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

        Print
| Source: Southwest Bancorp, Inc.

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

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

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

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

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

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

Financial Overview

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

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

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

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

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

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

Fourth Quarter Results:

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

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

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

Provision for Loan Losses and Net Charge-offs: The provision for loan losses is the amount that is required to maintain the allowance for losses at an appropriate level based upon the inherent risks in the loan portfolio after the effects of net charge-offs or net recoveries for the period. The provision for loan losses was a credit (or negative provision) of $6.5 million for the fourth quarter of 2013, compared to a negative provision of $0.3 million for the third quarter of 2013 and a provision of $3.1 million for the fourth quarter of 2012. During the fourth quarter of 2013, recoveries totaled $5.8 million and charge-offs totaled $2.7 million, which had been substantially allowed for in the loan loss reserve. Therefore the fourth quarter of 2013 net recoveries totaled $3.1 million, or (0.96%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.02%) (annualized) of average portfolio loans for the third quarter of 2013, and net charge-offs of $0.1 million, or 0.03% (annualized) of average portfolio loans for the fourth quarter of 2012. 

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

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

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

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

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

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

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

Year-to-date Results:

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

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

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

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

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

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

Conference Call

Southwest will host a conference call to review these results on Wednesday, January 22, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Investors, news media, and others may access the call by telephone at 888-317-6016 (toll-free) or 412-317-6016 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest's website at www.oksb.com or http://services.choruscall.com/links/oksb140122.html. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10038921. Telephone replay access will be available until 9:00 a.m. Eastern Time on February 6, 2014.

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Bank SNB, National Association ("Bank SNB").  Through Bank SNB, commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services are offered from offices in Oklahoma, Texas, and Kansas. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2013, Southwest had total assets of $2.0 billion, deposits of $1.6 billion, and shareholders' equity of $259.2 million.

Southwest's area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, commercial lending, energy banking, and commercial real estate borrowers. The strategic focus on healthcare lending was established in 1974. Southwest and its subsidiary provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of December 31, 2013, approximately $417.4 million, or 33%, of noncovered loans were loans to individuals and businesses in the healthcare industry. Regular market reviews are conducted of current and potential healthcare lending business and the appropriate concentrations within healthcare based upon economic and regulatory conditions.

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

Caution About Forward-Looking Statements

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

These forward-looking statements include: 

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

These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate future results. For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors".

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

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of December 31, 2013 through the date its financial statements are filed with the Securities and Exchange Commission. The December 31, 2013 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

   
Financial Tables
   
Unaudited Financial Highlights Table 1
Unaudited Consolidated Statements of Financial Condition Table 2
Unaudited Consolidated Statements of Operations Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly Table 4
Unaudited Average Balances, Yields, and Rates-Year-to-date Table 5
Unaudited Quarterly Summary Loan Data Table 6
Unaudited Quarterly Summary Financial Data Table 7
Unaudited Quarterly Supplemental Analytical Data Table 8
   
 SOUTHWEST BANCORP, INC.   Table 1 
 UNAUDITED FINANCIAL HIGHLIGHTS   
 (Dollars in thousands, except per share)   
   Fourth Quarter   Third Quarter     Fourth Quarter   
 QUARTERLY HIGHLIGHTS  2013  % Change  2012  % Change 
 Operations           
 Net interest income   $ 16,637  $ 15,273  9 %  $17,285  (4)%
 Provision for loan losses   (6,502)  (329)  1,876  3,085  (311)
 Noninterest income   3,068  3,547  (14)  4,871  (37)
 Noninterest expense   15,065  13,019  16  17,653  (15)
 Income before taxes   11,142  6,130  82  1,418  686
 Taxes on income   4,310  2,330  85  446  866
 Net income   6,832  3,800  80  972  603
 Net income available to common shareholders   6,832  3,800  80  972  603
 Diluted earnings per share   0.34  0.19  79  0.05  580
 Balance Sheet           
 Total assets   1,981,423  1,972,367  0  2,122,255  (7)
 Loans held for sale   3,060  3,641  (16)  31,682  (90)
 Noncovered portfolio loans   1,251,416  1,284,004  (3)  1,321,346  (5)
 Covered portfolio loans   16,427  18,980  (13)  25,707  (36)
 Total deposits   1,584,086  1,583,791  0  1,709,578  (7)
 Total shareholders' equity   259,187  252,802  3  246,056  5
 Book value per common share   13.13  12.83  2  12.60  4
 Key Ratios           
 Net interest margin  3.42% 3.11%   3.41%  
 Efficiency ratio   76.45  69.18    79.68  
 Total capital to risk-weighted assets   21.59  21.52    21.56  
 Nonperforming loans to portfolio loans - noncovered   1.49  2.27    2.91  
 Shareholders' equity to total assets   13.08  12.82    11.59  
 Tangible common equity to tangible assets*   13.03  12.76    11.54  
 Return on average assets (annualized)   1.37  0.75    0.18  
 Return on average common equity (annualized)   10.59  5.99    1.56  
 Return on average tangible common equity (annualized)**   10.64  6.02    1.56  
 
   Year     
 YEAR-TO-DATE HIGHLIGHTS  2013 2012  % Change     
 Operations           
 Net interest income   $ 62,650  $ 76,563  (18)%    
 Provision for loan losses   (7,209)  3,107  (332)    
 Noninterest income   13,643  15,936  (14)    
 Noninterest expense   55,311  63,322  (13)    
 Income before taxes   28,191 26,070  8    
 Taxes on income   10,756 9,883  9    
 Net income   17,435 16,187  8    
 Net income available to common shareholders   17,435 12,446  40    
 Diluted earnings per share   0.88 0.64  38    
 Balance Sheet           
 Total assets   1,981,423  2,122,255  (7)    
 Loans held for sale   3,060  31,682  (90)    
 Noncovered portfolio loans   1,251,416  1,321,346  (5)    
 Covered portfolio loans   16,427  25,707  (36)    
 Total deposits   1,584,086  1,709,578  (7)    
 Total shareholders' equity   259,187  246,056  5    
 Book value per common share   13.13  12.60  4    
 Key Ratios           
 Net interest margin  3.19% 3.64%      
 Efficiency ratio (GAAP-based)   72.50  68.46      
 Total capital to risk-weighted assets   21.59  21.56      
 Nonperforming loans to portfolio loans - noncovered   1.49  2.91      
 Shareholders' equity to total assets   13.08  11.59      
 Tangible common equity to tangible assets*   13.03  11.54      
 Return on average assets (annualized)   0.86  0.72      
 Return on average common equity (annualized)   6.90  5.14      
 Return on average tangible common equity (annualized)**   6.94  5.16      
           
 Balance sheet amounts and ratios are as of period end unless otherwise noted. 
 * This is a Non-GAAP financial measure. Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure. 
 ** This is a Non-GAAP financial measure. 
 
 Please see accompanying tables for additional financial information. 
   
   
SOUTHWEST BANCORP, INC.  Table 2 
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
     
   December 31,   December 31, 
  2013 2012
Assets    
Cash and due from banks  $ 28,062  $ 45,045
Interest-bearing deposits 251,777 243,034
Cash and cash equivalents 279,839 288,079
Securities held to maturity (fair values of $12,115. and $13,659, respectively) 11,720 12,797
Securities available for sale (amortized cost of $385,423, and $358,317, respectively) 382,479 364,315
Loans held for sale 3,060 31,682
Noncovered loans receivable 1,251,416 1,321,346
Less: Allowance for loan losses (36,607) (46,494)
Net noncovered loans receivable 1,214,809 1,274,852
Covered loans receivable (includes loss share: $1,812 and $6,714, respectively) 16,427 25,707
Less: Allowance for loan losses (56) (224)
Net covered loans receivable 16,371 25,483
Net loans receivable 1,231,180 1,300,335
Accrued interest receivable 5,335 6,365
Income tax receivable  --  24,525
Premises and equipment, net 20,833 21,691
Noncovered other real estate 560 11,315
Covered other real estate 2,094 3,643
Goodwill 1,214 1,214
Other intangible assets, net 4,980 4,864
Other assets 38,129 51,430
Total assets  $ 1,981,423  $ 2,122,255
     
Liabilities    
Deposits:    
Noninterest-bearing demand  $ 444,796  $ 424,008
Interest-bearing demand  120,156  112,012
Money market accounts  439,981  423,417
Savings accounts  41,727  37,693
Time deposits of $100,000 or more  251,185  351,273
Other time deposits  286,241  361,175
Total deposits  1,584,086  1,709,578
Accrued interest payable  832  1,116
Income tax payable  78  --
Other liabilities  10,215  13,180
Other borrowings  80,632  70,362
Subordinated debentures  46,393  81,963
Total liabilities   1,722,236  1,876,199
     
Shareholders' equity    
Common stock -- $1 par value; 40,000,000 shares authorized; 19,732,926, and 19,529,705, shares issued and outstanding, respectively  19,733  19,530
Additional paid-in capital  99,937  99,705
Retained earnings  142,528  125,093
Accumulated other comprehensive income (loss)  (3,011)  1,728
Total shareholders' equity  259,187  246,056
Total liabilities and shareholders' equity  $ 1,981,423  $ 2,122,255
   
   
 SOUTHWEST BANCORP, INC.   Table 3 
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS 
 (Dollars in thousands, except per share) 
           
   For the three months ended   For the year 
   December 31,   September 30,   December 31,   ended December 31, 
  2013 2013 2012 2013 2012
 Interest income           
 Loans   $ 16,499  $ 16,242  $ 19,021  $ 66,162  $ 84,602
 Investment securities   1,747  1,623  1,796  6,655  7,814
 Other interest-earning assets   332  270  191  1,097  755
 Total interest income   18,578  18,135  21,008  73,914  93,171
           
 Interest expense           
 Interest-bearing deposits   1,148  1,317  2,014  5,559  9,703
 Other borrowings   225  225  224  892  895
 Subordinated debentures   568  1,320  1,485  4,813  6,010
 Total interest expense   1,941  2,862  3,723  11,264  16,608
           
 Net interest income   16,637  15,273  17,285  62,650  76,563
           
 Provision for loan losses   (6,502)  (329)  3,085  (7,209)  3,107
           
 Net interest income after provision for loan losses   23,139  15,602  14,200  69,859  73,456
           
 Noninterest income           
 Service charges and fees   2,635  2,589  2,971  10,491  11,559
 Gain on sales of loans   385  619  910  2,649  3,133
 Gain on investment securities   --  --  802  --  837
 Other noninterest income   48  339  188  503  407
 Total noninterest income  3,068  3,547  4,871  13,643  15,936
           
 Noninterest expense           
 Salaries and employee benefits   8,057  7,645  7,956  31,877  29,919
 Occupancy   2,805  2,721  2,672  10,779  10,581
 FDIC and other insurance   460  413  510  1,764  2,531
 Other real estate, net   330  (387)  2,867  (1,098)  6,565
 General and administrative   3,413  2,627  3,648  11,989  13,726
 Total noninterest expense   15,065  13,019  17,653  55,311  63,322
 Income before taxes   11,142  6,130  1,418  28,191  26,070
 Taxes on income   4,310  2,330  446  10,756  9,883
 Net income   $ 6,832  $ 3,800  $ 972  $ 17,435  $ 16,187
 Net income available to common shareholders   $ 6,832  $ 3,800  $ 972  $ 17,435  $ 12,446
           
 Basic earnings per common share   $ 0.34  $ 0.19  $ 0.05  $ 0.88  $ 0.64
 Diluted earnings per common share    0.34   0.19   0.05   0.88   0.64
 Common dividends declared per share   --  --  --  --  --
           
   
 SOUTHWEST BANCORP, INC.  Table 4
 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY 
 (Dollars in thousands)
             
   For the three months ended
  December 31, 2013 September 30, 2013
  Average   Average Average   Average
  Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets            
Noncovered loans   $ 1,270,307  $16,186 5.06%  $ 1,277,747  $15,837 4.92%
Covered loans  18,180  313  6.83  20,271  405  7.93
Investment securities  390,160  1,747  1.78  364,746  1,623  1.76
Other interest-earning assets  253,327  332  0.52  287,968  270  0.37
Total interest-earning assets  1,931,974  18,578  3.82  1,950,732  18,135  3.69
Other assets  47,369      57,622    
Total assets  $ 1,979,343      $ 2,008,354    
             
Liabilities and Shareholders' Equity            
Interest-bearing demand deposits  $ 111,744  $ 31 0.11%  $ 117,124  $ 35 0.12%
Money market accounts  426,090  182  0.17  416,839  182  0.17
Savings accounts  41,021  10  0.10  38,992  10  0.10
Time deposits  555,762  925  0.66  600,321  1,090  0.72
Total interest-bearing deposits  1,134,617  1,148  0.40  1,173,276  1,317  0.45
Other borrowings  78,933  225  1.13  75,822  225  1.18
Subordinated debentures  46,393  568  4.90  75,004  1,320  7.04
Total interest-bearing liabilities  1,259,943  1,941  0.61  1,324,102  2,862  0.86
             
Noninterest-bearing demand deposits  452,849      422,203    
Other liabilities  10,564      10,319    
Shareholders' equity  255,987      251,730    
Total liabilities and shareholders' equity  $ 1,979,343      $ 2,008,354    
             
Net interest income and spread    $16,637 3.21%    $15,273 2.83%
Net interest margin (1)     3.42%     3.11%
Average interest-earning assets to average interest-bearing liabilities 153.34%     147.32%    
             
 (1) Net interest margin = annualized net interest income / average interest-earning assets 
   
   
 SOUTHWEST BANCORP, INC.  Table 5
 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - YEAR-TO-DATE 
 (Dollars in thousands)
             
  For the year ended December 31, 
  2013 2012
  Average   Average Average   Average
  Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets            
Noncovered loans   $ 1,293,596  $ 64,555 4.99%  $ 1,536,494  $ 82,288 5.36%
Covered loans  21,405  1,607  7.51  30,824  2,314  7.51
Investment securities  377,460  6,655  1.76  350,021  7,814  2.23
Other interest-earning assets  272,940  1,097  0.40  187,478  755  0.40
Total interest-earning assets  1,965,401  73,914  3.76  2,104,817  93,171  4.43
Other assets  63,865      138,929    
Total assets  $ 2,029,266      $ 2,243,746    
             
Liabilities and Shareholders' Equity            
Interest-bearing demand deposits  $ 122,106  $ 148 0.12%  $ 114,974  $ 219 0.19%
Money market accounts  420,767  790  0.19  381,292  1,077  0.28
Savings accounts  39,397  44  0.11  35,741  53  0.15
Time deposits  617,824  4,577  0.74  842,979  8,354  0.99
Total interest-bearing deposits  1,200,094  5,559  0.46  1,374,986  9,703  0.71
Other borrowings  74,115  892  1.20  61,822  895  1.45
Subordinated debentures  71,243  4,813  6.76  81,963  6,010  7.33
Total interest-bearing liabilities  1,345,452  11,264  0.84  1,518,771  16,608  1.09
             
Noninterest-bearing demand deposits  420,347      396,091    
Other liabilities  10,925      45,368    
Shareholders' equity  252,542      283,516    
Total liabilities and shareholders' equity  $ 2,029,266      $ 2,243,746    
             
Net interest income and spread    $ 62,650 2.92%    $ 76,563 3.34%
Net interest margin (1)     3.19%     3.64%
Average interest-earning assets to average interest-bearing liabilities 146.08%     138.59%    
             
 (1) Net interest margin = annualized net interest income / average interest-earning assets 
   
   
 SOUTHWEST BANCORP, INC.   Table 6 
UNAUDITED QUARTERLY SUMMARY LOAN DATA
(Dollars in thousands, except per share)                
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
LOAN COMPOSITION                
Noncovered:                
Real estate mortgage:                
Commercial  $ 740,997  $ 743,858  $ 786,686  $ 819,873  $ 870,977  $ 898,453  $ 931,239  $ 996,486
One-to-four family residential  80,058  80,561  77,445  73,911  70,952  74,081  74,390  76,287
Real estate construction:                
Commercial  143,650  162,995  158,907  139,462  130,753  206,342  211,098  222,678
One-to-four family residential  4,646  4,464  5,241  5,015  3,656  3,438  4,184  3,814
Commercial  254,087  263,598  235,667  232,224  240,498  244,018  263,085  273,324
Installment and consumer:                
Guaranteed student loans  4,394  4,471  4,520  4,576  4,680  4,872  5,153  5,276
Other  26,644  27,698  27,977  28,553  31,512  32,710  33,555  31,766
Total noncovered loans, including held for sale  1,254,476  1,287,645  1,296,443  1,303,614  1,353,028  1,463,914  1,522,704  1,609,631
Less allowance for loan losses  (36,607)  (40,013)  (40,270)  (42,639)  (46,494)  (43,607)  (43,807)  (45,023)
Total noncovered loans, net  $ 1,217,869  $ 1,247,632  $ 1,256,173  $ 1,260,975  $ 1,306,534  $ 1,420,307  $ 1,478,897  $ 1,564,608
Covered:                
Real estate mortgage:                
Commercial  $ 11,282 $ 13,577 $ 15,452 $ 16,970 $ 18,298 $ 20,664 $ 21,472 $ 22,607
One-to-four family residential  3,930  4,084  4,253  4,458  4,881  5,059  5,432  5,766
Real estate construction:                
Commercial  198  312  320  367  382  419  1,627  2,344
Commercial  971  967  1,554  1,715  2,037  1,937  2,033  2,401
Installment and consumer  46  40  67  91  109  118  148  196
Total covered loans  16,427  18,980  21,646  23,601  25,707  28,197  30,712  33,314
Less allowance for loan losses  (56)  (68)  (82)  (214)  (224)  (138)  (91)  (60)
Total covered loans, net  $ 16,371  $ 18,912  $ 21,564  $ 23,387  $ 25,483  $ 28,059  $ 30,621  $ 33,254
LOANS BY SEGMENT                
Oklahoma banking $ 681,999 $ 681,749 $ 656,356 $ 628,747 $ 652,121 $ 704,916 $ 751,758 $ 810,217
Texas banking  366,697  414,433  444,327  495,815  520,481  560,197  588,370  616,455
Kansas banking  198,992  206,802  210,189  195,355  174,451  192,249  189,292  177,508
Subtotal  1,247,688  1,302,984  1,310,872  1,319,917  1,347,053  1,457,362  1,529,420  1,604,180
Secondary market  23,215  3,641  7,217  7,298  31,682  34,749  23,996  38,765
Total loans  $ 1,270,903  $ 1,306,625  $ 1,318,089  $ 1,327,215  $ 1,378,735  $ 1,492,111  $ 1,553,416  $ 1,642,945
NONPERFORMING LOANS BY TYPE                
Construction & development  $ 2,721  $ 5,659  $ 5,989  $ 6,409  $ 3,355  $ 3,436  $ 3,608  $ 3,768
Commercial real estate  6,564  12,203  12,325  13,362  18,337  20,576  4,932  6,821
Commercial  8,819  10,887  10,719  11,861  15,232  1,791  10,878  2,209
One-to-four family residential  456  396  418  651  1,310  949  1,125  1,508
Consumer  53  55  64  73  160  131  176  118
Total nonperforming loans - noncovered  $ 18,613  $ 29,200  $ 29,515  $ 32,356  $ 38,394  $ 26,883  $ 20,719  $ 14,424
NONPERFORMING LOANS BY SEGMENT                
Oklahoma banking  $ 5,547  $ 3,279  $ 1,678  $ 2,000  $ 2,956  $ 4,369  $ 2,979  $ 3,550
Texas banking  11,902  24,963  26,294  28,817  33,756  19,940  14,894  5,703
Kansas banking  1,164  958  1,543  1,539  1,682  2,574  2,846  5,171
Total nonperforming loans - noncovered  $ 18,613  $ 29,200  $ 29,515  $ 32,356  $ 38,394  $ 26,883  $ 20,719  $ 14,424
OTHER REAL ESTATE BY TYPE                
Construction & development  $ --   $ 676  $ 145  $ 215  $ 215  $ 445  $ 2,585  $ 3,542
Commercial real estate  560  --  --  9,207  11,003  14,130  14,129  14,854
One-to-four family residential  --  --  --  --  97  108  549  933
Total other real estate - noncovered  $ 560  $ 676  $ 145  $ 9,422  $ 11,315  $ 14,683  $ 17,263  $ 19,329
Continued                
   
 SOUTHWEST BANCORP, INC.   Table 6 
UNAUDITED QUARTERLY SUMMARY LOAN DATA  Continued 
(Dollars in thousands, except per share)  
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
OTHER REAL ESTATE BY SEGMENT                
Oklahoma banking  $ --   $ --   $ --   $ 1,980  $ 3,393  $ 6,178  $ 6,178  $ 6,273
Texas banking  --  --  --  7,227  7,227  7,227  9,162  9,846
Kansas banking  560  676  145  215  695  1,278  1,923  3,210
Total other real estate - noncovered  $ 560  $ 676  $ 145  $ 9,422  $ 11,315  $ 14,683  $ 17,263  $ 19,329
POTENTIAL PROBLEM LOANS BY TYPE                
Construction & development  21,501  22,222  20,745  19,968  22,077  22,565  25,563  33,907
Commercial real estate  68,951  62,475  62,166  60,329  58,549  53,725  71,537  67,654
Commercial  7,107  10,028  10,136  8,220  12,526  9,305  12,753  23,506
One-to-four family residential  488  414  1,071  1,129  1,147  1,157  1,230  1,253
Consumer  --  --  --  --  62  --  --  --
Total potential problem loans - noncovered  $ 98,047  $ 95,139  $ 94,118  $ 89,646  $ 94,361  $ 86,752  $ 111,083  $ 126,320
POTENTIAL PROBLEM LOANS BY SEGMENT                
Oklahoma banking  $ 29,005  $ 31,345  $ 31,495  $ 32,246  $ 30,875  $ 39,606  $ 48,038  $ 44,122
Texas banking  65,079  59,561  58,710  51,978  58,377  43,313  59,368  79,735
Kansas banking  3,963  4,233  3,913  5,422  5,109  3,833  3,677  2,463
Total potential problem loans - noncovered  $ 98,047  $ 95,139  $ 94,118  $ 89,646  $ 94,361  $ 86,752  $ 111,083  $ 126,320
LOANS OUT OF MARKET                
Net balance of loans out of market:                
Iowa  $ 22,316  $ 22,438  $ 22,537  $ 22,659  $ 22,826  $ 22,958  $ 23,022  $ 23,130
Arizona   19,458  30,516  31,564  33,017  40,326  41,255  39,449  34,749
North Carolina  13,070  10,161  300  407  65  604  682  771
Colorado  12,553  12,358  8,586  3,067  3,110  3,119  3,111  3,104
Kentucky  12,404  10,088  11,860  10,144  8,691  7,517  9,455  517
California  9,154  9,472  9,632  10,866  9,791  9,684  9,922  10,252
Mississippi  8,823  8,929  9,233  9,170  9,239  9,842  --  --
Tennessee  6,048  6,136  6,171  6,246  6,204  6,232  6,310  6,368
Ohio  3,549  3,294  4,759  4,132  10,438  11,182  11,502  12,650
Pennsylvania  3,109  3,299  3,441  44  --  --  --  --
Other   12,171  24,562  27,225  28,285  32,975  33,448  33,795  31,349
Total loans out of market  $ 122,655  $ 141,253  $ 135,308  $ 128,037  $ 143,665  $ 145,841  $ 137,248  $ 122,890
Nonperforming loans out of market:                
Arizona   $ 9,302  $ 11,205  $ 12,167  $ 13,419  $ 11,599  $ 250  $ 256  $ 261
New York  --  1,033  1,048  --  --  --  --  --
Florida  252  258  264  270  275  281  287  293
Colorado  --  --  --  131  131  131  131  131
Other  --  --  1  --  59  --  --  --
Total nonperforming out of market  $ 9,554  $ 12,496  $ 13,480  $ 13,820  $ 12,064  $ 662  $ 674  $ 685
Potential problem loans out of market:                
Iowa $ 11,568 $ 11,645 $ 11,719 $ 11,792 $ 11,868 $ 11,941 $ 11,970 $ 12,035
New Jersey  1,094  1,170  1,244  --  --  --  --  --
California  482  499  512  524  536  548  559  570
Florida  66  71  75  80  85  90  95  100
Arizona   --  --  --  --  9,037  --  --  --
Total potential problem out of market  $ 13,210  $ 13,385  $ 13,550  $ 12,396  $ 21,526  $ 12,579  $ 12,624  $ 12,705
Continued                
   
SOUTHWEST BANCORP, INC.   Table 6 
UNAUDITED QUARTERLY SUMMARY LOAN DATA  Continued 
(Dollars in thousands, except per share)
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
ALLOWANCE ACTIVITY                
Balance, beginning of period  $ 40,081  $ 40,352  $ 42,853  $ 46,718  $ 43,745  $ 43,898  $ 45,083  $ 44,684
Charge offs   2,681  600  2,072  4,651  722  2,653  2,229  1,936
Recoveries  5,765  658  447  288  610  4,226  1,012  619
Net charge offs (recoveries)  (3,084)  (58)  1,625  4,363  112  (1,573)  1,217  1,317
Provision for loan losses  (6,502)  (329)  (876)  498  3,085  (1,726)  32  1,716
Balance, end of period  $ 36,663  $ 40,081  $ 40,352  $ 42,853  $ 46,718  $ 43,745  $ 43,898  $ 45,083
NET CHARGE OFFS BY TYPE                
Construction & development  (4,845)  (20)  111  (19)  (22)  (1,823)  (85)  (42)
Commercial real estate  (62)  274  7  416  (18)  2,022  91  14
Commercial  1,883  (169)  1,085  3,751  239  (1,894)  1,228  1,211
One-to-four family residential  (40)  (165)  363  167  (40)  20  (105)  123
Consumer  (20)  22  59  48  (47)  102  88  11
Total net charge offs (recoveries) by type $ (3,084) $ (58)  $ 1,625  $ 4,363  $ 112 $ (1,573)  $ 1,217  $ 1,317
NET CHARGE OFFS BY SEGMENT                
Oklahoma banking $ (1,294) $ (203)  $ 200  $ 589  $ (261)  $ 5 $ (247)  $ 1,150
Texas banking  (2,314)  (80)  1,356  3,241  305  857  1,139  227
Kansas banking  524  225  69  533  68  (2,435)  325  (60)
Total net charge offs (recoveries) by segment $ (3,084) $ (58)  $ 1,625  $ 4,363  $ 112 $ (1,573)  $ 1,217  $ 1,317
                 
   
SOUTHWEST BANCORP, INC.   Table 7 
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands, except per share)
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
PER SHARE DATA                
Basic earnings per common share  $ 0.34  $ 0.19  $ 0.22  $ 0.12  $ 0.05  $ 0.22  $ 0.15  $ 0.21
Diluted earnings per common share  0.34  0.19  0.22  0.12  0.05  0.22  0.15  0.21
Book value per common share  13.13  12.83  12.67  12.72  12.60  12.59  12.35  12.21
Tangible book value per share*  13.07  12.77  12.60  12.66  12.54  12.53  12.29  12.15
COMMON STOCK                
Shares issued and outstanding  19,732,926  19,703,313  19,692,606  19,692,038  19,529,721  19,448,312  19,447,202  19,445,913
OTHER FINANCIAL DATA                
Investment securities  $ 394,199  $ 382,001  $ 372,403  $ 365,605  $ 377,112  $ 381,499  $ 340,378  $ 333,860
Loans held for sale  3,060  3,641  7,217  7,297  31,682  34,749  23,996  38,765
Noncovered portfolio loans  1,251,416  1,284,004  1,289,226  1,296,317  1,321,346  1,429,165  1,498,708  1,570,866
Total noncovered loans  1,254,476  1,287,645  1,296,443  1,303,614  1,353,028  1,463,914  1,522,704  1,609,631
Covered portfolio loans  16,427  18,980  21,646  23,601  25,707  28,197  30,712  33,314
Total assets  1,981,423  1,972,367  2,031,962  2,091,694  2,122,255  2,151,153  2,264,123  2,268,264
Total deposits  1,584,086  1,583,791  1,615,961  1,677,668  1,709,578  1,743,673  1,788,379  1,806,780
Other borrowings  80,632  78,663  74,334  70,872  70,362  66,694  68,477  55,139
Subordinated debentures  46,393  46,393  81,963  81,963  81,963  81,963  81,963  81,963
Total shareholders' equity  259,187  252,802  249,420  250,509  246,056  244,821  309,003  306,046
Mortgage servicing portfolio  390,732  383,400  368,825  356,032  343,397  329,184  305,465  301,378
INTANGIBLE ASSET DATA                
Goodwill  $ 1,214  $ 1,214  $ 1,214  $ 1,214  $ 1,214  $ 1,214  $ 1,214  $ 1,214
Core deposit intangible  2,058  2,185  2,306  2,424  2,543  2,664  2,785  2,906
Mortgage servicing rights  2,922  2,837  2,675  2,445  2,321  2,122  1,975  1,952
Total intangible assets  $ 6,194  $ 6,236  $ 6,195  $ 6,083  $ 6,078  $ 6,000  $ 5,974  $ 6,072
Intangible amortization expense  $ 278  $ 314  $ 313  $ 410  $ 283  $ 283  $ 282  $ 296
DEPOSIT COMPOSITION                
Non-interest bearing demand  $ 444,796  $ 436,904  $ 412,176  $ 416,979  $ 424,008  $ 429,407  $ 421,083  $ 395,141
Interest-bearing demand  120,156  106,176  138,502  125,914  112,012  113,677  119,929  119,759
Money market accounts  439,981  423,720  408,145  437,629  423,417  385,296  361,839  349,419
Savings accounts  41,727  39,727  38,611  39,733  37,693  36,461  35,610  34,679
Time deposits of $100,000 or more  251,185  270,916  295,179  317,270  351,273  389,969  431,317  464,876
Other time deposits  286,241  306,348  323,348  340,143  361,175  388,863  418,601  442,906
Total deposits**  $ 1,584,086  $ 1,583,791  $ 1,615,961  $ 1,677,668  $ 1,709,578  $ 1,743,673  $ 1,788,379  $ 1,806,780
OFFICES AND EMPLOYEES                
FTE Employees 402  407  408 412 422 429 430 435
Branches 23 23 22 22 22 23 23 23
Loan production offices 0 0 1 1 1 2 2 2
Assets per employee  $ 4,929  $ 4,846  $ 4,980  $ 5,077  $ 5,029  $ 5,014  $ 5,265  $ 5,214
____________________                
*This is a Non-GAAP based financial measure.                
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits  $ 1,584,086  $ 1,583,791  $ 1,615,961  $ 1,677,668  $ 1,709,578  $ 1,743,673  $ 1,788,379  $ 1,806,780
Less:                
Brokered time deposits  1,347  1,343  4,904  5,760  9,865  10,197  12,238  13,307
Other brokered deposits  3,423  3,423  3,422  3,422  3,421  4,421  4,420  6,529
Non-brokered deposits  $ 1,579,316  $ 1,579,025  $ 1,607,635  $ 1,668,486  $ 1,696,292  $ 1,729,055  $ 1,771,721  $ 1,786,944
Plus:                
 Sweep repurchase agreements  55,631  53,663  49,334  45,872  45,362  41,694  43,477  30,139
Core funding  $ 1,634,947  $ 1,632,688  $ 1,656,969  $ 1,714,358  $ 1,741,654  $ 1,770,749  $ 1,815,198  $ 1,817,083
                 
Balance sheet amounts are as of period end unless otherwise noted.
   
   
 SOUTHWEST BANCORP, INC.   Table 8 
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands, except per share)
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
PERFORMANCE RATIOS                
Return on average assets (annualized)  1.37 % 0.75% 0.87% 0.46% 0.18% 1.06% 0.73% 0.89%
Return on average common equity (annualized)  10.59  5.99  7.00  3.89  1.56  7.11  5.03  7.00
Return on average tangible common equity (annualized)*  10.64  6.02  7.03  3.90  1.56  7.15  5.06  7.03
Net interest margin (annualized)  3.42  3.11  3.07  3.16  3.41  3.59  3.71  3.82
Effective tax rate  38.68  38.01  33.74  43.88  31.45  39.73  37.12  37.50
Efficiency ratio  76.45  69.18  68.93  75.16  79.68  64.47  71.82  58.73
NONPERFORMING ASSETS                
Noncovered:                
Nonaccrual loans  $ 18,560  $ 29,198  $ 29,513  $ 32,356  $ 35,104  $ 26,493  $ 20,474  $ 14,324
90 days past due and accruing   53  2  2  --  3,290  390  245  100
Total nonperforming loans  18,613  29,200  29,515  32,356  38,394  26,883  20,719  14,424
Other real estate  560  676  145  9,422  11,315  14,683  17,263  19,329
Total nonperforming assets  $ 19,173  $ 29,876  $ 29,660  $ 41,778  $ 49,709  $ 41,566  $ 37,982  $ 33,753
Performing restructured  $ 28  $ 527  $ 993  $ 512  $ 290  $ 281  $ 328  $ 1,700
Potential problem loans  $ 98,047  $ 95,139  $ 94,118  $ 89,646  $ 94,361  $ 86,752  $ 111,083  $ 126,320
Covered:                
Nonaccrual loans  $ 1,259  $ 3,480  $ 3,062  $ 2,873  $ 3,595  $ 4,809  $ 6,067  $ 7,015
90 days past due and accruing   --  --  --  --  --  353  --  --
Total nonperforming loans  1,259  3,480  3,062  2,873  3,595  5,162  6,067  7,015
Other real estate  2,094  1,017  1,666  2,243  3,643  4,142  3,825  4,694
Total nonperforming assets  $ 3,353  $ 4,497  $ 4,728  $ 5,116  $ 7,238  $ 9,304  $ 9,892  $ 11,709
Performing restructured  $ 1,600  $ 1,733  $ 1,800  $ 1,854  $ 2,523  $ 2,548  $ 1,701  $ -- 
Potential problem loans  $ 1,703  $ 2,030  $ 3,352  $ 3,986  $ 3,155  $ 1,621  $ 1,573  $ 553
ASSET QUALITY RATIOS                
Net loan charge-offs to average portfolio loans (annualized)  (0.96)%  (0.02)% 0.50% 1.32% 0.03%  (0.42)% 0.31% 0.32%
Noncovered:                
Nonperforming assets to portfolio loans and other real estate 1.53% 2.33% 2.30% 3.20% 3.73% 2.88% 2.51% 2.12%
Nonperforming loans to portfolio loans  1.49  2.27  2.29  2.50  2.91  1.88  1.38  0.92
Allowance for loan losses to portfolio loans  2.93  3.12  3.12  3.29  3.52  3.05  2.92  2.87
Allowance for loan losses to nonperforming loans  196.67  137.03  136.44  131.78  121.10  162.21  211.43  312.14
Covered:                
Nonperforming assets to portfolio loans and other real estate 18.10% 22.49% 20.28% 19.80% 24.66% 28.77% 28.64% 30.81%
Nonperforming loans to portfolio loans  7.66  18.34  14.15  12.17  13.98  18.31  19.75  21.06
Allowance for loan losses to portfolio loans  0.34  0.36  0.38  0.91  0.87  0.49  0.30  0.18
Allowance for loan losses to nonperforming loans  4.45  1.95  2.68  7.45  6.23  2.67  1.50  0.86
CAPITAL RATIOS                
Average total shareholders' equity to average assets 12.93% 12.53% 12.41% 11.92% 11.61% 12.31% 13.56% 12.99%
Leverage ratio  14.86  14.78  16.10  15.59  15.01  14.49  16.84  16.20
Tier 1 capital to risk-weighted assets  20.28  20.22  22.48  22.25  20.28  19.36  22.24  21.21
Total capital to risk-weighted assets  21.59  21.52  23.78  23.54  21.56  20.64  23.52  22.49
Tangible common equity to tangible assets***  13.03  12.76  12.22  11.93  11.54  11.33  10.56  10.42
Continued                
   
   
 SOUTHWEST BANCORP, INC.   Table 8 
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA  Continued 
(Dollars in thousands, except per share)
  2013 2012
   Dec. 31   Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
REGULATORY CAPITAL DATA                
Tier I capital  $ 292,051  $ 296,488  $ 326,831  $ 324,659  $ 319,665  $ 317,665  $ 382,263  $ 378,949
Total capital 310,867 315,570 345,717 343,562 339,964 338,739 404,252 401,808
Total risk adjusted assets 1,439,934 1,466,672 1,453,878 1,459,465 1,576,521 1,641,121 1,719,058 1,786,282
Average total assets 1,964,920 2,006,525 2,030,064 2,082,789 2,130,035 2,192,579 2,269,640 2,339,784
____________________                
*This is a Non-GAAP based financial measure.                
***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity  $ 259,187  $ 252,802  $ 249,420  $ 250,509  $ 246,056  $ 244,821  $ 309,003  $ 306,046
Less:                
Goodwill  1,214  1,214  1,214  1,214  1,214  1,214  1,214  1,214
Preferred stock  --  --  --  --  --  --  68,837  68,644
Tangible common equity  $ 257,973  $ 251,588  $ 248,206  $ 249,295  $ 244,842  $ 243,607  $ 238,952  $ 236,188
Total assets  $ 1,981,423  $ 1,972,367  $ 2,031,962  $ 2,091,694  $ 2,122,255  $ 2,151,153  $ 2,264,123  $ 2,268,264
Less goodwill  1,214  1,214  1,214  1,214  1,214  1,214  1,214  1,214
Tangible assets  $ 1,980,209  $ 1,971,153  $ 2,030,748  $ 2,090,480  $ 2,121,041  $ 2,149,939  $ 2,262,909  $ 2,267,050
Tangible common equity to tangible assets 13.03% 12.76% 12.22% 11.93% 11.54% 11.33% 10.56% 10.42%
                 
Balance sheet amounts and ratios are as of period end unless otherwise noted.            
For additional information:
Mark W. Funke
President & CEO
Joe T. Shockley, Jr.
EVP & CFO
(405) 372-2230