Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

STILLWATER, Okla., April 19 /PRNewswire-FirstCall/ -- Southwest Bancorp, Inc. (Nasdaq: OKSB), ("Southwest"), today reported net income available to common shareholders of $3.3 million, or $0.23 per diluted share for the first quarter 2010, compared to $296,000, or $0.02 per diluted share for the first quarter of 2009, and $2.5 million, or $0.17 per diluted share for the fourth quarter of 2009.  At March 31, 2010, total assets were $3.1 billion.  

(Logo:  http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGO)

Rick Green, Southwest Bancorp's President and Chief Executive Officer, stated, "Our first quarter results continue to demonstrate our ability to maintain top line revenue, effectively manage noninterest expenses, and take steps to control risk.  Our earnings growth over last year's first quarter was driven by a 27% growth in net interest income and a 22% decrease in our provision for loan losses.  

Our operating expenses were up 5% over the first quarter of 2009 due mainly to increases in FDIC insurance premiums and the personnel costs for the Kansas offices we acquired last June, and were 5% lower than the fourth quarter of 2009.  Our efficiency ratio for the first quarter of 2010 improved to 49.25% from 53.06% in the first quarter of 2009 and 49.69% for the fourth quarter of 2009.

At March 31, 2010, our allowance for loan losses was up 4% from December 31, 2009 and represented 2.59% of noncovered portfolio loans versus 1.83% at March 31, 2009 and 2.46% at December 31, 2009.  Our provision for loan losses in the first quarter exceeded charge-offs by $2.8 million, while our noncovered nonperforming assets were down $2.3 million from year-end 2009.

Southwest and its bank subsidiaries have maintained capital levels that exceed the minimums for regulatory "well capitalized" status.  At March 31, 2010, Southwest's total regulatory capital was $416.0 million for a total risk-based capital ratio of 15.28%, and Tier 1 capital was $381.3 million for a Tier 1 risk-based capital ratio of 14.00%.  

Please review the following discussion and the attached financial tables for important additional information regarding our financial condition and performance."

Financial Overview

Condition: At March 31, 2010 total assets of $3.1 billion and total loans of $2.6 billion were approximately the same as at year-end 2009.

The methodology used to determine the appropriate amount of the allowance for loan losses at a particular time includes consideration of risk factors related to Southwest and to our markets, including regular assessments of national and local economic conditions and trends.  

Excluding assets subject to loss sharing agreements with the FDIC ("covered assets"), nonperforming assets decreased to $122.3 million and 4.82% of portfolio loans and other real estate as of March 31, 2010 from $124.6 million and 4.87% of portfolio loans and other real estate as of December 31, 2009.  A breakdown of noncovered portfolio loans and noncovered nonperforming assets by type is shown in the following table:

		Noncovered		Percentage of		Noncovered		Percentage of
		portfolio		total noncovered		nonperforming		total noncovered
(dollars in thousands)		loans		portfolio loans		assets		nonperforming assets
Real estate construction		$     665,468		26.45%		$            54,648		44.68%
Commercial real estate		1,220,518		48.50		28,520		23.31
Commercial		484,874		19.27		9,750		7.97
Residential real estate mortgages		107,489		4.27		10,552		8.63
Other consumer loans		38,048		1.51		42		0.03
Other real estate owned		-		-		18,809		15.38
Total		$  2,516,397		100.00%		$          122,321		100.00%

Excluding covered loans, nonaccrual loans were $97.9 million as of March 31, 2010, a decrease of $8.0 million, or 8%, from December 31, 2009.  These loans are carried at their estimated collectible amounts and no longer accrue interest.  Noncovered loans 90 days or more past due, another component of nonperforming loans, were $4,000 as of March 31, 2010 and decreased $306,000 from December 31, 2009.  These loans are deemed to have sufficient collateral and are in the process of collection.  

Performing loans considered potential problem loans, which are not included in the past due or nonaccrual categories but for which known information about possible credit problems cause management to be uncertain as to the continued ability of the borrowers to comply with the present loan repayment terms in future periods, amounted to $282.5 million at March 31, 2010, an increase of $15.3 million from December 31, 2009.  Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.  Included are $6.6 million of potential problem loans acquired from FNBA, which are subject to protection under the loss share agreements with the FDIC.  

Due to changes in federal regulations related to student loans, Southwest is reducing student loan activities.  During the quarter student loans were reduced by $26.0 million, or 72%, due to sales.  These sales generated $624,000 in gains on sale of loans, which is included in noninterest income.  

At March 31, 2010, Southwest exceeded all applicable regulatory capital requirements.  Southwest and each of its banking subsidiaries met the criteria for regulatory classification as "well-capitalized".  Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $143.7 million.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.

First Quarter Results:

Summary:  The $3.0 million increase in our net income available to common shareholders from first quarter 2009 is the result of a $5.8 million increase in net interest income and a $2.4 million decrease in the provision for loan losses, offset in part by a $2.3 million decrease in noninterest income, a $2.1 million increase in income tax expense, and a $659,000 increase in noninterest expense.  

Net Interest Income:  Net interest income totaled $26.8 million for first quarter 2010, compared to $21.0 million for first quarter of 2009, an increase of $5.8 million, or 27%, and $27.8 million for the fourth quarter of 2009, a decrease of $1.0 million, or 4%.  Net interest margin was 3.59% for the first quarter of 2010, compared to 3.00% for the first quarter of 2009 and 3.71% for the fourth quarter of 2009.  Included in the first quarter net interest income is a net recovery of $394,000 from the resolution of a nonperforming loan, discount accretion on loans and loss share receivable, offset by interest reversals on nonaccrual loans.    

Provision for Loan Losses and Net Charge Offs:  The provision for loan losses totaled $8.5 million for the first quarter of 2010, compared to $10.9 million for the first quarter of 2009 and $10.6 million for the fourth quarter of 2009.  Noncovered net charge offs totaled $5.8 million, or 0.93% (annualized) of average noncovered portfolio loans for the first quarter of 2010, compared to $4.4 million, or 0.71% (annualized), and $6.0 million, or 0.95% (annualized), of average noncovered portfolio loans for the first and fourth quarters of 2009, respectively.

Noninterest Income:  Noninterest income totaled $4.2 million for the first quarter of 2010, compared to $6.5 million for the first quarter of 2009.  The decrease in noninterest income was primarily the result of a $2.9 million decrease in gain on sale of investment securities, offset in part by a $496,000 increase in service charges and fees.

Noninterest Expense:  Noninterest expense totaled $15.3 million for the first quarter of 2010, compared to $14.6 million for the first quarter of 2009.  The increase consists of a $596,000 increase in FDIC and other insurance expense, a $341,000 increase personnel expense, due primarily to the FNBA transaction which occurred in the second half of 2009, and a $208,000 increase in other real estate expense, offset in part by a $555,000 decrease in provision for unfunded loan commitments.

Efficiency Ratio:  The efficiency ratio for the first quarter of 2010 improved to 49.25% from 53.06% and 49.69% for first and fourth quarters of 2009, respectively.

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Stillwater National Bank and Trust Company, Bank of Kansas, and SNB Capital Corporation. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, and specialized cash management, consulting, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®.  We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894.  We became a public company in late 1993 with assets of approximately $434.0 million.  At March 31, 2010, we had total assets of $3.1 billion, deposits of $2.6 billion, and shareholders' equity of $315.3 million.

Our area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, and commercial and commercial real estate borrowers.  We established a strategic focus on healthcare lending in 1974.  We provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities.  As of March 31, 2010, approximately $708.2 million, or 28%, of our noncovered loan portfolio was loans to individuals and businesses in the healthcare industry.  

We also focus on commercial real estate mortgage and construction credits.  Many of our real estate credits are to owner-occupants, who use the property for conducting their business and not primarily for investment.  We do not focus on one-to-four family residential development loans or "spec" residential property credits.  Additionally, subprime lending has never been a part of our business strategy, and our exposure to subprime loans and subprime lenders is minimal.  One-to-four family mortgages account for less than 5% of total noncovered loans.  As of March 31, 2010, approximately $1.9 billion, or 73%, of our noncovered loan portfolio was commercial real estate mortgage and construction loans, including $401.5 million of loans to individuals and businesses in the healthcare industry.  Our commercial real estate mortgage and construction and commercial loans are concentrated in states that have experienced less adverse effects from the recession than many others.

Southwest focuses on converting its strategic vision into long-term shareholder value. Our vision includes a commercial banking model and a community banking model focused on more traditional banking operations in our three-state market.  We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas.  At March 31, 2010, our Texas segment accounted for $1.1 billion, or 41% of total portfolio loans, followed by $926.9 million, or 36%, from our Oklahoma segment, $342.6 million, or 13%, from our Kansas segment, and $260.3 million, or 10%, from our other states segment.  

Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB.  Southwest's public trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.

Forward-Looking Statements

This Press Release includes forward-looking statements that are subject to risks and uncertainties.  These forward-looking statements include:  statements of Southwest's goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk and interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; 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 time of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; and a variety of other matters. 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 its future results.

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of March 31, 2010 through the date its financial statements are filed with the Securities and Exchange Commission.  The March 31, 2010 financial statements will be adjusted as necessary to properly consider the impact of subsequent events on estimates used to prepare those statements.  

Financial Tables
Unaudited Financial Highlights	Table 1
Unaudited Consolidated Statements of Financial Condition	Table 2
Unaudited Consolidated Statements of Operations	Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly	Table 4
Unaudited Summary Financial Data by Quarter-2010 and 2009	Table 5
Unaudited Supplemental Analytical Data by Quarter-2010 and 2009	Table 6

SOUTHWEST BANCORP, INC.										Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share)
		First Quarter					Fourth Quarter
QUARTERLY HIGHLIGHTS						%				%
		2010		2009		Change		2009		Change
Operations
Net interest income		$      26,801		$      21,038		27%		$      27,797		(4)%
Provision for loan losses		8,531		10,882		(22)		10,640		(20)
Noninterest income		4,178		6,477		(35)		4,488		(7)
Noninterest expense		15,258		14,599		5		16,041		(5)
Income before taxes		7,190		2,034		253		5,604		28
Taxes on income		2,818		705		300		2,030		39
Net income		4,372		1,329		229		3,574		22
Net income available to common
shareholders		3,329		296		1,025		2,534		31
Diluted earnings per share		0.23		0.02		1,050		0.17		35
Balance Sheet
Total assets		3,074,923		2,928,133		5		3,108,291		(1)
Loans held for sale		25,586		76,404		(67)		43,134		(41)
Noncovered portfolio loans		2,516,397		2,526,293		(0)		2,539,294		(1)
Covered portfolio loans		76,909		-		-		85,405		(10)
Total deposits		2,554,165		2,330,089		10		2,592,730		(1)
Total shareholders' equity		315,341		300,406		5		309,778		2
Book value per common share		16.79		16.01		5		16.46		2
Key Ratios
Net interest margin		3.59%		3.00%				3.71%
Efficiency ratio		49.25		53.06				49.69
Total capital to risk-weighted assets		15.28		14.11				14.55
Nonperforming loans to portfolio loans - noncovered		4.11		3.32				4.18
Shareholders' equity to total assets		10.26		10.26				9.97
Tangible common equity to tangible assets*		7.87		7.76				7.61
Return on average assets (annualized)		0.57		0.18				0.46
Return on average common equity (annualized)		5.42		0.50				4.06
Return on average tangible equity (annualized)		5.84		1.83				4.78
* This is a Non-GAAP financial measure.  Please see Table 6 for a reconciliation to the most directly comparable GAAP based measure.
Please see accompanying tables for additional financial information.

SOUTHWEST BANCORP, INC.							Table 2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except  per share)
			March 31,		December 31,		March 31,
			2010		2009		2009
Assets
Cash and cash equivalents			$    146,325		$        118,847		$      50,655
Investment securities:
	Held to maturity. Fair value:  $6,750, $6,754, $7,388, respectively		6,670		6,670		7,344
	Available for sale. Amortized cost: $230,522, $236,199, $151,686, respectively		235,023		237,703		152,826
	Other investments, at cost		19,144		19,066		18,836
Loans held for sale			25,586		43,134		76,404
Noncovered loans receivable			2,516,397		2,539,294		2,526,293
	Less: Allowance for loan losses		(65,168)		(62,413)		(46,262)
	Net noncovered loans receivable		2,451,229		2,476,881		2,480,031
Covered loans receivable (includes loss share of $21.1 million, $23.9 million, $0, respectively)			76,909		85,405		-
	Net loans receivable		2,528,138		2,562,286		2,480,031
Accrued interest receivable			10,271		10,806		10,524
Premises and equipment, net			25,996		26,536		24,098
Noncovered other real estate			18,809		18,432		5,351
Covered other real estate			4,489		4,748		-
Goodwill			6,811		6,811		7,071
Other intangible assets, net			5,575		5,779		3,868
Other assets			42,086		47,473		91,125
	Total assets		$ 3,074,923		$     3,108,291		$ 2,928,133
Liabilities and shareholders' equity
Deposits:
	Noninterest-bearing demand		$    317,896		$        324,829		$    274,175
	Interest-bearing demand		119,757		74,201		85,629
	Money market accounts		506,659		505,521		467,924
	Savings accounts		25,871		25,730		15,797
	Time deposits of $100,000 or more		944,871		1,004,439		849,814
	Other time deposits		639,111		658,010		636,750
	Total deposits		2,554,165		2,592,730		2,330,089
Accrued interest payable			2,993		3,191		6,391
Income tax payable			6,761		4,486		5,938
Other liabilities			10,080		13,121		9,607
Other borrowings			103,620		103,022		193,739
Subordinated debentures			81,963		81,963		81,963
	Total liabilities		2,759,582		2,798,513		2,627,727
Shareholders' equity
Serial preferred stock; 2,000,000 shares authorized;
70,000 shares issued and outstanding			67,205		67,037		66,549
Common stock - $1 par value; 20,000,000 shares
authorized; 14,779,711, 14,750,713, 14,658,042 shares issued, respectively			14,753		14,751		14,658
Paid in capital			49,256		49,029		48,851
Retained earnings			181,344		178,016		170,528
Accumulated other comprehensive income			2,783		945		720
Treasury stock, at cost, 0, 0, 49,930 shares, respectively			-		-		(900)
	Total shareholders' equity		315,341		309,778		300,406
	Total liabilities and shareholders' equity		$ 3,074,923		$     3,108,291		$ 2,928,133

SOUTHWEST BANCORP, INC.						Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share)
		For the three months
		ended March 31,
		2010		2009
Interest income
	Loans	$  34,372		$  33,268
	Investment securities	2,320		2,512
	Other interest-earning assets	67		6
	Total interest income	36,759		35,786
Interest expense
	Interest-bearing deposits	8,174		12,060
	Other borrowings	517		1,284
	Subordinated debentures	1,267		1,404
	Total interest expense	9,958		14,748
Net interest income		26,801		21,038
Provision for loan losses		8,531		10,882
Net interest income after provision for loan losses		18,270		10,156
Noninterest income
	Service charges and fees	3,096		2,600
	Gain on sales of loans	985		718
	Gain on investment securities	7		2,921
	Other noninterest income	90		238
	Total noninterest income	4,178		6,477
Noninterest expense
	Salaries and employee benefits	7,580		7,239
	Occupancy	2,783		2,731
	FDIC and other insurance	1,587		991
	Other real estate, net	106		(102)
	General and administrative	3,202		3,740
	Total noninterest expense	15,258		14,599
Income before taxes		7,190		2,034
	Taxes on income	2,818		705
Net income		$   4,372		$   1,329
Net income available to common shareholders		$   3,329		$   296
Basic earnings per common share		$     0.23		$     0.02
Diluted earnings per common share		0.23		0.02
Common dividends declared per share		0.0000		0.0238

SOUTHWEST BANCORP, INC.													Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
(Dollars in thousands)
			For the three months ended March 31,
			2010						2009
			Average				Average		Average				Average
			Balance		Interest		Yield/Rate		Balance		Interest		Yield/Rate
Assets
Noncovered loans			$ 2,587,603		$  32,981		5.17%		$ 2,595,124		$  33,268		5.20%
Covered loans			82,043		1,391		6.88		-		-		-
Investment securities			260,342		2,320		3.61		248,499		2,512		4.10
Other interest-earning assets			96,308		67		0.28		2,785		6		0.87
	Total interest-earning assets		3,026,296		36,759		4.93		2,846,408		35,786		5.10
Other assets			79,238						68,949
	Total assets		$ 3,105,534						$ 2,915,357
Liabilities and Shareholders' Equity
Interest-bearing demand deposits			$      107,510		$         132		0.50%		$      88,714		$         153		0.70%
Money market accounts			504,486		1,013		0.81		469,428		1,353		1.17
Savings accounts			25,628		16		0.25		15,074		9		0.24
Time deposits			1,649,888		7,013		1.72		1,442,587		10,545		2.96
Total interest-bearing deposits			2,287,512		8,174		1.45		2,015,803		12,060		2.43
Other borrowings			97,297		517		2.15		236,464		1,284		2.20
Subordinated debentures			81,963		1,267		6.18		81,963		1,404		6.85
	Total interest-bearing liabilities		2,466,772		9,958		1.64		2,334,230		14,748		2.56
	Noninterest-bearing demand deposits		303,684						256,493
	Other liabilities		19,032						19,405
	Shareholders' equity		316,046						305,229
	Total liabilities and shareholders' equity		$ 3,105,534						$ 2,915,357
	Net interest income and spread				$  26,801		3.29%				$  21,038		2.54%
	Net interest margin (1)						3.59%						3.00%
	Average interest-earning assets
	to average interest-bearing liabilities		122.68%						121.94%
(1)	Net interest margin = annualized net interest income / average interest-earning assets

SOUTHWEST BANCORP, INC.											Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share)
			2010		2009
			Mar. 31		Dec. 31		Sep. 30		Jun. 30		Mar. 31
OPERATIONS
Interest income:
Loans			$       34,372		$       36,355		$       35,607		$       36,009		$       33,268
Investment securities			2,320		2,433		2,122		2,079		2,512
Other interest-earning assets			67		1		4		3		6
Total interest income			36,759		38,789		37,733		38,091		35,786
Interest expense:
Interest bearing demand deposits			132		66		107		150		153
Money market accounts			1,013		1,170		1,220		1,211		1,353
Savings accounts			16		16		39		14		9
Time deposits of $100,000 or more			4,024		4,340		4,822		5,552		5,980
Other time deposits			2,989		3,498		3,909		4,145		4,565
Total interest-bearing deposits			8,174		9,090		10,097		11,072		12,060
Other borrowings			517		625		960		1,180		1,284
Subordinated debentures			1,267		1,277		1,276		1,383		1,404
Total interest expense			9,958		10,992		12,333		13,635		14,748
Net interest income			26,801		27,797		25,400		24,456		21,038
Provision for loan losses			8,531		10,640		10,177		7,477		10,882
Noninterest income:
Service charges and fees			3,096		3,295		2,992		2,817		2,600
Gain on sales of loans			985		933		386		926		718
Gain (loss) on investment securities			7		3		10		(9)		2,921
Other noninterest income			90		257		322		3,527		238
Total noninterest income			4,178		4,488		3,710		7,261		6,477
Noninterest expense:
Salaries and employee benefits			7,580		7,349		7,824		6,887		7,239
Occupancy			2,783		3,159		2,958		2,789		2,731
FDIC and other insurance			1,587		1,101		1,134		2,319		991
Other real estate, net			106		39		90		103		(102)
Provision for unfunded loan commitments			(465)		147		(79)		(388)		90
Other general and administrative			3,667		4,246		3,601		2,980		3,650
Total noninterest expenses			15,258		16,041		15,528		14,690		14,599
Income before taxes			7,190		5,604		3,405		9,550		2,034
	Taxes on income		2,818		2,030		1,271		3,605		705
Net income			$         4,372		$         3,574		$         2,134		$         5,945		$         1,329
Net income available to common shareholders			$         3,329		$         2,534		$         1,097		$         4,910		$            296
PER SHARE DATA
Basic earnings per common share			$           0.23		$           0.17		$           0.07		$           0.34		$           0.02
Diluted earnings per common share			0.23		0.17		0.07		0.33		0.02
Common dividends declared per share			0.0000		0.0238		0.0238		0.0238		0.0238
Book value per share			16.79		16.46		16.43		16.30		16.01
Tangible book value per share*			16.33		15.99		15.96		15.84		15.52
COMMON STOCK
Shares issued			14,779,711		14,750,713		14,748,223		14,658,042		14,658,042
Less treasury shares			-		-		-		(15,602)		(49,930)
Outstanding shares			14,779,711		14,750,713		14,748,223		14,642,440		14,608,112
OTHER FINANCIAL DATA
Investment securities			$     260,837		$     263,439		$     258,790		$     243,077		$     179,006
Loans held for sale			25,586		43,134		36,526		26,006		76,404
Noncovered portfolio loans			2,516,397		2,539,294		2,572,111		2,587,230		2,526,293
Total noncovered loans			2,541,983		2,582,428		2,608,637		2,613,236		2,602,697
Covered portfolio loans			76,909		85,405		103,630		117,096		-
Total assets			3,074,923		3,108,291		3,029,347		3,038,985		2,928,133
Total deposits			2,554,165		2,592,730		2,473,162		2,452,295		2,330,089
Other borrowings			103,620		103,022		146,449		176,368		193,739
Subordinated debentures			81,963		81,963		81,963		81,963		81,963
Total shareholders' equity			315,341		309,778		309,118		305,416		300,406
Mortgage servicing portfolio			241,224		237,459		223,226		209,425		179,959
INTANGIBLE ASSET DATA
Goodwill			$         6,811		$         6,811		$         6,811		$         6,811		$         7,071
Core deposit intangible			3,967		4,103		4,240		4,378		2,498
Mortgage servicing rights			1,603		1,670		1,625		1,589		1,362
Nonmortgage servicing rights			5		6		7		7		8
Total intangible assets			$       12,386		$       12,590		$       12,683		$       12,785		$       10,939
Intangible amortization expense			$            359		$            381		$            344		$            391		$            204
Continued
____________________
*This is a Non-GAAP based financial measure.

SOUTHWEST BANCORP, INC.											Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA											Continued
(Dollars in thousands except per share)
			2010		2009
			Mar. 31		Dec. 31		Sep. 30		Jun. 30		Mar. 31
LOAN COMPOSITION
Noncovered
Real estate mortgage:
Commercial			$  1,230,009		$  1,212,409		$  1,221,739		$  1,208,819		$  1,098,587
One-to-four family residential			111,185		114,614		125,034		116,068		114,111
Real estate construction
Commercial			630,472		618,078		612,905		622,298		640,132
One-to-four family residential			34,996		41,109		39,009		51,292		79,309
Commercial			487,074		520,505		538,757		554,734		558,834
Installment and consumer:
Guaranteed student loans			10,199		36,163		30,949		18,477		69,792
Other			38,048		39,550		40,244		41,548		41,932
Total noncovered loans, including held for sale			2,541,983		2,582,428		2,608,637		2,613,236		2,602,697
Less allowance for loan losses			(65,168)		(62,413)		(57,777)		(51,753)		(46,262)
Total noncovered loans, net			$  2,476,815		$  2,520,015		$  2,550,860		$  2,561,483		$  2,556,435
Covered
Real estate mortgage:
Commercial			$       37,487		$       39,836		$       37,820		$       40,411		$              -
One-to-four family residential			10,843		12,630		17,246		17,889		-
Real estate construction
Commercial			11,173		12,515		14,178		14,277		-
One-to-four family residential			5,273		5,324		9,936		13,647		-
Commercial			10,807		13,412		21,475		27,203		-
Installment and consumer:			1,326		1,688		2,975		3,669		-
Total covered loans			$       76,909		$       85,405		$     103,630		$     117,096		$              -
DEPOSIT COMPOSITION
Non-interest bearing demand			$     317,896		$     324,829		$     309,767		$     291,014		$     274,175
Interest-bearing demand			119,757		74,201		82,622		94,060		85,629
Money market accounts			506,659		505,521		506,196		483,162		467,924
Savings accounts			25,871		25,730		25,636		25,660		15,797
Time deposits of $100,000 or more			944,871		1,004,439		888,814		905,202		849,814
Other time deposits			639,111		658,010		660,127		653,197		636,750
Total deposits			$  2,554,165		$  2,592,730		$  2,473,162		$  2,452,295		$  2,330,089
LOANS BY SEGMENT
Oklahoma banking			$  926,870		$  933,150		$  943,982		$  967,981		$  949,454
Texas banking			1,063,511		1,054,404		1,042,369		1,037,694		990,135
Kansas banking			342,596		359,633		400,710		412,314		309,774
Other states banking			260,329		277,512		288,680		286,337		276,930
Subtotal			2,593,306		2,624,699		2,675,741		2,704,326		2,526,293
Secondary market			25,586		43,134		36,526		26,006		76,404
Total loans			$2,618,892		$2,667,833		$2,712,267		$2,730,332		$2,602,697
NET INCOME BY SEGMENT
Oklahoma banking			$       2,820		$       3,807		$       2,529		$       3,284		$       3,210
Texas banking			1,656		3,591		2,686		3,662		1,119
Kansas banking			(355)		(2,328)		(1,180)		2,405		598
Other states banking			1,722		300		57		(78)		(1,974)
Subtotal			5,843		5,370		4,092		9,273		2,953
Secondary market			327		(3)		(201)		117		(61)
Other operations			(1,798)		(1,793)		(1,757)		(3,445)		(1,563)
Net income			$       4,372		$       3,574		$       2,134		$       5,945		$       1,329
OFFICES AND EMPLOYEES
FTE Employees			455		466		471		478		425
ATM's			43		44		44		44		40
Branches			23		24		24		24		18
Loan production offices			2		3		3		3		3
Assets per employee			$       6,758		$       6,670		$       6,432		$       6,358		$       6,890
____________________
Balance sheet amounts are as of period end unless otherwise noted.

SOUTHWEST BANCORP, INC.											Table 6
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands except per share)
			2010		2009
			Mar. 31		Dec. 31		Sep. 30		Jun. 30		Mar. 31
PERFORMANCE RATIOS
Return on average assets (annualized)			0.57%		0.46%		0.28%		0.81%		0.18%
Return on average common equity (annualized)			5.42		4.06		1.78		8.26		0.50
Return on average tangible equity (annualized)			5.84		4.78		2.87		8.12		1.83
Net interest margin (annualized)			3.59		3.71		3.39		3.41		3.00
Total dividends declared to net income			20.02		34.31		57.46		20.58		92.00
Effective tax rate			39.19		36.22		37.33		37.75		34.66
Efficiency ratio			49.25		49.69		53.34		46.32		53.06
NONPERFORMING ASSETS
Noncovered
Nonaccrual loans			$       97,858		$     105,887		$       94,715		$       74,205		$       73,383
90 days past due and accruing			4		310		10,578		8,409		10,552
Restructured			5,650		-		-		-		-
Total nonperforming loans			103,512		106,197		105,293		82,614		83,935
Other real estate			18,809		18,432		6,389		6,003		5,351
Total nonperforming assets			$     122,321		$     124,629		$     111,682		$       88,617		$       89,286
Potential problem loans			$     275,912		$     258,399		$     255,051		$     178,081		$     133,810
Covered
Nonaccrual loans			$       16,192		$       12,322		$       14,686		$         8,607		$              -
90 days past due and accruing			356		1,136		4,544		3,658		-
Total nonperforming loans			16,548		13,458		19,230		12,265		-
Other real estate			4,489		4,748		2,598		2,938		-
Total nonperforming assets			$       21,037		$       18,206		$       21,828		$       15,203		$              -
Potential problem loans			$         6,620		$         8,874		$         4,421		$         5,977		$              -
ALLOWANCE ACTIVITY
Balance, beginning of period			$       62,413		$       57,777		$       51,753		$       46,262		$       39,773
Charge offs			6,545		6,756		4,372		2,975		4,810
Recoveries			769		752		219		989		417
Net charge offs			5,776		6,004		4,153		1,986		4,393
Provision for loan losses			8,531		10,640		10,177		7,477		10,882
Balance, end of period			$       65,168		$       62,413		$       57,777		$       51,753		$       46,262
ASSET QUALITY RATIOS
Noncovered
Nonperforming assets to portfolio loans and
	other real estate		4.82%		4.87%		4.33%		3.41%		3.53%
Nonperforming loans to portfolio loans			4.11		4.18		4.09		3.19		3.32
Net loan charge-offs to average portfolio
	loans (annualized)		0.93		0.95		0.62		0.31		0.71
Allowance for loan losses to portfolio loans			2.59		2.46		2.25		2.00		1.83
Allowance for loan losses to
	nonperforming loans		62.96		58.77		54.87		62.64		55.12
Covered
Nonperforming assets to portfolio loans and
	other real estate		25.84%		20.19%		20.55%		12.67%		-
Nonperforming loans to portfolio loans			21.52		15.76		18.56		10.47		-
CAPITAL RATIOS
Average total shareholders' equity to
	average assets		10.18%		10.31%		10.24%		10.35%		10.47%
Leverage ratio			12.32		12.42		12.39		12.70		12.72
Tier 1 capital to risk-weighted assets			14.00		13.28		13.04		12.67		12.85
Total capital to risk-weighted assets			15.28		14.55		14.31		13.92		14.11
Tangible common equity to tangible assets**			7.87		7.61		7.79		7.65		7.76
REGULATORY CAPITAL DATA
Tier I capital			$     381,280		$     377,418		$     374,805		$     372,713		$     369,482
Total capital			415,955		413,438		411,201		409,764		405,613
Total risk adjusted assets			2,722,628		2,841,476		2,873,558		2,942,821		2,875,290
Average total assets			3,094,756		3,039,014		3,024,885		2,935,189		2,905,653
____________________
**Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
	Total shareholders' equity		$     315,341		$     309,778		$     309,118		$     305,416		$     300,406
	Less:
	Goodwill		6,811		6,811		6,811		6,811		7,071
	Preferred stock		67,205		67,037		66,872		66,710		66,549
	Tangible common equity		$     241,325		$     235,930		$     235,435		$     231,895		$     226,786
	Total assets		$  3,074,923		$  3,108,291		$  3,029,347		$  3,038,985		$  2,928,133
	Less goodwill		6,811		6,811		6,811		6,811		7,071
	Tangible assets		$  3,068,112		$  3,101,480		$  3,022,536		$  3,032,174		$  2,921,062
	Tangible common equity to tangible assets		7.87%		7.61%		7.79%		7.65%		7.76%
Balance sheet amounts and ratios are as of period end unless otherwise noted.

SOURCE Southwest Bancorp, Inc.

Copyright l 19 PR Newswire