Southwest Bancorp, Inc. Reports Another Quarter of Solid Results for Third Quarter 2015 and Announces Quarterly Dividend

STILLWATER, Okla., Oct. 20, 2015 (GLOBE NEWSWIRE) — Southwest Bancorp, Inc. (NASDAQ:OKSB), (“Southwest”), today reported net income for the third quarter of 2015 of $4.1 million, or $0.22 per diluted share, compared to $5.3 million, or $0.27 per diluted share, for the third quarter of 2014, which included a negative (credit) provision for loan losses of $2.9 million. Net income for the nine months ended September 30, 2015 totaled $12.8 million, or $0.68 per diluted share, compared to $15.1 million, or $0.77 per diluted share, for the nine months ended September 30, 2014. Included in the prior year’s results was a pre-tax net gain on sale of bank branches of $4.4 million and a negative (credit) provision for loan losses of $4.2 million, versus a negative (credit) provision for loan losses of $3.0 million for the first nine months of 2015.

Southwest also announced that its board of directors has approved a quarterly cash dividend of $0.06 per share payable November 13, 2015 to shareholders of record as of October 30, 2015.

Mark Funke, President and CEO, stated, “The third quarter was a busy and successful quarter for Bank SNB.  We received regulatory approval to acquire First Commercial Bancshares, Inc. and completed the acquisition in early October.  This expands our presence in the Oklahoma City metro area with five additional branches, increasing our total to ten. It also adds Colorado to our geographic footprint with three branches in Denver and one in Colorado Springs. 

“The financial results for the third quarter reflect solid earnings, improved efficiency, and strong loan growth. Our efforts produced several highlights:

  • Received regulatory approval to acquire Edmond-based First Commercial Bancshares, Inc. (“FCBI”) and closed the merger on October 9, 2015.
  • Loan growth was $98.7 million, or 7%, for the third quarter and $148.1 million, or 11%, for the first nine months of 2015. We have had seven consecutive quarters of loan growth.
  • The quarterly net interest margin improved to 3.34% at September 30, 2015 compared to 3.31% at June 30, 2015. 
  • The quarterly efficiency ratio improved to 68.25% for the third quarter, reflecting management’s commitment to improved operating performance.

“Our financial results and the strong loan growth for the third quarter reflect the excellent work of our banking associates. We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing our expenses.”

Southwest’s share repurchase program, approved in August of 2014, authorized the repurchase of up to 5.0% or 990,000 shares of its outstanding common stock, par value $1.00 per share.  As of September 30, 2015, Southwest had repurchased 867,310 shares for a total of $14.3 million.  During the third quarter of 2015, no shares were repurchased due to trade restrictions pursuant to the pending acquisition of FCBI. On August 14, 2015, this share repurchase plan expired.  On February 24, 2015, Southwest’s board of directors authorized a second share repurchase program of up to another 5.0% of its outstanding common stock, or approximately 950,000 shares, which became effective on August 14, 2015, immediately following the expiration of the 2014 program.

Financial Overview

Condition:  As of September 30, 2015, total assets were $2.1 billion, an increase of $28.3 million from June 30, 2015.  As of September 30, 2015, total loans were $1.5 billion and investment securities were $388.5 million, an increase of $98.7 million and an increase of $15.3 million from the prior quarter end, respectively.  Consequently, cash and cash equivalents at September 30, 2015 were $68.6 million, down $88.0 million from June 30, 2015. 

At September 30, 2015, the allowance for loan losses was $26.6 million, an increase of $0.4 million when compared to June 30, 2015 and a decrease of $4.3 million when compared to September 30, 2014.  The allowance for loan losses to portfolio loans was 1.73% as of September 30, 2015, compared to 1.82% as of June 30, 2015 and 2.27% as of September 30, 2014.  The allowance for loan losses to nonperforming loans was 176.38% as of September 30, 2015, compared to 295.03% as of June 30, 2015 and 205.29% as of September 30, 2014.   

Nonperforming loans were $15.1 million at September 30, 2015, an increase of $6.2 million from June 30, 2015, and remained relatively flat from September 30, 2014.  Other real estate at September 30, 2015 was $2.3 million, a decrease of $0.1 million from June 30, 2015, and a decrease of $1.2 million when compared to September 30, 2014.  Nonperforming assets were $17.4 million, or 1.12% of portfolio loans and other real estate, as of September 30, 2015, compared to $11.3 million, or 0.78% of portfolio loans and other real estate, as of June 30, 2015, and $18.5 million, or 1.36% of portfolio loans and other real estate, as of September 30, 2014.

Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 89% and 92% of total funding as of September 30, 2015 and June 30, 2015, respectively.  Wholesale funding, including Federal Home Loan Bank borrowings, federal funds purchased, and brokered deposits, accounted for 11% and 8% of total funding at September 30, 2015 and June 30, 2015, respectively.  See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.

The capital ratios of Southwest and Bank SNB as of September 30, 2015 exceeded the criteria for regulatory classification as “well-capitalized”.  Southwest’s total regulatory capital was $344.1 million, for a total risk-based capital ratio of 18.21%, Common Equity Tier 1 capital was $275.4 million, for a Common Equity Tier 1 ratio of 14.57%, and Tier 1 capital was $320.4 million, for a Tier 1 risk-based capital ratio of 16.95%.  Bank SNB had total regulatory capital of $296.9 million, for a total risk-based capital ratio of 15.77% and Common Equity Tier 1 and Tier 1 capital of $273.2 million, for a Common Equity Tier 1 and Tier 1 ratio of 14.51%.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Third Quarter Results:

Summary:  For the third quarter of 2015, net income was $4.1 million, compared to $4.2 million for the second quarter of 2015 and $5.3 million for the third quarter of 2014. 

The $0.04 million decrease in net income compared to the second quarter of 2015 was primarily due to a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of $1.1 million, a $0.1 million increase in noninterest expense, and an increase in taxes of $0.1 million, offset in part by a $0.7 million increase in net interest income and a $0.6 million increase of noninterest income.

The $1.2 million decrease in our net income compared to the third quarter of 2014 was primarily the result of a small loan provision for loan losses versus a negative provision for loan losses in the previous quarter of $2.9 million and a $0.7 million increase in noninterest expense, offset in part by a $0.7 million increase in net interest income, a $0.9 million increase in noninterest income, and a $0.9 million decrease in taxes.

Net Interest Income:  Net interest income totaled $16.5 million for the third quarter of 2015, compared to $15.8 million for the second quarter of 2015 and the third quarter of 2014.  Net interest margin was 3.34% for the third quarter of 2015, compared to 3.31% for the second quarter of 2015 and 3.44% for the third quarter of 2014. Loans (including loans held for sale) for the third quarter of 2015 increased $98.7 million, or 7%, when compared to June 30, 2015, and $180.7 million, or 13%, when compared to September 30, 2014.

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 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 provision of $0.02 million for the third quarter of 2015, compared to a negative provision of $1.1 million for the second quarter of 2015, and a negative provision of $2.9 million for the third quarter of 2014. The $98.7 million loan growth in the third quarter of 2015 accounts for $1.3 million of the excess provision for loan losses. During the third quarter of 2015, net recoveries totaled $0.4 million, or (0.09%) (annualized) of average portfolio loans, compared to net recoveries of $0.1 million, or (0.03%) (annualized) of average portfolio loans for the second quarter of 2015 and net recoveries of $0.7 million, or (0.21%) (annualized) of average portfolio loans for the third quarter of 2014. 

Noninterest Income:  Noninterest income totaled $4.0 million for the third quarter of 2015, compared to $3.4 million for the second quarter of 2015 and $3.1 million for the third quarter of 2014. 

The $0.6 million increase from the second quarter of 2015 is primarily the result of a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income, offset in part by a $0.1 million decrease in gain on sale of mortgage loans, and a $0.1 million decrease in gain on sale of securities. 

The $0.9 million increase from the third quarter of 2014 is primarily the result of a $0.2 million increase in the gain on sale of mortgage loans and a $0.8 million increase in other noninterest income, primarily from customer risk management interest rate swap income and interest income on bank owned life insurance, offset in part by a $0.1 million decrease in service charges and fees.

Noninterest Expense:  Noninterest expense totaled $14.1 million for the third quarter of 2015, compared to $14.0 million for the second quarter of 2015 and $13.4 million for the third quarter of 2014. 

The $0.1 million increase in noninterest expense from the second quarter of 2015 was primarily due to a $0.1 million increase in each personnel expense, occupancy expense, and data processing, offset in part by a $0.1 million decrease in other real estate, and a $0.1 million decrease in general and administrative expense primarily related to the decrease in provision for unfunded loan commitments, and also included $0.3 million in FCBI acquisition expenses and $0.1 million in swap fee consulting expense, offset in part by the reversal of a prior accrual of a contingent liability.

The $0.7 million increase in noninterest expense from the third quarter of 2014 consisted of a $0.6 million increase in personnel expense, a $0.1 million increase in data processing, a $0.2 million increase in other real estate, and a $0.3 million increase in the provision for unfunded loan commitments, offset in part by a $0.6 million decrease in general and administrative expense, which includes primarily legal, accounting, and marketing expenses.

Income Tax:  Income tax expense totaled $2.3 million for the third quarter of 2015, compared to $2.2 million for the second quarter of 2015 and $3.2 million for the third quarter of 2014.  The income tax expense fluctuates in relation to pre-tax income levels.  The third quarter of 2015 effective tax rate was 35.84%, compared to 34.51% for the second quarter of 2015 and 37.49% for the third quarter of 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

Year-to-date Results:

Summary:  Net income was $12.8 million for the nine months ended September 30, 2015, compared to $15.1 million for the nine months ended September 30, 2014.  The $2.3 million decrease in net income from 2014 is the result of a $0.5 million decrease in net interest income, a $1.2 million decrease in the negative provision for loan losses, and a $4.1 million decrease in noninterest income, which is primarily the pre-tax net gain of $4.4 million on the sales of community bank branches in the second quarter of 2014, offset in part by a $1.7 million decrease in noninterest expense, primarily due to decreased general and administrative expense and other real estate expenses, and a $1.8 million decrease in income tax.

Net Interest Income:  Net interest income totaled $47.9 million for the first nine months of 2015, compared to $48.4 million for the first nine months of 2014, a decrease of $0.5 million.  Year-to-date net interest margin was 3.30%, compared to 3.43% for 2014. Included in interest income for the first nine months of 2014 was $0.8 million due to accelerated discount accretion attributable to the sale of loans covered by a loss share agreement and $0.6 million due to the interest recognition resulting from loans returning to accrual status.  The net effect of these adjustments on the net interest margin was a 9 basis point increase for the first nine months of 2014.  With the rate environment remaining low, earning assets are repricing at lower rates.

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 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) of $3.0 million for the first nine months of 2015, compared to a negative provision of $4.2 million for the first nine months of 2014. Net recoveries totaled $1.1 million, or (0.11%) (annualized) of average portfolio loans year-to-date as of September 30, 2015, compared to net charge-offs of $1.5 million, or 0.15% (annualized) of average portfolio loans for the same period in 2014.  

Noninterest Income:  Noninterest income totaled $10.3 million for the first nine months of 2015, compared to $14.4 million for the first nine months of 2014.  The decrease consists of a $0.4 million decrease in service charges and fees, the $4.4 million recognized as the pre-tax net gain on the sales of the community bank branches in the second quarter of 2014, and a $0.6 million decrease in the gain on sale of investment securities, due to the gain on the sale of a stock investment that was acquired in a prior year repossession in 2014, offset in part by a $0.5 million increase in gains on sales of mortgage loans and a $0.8 million increase in other noninterest income, which includes customer risk management interest rate swap income and interest income on bank owned life insurance. 

Noninterest Expense:  Noninterest expense totaled $41.1 million for the first nine months of 2015, compared to $42.8 million for the first nine months of 2014.  The decrease consists of a $0.2 million decrease in other real estate expense and a $1.7 million decrease in other general and administrative expenses, which primarily includes legal, marketing, travel, consulting, and is offset by $0.5 million in FCBI acquisition expenses. These decreases are offset in part by a $0.2 million increase in employee benefit expenses and a $0.1 million increase in the provision for unfunded loan commitments.

Income Tax:  Income tax expense totaled $7.2 million for the first nine months of 2015, compared to $9.1 million for the first nine months of 2014.  The income tax expense fluctuates in relation to pre-tax income levels.  The year-to-date effective tax rate was 36.02% as of September 30, 2015, compared to 37.50% as of September 30, 2014. The decline in the effective tax rate includes the impact of an increase in tax exempt income, as a percentage of pre-tax income.

Conference Call

Southwest will host a conference call to review these results on Wednesday, October 21, 2015 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).  Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN:  http://dpregister.com/10073037.  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/oksb151021.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 10073037.  Telephone replay access will be available until 9:00 a.m. Eastern Time on November 21, 2015.

Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”).  Bank SNB offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado.  Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company.  At September 30, 2015, Southwest had total assets of approximately $2.1 billion, deposits of $1.6 billion, and shareholders’ equity of $277.3 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 September 30, 2015, approximately $429.5 million, or 28%, of loans were loans to individuals and businesses in the healthcare industry.  Regular market reviews are conducted of (i) current and potential healthcare lending business, and (ii) the appropriate concentrations within healthcare based upon economic and regulatory conditions.

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

Caution About Forward-Looking Statements

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

These forward-looking statements include: 

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

These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest’s past growth and performance do not necessarily indicate future results.  For other factors, risks, and uncertainties that could cause actual results to differ materially from estimates and projections contained in forward-looking statements, please read Southwest’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2014.  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 September 30, 2015 through the date its financial statements are filed with the Securities and Exchange Commission.  The September 30, 2015 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

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

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

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

 

                           
SOUTHWEST BANCORP, INC.                         Table 1
UNAUDITED FINANCIAL HIGHLIGHTS                          
(Dollars in thousands, except per share)                          
                           
    Third Quarter Second Quarter     Third Quarter
QUARTERLY HIGHLIGHTS   2015   % Change   2014   % Change
Operations                          
Net interest income   $   16,496     $   15,791       4 %   $   15,837       4 %
Provision (credit) for loan losses       23         (1,136 )     (102 )       (2,897 )     (101 )
Noninterest income       4,029         3,409       18         3,084       31  
Noninterest expense       14,077         13,982       1         13,358       5  
Income before taxes       6,425         6,354       1         8,460       (24 )
Taxes on income       2,303         2,193       5         3,172       (27 )
Net income       4,122         4,161       (1 )       5,288       (22 )
Diluted earnings per share       0.22         0.22               0.27       (19 )
Balance Sheet                          
Total assets       2,059,899         2,031,581       1         1,900,948       8  
Loans held for sale       7,024         6,687       5         4,368       61  
Portfolio loans       1,541,070         1,442,743       7         1,363,020       13  
Total deposits       1,626,250         1,624,446       0         1,494,946       9  
Total shareholders’ equity       277,344         273,681       1         271,966       2  
Book value per common share       14.57         14.38       1         13.90       5  
Key Ratios                          
Net interest margin       3.34 %       3.31 %           3.44 %    
Efficiency ratio       68.25         72.43             70.60      
Total capital to risk-weighted assets       18.21         19.09             21.34      
Nonperforming loans to portfolio loans       0.98         0.62             1.10      
Shareholders’ equity to total assets       13.46         13.47             14.31      
Tangible common equity to tangible assets*       13.40         13.40             14.23      
Return on average assets (annualized)       0.81         0.85             1.12      
Return on average common equity (annualized)       5.94         6.11             7.69      
Return on average tangible common equity (annualized)**       5.97         6.14             7.72      
                           
    Nine Months          
YEAR-TO-DATE  HIGHLIGHTS   2015   2014   % Change          
Operations                          
Net interest income   $   47,897     $   48,412       (1 )%          
Provision (credit) for loan losses       (3,000 )       (4,238 )     (29 )          
Noninterest income       10,278         14,355       (28 )          
Noninterest expense       41,141         42,797       (4 )          
Income before taxes       20,034         24,208       (17 )          
Taxes on income       7,216         9,077       (21 )          
Net income       12,818         15,131       (15 )          
Net income available to common shareholders       12,818         15,131       (15 )          
Diluted earnings per share       0.68         0.77       (12 )          
Balance Sheet                          
Total assets       2,059,899         1,900,948       8            
Loans held for sale       7,024         4,368       61            
Portfolio loans       1,541,070         1,363,020       13            
Total deposits       1,626,250         1,494,946       9            
Total shareholders’ equity       277,344         271,966       2            
Book value per common share       14.57         13.90       5            
Key Ratios                          
Net interest margin       3.30 %       3.43 %              
Efficiency ratio       70.33         68.18                
Total capital to risk-weighted assets       18.21         21.34                
Nonperforming loans to portfolio loans       0.98         1.10                
Shareholders’ equity to total assets       13.46         14.31                
Tangible common equity to tangible assets*       13.40         14.23                
Return on average assets (annualized)       0.86         1.04                
Return on average common equity (annualized)       6.27         7.54                
Return on average tangible common equity (annualized)**       6.31         7.62                
                                   
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)                
                 
  September 30,   December 31,   September 30,
  2015   2014   2014
Assets                
Cash and due from banks $   25,198     $   19,705     $   18,498  
Interest-bearing deposits     43,447         121,231         111,605  
Cash and cash equivalents     68,645         140,936         130,103  
Securities held to maturity (fair values of $13,462, $12,880 and $11,265, respectively)     12,954         12,362         10,663  
Securities available for sale (amortized cost of $373,219, $352,275 and $359,042, respectively)     375,589         353,231         359,944  
Loans held for sale     7,024         1,485         4,368  
Loans receivable (includes loss share of $0 in all periods)     1,541,070         1,398,506         1,363,020  
Less: Allowance for loan losses     (26,593 )       (28,452 )       (30,917 )
Net loans receivable     1,514,477         1,370,054         1,332,103  
Accrued interest receivable     4,872         4,723         4,952  
Non-hedge derivative asset     2,344         787         166  
Premises and equipment, net     18,180         18,588         18,986  
Other real estate     2,274         3,097         3,448  
Goodwill     1,214         1,214         1,214  
Other intangible assets, net     3,973         3,927         3,866  
Other assets     48,353         31,630         31,135  
Total assets $   2,059,899     $   1,942,034     $   1,900,948  
                 
Liabilities                
Deposits:                
Noninterest-bearing demand $   526,159     $   496,128     $   445,148  
Interest-bearing demand     114,877         122,342         104,807  
Money market accounts     502,028         461,679         477,614  
Savings accounts     36,163         32,795         33,398  
Time deposits of $100,000 or more     238,318         198,952         203,090  
Other time deposits     208,705         222,103         230,889  
Total deposits     1,626,250         1,533,999         1,494,946  
Accrued interest payable     778         769         771  
Non-hedge derivative liability     2,344         787         166  
Other liabilities     9,989         9,920         10,822  
Other borrowings     96,801         79,380         75,884  
Subordinated debentures     46,393         46,393         46,393  
Total liabilities      1,782,555         1,671,248         1,628,982  
                 
Shareholders’ equity                
Common stock – $1 par value; 40,000,000 shares authorized;                
19,901,336, 19,810,877, and 19,793,623 shares issued, respectively     19,901         19,811         19,794  
Additional paid-in capital     101,611         101,245         100,971  
Retained earnings     169,825         160,427         155,290  
Accumulated other comprehensive income (loss)     372         (395 )       (411 )
Treasury stock, at cost, 868,617, 617,818 and 223,005 shares, respectively     (14,365 )       (10,302 )       (3,678 )
Total shareholders’ equity     277,344         270,786         271,966  
Total liabilities and shareholders’ equity $   2,059,899     $   1,942,034     $   1,900,948  

SOUTHWEST BANCORP, INC.                           Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS                            
(Dollars in thousands)                            
                             
  For the three months ended   For the nine months
  September 30,   June 30,   September 30,   ended September 30,
  2015   2015   2014   2015   2014
Interest income                            
Loans $ 16,510   $   15,839     $   15,683     $   47,919     $   47,801  
Investment securities   1,443       1,328         1,534         4,120         4,812  
Other interest-earning assets   267       288         274         860         963  
Total interest income   18,220       17,455         17,491         52,899         53,576  
                             
Interest expense                            
Interest-bearing deposits   905       862         864         2,602         2,820  
Other borrowings   255       241         227         723         675  
Subordinated debentures   564       561         563         1,677         1,669  
Total interest expense   1,724       1,664         1,654         5,002         5,164  
                             
Net interest income   16,496       15,791         15,837         47,897         48,412  
                             
Provision (credit) for loan losses   23       (1,136 )       (2,897 )       (3,000 )       (4,238 )
                             
Net interest income after provision for loan losses   16,473       16,927         18,734         50,897         52,650  
                             
Noninterest income                            
Service charges and fees   2,441       2,450         2,492         7,319         7,696  
Gain on sale of branches, net                                 4,378  
Gain on sales of mortgage loans   565       621         382         1,534         1,069  
Gain on sale/call of investment securities, net   19       138                 162         764  
Other noninterest income   1,004       200         210         1,263         448  
Total noninterest income   4,029       3,409         3,084         10,278         14,355  
                             
Noninterest expense                            
Salaries and employee benefits   8,374       8,289         7,804         24,577         24,402  
Occupancy   2,288       2,201         2,269         6,773         6,805  
Data processing   475       410         343         1,331         1,359  
FDIC and other insurance   341       316         299         969         1,010  
Other real estate, net   20       112         (220 )       153         359  
General and administrative   2,579       2,654         2,863         7,338         8,862  
Total noninterest expense   14,077       13,982         13,358         41,141         42,797  
Income before taxes   6,425       6,354         8,460         20,034         24,208  
Taxes on income   2,303       2,193         3,172         7,216         9,077  
Net income $ 4,122   $   4,161     $   5,288     $   12,818     $   15,131  
                             
Basic earnings per common share $ 0.22   $   0.22     $   0.27     $   0.67     $   0.77  
Diluted earnings per common share   0.22       0.22         0.27         0.68         0.77  
Common dividends declared per share   0.06       0.06         0.04         0.18         0.12  

SOUTHWEST BANCORP, INC.                           Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY                            
(Dollars in thousands)                            
                             
   For the three months ended
  September 30, 2015   June 30, 2015   September 30, 2014
  Average   Average   Average   Average   Average   Average
  Balance   Yield/Rate   Balance   Yield/Rate   Balance   Yield/Rate
Assets                            
Loans $   1,473,297       4.45 %   $   1,439,050       4.41 %   $   1,356,729     4.59 %
Investment securities     387,194       1.48         369,677       1.44         378,924     1.61  
Other interest-earning assets     100,011       1.06         103,943       1.11         88,653     1.23  
Total interest-earning assets     1,960,502       3.69         1,912,670       3.66         1,824,306     3.80  
Other assets     65,459             58,267             43,339      
Total assets $   2,025,961         $   1,970,937         $   1,867,645      
                             
Liabilities and Shareholders’ Equity                            
Interest-bearing demand deposits $   123,829       0.12 %   $   137,781       0.09 %   $   109,245     0.12 %
Money market accounts     497,935       0.17         473,993       0.15         437,632     0.14  
Savings accounts     35,982       0.10         34,702       0.10         32,076     0.10  
Time deposits     446,464       0.57         448,175       0.57         440,317     0.60  
Total interest-bearing deposits     1,104,210       0.33         1,094,651       0.32         1,019,270     0.34  
Other borrowings     76,799       1.32         60,568       1.60         85,423     1.05  
Subordinated debentures     46,393       4.86         46,393       4.84         46,393     4.85  
Total interest-bearing liabilities     1,227,402       0.56         1,201,612       0.56         1,151,086     0.57  
                             
Noninterest-bearing demand deposits     511,442             485,984             432,255      
Other liabilities     11,708             10,005             11,442      
Shareholders’ equity     275,409             273,336             272,862      
Total liabilities and shareholders’ equity $   2,025,961         $   1,970,937         $   1,867,645      
                             
Net interest income and spread         3.13 %           3.10 %         3.23 %
Net interest margin (1)         3.34 %           3.31 %         3.44 %
Average interest-earning assets                            
to average interest-bearing liabilities     159.73 %           159.18 %           158.49 %    
                             
(1) Net interest margin = annualized net interest income / average interest-earning assets                                                                                                

SOUTHWEST BANCORP, INC.                   Table 5
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE                  
(Dollars in thousands)                  
                   
  For the nine months ended September 30,
  2015   2014
  Average   Average   Average   Average
  Balance   Yield/Rate   Balance   Yield/Rate
Assets                  
Loans $   1,444,026       4.44 %   $   1,322,351       4.83 %
Investment securities     374,987       1.47         383,950       1.68  
Other interest-earning assets     120,749       0.95         183,416       0.70  
Total interest-earning assets     1,939,762       3.65         1,889,717       3.79  
Other assets     57,787             47,780      
Total assets $   1,997,549         $   1,937,497      
                   
Liabilities and Shareholders’ Equity                  
Interest-bearing demand deposits $   133,447       0.10 %   $   124,652       0.12 %
Money market accounts     485,571       0.16         431,802       0.14  
Savings accounts     34,688       0.10         39,941       0.10  
Time deposits     443,060       0.57         488,066       0.61  
Total interest-bearing deposits     1,096,766       0.32         1,084,461       0.35  
Other borrowings     69,908       1.38         83,987       1.07  
Subordinated debentures     46,393       4.82         46,393       4.80  
Total interest-bearing liabilities     1,213,067       0.55         1,214,841       0.57  
                   
Noninterest-bearing demand deposits     500,263             443,520      
Other liabilities     10,879             10,898      
Shareholders’ equity     273,340             268,238      
Total liabilities and shareholders’ equity $   1,997,549         $   1,937,497      
                   
Net interest income and spread         3.10 %           3.22 %
Net interest margin (1)         3.30 %           3.43 %
Average interest-earning assets                  
to average interest-bearing liabilities     159.91 %           155.55 %    
                   
(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)                                        
                                         
  2015   2014
    Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
LOAN COMPOSITION                                        
Real estate mortgage:                                        
Commercial $   869,250     $   759,406     $   759,676     $   752,971     $   757,878     $   769,021     $   766,178  
One-to-four family residential     95,906         85,338         86,343         77,531         78,985         79,542         84,619  
Real estate construction:                                        
Commercial     126,407         186,140         192,052         186,659         166,379         166,981         166,007  
One-to-four family residential     12,866         13,107         12,586         10,464         11,030         8,359         6,629  
Commercial     423,480         384,788         366,282         350,410         330,738         300,163         266,311  
Installment and consumer:                                        
Guaranteed student loans                             37         127         4,282         4,318  
Other     20,185         20,651         21,306         21,919         22,251         23,352         26,060  
Total loans, including held for sale     1,548,094         1,449,430         1,438,245         1,399,991         1,367,388         1,351,700         1,320,122  
Less allowance for loan losses     (26,593 )       (26,219 )       (27,250 )       (28,452 )       (30,917 )       (33,083 )       (34,925 )
Total loans, net $   1,521,501     $   1,423,211     $   1,410,995     $   1,371,539     $   1,336,471     $   1,318,617     $   1,285,197  
LOANS BY SEGMENT                                        
Oklahoma banking $   832,282     $   810,367     $   814,949     $   793,268     $   800,201     $   798,067     $   777,384  
Texas banking     563,010         493,047         478,005         460,680         424,640         408,385         372,018  
Kansas banking     152,802         146,016         145,291         146,043         142,547         145,248         170,720  
Total loans $   1,548,094     $   1,449,430     $   1,438,245     $   1,399,991     $   1,367,388     $   1,351,700     $   1,320,122  
NONPERFORMING LOANS BY TYPE                                        
Construction & development $   391     $   416     $   392     $   73     $   77     $   82     $   80  
Commercial real estate     1,795         2,141         2,247         2,195         7,504         7,613         7,541  
Commercial     11,727         5,114         5,447         6,044         6,149         7,484         7,992  
One-to-four family residential     1,016         1,216         1,065         1,100         1,274         1,180         470  
Consumer     148                         1         55         119         2  
Total nonperforming loans $   15,077     $   8,887     $   9,151     $   9,413     $   15,059     $   16,478     $   16,085  
NONPERFORMING LOANS BY SEGMENT                                        
Oklahoma banking $   2,846     $   1,670     $   2,244     $   1,867     $   6,410     $   7,149     $   7,056  
Texas banking     11,025         5,353         5,264         5,699         5,777         5,636         5,793  
Kansas banking     1,206         1,864         1,643         1,847         2,872         3,693         3,236  
Total nonperforming loans $   15,077     $   8,887     $   9,151     $   9,413     $   15,059     $   16,478     $   16,085  
OTHER REAL ESTATE BY TYPE                                        
Construction & development $   2,025     $   2,035     $   2,035     $   2,035     $   2,130     $   2,130     $   2,130  
Commercial real estate     249         358         220         1,062         1,318         2,155         2,524  
Total other real estate $   2,274     $   2,393     $   2,255     $   3,097     $   3,448     $   4,285     $   4,654  
OTHER REAL ESTATE BY SEGMENT                                        
Oklahoma banking $   200     $   200     $       $       $       $       $    
Texas banking     2,025         2,000         2,000         2,000         2,000         2,000         2,000  
Kansas banking     49         193         255         1,097         1,448         2,285         2,654  
Total other real estate $   2,274     $   2,393     $   2,255     $   3,097     $   3,448     $   4,285     $   4,654  
Continued                                        

SOUTHWEST BANCORP, INC.                                       Table 6
UNAUDITED QUARTERLY SUMMARY LOAN DATA                                       Continued
(Dollars in thousands)                                        
                                         
  2015   2014
    Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
POTENTIAL PROBLEM LOANS BY TYPE                                        
Construction & development $       $       $   201     $   2,004     $   19,307     $   18,842     $   22,220  
Commercial real estate     22,362         20,375         24,672         26,108         40,623         60,559         64,257  
Commercial     7,366         14,519         14,016         5,842         4,090         4,299         4,807  
One-to-four family residential     79         80         81         83         355         475         481  
Total potential problem loans $   29,807     $   34,974     $   38,970     $   34,037     $   64,375     $   84,175     $   91,765  
POTENTIAL PROBLEM LOANS BY SEGMENT                                        
Oklahoma banking $   23,597     $   23,231     $   26,713     $   24,950     $   23,895     $   23,887     $   29,208  
Texas banking     4,086         9,180         9,541         6,283         38,586         57,044         58,361  
Kansas banking     2,124         2,563         2,716         2,804         1,894         3,244         4,196  
Total potential problem loans $   29,807     $   34,974     $   38,970     $   34,037     $   64,375     $   84,175     $   91,765  
ALLOWANCE ACTIVITY                                        
Balance, beginning of period $   26,219     $   27,250     $   28,452     $   30,917     $   33,083     $   34,925     $   36,663  
Charge offs     226         325         230         377         1,156         1,991         3,392  
Recoveries     577         430         915         298         1,887         504         2,640  
Net charge offs (recoveries)     (351 )       (105 )       (685 )       79         (731 )       1,487         752  
Provision (credit) for loan losses     23         (1,136 )       (1,887 )       (2,386 )       (2,897 )       (355 )       (986 )
Balance, end of period $   26,593     $   26,219     $   27,250     $   28,452     $   30,917     $   33,083     $   34,925  
NET CHARGE OFFS BY TYPE                                        
Construction & development $   (16 )   $   (15 )   $   5     $       $       $       $   655  
Commercial real estate     24         82         (118 )       (34 )       (640 )       583         (2,243 )
Commercial     (325 )       (52 )       (188 )       (45 )       22         652         2,267  
One-to-four family residential     (68 )       (91 )       (331 )       84         11         (2 )       (18 )
Consumer     34         (29 )       (53 )       74         (124 )       254         91  
Total net charge offs (recoveries) by type $   (351 )   $   (105 )   $   (685 )   $   79     $   (731 )   $   1,487     $   752  
NET CHARGE OFFS BY SEGMENT                                        
Oklahoma banking $   (86 )   $   25     $   (309 )   $   248     $   67     $   763     $   229  
Texas banking     (103 )       (72 )       (114 )       (36 )       (611 )       244         (1,586 )
Kansas banking     (162 )       (58 )       (262 )       (133 )       (187 )       480         2,109  
Total net charge offs (recoveries) by segment $   (351 )   $   (105 )   $   (685 )   $   79     $   (731 )   $   1,487     $   752  
                                         

SOUTHWEST BANCORP, INC.                                       Table 7
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA                                        
(Dollars in thousands, except per share)                                        
                                         
  2015   2014
    Sep. 30   Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PER SHARE DATA                                        
Basic earnings per common share $ 0.22   $ 0.22   $ 0.24   $ 0.30   $ 0.27   $ 0.31   $ 0.19
Diluted earnings per common share   0.22     0.22     0.24     0.30     0.27     0.31     0.19
Common dividends declared per share   0.06     0.06     0.06     0.04     0.04     0.04     0.04
Book value per common share   14.57     14.38     14.26     14.11     13.90     13.71     13.37
Tangible book value per share*   14.49     14.29     14.17     14.02     13.80     13.61     13.21
COMMON STOCK                                        
Shares issued   19,901,336     19,900,855     19,900,350     19,810,877     19,793,623     19,793,123     19,786,206
Less treasury shares   868,617     867,310     867,310     617,818     223,005        
Outstanding shares   19,032,719     19,033,545     19,033,040     19,193,059     19,570,618     19,793,123     19,786,206
OTHER FINANCIAL DATA                                        
Investment securities $ 388,543   $ 373,260   $ 377,545   $ 365,593   $ 370,607   $ 385,873   $ 386,987
Loans held for sale   7,024     6,687     9,106     1,485     4,368     6,803     5,741
Portfolio loans   1,541,070     1,442,743     1,429,139     1,398,506     1,363,020     1,344,897     1,314,381
Total loans   1,548,094     1,449,430     1,438,245     1,399,991     1,367,388     1,351,700     1,320,122
Total assets   2,059,899     2,031,581     2,003,079     1,942,034     1,900,948     1,885,158     2,012,053
Total deposits   1,626,250     1,624,446     1,616,454     1,533,999     1,494,946     1,463,855     1,605,906
Other borrowings   96,801     75,839     58,578     79,380     75,884     90,760     85,692
Subordinated debentures   46,393     46,393     46,393     46,393     46,393     46,393     46,393
Total shareholders’ equity   277,344     273,681     271,444     270,786     271,966     271,351     264,586
Mortgage servicing portfolio   422,845     415,961     407,903     410,315     401,756     397,339     391,303
INTANGIBLE ASSET DATA                                        
Goodwill $ 1,214   $ 1,214   $ 1,214   $ 1,214   $ 1,214   $ 1,214   $ 1,214
Core deposit intangible   342     405     467     530     597     667     1,925
Mortgage servicing rights   3,631     3,518     3,399     3,397     3,269     3,182     3,006
Total intangible assets $ 5,187   $ 5,137   $ 5,080   $ 5,141   $ 5,080   $ 5,063   $ 6,145
Intangible amortization expense $ 243   $ 243   $ 168   $ 193   $ 195   $ 210   $ 183
DEPOSIT COMPOSITION                                        
Non-interest bearing demand $ 526,159   $ 515,156   $ 506,952   $ 496,128   $ 445,148   $ 427,431   $ 471,568
Interest-bearing demand   114,877     131,547     140,659     122,342     104,807     124,712     132,622
Money market accounts   502,028     496,178     488,569     461,679     477,614     430,296     440,875
Savings accounts   36,163     35,647     34,413     32,795     33,398     31,187     47,532
Time deposits of $100,000 or more   238,318     233,105     227,426     198,952     203,090     209,059     236,035
Other time deposits   208,705     212,813     218,435     222,103     230,889     241,170     277,274
Total deposits** $ 1,626,250   $ 1,624,446   $ 1,616,454   $ 1,533,999   $ 1,494,946   $ 1,463,855   $ 1,605,906
OFFICES AND EMPLOYEES                                        
FTE Employees   358     361     360     359     351     364     397
Branches   23     23     22     21     21     21     24
Assets per employee $ 5,754   $ 5,628   $ 5,564   $ 5,410   $ 5,416   $ 5,179   $ 5,068
                                         
*This is a Non-GAAP based financial measure.
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $ 1,626,250   $ 1,624,446   $ 1,616,454   $ 1,533,999   $ 1,494,946   $ 1,463,855   $ 1,605,906
Less:                                        
Brokered time deposits   10,086     7,683     7,694     3,373     2,952     1,348     1,347
Other brokered deposits   133,025     103,025     83,025     73,425     98,425     48,424     3,424
Non-brokered deposits $ 1,483,139   $ 1,513,738   $ 1,525,735   $ 1,457,201   $ 1,393,569   $ 1,414,083   $ 1,601,135
Plus:                                        
Sweep repurchase agreements   50,801     50,839     33,578     54,380     50,884     65,760     60,692
Core funding $ 1,533,940   $ 1,564,577   $ 1,559,313   $ 1,511,581   $ 1,444,453   $ 1,479,843   $ 1,661,827
                                         
Balance sheet amounts are as of period end unless otherwise noted.

SOUTHWEST BANCORP, INC.                                       Table 8
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA                                        
(Dollars in thousands)                                        
                                         
  2015   2014
    Sep. 30     Jun. 30   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31
PERFORMANCE RATIOS                                        
Return on average assets (annualized)     0.81 %       0.85 %       0.92 %       1.22 %       1.12 %       1.27 %       0.75 %
Return on average common equity (annualized)     5.94         6.11         6.78         8.62         7.69         9.19         5.68  
Return on average tangible common equity                                        
(annualized)*     5.97         6.14         6.82         8.67         7.74         9.30         5.75  
Net interest margin (annualized)     3.34         3.31         3.25         3.52         3.44         3.50         3.33  
Total dividends declared to net income     27.53         27.45         25.19         12.93         14.88         12.86         21.40  
Effective tax rate     35.84         34.51         37.49         37.50         37.49         37.50         37.49  
Efficiency ratio     68.25         72.43         70.47         68.90         71.39         74.25         73.61  
NONPERFORMING ASSETS                                        
Nonaccrual loans $   15,076     $   8,887     $   9,151     $   9,276     $   15,059     $   16,478     $   16,085  
90 days past due and accruing     1                         137                          
Total nonperforming loans     15,077         8,887         9,151         9,413         15,059         16,478         16,085  
Other real estate     2,274         2,393         2,255         3,097         3,448         4,285         4,654  
Total nonperforming assets $   17,351     $   11,280     $   11,406     $   12,510     $   18,507     $   20,763     $   20,739  
Potential problem loans $   29,807     $   34,974     $   38,970     $   34,037     $   64,375     $   84,175     $   91,765  
ASSET QUALITY RATIOS                                        
Nonperforming assets to portfolio loans and                                        
other real estate     1.12 %       0.78 %       0.80 %       0.89 %       1.36 %       1.54 %       1.57 %
Nonperforming loans to portfolio loans     0.98         0.62         0.64         0.67         1.10         1.23         1.22  
Allowance for loan losses to portfolio loans     1.73         1.82         1.91         2.03         2.27         2.46         2.66  
Allowance for loan losses to                                        
nonperforming loans     176.38         295.03         297.78         302.26         205.29         200.77         217.13  
Net loan charge-offs to average portfolio                                        
loans (annualized)     (0.09 )       (0.03 )       (0.20 )       0.02         (0.21 )       0.45         0.24  
CAPITAL RATIOS                                        
Average total shareholders’ equity to                                        
average assets     13.59 %       13.87 %       13.59 %       14.19 %       14.61 %       13.77 %       13.18 %
Leverage ratio     15.84         16.12         15.75         16.45         16.86         15.95         15.09  
Common equity tier 1 capital     14.57         15.30         15.51         n/a         n/a         n/a         n/a  
Tier 1 capital to risk-weighted assets     16.95         17.84         18.10         19.70         20.05         20.13         19.98  
Total capital to risk-weighted assets     18.21         19.09         19.36         20.96         21.34         21.43         21.29  
Tangible common equity to tangible assets***     13.40         13.40         13.48         13.87         14.23         14.31         13.01  
REGULATORY CAPITAL DATA                                        
Common equity tier 1 capital $   275,350     $   272,048     $   269,007     $   n/a     $   n/a     $   n/a     $   n/a  
Tier I capital     320,350         317,048         314,007         314,216         314,120         309,600         299,938  
Total capital     344,095         339,412         335,734         334,348         334,456         329,586         319,516  
Total risk adjusted assets     1,889,892         1,777,618         1,734,401         1,595,032         1,566,996         1,537,903         1,500,957  
Average total assets     2,022,972         1,966,577         1,993,446         1,910,688         1,863,127         1,941,064         1,987,231  
                                         
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Common Equity to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders’ equity $   277,344     $   273,681     $   271,444     $   270,786     $   271,966     $   271,351     $   264,586  
Less goodwill and core deposit intangible     1,556         1,619         1,681         1,744         1,811         1,881         3,139  
Tangible common equity $   275,788     $   272,062     $   269,763     $   269,042     $   270,155     $   269,470     $   261,447  
Total assets $   2,059,899     $   2,031,581     $   2,003,079     $   1,942,034     $   1,900,948     $   1,885,158     $   2,012,053  
Less goodwill and core deposit intangible     1,556         1,619         1,681         1,744         1,811         1,881         3,139  
Tangible assets $   2,058,343     $   2,029,962     $   2,001,398     $   1,940,290     $   1,899,137     $   1,883,277     $   2,008,914  
Total shareholders’ equity to total assets     13.46 %       13.47 %       13.55 %       13.94 %       14.31 %       14.39 %       13.15 %
Tangible common equity to tangible assets     13.40 %       13.40 %       13.48 %       13.87 %       14.23 %       14.31 %       13.01 %
                                         
Balance sheet amounts and ratios are as of period end unless otherwise noted.

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

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