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Southwest Bancorp, Inc. Reports Net Income of $5.9 Million for the Third Quarter of 2012

Southwest Bancorp, Inc. Logo

STILLWATER, Okl., Oct. 18, 2012 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP), ("Southwest"), today reported earnings for the third quarter of 2012 of $5.9 million, compared to a loss of ($9.5) million for the third quarter of 2011. Net income available to common shareholders was $4.3 million, or $0.22 per diluted share for the third quarter of 2012, compared to a net loss available to common shareholders of ($10.6) million, or ($0.54) per diluted share for the third quarter of 2011.

Southwest reported earnings for the nine months ended September 30, 2012 of $15.2 million, compared to a loss of ($10.0) million for the nine months ended September 30, 2011. Net income available to common shareholders for the nine months ended September 30, 2012 totaled $11.5 million or $0.59 per diluted share compared to a net loss available to common shareholders of ($13.2) million or ($0.68) per diluted share for the nine months ended September 30, 2011.

Rick Green, President Emeritus, stated, "During the third quarter, Southwest took actions to achieve its strategic goals. In July, we resumed payment of dividends on the three trust preferred securities and our Series B Preferred securities and brought current all dividends that had been previously deferred. The Series B Preferred securities were issued by Southwest to the U.S. Treasury Department under the Treasury's Capital Purchase Program in December 2008."

"In August 2012, Southwest completed the repurchase of all $70.0 million of the Series B Preferred securities sold to the Treasury. Southwest incurred a one-time non-cash equity charge of $1.2 million to reflect accelerated accretion of the remaining discount on the securities. The funds for the repurchase were internally generated, and Southwest and each of its banking subsidiaries remain well capitalized after the repurchase."

"We were able to accomplish these goals while at the same time improving year-to-date profitability, stabilizing asset quality, and maintaining strong capital levels."

Mr. Green went on to say, "As previously announced, on October 1, 2012 Mark W. Funke became Southwest's President and Chief Executive Officer. Mr. Funke previously served as market president for Bank of Oklahoma – Oklahoma City."

"These actions are designed to allow Southwest to continue to pursue our strategy of independent operation for the benefit of all of our shareholders."

Mark Funke, new President and Chief Executive Officer, stated, "I am excited to join this organization and expect to lead Southwest on a path of conservative growth. We will continue to have an emphasis on solid underwriting and taking advantage of opportunities for growth and increasing shareholder value."

Key items for the quarter were as follows:

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.

  • Nonperforming assets were $41.6 million, or 2.88% of portfolio loans and other real estate, as of September 30, 2012, an increase of $3.6 million (9%) from $38.0 million, or 2.51% of portfolio loans and other real estate, as of June 30, 2012. The increase in nonperforming assets during the third quarter of 2012 is attributable to placing $18.7 million in loans on nonaccrual, offset in part by the receipt of $9.9 million in resolutions and payments on nonperforming loans, net charge-offs of $2.6 million in nonperforming loans, the receipt of $2.4 million from sales of other real estate, and the recognition of impairments in other real estate assets of $0.2 million.
  • Nonperforming loans, a component of nonperforming assets, were $26.9 million, or 1.88% of portfolio loans, as of September 30, 2012, an increase of $6.2 million (30%) from $20.7 million, or 1.38% of portfolio loans, as of June 30, 2012. This increase is primarily the result of two commercial real estate relationships offset in part by the resolution of a commercial healthcare related loan, all in our Texas market segment.
  • Potential problem loans were $86.8 million as of September 30, 2012, a decrease of $24.3 million (22%) from $111.1 million as of June 30, 2012. The decrease in potential problem loans resulted from $18.0 million in movement to nonaccrual, $7.4 million in resolutions and paydowns, and $0.8 million in upgrades, offset in part by the identification of $1.9 million in additional potential problem loans.
  • The allowance for loan losses was $43.6 million at September 30, 2012, a decrease of $0.2 million (less than 1%) from June 30, 2012. The allowance for loan losses to portfolio loans was 3.05% as of September 30, 2012 compared to 2.92% as of June 30, 2012. The allowance for loan losses to nonperforming loans was 162.21% as of September 30, 2012 compared to 211.43% as of June 30, 2012.
  • A negative provision of $1.7 million was recorded for the third quarter of 2012, reflecting the appropriate allowance required under Southwest's established methodology.
  • Portfolio loans decreased $69.6 million (5%) from June 30, 2012. The decline was anticipated due in part to the change in our lending focus away from larger average size loans.
  • Noninterest expense decreased $2.2 million (13%) from June 30, 2012.
  • The capital ratios of Southwest and each of its banking subsidiaries, as of September 30, 2012, met the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $338.7 million, for a total risk-based capital ratio of 20.64%, and Tier 1 capital was $317.7 million, for a Tier 1 risk-based capital ratio of 19.36%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $174.6 million. Stillwater National Bank, Southwest's principal banking subsidiary, had total regulatory capital of $267.6 million, for a total risk-based capital ratio of 18.46%, and Tier 1 capital of $234.1 million, for a Tier 1 risk-based capital ratio of 16.15%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $122.6 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.

Financial Overview

Condition: At September 30, 2012 total assets were $2.2 billion, down $226.1 million, or 9%, from December 31, 2011, and total loans were $1.5 billion, down $271.4 million, or 15%, from December 31, 2011.

At September 30, 2012 the noncovered allowance for loan losses was $43.6 million, a decrease of 1% from December 31, 2011. The noncovered allowance for loan losses to noncovered portfolio loans was 3.05% as of September 30, 2012 compared to 2.62% as of December 31, 2011.

Investment securities increased $106.1 million, or 39%, to $381.5 million as of September 30, 2012, from $275.4 million as of December 31, 2011. The increase is primarily the result of a $53.7 million, or 82%, increase in U.S. government and agency securities, a $29.4 million, or 16%, increase in government agency guaranteed residential mortgage-backed securities, a $21.3 million, or 81%, increase in municipal securities, and a $1.2 million increase in other mortgage-backed securities. The investment portfolio is managed to provide safety, liquidity, and collateral for public funds and borrowings. Southwest plans to continue to invest in treasury, U.S. agency, and high grade municipal securities. The investment portfolio continues to be managed in compliance with the current investment policy, including interest rate and liquidity risk stress testing, and the average duration of the portfolio not exceeding four years.

Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 98% of total funding as of September 30, 2012, compared to 94% at December 31, 2011. Core funding by segment is as follows as of September 30, 2012 and December 31, 2011, respectively: $1,335.2 million and $1,426.2 million in Oklahoma banking, $162.8 million and $156.2 million in Texas banking, $263.9 million and $273.6 million in Kansas banking, and $8.9 million and $3.9 million in the secondary market and other operations segments. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 2% of total funding at September 30, 2012, compared to 6% at December 31, 2011. Please see Table 7 for details on these non-GAAP financial measures.

Third Quarter Results:

Summary: For the third quarter of 2012, net income available to common shareholders was $4.3 million, compared to a net loss available to common shareholders of ($10.6) million for the third quarter of 2011. The $14.9 million increase in our net income available to common shareholders from third quarter 2011 is the result of a $26.4 million decrease in the provision for loan losses, a $3.1 million decrease in noninterest expense, and a $0.4 million increase in noninterest income, offset in part by a $5.3 million decrease in net interest income and a $9.1 million increase in income tax expense.

The third quarter 2012 effective tax rate was 39.73%.

Net Interest Income: Net interest income totaled $18.7 million for the third quarter of 2012, compared to $24.0 million for the third quarter of 2011, a decrease of $5.3 million, or 22%, and to $19.7 million for the second quarter of 2012, a decrease of $1.1 million, or 5%. Lower average loan volume was the primary cause of each of these decreases. Net interest margin was 3.59% for the third quarter of 2012, compared to 3.77% for the third quarter of 2011 and 3.71% for the second quarter of 2012.

Provision for Loan Losses and Net Charge-offs: A negative provision for loan losses of $1.7 million was recorded for the third quarter of 2012, compared to a provision for loan losses of $24.6 million for third quarter of 2011 and $32,000 for the second quarter of 2012. For the third quarter of 2012, net recoveries totaled $1.6 million, or (0.42%) (annualized) of average portfolio loans, compared to net charge-offs of $14.5 million, or 2.70% (annualized) of average portfolio loans for the third quarter of 2011 and $1.2 million, or 0.31% (annualized) of average portfolio loans for the second quarter of 2012. 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.

Noninterest Income: Noninterest income totaled $4.0 million for the third quarter of 2012, compared to $3.6 million for the third quarter of 2011 and $3.6 million for the second quarter of 2012. The increase in noninterest income is the result of increased gains on sale of mortgage loans.

Noninterest Expense: Noninterest expense totaled $14.6 million for the third quarter of 2012, compared to $17.7 million for the third quarter of 2011 and $16.8 million for the second quarter of 2012.

The $3.1 million decrease from third quarter of 2011 consists of a $1.9 million decrease in general and administrative expense, which is primarily the result of decreased loan collection costs and legal fees, a $0.4 million decrease in personnel expense, a $0.4 million decrease in the provision for unfunded loan commitments, a $0.3 million decrease in FDIC and other insurance expense, and a $0.2 million decrease in other real estate expense.

The $2.2 million decrease from second quarter of 2012 consists of a $0.8 million decrease in other real estate expense due to the second quarter fair value write-down of properties, a $0.8 million decrease in general and administrative expense, which is primarily the result of decreased legal fees, decreased loan review costs and the second quarter write-down of an investment carried at cost, and a $0.5 million decrease in the provision for unfunded loan commitments.

Year-to-date Results:

Summary: Net income available to common shareholders was $11.5 million as of September 30, 2012, compared to a net loss available to common shareholders of ($13.2) million as of September 30, 2011. The $24.7 million increase in our net income available to common shareholders from 2011 is the result of a $53.8 million decrease in the provision for loan losses, a $2.6 million decrease in noninterest expense, and a $0.6 million increase in noninterest income, offset in part by a $15.2 million decrease in net interest income and a $16.6 million increase in income tax expense.

The year-to-date effective tax rate was 38.28% as of September 30, 2012.

Net Interest Income: Net interest income totaled $59.3 million for the first nine months of 2012, compared to $74.4 million for the first nine months of 2011, a decrease of $15.2 million, or 20%. Lower loan volume was the primary cause of this decrease. Year-to-date net interest margin was 3.71%, compared to 3.78% for 2011.

Provision for Loan Losses and Net Charge-offs: The provision for loan losses totaled $22,000 for the first nine months of 2012, compared to $53.8 million for the first nine months of 2011. Net charge-offs totaled $1.0 million, or 0.08% (annualized) of average portfolio loans year-to-date as of September 30, 2012, compared to $54.3 million, or 3.24% (annualized) of average portfolio loans for the same period 2011. 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 for the period.

Noninterest Income: Noninterest income totaled $11.1 million for the first nine months of 2012, compared to $10.4 million for the first nine months of 2011. The increase in noninterest income was primarily the result of a $1.2 million increase in gain on sale of loans, offset in part by a $0.6 million decline in service charges and fees.

Noninterest Expense: Noninterest expense totaled $45.7 million for the first nine months of 2012, compared to $48.3 million for the first nine months of 2011. The decrease consists of a $1.0 million decrease in FDIC and other insurance expense, a $0.8 million decrease in other real estate expense, a $0.3 million decrease in personnel expense, a $0.3 million decrease in general and administrative expense, and a $0.3 million decrease in occupancy expense.

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Stillwater National Bank and Trust Company ("Stillwater National") and Bank of Kansas. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At September 30, 2012 we had total assets of $2.2 billion, deposits of $1.7 billion, and shareholders' equity of $250.4 million.

Our area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, and commercial and commercial real estate borrowers. We established a strategic focus on healthcare lending in 1974. We provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of September 30, 2012, approximately $521.0 million, or 36%, of our noncovered loans were loans to individuals and businesses in the healthcare industry. We conduct regular market reviews of our current and potential healthcare lending and the appropriate concentrations within healthcare based upon economic and regulatory conditions.

We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or "spec" residential property credits. Additionally, subprime residential lending has never been a part of our business strategy, and our exposure to subprime mortgage loans and subprime lenders is minimal. One-to-four family mortgages account for 5% of total noncovered loans. As of September 30, 2012 approximately $1.1 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $353.4 million of loans to individuals and businesses in the healthcare industry.

Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest's public trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.

The Southwest Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8074

Caution About Forward-Looking Statements

We make forward-looking statements in this news release that are subject to risks and uncertainties. We intend these statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include:

  • Statements of Southwest's goals, intentions, and expectations;
  • Estimates of risks and of future costs and benefits;
  • Expectations regarding our future financial performance and the financial performance of our operating segments;
  • Expectations regarding regulatory actions;
  • Expectations regarding our ability to utilize tax loss benefits;
  • Assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs;
  • Estimates of the value of assets held for sale or available for sale; and
  • Statements of our ability to achieve financial and other goals.

These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate our future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read the "Risk Factors" contained in Southwest's reports to the Securities and Exchange Commission.

The cautionary statements in this release also identify important factors and possible events that involve risk and uncertainties that could cause our actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made. We do not intend, and undertake no obligation, to update or revise any forward-looking statements contained in this release, whether as a result of differences in actual results, changes in assumptions, or changes in other factors affecting such statements, except as required by law.

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of September 30, 2012 through the date its financial statements are filed with the Securities and Exchange Commission. The September 30, 2012 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)
Third Quarter Second Quarter
QUARTERLY HIGHLIGHTS % %
2012 2011 Change 2012 Change
Operations
Net interest income $ 18,682 $ 24,025 (22)% $ 19,747 (5)%
Provision for loan losses (1,726) 24,626 (107) 32 (5,494)
Noninterest income 3,950 3,589 10 3,601 10
Noninterest expense 14,591 17,693 (18) 16,769 (13)
Income (loss) before taxes 9,767 (14,705) (166) 6,547 49
Taxes on income 3,880 (5,180) (175) 2,430 60
Net income (loss) 5,887 (9,525) (162) 4,117 43
Net income (loss) available to common shareholders 4,344 (10,589) (141) 3,011 44
Diluted earnings per share 0.22 (0.54) (141) 0.15 47
Balance Sheet
Total assets 2,156,750 2,572,492 (16) 2,269,720 (5)
Loans held for sale 34,749 39,902 (13) 23,996 45
Noncovered portfolio loans 1,429,165 1,933,694 (26) 1,498,708 (5)
Covered portfolio loans 28,197 41,209 (32) 30,712 (8)
Total deposits 1,743,673 2,022,253 (14) 1,788,379 (2)
Total shareholders' equity 250,418 367,024 (32) 314,600 (20)
Book value per common share 12.88 15.37 (16) 12.64 2
Key Ratios
Net interest margin 3.59% 3.77% 3.71%
Efficiency ratio 64.47 64.07 71.82
Total capital to risk-weighted assets 20.64 20.81 23.52
Nonperforming loans to portfolio loans - noncovered 1.88 6.66 1.38
Shareholders' equity to total assets 11.61 14.27 13.86
Tangible common equity to tangible assets* 11.33 11.38 10.56
Return on average assets (annualized) 1.07 (1.43) 0.72
Return on average common equity (annualized) 7.03 (13.42) 4.92
Return on average tangible common equity (annualized)** 7.23 (13.72) 5.06
YEAR-TO-DATE HIGHLIGHTS Nine Months
%
2012 2011 Change
Operations
Net interest income $ 59,278 $ 74,431 (20)%
Provision for loan losses 22 53,816 (100)
Noninterest income 11,065 10,442 6
Noninterest expense 45,669 48,298 (5)
Income (loss) before taxes 24,652 (17,241) (243)
Taxes on income 9,437 (7,207) (231)
Net income (loss) 15,215 (10,034) (252)
Net income (loss) available to common shareholders 11,474 (13,208) (187)
Diluted earnings per share 0.59 (0.68) (187)
Balance Sheet
Total assets 2,156,750 2,572,492 (16)
Loans held for sale 34,749 39,902 (13)
Noncovered portfolio loans 1,429,165 1,933,694 (26)
Covered portfolio loans 28,197 41,209 (32)
Total deposits 1,743,673 2,022,253 (14)
Total shareholders' equity 250,418 367,024 (32)
Book value per common share 12.88 15.37 (16)
Key Ratios
Net interest margin 3.71% 3.78%
Efficiency ratio (GAAP-based) 64.92 56.91
Total capital to risk-weighted assets 20.64 20.81
Nonperforming loans to portfolio loans - noncovered 1.88 6.66
Shareholders' equity to total assets 11.61 14.27
Tangible common equity to tangible assets* 11.33 11.38
Return on average assets 0.89 (0.49)
Return on average common equity 6.24 (5.61)
Return on average tangible common equity** 6.41 (5.74)
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.
SOUTHWEST BANCORP, INC. Table 2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share)
September 30, December 31, September 30,
2012 2011 2011
Assets
Cash and due from banks $ 25,524 $ 30,247 $ 27,501
Interest-bearing deposits 164,712 199,642 89,099
Cash and cash equivalents 190,236 229,889 116,600
Securities held to maturity (fair values of $13,854, $15,885, $15,805, respectively) 12,942 15,252 15,398
Securities available for sale (amortized cost of $361,379, $253,869, $247,094, respectively) 368,557 260,100 254,201
Loans held for sale 34,749 38,695 39,902
Noncovered loans receivable 1,429,165 1,687,178 1,993,694
Less: Allowance for loan losses (43,607) (44,233) (64,698)
Net noncovered loans receivable 1,385,558 1,642,945 1,928,996
Covered loans receivable (includes loss share: $7,333, $10,073, $10,976, respectively) 28,197 37,615 41,209
Less: Allowance for loan losses (138) (451) --
Net covered loans receivable 28,059 37,164 41,209
Net loans receivable 1,413,617 1,680,109 1,970,205
Accrued interest receivable 7,347 7,176 8,035
Income tax receivable 24,549 28,666 12,509
Premises and equipment, net 22,197 22,700 22,706
Noncovered other real estate 14,683 19,844 70,785
Covered other real estate 4,142 4,529 5,350
Goodwill 6,811 6,811 6,811
Other intangible assets, net 4,786 4,857 4,966
Other assets 52,134 64,245 45,024
Total assets $ 2,156,750 $ 2,382,873 $ 2,572,492
Liabilities
Deposits:
Noninterest-bearing demand $ 429,407 $ 400,985 $ 388,365
Interest-bearing demand 113,677 105,905 98,270
Money market accounts 385,296 423,181 461,546
Savings accounts 36,461 33,406 31,319
Time deposits of $100,000 or more 389,969 487,907 551,914
Other time deposits 388,863 469,998 490,839
Total deposits 1,743,673 1,921,382 2,022,253
Accrued interest payable 944 3,689 2,507
Other liabilities 13,058 12,174 12,162
Other borrowings 66,694 56,479 86,583
Subordinated debentures 81,963 81,963 81,963
Total liabilities 1,906,332 2,075,687 2,205,468
Shareholders' equity
Serial preferred stock; 2,000,000 shares authorized;
0, 70,000, 70,000 shares issued and outstanding, respectively -- 68,455 68,268
Common stock -- $1 par value; 40,000,000 shares authorized;
19,448,312, 19,444,213, 19,441,577 shares issued and outstanding, respectively 19,448 19,444 19,442
Additional paid-in capital 98,903 98,932 98,981
Retained earnings 129,720 118,244 177,584
Accumulated other comprehensive income 2,347 2,111 2,749
Total shareholders' equity 250,418 307,186 367,024
Total liabilities and shareholders' equity $ 2,156,750 $ 2,382,873 $ 2,572,492
SOUTHWEST BANCORP, INC. Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share)
For the three months For the nine months
ended September 30, ended September 30,
2012 2011 2012 2011
Interest income
Loans $ 20,496 $ 27,873 $ 65,581 $ 87,890
Investment securities 1,934 1,779 6,019 5,389
Other interest-earning assets 186 131 563 401
Total interest income 22,616 29,783 72,163 93,680
Interest expense
Interest-bearing deposits 2,251 3,811 7,689 13,475
Other borrowings 225 469 671 1,460
Subordinated debentures 1,458 1,478 4,525 4,314
Total interest expense 3,934 5,758 12,885 19,249
Net interest income 18,682 24,025 59,278 74,431
Provision for loan losses (1,726) 24,626 22 53,816
Net interest income (loss) after provision for loan losses 20,408 (601) 59,256 20,615
Noninterest income
Service charges and fees 2,730 3,117 8,588 9,226
Gain on sales of loans 1,106 426 2,223 1,021
Gain on investment securities -- -- 35 --
Other noninterest income 114 46 219 195
Total noninterest income 3,950 3,589 11,065 10,442
Noninterest expense
Salaries and employee benefits 7,362 7,734 21,963 22,223
Occupancy 2,729 2,694 7,909 8,201
FDIC and other insurance 539 824 2,021 3,004
Other real estate, net 1,267 1,445 3,698 4,483
General and administrative 2,694 4,996 10,078 10,387
Total noninterest expense 14,591 17,693 45,669 48,298
Income (loss) before taxes 9,767 (14,705) 24,652 (17,241)
Taxes on income 3,880 (5,180) 9,437 (7,207)
Net income (loss) $ 5,887 $ (9,525) $ 15,215 $ (10,034)
Net income (loss) available to common shareholders $ 4,344 $ (10,589) $ 11,474 $ (13,208)
Basic earnings per common share $ 0.22 $ (0.54) $ 0.59 $ (0.68)
Diluted earnings per common share 0.22 (0.54) 0.59 (0.68)
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 September 30,
2012 2011
Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets
Noncovered loans $ 1,493,215 $ 20,013 5.33% $ 2,127,291 $ 27,160 5.07%
Covered loans 29,600 483 6.49 44,018 713 6.43
Investment securities 364,695 1,934 2.11 269,143 1,779 2.62
Other interest-earning assets 181,192 186 0.41 87,649 131 0.59
Total interest-earning assets 2,068,702 22,616 4.35 2,528,101 29,783 4.67
Other assets 140,928 121,115
Total assets $ 2,209,630 $ 2,649,216
Liabilities and Shareholders' Equity
Interest-bearing demand deposits $ 112,912 $ 49 0.17% $ 111,805 $ 102 0.36%
Money market accounts 376,316 230 0.24 480,817 507 0.42
Savings accounts 36,479 13 0.14 30,467 11 0.14
Time deposits 813,906 1,959 0.96 1,065,019 3,191 1.19
Total interest-bearing deposits 1,339,613 2,251 0.67 1,688,108 3,811 0.93
Other borrowings 64,880 225 1.38 89,964 469 2.07
Subordinated debentures 81,963 1,458 7.12 81,963 1,478 7.21
Total interest-bearing liabilities 1,486,456 3,934 1.05 1,860,035 5,758 1.23
Noninterest-bearing demand deposits 398,979 375,465
Other liabilities 47,188 32,447
Shareholders' equity 277,007 381,269
Total liabilities and shareholders' equity $ 2,209,630 $ 2,649,216
Net interest income and spread $ 18,682 3.30% $ 24,025 3.44%
Net interest margin (1) 3.59% 3.77%
Average interest-earning assets to average interest-bearing liabilities 139.17% 135.92%
(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 nine months ended September 30,
2012 2011
Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets
Noncovered loans $ 1,574,095 $ 63,861 5.42% $ 2,234,219 $ 85,366 5.11%
Covered loans 32,490 1,720 7.07 47,619 2,524 7.09
Investment securities 339,776 6,019 2.37 264,004 5,389 2.73
Other interest-earning assets 188,264 563 0.40 87,729 401 0.61
Total interest-earning assets 2,134,625 72,163 4.52 2,633,571 93,680 4.76
Other assets 149,193 102,042
Total assets $ 2,283,818 $ 2,735,613
Liabilities and Shareholders' Equity
Interest-bearing demand deposits $ 118,036 $ 178 0.20% $ 112,394 $ 329 0.39%
Money market accounts 375,634 750 0.27 487,522 1,766 0.48
Savings accounts 35,237 39 0.15 29,131 37 0.17
Time deposits 875,012 6,722 1.03 1,158,922 11,343 1.31
Total interest-bearing deposits 1,403,919 7,689 0.73 1,787,969 13,475 1.05
Other borrowings 59,846 671 1.50 89,384 1,460 2.18
Subordinated debentures 81,963 4,525 7.36 81,963 4,314 7.02
Total interest-bearing liabilities 1,545,728 12,885 1.11 1,959,316 19,249 1.31
Noninterest-bearing demand deposits 388,370 370,145
Other liabilities 48,851 23,510
Shareholders' equity 300,869 382,642
Total liabilities and shareholders' equity $ 2,283,818 $ 2,735,613
Net interest income and spread $ 59,278 3.41% $ 74,431 3.45%
Net interest margin (1) 3.71% 3.78%
Average interest-earning assets to average interest-bearing liabilities 138.10% 134.41%
(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)
2012 2011
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
LOAN COMPOSITION
Noncovered:
Real estate mortgage:
Commercial $ 898,453 $ 931,239 $ 996,486 $ 1,028,561 $ 1,169,010 $ 1,262,753 $ 1,302,164
One-to-four family residential 74,081 74,390 76,287 80,375 85,272 87,407 87,286
Real estate construction
Commercial 206,342 211,098 222,678 227,098 348,053 372,576 403,635
One-to-four family residential 3,438 4,184 3,814 4,987 25,527 26,400 26,758
Commercial 244,018 263,085 273,324 346,266 367,241 404,229 416,392
Installment and consumer:
Guaranteed student loans 4,872 5,153 5,276 5,396 5,547 5,600 5,700
Other 32,710 33,555 31,766 33,190 32,946 34,335 36,493
Total noncovered loans, including held for sale 1,463,914 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428
Less allowance for loan losses (43,607) (43,807) (45,023) (44,233) (64,698) (54,575) (61,285)
Total noncovered loans, net $ 1,420,307 $ 1,478,897 $ 1,564,608 $ 1,681,640 $ 1,968,898 $ 2,138,725 $ 2,217,143
Covered:
Real estate mortgage:
Commercial $ 20,664 $ 21,472 $ 22,607 $ 23,686 $ 23,201 $ 26,976 $ 28,929
One-to-four family residential 5,059 5,432 5,766 7,072 7,378 8,113 8,192
Real estate construction
Commercial 419 1,627 2,344 3,746 5,987 6,001 6,144
One-to-four family residential -- -- -- -- -- 172 281
Commercial 1,937 2,033 2,401 2,841 4,286 4,461 5,021
Installment and consumer: 118 148 196 270 357 430 550
Total covered loans $ 28,197 30,712 33,314 37,615 41,209 46,153 49,117
Less allowance for loan losses (138) (91) (60) (451) -- -- --
Total covered loans, net $ 28,059 $ 30,621 $ 33,254 $ 37,164 $ 41,209 $ 46,153 $ 49,117
LOANS BY SEGMENT
Oklahoma banking $ 564,734 $ 597,506 $ 642,700 $ 688,592 $ 770,306 $ 834,189 $ 838,006
Texas banking 554,367 596,262 636,540 665,010 845,485 911,134 953,123
Kansas banking 202,262 198,404 202,050 238,468 252,302 260,431 272,685
Out of market 135,999 137,248 122,890 132,723 166,810 196,495 226,383
Subtotal 1,457,362 1,529,420 1,604,180 1,724,793 2,034,903 2,202,249 2,290,197
Secondary market 34,749 23,996 38,765 38,695 39,902 37,204 37,348
Total loans $ 1,492,111 $ 1,553,416 $ 1,642,945 $ 1,763,488 $ 2,074,805 $ 2,239,453 $ 2,327,545
NONPERFORMING LOANS BY TYPE
Construction & development $ 3,436 $ 3,608 $ 3,768 $ 3,877 $ 68,554 $ 73,487 $ 68,183
Commercial real estate 20,576 4,932 6,821 4,667 56,234 60,857 47,986
Commercial 1,791 10,878 2,209 3,374 6,080 15,224 16,633
One-to-four family residential 949 1,125 1,508 1,491 1,706 1,457 2,634
Consumer 131 176 118 140 152 153 27
Total nonperforming loans - noncovered $ 26,883 $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463
NONPERFORMING LOANS BY SEGMENT
Oklahoma banking $ 5,198 $ 2,305 $ 2,864 $ 3,699 $ 14,932 $ 18,870 $ 13,443
Texas banking 15,342 11,526 2,258 83 95,191 91,449 87,122
Kansas banking 5,681 6,214 8,617 9,070 7,976 9,725 7,924
Out of market 662 674 685 697 14,627 31,134 26,974
Total nonperforming loans - noncovered $ 26,883 $ 20,719 $ 14,424 $ 13,549 $ 132,726 $ 151,178 $ 135,463
OTHER REAL ESTATE BY TYPE
Construction & development $ 445 $ 2,585 $ 3,542 $ 3,542 $ 38,927 $ 12,588 $ 6,304
Commercial real estate 14,130 14,129 14,854 15,464 24,364 16,300 23,890
One-to-four family residential 108 549 933 838 7,494 10,068 10,873
Total other real estate - noncovered $ 14,683 $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067
OTHER REAL ESTATE BY SEGMENT
Oklahoma banking $ 6,178 $ 6,178 $ 6,273 $ 6,178 $ 8,709 $ 2,613 $ 4,616
Texas banking 7,227 9,162 9,846 9,846 35,270 17,398 18,652
Kansas banking 1,278 1,923 3,210 3,210 12,390 14,539 12,848
Out of market -- -- -- 610 14,416 4,406 4,951
Total other real estate - noncovered $ 14,683 $ 17,263 $ 19,329 $ 19,844 $ 70,785 $ 38,956 $ 41,067
POTENTIAL PROBLEM LOANS BY TYPE
Construction & development $ 22,565 $ 25,563 $ 33,907 $ 43,607 $ 75,867 $ 111,032 $ 111,204
Commercial real estate 53,725 71,537 67,654 55,873 162,692 140,079 85,833
Commercial 9,305 12,753 23,506 32,477 37,027 38,850 19,940
One-to-four family residential 1,157 1,230 1,253 1,082 1,108 1,210 429
Total potential problem loans - noncovered $ 86,752 $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406
POTENTIAL PROBLEM LOANS BY SEGMENT
Oklahoma banking $ 27,415 $ 37,320 $ 32,761 $ 27,481 $ 54,310 $ 42,565 $ 30,678
Texas banking 43,472 58,021 78,961 83,035 163,973 183,486 114,506
Kansas banking 3,286 3,118 1,893 836 14,530 11,289 19,472
Out of market 12,579 12,624 12,705 21,687 43,881 53,831 52,750
Total potential problem loans - noncovered $ 86,752 $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406
Continued
SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA Continued
(Dollars in thousands, except per share)��
2012 2011
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
OUT OF MARKET LOANS
Net balance out of market loans:
Arizona $ 41,255 $ 39,449 $ 34,749 $ 26,372 $ 35,978 $ 49,977 $ 57,657
Iowa 22,958 23,022 23,130 26,494 26,626 26,695 26,759
Ohio 11,182 11,502 12,650 12,741 9,367 9,568 9,963
California 9,684 9,922 10,252 10,530 10,737 9,814 9,984
Kentucky 7,517 9,455 517 488 490 492 494
South Carolina 7,283 7,320 -- -- -- -- --
Tennessee 6,232 6,310 6,368 6,427 6,484 6,550 6,606
Florida 6,204 6,240 6,269 6,421 6,374 10,582 7,600
Louisiana 4,968 4,974 4,931 5,336 5,644 5,963 8,018
New Mexico 3,696 3,714 3,715 15,215 21,019 21,092 28,226
Other 15,020 15,340 20,309 22,699 44,091 55,762 71,076
Total out of market loans $ 135,999 $ 137,248 $ 122,890 $ 132,723 $ 166,810 $ 196,495 $ 226,383
Nonperforming out of market loans:
Florida $ 281 $ 287 $ 293 $ 299 $ 305 $ 1,479 $ 1,479
Arizona 250 256 261 267 8,441 16,745 10,316
Colorado 131 131 131 131 746 4,909 880
New Mexico -- -- -- -- 5,135 5,135 11,827
Alabama -- -- -- -- -- 157 172
Other -- -- -- -- -- 2,709 2,300
Total nonperforming out of market loans $ 662 $ 674 $ 685 $ 697 $ 14,627 $ 31,134 $ 26,974
Potential problem out of market loans:
Iowa $ 11,941 $ 11,970 $ 12,035 $ -- $ -- $ -- $ --
New Mexico -- -- -- 11,542 11,589 11,635 --
Arizona -- -- -- 9,463 10,287 14,865 25,242
California 548 559 570 578 593 9,423 9,575
Florida 90 95 100 104 108 116 --
Colorado -- -- -- -- 17,034 13,500 17,933
Alabama -- -- -- -- 4,270 4,292 --
Total potential problem out of market loans $ 12,579 $ 12,624 $ 12,705 $ 21,687 $ 43,881 $ 53,831 $ 52,750
ALLOWANCE ACTIVITY
Balance, beginning of period $ 43,898 $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285 $ 65,229
Charge offs 2,653 2,229 1,936 99,604 16,067 27,562 13,392
Recoveries 4,226 1,012 619 1,305 1,564 712 398
Net charge offs (recoveries) (1,573) 1,217 1,317 98,299 14,503 26,850 12,994
Provision for loan losses (1,726) 32 1,716 78,285 24,626 20,140 9,050
Balance, end of period $ 43,745 $ 43,898 $ 45,083 $ 44,684 $ 64,698 $ 54,575 $ 61,285
NET CHARGE OFFS BY TYPE
Construction & development $ (1,823) $ (85) $ (42) $ 41,513 $ 7,177 $ 10,847 $ 1,012
Commercial real estate 2,022 91 14 50,070 5,702 7,593 7,290
Commercial (1,894) 1,228 1,211 6,434 1,469 7,999 4,337
One-to-four family residential 20 (105) 123 1 55 165 58
Consumer 102 88 11 281 100 246 297
Total net charge offs (recoveries) by type $ (1,573) $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994
NET CHARGE OFFS BY SEGMENT
Oklahoma banking $ 7 $ (204) $ 1,070 $ 13,210 $ 1,058 $ 1,442 $ 1,593
Texas banking 857 1,139 229 64,370 7,386 9,163 4,502
Kansas banking (2,435) 324 166 8,872 361 1,791 372
Out of market (2) (42) (148) 11,847 5,698 14,454 6,527
Total net charge offs (recoveries) by segment $ (1,573) $ 1,217 $ 1,317 $ 98,299 $ 14,503 $ 26,850 $ 12,994
SOUTHWEST BANCORP, INC. Table 7
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands, except per share)
2012 2011
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
NET INCOME (LOSS) BY SEGMENT
Oklahoma banking $ 2,873 $ 4,497 $ 3,158 $ (5,586) $ 7 $ 5,290 $ 3,435
Texas banking 2,622 1,435 3,161 (35,435) (6,455) 1,575 1,079
Kansas banking 1,550 (424) 1,239 (7,533) (612) 971 131
Out of market (169) 693 (570) (7,857) (1,947) (9,039) (924)
Subtotal 6,876 6,201 6,988 (56,411) (9,007) (1,203) 3,721
Secondary market 330 124 286 144 90 127 (13)
Other operations (1,319) (2,208) (2,063) (1,994) (608) (1,894) (1,247)
Net income (loss) $ 5,887 $ 4,117 $ 5,211 $ (58,261) $ (9,525) $ (2,970) $ 2,461
PER SHARE DATA
Basic earnings per common share $ 0.22 $ 0.15 $ 0.21 $ (3.05) $ (0.54) $ (0.21) $ 0.07
Diluted earnings per common share 0.22 0.15 0.21 (3.05) (0.54) (0.21) 0.07
Book value per common share 12.88 12.64 12.50 12.28 15.37 15.89 16.02
Tangible book value per share* 12.53 12.29 12.15 11.93 15.02 15.54 15.67
COMMON STOCK
Shares issued and outstanding 19,448,312 19,447,202 19,445,913 19,444,213 19,441,577 19,439,167 19,438,290
OTHER FINANCIAL DATA
Investment securities $ 381,499 $ 340,378 $ 333,860 $ 275,352 $ 269,599 $ 268,153 $ 258,436
Loans held for sale 34,749 23,996 38,765 38,695 39,902 37,204 37,348
Noncovered portfolio loans 1,429,165 1,498,708 1,570,866 1,687,178 1,993,694 2,156,096 2,241,080
Total noncovered loans 1,463,914 1,522,704 1,609,631 1,725,873 2,033,596 2,193,300 2,278,428
Covered portfolio loans 28,197 30,712 33,314 37,615 41,209 46,153 49,117
Total assets 2,156,750 2,269,720 2,273,861 2,382,873 2,572,492 2,660,495 2,779,028
Total deposits 1,743,673 1,788,379 1,806,780 1,921,382 2,022,253 2,094,236 2,218,571
Other borrowings 66,694 68,477 55,139 56,479 86,583 96,682 85,332
Subordinated debentures 81,963 81,963 81,963 81,963 81,963 81,963 81,963
Total shareholders' equity 250,418 314,600 311,643 307,186 367,024 376,930 379,350
Mortgage servicing portfolio 329,184 305,465 301,378 295,492 285,886 283,083 281,271
INTANGIBLE ASSET DATA
Goodwill $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811
Core deposit intangible 2,664 2,785 2,906 3,030 3,155 3,285 3,420
Mortgage servicing rights 2,122 1,975 1,952 1,825 1,808 1,781 1,718
Nonmortgage servicing rights -- -- -- 2 3 3 3
Total intangible assets $ 11,597 $ 11,571 $ 11,669 $ 11,668 $ 11,777 $ 11,880 $ 11,952
Intangible amortization expense $ 283 $ 282 $ 296 $ 252 $ 226 $ 222 $ 361
DEPOSIT COMPOSITION
Non-interest bearing demand $ 429,407 $ 421,083 $ 395,141 $ 400,985 $ 388,365 $ 389,027 $ 369,013
Interest-bearing demand 113,677 119,929 119,759 105,905 98,270 124,346 112,731
Money market accounts 385,296 361,839 349,419 423,181 461,546 465,269 486,770
Savings accounts 36,461 35,610 34,679 33,406 31,319 29,586 28,440
Time deposits of $100,000 or more 389,969 431,317 464,876 487,907 551,914 570,116 669,817
Other time deposits 388,863 418,601 442,906 469,998 490,839 515,892 551,800
Total deposits** $ 1,743,673 $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571
OFFICES AND EMPLOYEES
FTE Employees 429 430 435 435 437 437 424
Branches 23 23 23 23 23 23 23
Loan production offices 2 2 2 2 2 2 2
Assets per employee $ 5,027 $ 5,278 $ 5,227 $ 5,478 $ 5,887 $ 6,088 $ 6,554
____________________
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $ 1,743,673 $ 1,788,379 $ 1,806,780 $ 1,921,382 $ 2,022,253 $ 2,094,236 $ 2,218,571
Less:
Brokered time deposits 10,197 12,238 13,307 14,974 46,838 52,407 122,124
Other brokered deposits 4,421 4,420 6,529 78,236 105,483 105,392 112,033
Non-brokered deposits $ 1,729,055 $ 1,771,721 $ 1,786,944 $ 1,828,172 $ 1,869,932 $ 1,936,437 $ 1,984,414
Plus:
Sweep repurchase agreements 41,694 43,477 30,139 31,482 40,305 30,636 27,214
Core funding $ 1,770,749 $ 1,815,198 $ 1,817,083 $ 1,859,654 $ 1,910,237 $ 1,967,073 $ 2,011,628
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)
2012 2011
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
PERFORMANCE RATIOS
Return on average assets (annualized) 1.07% 0.72% 0.89% (8.96)% (1.43)% (0.43)% 0.35%
Return on average common equity (annualized) 7.03 4.92 6.84 (79.48) (13.42) (5.11) 1.81
Return on average tangible common equity (annualized)* 7.23 5.06 7.03 (81.35) (13.72) (5.22) 1.85
Net interest margin (annualized) 3.59 3.71 3.82 3.62 3.77 3.79 3.78
Effective tax rate 39.73 37.12 37.50 38.49 35.23 54.53 38.40
Efficiency ratio 64.47 71.82 58.73 164.47 64.07 52.40 54.50
NONPERFORMING ASSETS
Noncovered:
Nonaccrual loans $ 26,493 $ 20,474 $ 14,324 $ 13,506 $ 132,268 $ 151,135 $ 134,934
90 days past due and accruing 390 245 100 43 458 43 529
Total nonperforming loans 26,883 20,719 14,424 13,549 132,726 151,178 135,463
Other real estate 14,683 17,263 19,329 19,844 70,785 38,956 41,067
Total nonperforming assets $ 41,566 $ 37,982 $ 33,753 $ 33,393 $ 203,511 $ 190,134 $ 176,530
Performing restructured $ 281 $ 328 $ 1,700 $ 1,017 $ 1,026 $ 3,191 $ 2,166
Potential problem loans $ 86,752 $ 111,083 $ 126,320 $ 133,039 $ 276,694 $ 291,171 $ 217,406
Covered:
Nonaccrual loans $ 4,809 $ 6,067 $ 7,015 $ 7,128 $ 7,065 $ 9,800 $ 9,809
90 days past due and accruing 353 -- -- -- 610 -- --
Total nonperforming loans 5,162 6,067 7,015 7,128 7,675 9,800 9,809
Other real estate 4,142 3,825 4,694 4,529 5,350 3,806 4,016
Total nonperforming assets $ 9,304 $ 9,892 $ 11,709 $ 11,657 $ 13,025 $ 13,606 $ 13,825
Performing restructured $ 2,548 $ 1,701 $ -- $ -- $ -- $ -- $ --
Potential problem loans $ 1,621 $ 1,573 $ 553 $ 912 $ 2,015 $ 2,731 $ 3,444
ASSET QUALITY RATIOS
Net loan charge-offs to average portfolio loans (annualized) (0.42)% 0.31% 0.32% 19.78% 2.70% 4.76% 2.25%
Noncovered:
Nonperforming assets to portfolio loans and other real estate 2.88% 2.51% 2.12% 1.96% 9.86% 8.66% 7.74%
Nonperforming loans to portfolio loans 1.88 1.38 0.92 0.80 6.66 7.01 6.04
Allowance for loan losses to portfolio loans 3.05 2.92 2.87 2.62 3.25 2.53 2.73
Allowance for loan losses to nonperforming loans 162.21 211.43 312.14 326.47 48.75 36.10 45.24
Covered:
Nonperforming assets to portfolio loans and other real estate 28.77% 28.64% 30.81% 27.66% 27.98% 27.23% 26.02%
Nonperforming loans to portfolio loans 18.31 19.75 21.06 18.95 18.62 21.23 19.97
Allowance for loan losses to portfolio loans 0.49 0.30 0.18 1.20 -- -- --
Allowance for loan losses to nonperforming loans 2.67 1.50 0.86 6.33 -- -- --
CAPITAL RATIOS
Average total shareholders' equity to average assets 12.54% 13.78% 13.19% 14.14% 14.39% 13.98% 13.57%
Leverage ratio 14.49 16.84 16.20 14.50 16.47 16.25 15.95
Tier 1 capital to risk-weighted assets 19.36 22.24 21.21 19.51 19.54 18.93 18.49
Total capital to risk-weighted assets 20.64 23.52 22.49 20.78 20.81 20.20 19.77
Tangible common equity to tangible assets*** 11.33 10.56 10.42 9.76 11.38 11.38 10.99
REGULATORY CAPITAL DATA
Tier I capital $ 317,664 $ 382,262 $ 378,949 $ 374,552 $ 433,628 $ 444,106 $ 447,803
Total capital 338,738 404,251 401,808 398,945 461,929 473,950 478,713
Total risk adjusted assets 1,641,123 1,719,057 1,786,282 1,920,075 2,219,271 2,346,596 2,421,752
Average total assets 2,192,579 2,269,639 2,339,784 2,562,094 2,633,000 2,733,561 2,807,518
____________________
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $ 250,418 $ 314,600 $ 311,643 $ 307,186 $ 367,024 $ 376,930 $ 379,350
Less:
Goodwill 6,811 6,811 6,811 6,811 6,811 6,811 6,811
Preferred stock -- 68,837 68,644 68,455 68,268 68,084 67,902
Tangible common equity $ 243,607 $ 238,952 $ 236,188 $ 231,920 $ 291,945 $ 302,035 $ 304,637
Total assets $ 2,156,750 $ 2,269,720 $ 2,273,861 $ 2,382,873 $ 2,572,492 $ 2,660,495 $ 2,779,028
Less goodwill 6,811 6,811 6,811 6,811 6,811 6,811 6,811
Tangible assets $ 2,149,939 $ 2,262,909 $ 2,267,050 $ 2,376,062 $ 2,565,681 $ 2,653,684 $ 2,772,217
Tangible common equity to tangible assets 11.33% 10.56% 10.42% 9.76% 11.38% 11.38% 10.99%
Balance sheet amounts and ratios are as of period end unless otherwise noted.
CONTACT: Mark W. Funke President & CEO Priscilla J. Barnes Senior EVP & COO (405) 372-2230

Source:Southwest Bancorp, Inc.