Southwest Bancorp, Inc. Reports Fourth Quarter 2013 Results and Announces Quarterly Dividend

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STILLWATER, Okla., Jan. 21, 2014 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB), ("Southwest"), today reported net income available to common shareholders for the fourth quarter of 2013 of $6.8 million, or $0.34 per diluted share, compared to $3.8 million, or $0.19 per diluted share, for the third quarter of 2013. Net income available to common shareholders for the year ended December 31, 2013 totaled $17.4 million, or $0.88 per diluted share, compared to $12.4 million, or $0.64 per diluted share, for the year ended December 31, 2012.

Southwest's board of directors reinstated quarterly common stock dividends with their approval of a quarterly cash dividend of $0.04 per share. The dividend is payable February 14, 2014 to shareholders of record as of February 3, 2014.

Mark Funke, President and CEO, stated, "We are pleased to report strong earnings for the fourth quarter and the year 2013. Our net earnings were boosted by improved asset quality and loan recoveries combined with the impact of the redemption of our 10.5% Trust Preferred Securities, that was completed in the previous quarter.

"Our balance sheet remains solid with good liquidity and exceptionally strong capital. We reinstated common dividends and completed the rebranding on our subsidiary bank, Bank SNB, simultaneously with the successful charter consolidation of our two subsidiary banks.

"Subsequent to the end of fourth quarter, we announced an agreement to sell three community bank branches in Kansas in an effort to consolidate our geographic footprint and focus appropriately on our future strategic direction. We remain committed to growing our Kansas franchise in the Wichita and Hutchinson markets.

This quarter's positive results represent continued progress as we focus on future growth opportunities and on delivering the highest quality service and products to our customers."

Financial Overview

Unless otherwise indicated, the following discussion excludes "covered" assets, which are subject to loss sharing agreements with the FDIC. For information on covered versus noncovered assets, please see the accompanying unaudited financial statement and tables.

Condition: At December 31, 2013, total assets were $2.0 billion, up $9.1 million compared to September 30, 2013. Cash and cash equivalents were $279.8 million, with $251.8 million in overnight funds, up $34.5 million when compared to September 30, 2013. Total loans were $1.2 billion, down $33.2 million when compared to September 30, 2013, and total investment securities were $394.2 million as of December 31, 2013, an increase of $12.2 million compared September 30, 2013.

At December 31, 2013, the allowance for loan losses was $36.6 million, a decrease of $3.4 million when compared to September 30, 2013. The allowance for loan losses to portfolio loans was 2.93% as of December 31, 2013 and 3.12% as of September 30, 2013. The allowance for loan losses to nonperforming loans was 196.67% as of December 31, 2013, compared to 137.03% as of September 30, 2013.

Nonperforming loans decreased by $10.6 million during the quarter. Other real estate at December 31, 2013 was $0.6 million, flat when compared to September 30, 2013 and a decrease of $10.8 million from December 31, 2012. Nonperforming assets were $19.2 million, or 1.53% of portfolio loans and other real estate, as of December 31, 2013, a decrease of $10.7 million (36%) from $29.9 million, or 2.33% of portfolio loans and other real estate, as of September 30, 2013.

Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of December 31, 2013 and September 30, 2013. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at December 31, 2013 and September 30, 2013. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.

The capital ratios of Southwest and its banking subsidiary, as of December 31, 2013, exceeded the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $310.9 million, for a total risk-based capital ratio of 21.59%, and Tier 1 capital was $292.1 million, for a Tier 1 risk-based capital ratio of 20.28%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $166.9 million. Bank SNB, Southwest's banking subsidiary, had total regulatory capital of $284.4 million, for a total risk-based capital ratio of 19.83%, and Tier 1 capital of $266.1 million, for a Tier 1 risk-based capital ratio of 18.56%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $141.0 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.

Fourth Quarter Results:

Summary: For the fourth quarter of 2013, net income available to common shareholders was $6.8 million, compared to $3.8 million for the third quarter of 2013, and $1.0 million for the fourth quarter of 2012. The $3.0 million increase in net income available to common shareholders compared to the third quarter of 2013 is primarily due to improved asset quality and recoveries resulting in a negative provision for loan losses of $6.5 million. Net interest income increased $1.4 million due in part to loan recoveries and lower interest expense driven by the redemption near the end of the third quarter of the 10.5% Trust Preferred Securities. Noninterest income was down $0.5 million from third quarter, while noninterest expense was up $2.0 million due in part to the charter consolidation and rebranding of our subsidiary bank. The effective tax rate was 38.68% in the fourth quarter of 2013 compared to 38.01% in the third quarter of 2013 and the increase is due to certain deferred tax adjustments.

The $5.9 million increase in our net income available to common shareholders compared to the fourth quarter of 2012 is again the result of improved asset quality and recoveries resulting in a $9.6 million decrease in the provision for loan losses. Net interest income decreased $0.6 million compared to the fourth quarter of 2012 due to lower loan volumes and reduced yields. Noninterest income decreased $1.8 million and noninterest expense decreased $2.6 million both as compared to the fourth quarter of 2012.

Net Interest Income: Net interest income totaled $16.6 million for the fourth quarter of 2013, compared to $15.3 million for the third quarter of 2013, an increase of $1.4 million, or 9%, and to $17.3 million for the fourth quarter of 2012, a decrease of $0.6 million, or 4%. The increase during the fourth quarter of 2013 includes the recognition of $0.9 million in interest from the recovery of a nonperforming loan and the reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities. Net interest margin was 3.42% for the fourth quarter of 2013, compared to 3.11% for the third quarter of 2013 and 3.41% for the fourth quarter of 2012. Noncovered loans (including loans held for sale) declined $33.2 million, or 3%, from September 30, 2013, and $98.6 million, or 7%, from December 31, 2012, primarily due to a decline in commercial real estate loans.

Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount 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 a credit (or negative provision) of $6.5 million for the fourth quarter of 2013, compared to a negative provision of $0.3 million for the third quarter of 2013 and a provision of $3.1 million for the fourth quarter of 2012. During the fourth quarter of 2013, recoveries totaled $5.8 million and charge-offs totaled $2.7 million, which had been substantially allowed for in the loan loss reserve. Therefore the fourth quarter of 2013 net recoveries totaled $3.1 million, or (0.96%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.02%) (annualized) of average portfolio loans for the third quarter of 2013, and net charge-offs of $0.1 million, or 0.03% (annualized) of average portfolio loans for the fourth quarter of 2012.

Noninterest Income: Noninterest income totaled $3.1 million for the fourth quarter, compared to $3.5 million for the third quarter of 2013, and compared to $4.9 million for the fourth quarter of 2012.

The $0.5 million decrease from third quarter of 2013 is primarily due to the $0.3 million decline in other noninterest income, which included a legal settlement that was received in the third quarter of 2013, and the $0.2 million decline in gain on sale of loans.

The $1.8 million decrease from fourth quarter 2012 includes a $0.8 million decrease in gain on investment securities, a $0.5 million decrease in the gain on sales of loans, a $0.3 million decrease in service charges and fees, and a $0.1 million decrease in other noninterest income.

Noninterest Expense: Noninterest expense totaled $15.1 million for the fourth quarter of 2013, compared to $13.0 million for the third quarter of 2013 and $17.7 million for the fourth quarter of 2012.

The $2.0 million increase in noninterest expense from third quarter of 2013 primarily consists of a $1.4 million increase in general and administrative expense, which primarily consists of increased legal fees and increased marketing and other miscellaneous expenses associated with our recent charter consolidation and rebranding of our subsidiary bank. Also included in the increase from third quarter of 2013 is a $0.7 million increase in other real estate expense and a $0.4 million increase in personnel expense, offset in part by a $0.6 million decrease in the provision for unfunded loan commitments.

The $2.6 million decrease in noninterest expense from fourth quarter of 2012 consists of a $2.5 million decrease in other real estate expense due to decreased expenses and write-downs as a result of fewer other real estate properties. Also included in the decline from fourth quarter of 2012 is a $0.8 million decrease in provision for unfunded loan commitments, offset in part by a $0.6 million increase in general and administrative expense, which is primarily the result of increased legal fees, and marketing expenses and miscellaneous expenses associated with our charter consolidation and rebranding of our subsidiary bank.

Income Tax: Income tax expense totaled $4.3 million for the fourth quarter of 2013, compared to $2.3 million for the third quarter of 2013 and $0.4 million for the fourth quarter of 2012. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2013 effective tax rate was 38.68%.

Year-to-date Results:

Summary: Net income available to common shareholders was $17.4 million for the year ended December 31, 2013, compared to $12.4 million for the year ended December 31, 2012. The $5.0 million increase in our net income available to common shareholders from December 31, 2012 is primarily due to improved asset quality and recoveries resulting in a decrease in the provision of loan losses of $10.3 million and a reduction in noninterest expense of $8.0 million due largely to lower other real estate expenses. These improvements were partially offset by the decline in net interest income due to lower loan volumes and lower noninterest income. Southwest's effective tax rate was 38.15% in 2013 versus 37.91% in 2012. Southwest also paid dividends on its preferred stock of $3.7 million in 2012 before it was redeemed in August 2012.

Net Interest Income: Net interest income totaled $62.7 million for 2013, compared to $76.6 million for 2012, a decrease of $13.9 million, or 18%. Lower average loan volume was the primary cause of this decrease. Year-to-date net interest margin was 3.19%, compared to 3.64% for 2012. With the rate environment remaining low, earning assets are repricing at lower rates.

Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount of expense that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs for the period. The provision for loan losses was a credit (or negative provision) of $7.2 million for 2013, compared to an expense of $3.1 million for 2012. Net charge-offs totaled $2.8 million, or 0.22% (annualized) of average portfolio loans as of December 31, 2013, compared to $1.1 million, or 0.07% (annualized) of average portfolio loans as of December 31, 2012.

Noninterest Income: Noninterest income totaled $13.6 million for 2013, compared to $15.9 million for 2012. The decrease consists of a $1.1 million decline in service charges and fees, a $0.8 million decline in gain on investment securities, and a $0.5 million decrease in gain on sale of loans.

Noninterest Expense: Noninterest expense totaled $55.3 million for 2013, compared to $63.3 million for 2012. The decrease consists of a $7.7 million decrease in other real estate expense, which is primarily due to net gains recognized on the sale of other real estate properties combined with decreased expenses associated with other real estate properties. Also included in the decline is a $1.0 million decrease in general and administrative expense, which is primarily the result of lower legal fees, consulting fees, other loan costs, and bank exam fees, a $0.8 million decrease in FDIC and other insurance expense, and a $0.7 million decrease in provision for unfunded loan commitments, offset in part by a $2.0 million increase in personnel expense and a $0.2 million increase in occupancy expense, primarily increased data processing charges.

Income Tax: Income tax expense totaled $10.8 million for 2013, compared to $9.9 million for 2012. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 38.15% as of December 31, 2013.

Conference Call

Southwest will host a conference call to review these results on Wednesday, January 22, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may access the call by telephone at 888-317-6016 (toll-free) or 412-317-6016 (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/oksb140122.html. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10038921. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 6, 2014.

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Bank SNB, National Association ("Bank SNB"). Through Bank SNB, commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services are offered from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2013, Southwest had total assets of $2.0 billion, deposits of $1.6 billion, and shareholders' equity of $259.2 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 subsidiary provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of December 31, 2013, approximately $417.4 million, or 33%, of noncovered loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of current and potential healthcare lending business and 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;
  • Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs;
  • Estimates of the value of assets held for sale or available for sale; and
  • Statements of 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, 2012. 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 December 31, 2013 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2013 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.

Financial Tables
Unaudited Financial Highlights Table 1
Unaudited Consolidated Statements of Financial Condition Table 2
Unaudited Consolidated Statements of Operations Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly Table 4
Unaudited Average Balances, Yields, and Rates-Year-to-date Table 5
Unaudited Quarterly Summary Loan Data Table 6
Unaudited Quarterly Summary Financial Data Table 7
Unaudited Quarterly Supplemental Analytical Data Table 8
SOUTHWEST BANCORP, INC. Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)
Fourth Quarter Third Quarter Fourth Quarter
QUARTERLY HIGHLIGHTS 2013 % Change 2012 % Change
Operations
Net interest income $ 16,637 $ 15,273 9 % $17,285 (4)%
Provision for loan losses (6,502) (329) 1,876 3,085 (311)
Noninterest income 3,068 3,547 (14) 4,871 (37)
Noninterest expense 15,065 13,019 16 17,653 (15)
Income before taxes 11,142 6,130 82 1,418 686
Taxes on income 4,310 2,330 85 446 866
Net income 6,832 3,800 80 972 603
Net income available to common shareholders 6,832 3,800 80 972 603
Diluted earnings per share 0.34 0.19 79 0.05 580
Balance Sheet
Total assets 1,981,423 1,972,367 0 2,122,255 (7)
Loans held for sale 3,060 3,641 (16) 31,682 (90)
Noncovered portfolio loans 1,251,416 1,284,004 (3) 1,321,346 (5)
Covered portfolio loans 16,427 18,980 (13) 25,707 (36)
Total deposits 1,584,086 1,583,791 0 1,709,578 (7)
Total shareholders' equity 259,187 252,802 3 246,056 5
Book value per common share 13.13 12.83 2 12.60 4
Key Ratios
Net interest margin 3.42% 3.11% 3.41%
Efficiency ratio 76.45 69.18 79.68
Total capital to risk-weighted assets 21.59 21.52 21.56
Nonperforming loans to portfolio loans - noncovered 1.49 2.27 2.91
Shareholders' equity to total assets 13.08 12.82 11.59
Tangible common equity to tangible assets* 13.03 12.76 11.54
Return on average assets (annualized) 1.37 0.75 0.18
Return on average common equity (annualized) 10.59 5.99 1.56
Return on average tangible common equity (annualized)** 10.64 6.02 1.56
Year
YEAR-TO-DATE HIGHLIGHTS 2013 2012 % Change
Operations
Net interest income $ 62,650 $ 76,563 (18)%
Provision for loan losses (7,209) 3,107 (332)
Noninterest income 13,643 15,936 (14)
Noninterest expense 55,311 63,322 (13)
Income before taxes 28,191 26,070 8
Taxes on income 10,756 9,883 9
Net income 17,435 16,187 8
Net income available to common shareholders 17,435 12,446 40
Diluted earnings per share 0.88 0.64 38
Balance Sheet
Total assets 1,981,423 2,122,255 (7)
Loans held for sale 3,060 31,682 (90)
Noncovered portfolio loans 1,251,416 1,321,346 (5)
Covered portfolio loans 16,427 25,707 (36)
Total deposits 1,584,086 1,709,578 (7)
Total shareholders' equity 259,187 246,056 5
Book value per common share 13.13 12.60 4
Key Ratios
Net interest margin 3.19% 3.64%
Efficiency ratio (GAAP-based) 72.50 68.46
Total capital to risk-weighted assets 21.59 21.56
Nonperforming loans to portfolio loans - noncovered 1.49 2.91
Shareholders' equity to total assets 13.08 11.59
Tangible common equity to tangible assets* 13.03 11.54
Return on average assets (annualized) 0.86 0.72
Return on average common equity (annualized) 6.90 5.14
Return on average tangible common equity (annualized)** 6.94 5.16
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.
SOUTHWEST BANCORP, INC. Table 2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
December 31, December 31,
2013 2012
Assets
Cash and due from banks $ 28,062 $ 45,045
Interest-bearing deposits 251,777 243,034
Cash and cash equivalents 279,839 288,079
Securities held to maturity (fair values of $12,115. and $13,659, respectively) 11,720 12,797
Securities available for sale (amortized cost of $385,423, and $358,317, respectively) 382,479 364,315
Loans held for sale 3,060 31,682
Noncovered loans receivable 1,251,416 1,321,346
Less: Allowance for loan losses (36,607) (46,494)
Net noncovered loans receivable 1,214,809 1,274,852
Covered loans receivable (includes loss share: $1,812 and $6,714, respectively) 16,427 25,707
Less: Allowance for loan losses (56) (224)
Net covered loans receivable 16,371 25,483
Net loans receivable 1,231,180 1,300,335
Accrued interest receivable 5,335 6,365
Income tax receivable -- 24,525
Premises and equipment, net 20,833 21,691
Noncovered other real estate 560 11,315
Covered other real estate 2,094 3,643
Goodwill 1,214 1,214
Other intangible assets, net 4,980 4,864
Other assets 38,129 51,430
Total assets $ 1,981,423 $ 2,122,255
Liabilities
Deposits:
Noninterest-bearing demand $ 444,796 $ 424,008
Interest-bearing demand 120,156 112,012
Money market accounts 439,981 423,417
Savings accounts 41,727 37,693
Time deposits of $100,000 or more 251,185 351,273
Other time deposits 286,241 361,175
Total deposits 1,584,086 1,709,578
Accrued interest payable 832 1,116
Income tax payable 78 --
Other liabilities 10,215 13,180
Other borrowings 80,632 70,362
Subordinated debentures 46,393 81,963
Total liabilities 1,722,236 1,876,199
Shareholders' equity
Common stock -- $1 par value; 40,000,000 shares authorized; 19,732,926, and 19,529,705, shares issued and outstanding, respectively 19,733 19,530
Additional paid-in capital 99,937 99,705
Retained earnings 142,528 125,093
Accumulated other comprehensive income (loss) (3,011) 1,728
Total shareholders' equity 259,187 246,056
Total liabilities and shareholders' equity $ 1,981,423 $ 2,122,255
SOUTHWEST BANCORP, INC. Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share)
For the three months ended For the year
December 31, September 30, December 31, ended December 31,
2013 2013 2012 2013 2012
Interest income
Loans $ 16,499 $ 16,242 $ 19,021 $ 66,162 $ 84,602
Investment securities 1,747 1,623 1,796 6,655 7,814
Other interest-earning assets 332 270 191 1,097 755
Total interest income 18,578 18,135 21,008 73,914 93,171
Interest expense
Interest-bearing deposits 1,148 1,317 2,014 5,559 9,703
Other borrowings 225 225 224 892 895
Subordinated debentures 568 1,320 1,485 4,813 6,010
Total interest expense 1,941 2,862 3,723 11,264 16,608
Net interest income 16,637 15,273 17,285 62,650 76,563
Provision for loan losses (6,502) (329) 3,085 (7,209) 3,107
Net interest income after provision for loan losses 23,139 15,602 14,200 69,859 73,456
Noninterest income
Service charges and fees 2,635 2,589 2,971 10,491 11,559
Gain on sales of loans 385 619 910 2,649 3,133
Gain on investment securities -- -- 802 -- 837
Other noninterest income 48 339 188 503 407
Total noninterest income 3,068 3,547 4,871 13,643 15,936
Noninterest expense
Salaries and employee benefits 8,057 7,645 7,956 31,877 29,919
Occupancy 2,805 2,721 2,672 10,779 10,581
FDIC and other insurance 460 413 510 1,764 2,531
Other real estate, net 330 (387) 2,867 (1,098) 6,565
General and administrative 3,413 2,627 3,648 11,989 13,726
Total noninterest expense 15,065 13,019 17,653 55,311 63,322
Income before taxes 11,142 6,130 1,418 28,191 26,070
Taxes on income 4,310 2,330 446 10,756 9,883
Net income $ 6,832 $ 3,800 $ 972 $ 17,435 $ 16,187
Net income available to common shareholders $ 6,832 $ 3,800 $ 972 $ 17,435 $ 12,446
Basic earnings per common share $ 0.34 $ 0.19 $ 0.05 $ 0.88 $ 0.64
Diluted earnings per common share 0.34 0.19 0.05 0.88 0.64
Common dividends declared per share -- -- -- -- --
SOUTHWEST BANCORP, INC. Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
(Dollars in thousands)
For the three months ended
December 31, 2013 September 30, 2013
Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets
Noncovered loans $ 1,270,307 $16,186 5.06% $ 1,277,747 $15,837 4.92%
Covered loans 18,180 313 6.83 20,271 405 7.93
Investment securities 390,160 1,747 1.78 364,746 1,623 1.76
Other interest-earning assets 253,327 332 0.52 287,968 270 0.37
Total interest-earning assets 1,931,974 18,578 3.82 1,950,732 18,135 3.69
Other assets 47,369 57,622
Total assets $ 1,979,343 $ 2,008,354
Liabilities and Shareholders' Equity
Interest-bearing demand deposits $ 111,744 $ 31 0.11% $ 117,124 $ 35 0.12%
Money market accounts 426,090 182 0.17 416,839 182 0.17
Savings accounts 41,021 10 0.10 38,992 10 0.10
Time deposits 555,762 925 0.66 600,321 1,090 0.72
Total interest-bearing deposits 1,134,617 1,148 0.40 1,173,276 1,317 0.45
Other borrowings 78,933 225 1.13 75,822 225 1.18
Subordinated debentures 46,393 568 4.90 75,004 1,320 7.04
Total interest-bearing liabilities 1,259,943 1,941 0.61 1,324,102 2,862 0.86
Noninterest-bearing demand deposits 452,849 422,203
Other liabilities 10,564 10,319
Shareholders' equity 255,987 251,730
Total liabilities and shareholders' equity $ 1,979,343 $ 2,008,354
Net interest income and spread $16,637 3.21% $15,273 2.83%
Net interest margin (1) 3.42% 3.11%
Average interest-earning assets to average interest-bearing liabilities 153.34% 147.32%
(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 year ended December 31,
2013 2012
Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets
Noncovered loans $ 1,293,596 $ 64,555 4.99% $ 1,536,494 $ 82,288 5.36%
Covered loans 21,405 1,607 7.51 30,824 2,314 7.51
Investment securities 377,460 6,655 1.76 350,021 7,814 2.23
Other interest-earning assets 272,940 1,097 0.40 187,478 755 0.40
Total interest-earning assets 1,965,401 73,914 3.76 2,104,817 93,171 4.43
Other assets 63,865 138,929
Total assets $ 2,029,266 $ 2,243,746
Liabilities and Shareholders' Equity
Interest-bearing demand deposits $ 122,106 $ 148 0.12% $ 114,974 $ 219 0.19%
Money market accounts 420,767 790 0.19 381,292 1,077 0.28
Savings accounts 39,397 44 0.11 35,741 53 0.15
Time deposits 617,824 4,577 0.74 842,979 8,354 0.99
Total interest-bearing deposits 1,200,094 5,559 0.46 1,374,986 9,703 0.71
Other borrowings 74,115 892 1.20 61,822 895 1.45
Subordinated debentures 71,243 4,813 6.76 81,963 6,010 7.33
Total interest-bearing liabilities 1,345,452 11,264 0.84 1,518,771 16,608 1.09
Noninterest-bearing demand deposits 420,347 396,091
Other liabilities 10,925 45,368
Shareholders' equity 252,542 283,516
Total liabilities and shareholders' equity $ 2,029,266 $ 2,243,746
Net interest income and spread $ 62,650 2.92% $ 76,563 3.34%
Net interest margin (1) 3.19% 3.64%
Average interest-earning assets to average interest-bearing liabilities 146.08% 138.59%
(1) Net interest margin = annualized net interest income / average interest-earning assets
SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
LOAN COMPOSITION
Noncovered:
Real estate mortgage:
Commercial $ 740,997 $ 743,858 $ 786,686 $ 819,873 $ 870,977 $ 898,453 $ 931,239 $ 996,486
One-to-four family residential 80,058 80,561 77,445 73,911 70,952 74,081 74,390 76,287
Real estate construction:
Commercial 143,650 162,995 158,907 139,462 130,753 206,342 211,098 222,678
One-to-four family residential 4,646 4,464 5,241 5,015 3,656 3,438 4,184 3,814
Commercial 254,087 263,598 235,667 232,224 240,498 244,018 263,085 273,324
Installment and consumer:
Guaranteed student loans 4,394 4,471 4,520 4,576 4,680 4,872 5,153 5,276
Other 26,644 27,698 27,977 28,553 31,512 32,710 33,555 31,766
Total noncovered loans, including held for sale 1,254,476 1,287,645 1,296,443 1,303,614 1,353,028 1,463,914 1,522,704 1,609,631
Less allowance for loan losses (36,607) (40,013) (40,270) (42,639) (46,494) (43,607) (43,807) (45,023)
Total noncovered loans, net $ 1,217,869 $ 1,247,632 $ 1,256,173 $ 1,260,975 $ 1,306,534 $ 1,420,307 $ 1,478,897 $ 1,564,608
Covered:
Real estate mortgage:
Commercial $ 11,282 $ 13,577 $ 15,452 $ 16,970 $ 18,298 $ 20,664 $ 21,472 $ 22,607
One-to-four family residential 3,930 4,084 4,253 4,458 4,881 5,059 5,432 5,766
Real estate construction:
Commercial 198 312 320 367 382 419 1,627 2,344
Commercial 971 967 1,554 1,715 2,037 1,937 2,033 2,401
Installment and consumer 46 40 67 91 109 118 148 196
Total covered loans 16,427 18,980 21,646 23,601 25,707 28,197 30,712 33,314
Less allowance for loan losses (56) (68) (82) (214) (224) (138) (91) (60)
Total covered loans, net $ 16,371 $ 18,912 $ 21,564 $ 23,387 $ 25,483 $ 28,059 $ 30,621 $ 33,254
LOANS BY SEGMENT
Oklahoma banking $ 681,999 $ 681,749 $ 656,356 $ 628,747 $ 652,121 $ 704,916 $ 751,758 $ 810,217
Texas banking 366,697 414,433 444,327 495,815 520,481 560,197 588,370 616,455
Kansas banking 198,992 206,802 210,189 195,355 174,451 192,249 189,292 177,508
Subtotal 1,247,688 1,302,984 1,310,872 1,319,917 1,347,053 1,457,362 1,529,420 1,604,180
Secondary market 23,215 3,641 7,217 7,298 31,682 34,749 23,996 38,765
Total loans $ 1,270,903 $ 1,306,625 $ 1,318,089 $ 1,327,215 $ 1,378,735 $ 1,492,111 $ 1,553,416 $ 1,642,945
NONPERFORMING LOANS BY TYPE
Construction & development $ 2,721 $ 5,659 $ 5,989 $ 6,409 $ 3,355 $ 3,436 $ 3,608 $ 3,768
Commercial real estate 6,564 12,203 12,325 13,362 18,337 20,576 4,932 6,821
Commercial 8,819 10,887 10,719 11,861 15,232 1,791 10,878 2,209
One-to-four family residential 456 396 418 651 1,310 949 1,125 1,508
Consumer 53 55 64 73 160 131 176 118
Total nonperforming loans - noncovered $ 18,613 $ 29,200 $ 29,515 $ 32,356 $ 38,394 $ 26,883 $ 20,719 $ 14,424
NONPERFORMING LOANS BY SEGMENT
Oklahoma banking $ 5,547 $ 3,279 $ 1,678 $ 2,000 $ 2,956 $ 4,369 $ 2,979 $ 3,550
Texas banking 11,902 24,963 26,294 28,817 33,756 19,940 14,894 5,703
Kansas banking 1,164 958 1,543 1,539 1,682 2,574 2,846 5,171
Total nonperforming loans - noncovered $ 18,613 $ 29,200 $ 29,515 $ 32,356 $ 38,394 $ 26,883 $ 20,719 $ 14,424
OTHER REAL ESTATE BY TYPE
Construction & development $ -- $ 676 $ 145 $ 215 $ 215 $ 445 $ 2,585 $ 3,542
Commercial real estate 560 -- -- 9,207 11,003 14,130 14,129 14,854
One-to-four family residential -- -- -- -- 97 108 549 933
Total other real estate - noncovered $ 560 $ 676 $ 145 $ 9,422 $ 11,315 $ 14,683 $ 17,263 $ 19,329
Continued
SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA Continued
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
OTHER REAL ESTATE BY SEGMENT
Oklahoma banking $ -- $ -- $ -- $ 1,980 $ 3,393 $ 6,178 $ 6,178 $ 6,273
Texas banking -- -- -- 7,227 7,227 7,227 9,162 9,846
Kansas banking 560 676 145 215 695 1,278 1,923 3,210
Total other real estate - noncovered $ 560 $ 676 $ 145 $ 9,422 $ 11,315 $ 14,683 $ 17,263 $ 19,329
POTENTIAL PROBLEM LOANS BY TYPE
Construction & development 21,501 22,222 20,745 19,968 22,077 22,565 25,563 33,907
Commercial real estate 68,951 62,475 62,166 60,329 58,549 53,725 71,537 67,654
Commercial 7,107 10,028 10,136 8,220 12,526 9,305 12,753 23,506
One-to-four family residential 488 414 1,071 1,129 1,147 1,157 1,230 1,253
Consumer -- -- -- -- 62 -- -- --
Total potential problem loans - noncovered $ 98,047 $ 95,139 $ 94,118 $ 89,646 $ 94,361 $ 86,752 $ 111,083 $ 126,320
POTENTIAL PROBLEM LOANS BY SEGMENT
Oklahoma banking $ 29,005 $ 31,345 $ 31,495 $ 32,246 $ 30,875 $ 39,606 $ 48,038 $ 44,122
Texas banking 65,079 59,561 58,710 51,978 58,377 43,313 59,368 79,735
Kansas banking 3,963 4,233 3,913 5,422 5,109 3,833 3,677 2,463
Total potential problem loans - noncovered $ 98,047 $ 95,139 $ 94,118 $ 89,646 $ 94,361 $ 86,752 $ 111,083 $ 126,320
LOANS OUT OF MARKET
Net balance of loans out of market:
Iowa $ 22,316 $ 22,438 $ 22,537 $ 22,659 $ 22,826 $ 22,958 $ 23,022 $ 23,130
Arizona 19,458 30,516 31,564 33,017 40,326 41,255 39,449 34,749
North Carolina 13,070 10,161 300 407 65 604 682 771
Colorado 12,553 12,358 8,586 3,067 3,110 3,119 3,111 3,104
Kentucky 12,404 10,088 11,860 10,144 8,691 7,517 9,455 517
California 9,154 9,472 9,632 10,866 9,791 9,684 9,922 10,252
Mississippi 8,823 8,929 9,233 9,170 9,239 9,842 -- --
Tennessee 6,048 6,136 6,171 6,246 6,204 6,232 6,310 6,368
Ohio 3,549 3,294 4,759 4,132 10,438 11,182 11,502 12,650
Pennsylvania 3,109 3,299 3,441 44 -- -- -- --
Other 12,171 24,562 27,225 28,285 32,975 33,448 33,795 31,349
Total loans out of market $ 122,655 $ 141,253 $ 135,308 $ 128,037 $ 143,665 $ 145,841 $ 137,248 $ 122,890
Nonperforming loans out of market:
Arizona $ 9,302 $ 11,205 $ 12,167 $ 13,419 $ 11,599 $ 250 $ 256 $ 261
New York -- 1,033 1,048 -- -- -- -- --
Florida 252 258 264 270 275 281 287 293
Colorado -- -- -- 131 131 131 131 131
Other -- -- 1 -- 59 -- -- --
Total nonperforming out of market $ 9,554 $ 12,496 $ 13,480 $ 13,820 $ 12,064 $ 662 $ 674 $ 685
Potential problem loans out of market:
Iowa $ 11,568 $ 11,645 $ 11,719 $ 11,792 $ 11,868 $ 11,941 $ 11,970 $ 12,035
New Jersey 1,094 1,170 1,244 -- -- -- -- --
California 482 499 512 524 536 548 559 570
Florida 66 71 75 80 85 90 95 100
Arizona -- -- -- -- 9,037 -- -- --
Total potential problem out of market $ 13,210 $ 13,385 $ 13,550 $ 12,396 $ 21,526 $ 12,579 $ 12,624 $ 12,705
Continued
SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA Continued
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
ALLOWANCE ACTIVITY
Balance, beginning of period $ 40,081 $ 40,352 $ 42,853 $ 46,718 $ 43,745 $ 43,898 $ 45,083 $ 44,684
Charge offs 2,681 600 2,072 4,651 722 2,653 2,229 1,936
Recoveries 5,765 658 447 288 610 4,226 1,012 619
Net charge offs (recoveries) (3,084) (58) 1,625 4,363 112 (1,573) 1,217 1,317
Provision for loan losses (6,502) (329) (876) 498 3,085 (1,726) 32 1,716
Balance, end of period $ 36,663 $ 40,081 $ 40,352 $ 42,853 $ 46,718 $ 43,745 $ 43,898 $ 45,083
NET CHARGE OFFS BY TYPE
Construction & development (4,845) (20) 111 (19) (22) (1,823) (85) (42)
Commercial real estate (62) 274 7 416 (18) 2,022 91 14
Commercial 1,883 (169) 1,085 3,751 239 (1,894) 1,228 1,211
One-to-four family residential (40) (165) 363 167 (40) 20 (105) 123
Consumer (20) 22 59 48 (47) 102 88 11
Total net charge offs (recoveries) by type $ (3,084) $ (58) $ 1,625 $ 4,363 $ 112 $ (1,573) $ 1,217 $ 1,317
NET CHARGE OFFS BY SEGMENT
Oklahoma banking $ (1,294) $ (203) $ 200 $ 589 $ (261) $ 5 $ (247) $ 1,150
Texas banking (2,314) (80) 1,356 3,241 305 857 1,139 227
Kansas banking 524 225 69 533 68 (2,435) 325 (60)
Total net charge offs (recoveries) by segment $ (3,084) $ (58) $ 1,625 $ 4,363 $ 112 $ (1,573) $ 1,217 $ 1,317
SOUTHWEST BANCORP, INC. Table 7
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
PER SHARE DATA
Basic earnings per common share $ 0.34 $ 0.19 $ 0.22 $ 0.12 $ 0.05 $ 0.22 $ 0.15 $ 0.21
Diluted earnings per common share 0.34 0.19 0.22 0.12 0.05 0.22 0.15 0.21
Book value per common share 13.13 12.83 12.67 12.72 12.60 12.59 12.35 12.21
Tangible book value per share* 13.07 12.77 12.60 12.66 12.54 12.53 12.29 12.15
COMMON STOCK
Shares issued and outstanding 19,732,926 19,703,313 19,692,606 19,692,038 19,529,721 19,448,312 19,447,202 19,445,913
OTHER FINANCIAL DATA
Investment securities $ 394,199 $ 382,001 $ 372,403 $ 365,605 $ 377,112 $ 381,499 $ 340,378 $ 333,860
Loans held for sale 3,060 3,641 7,217 7,297 31,682 34,749 23,996 38,765
Noncovered portfolio loans 1,251,416 1,284,004 1,289,226 1,296,317 1,321,346 1,429,165 1,498,708 1,570,866
Total noncovered loans 1,254,476 1,287,645 1,296,443 1,303,614 1,353,028 1,463,914 1,522,704 1,609,631
Covered portfolio loans 16,427 18,980 21,646 23,601 25,707 28,197 30,712 33,314
Total assets 1,981,423 1,972,367 2,031,962 2,091,694 2,122,255 2,151,153 2,264,123 2,268,264
Total deposits 1,584,086 1,583,791 1,615,961 1,677,668 1,709,578 1,743,673 1,788,379 1,806,780
Other borrowings 80,632 78,663 74,334 70,872 70,362 66,694 68,477 55,139
Subordinated debentures 46,393 46,393 81,963 81,963 81,963 81,963 81,963 81,963
Total shareholders' equity 259,187 252,802 249,420 250,509 246,056 244,821 309,003 306,046
Mortgage servicing portfolio 390,732 383,400 368,825 356,032 343,397 329,184 305,465 301,378
INTANGIBLE ASSET DATA
Goodwill $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214
Core deposit intangible 2,058 2,185 2,306 2,424 2,543 2,664 2,785 2,906
Mortgage servicing rights 2,922 2,837 2,675 2,445 2,321 2,122 1,975 1,952
Total intangible assets $ 6,194 $ 6,236 $ 6,195 $ 6,083 $ 6,078 $ 6,000 $ 5,974 $ 6,072
Intangible amortization expense $ 278 $ 314 $ 313 $ 410 $ 283 $ 283 $ 282 $ 296
DEPOSIT COMPOSITION
Non-interest bearing demand $ 444,796 $ 436,904 $ 412,176 $ 416,979 $ 424,008 $ 429,407 $ 421,083 $ 395,141
Interest-bearing demand 120,156 106,176 138,502 125,914 112,012 113,677 119,929 119,759
Money market accounts 439,981 423,720 408,145 437,629 423,417 385,296 361,839 349,419
Savings accounts 41,727 39,727 38,611 39,733 37,693 36,461 35,610 34,679
Time deposits of $100,000 or more 251,185 270,916 295,179 317,270 351,273 389,969 431,317 464,876
Other time deposits 286,241 306,348 323,348 340,143 361,175 388,863 418,601 442,906
Total deposits** $ 1,584,086 $ 1,583,791 $ 1,615,961 $ 1,677,668 $ 1,709,578 $ 1,743,673 $ 1,788,379 $ 1,806,780
OFFICES AND EMPLOYEES
FTE Employees 402 407 408 412 422 429 430 435
Branches 23 23 22 22 22 23 23 23
Loan production offices 0 0 1 1 1 2 2 2
Assets per employee $ 4,929 $ 4,846 $ 4,980 $ 5,077 $ 5,029 $ 5,014 $ 5,265 $ 5,214
____________________
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $ 1,584,086 $ 1,583,791 $ 1,615,961 $ 1,677,668 $ 1,709,578 $ 1,743,673 $ 1,788,379 $ 1,806,780
Less:
Brokered time deposits 1,347 1,343 4,904 5,760 9,865 10,197 12,238 13,307
Other brokered deposits 3,423 3,423 3,422 3,422 3,421 4,421 4,420 6,529
Non-brokered deposits $ 1,579,316 $ 1,579,025 $ 1,607,635 $ 1,668,486 $ 1,696,292 $ 1,729,055 $ 1,771,721 $ 1,786,944
Plus:
Sweep repurchase agreements 55,631 53,663 49,334 45,872 45,362 41,694 43,477 30,139
Core funding $ 1,634,947 $ 1,632,688 $ 1,656,969 $ 1,714,358 $ 1,741,654 $ 1,770,749 $ 1,815,198 $ 1,817,083
Balance sheet amounts are as of period end unless otherwise noted.
SOUTHWEST BANCORP, INC. Table 8
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
PERFORMANCE RATIOS
Return on average assets (annualized) 1.37 % 0.75% 0.87% 0.46% 0.18% 1.06% 0.73% 0.89%
Return on average common equity (annualized) 10.59 5.99 7.00 3.89 1.56 7.11 5.03 7.00
Return on average tangible common equity (annualized)* 10.64 6.02 7.03 3.90 1.56 7.15 5.06 7.03
Net interest margin (annualized) 3.42 3.11 3.07 3.16 3.41 3.59 3.71 3.82
Effective tax rate 38.68 38.01 33.74 43.88 31.45 39.73 37.12 37.50
Efficiency ratio 76.45 69.18 68.93 75.16 79.68 64.47 71.82 58.73
NONPERFORMING ASSETS
Noncovered:
Nonaccrual loans $ 18,560 $ 29,198 $ 29,513 $ 32,356 $ 35,104 $ 26,493 $ 20,474 $ 14,324
90 days past due and accruing 53 2 2 -- 3,290 390 245 100
Total nonperforming loans 18,613 29,200 29,515 32,356 38,394 26,883 20,719 14,424
Other real estate 560 676 145 9,422 11,315 14,683 17,263 19,329
Total nonperforming assets $ 19,173 $ 29,876 $ 29,660 $ 41,778 $ 49,709 $ 41,566 $ 37,982 $ 33,753
Performing restructured $ 28 $ 527 $ 993 $ 512 $ 290 $ 281 $ 328 $ 1,700
Potential problem loans $ 98,047 $ 95,139 $ 94,118 $ 89,646 $ 94,361 $ 86,752 $ 111,083 $ 126,320
Covered:
Nonaccrual loans $ 1,259 $ 3,480 $ 3,062 $ 2,873 $ 3,595 $ 4,809 $ 6,067 $ 7,015
90 days past due and accruing -- -- -- -- -- 353 -- --
Total nonperforming loans 1,259 3,480 3,062 2,873 3,595 5,162 6,067 7,015
Other real estate 2,094 1,017 1,666 2,243 3,643 4,142 3,825 4,694
Total nonperforming assets $ 3,353 $ 4,497 $ 4,728 $ 5,116 $ 7,238 $ 9,304 $ 9,892 $ 11,709
Performing restructured $ 1,600 $ 1,733 $ 1,800 $ 1,854 $ 2,523 $ 2,548 $ 1,701 $ --
Potential problem loans $ 1,703 $ 2,030 $ 3,352 $ 3,986 $ 3,155 $ 1,621 $ 1,573 $ 553
ASSET QUALITY RATIOS
Net loan charge-offs to average portfolio loans (annualized) (0.96)% (0.02)% 0.50% 1.32% 0.03% (0.42)% 0.31% 0.32%
Noncovered:
Nonperforming assets to portfolio loans and other real estate 1.53% 2.33% 2.30% 3.20% 3.73% 2.88% 2.51% 2.12%
Nonperforming loans to portfolio loans 1.49 2.27 2.29 2.50 2.91 1.88 1.38 0.92
Allowance for loan losses to portfolio loans 2.93 3.12 3.12 3.29 3.52 3.05 2.92 2.87
Allowance for loan losses to nonperforming loans 196.67 137.03 136.44 131.78 121.10 162.21 211.43 312.14
Covered:
Nonperforming assets to portfolio loans and other real estate 18.10% 22.49% 20.28% 19.80% 24.66% 28.77% 28.64% 30.81%
Nonperforming loans to portfolio loans 7.66 18.34 14.15 12.17 13.98 18.31 19.75 21.06
Allowance for loan losses to portfolio loans 0.34 0.36 0.38 0.91 0.87 0.49 0.30 0.18
Allowance for loan losses to nonperforming loans 4.45 1.95 2.68 7.45 6.23 2.67 1.50 0.86
CAPITAL RATIOS
Average total shareholders' equity to average assets 12.93% 12.53% 12.41% 11.92% 11.61% 12.31% 13.56% 12.99%
Leverage ratio 14.86 14.78 16.10 15.59 15.01 14.49 16.84 16.20
Tier 1 capital to risk-weighted assets 20.28 20.22 22.48 22.25 20.28 19.36 22.24 21.21
Total capital to risk-weighted assets 21.59 21.52 23.78 23.54 21.56 20.64 23.52 22.49
Tangible common equity to tangible assets*** 13.03 12.76 12.22 11.93 11.54 11.33 10.56 10.42
Continued
SOUTHWEST BANCORP, INC. Table 8
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA Continued
(Dollars in thousands, except per share)
2013 2012
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
REGULATORY CAPITAL DATA
Tier I capital $ 292,051 $ 296,488 $ 326,831 $ 324,659 $ 319,665 $ 317,665 $ 382,263 $ 378,949
Total capital 310,867 315,570 345,717 343,562 339,964 338,739 404,252 401,808
Total risk adjusted assets 1,439,934 1,466,672 1,453,878 1,459,465 1,576,521 1,641,121 1,719,058 1,786,282
Average total assets 1,964,920 2,006,525 2,030,064 2,082,789 2,130,035 2,192,579 2,269,640 2,339,784
____________________
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $ 259,187 $ 252,802 $ 249,420 $ 250,509 $ 246,056 $ 244,821 $ 309,003 $ 306,046
Less:
Goodwill 1,214 1,214 1,214 1,214 1,214 1,214 1,214 1,214
Preferred stock -- -- -- -- -- -- 68,837 68,644
Tangible common equity $ 257,973 $ 251,588 $ 248,206 $ 249,295 $ 244,842 $ 243,607 $ 238,952 $ 236,188
Total assets $ 1,981,423 $ 1,972,367 $ 2,031,962 $ 2,091,694 $ 2,122,255 $ 2,151,153 $ 2,264,123 $ 2,268,264
Less goodwill 1,214 1,214 1,214 1,214 1,214 1,214 1,214 1,214
Tangible assets $ 1,980,209 $ 1,971,153 $ 2,030,748 $ 2,090,480 $ 2,121,041 $ 2,149,939 $ 2,262,909 $ 2,267,050
Tangible common equity to tangible assets 13.03% 12.76% 12.22% 11.93% 11.54% 11.33% 10.56% 10.42%
Balance sheet amounts and ratios are as of period end unless otherwise noted.

CONTACT: For additional information: Mark W. Funke President & CEO Joe T. Shockley, Jr. EVP & CFO (405) 372-2230

Source:Southwest Bancorp, Inc.