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

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

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

• During the fourth quarter, nonperforming loans and assets were reduced by $9.7 million, or 36.3%, to end the year at $17.0 million.
  
  
• The improvement in credit quality combined with loan recoveries produced a $1.3 million release from our allowance for loan losses, resulting in a ratio of 1.47% when compared to total loans.
  
  
• Total loans at December 31, 2016 of $1.9 billion, while down slightly for the quarter, increased by $97.7 million, or 5.5% for the year.
  
  
• The quarterly net interest margin was 3.40% at December 31, 2016, compared to 3.42% at September 30, 2016 and 3.48% at December 31, 2015.
  
  
• Pre-tax, pre-provision income was $8.6 million in the fourth quarter, an increase of 2% from $8.4 million in the third quarter of 2016, and an increase of 33% from $6.4 million for the fourth quarter of 2015.
  
  
• The efficiency ratio for the fourth quarter of 2016 was 64.34%, compared to 66.09% for the third quarter of 2016 and 72.17% for the fourth quarter of 2015. Excluding the deal costs related to the pending merger, the efficiency ratio for the fourth quarter was 60.46%.”

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

Financial Overview

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

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

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

As of December 31, 2016, total deposits were $1.9 billion, a decrease of $1.9 million, when compared to September 30, 2016. Total core funding, which includes all non-brokered deposits and sweep repurchase agreements, comprised 81% of total funding as of December 31, 2016 and September 30, 2016. Wholesale funding, including Federal Home Loan Bank borrowings and brokered deposits, accounted for 19% of total funding at December 31, 2016 and September 30, 2016. See Table 7 for details on core funding and non-brokered deposits, which are non-GAAP financial measures.

The capital ratios of Southwest and Bank SNB as of December 31, 2016 exceeded the criteria for regulatory classification as “well-capitalized”. Southwest’s total regulatory capital was $345.6 million, for a total risk-based capital ratio of 15.66%, Common Equity Tier 1 capital was $272.9 million, for a Common Equity Tier 1 ratio of 12.36%, and Tier 1 capital was $317.9 million, for a Tier 1 risk-based capital ratio of 14.40%. Bank SNB had total regulatory capital of $328.7 million, for a total risk-based capital ratio of 14.92% and Common Equity Tier 1 and Tier 1 capital of $301.0 million, for a Common Equity Tier 1 and Tier 1 risk-based capital ratio of 13.66%. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Fourth Quarter Results:

Summary:  For the fourth quarter of 2016, net income was $6.2 million, compared to $4.3 million for the third quarter of 2016 and $4.6 million for the fourth quarter of 2015. Pre-tax, pre-provision income for the fourth quarter of 2016 was $8.6 million, compared to $8.4 million for the third quarter of 2016 and $6.4 million for the fourth quarter of 2015. The fourth quarter of 2016 includes $0.9 million of merger related costs. Certain variances in income and expenses in the fourth quarter compared to the prior year are due in part to the First Commercial Bancshares, Inc., acquisition that occurred in the fourth quarter of 2015.

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

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

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

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

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

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

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

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

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

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

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

Year-to-Date Results:

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

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

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

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

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

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

Pending Merger:

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

Conference Call

Southwest will host a conference call to review these results on Wednesday, January 25, 2017 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors, news media, and others may pre-register for the call using the following link to receive a special dial-in number and PIN:  http://dpregister.com/100987341. Telephone participants who are unable to pre-register may access the call by telephone at 866-218-2402 (toll-free) or 412-902-4190 (international). Participants are encouraged to dial into the call approximately 10 minutes prior to the start time. The call and corresponding presentation slides will be webcast live on Southwest’s website at www.oksb.com or http://services.choruscall.com/links/oksb170125.html. An audio replay will be available one hour after the call at 877-344-7529 (toll-free) or 412-317-0088 (international), conference number 10098734. Telephone replay access will be available until February 25, 2017. 

Southwest Bancorp and Subsidiaries

Southwest is the holding company for Bank SNB, an Oklahoma state banking corporation (“Bank SNB”). Bank SNB offers commercial and consumer lending, deposit services, specialized cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado. Bank SNB was chartered in 1894 and Southwest was organized in 1981 as the holding company. At December 31, 2016, Southwest had total assets of approximately $2.5 billion, deposits of $1.9 billion, and shareholders’ equity of $286.6 million.

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

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

Caution About Forward-Looking Statements

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

These forward-looking statements include: 

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

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

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

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

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

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

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

SOUTHWEST BANCORP, INC.																	Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)
		Fourth Quarter				Third Quarter							Fourth Quarter
QUARTERLY HIGHLIGHTS		2016								% Change			2015				% Change
Operations
Net interest income		$	20,103			$	19,805			2	%		$	19,520			3	%
Provision (credit) for loan losses			(1,329	)			1,713			(178	)			(566	)		135
Noninterest income			4,244				4,555			(7	)			4,179			2
Noninterest expense			15,826				16,156			(2	)			17,099			(7	)
Income before taxes			9,850				6,491			52				7,166			37
Taxes on income			3,682				2,236			65				2,577			43
Net income			6,168				4,255			45				4,589			34
Diluted earnings per share			0.33				0.23			42				0.23			42
Balance Sheet
Total assets			2,475,392				2,468,042			0				2,357,022			5
Loans held for sale			4,386				7,899			(44	)			7,453			(41	)
Portfolio loans			1,872,746				1,872,213			0				1,771,976			6
Total deposits			1,946,018				1,947,924			(0	)			1,884,105			3
Total shareholders' equity			286,629				283,820			1				296,098			(3	)
Book value per common share			15.35				15.19			1				14.80			4
Key Ratios
Net interest margin			3.40	%			3.42	%						3.48	%
Efficiency ratio			64.34				66.09							72.17
Total capital to risk-weighted assets			15.66				15.21							16.79
Nonperforming loans to portfolio loans			0.89				1.31							1.15
Shareholders' equity to total assets			11.58				11.50							12.56
Tangible common equity to tangible assets*			11.01				10.92							11.95
Return on average assets (annualized)			1.00				0.70							0.78
Return on average common equity (annualized)			8.59				5.97							6.14
Return on average tangible common equity (annualized)**			9.10				6.33							6.46
		Year
YEAR-TO-DATE HIGHLIGHTS		2016				2015				% Change
Operations
Net interest income		$	79,443			$	67,417			18	%
Provision (credit) for loan losses			4,769				(3,566	)		234
Noninterest income			16,085				14,457			11
Noninterest expense			63,246				58,240			9
Income before taxes			27,513				27,200			1
Taxes on income			9,809				9,793			0
Net income			17,704				17,407			2
Diluted earnings per share			0.92				0.90			3
Balance Sheet
Total assets			2,475,392				2,357,022			5
Loans held for sale			4,386				7,453			(41	)
Portfolio loans			1,872,746				1,771,976			6
Total deposits			1,946,018				1,884,105			3
Total shareholders' equity			286,629				296,098			(3	)
Book value per common share			15.35				14.80			4
Key Ratios
Net interest margin			3.46	%			3.35	%
Efficiency ratio			65.88				70.98
Total capital to risk-weighted assets			15.66				16.79
Nonperforming loans to portfolio loans			0.89				1.15
Shareholders' equity to total assets			11.58				12.56
Tangible common equity to tangible assets*			11.01				11.95
Return on average assets (annualized)			0.74				0.84
Return on average common equity (annualized)			6.18				6.23
Return on average tangible common equity (annualized)**			6.55				6.35
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure.  Please see Table 8 for a reconciliation to the most directly comparable GAAP based measure.
** This is a Non-GAAP financial measure.
Please see accompanying tables for additional financial information.

SOUTHWEST BANCORP, INC.						Table 2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
		December 31,				December 31,
		2016				2015
Assets
Cash and due from banks		$	36,831			$	24,971
Interest-bearing deposits			38,819				53,158
Cash and cash equivalents			75,650				78,129
Securities held to maturity (fair values of $10,677 and $12,282, respectively)			10,443				11,797
Securities available for sale (amortized cost of $427,113 and $401,136, respectively)			426,218				400,331
Loans held for sale			4,386				7,453
Loans receivable			1,872,746				1,771,975
Less: Allowance for loan losses			(27,546	)			(26,106	)
Net loans receivable			1,845,200				1,745,869
Accrued interest receivable			6,194				5,767
Non-hedge derivative asset			1,235				1,793
Premises and equipment, net			22,808				23,819
Other real estate			350				2,274
Goodwill			13,545				13,467
Other intangible assets, net			5,790				6,615
Other assets			63,573				59,708
Total assets		$	2,475,392			$	2,357,022
Liabilities
Deposits:
Noninterest-bearing demand		$	551,709			$	596,494
Interest-bearing demand			152,656				151,015
Money market accounts			567,058				534,357
Savings accounts			56,410				56,333
Time deposits of $100,000 or more			360,307				311,538
Other time deposits			257,878				234,368
Total deposits			1,946,018				1,884,105
Accrued interest payable			1,132				867
Non-hedge derivative liability			1,235				1,793
Other liabilities			10,171				11,684
Other borrowings			183,814				110,927
Subordinated debentures			46,393				51,548
Total liabilities			2,188,763				2,060,924
Shareholders' equity
Common stock - $1 par value; 40,000,000 shares authorized;
21,230,714 and 21,138,028 shares issued, respectively			21,231				21,138
Additional paid-in capital			123,112				121,966
Retained earnings			184,840				173,210
Accumulated other comprehensive loss			(907	)			(1,290	)
Treasury stock, at cost, 2,555,987 and 1,131,226 shares, respectively			(41,647	)			(18,926	)
Total shareholders' equity			286,629				296,098
Total liabilities and shareholders' equity		$	2,475,392			$	2,357,022

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

SOUTHWEST BANCORP, INC.																				Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands)
		For the three months ended
		December 31, 2016							September 30, 2016							December 31, 2015
		Average				Average			Average				Average			Average				Average
		Balance				Yield/Rate			Balance				Yield/Rate			Balance				Yield/Rate
Assets
Loans		$	1,867,210			4.46	%		$	1,832,750			4.46	%		$	1,744,375			4.49	%
Investment securities			432,053			1.62				425,276			1.61				413,701			1.74
Other interest-earning assets			50,564			0.41				48,759			0.41				64,562			0.28
Total interest-earning assets			2,349,827			3.85				2,306,785			3.85				2,222,638			3.85
Other assets			106,961							107,140							101,002
Total assets		$	2,456,788						$	2,413,925						$	2,323,640
Liabilities and Shareholders' Equity
Interest-bearing demand deposits		$	146,708			0.16	%		$	152,134			0.15	%		$	137,153			0.15	%
Money market accounts			572,984			0.26				545,040			0.26				541,976			0.19
Savings accounts			55,761			0.13				54,073			0.14				53,604			0.13
Time deposits			625,288			0.79				603,201			0.73				548,145			0.63
Total interest-bearing deposits			1,400,741			0.48				1,354,448			0.45				1,280,878			0.37
Other borrowings			151,004			0.93				163,495			0.91				80,343			1.29
Subordinated debentures			46,393			5.09				46,393			5.08				51,044			4.76
Total interest-bearing liabilities			1,598,138			0.66				1,564,336			0.64				1,412,265			0.58
Noninterest-bearing demand deposits			557,994							549,077							594,537
Other liabilities			15,157							16,937							20,149
Shareholders' equity			285,499							283,575							296,689
Total liabilities and shareholders' equity		$	2,456,788						$	2,413,925						$	2,323,640
Net interest income and spread						3.19	%						3.21	%						3.27	%
Net interest margin (1)						3.40	%						3.42	%						3.48	%
Average interest-earning assets
to average interest-bearing liabilities			147.04	%						147.46	%						157.38	%
(1) Net interest margin = annualized net interest income / average interest-earning assets

SOUTHWEST BANCORP, INC.													Table 5
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES – YEAR-TO-DATE
(Dollars in thousands)
		For the year ended December 31,
		2016							2015
		Average				Average			Average				Average
		Balance				Yield/Rate			Balance				Yield/Rate
Assets
Loans		$	1,822,288			4.47	%		$	1,519,730			4.45	%
Investment securities			424,501			1.74				384,745			1.70
Other interest-earning assets			49,938			0.41				106,586			0.26
Total interest-earning assets			2,296,727			3.88				2,011,061			3.70
Other assets			106,180							68,681
Total assets		$	2,402,907						$	2,079,742
Liabilities and Shareholders' Equity
Interest-bearing demand deposits		$	156,086			0.16	%		$	134,381			0.11	%
Money market accounts			549,691			0.25				499,788			0.17
Savings accounts			55,118			0.13				39,456			0.11
Time deposits			595,536			0.72				469,547			0.59
Total interest-bearing deposits			1,356,431			0.44				1,143,172			0.33
Other borrowings			143,399			0.96				72,538			1.36
Subordinated debentures			46,928			5.01				47,565			4.80
Total interest-bearing liabilities			1,546,758			0.63				1,263,275			0.56
Noninterest-bearing demand deposits			554,509							524,025
Other liabilities			15,120							13,217
Shareholders' equity			286,520							279,225
Total liabilities and shareholders' equity		$	2,402,907						$	2,079,742
Net interest income and spread						3.25	%						3.14	%
Net interest margin (1)						3.46	%						3.35	%
Average interest-earning assets
to average interest-bearing liabilities			148.49	%						159.19	%
(1) Net interest margin = annualized net interest income / average interest-earning assets

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

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

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

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

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