Dollars in thousands)    
     
  2016   2015
  Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
POTENTIAL PROBLEM LOANS BY TYPE                                  
Construction & development $    -     $    -     $    -     $    -     $    -     $    201  
Commercial real estate      33,472          36,216          26,981          22,362          20,375          24,672  
Commercial      29,537          29,931          9,879          7,366          14,519          14,016  
One-to-four family residential      1,353          2,275          2,285          79          80          81  
Consumer      2          38          10          -          -          -  
Total potential problem loans $    64,364     $    68,460     $    39,155     $    29,807     $    34,974     $    38,970  
POTENTIAL PROBLEM LOANS BY SEGMENT                                  
Oklahoma banking**** $    43,895     $    46,102     $    32,970     $    23,597     $    23,231     $    26,713  
Texas banking      17,726          18,801          4,165          4,086          9,180          9,541  
Kansas banking      2,743          3,557          2,020          2,124          2,563          2,716  
Total potential problem loans $    64,364     $    68,460     $    39,155     $    29,807     $    34,974     $    38,970  
ALLOWANCE ACTIVITY                                  
Balance, beginning of period $    27,168     $    26,106     $    26,593     $    26,219     $    27,250     $    28,452  
Charge-offs      538          3,725          569          226          325          230  
Recoveries      236          412          648          577          430          915  
Net charge-offs (recoveries)      302          3,313          (79 )        (351 )        (105 )        (685 )
Provision (credit) for loan losses      10          4,375          (566 )        23          (1,136 )        (1,887 )
Balance, end of period $    26,876     $    27,168     $    26,106     $    26,593     $    26,219     $    27,250  
NET CHARGE-OFFS BY TYPE                                  
Construction & development $    -     $    -     $    -     $    (16 )   $    (15 )   $    5  
Commercial real estate      (44 )        (187 )        219          24          82          (118 )
Commercial      82          3,408          (286 )        (325 )        (52 )        (188 )
One-to-four family residential      (12 )        41          (48 )        (68 )        (91 )        (331 )
Consumer      276          51          36          34          (29 )        (53 )
Total net charge-offs (recoveries) by type $    302     $    3,313     $    (79 )   $    (351 )   $    (105 )   $    (685 )
NET CHARGE-OFFS BY SEGMENT                                  
Oklahoma banking**** $    127     $    458     $    288     $    (86 )   $    25     $    (309 )
Texas banking      211          952          (415 )        (103 )        (72 )        (114 )
Kansas banking      (36 )        1,903          48          (162 )        (58 )        (262 )
Total net charge-offs (recoveries) by segment $    302     $    3,313     $    (79 )   $    (351 )   $    (105 )   $    (685 )
                                   
****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)    
     
  2016   2015
  Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PER SHARE DATA                                  
Basic earnings per common share $   0.29     $   0.10     $   0.23     $   0.22     $   0.22     $   0.24  
Diluted earnings per common share     0.28         0.10         0.23         0.22         0.22         0.24  
Common dividends declared per share     0.08         0.08         0.06         0.06         0.06         0.06  
Book value per common share     15.06         14.81         14.80         14.57         14.38         14.26  
Tangible book value per share*     14.20         13.97         13.98         14.49         14.29         14.17  
COMMON STOCK                                  
Shares issued    21,223,613        21,225,034        21,138,028        19,901,336        19,900,855        19,900,350  
Less treasury shares    2,472,830        1,939,989        1,131,226        868,617        867,310        867,310  
Outstanding shares    18,750,783        19,285,045        20,006,802        19,032,719        19,033,545        19,033,040  
OTHER FINANCIAL DATA                                  
Investment securities $  422,296     $  423,030     $  412,128     $  388,543     $  373,260     $  377,545  
Loans held for sale    7,090        1,803        7,453        7,024        6,687        9,106  
Portfolio loans    1,814,287        1,780,081        1,771,975        1,541,070        1,442,743        1,429,139  
Total loans    1,821,377        1,781,884        1,779,428        1,548,094        1,449,430        1,438,245  
Total assets    2,402,262        2,360,819        2,357,022        2,059,899        2,031,581        2,003,079  
Total deposits    1,902,865        1,895,248        1,884,105        1,626,250        1,624,446        1,616,454  
Other borrowings    153,568        117,763        110,927        96,801        75,839        58,578  
Subordinated debentures    46,393        46,393        51,548        46,393        46,393        46,393  
Total shareholders' equity    282,360        285,661        296,098        277,344        273,681        271,444  
Mortgage servicing portfolio    443,568        434,340        432,318        422,845        415,961        407,903  
INTANGIBLE ASSET DATA                                  
Goodwill $  13,467     $  13,467     $  13,467     $  1,214     $  1,214     $  1,214  
Core deposit intangible    2,584        2,734        2,894        342        405        467  
Mortgage servicing rights    3,350        3,411        3,721        3,631        3,518        3,399  
Total intangible assets $  19,401     $  19,612     $  20,082     $  5,187     $  5,137     $  5,080  
Intangible amortization expense $  350     $  341     $  330     $  243     $  243     $  168  
DEPOSIT COMPOSITION                                  
Non-interest bearing demand $  545,421     $  552,499     $  596,494     $  526,159     $  515,156     $  506,952  
Interest-bearing demand    160,886        168,210        151,015        114,877        131,547        140,659  
Money market accounts    547,415        540,323        534,357        502,028        496,178        488,569  
Savings accounts    55,209        56,235        56,333        36,163        35,647        34,413  
Time deposits of $100,000 or more    323,137        314,496        311,538        238,318        233,105        227,426  
Other time deposits    270,797        263,485        234,368        208,705        212,813        218,435  
Total deposits** $  1,902,865     $  1,895,248     $  1,884,105     $  1,626,250     $  1,624,446     $  1,616,454  
OFFICES AND EMPLOYEES                                  
FTE Employees   410       411       412       358       361       360  
Branches   33       33       33       24       24       23  
Assets per employee $ 5,859     $ 5,744     $  5,721     $  5,754     $  5,628     $  5,564  
____________________                                  
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $  1,902,865     $  1,895,248     $  1,884,105     $  1,626,250     $  1,624,446     $  1,616,454  
Less:                                  
Brokered time deposits    61,709        55,901        39,797        10,086        7,683        7,694  
Other brokered deposits    175,367        140,372        135,880        133,025        103,025        83,025  
Non-brokered deposits $  1,665,789     $  1,698,975     $  1,708,428     $  1,483,139     $  1,513,738     $  1,525,735  
Plus:                                  
Sweep repurchase agreements    42,568        42,763        37,273        50,801        50,839        33,578  
Core funding $  1,708,357     $  1,741,738     $  1,745,701     $  1,533,940     $  1,564,577     $  1,559,313  
                                   
Balance sheet amounts are as of period end unless otherwise noted.
SOUTHWEST BANCORP, INC.   Table 8
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA    
(Dollars in thousands)    
     
  2016   2015
    Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PERFORMANCE RATIOS                                  
Return on average assets (annualized)     0.91 %       0.32 %       0.78 %       0.81 %       0.85 %       0.92 %
Return on average common equity (annualized)       7.67           2.56           6.14           5.94           6.11           6.78  
Return on average tangible common equity                                  
(annualized)*       8.13           2.71           6.46           5.97           6.14           6.82  
Net interest margin (annualized)       3.48           3.54           3.48           3.34           3.31           3.25  
Total dividends declared to net income       28.35           84.66           26.22           27.53           27.45           25.19  
Effective tax rate       34.70           35.19           35.96           35.84           34.51           37.49  
Efficiency ratio       65.70           67.48           72.17           68.16           71.83           71.69  
NONPERFORMING ASSETS                                  
Nonaccrual loans $    22,259     $    22,161     $    19,858     $    15,076     $    8,887     $    9,151  
90 days past due and accruing      66          106          500          1          -          -  
Total nonperforming loans      22,325          22,267          20,358          15,077          8,887          9,151  
Other real estate      2,122          2,274          2,274          2,274          2,393          2,255  
Total nonperforming assets $    24,447     $    24,541     $    22,632     $    17,351     $    11,280     $    11,406  
Potential problem loans $    64,364     $    68,460     $    39,155     $    29,807     $    34,974     $    38,970  
ASSET QUALITY RATIOS                                  
Nonperforming assets to portfolio loans and                                  
other real estate     1.35 %       1.38 %       1.28 %       1.12 %       0.78 %       0.80 %
Nonperforming loans to portfolio loans       1.23           1.25           1.15           0.98           0.62           0.64  
Allowance for loan losses to portfolio loans       1.48           1.53           1.47           1.73           1.82           1.91  
Allowance for loan losses to                                  
nonperforming loans       120.39           122.01           128.23           176.38           295.03           297.78  
Net loan charge-offs to average portfolio                                  
loans (annualized)       0.07           0.75           (0.02 )         (0.09 )         (0.03 )         (0.20 )
CAPITAL RATIOS                                  
Average total shareholders' equity to                                  
average assets     11.93 %       12.42 %       12.77 %       13.59 %       13.87 %       13.59 %
Leverage ratio       13.16           13.45           14.41           15.84           16.12           15.75  
Common equity tier 1 capital       12.18           12.13           13.21           14.57           15.30           15.51  
Tier 1 capital to risk-weighted assets       14.22           14.14           15.53           16.95           17.84           18.10  
Total capital to risk-weighted assets       15.48           15.39           16.79           18.21           19.09           19.36  
Tangible common equity to tangible assets***       11.16           11.49           11.95           13.40           13.40           13.48  
REGULATORY CAPITAL DATA                                  
Common equity tier 1 capital $   266,366     $   270,564     $   282,737     $   275,350     $   272,048     $   269,007  
Tier I capital     311,127         315,326         332,468         320,350         317,048         314,007  
Total capital     338,547         343,287         359,300         344,095         339,412         335,734  
Total risk adjusted assets     2,187,262         2,230,326         2,140,344         1,889,892         1,777,618         1,734,401  
Average total assets     2,363,351         2,344,259         2,307,421         2,022,972         1,966,577         1,993,446  
____________________                                  
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $    282,360     $    285,661     $    296,098     $    277,344     $    273,681     $    271,444  
Less goodwill and core deposit intangible      16,051          16,201          16,361          1,556          1,619          1,681  
Tangible common equity $    266,309     $    269,460     $    279,737     $    275,788     $    272,062     $    269,763  
Total assets $    2,402,262     $    2,360,819     $    2,357,022     $    2,059,899     $    2,031,581     $    2,003,079  
Less goodwill and core deposit intangible      16,051          16,201          16,361          1,556          1,619          1,681  
Tangible assets $    2,386,211     $    2,344,618     $    2,340,661     $    2,058,343     $    2,029,962     $    2,001,398  
Total shareholders' equity to total assets     11.75 %       12.10 %       12.56 %       13.46 %       13.47 %       13.55 %
Tangible common equity to tangible assets     11.16 %       11.49 %       11.95 %       13.40 %       13.40 %       13.48 %
                                   
Balance sheet amounts and ratios are as of period end unless otherwise noted.

 

For additional information:
Mark W. Funke
President & CEO
Joe T. Shockley, Jr.
EVP & CFO
(405) 372-2230
Southwest Bancorp, Inc. (NASDAQ:OKSB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024 Haga Click aquí para más Gráficas Southwest Bancorp, Inc..
Southwest Bancorp, Inc. (NASDAQ:OKSB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024 Haga Click aquí para más Gráficas Southwest Bancorp, Inc..