Southwest bankcorp inc (OKSB)

[Kev2128]

Southwest Bancorp Inc. Reports Second Quarter 2011 Results Future Interest and Dividend Deferrals

STILLWATER, Okla., Jul 25, 2011 (GlobeNewswire via COMTEX) -- Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP), ("Southwest"), today reported a net loss available to common shareholders of $4.0 million, or $0.21 per diluted share for the second quarter of 2011, compared to net income available to common shareholders of $3.4 million, or $0.19 per diluted share for the second quarter of 2010, and $1.4 million, or $0.07 per diluted share for the first quarter of 2011. The net loss available to common shareholders for the six months ended June 30, 2011 was $2.6 million, or $0.13 per diluted share, compared to net income available to common shareholders for the six months ended June 30, 2010 of $6.7 million, or $0.41 per diluted share.
Second Quarter 2011 Results:

Rick Green, Southwest Bancorp's President and Chief Executive Officer, stated, "This was a challenging quarter for Southwest and Stillwater National Bank. We recorded a net loss year-to-date and for the second quarter of 2011, mainly as a result of new appraisals received on collateral dependent commercial real estate loans from states outside of our home markets of Oklahoma, Texas, and Kansas. Those effects were partially offset by our settlement of certain tax matters, described later in this release, as well as our stable net interest margins and expense control.

"We continue to focus on the resolution of problem assets. Nonperforming assets increased to $190.1 million and 8.66% of noncovered portfolio loans and other real estate from $176.5 million and 7.74% of noncovered portfolio loans and other real estate at March 31, 2011 and from $144.8 million and 6.11% of noncovered portfolio loans and other real estate at December 31, 2010. Our noncovered nonperforming assets were up from year-end, primarily due to an increase in nonperforming loans. The dollar amount of other real estate was up from year-end as well; however, the composition has changed as our resolution process continues. In the first six months of 2011 we placed $104.9 million on nonaccrual, but returned $8.4 million to accrual status, charged-off $35.5 million, wrote down $1.7 million on other real estate, transferred $13.3 million from nonperforming loans to other real estate, and received $3.5 million in resolutions and payments on nonperforming loans and $10.8 million from sales of other real estate. At quarter-end our potential problem loans were $291.2 million, up $58.0 million, or 25%, from year-end, and $49.0 million, or 20%, from June 30, 2010. We believe that levels of nonperforming loans and potential problem loans are likely to fluctuate up and down as the process continues.

"Our noncovered loans decreased by $173.2 million, or 7%, from year-end and $307.7 million, or 12%, from June 30, 2010. This decrease allowed us to reduce our commercial real estate mortgage and construction concentration to $1.6 billion, or 75%, of noncovered loans at June 30, 2011. Our healthcare credits at quarter-end totaled $670.6 million, or 31%, of noncovered loans, including $407.3 million of healthcare related commercial real estate mortgage and construction loans. Nonperforming healthcare assets at quarter-end were $20.6 million, or 11%, of total nonperforming assets. Approximately 81% of our nonperforming assets are in the more stable markets of Oklahoma, Texas, and Kansas.

"At June 30, 2011, the allowance for loan losses was 2.53% of noncovered portfolio loans, compared to 2.80% at year-end 2010 and 2.71% at June 30, 2010.

"The economy has not yet recovered, but we continue to be encouraged by the performance of the economies of our principal markets in Oklahoma, Texas, and Kansas and continue to make loans in each of our markets with an emphasis on healthcare lending and carefully controlled real estate collateralized credits.

"Lending and Credit Reorganization. Earlier this year we made significant organizational changes designed to improve our lending and credit functions. We continue to implement those changes. On July 11, following a thorough executive search process, we announced the Board of Directors' appointment of John Danielson as Executive Vice President and Chief Banking Officer, and Priscilla Barnes as Executive Vice President and Chief Credit Officer, each reporting to me.

"As Chief Banking Officer, John is responsible for the lending, deposit, and treasury services of Southwest's banking subsidiaries, Stillwater National Bank and Bank of Kansas, and for their banking offices in Oklahoma, Texas, and Kansas. John previously served as President of SNB-San Antonio, a division of Stillwater National. He has 25 years of banking industry experience. Before joining Southwest in 2006, John served as a regional banking manager for Compass Bank and Bank of America.

"As Chief Credit Officer, Priscilla is responsible for credit functions, including lending policy, credit analysis, credit approvals, risk rating accuracy, training, and workouts. She formerly served as interim Chief Credit Officer. Priscilla has over 31 years of banking industry experience and is a former Federal Reserve Bank examiner. She has been with Southwest since 2005.

"Regulatory Capital. As of June 30, 2011, 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 total regulatory capital was $474.0 million, for a total risk-based capital ratio of 20.20%, and Tier 1 capital was $444.1 million, for a Tier 1 risk-based capital ratio of 18.93%. Southwest's capital exceeded the minimum to be classified as "well-capitalized" by $239.3 million. Stillwater National Bank, Southwest's principal banking subsidiary, had total regulatory capital of $393.8 million, for a total risk-based capital ratio of 18.50%, and Tier 1 capital of $351.8 million, for a Tier 1 risk-based capital ratio of 16.53%. Stillwater National Bank exceeded the minimum to be classified as "well-capitalized" by $127.7 million. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators. Stillwater National Bank's leverage and total risk-based capital ratios also substantially exceeded the individual minimum ratios agreed to with the Comptroller of the Currency of 8.50% and 12.50%.

"Increased Core Funding Percentage. At June 30, 2011, total core funding, which includes all non-brokered time deposits and sweep repurchase agreements, comprised 90% of total funding, compared to 87% at March 31, 2011 and 86% at December 31, 2010. Wholesale funding, including FHLB borrowings, federal funds purchased, and brokered deposits, accounted for 10% of total funding compared to 13% at March 31, 2011 and 14% at December 31, 2010. Please see Table 6 for details on these non-GAAP financial measures.

"Future Interest and Dividend Deferrals. In July, we determined to defer future payments of interest on our debentures and dividends on related trust preferred securities and to defer payments of dividends on our Series A Preferred Securities issued under the U.S. Treasury Department's Capital Purchase Program. The terms of our debentures and trust preferred securities allow us to increase or decrease the deferral period without default or penalty. However, we plan to resume payments of dividends and debenture interest as soon as we achieve sufficient improvement in earnings and asset quality levels. We have taken important steps to help us achieve those goals. For further information, please see "Subsequent Event-Deferral of Interest and Dividend Payments" later in this release.

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

Financial Overview


Condition: Total assets were $2.7 billion and total loans were $2.2 billion at June 30, 2011, a decrease of 6% and 7%, respectively, from December 31, 2010.
At June 30, 2011 the allowance for loan losses was $54.6 million, a decrease of 19% and 16% from June 30, 2010 and December 31, 2010, respectively, and represented 2.53% of noncovered portfolio loans versus 2.71% and 2.80% at June 30, 2010 and December 31, 2010, respectively. 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. Provisions for loan losses are recorded in the amount necessary to maintain the allowance at the level management deems appropriate.

Excluding assets subject to loss sharing agreements with the FDIC ("covered assets"), nonperforming assets, consisting of nonaccrual loans, loans past due by 90 days or more and still accruing, and other real estate, were $190.1 million and 8.66% of noncovered portfolio loans and other real estate as of June 30, 2011, up $45.3 million from December 31, 2010. A breakdown of noncovered portfolio loans and noncovered nonperforming assets at June 30, 2011 by type is shown in the following table:

Noncovered Noncovered Percentage of
total
portfolio nonperforming noncovered

nonperforming
(dollars in thousands) loans assets assets
------------ ------------- -------------
Real estate construction $ 384,924 $ 73,486 38.65%
Commercial real estate 1,249,560 60,858 32.01
Commercial 404,081 15,224 8.00
Residential real estate
mortgages 83,196 1,457 0.77
Other consumer loans 34,335 153 0.08

Other real estate -- 38,956 20.49
------------ ------------- -------------

Total $ 2,156,096 $ 190,134 100.00%
============ ============= =============

Excluding covered loans, nonaccrual loans were $151.1 million as of June 30, 2011, an increase of $44.6 million, or 42%, from December 31, 2010, and an increase of $39.3 million, or 35%, from June 30, 2010. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due were less than $0.1 million as of June 30, 2011. These loans are deemed to have sufficient collateral and are in the process of collection.
Impaired loans, which include nonaccrual and restructured loans, are evaluated on an individual basis using the discounted present value of expected cash flows, the fair value of collateral, or the market value of the loan, and a specific allowance is recorded to reflect the appropriate net realizable value. Collateral dependent loans are evaluated for impairment based upon the fair value of the collateral. Charge-offs against the allowance for impaired loans are made when and to the extent amounts are deemed uncollectible. Independent appraisals on real estate collateral securing loans are obtained at origination. New appraisals are obtained periodically and following discovery of factors that may significantly affect the value of the collateral. Appraisals typically are received within 30 days of request. Results of appraisals on nonperforming and potential problem loans are reviewed promptly upon receipt and considered in the determination of the allowance for loan losses. Southwest is not aware of any significant time lapses in the process that have resulted, or would result in, a significant delay in determination of a credit weakness, the identification of a loan as nonperforming, or the measure of an impairment.

Performing loans that have been restructured to provide a reduction or deferral of interest or principal due to a weakening in the financial position of the borrower were $3.2 million and $2.2 million at June 30, 2011 and December 31, 2010, respectively.

Excluding covered loans, 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 $291.2 million at June 30, 2011, an increase of $58.0 million from December 31, 2010 and $49.0 million from June 30, 2010. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.

Year-to-date Results:

Summary: The net loss available to common shareholders was $2.6 million as of June 30, 2011, compared to net income available to common shareholders of $6.7 million as of June 30, 2010. The $9.3 million decrease in our net income available to common shareholders from 2010 is the result of a $12.9 million increase in the provision for loan losses, a $3.5 million decrease in net interest income, and a $1.3 million decrease in noninterest income, offset in part by a $7.6 million decrease in income tax expense and a $0.8 million decrease in noninterest expense.

On June 28, 2011, Southwest entered into a settlement agreement with the Oklahoma State Tax Commission (the "Commission") with respect to certain claims by the Commission. Southwest had previously recorded reserves against these claims. As a result of the settlement agreement, Southwest paid the sum of $4.8 million to the Commission and recorded a gain of $2.6 million, net of tax effect, upon reversal of excess reserves. The year-to-date calculated effective tax rate is 79.93%; however, when the effect of the reversal of the excess tax reserves in the second quarter is excluded, the effective tax rate year-to-date is 43.60%.

Net Interest Income: Net interest income totaled $50.4 million for the first six months of 2011, compared to $53.9 million for the first six months of 2010, a decrease of $3.5 million, or 6%. Year-to-date net interest margin was 3.78%, compared to 3.62% in 2010. Included in 2011 year-to-date net interest income was a net reduction of $0.1 million resulting from interest reversals on nonaccrual loans offset by the year-to-date adjustments of the discount accretion on loans and the loss share receivable. Included in 2010 year-to-date net interest income was $0.8 million of net recoveries from the resolution of nonperforming loans, additional discount accretion on loans and loss share receivable, offset in part by interest reversals on nonaccrual loans. The net effects of these adjustments on net interest margin were a 1 basis point decrease and a 5 basis point increase, respectively.

Provision for Loan Losses and Net Charge Offs: The provision for loan losses totaled $29.2 million for the first six months of 2011, compared to $16.3 million for the first six months of 2010. Net charge-offs totaled $39.8 million, or 3.49% (annualized) of average portfolio loans year-to-date as of June 30, 2011, compared to $11.7 million, or 0.91% (annualized) of average portfolio loans for the same period in the prior year.

A significant reason for the increase in the year-to-date provision was an unanticipated decline in collateral value of collateral dependent commercial real estate loans in markets other than our primary markets of Oklahoma, Texas, and Kansas. As of June 30, 2011, eleven relationships accounted for $32.5 million in charge-offs, of which $20.6 million were on four out of market relationships. At June 30, 2011, total out of market commercial real estate and construction loans was $158.4 million, of which $75.9 million were internally rated substandard or doubtful.

Noninterest Income: Noninterest income totaled $6.9 million for the first six months of 2011, compared to $8.1 million for the first six months of 2010. The decrease in noninterest income was primarily the result of a $0.8 million decline in gain on sale of loans, mainly from declined student loan sales, and a $0.3 million decline in other noninterest income.

Noninterest Expense: Noninterest expense totaled $30.6 million for the first six months of 2011, compared to $31.4 million for the first six months of 2010. The decrease consists of a $2.4 million decrease in other general and administrative expense, primarily from the settlement of Oklahoma state tax claims for less than the amount accrued, a $0.9 million decrease in FDIC and other insurance expense, and a $0.7 million decrease in personnel expense, primarily as a result of a decrease in the profit sharing contribution, offset in part by a $2.3 million increase in other real estate expense and a $1.1 million increase in provision for unfunded loan commitments.

Second Quarter Results:

Summary: For the second quarter of 2011, Southwest incurred a net loss available to common shareholders of $4.0 million, compared to net income available to common shareholders of $3.4 million in the second quarter of 2010 and $1.4 million in the first quarter of 2011. The decrease from the second quarter of 2010 was the result of a $12.4 million increase in the provision for loan losses, a $2.1 million decrease in net interest income, and a $0.4 million decrease in noninterest income, offset in part by a $6.3 million decrease in income taxes and a $1.2 million decrease in noninterest expense. The decrease from the first quarter of 2011 was the result of an $11.1 million increase in the provision for loan losses and a $0.4 million decrease in net interest income, offset in part by a $5.1 million decrease in income taxes, a $0.6 million decrease in noninterest expense, and a $0.4 million increase in noninterest income.

For the second quarter of 2011, the calculated effective tax rate is 54.53%; however, when the reversal of the excess tax reserves is excluded, the effective tax rate for the second quarter is 41.46%.

Net Interest Income: Net interest income totaled $25.0 million for the second quarter of 2011, compared to $27.1 million for the second quarter of 2010, a decrease of $2.1 million, or 8%, and $25.4 million for the first quarter of 2011, a decrease of $0.4 million, or 2%. Net interest margin was 3.79% for the second quarter of 2011, compared to 3.65% for the second quarter of 2010 and 3.78% for the first quarter of 2011. Included in the second quarter of 2011 net interest margin was a net reduction of $0.2 million resulting from interest reversal on nonaccrual loans offset by the quarterly adjustment of the discount accretion on loans and the loss share receivable. Included in the second quarter 2010 net interest margin was a net recovery of $0.5 million from the quarterly adjustment of the discount accretion on loans and loss share receivable. Included in the first quarter of 2011 net interest margin was a net recovery of $0.1 million from the quarterly adjustment of the discount accretion on loans and the loss share receivable offset by interest reversals on nonaccrual loans. The net effects of these adjustments on net interest margin were a 3 basis point decrease, a 6 basis point increase, and a 1 basis point increase for each quarter, respectively.

Provision for Loan Losses and Net Charge-Offs: The provision for loan losses totaled $20.1 million for the second quarter of 2011, compared to $7.8 million for the second quarter of 2010 and $9.1 million for the first quarter of 2011. Net charge-offs totaled $26.9 million, or 4.76% (annualized) of average portfolio loans for the second quarter of 2011, compared to $5.9 million, or 0.92% (annualized) of average portfolio loans for the second quarter of 2010 and $13.0 million, or 2.25% (annualized) of average portfolio loans for the first quarter of 2011.

A significant reason for the increased provision for the second quarter was an unanticipated decline in collateral value of collateral dependent commercial real estate loans in markets other than our primary markets of Oklahoma, Texas, and Kansas. For the second quarter of 2011, eight relationships accounted for $23.0 million in charge-offs, of which $13.6 million were on three out of market relationships.

Noninterest Income: Noninterest income totaled $3.6 million for the second quarter of 2011, compared to $4.0 million for the second quarter of 2010 and $3.2 million for the first quarter of 2011. The decrease in noninterest income from the second quarter of 2010 was primarily the result of a $0.4 million decrease in other noninterest income. The increase from the first quarter of 2011 was primarily the result of a $0.4 million increase in service charges and fees.

Noninterest Expense: Noninterest expense totaled $15.0 million for the second quarter of 2011, compared to $16.1 million for the second quarter of 2010 and $15.6 million for the first quarter of 2011. The decrease from second quarter 2010 consisted of a $2.4 million decrease in other general and administrative expense, primarily from the settlement of Oklahoma state tax claims for less than the amount accrued, a $0.7 million decrease in personnel expense, primarily as a result of a decrease in the profit sharing contribution, and a $0.6 million decrease in FDIC and other insurance expense, offset in part by a $2.0 million increase in other real estate expense and a $0.6 million increase in provision for unfunded loan commitments. The decrease from first quarter 2011 consisted of a $2.0 million decrease in other general and administrative expense, a $0.5 million decrease in personnel expense, and a $0.3 million decrease in FDIC and other insurance expense, offset in part by a $2.2 million increase in other real estate expense.

Southwest Bancorp and Subsidiaries


Southwest is the bank holding company for Stillwater National Bank and Trust Company ("Stillwater National") and Bank of Kansas. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker(R). We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At June 30, 2011 we had total assets of $2.7 billion, deposits of $2.1 billion, and shareholders' equity of $376.9 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 June 30, 2011, approximately $670.6 million, or 31%, of our noncovered loans were loans to individuals and businesses in the healthcare industry.

We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or "spec" residential property credits. Additionally, subprime residential lending has never been a part of our business strategy, and our exposure to subprime mortgage loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of June 30, 2011 approximately $1.6 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $407.3 million of loans to individuals and businesses in the healthcare industry.

We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At June 30, 2011 our Texas segment accounted for $911.1 million, or 41% of total portfolio loans, followed by $834.2 million, or 38%, from our Oklahoma segment, $260.4 million, or 12%, from our Kansas segment, and $196.5 million, or 9%, 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.

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

Subsequent Event-Deferral of Interest and Dividend Payments


In July 2011, Southwest Bancorp, Inc. ("Southwest") determined to suspend payments of interest on its three issues of outstanding debentures effective August 1, 2011, and dividends on the related trust preferred securities.
The terms of the debentures allow Southwest to defer payments of interest for up to 20 consecutive quarterly periods without default or penalty. These terms also allow Southwest to resume payments at the end of any deferral period, or to extend the deferral up to the maximum 20 quarters in total. No deferral can extend past the maturity date of the debenture.

We plan to resume payments of dividends and debenture interest as soon as we achieve sufficient improvement in earnings and asset quality levels. We are taking important steps to help us achieve those goals. These included:

-- Capital Levels. Capital levels for Southwest and each of its bank
subsidiaries well exceed all applicable capital standards. We increased
and maintained our capital ratios by (a) sale of capital securities,
including public securities offerings in mid-2008 and 2010, and the sale
of preferred securities to the Treasury Department in late 2008, (b) net
quarterly earnings, and (c) intentional reduction of our loan portfolio.


-- Earnings. We had a net loss this quarter and year-to-date, but this
follows a long-record of successive quarterly earnings. Our interest
margins and net interest income are solid, and we remain one of the most
efficient banking organizations in terms of operating expense control.


-- Asset Quality. Our problem assets and potential problem assets are too
high. The keys to improvement in our net income are improvement in asset
quality and reduction in loan loss provision expense. To that end this
year we have (a) substantially reorganized our lending and credit
functions to increase their independence and improve oversight; (b)
installed a new Chief Credit Officer in the second quarter reporting
directly to the CEO with authority over the entire credit and work-out
functions; (c) began staffing up credit and work-out areas with
experienced bankers; (d) increased our emphasis on timely and accurate
loan grading and consistency among our third party loan review firm, our
internal credit function, and federal regulators' grading guidelines;
and (e) begun a special review of larger problem credits.


Interest will continue to accrue on the debentures, and dividends will continue to accrue on the related trust preferred securities while we work toward resuming payments.
Southwest's trust preferred securities were issued by the following subsidiary trusts: Southwest Capital Trust II, which trades on the NASDAQ Global Select Market under the symbol "OKSBP"; OKSB Statutory Trust I; and SBI Capital Trust II. At June 30, 2011, $82.0 million of debentures were outstanding.

In addition, Southwest has determined to defer payment of dividends on its Series A Preferred Securities issued under the U.S. Treasury Department's Capital Purchase Program, effective for the next dividend payment, due August 15, 2011. Dividends on the Preferred Securities may not be paid while interest on Southwest's debentures has been deferred, but will continue to accrue. At June 30, 2011, $70.0 million of Preferred Securities were outstanding.

The deferrals on interest and dividends are intended to preserve liquidity at the holding company level, which may be used to inject funds in its bank subsidiaries or for other corporate purposes. Because the interest on the debentures, the dividends on the related trust preferred securities, and the dividends on the Preferred Securities will continue to accrue, these deferrals are not expected to have any significant effect on the net income or net income available to common shareholders of Southwest. During the year ended December 31, 2010, total interest expense on the debentures, which is deductible for income tax purposes, totaled $5.1 million, and dividends on the Preferred Securities, which are not deductible for income tax purposes, totaled $3.5 million.

Forward-Looking Statements


This earnings 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 timing 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 our 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 June 30, 2011 through the date its financial statements are filed with the Securities and Exchange Commission. The June 30, 2011 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements.


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


SOUTHWEST BANCORP, INC. Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except
per share)

Second Quarter First Quarter
-------------------------------- ------------------------------ ---------------------
QUARTERLY HIGHLIGHTS % %

2011 2010 Change 2011 Change
---------- ---------- ------ ---------- ---------
Operations
Net interest income $ 24,985 $ 27,108 (8)% $ 25,421 (2)%
Provision for loan losses 20,140 7,776 159 9,050 123
Noninterest income 3,604 3,962 (9) 3,249 11
Noninterest expense 14,980 16,146 (7) 15,625 (4)
Income (loss) before taxes (6,531) 7,148 (191) 3,995 (263)
Taxes on income (3,561) 2,737 (230) 1,534 (332)
Net income (loss) (2,970) 4,411 (167) 2,461 (221)
Net income (loss) available to
common shareholders (4,027) 3,366 (220) 1,408 (386)
Diluted earnings per share (0.21) 0.19 (211) 0.07 (400)
Balance Sheet
Total assets 2,660,495 3,010,835 (12) 2,779,028 (4)
Loans held for sale 37,204 25,615 45 37,348 (0)
Noncovered portfolio loans 2,156,096 2,475,348 (13) 2,241,080 (4)
Covered portfolio loans 46,153 68,006 (32) 49,117 (6)
Total deposits 2,094,236 2,444,939 (14) 2,218,571 (6)
Total shareholders' equity 376,930 375,319 -- 379,350 (1)
Book value per common share 15.89 15.88 -- 16.02 (1)
Key Ratios
Net interest margin 3.79% 3.65% 3.78%
Efficiency ratio 52.40 51.97 54.50
Total capital to risk-weighted
assets 20.20 17.78 19.77
Nonperforming loans to
portfolio loans - noncovered 7.01 4.53 6.04
Shareholders' equity to total
assets 14.17 12.47 13.65
Tangible common equity to
tangible assets* 11.38 10.02 10.99
Return on average assets
(annualized) (0.43) 0.58 0.35
Return on average common equity
(annualized) (5.11) 4.64 1.81
Return on average tangible
common equity (annualized)** (5.22) 4.75 1.85


---------------------------------------------------------------------------------------

YEAR-TO-DATE HIGHLIGHTS Six Months
------------------------------
%

2011 2010 Change
---------- ---------- ------
Operations
Net interest income $ 50,406 $ 53,909 (6)%
Provision for loan losses 29,190 16,307 79
Noninterest income 6,853 8,140 (16)
Noninterest expense 30,605 31,404 (3)
Income (loss) before taxes (2,536) 14,338 (118)
Taxes on income (2,027) 5,555 (136)
Net income (loss) (509) 8,783 (106)
Net income (loss) available to
common
shareholders (2,619) 6,695 (139)
Diluted earnings per share (0.13) 0.41 (132)
Balance Sheet
Total assets 2,660,495 3,010,835 (12)
Loans held for sale 37,204 25,615 45
Noncovered portfolio loans 2,156,096 2,475,348 (13)
Covered portfolio loans 46,153 68,006 (32)
Total deposits 2,094,236 2,444,939 (14)
Total shareholders' equity 376,930 375,319 --
Book value per common share 15.89 15.88 --
Key Ratios
Net interest margin 3.78 % 3.62 %
Efficiency ratio (GAAP-based) 53.45 50.61
Total capital to risk-weighted
assets 20.20 17.78
Nonperforming loans to
portfolio loans - noncovered 7.01 4.53
Shareholders' equity to total
assets 14.17 12.47
Tangible common equity to
tangible assets* 11.38 10.02
Return on average assets (0.04) 0.58
Return on average common equity (1.67) 5.00
Return on average tangible
common equity** (1.71) 5.13


---------------------------------------------------------------------------------------
Balance sheet amounts and ratios are as of period end unless otherwise noted.
* This is a Non-GAAP financial measure. Please see Table 7 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, except per share)

December
June 30, 31, June 30,

2011 2010 2010
----------- ----------- -----------
Assets
Cash and due from banks $ 26,368 $ 26,478 $ 23,442

Interest-bearing deposits 41,733 41,018 101,848
----------- ----------- -----------
Cash and cash equivalents 68,101 67,496 125,290
Securities held to maturity
(fair values of $15,461,
$14,029, $6,731, respectively) 15,419 14,304 6,670
Securities available for sale
(amortized cost of $248,004,
$246,649, $232,097,
respectively) 252,734 248,221 240,438
Loans held for sale 37,204 35,194 25,615
Noncovered loans receivable 2,156,096 2,331,293 2,475,348

Less: Allowance for loan losses (54,575) (65,229) (67,055)
----------- ----------- -----------
Net noncovered loans
receivable 2,101,521 2,266,064 2,408,293
Covered loans receivable
(includes loss share: $12,101,
$14,370, and $18,663,
respectively) 46,153 53,628 68,006
----------- ----------- -----------
Net loans receivable 2,147,674 2,319,692 2,476,299
Accrued interest receivable 7,973 8,590 9,589
Income tax receivable 11,393 -- --
Premises and equipment, net 23,158 23,772 25,560
Noncovered other real estate 38,956 37,722 27,634
Covered other real estate 3,806 4,187 4,352
Goodwill 6,811 6,811 6,811
Other intangible assets, net 5,069 5,371 5,424

Other assets 42,197 49,181 57,153
----------- ----------- -----------

Total assets $ 2,660,495 $ 2,820,541 $ 3,010,835
=========== =========== ===========

Liabilities
Deposits:
Noninterest-bearing demand $ 389,027 $ 377,182 $ 326,721
Interest-bearing demand 124,346 92,584 102,218
Money market accounts 465,269 495,253 510,549
Savings accounts 29,586 26,665 25,321
Time deposits of $100,000 or
more 570,116 694,565 861,110

Other time deposits 515,892 566,479 619,020
----------- ----------- -----------
Total deposits 2,094,236 2,252,728 2,444,939
Accrued interest payable 1,574 1,577 2,567
Income tax payable -- 2,878 4,053
Other liabilities 9,110 8,981 8,958
Other borrowings 96,682 94,602 93,036

Subordinated debentures 81,963 81,963 81,963
----------- ----------- -----------
Total liabilities 2,283,565 2,442,729 2,635,516

Shareholders' equity
Serial preferred stock;
2,000,000 shares authorized;
70,000 shares issued and
outstanding 68,084 67,724 67,375
Common stock -- $1 par value;
40,000,000 shares authorized;
19,439,167, 19,421,900,
19,388,797 shares issued and
outstanding, respectively 19,439 19,422 19,389
Additional paid-in capital 99,005 98,894 98,712
Retained earnings 188,174 190,793 184,710
Accumulated other comprehensive
income 2,228 979 5,133
----------- ----------- -----------

Total shareholders' equity 376,930 377,812 375,319
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 2,660,495 $ 2,820,541 $ 3,010,835
=========== =========== ===========


SOUTHWEST BANCORP, INC. Table 3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share)

For the three
months For the six months

ended June 30, ended June 30,
------------------- --------------------

2011 2010 2011 2010
--------- -------- --------- ---------
Interest income
Loans $ 29,478 $ 33,891 $ 60,017 $ 68,263
Investment securities 1,864 2,175 3,610 4,345

Other interest-earning assets 130 213 270 430
--------- -------- --------- ---------
Total interest income 31,472 36,279 63,897 73,038

Interest expense
Interest-bearing deposits 4,531 7,371 9,664 15,545
Other borrowings 494 524 991 1,041

Subordinated debentures 1,462 1,276 2,836 2,543
--------- -------- --------- ---------

Total interest expense 6,487 9,171 13,491 19,129
--------- -------- --------- ---------

Net interest income 24,985 27,108 50,406 53,909


Provision for loan losses 20,140 7,776 29,190 16,307
--------- -------- --------- ---------

Net interest income after
provision for loan losses 4,845 19,332 21,216 37,602

Noninterest income
Service charges and fees 3,231 3,170 6,109 6,266
Gain on sales of loans 401 416 595 1,401
Gain on investment securities -- 34 -- 41
Other noninterest income
(loss) (28) 342 149 432
--------- -------- --------- ---------
Total noninterest income 3,604 3,962 6,853 8,140

Noninterest expense
Salaries and employee benefits 6,974 7,637 14,489 15,217
Occupancy 2,703 2,836 5,507 5,619
FDIC and other insurance 937 1,521 2,180 3,108
Other real estate, net 2,602 629 3,038 735

General and administrative 1,764 3,523 5,391 6,725
--------- -------- --------- ---------

Total noninterest expense 14,980 16,146 30,605 31,404
--------- -------- --------- ---------
Income (loss) before taxes (6,531) 7,148 (2,536) 14,338

Taxes on income (3,561) 2,737 (2,027) 5,555
--------- -------- --------- ---------

Net income (loss) $ (2,970) $ 4,411 $ (509) $ 8,783
========= ======== ========= =========
Net income (loss) available to
common shareholders $ (4,027) $ 3,366 $ (2,619) $ 6,695
========= ======== ========= =========

Basic earnings per common share $ (0.21) $ 0.19 $ (0.13) $ 0.41
Diluted earnings per common
share (0.21) 0.19 (0.13) 0.41
Common dividends declared per
share -- -- -- --


SOUTHWEST BANCORP, INC. Table 4
UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
(Dollars in thousands)


For the three months ended June 30,
--------------------------------------------------------------------

2011 2010
--------------------------------- ---------------------------------
Average Average Average Average

Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- -------- ---------- ----------- -------- ----------
Assets
Noncovered loans $ 2,250,678 $ 28,551 5.14% $ 2,534,565 $ 32,610 5.22%
Covered loans 47,427 927 7.93 72,121 1,281 7.20
Investment securities 266,344 1,864 2.81 239,712 2,175 3.64
Other interest-earning
assets 82,898 130 129,188 213
----------- -------- 0.63 ----------- -------- 0.66
Total interest-earning
assets 2,647,347 31,472 4.77 2,975,586 36,279 4.89

Other assets 99,803 67,454
----------- -----------

Total assets $ 2,747,150 $ 3,043,040
=========== ===========

Liabilities and
Shareholders' Equity
Interest-bearing demand
deposits $ 112,942 $ 103 0.37% $ 107,693 $ 140 0.52%
Money market accounts 490,559 582 0.48 505,863 1,037 0.82
Savings accounts 29,154 10 0.14 25,615 16 0.25

Time deposits 1,165,606 3,836 1,527,074 6,178
----------- -------- 1.32 ----------- -------- 1.62
Total interest-bearing
deposits 1,798,261 4,531 1.01 2,166,245 7,371 1.36
Other borrowings 87,991 494 2.25 97,909 524 2.15

Subordinated debentures 81,963 1,462 81,963 1,276
----------- -------- 7.13 ----------- -------- 6.23
Total interest-bearing
liabilities 1,968,215 6,487 1.32 9,171 1.57
-------- ---------- 2,346,117 -------- ----------

Noninterest-bearing
demand deposits 369,700 321,651
Other liabilities 25,066 16,921

Shareholders' equity 384,169 358,351
----------- -----------
Total liabilities and
shareholders' equity $ 2,747,150 $ 3,043,040
=========== ===========

Net interest income and
spread $ 24,985 3.45% $ 27,108 3.32%
======== ========== ======== ==========

Net interest margin (1) 3.79% 3.65%
========== ==========
Average interest-earning
assets to average
interest-bearing
liabilities 134.50% 126.83%
=========== ===========

(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 six months ended June 30,
--------------------------------------------------------------------

2011 2010
--------------------------------- ---------------------------------
Average Average Average Average

Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- -------- ---------- ----------- -------- ----------
Assets
Noncovered loans $ 2,288,570 $ 58,206 5.16% $ 2,560,937 $ 65,591 5.19%
Covered loans 49,449 1,811 7.43 77,055 2,672 7.03
Investment securities 261,391 3,610 2.79 240,489 4,345 3.64
Other interest-earning
assets 87,770 270 122,319 430
----------- -------- 0.62 ----------- -------- 0.71
Total interest-earning
assets 2,687,180 63,897 4.80 3,000,800 73,038 4.91

Other assets 95,825 73,314
----------- -----------

Total assets $ 2,783,005 $ 3,074,114
=========== ===========

Liabilities and
Shareholders' Equity
Interest-bearing demand
deposits $ 112,693 $ 227 0.41% $ 107,602 $ 272 0.51%
Money market accounts 490,931 1,259 0.52 505,178 2,050 0.82
Savings accounts 28,451 26 0.18 25,622 32 0.25

Time deposits 1,206,650 8,152 1,588,142 13,191
----------- -------- 1.36 ----------- -------- 1.67
Total interest-bearing
deposits 1,838,725 9,664 1.06 2,226,544 15,545 1.41
Other borrowings 89,088 991 2.24 97,604 1,041 2.15

Subordinated debentures 81,963 2,836 81,963 2,543
----------- -------- 6.92 ----------- -------- 6.21
Total interest-bearing
liabilities 2,009,776 13,491 1.35 19,129 1.60
-------- ---------- 2,406,111 -------- ----------

Noninterest-bearing
demand deposits 367,444 312,717
Other liabilities 22,445 17,971

Shareholders' equity 383,340 337,315
----------- -----------
Total liabilities and
shareholders' equity $ 2,783,005 $ 3,074,114
=========== ===========

Net interest income and
spread $ 50,406 3.45% $ 53,909 3.31%
======== ========== ======== ==========

Net interest margin (1) 3.78% 3.62%
========== ==========
Average interest-earning
assets to average
interest-bearing
liabilities 133.71% 124.72%
=========== ===========

(1) Net interest margin = annualized net interest income / average interest-earning assets


SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands, except per share)


----------------------------------------------------------------------------

2011 2010
------------------------ --------------------------------------------------

Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Interest income:
Loans $ 29,478 $ 30,539 $ 32,831 $ 32,824 $ 33,891 $ 34,372
Investment securities 1,864 1,746 1,724 2,079 2,175 2,170

Other interest-earning assets 130 140 131 180 213 217
----------- ----------- ----------- ----------- ----------- -----------
Total interest income 31,472 32,425 34,686 35,083 36,279 36,759
Interest expense:
Interest bearing demand
deposits 103 124 85 111 140 132
Money market accounts 582 677 885 976 1,037 1,013
Savings accounts 10 16 17 15 16 16
Time deposits of $100,000 or
more 2,077 2,349 2,703 3,128 3,517 4,024

Other time deposits 1,759 1,967 2,230 2,572 2,661 2,989
----------- ----------- ----------- ----------- ----------- -----------
Total interest-bearing
deposits 4,531 5,133 5,920 6,802 7,371 8,174
Other borrowings 494 497 514 524 524 517

Subordinated debentures 1,462 1,374 1,282 1,305 1,276 1,267
----------- ----------- ----------- ----------- ----------- -----------

Total interest expense 6,487 7,004 7,716 8,631 9,171 9,958
----------- ----------- ----------- ----------- ----------- -----------
Net interest income 24,985 25,421 26,970 26,452 27,108 26,801
Provision for loan losses 20,140 9,050 7,265 11,988 7,776 8,531
Noninterest income:
Service charges and fees 3,231 2,878 3,144 2,994 3,170 3,096
Gain on sales of loans 401 194 682 653 416 985
Gain on investment securities -- -- 15 2,605 34 7
Other noninterest income
(loss) (28) 177 248 83 342 90
----------- ----------- ----------- ----------- ----------- -----------
Total noninterest income 3,604 3,249 4,089 6,335 3,962 4,178
Noninterest expense:
Salaries and employee
benefits 6,974 7,515 7,516 7,183 7,637 7,580
Occupancy 2,703 2,804 2,717 2,835 2,836 2,783
FDIC and other insurance 937 1,243 1,333 1,347 1,521 1,587
Other real estate, net 2,602 436 1,255 228 629 106
Provision for unfunded loan
commitments 128 (55) (332) (294) (512) (465)
Other general and
administrative 1,636 3,682 4,322 4,119 4,035 3,667
----------- ----------- ----------- ----------- ----------- -----------

Total noninterest expense 14,980 15,625 16,811 15,418 16,146 15,258
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before taxes (6,531) 3,995 6,983 5,381 7,148 7,190

Taxes on income (3,561) 1,534 2,675 1,508 2,737 2,818
----------- ----------- ----------- ----------- ----------- -----------

Net income (loss) $ (2,970) $ 2,461 $ 4,308 $ 3,873 $ 4,411 $ 4,372
=========== =========== =========== =========== =========== ===========
Net income (loss) available
to common shareholders (4,027) $ 1,408 $ 3,257 $ 2,825 $ 3,366 $ 3,329
=========== =========== =========== =========== =========== ===========
PER SHARE DATA
Basic earnings per common
share $ (0.21) $ 0.07 $ 0.17 $ 0.15 $ 0.19 $ 0.23
Diluted earnings per common
share (0.21) 0.07 0.17 0.15 0.19 0.23
Book value per common share 15.89 16.02 15.97 15.93 15.88 16.79
Tangible book value per
share* 15.54 15.67 15.62 15.58 15.53 16.33
COMMON STOCK
Shares issued and outstanding 19,439,167 19,438,290 19,421,900 19,395,675 19,388,797 14,779,711
OTHER FINANCIAL DATA
Investment securities $ 268,153 $ 258,436 $ 262,525 $ 240,844 $ 247,108 $ 241,693
Loans held for sale 37,204 37,348 35,194 34,868 25,615 25,586
Noncovered portfolio loans 2,156,096 2,241,080 2,331,293 2,412,796 2,475,348 2,516,397
Total noncovered loans 2,193,300 2,278,428 2,366,487 2,447,664 2,500,963 2,541,983
Covered portfolio loans 46,153 49,117 53,628 60,558 68,006 76,909
Total assets 2,660,495 2,779,028 2,820,541 2,905,275 3,010,835 3,074,923
Total deposits 2,094,236 2,218,571 2,252,728 2,345,648 2,444,939 2,554,165
Other borrowings 96,682 85,332 94,602 82,506 93,036 103,620
Subordinated debentures 81,963 81,963 81,963 81,963 81,963 81,963
Total shareholders' equity 376,930 379,350 377,812 376,576 375,319 315,341
Mortgage servicing portfolio 283,083 281,271 278,146 261,266 249,632 241,224
INTANGIBLE ASSET DATA
Goodwill $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811
Core deposit intangible 3,285 3,420 3,557 3,693 3,830 3,967
Mortgage servicing rights 1,781 1,718 1,810 1,661 1,589 1,603

Nonmortgage servicing rights 3 3 4 4 5 5
----------- ----------- ----------- ----------- ----------- -----------

Total intangible assets $ 11,880 $ 11,952 $ 12,182 $ 12,169 $ 12,235 $ 12,386
=========== =========== =========== =========== =========== ===========
Intangible amortization
expense $ 222 $ 361 $ 402 $ 392 $ 350 $ 359
----------- ----------- ----------- ----------- ----------- -----------
Continued
____________________
*This is a Non-GAAP based financial measure.


SOUTHWEST BANCORP, INC. Table 6
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA Continued
(Dollars in thousands, except per share)


----------------------------------------------------------------------------

2011 2010
------------------------ --------------------------------------------------

Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
----------- ----------- ----------- ----------- ----------- -----------
LOAN COMPOSITION
Noncovered
Real estate mortgage:
Commercial $ 1,262,753 $ 1,302,164 $ 1,310,464 $ 1,271,278 $ 1,251,709 $ 1,230,009
One-to-four family
residential 87,407 87,286 89,800 109,980 106,814 111,185
Real estate construction
Commercial 372,576 403,635 441,265 527,773 589,590 630,472
One-to-four family
residential 26,400 26,758 27,429 30,527 35,129 34,996
Commercial 404,229 416,392 452,626 463,132 471,004 487,074
Installment and consumer:
Guaranteed student loans 5,600 5,700 5,843 5,960 7,389 10,199

Other 34,335 36,493 39,060 39,014 39,328 38,048
----------- ----------- ----------- ----------- ----------- -----------
Total noncovered loans,
including held for sale 2,193,300 2,278,428 2,366,487 2,447,664 2,500,963 2,541,983
Less allowance for loan
losses (54,575) (61,285) (65,229) (72,418) (67,055) (65,168)
----------- ----------- ----------- ----------- ----------- -----------

Total noncovered loans, net $ 2,138,725 $ 2,217,143 $ 2,301,258 $ 2,375,246 $ 2,433,908 $ 2,476,815
=========== =========== =========== =========== =========== ===========
Covered
Real estate mortgage:
Commercial $ 26,976 $ 28,929 $ 30,997 $ 33,428 $ 36,107 $ 37,487
One-to-four family
residential 8,113 8,192 9,122 10,071 10,277 10,843
Real estate construction
Commercial 6,001 6,144 6,840 7,464 8,190 11,173
One-to-four family
residential 172 281 439 1,823 3,853 5,273
Commercial 4,461 5,021 5,554 6,816 8,487 10,807

Installment and consumer: 430 550 676 956 1,092 1,326
----------- ----------- ----------- ----------- ----------- -----------

Total covered loans $ 46,153 $ 49,117 $ 53,628 $ 60,558 $ 68,006 $ 76,909
=========== =========== =========== =========== =========== ===========
DEPOSIT COMPOSITION
Non-interest bearing demand $ 389,027 $ 369,013 $ 377,182 $ 329,655 $ 326,721 $ 317,896
Interest-bearing demand 124,346 112,731 92,584 86,153 102,218 119,757
Money market accounts 465,269 486,770 495,253 518,422 510,549 506,659
Savings accounts 29,586 28,440 26,665 25,556 25,321 25,871
Time deposits of $100,000 or
more 570,116 669,817 694,565 795,303 861,110 944,871

Other time deposits 515,892 551,800 566,479 590,559 619,020 639,111
----------- ----------- ----------- ----------- ----------- -----------

Total deposits** $ 2,094,236 $ 2,218,571 $ 2,252,728 $ 2,345,648 $ 2,444,939 $ 2,554,165
=========== =========== =========== =========== =========== ===========
LOANS BY SEGMENT
Oklahoma banking $ 834,189 $ 838,006 $ 871,393 $ 890,598 $ 914,004 $ 926,870
Texas banking 911,134 953,123 982,845 1,024,863 1,041,228 1,063,511
Kansas banking 260,431 272,685 289,642 309,240 329,157 342,596

Other states banking 196,495 226,383 241,041 248,653 258,965 260,329
----------- ----------- ----------- ----------- ----------- -----------
Subtotal 2,202,249 2,290,197 2,384,921 2,473,354 2,543,354 2,593,306

Secondary market 37,204 37,348 35,194 34,868 25,615 25,586
----------- ----------- ----------- ----------- ----------- -----------

Total loans $ 2,239,453 $ 2,327,545 $ 2,420,115 $ 2,508,222 $ 2,568,969 $ 2,618,892
=========== =========== =========== =========== =========== ===========
NET INCOME (LOSS) BY SEGMENT
Oklahoma banking $ 5,290 $ 3,435 $ 4,205 $ 3,399 $ 4,387 $ 2,857
Texas banking 1,575 1,079 4,001 (1,801) 757 1,685
Kansas banking 971 131 293 (306) 940 (322)

Other states banking (9,039) (924) (3,674) 494 (477) 1,750
----------- ----------- ----------- ----------- ----------- -----------
Subtotal (1,203) 3,721 4,825 1,786 5,607 5,970
Secondary market 127 (13) 444 173 83 310

Other operations (1,894) (1,247) (961) 1,914 (1,279) (1,908)
----------- ----------- ----------- ----------- ----------- -----------

Net income (loss) $ (2,970) $ 2,461 $ 4,308 $ 3,873 $ 4,411 $ 4,372
=========== =========== =========== =========== =========== ===========
OFFICES AND EMPLOYEES
FTE Employees 437 424 432 440 447 455
Branches 23 23 23 23 23 24
Loan production offices 2 2 2 2 2 2
Assets per employee $ 6,088 $ 6,554 $ 6,529 $ 6,603 $ 6,736 $ 6,758
____________________
**Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)
Total deposits $ 2,094,236 $ 2,218,571 $ 2,252,728 $ 2,345,648 $ 2,444,939 $ 2,554,165
Less:
Brokered time deposits 52,407 122,124 145,240 226,238 279,027 359,571

Other brokered deposits 105,392 112,033 117,532 129,096 126,643 124,969
----------- ----------- ----------- ----------- ----------- -----------

Non-brokered deposits $ 1,936,437 $ 1,984,414 $ 1,989,956 $ 1,990,314 $ 2,039,269 $ 2,069,625
----------- ----------- ----------- ----------- ----------- -----------
Plus:
Sweep repurchase
agreements 30,636 27,214 26,492 22,211 22,700 33,192
----------- ----------- ----------- ----------- ----------- -----------

Core funding $ 1,967,073 $ 2,011,628 $ 2,016,448 $ 2,012,525 $ 2,061,969 $ 2,102,817
=========== =========== =========== =========== =========== ===========

Balance sheet amounts are as of period end unless otherwise noted.


SOUTHWEST BANCORP, INC. Table 7
UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA
(Dollars in thousands, except per share)


----------------------------------------------------------------------------

2011 2010
------------------------ --------------------------------------------------

Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
----------- ----------- ----------- ----------- ----------- -----------
PERFORMANCE RATIOS
Return on average assets
(annualized) (0.43)% 0.35% 0.59% 0.52% 0.58% 0.57%
Return on average common
equity (annualized) (5.11) 1.81 4.11 3.57 4.64 5.42
Return on average tangible
common equity (annualized)* (5.22) 1.85 4.21 3.65 4.75 5.58
Net interest margin
(annualized) 3.79 3.78 3.82 3.63 3.65 3.59
Total dividends declared to
net income (29.46) 35.56 20.31 22.59 19.84 20.02
Effective tax rate 54.53 38.40 38.31 28.02 38.29 39.19
Efficiency ratio 52.40 54.50 54.13 47.02 51.97 49.25
NONPERFORMING ASSETS
Noncovered
Nonaccrual loans $ 151,135 $ 134,934 $ 106,566 $ 135,209 $ 111,871 $ 97,858

90 days past due and accruing 43 529 517 452 333 4
----------- ----------- ----------- ----------- ----------- -----------
Total nonperforming loans 151,178 135,463 107,083 135,661 112,204 97,862

Other real estate 38,956 41,067 37,722 35,723 27,634 18,809
----------- ----------- ----------- ----------- ----------- -----------

Total nonperforming assets $ 190,134 $ 176,530 $ 144,805 $ 171,384 $ 139,838 $ 116,671
=========== =========== =========== =========== =========== ===========

Performing restructured $ 3,191 $ 2,166 $ 2,177 $ 5,334 $ 5,525 $ 5,650
----------- ----------- ----------- ----------- ----------- -----------

Potential problem loans $ 291,171 $ 217,406 $ 233,140 $ 236,844 $ 242,217 $ 275,912
----------- ----------- ----------- ----------- ----------- -----------
Covered
Nonaccrual loans $ 9,800 $ 9,809 $ 10,806 $ 7,906 $ 14,504 $ 16,192

90 days past due and accruing -- -- -- 1,871 130 356
----------- ----------- ----------- ----------- ----------- -----------
Total nonperforming loans 9,800 9,809 10,806 9,777 14,634 16,548

Other real estate 3,806 4,016 4,187 4,448 4,352 4,489
----------- ----------- ----------- ----------- ----------- -----------

Total nonperforming assets $ 13,606 $ 13,825 $ 14,993 $ 14,225 $ 18,986 $ 21,037
=========== =========== =========== =========== =========== ===========

Potential problem loans $ 2,731 $ 3,444 $ 3,495 $ 6,413 $ 6,184 $ 6,620
----------- ----------- ----------- ----------- ----------- -----------
ALLOWANCE ACTIVITY
Balance, beginning of period $ 61,285 $ 65,229 $ 72,418 $ 67,055 $ 65,168 $ 62,413
Charge offs 27,562 13,392 14,720 7,006 6,168 6,545

Recoveries 712 398 266 381 279 769
----------- ----------- ----------- ----------- ----------- -----------
Net charge offs 26,850 12,994 14,454 6,625 5,889 5,776

Provision for loan losses 20,140 9,050 7,265 11,988 7,776 8,531
----------- ----------- ----------- ----------- ----------- -----------

Balance, end of period $ 54,575 $ 61,285 $ 65,229 $ 72,418 $ 67,055 $ 65,168
=========== =========== =========== =========== =========== ===========
ASSET QUALITY RATIOS
Net loan charge-offs to
average portfolio loans
(annualized) 4.76% 2.25% 2.35% 1.05% 0.92% 0.90%
Noncovered
Nonperforming assets to
portfolio loans and other
real estate 8.66% 7.74% 6.11% 7.00% 5.59% 4.60%
Nonperforming loans to
portfolio loans 7.01 6.04 4.59 5.62 4.53 3.89
Allowance for loan losses to
portfolio loans 2.53 2.73 2.80 3.00 2.71 2.59
Allowance for loan losses to
nonperforming loans 36.10 45.24 60.91 53.38 59.76 66.59
Covered
Nonperforming assets to
portfolio loans and other
real estate 27.23% 26.02% 25.93% 21.88% 26.24% 25.84%
Nonperforming loans to
portfolio loans 21.23 19.97 20.15 16.14 21.52 21.52
CAPITAL RATIOS
Average total shareholders'
equity to average assets 13.98% 13.57% 13.24% 12.85% 11.78% 10.18%
Leverage ratio 16.25 15.95 15.55 14.96 14.48 12.32
Tier 1 capital to
risk-weighted assets 18.93 18.49 17.78 17.17 16.50 14.00
Total capital to
risk-weighted assets 20.20 19.77 19.06 18.45 17.78 15.28
Tangible common equity to
tangible assets*** 11.38 10.99 10.78 10.43 10.02 7.87
REGULATORY CAPITAL DATA
Tier I capital $ 444,106 $ 447,803 $ 445,966 $ 442,188 $ 438,973 $ 381,280
Total capital 473,950 478,713 477,930 475,040 472,971 415,955
Total risk adjusted assets 2,346,596 2,421,752 2,507,867 2,574,746 2,659,886 2,722,628
Average total assets 2,733,561 2,807,518 2,867,114 2,955,779 3,032,328 3,094,756
____________________
*This is a Non-GAAP based financial measure.
***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)
Total shareholders' equity $ 376,930 $ 379,350 $ 377,812 $ 376,576 $ 375,319 $ 315,341
Less:
Goodwill 6,811 6,811 6,811 6,811 6,811 6,811

Preferred stock 68,084 67,902 67,724 67,548 67,375 67,205
----------- ----------- ----------- ----------- ----------- -----------

Tangible common equity $ 302,035 $ 304,637 $ 303,277 $ 302,217 $ 301,133 $ 241,325
=========== =========== =========== =========== =========== ===========
Total assets $ 2,660,495 $ 2,779,028 $ 2,820,541 $ 2,905,275 $ 3,010,835 $ 3,074,923

Less goodwill 6,811 6,811 6,811 6,811 6,811 6,811
----------- ----------- ----------- ----------- ----------- -----------

Tangible assets $ 2,653,684 $ 2,772,217 $ 2,813,730 $ 2,898,464 $ 3,004,024 $ 3,068,112
=========== =========== =========== =========== =========== ===========
Tangible common equity to
tangible assets 11.38% 10.99% 10.78% 10.43% 10.02% 7.87%

Balance sheet amounts and ratios are as of period end unless otherwise noted.

This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Southwest Bancorp, Inc.

By Staff

CONTACT: CONTACT: Rick Green
President & CEO
Laura Robertson
EVP & CFO
[phone]

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
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INDUSTRY KEYWORD: Banks
SUBJECT CODE: EARNINGS
BANKING
Earnings Releases and Operating Results