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Southwest Bancorp, Inc. Reports Fourth Quarter 2014 Results and Announces Increased Quarterly Dividend

Globe Newswire

STILLWATER, Okla., Jan. 20, 2015 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB), ( "Southwest"), today reported net income for the fourth quarter of 2014 of $5.9 million, or $0.30 per diluted share, compared to $5.3 million, or $0.27 per diluted share, for the third quarter of 2014. Net income for the year ended December 31, 2014 totaled $21.0 million, or $1.07 per diluted share, compared to $17.4 million, or $0.89 per diluted share, for the year ended December 31, 2013.

Southwest announced that its board of directors has approved an increase in the quarterly cash dividend from $0.04 per share to $0.06 per share payable February 13, 2015 to shareholders of record as of January 30, 2015.

Mark Funke, President and CEO, stated, "The quarterly and annual results reflect continued improvement in asset quality and our focus on growing loans and customer relationships. Our efforts produced several highlights.

  • Loan growth in the fourth quarter was $32.6 million and $129.1 million or 10% for the year.
  • The quarterly net interest margin was 3.47% (normalized) for December 31, 2014 compared to 3.44% for September 30, 2014 and 3.42% for December 31, 2013.
  • Asset quality improved as nonperforming loans decreased $5.6 million, or 37%, and potential problem loans decreased $30.3 million, or 47%, during the fourth quarter. The improved asset quality resulted in a negative provision of $2.4 million for the quarter. "

"Our positive financial results for 2014 reflect the good work of our associates at Bank SNB and a growing customer base. Additionally, our earnings reflect several positive one-time events, including the divestiture of three branches during the second quarter resulting in $4.4 million in pre-tax income. We will continue to focus our company on growing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing our expenses."

On November 19, 2014, Southwest's banking subsidiary, Bank SNB, welcomed five established bankers from the Fort Worth, Texas area, and announced the filing of an application for a full-service branch in Fort Worth, Texas, which was approved and the branch formally opened on January 9, 2015.

In the third quarter, Southwest's board of directors authorized the repurchase of up to 5.0% or 990,000 shares, of its outstanding common stock, par value $1.00 per share. The share repurchases are expected to be made primarily on the open market from time to time until August 14, 2015. Repurchases under the program are available at the discretion of management based upon market, business, legal, and other factors. During the third and fourth quarters, Southwest repurchased 617,818 shares for a total of $10.3 million in treasury stock.

Financial Overview

Condition: At December 31, 2014, total assets of $1.9 billion increased $41.1 million from September 30, 2014. Total loans of $1.4 billion increased $32.6 million from September 30, 2014 and total investment securities of $365.6 million decreased $5.0 million compared to September 30, 2014. Cash and cash equivalents at December 31, 2014 were $140.9 million, up $10.8 million from September 30, 2014.

At December 31, 2014, the allowance for loan losses was $28.5 million, compared to $36.7 million at December 31, 2013 and $30.9 million at September 30, 2014. The allowance for loan losses to portfolio loans was 2.03% as of December 31, 2014, compared to 2.89% as of December 31, 2013 and 2.27% as of September 30, 2014. The allowance for loan losses to nonperforming loans was 302.26% as of December 31, 2014, compared to 184.5% as of December 31, 2013 and 205.29% as of September 30, 2014.

Nonperforming loans were $9.4 million at December 31, 2014, a decrease of $10.5 million from December 31, 2013, and a decrease of $5.6 million from September 30, 2014. Other real estate at December 31, 2014 was $3.1 million, an increase of $0.4 million from December 31, 2013, but a decrease of $0.4 million when compared to September 30, 2014. Nonperforming assets were $12.5 million, or 0.89% of portfolio loans and other real estate, as of December 31, 2014, compared to $22.5 million, or 1.77% of portfolio loans and other real estate, as of December 31, 2013, and $18.5 million, or 1.36% of portfolio loans and other real estate, as of September 30, 2014.

Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 94% and 92% of total funding as of December 31, 2014 and September 30, 2014, respectively. Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 6% and 8% of total funding at December 31, 2014 and September 30, 2014, respectively. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.

The capital ratios of Southwest and Bank SNB as of December 31, 2014 exceeded the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $334.3 million, for a total risk-based capital ratio of 20.96%, and Tier 1 capital was $314.2 million, for a Tier 1 risk-based capital ratio of 19.70%. Bank SNB had total regulatory capital of $298.2 million, for a total risk-based capital ratio of 18.81% and Tier 1 capital of $278.2 million, for a Tier 1 risk-based capital ratio of 17.55%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Fourth Quarter Results:

Summary: For the fourth quarter of 2014, net income was $5.9 million, compared to $6.8 million for the fourth quarter of 2013 and $5.3 million for the third quarter of 2014. 

The $0.9 million decrease in our net income compared to the fourth quarter of 2013 was primarily the result of a $4.1 million decrease in the negative provision for loan losses, offset in part by a $1.5 million increase in noninterest income, a $1.0 million decrease in noninterest expense, and a $0.8 million increase in net interest income. 

The $0.6 million increase in net income compared to the third quarter of 2014 was primarily due to the $0.8 million increase in net interest income and the $1.5 million increase in noninterest income, due to the current quarter's gain recognized on the divestiture of a private equity investment and interest rate swap income recognized in the quarter. These increases were offset in part by a $0.5 million decrease in the negative provision for loan losses and a $0.7 million increase in noninterest expense, primarily driven by increased other real estate expenses and a write-down of certain leasehold improvements.

Net Interest Income: Net interest income totaled $16.6 million for both the fourth quarter of 2014 and 2013, and $15.8 million for the third quarter of 2014, an increase of $0.8 million, or 5%. Net interest margin was 3.52% for the fourth quarter of 2014, compared to 3.42% for the fourth quarter of 2013 and 3.44% for the third quarter of 2014. Included in interest income for the fourth quarter of 2014 was $0.2 million due to interest recovery on nonaccrual loans. The net effect of this additional income on the net interest margin was a 5 basis point increase in the fourth quarter of 2014. Loans (including loans held for sale) increased $32.6 million, or 2%, when compared to September 30, 2014.

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 negative provision (or credit) of $2.4 million for the fourth quarter of 2014, compared to a negative provision of $6.5 million for the fourth quarter of 2013, and a negative provision of $2.9 million for the third quarter of 2014. During the fourth quarter of 2014, net charge-offs totaled $0.1 million, or 0.02% (annualized) of average portfolio loans, compared to net recoveries of $3.1 million, or (0.96)% (annualized) of average portfolio loans for the fourth quarter of 2013 and net recoveries of $0.7 million, or (0.21)% (annualized) of average portfolio loans for the third quarter of 2014. 

Noninterest Income: Noninterest income totaled $4.6 million for the fourth quarter of 2014, compared to $3.1 million for both the fourth quarter of 2013 and the third quarter of 2014. 

The $1.5 million increase from the fourth quarter of 2013 is primarily the result of a $1.1 million gain on sale of a private equity investment during the fourth quarter of 2014 and a $0.4 million increase in other noninterest income, which is primarily due to swap fee income.

The $1.5 million increase from the third quarter of 2014 is primarily the result of a $1.1 million gain on sale of a private equity investment during the fourth quarter of 2014, a $0.2 million increase in other noninterest income primarily due to 2014 swap fee income, and a $0.1 million increase in gain on sale of mortgage loans.

Noninterest Expense: Noninterest expense totaled $14.1 million for the fourth quarter of 2014, compared to $15.1 million for the fourth quarter of 2013 and $13.4 million for the third quarter of 2014. 

The $1.0 million decrease in noninterest expense from the fourth quarter of 2013 consisted of a $0.1 million decrease in other real estate expense due to a reduction of income from income producing properties compared to the prior year, a $0.6 million decrease in personnel expense, and a $0.1 million decrease in general and administrative expense, primarily due to the reduction in expense related to the 2013 charter consolidation and rebranding, offset in part by an increase in the provision for unfunded loan commitments.  

The $0.7 million increase in noninterest expense from third quarter of 2014 was due to a $0.5 million increase in other real estate expense, a $0.5 million increase in general and administrative expense primarily from increased professional fees and an increase in the provision for unfunded loan commitments, and a $0.2 million increase in occupancy expense, offset by a $0.4 million decrease in personnel expense.

Income Tax: Income tax expense totaled $3.5 million for the fourth quarter of 2014, compared to $4.3 million for the fourth quarter of 2013 and $3.2 million for the third quarter of 2014. The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2014 effective tax rate was 37.5%.

Year-to-date Results:

Summary: Net income was $21.0 million for the year ended December 31, 2014, compared to $17.4 million for the year ended December 31, 2013. The $3.6 million increase in net income from 2013 is the result of a $2.3 million increase in net interest income, primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013, a $5.3 million increase in noninterest income, primarily resulting from the pre-tax net gain on sale of community bank branches, offset in part by a $1.6 million increase in noninterest expense due to decreased gains recognized on sales of other real estate properties, offset in part by decreased write downs on other real estate properties, and a $0.6 million decrease in the negative provision for loan losses.

Net Interest Income: Net interest income totaled $65.0 million for 2014, compared to $62.7 million for 2013, an increase of $2.3 million, or 4%, primarily driven by lower interest expense on deposits and a reduction in interest expense due to the redemption of the 10.5% Trust Preferred Securities in third quarter of 2013. Year-to-date net interest margin was 3.45%, compared to 3.19% for 2013. Included in interest income for 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by the loss share agreement and $0.8 million due to interest recovery on nonaccrual loans. The net effects of these adjustments on the net interest margin was an 8 basis point increase for 2014. 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) of $6.6 million for 2014, compared to a credit of $7.2 million for 2013. Net charge-offs totaled $1.6 million, or 0.12% (annualized) of average portfolio loans for the year ended December 31, 2014, compared to $2.8 million, or 0.22% (annualized) of average portfolio loans for the year ended December 31, 2013.  

Noninterest Income: Noninterest income totaled $18.9 million for 2014, compared to $13.6 million for 2013. The increase primarily consists of the $4.4 million recognized as the pre-tax net gain on sales of the community bank branches, a $1.9 million gain on the sale of a private equity investment and the sale of a stock investment acquired in a prior year repossession, a $0.4 million increase in other noninterest income, offset in part by the $1.1 million decline in gains on sales of mortgage loans and a $0.3 million decrease in service charges and fees. 

Noninterest Expense: Noninterest expense totaled $56.9 million for 2014, compared to $55.3 million for 2013. The increase consists of a $1.7 million increase in other real estate expense, primarily from decreased gains on sales of other real estate properties, offset in part by decreased write downs on other real estate properties, a $0.2 million increase in occupancy expense, a $0.5 million decrease in FDIC and other insurance, and a $0.2 million increase in general and administrative expense, primarily the result of increased legal fees and consulting fees, offset in part by a decrease in the provision for unfunded loan commitments and the reduction in expense related to the 2013 charter consolidation and rebranding.

Income Tax: Income tax expense totaled $12.6 million for 2014, compared to $10.8 million for 2013. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 37.5% as of December 31, 2014.

Conference Call

Southwest will host a conference call to review these results on Wednesday, January 21, 2015 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN: http://dpregister.com/10058191. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest's website at www.oksb.com or http://services.choruscall.com/links/oksb150121.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 10058191. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 6, 2015.

Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation ( "Bank SNB").  Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2014, Southwest had total assets of $1.9 billion, deposits of $1.5 billion, and shareholders' equity of $270.8 million.

Southwest's area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its banking subsidiary provide credit and other 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, 2014, approximately $413.8 million, or 30%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.

Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. 

Caution About Forward-Looking Statements

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

These forward-looking statements include: 

  • Statements of Southwest's goals, intentions, and expectations;
  • Estimates of risks and of future costs and benefits;
  • Expectations regarding Southwest's future financial performance and the financial performance of its operating segments;
  • Expectations regarding regulatory actions;
  • Expectations regarding Southwest's ability to utilize tax loss benefits;
  • Expectations regarding Southwest's stock repurchase program;
  • Expectations regarding dividends;
  • Expectations regarding acquisitions and divestitures;
  • Assessments of loan quality, probable loan losses, 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, 2013. 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, 2014 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2014 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

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

The Bank SNB logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=23106

   
Financial Tables  
Unaudited Financial Highlights Table 1
Unaudited Consolidated Statements of Financial Condition Table 2
Unaudited Consolidated Statements of Operations Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly Table 4
Unaudited Average Balances, Yields, and Rates-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  2014  % Change  2013  % Change 
 Operations           
 Net interest income  $ 16,592 $ 15,837  5 % $ 16,637  (0)%
 Provision for loan losses   (2,386)  (2,897)  (18)  (6,502)  (63)
 Noninterest income   4,576  3,084  48  3,068  49
 Noninterest expense   14,115  13,358  6  15,065  (6)
 Income before taxes   9,439  8,460  12  11,142  (15)
 Taxes on income   3,540  3,172  12  4,310  (18)
 Net income   5,899  5,288  12  6,832  (14)
 Diluted earnings per share   0.30  0.27  11  0.35  (14)
 Balance Sheet           
 Total assets   1,942,034  1,900,948  2  1,981,423  (2)
 Loans held for sale   1,485  4,368  (66)  3,060  (51)
 Portfolio loans   1,398,506  1,363,020  3  1,267,843  10
 Total deposits   1,533,999  1,494,946  3  1,584,086  (3)
 Total shareholders' equity   270,786  271,966  (0)  259,187  4
 Book value per common share   14.11  13.90  2  13.13  7
 Key Ratios           
 Net interest margin  3.52% 3.44%   3.42%  
 Efficiency ratio   66.68  70.60    76.45  
 Total capital to risk-weighted assets   20.96  21.34    21.59  
 Nonperforming loans to portfolio loans   0.67  1.10    1.57  
 Shareholders' equity to total assets   13.94  14.31    13.08  
 Tangible common equity to tangible assets*   13.89  14.25    13.03  
 Return on average assets (annualized)   1.22  1.12    1.37  
 Return on average common equity (annualized)   8.62  7.69    10.59  
 Return on average tangible common equity (annualized)**   8.66  7.72    10.64  
           
   Year     
 YEAR-TO-DATE HIGHLIGHTS  2014 2013  % Change     
 Operations           
 Net interest income  $ 65,004 $ 62,650  4 %    
 Provision for loan losses   (6,624)  (7,209)  (8)    
 Noninterest income   18,931  13,643  39    
 Noninterest expense   56,912  55,311  3    
 Income before taxes   33,647  28,191  19    
 Taxes on income   12,617 10,756  17    
 Net income   21,030  17,435  21    
 Diluted earnings per share   1.07 0.89  20    
 Balance Sheet           
 Total assets   1,942,034  1,981,423  (2)    
 Loans held for sale   1,485  3,060  (51)    
 Portfolio loans   1,398,506  1,267,843  10    
 Total deposits   1,533,999  1,584,086  (3)    
 Total shareholders' equity   270,786  259,187  4    
 Book value per common share   14.11  13.13  7    
 Key Ratios           
 Net interest margin  3.45% 3.19%      
 Efficiency ratio   67.80  72.50      
 Total capital to risk-weighted assets   20.96  21.59      
 Nonperforming loans to portfolio loans   0.67  1.57      
 Shareholders' equity to total assets   13.94  13.08      
 Tangible common equity to tangible assets*   13.89  13.03      
 Return on average assets (annualized)   1.09  0.86      
 Return on average common equity (annualized)   7.82  6.90      
 Return on average tangible common equity (annualized)**   7.85  6.94      
           
 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, 
  2014 2013
Assets    
Cash and due from banks $ 19,705 $ 28,062
Interest-bearing deposits 121,231 251,777
Cash and cash equivalents 140,936 279,839
Securities held to maturity (fair values of $12,880 and $12,115, respectively) 12,362 11,720
Securities available for sale (amortized cost of $352,275 and $385,423, respectively) 353,231 382,479
Loans held for sale 1,485 3,060
Loans receivable (includes loss share of $0 and $1,812, respectively) 1,398,506 1,267,843
Less: Allowance for loan losses (28,452) (36,663)
Net loans receivable 1,370,054 1,231,180
Accrued interest receivable 4,723 5,335
Non-hedge derivative asset 787  --
Premises and equipment, net 18,588 20,833
Other real estate 3,097 2,654
Goodwill 1,214 1,214
Other intangible assets, net 3,927 4,980
Other assets 31,630 38,129
Total assets $ 1,942,034 $ 1,981,423
     
Liabilities    
Deposits:    
Noninterest-bearing demand $  496,128 $ 444,796
Interest-bearing demand  122,342  120,156
Money market accounts  461,679  439,981
Savings accounts  32,795  41,727
Time deposits of $100,000 or more  198,952  251,185
Other time deposits  222,103  286,241
Total deposits  1,533,999  1,584,086
Accrued interest payable  769  832
Non-hedge derivative liability  787  --
Other liabilities  9,920  10,293
Other borrowings  79,380  80,632
Subordinated debentures  46,393  46,393
Total liabilities   1,671,248  1,722,236
     
Shareholders' equity    
Common stock - $1 par value; 40,000,000 shares authorized;    
19,810,877 shares issued and 19,732,926 shares issued and outstanding, respectively  19,811  19,733
Additional paid-in capital  101,245  99,937
Retained earnings  160,427  142,528
Accumulated other comprehensive loss  (395)  (3,011)
Treasury stock, at cost, 617,818 and 0 shares, respectively  (10,302)  --
Total shareholders' equity  270,786  259,187
Total liabilities and shareholders' equity $ 1,942,034 $ 1,981,423
           
           
 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, 
  2014 2014 2013 2014 2013
 Interest income           
Loans  $ 16,423 $ 15,683 $ 16,499 $ 64,224 $ 66,162
Investment securities   1,506  1,534  1,747  6,318  6,655
Other interest-earning assets   287  274  332  1,250  1,097
Total interest income   18,216  17,491  18,578  71,792  73,914
           
 Interest expense           
Interest-bearing deposits   835  864  1,148  3,655  5,559
Other borrowings   225  227  225  900  892
Subordinated debentures   564  563  568  2,233  4,813
Total interest expense   1,624  1,654  1,941  6,788  11,264
           
Net interest income   16,592  15,837  16,637  65,004  62,650
           
Provision for loan losses   (2,386)  (2,897)  (6,502)  (6,624)  (7,209)
           
Net interest income after provision for loan losses   18,978  18,734  23,139  71,628  69,859
           
Noninterest income           
Service charges and fees   2,526  2,492  2,635  10,222  10,491
Gain on sale of branches, net   --  --  --  4,378  --
Gain on sales of mortgage loans   480  382  385  1,549  2,649
Gain on sale/call of investment securities, net   1,120  --  --  1,884  --
Other noninterest income   450  210  48  898  503
Total noninterest income  4,576  3,084  3,068  18,931  13,643
           
Noninterest expense           
Salaries and employee benefits   7,428  7,804  8,057  31,830  31,877
Occupancy   2,805  2,612  2,805  10,969  10,779
FDIC and other insurance   295  299  460  1,305  1,764
Other real estate, net   235  (220)  330  594  (1,098)
General and administrative   3,352  2,863  3,413  12,214  11,989
Total noninterest expense   14,115  13,358  15,065  56,912  55,311
Income before taxes   9,439  8,460  11,142  33,647  28,191
Taxes on income   3,540  3,172  4,310  12,617  10,756
Net income  $ 5,899 $ 5,288 $ 6,832 $ 21,030 $ 17,435
           
Basic earnings per common share  $ 0.30 $ 0.27 $ 0.35 $ 1.07 $ 0.89
Diluted earnings per common share   0.30  0.27  0.35  1.07  0.89
Common dividends declared per share   0.04  0.04  --  0.16  --
             
             
 SOUTHWEST BANCORP, INC.            Table 4
 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY           
 (Dollars in thousands)            
             
   For the three months ended
  December 31, 2014 September 30, 2014 December 31, 2013
  Average Average Average Average Average Average
  Balance Yield/Rate Balance Yield/Rate Balance Yield/Rate
Assets            
Loans   $ 1,369,852 4.76% $ 1,356,729 4.59%  $ 1,288,487 5.08%
Investment securities  367,978  1.62  378,924  1.61  390,160  1.78
Other interest-earning assets  132,418  0.86  88,653  1.23  253,327  0.52
Total interest-earning assets  1,870,248  3.86  1,824,306  3.80  1,931,974  3.82
Other assets  44,268    43,339    47,369  
Total assets  $ 1,914,516   $ 1,867,645   $ 1,979,343  
             
Liabilities and Shareholders' Equity            
Interest-bearing demand deposits  $ 114,035 0.11% $ 109,245 0.12% $ 111,744 0.11%
Money market accounts  466,937  0.15  437,632  0.14  426,090  0.17
Savings accounts  32,824  0.10  32,076  0.10  41,021  0.10
Time deposits  427,582  0.57  440,317  0.60  555,762  0.66
Total interest-bearing deposits  1,041,378  0.32  1,019,270  0.34  1,134,617  0.40
Other borrowings  79,932  1.12  85,423  1.05  78,933  1.13
Subordinated debentures  46,393  4.86  46,393  4.85  46,393  4.90
Total interest-bearing liabilities  1,167,703  0.55  1,151,086  0.57  1,259,943  0.61
             
Noninterest-bearing demand deposits  465,466    432,255    452,849  
Other liabilities  9,765    11,442    10,564  
Shareholders' equity  271,582    272,862    255,987  
Total liabilities and shareholders' equity $ 1,914,516   $ 1,867,645    $ 1,979,343  
             
Net interest income and spread   3.31%   3.23%   3.21%
Net interest margin (1)   3.52%   3.44%   3.42%
Average interest-earning assets to average interest-bearing liabilities 160.16%   158.49%   153.34%  
             
 (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, 
  2014 2013
  Average Average Average Average
  Balance Yield/Rate Balance Yield/Rate
Assets        
Loans  $ 1,334,323 4.81% $ 1,315,001 5.03%
Investment securities  379,924  1.66  377,460  1.76
Other interest-earning assets  170,563  0.73  272,940  0.40
Total interest-earning assets  1,884,810  3.81  1,965,401  3.76
Other assets  46,894    63,865  
Total assets $ 1,931,704    $ 2,029,266  
         
Liabilities and Shareholders' Equity        
Interest-bearing demand deposits  $ 121,976 0.12%  $ 122,106 0.12%
Money market accounts  440,658  0.14  420,767  0.19
Savings accounts  38,147  0.10  39,397  0.11
Time deposits  472,820  0.60  617,824  0.74
Total interest-bearing deposits  1,073,601  0.34  1,200,094  0.46
Other borrowings  82,965  1.08  74,115  1.20
Subordinated debentures  46,393  4.81  71,243  6.76
Total interest-bearing liabilities  1,202,959  0.56  1,345,452  0.84
         
Noninterest-bearing demand deposits  449,052    420,347  
Other liabilities  10,612    10,925  
Shareholders' equity  269,081    252,542  
Total liabilities and shareholders' equity  $ 1,931,704   $ 2,029,266  
         
Net interest income and spread   3.25%   2.92%
Net interest margin (1)   3.45%   3.19%
Average interest-earning assets to average interest-bearing liabilities 156.68%   146.08%  
         
 (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)                
  2014 2013
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
LOAN COMPOSITION                
Real estate mortgage:                
Commercial $ 752,971 $ 757,878 $ 769,021 $ 766,178 $ 752,279 $ 757,435 $ 802,138 $ 836,843
One-to-four family residential  77,531  78,985  79,542  84,619  83,988  84,645  81,698  78,369
Real estate construction:                
Commercial  186,659  166,379  166,981  166,007  143,848  163,307  159,227  139,829
One-to-four family residential  10,464  11,030  8,359  6,629  4,646  4,464  5,241  5,015
Commercial  350,410  330,738  300,163  266,311  255,058  264,565  237,221  233,939
Installment and consumer:                
Guaranteed student loans  37  127  4,282  4,318  4,394  4,471  4,520  4,576
Other  21,919  22,251  23,352  26,060  26,690  27,738  28,044  28,644
Total loans, including held for sale  1,399,991  1,367,388  1,351,700  1,320,122  1,270,903  1,306,625  1,318,089  1,327,215
Less allowance for loan losses  (28,452)  (30,917)  (33,083)  (34,925)  (36,663)  (40,081)  (40,352)  (42,853)
Total loans, net $ 1,371,539 $ 1,336,471 $ 1,318,617  $ 1,285,197  $ 1,234,240  $ 1,266,544  $ 1,277,737  $ 1,284,362
LOANS BY SEGMENT                
Oklahoma banking $ 772,716 $ 777,037 $ 773,665 $ 754,698 $ 681,999 $ 681,749 $ 656,356 $ 628,747
Texas banking  460,680  424,640  408,385  372,018  366,697  414,433  444,327  495,815
Kansas banking  146,043  142,547  145,248  170,720  198,992  206,802  210,189  195,355
Subtotal  1,379,439  1,344,224  1,327,298  1,297,436  1,247,688  1,302,984  1,310,872  1,319,917
Mortgage banking  20,552  23,164  24,402  22,686  23,215  3,641  7,217  7,298
Total loans $ 1,399,991 $ 1,367,388  $ 1,351,700  $ 1,320,122 $ 1,270,903 $ 1,306,625 $ 1,318,089 $ 1,327,215
NONPERFORMING LOANS BY TYPE                
Construction & development  $ 73 $ 77 $ 82 $ 80 $ 2,721 $ 5,789 $ 6,119 $ 6,539
Commercial real estate  2,195  7,504  7,613  7,541  7,766  15,378  15,112  15,975
Commercial  6,044  6,149  7,484  7,992  8,819  10,991  10,790  11,940
One-to-four family residential  1,100  1,274  1,180  470  513  467  492  701
Consumer  1  55  119  2  53  55  64  74
Total nonperforming loans $ 9,413 $ 15,059 $ 16,478  $ 16,085 $ 19,872 $ 32,680 $ 32,577 $ 35,229
NONPERFORMING LOANS BY SEGMENT                
Oklahoma banking $ 1,867 $ 6,410 $ 7,149 $ 7,056 $ 5,547 $ 3,279 $ 1,678 $ 2,000
Texas banking  5,699  5,777  5,636  5,793  11,902  24,963  26,294  28,817
Kansas banking  1,847  2,872  3,693  3,236  2,423  4,438  4,605  4,412
Total nonperforming loans $ 9,413 $ 15,059 $ 16,478 $ 16,085 $ 19,872 $ 32,680 $ 32,577 $ 35,229
OTHER REAL ESTATE BY TYPE                
Construction & development $ 2,035 $ 2,130 $ 2,130 $ 2,130 $ 130 $ 1,333  $ 972 $ 1,389
Commercial real estate  1,062  1,318  2,155  2,524  2,524  360  839  10,276
Total other real estate $ 3,097 $ 3,448 $ 4,285 $ 4,654 $ 2,654 $ 1,693 $ 1,811 $ 11,665
OTHER REAL ESTATE BY SEGMENT                
Oklahoma banking $ -- $ -- $ -- $ -- $ -- $ -- $ --  $ 1,980
Texas banking  2,000  2,000  2,000  2,000  --  --  --  7,227
Kansas banking  1,097  1,448  2,285  2,654  2,654  1,693  1,811  2,458
Total other real estate $ 3,097 $ 3,448 $ 4,285 $ 4,654 $ 2,654 $ 1,693 $ 1,811 $ 11,665
Continued                
     
     
SOUTHWEST BANCORP, INC.    Table 6 
UNAUDITED QUARTERLY SUMMARY LOAN DATA                Continued 
(Dollars in thousands)                
  2014 2013
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
POTENTIAL PROBLEM LOANS BY TYPE                
Construction & development $ 2,004 $ 19,307 $ 18,842 $ 22,220 $ 21,501 $ 22,222 $ 20,745 $ 19,968
Commercial real estate  26,108  40,623  60,559  64,257  70,654  64,505  65,518  64,287
Commercial  5,842  4,090  4,299  4,807  7,107  10,028  10,136  8,220
One-to-four family residential  83  355  475  481  488  414  1,071  1,157
Total potential problem loans $ 34,037 $ 64,375 $ 84,175 $ 91,765 $ 99,750 $ 97,169 $ 97,470 $ 93,632
POTENTIAL PROBLEM LOANS BY SEGMENT                
Oklahoma banking $ 24,950 $ 23,895 $ 23,887 $ 29,208 $ 29,005 $ 31,345 $ 31,495 $ 32,246
Texas banking  6,283  38,586  57,044  58,361  65,079  59,561  58,710  51,978
Kansas banking  2,804  1,894  3,244  4,196  5,666  6,263  7,265  9,408
Total potential problem loans $ 34,037 $ 64,375 $ 84,175 $ 91,765 $ 99,750 $ 97,169 $ 97,470 $ 93,632
LOANS OUT OF MARKET                
Net balance of loans out of market:                
Arizona  $ 13,615 $ 14,397  $ 14,984 $ 15,348 $ 19,458 $ 30,516 $ 31,564  $ 33,017
Kentucky  16,244  14,648  14,273  13,415  12,404  10,088  11,860  10,144
North Carolina  13,757  13,711  13,323  13,494  13,070  10,161  300  407
Colorado  15,057  14,048  13,269  13,705  12,553  12,358  8,586  3,067
Iowa  11,305  11,369  11,501  22,178  22,316  22,438  22,537  22,659
California  8,985  9,000  9,527  8,869  9,154  9,472  9,632  10,866
Mississippi  9,668  8,474  8,582  8,712  8,823  8,929  9,233  9,170
North Dakota  4,856  6,011  6,271  15  15  16  16  17
Hawaii  9,002  --  --  --  --  --  --  --
Tennessee  9,672  7,005  6,555  6,684  6,048  6,136  6,171  6,246
Other   18,184  10,449  14,604  13,770  18,814  31,139  35,409  32,444
Total loans out of market $ 130,345 $ 109,112 $ 112,889 $ 116,190 $ 122,655 $ 141,253 $ 135,308 $ 128,037
Nonperforming loans out of market:                
Arizona  $ 5,014 $ 5,174 $ 5,381 $ 5,441 $ 9,302 $ 11,205 $ 12,167 $ 13,419
New Jersey  --  66  594  1,094  --  --  --  --
New York  --  --  --  --  --  1,033  1,048  --
Florida  --  235  240  246  252  258  264  270
Colorado  --  --  --  --  --  --  --  131
Other  39  112  --  --  --  --  1  --
Total nonperforming out of market $ 5,053 $ 5,587 $ 6,215 $ 6,781 $ 9,554 $ 12,496 $ 13,480 $ 13,820
Potentil problem loans out of market:                
Iowa $ 11,257 $ 11,336 $ 11,414 $ 11,490 $ 11,568 $ 11,645 $ 11,719 $ 11,792
Arizona   1,123  1,138  1,152  1,167  --  --  --  --
California  --  --  461  474  482  499  512  524
Florida  48  53  58  62  66  71  75  80
New Jersey  --  --  --  --  1,094  1,170  1,244  --
Total potential problem loans out of market $ 12,428 $ 12,527  $ 13,085 $ 13,193 $ 13,210 $ 13,385 $ 13,550 $ 12,396
Continued                
     
     
SOUTHWEST BANCORP, INC.    Table 6 
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA                Continued 
(Dollars in thousands)                
  2014 2013
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
ALLOWANCE ACTIVITY                
Balance, beginning of period $ 30,917 $ 33,083 $ 34,925 $ 36,663 $ 40,081 $ 40,352 $ 42,853 $ 46,718
Charge offs   377  1,156  1,991  3,392  2,681  600  2,072  4,651
Recoveries  298  1,887  504  2,640  5,765  658  447  288
Net charge offs (recoveries)  79  (731)  1,487  752  (3,084)  (58)  1,625  4,363
Provision for loan losses  (2,386)  (2,897)  (355)  (986)  (6,502)  (329)  (876)  498
Balance, end of period $ 28,452  $ 30,917 $ 33,083 $ 34,925 $ 36,663 $ 40,081 $ 40,352 $ 42,853
NET CHARGE OFFS BY TYPE                
Construction & development $ -- $ -- $ -- $ 655 $ (4,845) $ (20) $ 111 $ (19)
Commercial real estate  (34)  (640)  583  (2,243)  (62)  274  7  416
Commercial  (45)  22  652  2,267  1,883  (169)  1,085  3,751
One-to-four family residential  84  11  (2)  (18)  (40)  (165)  363  167
Consumer  74  (124)  254  91  (20)  22  59  48
Total net charge offs (recoveries) by type $ 79 $ (731)  $ 1,487 $ 752 $ (3,084) $ (58) $ 1,625 $ 4,363
NET CHARGE OFFS BY SEGMENT                
Oklahoma banking $ 248 $ 67 $ 763 $ 229 $ (1,294) $ (203) $ 200 $ 589
Texas banking  (36)  (611)  244  (1,586)  (2,314)  (80)  1,356  3,241
Kansas banking  (133)  (187)  480  2,109  524  225  69  533
Total net charge offs (recoveries) by segment $ 79 $ (731) $ 1,487 $ 752 $ (3,084) $ (58) $ 1,625 $ 4,363
     
     
SOUTHWEST BANCORP, INC.    Table 7 
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA                
(Dollars in thousands, except per share)                
  2014 2013
   Dec. 31   Sep. 30   Jun. 30  Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
PER SHARE DATA                
Basic earnings per common share $ 0.30 $ 0.27 $ 0.31 $ 0.19 $ 0.35 $ 0.19  $ 0.22 $ 0.12
Diluted earnings per common share  0.30  0.27  0.31  0.19  0.35  0.19  0.22  0.12
Common dividends declared per share  0.04  0.04  0.04  0.04  --  --  --  --
Book value per common share  14.11  13.90  13.71  13.37  13.13  12.83  12.67  12.72
Tangible book value per share*  14.05  13.83  13.65  13.31  13.07  12.77  12.60  12.66
COMMON STOCK                
Shares issued  19,810,877  19,793,623  19,793,123  19,786,206  19,732,926  19,703,313  19,692,606  19,692,038
Less treasury shares  617,818  223,005  --  --  --  --  --  --
Outstanding shares  19,193,059  19,570,618  19,793,123  19,786,206  19,732,926  19,703,313  19,692,606  19,692,038
OTHER FINANCIAL DATA                
Investment securities $ 365,593 $ 370,607 $ 385,873 $ 386,987 $ 394,199 $ 382,001 $ 372,403 $ 365,605
Loans held for sale  1,485  4,368  6,803  5,741  3,060  3,641  7,217  7,297
Portfolio loans  1,398,506  1,363,020  1,344,897  1,314,381  1,267,843  1,302,984  1,310,872  1,319,918
Total loans  1,399,991  1,367,388  1,351,700  1,320,122  1,270,903  1,306,625  1,318,089  1,327,215
Total assets  1,942,034  1,900,948  1,885,158  2,012,053  1,981,423  1,972,367  2,031,962  2,091,694
Total deposits  1,533,999  1,494,946  1,463,855  1,605,906  1,584,086  1,583,791  1,615,961  1,677,668
Other borrowings  79,380  75,884  90,760  85,692  80,632  78,663  74,334  70,872
Subordinated debentures  46,393  46,393  46,393  46,393  46,393  46,393  81,963  81,963
Total shareholders' equity  270,786  271,966  271,351  264,586  259,187  252,802  249,420  250,509
Mortgage servicing portfolio  410,315  401,756  397,339  391,303  390,732  383,400  368,825  356,032
INTANGIBLE ASSET DATA                
Goodwill $ 1,214 $ 1,214 $ 1,214  $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214
Core deposit intangible  530  597  667  1,925  2,058  2,185  2,306  2,424
Mortgage servicing rights  3,397  3,269  3,182  3,006  2,922  2,837  2,675  2,445
Total intangible assets $ 5,141 $ 5,080 $ 5,063 $ 6,145 $ 6,194 $ 6,236 $ 6,195 $ 6,083
Intangible amortization expense $ 193 $ 195 $ 210 $ 183  $ 278 $ 314  $ 313 $ 410
DEPOSIT COMPOSITION                
Non-interest bearing demand  496,128  445,148  427,431  471,568  444,796  436,904  412,176  416,979
Interest-bearing demand  122,342  104,807  124,712  132,622  120,156  106,176  138,502  125,914
Money market accounts  461,679  477,614  430,296  440,875  439,981  423,720  408,145  437,629
Savings accounts  32,795  33,398  31,187  47,532  41,727  39,727  38,611  39,733
Time deposits of $100,000 or more  198,952  203,090  209,059  236,035  251,185  270,916  295,179  317,270
Other time deposits  222,103  230,889  241,170  277,274  286,241  306,348  323,348  340,143
Total deposits** $ 1,533,999 $ 1,494,946 $ 1,463,855 $ 1,605,906 $ 1,584,086 $ 1,583,791 $ 1,615,961 $ 1,677,668
OFFICES AND EMPLOYEES                
FTE Employees 359  351 364 397 402 407 408 412
Branches 21 21 21 24 23 23 22 22
Assets per employee $ 5,410 $ 5,416 $ 5,179 $ 5,068 $ 4,929  $ 4,846  $ 4,980 $ 5,077
____________________                
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $ 1,533,999  $ 1,494,946  $ 1,463,855 $ 1,605,906 $ 1,584,086  $ 1,583,791 $ 1,615,961 $ 1,677,668
Less:                
Brokered time deposits  3,373  2,952  1,348  1,347  1,347  1,343  4,904  5,760
Other brokered deposits  73,425  98,425  48,424  3,424  3,423  3,423  3,422  3,422
Non-brokered deposits $ 1,457,201 $ 1,393,569 $ 1,414,083 $ 1,601,135 $ 1,579,316  $ 1,579,025 $ 1,607,635 $ 1,668,486
Plus:                
 Sweep repurchase agreements  54,380  50,884  65,760  60,692  55,631  53,663  49,334  45,872
Core funding $ 1,511,581  $ 1,444,453  $ 1,479,843 $ 1,661,827  $ 1,634,947 $ 1,632,688 $ 1,656,969  $ 1,714,358
                 
Balance sheet amounts are as of period end unless otherwise noted.
                 
                 
SOUTHWEST BANCORP, INC.                Table 8 
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA                
(Dollars in thousands)                
  2014 2013
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
PERFORMANCE RATIOS                
Return on average assets (annualized)  1.22% 1.12% 1.27% 0.75% 1.37% 0.75% 0.87% 0.46%
Return on average common equity (annualized)  8.62  7.69  9.19  5.68  10.59  5.99  7.00  3.89
Return on average tangible common equity                
(annualized)*  8.66  7.72  9.24  5.71  10.64  6.02  7.03  3.90
Net interest margin (annualized)  3.52  3.44  3.50  3.33  3.42  3.11  3.07  3.16
Total dividends declared to net income  12.93  14.88  12.86  21.40  --  --  --  --
Effective tax rate  37.50  37.49  37.50  37.49  38.68  38.01  33.74  43.88
Efficiency ratio  66.68  70.60  61.77  74.15  76.45  69.18  68.93  75.16
NONPERFORMING ASSETS                
Nonaccrual loans $ 9,276 $ 15,059 $ 16,478 $ 16,085  $ 19,819 $ 32,678 $ 32,575 $ 35,229
90 days past due and accruing   137  --  --  --  53  2  2  --
Total nonperforming loans  9,413  15,059  16,478  16,085  19,872  32,680  32,577  35,229
Other real estate  3,097  3,448  4,285  4,654  2,654  1,693  1,811  11,665
Total nonperforming assets $ 12,510 $ 18,507 $ 20,763 $ 20,739 $ 22,526 $ 34,373 $ 34,388 $ 46,894
Potential problem loans $ 34,037 $ 64,375 $ 84,175 $ 91,765 $ 99,750 $ 97,169 $ 97,470 $ 93,632
ASSET QUALITY RATIOS                
Nonperforming assets to portfolio loans and other real estate 0.89% 1.36% 1.54% 1.57% 1.77% 2.63% 2.62% 3.52%
Nonperforming loans to portfolio loans  0.67  1.10  1.23  1.22  1.57  2.51  2.49  2.67
Allowance for loan losses to portfolio loans  2.03  2.27  2.46  2.66  2.89  3.08  3.08  3.24
Allowance for loan losses to nonperforming loans  302.26  205.29  200.77  217.13  184.50  122.65  123.87  121.64
Net loan charge-offs to average portfolio loans (annualized)  0.02 %  (0.21)%  0.45  0.24  (0.96)  (0.02)  0.50  1.32
CAPITAL RATIOS                
Average total shareholders' equity to average assets 14.19% 14.61% 13.77% 13.18% 12.93% 12.53% 12.41% 11.92%
Leverage ratio  16.45  16.86  15.95  15.09  14.86  14.78  16.10  15.59
Tier 1 capital to risk-weighted assets  19.70  20.05  20.13  19.98  20.28  20.21  22.48  22.25
Total capital to risk-weighted assets  20.96  21.34  21.43  21.29  21.59  21.52  23.78  23.54
Tangible common equity to tangible assets***  13.89  14.25  14.34  13.10  13.03  12.76  12.22  11.93
REGULATORY CAPITAL DATA                
Tier I capital $ 314,216 $ 314,120 $ 309,600 $ 299,938 $ 292,051 $ 296,488 $ 326,831 $ 324,659
Total capital 334,348 334,456 329,586 319,516 310,867 315,570 345,717 343,562
Total risk adjusted assets 1,595,032 1,566,996 1,537,903 1,500,957 1,439,934 1,466,672 1,453,878 1,459,465
Average total assets 1,910,688 1,863,127 1,941,064 1,987,231 1,964,920 2,006,525 2,030,064 2,082,789
____________________                
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $ 270,786 $ 271,966 $ 271,351  $ 264,586 $ 259,187 $ 252,802 $ 249,420 $ 250,509
Less goodwill  1,214  1,214  1,214  1,214  1,214  1,214  1,214  1,214
Tangible common equity $ 269,572 $ 270,752 $ 270,137  $ 263,372 $ 257,973  $ 251,588 $ 248,206 $ 249,295
Total assets  $ 1,942,034  $ 1,900,948 $ 1,885,158  $ 2,012,053  $ 1,981,423  $ 1,972,367 $ 2,031,962  $ 2,091,694
Less goodwill  1,214  1,214  1,214  1,214  1,214  1,214  1,214  1,214
Tangible assets $ 1,940,820 $ 1,899,734  $ 1,883,944 $ 2,010,839 $ 1,980,209 $ 1,971,153 $ 2,030,748 $ 2,090,480
Total shareholders' equity to total assets 13.94% 14.31% 14.39% 13.15% 13.08% 12.82% 12.27% 11.98%
Tangible common equity to tangible assets 13.89% 14.25% 14.34% 13.10% 13.03% 12.76% 12.22% 11.93%
                 
Balance sheet amounts and ratios are as of period end unless otherwise noted.

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

Source:Southwest Bancorp, Inc.