Southwest Bancorp Inc. (OKSB, Financial) filed Quarterly Report for the period ended 2010-09-30.
Southwest Bancorp Inc. has a market cap of $202.1 million; its shares were traded at around $9.81 with a P/E ratio of 14.1 and P/S ratio of 1.2.
Southwests investment security portfolio decreased $12.2 million, or 5%, from $263.4 million at December 31, 2009, to $251.2 million at September 30, 2010. The decrease is primarily the result of a $25.3 million, or 33%, decrease in U.S. government and agency securities, a $7.1 million, or 46%, decrease in Federal Home Loan Bank and Federal Reserve Bank stocks, and a $1.6 million, or 45%, decrease in other investments, offset in part by a $19.3 million, or 12%, increase in residential mortgage-backed securities and a $2.3 million, or 30%, increase in tax-exempt securities during the first nine months of 2010.
At September 30, 2010, the allowance for loan losses was $72.4 million, an increase of $10.0 million, or 16%, from the allowance for loan losses at December 31, 2009. Changes in the amount of the allowance resulted from the application of the methodology, which is designed to estimate inherent losses on total portfolio loans, including nonperforming loans. At September 30, 2010, the allowance on the $135.2 million in noncovered nonaccrual loans was $21.3 million (15.7%), compared with an allowance on $105.9 million in noncovered nonaccrual loans at December 31, 2009 of $13.3 million (12.6%), creating an increase in the allowance of $8.0 million, or 60%. At September 30, 2010, the allowance for other noncovered loans and noncovered performing restructured loans was $51.1 million (2.2%), compared to $49.1 million (2.0%) at December 31, 2009, creating an increase in the allowance of $2.0 million, or 4%. The increase in the allowance related to these other noncovered loans mainly resulted from consideration of certain trends and qualitative factors. These included changes in adjusted loss rates made due to changes in historical net loss ratios, managements assessment of economic risk (particularly with respect to commercial and commercial real estate loans), and asset quality trends, including the level of potential problem loans, and loan concentrations in commercial real estate mortgage and construction loans, which together comprised approximately 75% of our noncovered portfolio loans at September 30, 2010. The total allowance was 3.00% and 2.46% of total noncovered portfolio loans at September 30, 2010 and December 31, 2009, respectively. Management believes the amount of the allowance is appropriate. Covered portfolio loans were $60.6 million as of
The amount of the loan loss provision for a period is based solely upon the amount needed to cause the allowance to reach the level deemed appropriate, after the effects of net charge-offs for the period. Net charge-offs for the first nine months of 2010 were $18.3 million, an increase of $7.8 million, or 74%, over the $10.5 million recorded for the first nine months of 2009. The provision for loan losses for the first nine months of 2010 was $28.3 million, representing a decrease of $0.2 million, or less than 1%, from the $28.5 million recorded for the first nine months of 2009.
Shareholders equity increased $66.8 million, or 22%, due primarily to the $54.4 million generated from the sale of common stock through a common stock offering, the employee stock purchase plan, and share based compensation plans, including tax benefits realized, and earnings of $12.7 million, offset in part by preferred dividends declared totaling $2.6 million for the first nine months of 2010. Net unrealized holding gains on available for sale investment securities (net of tax) increased to $3.3 million at September 30, 2010, compared to $0.9 million at December 31, 2009.
Net income available to common shareholders for the third quarter of 2010 of $2.8 million represented an increase of $1.7 million, or 158%, from the $1.1 million earned in the third quarter of 2009. Diluted earnings per share were $0.15, compared to $0.07, a 114% increase. The increase in quarterly net income available to common shareholders was the result of a $2.6 million, or 71%, increase in noninterest income and a $1.1 million, or 4%, increase in the net interest income, offset in part by a $1.8 million, or 18%, increase in the provision for loan losses and a $0.2 million, or 19%, increase in income tax expense.
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Southwest Bancorp Inc. has a market cap of $202.1 million; its shares were traded at around $9.81 with a P/E ratio of 14.1 and P/S ratio of 1.2.
Highlight of Business Operations:
At September 30, 2010, the Texas Banking segment accounted for $1.0 billion in loans, the Oklahoma Banking segment accounted for $890.6 million in loans, the Kansas Banking segment accounted for $309.2 million in loans, and the Other States Banking segment accounted for $248.7 million in loans. Southwest offers products to the student, residential mortgage, and rural healthcare lending markets. These operations comprise the Secondary Market business segment. During the first nine months of 2010, Secondary Market loans decreased $8.3 million, or 19%, to $34.9 million. Southwest engages in residential mortgage lending, but residential mortgages have not been a significant element of Southwests strategy. Please see Financial Condition: Loans below for additional information.Southwests investment security portfolio decreased $12.2 million, or 5%, from $263.4 million at December 31, 2009, to $251.2 million at September 30, 2010. The decrease is primarily the result of a $25.3 million, or 33%, decrease in U.S. government and agency securities, a $7.1 million, or 46%, decrease in Federal Home Loan Bank and Federal Reserve Bank stocks, and a $1.6 million, or 45%, decrease in other investments, offset in part by a $19.3 million, or 12%, increase in residential mortgage-backed securities and a $2.3 million, or 30%, increase in tax-exempt securities during the first nine months of 2010.
At September 30, 2010, the allowance for loan losses was $72.4 million, an increase of $10.0 million, or 16%, from the allowance for loan losses at December 31, 2009. Changes in the amount of the allowance resulted from the application of the methodology, which is designed to estimate inherent losses on total portfolio loans, including nonperforming loans. At September 30, 2010, the allowance on the $135.2 million in noncovered nonaccrual loans was $21.3 million (15.7%), compared with an allowance on $105.9 million in noncovered nonaccrual loans at December 31, 2009 of $13.3 million (12.6%), creating an increase in the allowance of $8.0 million, or 60%. At September 30, 2010, the allowance for other noncovered loans and noncovered performing restructured loans was $51.1 million (2.2%), compared to $49.1 million (2.0%) at December 31, 2009, creating an increase in the allowance of $2.0 million, or 4%. The increase in the allowance related to these other noncovered loans mainly resulted from consideration of certain trends and qualitative factors. These included changes in adjusted loss rates made due to changes in historical net loss ratios, managements assessment of economic risk (particularly with respect to commercial and commercial real estate loans), and asset quality trends, including the level of potential problem loans, and loan concentrations in commercial real estate mortgage and construction loans, which together comprised approximately 75% of our noncovered portfolio loans at September 30, 2010. The total allowance was 3.00% and 2.46% of total noncovered portfolio loans at September 30, 2010 and December 31, 2009, respectively. Management believes the amount of the allowance is appropriate. Covered portfolio loans were $60.6 million as of
The amount of the loan loss provision for a period is based solely upon the amount needed to cause the allowance to reach the level deemed appropriate, after the effects of net charge-offs for the period. Net charge-offs for the first nine months of 2010 were $18.3 million, an increase of $7.8 million, or 74%, over the $10.5 million recorded for the first nine months of 2009. The provision for loan losses for the first nine months of 2010 was $28.3 million, representing a decrease of $0.2 million, or less than 1%, from the $28.5 million recorded for the first nine months of 2009.
Shareholders equity increased $66.8 million, or 22%, due primarily to the $54.4 million generated from the sale of common stock through a common stock offering, the employee stock purchase plan, and share based compensation plans, including tax benefits realized, and earnings of $12.7 million, offset in part by preferred dividends declared totaling $2.6 million for the first nine months of 2010. Net unrealized holding gains on available for sale investment securities (net of tax) increased to $3.3 million at September 30, 2010, compared to $0.9 million at December 31, 2009.
Net income available to common shareholders for the third quarter of 2010 of $2.8 million represented an increase of $1.7 million, or 158%, from the $1.1 million earned in the third quarter of 2009. Diluted earnings per share were $0.15, compared to $0.07, a 114% increase. The increase in quarterly net income available to common shareholders was the result of a $2.6 million, or 71%, increase in noninterest income and a $1.1 million, or 4%, increase in the net interest income, offset in part by a $1.8 million, or 18%, increase in the provision for loan losses and a $0.2 million, or 19%, increase in income tax expense.
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