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Southwest Bancorp, Inc. Reports Results for Fourth Quarter 2016 and Announces Quarterly Dividend

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STILLWATER, Okla., Jan. 24, 2017 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (NASDAQ: OKSB), ("Southwest"), today reported net income for the fourth quarter of 2016 of $6.2 million, or $0.33 per diluted share, compared to $4.6 million, or $0.23 per diluted share, for the fourth quarter of 2015, an earnings per share increase of 43.5% from the same quarter a year ago. Net income for the year ended December 31, 2016 totaled $17.7 million, or $0.92 per diluted share, compared to $17.4 million, or $0.90 per diluted share, for the year ended December 31, 2015.

Southwest announced that its board of directors has approved a quarterly cash dividend of $0.08 per share payable February 17, 2017 to shareholders of record as of February 3, 2017.

Mark Funke, President and CEO, stated, "The strong financial results for the quarter were driven primarily by improved credit quality and focused expense management. In mid-December, we were very pleased to announce the signing of a Definitive Agreement to merge with Simmons First National Corporation, which when completed, will add significant products and convenience for our customers. The merger is expected to be completed in the third quarter of 2017. Here are several highlights from this quarter:

  • During the fourth quarter, nonperforming loans and assets were reduced by $9.7 million, or 36.3%, to end the year at $17.0 million.

  • The improvement in credit quality combined with loan recoveries produced a $1.3 million release from our allowance for loan losses, resulting in a ratio of 1.47% when compared to total loans.

  • Total loans at December 31, 2016 of $1.9 billion, while down slightly for the quarter, increased by $97.7 million, or 5.5% for the year.

  • The quarterly net interest margin was 3.40% at December 31, 2016, compared to 3.42% at September 30, 2016 and 3.48% at December 31, 2015.

  • Pre-tax, pre-provision income was $8.6 million in the fourth quarter, an increase of 2% from $8.4 million in the third quarter of 2016, and an increase of 33% from $6.4 million for the fourth quarter of 2015.

  • The efficiency ratio for the fourth quarter of 2016 was 64.34%, compared to 66.09% for the third quarter of 2016 and 72.17% for the fourth quarter of 2015. Excluding the deal costs related to the pending merger, the efficiency ratio for the fourth quarter was 60.46%."

See Table 3 for details on pre-tax, pre-provision income, which is a non-GAAP financial measure.

Financial Overview

Condition:  As of December 31, 2016, total assets were $2.5 billion, an increase of $7.4 million, when compared to September 30, 2016. As of December 31, 2016, total loans were $1.9 billion, a decrease of $3.0 million from the prior quarter end. As of December 31, 2016, investment securities were $436.7 million, an increase of $8.7 million from the prior quarter end. Cash and cash equivalents at December 31, 2016 were $75.7 million, an increase of $5.6 million from September 30, 2016. 

At December 31, 2016, the allowance for loan losses was $27.5 million, a decrease of $1.0 million when compared to September 30, 2016 and an increase of $1.4 million when compared to December 31, 2015. The allowance for loan losses to portfolio loans was 1.47% as of December 31, 2016, compared to 1.52% as of September 30, 2016, and 1.47% as of December 31, 2015. The allowance for loan losses to nonperforming loans was 165.84% as of December 31, 2016, compared to 116.02% as of September 30, 2016 and 128.23% as of December 31, 2015. The total allowance for loan losses combined with the purchase discount on acquired loans represents 1.71% of gross loans as of December 31, 2016.

Nonperforming loans were $16.6 million at December 31, 2016, a decrease of $7.9 million from September 30, 2016, and a decrease of $3.7 million from December 31, 2015. Other real estate was $0.4 million at December 31, 2016 compared to $2.1 million at September 30, 2016, and $2.3 million at December 31, 2015. Nonperforming assets were $17.0 million, or 0.91% of portfolio loans and other real estate, as of December 31, 2016, compared to $26.6 million, or 1.42% of portfolio loans and other real estate, as of September 30, 2016, and $22.6 million, or 1.28% of portfolio loans and other real estate, as of December 31, 2015.

As of December 31, 2016, total deposits were $1.9 billion, a decrease of $1.9 million, when compared to September 30, 2016. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 81% of total funding as of December 31, 2016 and September 30, 2016. Wholesale funding, including Federal Home Loan Bank borrowings and brokered deposits, accounted for 19% of total funding at December 31, 2016 and September 30, 2016. 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, 2016 exceeded the criteria for regulatory classification as "well-capitalized". Southwest's total regulatory capital was $345.6 million, for a total risk-based capital ratio of 15.66%, Common Equity Tier 1 capital was $272.9 million, for a Common Equity Tier 1 ratio of 12.36%, and Tier 1 capital was $317.9 million, for a Tier 1 risk-based capital ratio of 14.40%. Bank SNB had total regulatory capital of $328.7 million, for a total risk-based capital ratio of 14.92% and Common Equity Tier 1 and Tier 1 capital of $301.0 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.66%. 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 2016, net income was $6.2 million, compared to $4.3 million for the third quarter of 2016 and $4.6 million for the fourth quarter of 2015. Pre-tax, pre-provision income for the fourth quarter of 2016 was $8.6 million, compared to $8.4 million for the third quarter of 2016 and $6.4 million for the fourth quarter of 2015. The fourth quarter of 2016 includes $0.9 million of merger related costs. Certain variances in income and expenses in the fourth quarter compared to the prior year are due in part to the First Commercial Bancshares, Inc., acquisition that occurred in the fourth quarter of 2015.

The $1.9 million increase in net income compared to the third quarter of 2016 was primarily due to the $1.3 million credit provision for loan losses recorded in the fourth quarter, a $3.0 million decrease from the $1.7 million expense in the third quarter of 2016. The increase in net income also includes a $0.3 million increase in net interest income and a $0.3 million decrease in noninterest expense, offset in part by $0.3 million decrease in noninterest income and a $1.4 million increase in income taxes.

The $1.6 million increase in net income compared to the fourth quarter of 2015 was due to a $0.6 million increase in net interest income, a $0.8 million increase in the credit provision for loan losses, and a $1.3 million decrease in noninterest expense, offset in part by a $1.1 million increase in income taxes.

Net Interest Income:  Net interest income totaled $20.1 million for the fourth quarter of 2016, compared to $19.8 million for the third quarter of 2016 and $19.5 million for the fourth quarter of 2015. Net interest margin was 3.40% for the fourth quarter of 2016, compared to 3.42% for the third quarter of 2016 and 3.48% for the fourth quarter of 2015. Interest income for the fourth quarter of 2016, the third quarter of 2016, and the fourth quarter of 2015 includes $0.1 million, $0.5 million and $0.3 million of accelerated discount accretion, respectively. The net effects of these adjustments on the net interest margins were a 2 basis point, a 10 basis point and a 5 basis point increase, respectively, for each quarter. Average loans (including loans held for sale) for the fourth quarter of 2016 increased $34.5 million when compared to September 30, 2016, and $122.8 million when compared to December 31, 2015. Loans pursuant to the acquisition in the fourth quarter of 2015 were $202.4 million.

Provision (Credit) for Loan Losses and Net Charge-offs:  The provision for loan losses is the amount that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the net effects of charge-offs and recoveries for the period. The provision for loan losses was a credit provision of $1.3 million for the fourth quarter of 2016, compared to a provision of $1.7 million for the third quarter of 2016, and a credit provision of $0.6 million for the fourth quarter of 2015. The fourth quarter 2016 credit provision was driven primarily by a $2.1 million recovery on the sale of certain nonperforming loans and partially offset by a $0.8 million provision. During the fourth quarter of 2016, net recoveries totaled $0.4 million, or (0.09)% (annualized) of average portfolio loans, compared to net charge-offs of $0.1 million, or 0.03% (annualized) of average portfolio loans for the third quarter of 2016 and net recoveries of $0.1 million, or (0.02%) (annualized) of average portfolio loans for the fourth quarter of 2015. The 2016 fourth quarter recovery on the sale of certain nonperforming loans was substantially offset by a $2.0 million charge-off on a nonperforming loan with a specific reserve.

Noninterest Income:  Noninterest income totaled $4.2 million for the fourth quarter of 2016, compared to $4.6 million for the third quarter of 2016 and $4.2 million for the fourth quarter of 2015. 

The $0.3 million decrease from the third quarter of 2016 is the result of a $0.4 million decrease in other noninterest income, which is primarily from a reduced level of customer risk management interest rate swap income, offset in part by a $0.1 million increase in service charges and fees. The third quarter of 2016 service charges and fees includes a $0.1 million impairment on mortgage servicing rights and other noninterest income includes a $0.1 million loss on the disposition of fixed assets related to branch closures.

During the fourth quarter of 2016, there was a $0.1 million increase in service charges and fees and a $0.1 million increase in the gain on sales of mortgage loans, offset by a $0.2 million decrease in other noninterest income, which resulted in no change compared to the fourth quarter of 2015.

Noninterest Expense:  Noninterest expense totaled $15.8 million for the fourth quarter of 2016, compared to $16.2 million for the third quarter of 2016 and $17.1 million for the fourth quarter of 2015. Excluding the deal costs related to the pending merger, the 2016 fourth quarter noninterest expense totaled $14.9 million. The initiatives taken in the third quarter of 2016 to close three branches, reduce leased space, and to improve operational efficiencies resulted in an expense reduction of approximately $0.7 million in the fourth quarter.

The $0.4 million decrease in noninterest expense from the third quarter of 2016 was due to a $0.8 million decrease in personnel expense, a $0.5 million decrease in occupancy, a $0.2 million decrease in data processing, a $0.1 million decrease in FDIC and other insurance expense, and a $0.1 million decrease in the provision for unfunded loan commitments, offset in part by a $0.2 million decrease in other real estate net gains on the sales of properties during the third quarter, and a $1.1 million increase in general and administrative expenses primarily due to the $0.9 million legal and consulting fees associated with the recently announced definitive agreement.

The $1.3 million decrease in noninterest expense from the fourth quarter of 2015 consisted of a $1.3 million decrease in personnel expense, a $0.4 million decrease in data processing and a $0.1 million decrease in FDIC and other insurance expense, offset in part by a $0.2 million increase in the provision for unfunded loan commitments and a $0.4 million increase in general and administrative expense, primarily due to the legal and consulting fees associated with the recently announced definitive agreement.

Income Tax:  Income tax expense totaled $3.7 million for the fourth quarter of 2016, compared to $2.2 million for the third quarter of 2016 and $2.6 million for the fourth quarter of 2015.  The income tax expense fluctuates in relation to pre-tax income levels. The fourth quarter of 2016 effective tax rate was 37.38%, compared to 34.45% for the third quarter of 2016 and 35.96% for the fourth quarter of 2015. The increase in the effective tax rate includes the impact of a decrease in tax exempt income as a percentage of pre-tax income, the higher level of pre-tax earnings, and the impact of certain nondeductible merger costs.

Year-to-Date Results:

Summary:  Net income was $17.7 million for the year ended December 31, 2016, compared to $17.4 million for the year ended December 31, 2015. The $0.3 million increase in net income from 2015 is the result of a $12.0 million increase in net interest income and a $1.6 million increase in noninterest income, offset in part by an $8.3 million increase in the provision for loan losses and a $5.0 million increase in noninterest expense due to increased personnel, occupancy, and general and administrative expenses. The increases in net interest income, noninterest income, and noninterest expense are due in part to the First Commercial Bancshares, Inc. acquisition that occurred in the fourth quarter of 2015. Net income for the year ended December 31, 2016, was also reduced by the restructuring charges of $0.4 million, which incurred in the third quarter of 2016, and by $0.9 million of legal and consulting fees associated with the recently announced definitive agreement, which occurred in the fourth quarter of 2016.

Net Interest Income:  Net interest income totaled $79.4 million for 2016, compared to $67.4 million for 2015, an increase of $12.0 million. Year-to-date net interest margin was 3.46%, compared to 3.35% for 2015. Interest income for 2016 and for 2015 includes $1.1 million and $0.6 million, respectively, of accelerated discount accretion. The net effects of these adjustments on the net interest margin was a 5 basis point and a 3 basis point increase, respectively. Average loans (including loans held for sale) for 2016 were $1.8 billion compared to $1.5 billion in 2015. Loans acquired in the fourth quarter of 2015 were $202.4 million.

Provision (Credit) for Loan Losses and Net Charge-offs:  The provision for loan losses is the amount of expense that is required to maintain the allowance for loan losses at an appropriate level based upon the inherent risks in the loan portfolio after the net effects of charge-offs and recoveries for the period. The provision for loan losses was $4.8 million for 2016, compared to a credit provision of $3.6 million for 2015. The provision for loan losses for 2016 was driven by the growth in the loan portfolio and the impact of low energy prices combined with deterioration in a few general business credits that occurred primarily in the first quarter of 2016. Net charge-offs totaled $3.3 million, or 0.18% (annualized) of average portfolio loans year-to-date as of 2016, compared to net recoveries of $1.2 million, or (0.08%) (annualized) of average portfolio loans for 2015.  

Noninterest Income:  Noninterest income totaled $16.1 million for 2016, compared to $14.5 million for 2015, an increase of $1.6 million. The increase consists of a $0.6 million increase in service charges and fees, which includes a $0.6 million impairment of mortgage servicing rights, a $0.5 million increase in gains on sales of mortgage loans, a $0.1 million increase in the gain on sale of investment securities, and a $0.4 million increase in other noninterest income, which includes income on bank owned life insurance and customer risk management interest rate swap income.

Noninterest Expense:  Noninterest expense totaled $63.2 million for 2016, compared to $58.2 million for 2015. The increase consists of a $2.9 million increase in personnel expense, a $1.7 million increase in occupancy, a $0.4 million increase in the provision for unfunded loan commitments, and a $0.7 million increase in general and administrative expense, offset in part by a $0.3 million decrease in data processing and a $0.4 million decrease in other real estate expense.

Income Tax:  Income tax expense totaled $9.8 million for 2016, compared to $9.8 million for 2015. The income tax expense fluctuates in relation to pre-tax income levels. The year-to-date effective tax rate was 35.65% as of December 31, 2016, compared to 36.00% as of December 31, 2015.

Pending Merger:

On December 14, 2016, Southwest and Simmons First National Corporation ("Simmons") issued a joint press release announcing that we have entered into a Definitive Agreement and plan of merger. Simmons will acquire all of the outstanding stock of Southwest in a transaction valued at approximately $564.4 million, as of the date of the announcement. Southwest's President and CEO, Mark Funke, will be the President of the new Southwest Division of Simmons Bank and will be responsible for the banking operations in Oklahoma, Texas, Colorado and Kansas.  The transaction is subject to shareholder approval and customary regulatory approvals.

Conference Call

Southwest will host a conference call to review these results on Wednesday, January 25, 2017 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN:  http://dpregister.com/100987341. 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/oksb170125.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 10098734. Telephone replay access will be available until February 25, 2017. 

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 services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2016, Southwest had total assets of approximately $2.5 billion, deposits of $1.9 billion, and shareholders' equity of $286.6 million.

Southwest's area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its banking subsidiary provide credit and other remittance services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of December 31, 2016, approximately $423.8 million, or 23%, of loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.

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

Caution About Forward-Looking Statements

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

These forward-looking statements include: 

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

These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2015. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors".

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

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of December 31, 2016 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2016 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

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

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


Financial Tables
 
     
Unaudited Financial Highlights   Table 1
Unaudited Consolidated Statements of Financial Condition   Table 2
Unaudited Consolidated Statements of Operations   Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly    Table 4
Unaudited Average Balances, Yields, and Rates-YTD   Table 5
Unaudited Quarterly Summary Loan Data   Table 6
Unaudited Quarterly Summary Financial Data   Table 7
Unaudited Quarterly Supplemental Analytical Data   Table 8
     


SOUTHWEST BANCORP, INC.                         Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)                          
                           
    Fourth Quarter
  Third Quarter
      Fourth Quarter
QUARTERLY HIGHLIGHTS   2016   % Change   2015   % Change
Operations                          
Net interest income   $ 20,103     $ 19,805     2 %   $ 19,520     3 %
Provision (credit) for loan losses     (1,329 )     1,713     (178 )     (566 )   135  
Noninterest income     4,244       4,555     (7 )     4,179     2  
Noninterest expense     15,826       16,156     (2 )     17,099     (7 )
Income before taxes     9,850       6,491     52       7,166     37  
Taxes on income     3,682       2,236     65       2,577     43  
Net income     6,168       4,255     45       4,589     34  
Diluted earnings per share     0.33       0.23     42       0.23     42  
Balance Sheet                          
Total assets     2,475,392       2,468,042     0       2,357,022     5  
Loans held for sale     4,386       7,899     (44 )     7,453     (41 )
Portfolio loans     1,872,746       1,872,213     0       1,771,976     6  
Total deposits     1,946,018       1,947,924     (0 )     1,884,105     3  
Total shareholders' equity     286,629       283,820     1       296,098     (3 )
Book value per common share     15.35       15.19     1       14.80     4  
Key Ratios                          
Net interest margin     3.40 %     3.42 %         3.48 %    
Efficiency ratio     64.34       66.09           72.17      
Total capital to risk-weighted assets     15.66       15.21           16.79      
Nonperforming loans to portfolio loans     0.89       1.31           1.15      
Shareholders' equity to total assets     11.58       11.50           12.56      
Tangible common equity to tangible assets*     11.01       10.92           11.95      
Return on average assets (annualized)     1.00       0.70           0.78      
Return on average common equity (annualized)     8.59       5.97           6.14      
Return on average tangible common equity (annualized)**     9.10       6.33           6.46      
                           
    Year          
YEAR-TO-DATE HIGHLIGHTS   2016   2015   % Change          
Operations                          
Net interest income   $ 79,443     $ 67,417     18 %          
Provision (credit) for loan losses     4,769       (3,566 )   234            
Noninterest income     16,085       14,457     11            
Noninterest expense     63,246       58,240     9            
Income before taxes     27,513       27,200     1            
Taxes on income     9,809       9,793     0            
Net income     17,704       17,407     2            
Diluted earnings per share     0.92       0.90     3            
Balance Sheet                          
Total assets     2,475,392       2,357,022     5            
Loans held for sale     4,386       7,453     (41 )          
Portfolio loans     1,872,746       1,771,976     6            
Total deposits     1,946,018       1,884,105     3            
Total shareholders' equity     286,629       296,098     (3 )          
Book value per common share     15.35       14.80     4            
Key Ratios                          
Net interest margin     3.46 %     3.35 %              
Efficiency ratio     65.88       70.98                
Total capital to risk-weighted assets     15.66       16.79                
Nonperforming loans to portfolio loans     0.89       1.15                
Shareholders' equity to total assets     11.58       12.56                
Tangible common equity to tangible assets*     11.01       11.95                
Return on average assets (annualized)     0.74       0.84                
Return on average common equity (annualized)     6.18       6.23                
Return on average tangible common equity (annualized)**     6.55       6.35                
                               
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,
    2016
  2015
Assets            
Cash and due from banks   $ 36,831     $ 24,971  
Interest-bearing deposits     38,819       53,158  
Cash and cash equivalents     75,650       78,129  
Securities held to maturity (fair values of $10,677 and $12,282, respectively)     10,443       11,797  
Securities available for sale (amortized cost of $427,113 and $401,136, respectively)     426,218       400,331  
Loans held for sale     4,386       7,453  
Loans receivable     1,872,746       1,771,975  
Less: Allowance for loan losses     (27,546 )     (26,106 )
Net loans receivable     1,845,200       1,745,869  
Accrued interest receivable     6,194       5,767  
Non-hedge derivative asset     1,235       1,793  
Premises and equipment, net     22,808       23,819  
Other real estate     350       2,274  
Goodwill     13,545       13,467  
Other intangible assets, net     5,790       6,615  
Other assets     63,573       59,708  
Total assets   $ 2,475,392     $ 2,357,022  
             
Liabilities            
Deposits:            
Noninterest-bearing demand   $ 551,709     $ 596,494  
Interest-bearing demand     152,656       151,015  
Money market accounts     567,058       534,357  
Savings accounts     56,410       56,333  
Time deposits of $100,000 or more     360,307       311,538  
Other time deposits     257,878       234,368  
Total deposits     1,946,018       1,884,105  
Accrued interest payable     1,132       867  
Non-hedge derivative liability     1,235       1,793  
Other liabilities     10,171       11,684  
Other borrowings     183,814       110,927  
Subordinated debentures     46,393       51,548  
Total liabilities     2,188,763       2,060,924  
             
Shareholders' equity            
Common stock - $1 par value; 40,000,000 shares authorized;            
21,230,714 and 21,138,028 shares issued, respectively     21,231       21,138  
Additional paid-in capital     123,112       121,966  
Retained earnings     184,840       173,210  
Accumulated other comprehensive loss     (907 )     (1,290 )
Treasury stock, at cost, 2,555,987 and 1,131,226 shares, respectively     (41,647 )     (18,926 )
Total shareholders' equity     286,629       296,098  
Total liabilities and shareholders' equity   $ 2,475,392     $ 2,357,022  
                 


SOUTHWEST BANCORP, INC.                           Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)                              
                               
    For the three months ended   For the year
    December 31,   September 30,   December 31,   ended December 31,
    2016   2016   2015   2016   2015
Interest income                              
Loans   $ 20,925     $ 20,541     $ 19,725     $ 81,527     $ 67,644  
Investment securities     1,761       1,719       1,813       7,407       6,559  
Other interest-earning assets     52       50       46       206       280  
Total interest income     22,738       22,310       21,584       89,140       74,483  
                               
Interest expense                              
Interest-bearing deposits     1,691       1,542       1,196       5,968       3,798  
Other borrowings     354       374       261       1,379       984  
Subordinated debentures     590       589       607       2,350       2,284  
Total interest expense     2,635       2,505       2,064       9,697       7,066  
                               
Net interest income     20,103       19,805       19,520       79,443       67,417  
                               
Provision (credit) for loan losses     (1,329 )     1,713       (566 )     4,769       (3,566 )
                               
Net interest income after provision (credit) for loan losses     21,432       18,092       20,086       74,674       70,983  
                               
Noninterest income                              
Service charges and fees     2,772       2,681       2,676       10,558       9,995  
Gain on sales of mortgage loans     774       775       645       2,672       2,179  
Gain on sale/call of investment securities, net     -       3       -       294       162  
Other noninterest income     698       1,096       858       2,561       2,121  
Total noninterest income     4,244       4,555       4,179       16,085       14,457  
                               
Noninterest expense                              
Salaries and employee benefits     9,001       9,794       10,273       37,724       34,850  
Occupancy     2,616       3,103       2,586       11,059       9,359  
Data processing     404       582       847       1,886       2,178  
FDIC and other insurance     235       341       384       1,376       1,353  
Other real estate, net     (10 )     (233 )     8       (222 )     161  
Provision (credit) for unfunded loan commitments     32       146       (163 )     130       (255 )
General and administrative     3,548       2,423       3,164       11,293       10,594  
Total noninterest expense     15,826       16,156       17,099       63,246       58,240  
Income before taxes     9,850       6,491       7,166       27,513       27,200  
Taxes on income     3,682       2,236       2,577       9,809       9,793  
Net income   $ 6,168     $ 4,255     $ 4,589     $ 17,704     $ 17,407  
                               
Pre-tax, pre-provision income*   $ 8,553     $ 8,350     $ 6,437     $ 32,412     $ 23,379  
                               
Basic earnings per common share   $ 0.33     $ 0.23     $ 0.23     $ 0.93     $ 0.90  
Diluted earnings per common share     0.33       0.23       0.23       0.92       0.90  
Common dividends declared per share     0.08       0.08       0.06       0.32       0.24  
                               
*This is a Non-GAAP based financial measure.  Pre-tax, pre-provision income is calculated as follows:               
Net Income + Taxes on income + Provision (credit) for loan losses + Provision (credit) for unfunded loan commitments            
             


SOUTHWEST BANCORP, INC.                             Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands)                              
                               
     For the three months ended
    December 31, 2016   September 30, 2016   December 31, 2015
    Average   Average   Average   Average   Average   Average
    Balance   Yield/Rate   Balance   Yield/Rate   Balance   Yield/Rate
Assets                              
Loans   $ 1,867,210     4.46 %   $ 1,832,750     4.46 %   $ 1,744,375     4.49 %
Investment securities     432,053     1.62       425,276     1.61       413,701     1.74  
Other interest-earning assets     50,564     0.41       48,759     0.41       64,562     0.28  
Total interest-earning assets     2,349,827     3.85       2,306,785     3.85       2,222,638     3.85  
Other assets     106,961           107,140           101,002      
Total assets   $ 2,456,788         $ 2,413,925         $ 2,323,640      
                               
Liabilities and Shareholders' Equity                              
Interest-bearing demand deposits   $ 146,708     0.16 %   $ 152,134     0.15 %   $ 137,153     0.15 %
Money market accounts     572,984     0.26       545,040     0.26       541,976     0.19  
Savings accounts     55,761     0.13       54,073     0.14       53,604     0.13  
Time deposits     625,288     0.79       603,201     0.73       548,145     0.63  
Total interest-bearing deposits     1,400,741     0.48       1,354,448     0.45       1,280,878     0.37  
Other borrowings     151,004     0.93       163,495     0.91       80,343     1.29  
Subordinated debentures     46,393     5.09       46,393     5.08       51,044     4.76  
Total interest-bearing liabilities     1,598,138     0.66       1,564,336     0.64       1,412,265     0.58  
                               
Noninterest-bearing demand deposits     557,994           549,077           594,537      
Other liabilities     15,157           16,937           20,149      
Shareholders' equity     285,499           283,575           296,689      
Total liabilities and shareholders' equity   $ 2,456,788         $ 2,413,925         $ 2,323,640      
                               
Net interest income and spread         3.19 %         3.21 %         3.27 %
Net interest margin (1)         3.40 %         3.42 %         3.48 %
Average interest-earning assets                              
to average interest-bearing liabilities     147.04 %         147.46 %         157.38 %    
                               
(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,
    2016
  2015
    Average   Average   Average   Average
    Balance   Yield/Rate   Balance   Yield/Rate
Assets                    
Loans   $ 1,822,288     4.47 %   $ 1,519,730     4.45 %
Investment securities     424,501     1.74       384,745     1.70  
Other interest-earning assets     49,938     0.41       106,586     0.26  
Total interest-earning assets     2,296,727     3.88       2,011,061     3.70  
Other assets     106,180           68,681      
Total assets   $ 2,402,907         $ 2,079,742      
                     
Liabilities and Shareholders' Equity                    
Interest-bearing demand deposits   $ 156,086     0.16 %   $ 134,381     0.11 %
Money market accounts     549,691     0.25       499,788     0.17  
Savings accounts     55,118     0.13       39,456     0.11  
Time deposits     595,536     0.72       469,547     0.59  
Total interest-bearing deposits     1,356,431     0.44       1,143,172     0.33  
Other borrowings     143,399     0.96       72,538     1.36  
Subordinated debentures     46,928     5.01       47,565     4.80  
Total interest-bearing liabilities     1,546,758     0.63       1,263,275     0.56  
                     
Noninterest-bearing demand deposits     554,509           524,025      
Other liabilities     15,120           13,217      
Shareholders' equity     286,520           279,225      
Total liabilities and shareholders' equity   $ 2,402,907         $ 2,079,742      
                     
Net interest income and spread         3.25 %         3.14 %
Net interest margin (1)         3.46 %         3.35 %
Average interest-earning assets                    
to average interest-bearing liabilities     148.49 %         159.19 %    
                     
(1) Net interest margin = annualized net interest income / average interest-earning assets          
           


SOUTHWEST BANCORP, INC.                                             Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA
(Dollars in thousands)                                                
                                                 
    2016   2015
    Dec. 31
   Sep. 30
  Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
LOAN COMPOSITION                                                
Real estate mortgage:                                                
Commercial   $ 882,071     $ 893,807     $ 862,287     $ 878,822     $ 938,462     $ 869,250     $ 759,406     $ 759,676  
One-to-four family residential     199,123       193,678       183,693       158,078       161,958       95,906       85,338       86,343  
Real estate construction:                                                
Commercial     199,113       184,211       175,805       156,454       129,070       126,407       186,140       192,052  
One-to-four family residential     20,946       22,460       20,347       24,202       21,337       12,866       13,107       12,586  
Commercial     556,248       566,403       558,472       543,822       507,173       423,480       384,788       366,282  
Installment and consumer     19,631       19,553       20,773       20,506       21,429       20,185       20,651       21,306  
Total loans, including held for sale     1,877,132       1,880,112       1,821,377       1,781,884       1,779,429       1,548,094       1,449,430       1,438,245  
Less allowance for loan losses     (27,546 )     (28,452 )     (26,876 )     (27,168 )     (26,106 )     (26,593 )     (26,219 )     (27,250 )
Total loans, net   $ 1,849,586     $ 1,851,660     $ 1,794,501     $ 1,754,716     $ 1,753,323     $ 1,521,501     $ 1,423,211     $ 1,410,995  
LOANS BY SEGMENT                                                
Oklahoma banking****   $ 1,095,930     $ 1,117,716     $ 1,085,986     $ 1,060,482     $ 1,048,473     $ 832,282     $ 810,367     $ 814,949  
Texas banking     636,643       605,682       577,333       560,421       580,476       563,010       493,047       478,005  
Kansas banking     144,559       156,714       158,058       160,981       150,480       152,802       146,016       145,291  
Total loans   $ 1,877,132     $ 1,880,112     $ 1,821,377     $ 1,781,884     $ 1,779,429     $ 1,548,094     $ 1,449,430     $ 1,438,245  
NONPERFORMING LOANS BY TYPE                                                
Construction & development   $ 970     $ 1,073     $ 1,436     $ 1,444     $ 1,010     $ 391     $ 416     $ 392  
Commercial real estate     6,471       7,620       3,894       3,830       3,992       1,795       2,141       2,247  
Commercial     6,142       12,791       13,800       13,461       13,491       11,727       5,114       5,447  
One-to-four family residential     2,904       2,982       3,120       3,448       1,777       1,016       1,216       1,065  
Consumer     123       58       75       84       88       148       -       -  
Total nonperforming loans   $ 16,610     $ 24,524     $ 22,325     $ 22,267     $ 20,358     $ 15,077     $ 8,887     $ 9,151  
NONPERFORMING LOANS BY SEGMENT                                                
Oklahoma banking****   $ 12,006     $ 12,275     $ 9,268     $ 7,978     $ 6,948     $ 2,846     $ 1,670     $ 2,244  
Texas banking     4,140       11,805       12,586       13,521       12,450       11,025       5,353       5,264  
Kansas banking     464       444       471       768       960       1,206       1,864       1,643  
Total nonperforming loans   $ 16,610     $ 24,524     $ 22,325     $ 22,267     $ 20,358     $ 15,077     $ 8,887     $ 9,151  
OTHER REAL ESTATE BY TYPE                                                
Construction & development   $ -     $ 1,756     $ 1,962     $ 2,060     $ 2,060     $ 2,025     $ 2,035     $ 2,035  
Commercial real estate     350       350       160       214       214       249       358       220  
Total other real estate   $ 350     $ 2,106     $ 2,122     $ 2,274     $ 2,274     $ 2,274     $ 2,393     $ 2,255  
OTHER REAL ESTATE BY SEGMENT                                                
Oklahoma banking****   $ -     $ -     $ 220     $ 274     $ 274     $ 200     $ 200     $ -  
Texas banking     350       2,106       1,902       2,000       2,000       2,025       2,000       2,000  
Kansas banking     -       -       -       -       -       49       193       255  
Total other real estate   $ 350     $ 2,106     $ 2,122     $ 2,274     $ 2,274     $ 2,274     $ 2,393     $ 2,255  
                                                 
****Due to immateriality, Colorado banking is included within Oklahoma banking.
Continued                                                


SOUTHWEST BANCORP, INC.                                             Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA                                             Continued
(Dollars in thousands)                                                
                                                 
    2016
  2015
    Dec. 31
   Sep. 30
  Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
POTENTIAL PROBLEM LOANS BY TYPE                                                
Construction & development   $ 589     $ 588     $ -     $ -     $ -     $ -     $ -     $ 201  
Commercial real estate     13,831       12,212       33,472       36,216       26,981       22,362       20,375       24,672  
Commercial     27,621       30,555       29,537       29,931       9,879       7,366       14,519       14,016  
One-to-four family residential     1,980       2,119       1,353       2,275       2,285       79       80       81  
Consumer     2       2       2       38       10       -       -       -  
Total potential problem loans   $ 44,023     $ 45,476     $ 64,364     $ 68,460     $ 39,155     $ 29,807     $ 34,974     $ 38,970  
POTENTIAL PROBLEM LOANS BY SEGMENT                                                
Oklahoma banking****   $ 20,258     $ 21,780     $ 43,895     $ 46,102     $ 32,970     $ 23,597     $ 23,231     $ 26,713  
Texas banking     19,807       21,029       17,726       18,801       4,165       4,086       9,180       9,541  
Kansas banking     3,958       2,667       2,743       3,557       2,020       2,124       2,563       2,716  
Total potential problem loans   $ 44,023     $ 45,476     $ 64,364     $ 68,460     $ 39,155     $ 29,807     $ 34,974     $ 38,970  
ALLOWANCE ACTIVITY                                                
Balance, beginning of period   $ 28,452     $ 26,876     $ 27,168     $ 26,106     $ 26,593     $ 26,219     $ 27,250     $ 28,452  
Charge-offs     2,108       626       538       3,725       569       226       325       230  
Recoveries     2,531       489       236       412       648       577       430       915  
Net charge-offs (recoveries)     (423 )     137       302       3,313       (79 )     (351 )     (105 )     (685 )
Provision (credit) for loan losses     (1,329 )     1,713       10       4,375       (566 )     23       (1,136 )     (1,887 )
Balance, end of period   $ 27,546     $ 28,452     $ 26,876     $ 27,168     $ 26,106     $ 26,593     $ 26,219     $ 27,250  
NET CHARGE-OFFS BY TYPE                                                
Construction & development   $ -     $ -     $ -     $ -     $ -     $ (16 )   $ (15 )   $ 5  
Commercial real estate     (84 )     108       (44 )     (187 )     219       24       82       (118 )
Commercial     (357 )     (64 )     82       3,408       (286 )     (325 )     (52 )     (188 )
One-to-four family residential     (16 )     44       (12 )     41       (48 )     (68 )     (91 )     (331 )
Consumer     34       49       276       51       36       34       (29 )     (53 )
Total net charge-offs (recoveries) by type   $ (423 )   $ 137     $ 302     $ 3,313     $ (79 )   $ (351 )   $ (105 )   $ (685 )
NET CHARGE-OFFS BY SEGMENT                                                
Oklahoma banking****   $ (178 )   $ 34     $ 127     $ 458     $ 288     $ (86 )   $ 25     $ (309 )
Texas banking     (168 )     180       211       952       (415 )     (103 )     (72 )     (114 )
Kansas banking     (77 )     (77 )     (36 )     1,903       48       (162 )     (58 )     (262 )
Total net charge-offs (recoveries) by segment   $ (423 )   $ 137     $ 302     $ 3,313     $ (79 )   $ (351 )   $ (105 )   $ (685 )
                                                 
****Due to immateriality, Colorado banking is included within Oklahoma banking.
 


SOUTHWEST BANCORP, INC.                                             Table 7
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands, except per share)                                                
                                                 
    2016   2015
    Dec. 31    Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PER SHARE DATA                                                
Basic earnings per common share   $ 0.33   $ 0.23   $ 0.29   $ 0.10   $ 0.23   $ 0.22   $ 0.22   $ 0.24
Diluted earnings per common share     0.33     0.23     0.28     0.10     0.23     0.22     0.22     0.24
Common dividends declared per share     0.08     0.08     0.08     0.08     0.06     0.06     0.06     0.06
Book value per common share     15.35     15.19     15.06     14.81     14.80     14.57     14.38     14.26
Tangible book value per share*     14.50     14.33     14.20     13.97     13.98     14.49     14.29     14.17
COMMON STOCK                                                
Shares issued     21,230,714     21,223,895     21,223,613     21,225,034     21,138,028     19,901,336     19,900,855     19,900,350
Less treasury shares     2,555,987     2,538,510     2,472,830     1,939,989     1,131,226     868,617     867,310     867,310
Outstanding shares     18,674,727     18,685,385     18,750,783     19,285,045     20,006,802     19,032,719     19,033,545     19,033,040
Diluted outstanding shares     18,551,146     18,545,614     18,677,912     19,267,473     19,866,477     18,846,561     18,863,977     18,934,175
OTHER FINANCIAL DATA                                                
Investment securities   $ 436,661   $ 427,938   $ 422,296   $ 423,030   $ 412,128   $ 388,543   $ 373,260   $ 377,545
Loans held for sale     4,386     7,899     7,010     1,803     7,453     7,024     6,687     9,106
Portfolio loans     1,872,746     1,872,213     1,814,367     1,780,081     1,771,975     1,541,070     1,442,743     1,429,139
Total loans     1,877,132     1,880,112     1,821,377     1,781,884     1,779,428     1,548,094     1,449,430     1,438,245
Total assets     2,475,392     2,468,042     2,402,262     2,360,819     2,357,022     2,059,899     2,031,581     2,003,079
Total deposits     1,946,018     1,947,924     1,902,865     1,895,248     1,884,105     1,626,250     1,624,446     1,616,454
Other borrowings     183,814     173,971     153,568     117,763     110,927     96,801     75,839     58,578
Subordinated debentures     46,393     46,393     46,393     46,393     51,548     46,393     46,393     46,393
Total shareholders' equity     286,629     283,820     282,360     285,661     296,098     277,344     273,681     271,444
Mortgage servicing portfolio     460,646     453,988     443,568     434,340     432,318     422,845     415,961     407,903
INTANGIBLE ASSET DATA                                                
Goodwill   $ 13,545   $ 13,545   $ 13,467   $ 13,467   $ 13,467   $ 1,214   $ 1,214   $ 1,214
Core deposit intangible     2,299     2,438     2,584     2,734     2,894     342     405     467
Mortgage servicing rights     3,491     3,381     3,350     3,411     3,721     3,631     3,518     3,399
Total intangible assets   $ 19,335   $ 19,364   $ 19,401   $ 19,612   $ 20,082   $ 5,187   $ 5,137   $ 5,080
Intangible amortization expense   $ 275   $ 344   $ 350   $ 341   $ 330   $ 243   $ 243   $ 168
DEPOSIT COMPOSITION                                                
Non-interest bearing demand   $ 551,709   $ 550,121   $ 545,421   $ 552,499   $ 596,494   $ 526,159   $ 515,156   $ 506,952
Interest-bearing demand     152,656     146,583     160,886     168,210     151,015     114,877     131,547     140,659
Money market accounts     567,058     576,550     547,415     540,323     534,357     502,028     496,178     488,569
Savings accounts     56,410     54,849     55,209     56,235     56,333     36,163     35,647     34,413
Time deposits of $100,000 or more     360,307     347,976     323,137     314,496     311,538     238,318     233,105     227,426
Other time deposits     257,878     271,845     270,797     263,485     234,368     208,705     212,813     218,435
Total deposits**   $ 1,946,018   $ 1,947,924   $ 1,902,865   $ 1,895,248   $ 1,884,105   $ 1,626,250   $ 1,624,446   $ 1,616,454
OFFICES AND EMPLOYEES                                                
FTE Employees     387     393     410     411     412     358     361     360
Banking Centers     31     31     33     33     33     24     24     23
Assets per employee   $ 6,396   $ 6,280   $ 5,859   $ 5,744   $ 5,721   $ 5,754   $ 5,628   $ 5,564
____________________                                                
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits   $ 1,946,018   $ 1,947,924   $ 1,902,865   $ 1,895,248   $ 1,884,105   $ 1,626,250   $ 1,624,446   $ 1,616,454
Less:                                                
Brokered time deposits     64,652     65,398     61,709     55,901     39,797     10,086     7,683     7,694
Other brokered deposits     206,590     214,175     175,367     140,372     135,880     133,025     103,025     83,025
Non-brokered deposits   $ 1,674,776   $ 1,668,351   $ 1,665,789   $ 1,698,975   $ 1,708,428   $ 1,483,139   $ 1,513,738   $ 1,525,735
Plus:                                                
 Sweep repurchase agreements     45,814     46,971     42,568     42,763     37,273     50,801     50,839     33,578
Core funding   $ 1,720,590   $ 1,715,322   $ 1,708,357   $ 1,741,738   $ 1,745,701   $ 1,533,940   $ 1,564,577   $ 1,559,313
                                                 
Balance sheet amounts are as of period end unless otherwise noted.
 


SOUTHWEST BANCORP, INC.                                             Table 8
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands)                                                
                                                 
    2016
  2015
    Dec. 31
   Sep. 30
   Jun. 30
  Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PERFORMANCE RATIOS                                                
Return on average assets (annualized)     1.00 %     0.70 %     0.91 %     0.32 %     0.78 %     0.81 %     0.85 %     0.92 %
Return on average common equity (annualized)     8.59       5.97       7.67       2.56       6.14       5.94       6.11       6.78  
Return on average tangible common equity                                                
(annualized)*     9.10       6.33       8.13       2.71       6.46       5.97       6.14       6.82  
Net interest margin (annualized)     3.40       3.42       3.48       3.54       3.48       3.34       3.31       3.25  
Total dividends declared to net income     24.23       35.14       28.35       84.66       26.22       27.53       27.45       25.19  
Effective tax rate     37.38       34.45       34.70       35.19       35.96       35.84       34.51       37.49  
Efficiency ratio     64.34       66.09       65.70       67.48       72.17       68.16       71.83       71.69  
NONPERFORMING ASSETS                                                
Nonaccrual loans   $ 16,267     $ 24,109     $ 22,259     $ 22,161     $ 19,858     $ 15,076     $ 8,887     $ 9,151  
90 days past due and accruing     343       415       66       106       500       1       -       -  
Total nonperforming loans     16,610       24,524       22,325       22,267       20,358       15,077       8,887       9,151  
Other real estate     350       2,106       2,122       2,274       2,274       2,274       2,393       2,255  
Total nonperforming assets   $ 16,960     $ 26,630     $ 24,447     $ 24,541     $ 22,632     $ 17,351     $ 11,280     $ 11,406  
Potential problem loans   $ 44,023     $ 45,476     $ 64,364     $ 68,460     $ 39,155     $ 29,807     $ 34,974     $ 38,970  
ASSET QUALITY RATIOS                                                
Nonperforming assets to portfolio loans and                                                
other real estate     0.91 %     1.42 %     1.35 %     1.38 %     1.28 %     1.12 %     0.78 %     0.80 %
Nonperforming loans to portfolio loans     0.89       1.31       1.23       1.25       1.15       0.98       0.62       0.64  
Allowance for loan losses to portfolio loans     1.47       1.52       1.48       1.53       1.47       1.73       1.82       1.91  
Allowance for loan losses to                                                
nonperforming loans     165.84       116.02       120.39       122.01       128.23       176.38       295.03       297.78  
Net loan charge-offs to average portfolio                                                
loans (annualized)     (0.09 )     0.03       0.07       0.75       (0.02 )     (0.09 )     (0.03 )     (0.20 )
CAPITAL RATIOS                                                
Average total shareholders' equity to                                                
average assets     11.62 %     11.75 %     11.93 %     12.42 %     12.77 %     13.59 %     13.87 %     13.59 %
Leverage ratio     13.02       13.07       13.18       13.45       14.41       15.84       16.12       15.75  
Common equity tier 1 capital     12.36       11.95       12.22       12.13       13.21       14.57       15.30       15.51  
Tier 1 capital to risk-weighted assets     14.40       13.95       14.28       14.14       15.53       16.95       17.84       18.10  
Total capital to risk-weighted assets     15.66       15.21       15.53       15.39       16.79       18.21       19.09       19.36  
Tangible common equity to tangible assets***     11.01       10.92       11.16       11.49       11.95       13.40       13.40       13.48  
REGULATORY CAPITAL DATA                                                
Common equity tier 1 capital   $ 272,882     $ 268,045     $ 266,612     $ 270,564     $ 282,737     $ 275,350     $ 272,048     $ 269,007  
Tier I capital     317,882       313,045       311,612       315,326       332,468       320,350       317,048       314,007  
Total capital     345,597       341,196       338,968       343,287       359,300       344,095       339,412       335,734  
Total risk adjusted assets     2,207,508       2,243,895       2,182,051       2,230,326       2,140,344       1,889,892       1,777,618       1,734,401  
Average total assets     2,440,918       2,395,991       2,363,834       2,344,259       2,307,421       2,022,972       1,966,577       1,993,446  
                                                 
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity   $ 286,629     $ 283,820     $ 282,360     $ 285,661     $ 296,098     $ 277,344     $ 273,681     $ 271,444  
Less goodwill and core deposit intangible     15,844       15,983       16,051       16,201       16,361       1,556       1,619       1,681  
Tangible common equity   $ 270,785     $ 267,837     $ 266,309     $ 269,460     $ 279,737     $ 275,788     $ 272,062     $ 269,763  
Total assets   $ 2,475,392     $ 2,468,042     $ 2,402,262     $ 2,360,819     $ 2,357,022     $ 2,059,899     $ 2,031,581     $ 2,003,079  
Less goodwill and core deposit intangible     15,844       15,983       16,051       16,201       16,361       1,556       1,619       1,681  
Tangible assets   $ 2,459,548     $ 2,452,059     $ 2,386,211     $ 2,344,618     $ 2,340,661     $ 2,058,343     $ 2,029,962     $ 2,001,398  
Total shareholders' equity to total assets     11.58 %     11.50 %     11.75 %     12.10 %     12.56 %     13.46 %     13.47 %     13.55 %
Tangible common equity to tangible assets     11.01 %     10.92 %     11.16 %     11.49 %     11.95 %     13.40 %     13.40 %     13.48 %
                                                 
Balance sheet amounts and ratios are as of period end unless otherwise noted.
 

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

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