Southwest Bancorp Inc. Reports 2009 Earnings

Enters Into Regulatory Agreement

Jan 28, 2010, 17:30 ET from Southwest Bancorp, Inc.

STILLWATER, Okla., Jan. 28 /PRNewswire-FirstCall/ -- Southwest Bancorp, Inc. (Nasdaq: OKSB), (“Southwest”), today reported net income available to common shareholders of $2.5 million, or $0.17 per diluted share for the fourth quarter 2009, compared to $3.0 million, or $0.20 per diluted share for the fourth quarter of 2008.  Net income available to common shareholders for the year ended December 31, 2009 was $8.8 million, or $0.60 per diluted share, compared to $14.7 million, or $1.00 per diluted share for the year ended December 31, 2008.  At December 31, 2009, 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, “Southwest’s 2009 results demonstrate our ability to maintain top line revenue, effectively manage noninterest expenses, and take steps to control risk."

Southwest’s nonperforming assets increased significantly during the year as the economy in general, and commercial real estate values in particular, continued to show weakness.  We recorded provisions for losses that were over $22 million greater than our net charge offs for the year.  At December 31, 2009, the allowance for loan losses of $62.4 million was 2.46% of portfolio loans, excluding loans covered by FDIC loss sharing agreements.  Each of our nonaccrual loans is valued on an individual basis using primarily the fair value of collateral or estimated future cash flows, with a specific allowance recorded based on the result.

On January 27, 2010, our principal banking subsidiary, Stillwater National Bank and Trust Company (“Stillwater National”) entered into a formal agreement with the United States Comptroller of the Currency (“OCC”) relating to its levels of commercial real estate lending and problem assets. The OCC is the primary regulator for national banks. Additional information regarding this agreement is included later in this release under the heading “Regulatory Matters.”

The economy continues to show weakness.  In 2010 our goals are to work diligently to identify and resolve problem credits, reduce our commercial lending concentrations, and comply with our agreement with the OCC while continuing to produce consistent net interest income.

Southwest and its bank subsidiaries have maintained capital levels that significantly exceed the minimums for regulatory “well capitalized” status.  At December 31, 2009, our total regulatory capital was $413.4 million for a total risk-based capital ratio of 14.55%, and Tier 1 capital was $377.4 million for a Tier 1 risk-based capital ratio of 13.28%.  

2009 Results

Net interest income growth and expense control made it possible for us to generate $8.8 million in net income for our common shareholders in 2009, while increasing the allowance for loan losses by $22.6 million.  

Significant developments during the year include:

  • Improved net interest income;
  • Provide additional allowance and provision for loan losses;
  • Increased regulatory capital;
  • Increase in nonperforming assets;
  • Greater use of core funding;
  • Decreased personnel costs and overall noninterest expenses; and
  • Acquired First National Bank of Anthony, (“FNBA”), Anthony, Kansas in an FDIC-assisted transaction during the second quarter.

Financial Overview

Condition: Total assets were $3.1 billion at December 31, 2009, an increase of 8% from December 31, 2008.  At December 31, 2009 total loans were $2.7 billion, which includes $85.4 million of loans acquired from FNBA in the second quarter.

At December 31, 2009, the allowance for loan losses was $62.4 million, up 57% from year-end 2008 and represented 2.46% of noncovered portfolio loans versus 1.59% at December 31, 2008.  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.  For the year ended December 31, 2009, the provision for loan losses increased by $20.2 million, or 106%, over the provision for the year ended December 31, 2008.  The provision for loan losses exceeded net charge-offs by $4.6 million for the fourth quarter and $22.6 million for the year.

In the second quarter of 2009, Bank of Kansas, a subsidiary of Southwest, acquired assets and assumed liabilities of FNBA in an FDIC-assisted transaction with loss sharing.  The loss sharing agreement requires the FDIC to cover 80% of any net losses on covered loans and related assets up to $35.0 million, and 95% of net losses above $35.0 million. (Assets subject to these agreements are referred to as “covered”.)

Excluding covered assets, nonperforming assets increased to $124.6 million and 4.87% of portfolio loans and other real estate owned as of December 31, 2009 from $111.7 million and 4.33% of portfolio loans and other real estate owned as of September 30, 2009 and from $70.1 million and 2.80% of portfolio loans and other real estate owned at December 31, 2008.  A breakdown of noncovered portfolio loans and noncovered nonperforming assets by type is shown in the following table:

    
    
                                                                Percentage of
                                  Percentage of                     total 
                      Noncovered      total        Noncovered     noncovered 
                       portfolio    noncovered    nonperforming  nonperforming
    (dollars in          loans    portfolio loans    assets         assets 
     thousands)          -----    ---------------    ------         ------ 
    Real estate                                                            
     construction       $659,187        25.96%       $57,586         46.21%
    Commercial                                                           
     real estate       1,212,409        47.75         28,451         22.83 
    Commercial           519,146        20.44         10,422          8.36 
    Residential real                                                     
     estate mortgages    109,002         4.29          9,463          7.59 
    Other consumer                                                         
     loans                39,550         1.56            275          0.22 
    Other real estate 
     owned                     -            -         18,432         14.79 
                             ---          ---         ------         ----- 
          Total       $2,539,294       100.00%      $124,629        100.00%
                      ==========       ======       ========        ====== 

Excluding covered loans, nonaccrual loans were $105.9 million as of December 31, 2009, an increase of $11.2 million from September 30, 2009 and $46.6 million from December 31, 2008.  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 assets, were $310,000 as of December 31, 2009 and decreased $10.3 million from September 30, 2009 and $4.4 million from December 31, 2008.  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 $267.3 million at December 31, 2009, an increase of $7.8 million from September 30, 2009 and $135.8 million from December 31, 2008.  Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses.  

Southwest’s core business is lending.  Our primary lending activity is for commercial real estate occupied by businesses and lending to health care professions for start up medical and dental practices, office buildings, surgery centers, hospitals, and facilities for retirement and long-term care.  Our loan portfolio includes commercial construction loans and commercial loans secured by completed projects.  Real estate construction and commercial real estate represents the majority of our problem assets in each of our markets.

During 2008 and 2009, we continued to evaluate the appropriate limits on types of lending based upon regular studies of commercial real estate and healthcare markets.  In 2010, we plan to reduce the percentage of commercial real estate and commercial real estate construction loans to total portfolio loans in view of current economic conditions.  Our plan focus is on reductions in particular subcategories of commercial real estate loans that are identified in our regular real estate market reviews.  In general, and with some exceptions regarding locations and particular types of facilities, we do not intend to decrease healthcare related commercial or mortgage lending or commercial mortgage lending on owner-occupied properties that otherwise meet our underwriting criteria.  These changes have significant effects on loan growth.  Year-over-year, outstanding portfolio loans increased by $130.2 million, or 5%, however, the growth was driven by the acquisition of $117.1 million of loans in the FNBA transaction and significant advances on commitments made in 2008.  We expect to see our loans decrease in 2010 as a result of our plans and soft demand in our markets.

At December 31, 2009, 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 $129.3 million.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by Federal bank regulators.

Year-to-date Results:

Summary:  The $5.8 million decrease in our net income available to common shareholders from 2008 is the result of a $20.2 million increase in the provision for loan losses, a $3.5 million increase in FDIC insurance and other insurance expense, and a $3.9 million increase in dividends on the preferred stock that we issued in December 2008, offset in part by a $4.0 million decrease in personnel costs, a $1.8 million decrease in general and administrative expenses, a $1.9 million decrease in income tax expense, a $9.0 million increase in net interest income, a $2.8 million increase in other noninterest income, and a $2.0 million increase in gain on sale of investment securities.

Net Interest Income:  Net interest income totaled $98.7 million for 2009, compared to $89.7 million for 2008.  Net interest margin was 3.38% compared to 3.36% in 2008.  Included in the second quarter net interest income is a one-time recovery of $1.9 million in interest from the successful resolution of a nonperforming loan.  Net interest margin would have been 6 basis points lower without this recovery.  Included in the fourth quarter net interest income is recognition of discount income due to prepayment and collection of loans acquired in the FNBA transaction in excess of the recorded value at the date of the acquisition.  This increased net margin by 3 basis points.

Provision for Loan Losses and Net Charge Offs:  The provision for loan losses totaled $39.2 million for 2009, compared to $19.0 million for 2008.  Noncovered net charge offs totaled $16.8 million, or 0.64% of average noncovered portfolio loans for 2009, compared to $8.8 million, or 0.37% of average noncovered portfolio loans for 2008.

Noninterest Income:  For 2009, noninterest income totaled $21.9 million, compared to $16.1 million for 2008.  The increase in noninterest income was primarily the result of a $2.0 million increase in gain on sale of investment securities and a $2.8 million increase in other noninterest income, which includes the $3.3 million gain on the FNBA acquisition that occurred in the second quarter.

Noninterest Expense:  For 2009, noninterest expense totaled $60.9 million, compared to $62.5 million for 2008.  The decrease primarily consists of a $4.0 million reduction in personnel expense, a $940,000 decrease in other general and administrative expenses, and an $865,000 decrease in provision for unfunded loan commitments, offset in part by a $3.5 million increase in FDIC and other insurance expense and a $765,000 increase in occupancy expense.

Efficiency Ratio:  The efficiency ratio improved to 50.45% for 2009 from 59.03% for 2008.

Fourth Quarter Results:

Summary:  The $448,000 decrease in our net income available to common shareholders compared to the fourth quarter of 2008 was the result of a $3.9 million increase in the provision for loan losses, a $2.2 million increase in noninterest expense, and a $797,000 increase in quarterly dividends on the preferred stock that we issued in December 2008, offset in part by a $5.4 million increase in net interest income and a $1.1 million increase in noninterest income.

Net Interest Income:  Net interest income totaled $27.8 million for the fourth quarter of 2009, compared to $22.4 million for the fourth quarter of 2008.  Net interest margin was 3.71% for the fourth quarter of 2009, compared to 3.22% for the fourth quarter of 2008.  Included in net interest income is recognition of discount income due to prepayment and collection of loans acquired in the FNBA transaction in excess of the recorded value at the date of acquisition.  This increased net margin by 12 basis points.

Provision for Loan Losses:  The provision for loan losses totaled $10.6 million for the fourth quarter of 2009, compared to $6.7 million for the fourth quarter of 2008.  Noncovered net charge offs totaled $6.2 million, or 0.95% (annualized) of average noncovered portfolio loans for the fourth quarter of 2009, compared to $2.7 million, or 0.44% (annualized) of average noncovered portfolio loans, for the fourth quarter of 2008.

Noninterest Income:  Noninterest income totaled $4.5 million for the fourth quarter of 2009, compared to $3.4 million for the fourth quarter of 2008.  The increase is the result of a $387,000 increase in service charges and fees, a $313,000 increase in the gain on sale of loans, and a $299,000 increase in the gain on sale of securities.  

Noninterest Expense:  Noninterest expense totaled $16.0 million for the fourth quarter of 2009, a $2.2 million increase from the fourth quarter of 2008.  The increase primarily consists of a $960,000 increase in personnel expense, a $747,000 increase in other general and administrative expenses, and a $456,000 increase in FDIC and other insurance expense.

Efficiency Ratio:  The efficiency ratio for the fourth quarter of 2009 improved to 49.69% from 53.37% for the fourth quarter of 2008.

New Business Opportunity

There is strong demand for rural healthcare facilities, focusing on areas and cities with populations of less than 100,000.  Southwest is providing funding for three new hospitals now under construction in rural areas of three different states, under a United States Department of Agriculture (“USDA”) program that provides a USDA guarantee upon completion of each project.  We see this important new business opportunity evolving to position our company with a recurring source of new revenue as our population grows older, lives longer, and prefers staying in their home communities for life.

Southwest Bancorp and Subsidiaries

Southwest is the financial holding company for Stillwater National Bank and Trust Company, Bank of Kansas, SNB Capital Corporation, Healthcare Strategic Support, Inc., and Business Consulting Group, Inc. 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®.

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 seven offices in Texas, eleven offices in Oklahoma, and nine offices in Kansas.  At December 31, 2009, our Texas segment accounted for $1.1 billion, or 40% of total portfolio loans, followed by $933.2 million, or 36%, from our Oklahoma segment, $359.6 million, or 14%, from our Kansas segment, and $277.5 million, or 11%, 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.

Regulatory Matters

Under the terms of the January 27, 2010, Agreement with the OCC, Stillwater National is required, to submit written plans to the OCC and to take required actions relating to the following items:

  • Establishing and ensuring compliance with a plan to reduce credit risk and improve loan portfolio management;
  • Eliminating credit weaknesses in nonperforming and potential problem loans;
  • On-going review and grading of the Stillwater National's loan portfolio;
  • Improving the Stillwater National's position regarding nonperforming and potential problem loans and other real estate owned;
  • Improving loan portfolio concentration risk management; and
  • Establishing and operating a loan workout department.

In addition, Stillwater National is required to prepare a three-year capital plan; and to obtain OCC approval before increasing its use of brokered deposits or declaring dividends.

The compliance committee of the Board of Directors of Stillwater National will submit quarterly reports to the OCC setting forth a description of the actions needed to achieve full compliance with the formal agreement, actions taken to comply, and the results and status of these actions.

Stillwater National remains well-capitalized for regulatory purposes with a leverage ratio of 11.37%, a Tier I risk based capital ratio of 12.00%, and a total risk based capital ratio of 13.84%. General regulatory minimums to be well-capitalized are a leverage ratio of 5.00%, a tier I risk based capital ratio of 6.00%, and a total risk based capital ratio of 10.00%.

Southwest has made informal commitments to the Federal Reserve Bank of Kansas City (“FRB”) which include providing prior notice of the declaration and payment of dividends on trust preferred securities, preferred stock issued under the Treasury Department’s Capital Purchase Program, and common stock, and of planned receipt of dividends from its banking subsidiaries. Southwest also has agreed to submit a capital plan to the FRB and to obtain FRB approval for any additional borrowings at the holding company level. Southwest does not intend to increase its borrowings.

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 December 31, 2009 through the date its financial statements are filed with the Securities and Exchange Commission.  The December 31, 2009 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 Average Balances, Yields, and Rates-Year-to-date........Table 5
    Unaudited Summary Financial Data by Quarter-2009 and 2008.........Table 6
    Unaudited Supplemental Analytical Data by Quarter-2009 and 2008...Table 7
    
    
    
    SOUTHWEST BANCORP, INC.                                            Table 1
    UNAUDITED FINANCIAL HIGHLIGHTS
    (Dollars in thousands except per share)
    
    
                                                      Fourth Quarter
                                                ----------------------------
     QUARTERLY HIGHLIGHTS                                                %
                                                2009        2008      Change
                                                ----        ----      ------
     Operations
       Net interest income                    $27,797     $22,414        24%
       Provision for loan losses               10,640       6,698        59
       Noninterest income                       4,488       3,429        31
       Noninterest expense                     16,041      13,793        16
       Income before taxes                      5,604       5,352         5
       Taxes on income                          2,030       2,127        (5)
       Net income                               3,574       3,225        11
       Net income available to common
       shareholders                             2,534       2,982       (15)
       Diluted earnings per share                0.17        0.20       (15)
     Balance Sheet
       Total assets                         3,108,291   2,879,762         8
       Loans held for sale                     43,134      56,941       (24)
       Noncovered portfolio loans           2,539,294   2,494,506         2
       Covered portfolio loans                 85,405                     -
       Total deposits                       2,592,730   2,180,122        19
       Total shareholders' equity             309,778     302,203         3
       Book value per share                     16.46       16.18         2
     Key Ratios
       Net interest margin                       3.71%       3.22%
       Efficiency ratio (GAAP-based)            49.69       53.37
       Total capital to risk-weighted
        assets                                  14.55       14.26
       Nonperforming loans to portfolio
        loans -noncovered                        4.18        2.56
       Shareholders' equity to total
        assets                                   9.97       10.49
       Tangible common equity to tangible
        assets                                   7.61        7.96
       Return on average assets
        (annualized)                             0.46        0.45
       Return on average equity
        (annualized)                             4.51        5.11
    
    
                                                  Third Quarter
                                                ------------------
     QUARTERLY HIGHLIGHTS                                      %
                                                2009        Change
                                                ----        ------
     Operations
       Net interest income                    $25,400           9%
       Provision for loan losses               10,177           5
       Noninterest income                       3,710          21
       Noninterest expense                     15,528           3
       Income before taxes                      3,405          65
       Taxes on income                          1,271          60
       Net income                               2,134          67
       Net income available to common
       shareholders                             1,097         131
       Diluted earnings per share                0.07         143
     Balance Sheet
       Total assets                         3,029,347           3
       Loans held for sale                     36,526          18
       Noncovered portfolio loans           2,572,111          (1)
       Covered portfolio loans                103,630         (18)
       Total deposits                       2,473,162           5
       Total shareholders' equity             309,118           -
       Book value per share                     16.43           -
     Key Ratios
       Net interest margin                       3.39%  
       Efficiency ratio (GAAP-based)            53.34  
       Total capital to risk-weighted
        assets                                  14.31  
       Nonperforming loans to portfolio
        loans -noncovered                        4.09  
       Shareholders' equity to total
        assets                                  10.20  
       Tangible common equity to tangible
        assets                                   7.79  
       Return on average assets
        (annualized)                             0.28  
       Return on average equity
        (annualized)                             2.72  
    
    
    YEAR-TO-DATE  HIGHLIGHTS                           Twelve Months
                                               ------------------------------
                                                                         %
                                               2009           2008     Change
                                               ----           ----     ------
     Operations
       Net interest income                   $98,691        $89,719       10%
       Provision for loan losses              39,176         18,979      106
       Noninterest income                     21,936         16,138       36
       Noninterest expense                    60,858         62,488       (3)
       Income before taxes                    20,593         24,390      (16)
       Taxes on income                         7,611          9,489      (20)
       Net income                             12,982         14,901      (13)
       Net income available to common
       shareholders                            8,837         14,658      (40)
       Diluted earnings per share               0.60           1.00      (40)
     Balance Sheet
       Total assets                        3,108,291      2,879,762        8
       Loans held for sale                    43,134         56,941      (24)
       Noncovered portfolio loans          2,539,294      2,494,506        2
       Covered portfolio loans                85,405              -        -
       Total deposits                      2,592,730      2,180,122       19
       Total shareholders' equity            309,778        302,203        3
       Book value per share                    16.46          16.18        2
     Key Ratios
       Net interest margin                      3.38%          3.36%
       Efficiency ratio (GAAP-based)           50.45          59.03
       Total capital to risk-weighted
        assets                                 14.55          14.26
       Nonperforming loans to portfolio
        loans -noncovered                       4.18           2.56
       Shareholders' equity to total
        assets                                  9.97          10.49
       Tangible common equity to tangible
        assets                                  7.61           7.96
       Return on average assets                 0.43           0.54
       Return on average equity                 4.20           6.40
    
    
    Balance sheet amounts and ratios are as of period end unless otherwise 
     noted. 
    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 31,       December 31,
                                                2009               2008
                                                ----               ----
    Assets
    Cash and due from banks                   $118,847            $27,287
    Investment securities:
       Held to maturity. Fair
        value:  $6,754,
        $7,293, respectively                     6,670              7,343
       Available for sale.
        Amortized cost:
        $236,199, $233,293,
        respectively                           237,703            238,037
       Other investments, at cost               19,066             18,786
    Loans held for sale                         43,134             56,941
    Noncovered loans receivable              2,539,294          2,494,506
       Less: Allowance for
        loan losses                            (62,413)           (39,773)
       -------------------                     -------            -------
       Net noncovered loans receivable       2,476,881          2,454,733
    Covered loans
      receivable (includes
      loss share receivable
      of $23.9 million)                         85,405                  -
     ----------------------                     ------                ---
       Net loans receivable                  2,562,286          2,454,733
    Accrued interest receivable                 10,806             11,512
    Premises and equipment, net                 26,536             24,580
    Noncovered other real estate                18,432              6,092
    Covered other real estate                    4,748                  -
    Goodwill                                     6,811              7,071
    Other intangible assets, net                 5,779              3,764
    Other assets                                47,473             23,616
     ------------                               ------             ------
       Total assets                         $3,108,291         $2,879,762
       ------------                         ----------         ==========
    
    
    Liabilities and shareholders' equity
    Deposits:
       Noninterest-bearing demand             $324,829           $261,940
       Interest-bearing demand                  74,201             76,027
       Money market accounts                   505,521            454,250
       Savings accounts                         25,730             14,135
       Time deposits of
        $100,000 or more                     1,004,439            802,244
       Other time deposits                     658,010            571,526
       -------------------                     -------            -------
         Total deposits                      2,592,730          2,180,122
    Accrued interest payable                     3,191              7,018
    Income tax payable                           4,486              3,651
    Other liabilities                           13,121              9,667
    Other borrowings                           103,022            295,138
    -----------------                          -------            -------
    Subordinated debentures                     81,963             81,963
    -----------------------                     ------             ------
       Total liabilities                     2,798,513          2,577,559
    
    
     Shareholders' equity
     --------------------
     Preferred stock, Series B -
      $1,000 par value;
      1,250,000 shares
      authorized; 70,000
      shares issued                             67,037             66,392
     Common stock -$1 par value;
      20,000,000 shares
      authorized; 14,750,713
      and 14,658,042 shares
      issued, respectively                      14,751             14,658
    
     Paid in capital                            49,029             49,101
     Retained earnings                         178,016            170,579
     Accumulated other
      comprehensive income                         945              2,921
     Treasury stock, at
      cost, 0 and 80,383
      shares, respectively                           -             (1,448)
     ---------------------                         ---             ------
       Total shareholders' equity              309,778            302,203
       -------------------                     -------            -------
         Total liabilities and
          shareholders' equity              $3,108,291         $2,879,762
       ---------------------                ==========         ==========
    
    
    
    SOUTHWEST BANCORP, INC.                                            Table 3
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands except per share)
    
                                               For the           For the
                                            three months      twelve months
                                         ended December 31, ended December 31,
                                         ------------------ ------------------
                                             2009     2008    2009      2008
                                             ----     ----    ----      ----
     Interest income
       Loans                                $36,355 $36,183  $141,239 $152,719
       Investment securities                  2,433   2,693     9,146    9,986
       Other interest-earning assets              1      19        14       89
                                                ---     ---       ---      ---
         Total interest income               38,789  38,895   150,399  162,794
    
     Interest expense
       Interest-bearing deposits              9,090  13,263    42,319   61,022
       Other borrowings                         625   1,487     4,049    7,242
       Subordinated debentures                1,277   1,731     5,340    4,811
                                              -----   -----     -----    -----
         Total interest expense              10,992  16,481    51,708   73,075
                                             ------  ------    ------   ------
    
     Net interest income                     27,797  22,414    98,691   89,719
    
     Provision for loan losses               10,640   6,698    39,176   18,979
                                             ------   -----    ------   ------
    
     Net interest income after provision
      for loan losses                        17,157  15,716    59,515   70,740
    
     Noninterest income
       Service charges and fees               3,295   2,908    11,704   11,026
       Gain on acquisition                        -       -     3,281        -
       Gain on sales of loans                   933     620     2,963    2,664
       Gain (loss) on investment securities       3    (296)    2,925      902
       Other noninterest income                 257     197     1,063    1,546
                                                ---     ---     -----    -----
         Total noninterest income             4,488   3,429    21,936   16,138
    
     Noninterest expense
       Salaries and employee benefits         7,349   6,389    29,299   33,330
       Occupancy                              3,159   2,844    11,637   10,872
       FDIC and other insurance               1,101     645     5,545    2,088
       Other real estate, net                    39      31       130      146
       General and administrative             4,393   3,884    14,247   16,052
                                              -----   -----    ------   ------
         Total noninterest expense           16,041  13,793    60,858   62,488
                                             ------  ------    ------   ------
     Income before taxes                      5,604   5,352    20,593   24,390
       Taxes on income                        2,030   2,127     7,611    9,489
                                              -----   -----     -----    -----
     Net income                              $3,574  $3,225   $12,982  $14,901
                                             ======  ======   =======  =======
     Net income available to common
      shareholders                           $2,534  $2,982    $8,837  $14,658
                                             ======  ======    ======  =======
    
     Basic earnings per common share          $0.17   $0.21     $0.60    $1.01
     Diluted earnings per common share         0.17    0.20      0.60     1.00
     Common dividends declared per share     0.0238  0.0950    0.0952   0.3800
    
    
    
    SOUTHWEST BANCORP, INC.                                            Table 4
    UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
    (Dollars in thousands)
    
                              For the three months ended December 31,
                              ---------------------------------------
                                               2009
                                 ---------------------------------
                                 Average                 Average
                                 Balance     Interest   Yield/Rate
                                 -------     --------   ----------
    Assets
    Noncovered loans            $2,613,741    $34,881      5.29%
    Covered loans                   91,459      1,474      6.39
    Investment securities          264,216      2,433      3.65
    Other interest-earning
     assets                          5,624          1      0.07
                                     -----        ---
      Total interest-earning
       assets                    2,975,040     38,789      5.17
    Other assets                    74,889
                                    ------
      Total assets              $3,049,929
                                ==========
    
    Liabilities and
     Shareholders' Equity
    Interest-bearing
     demand deposits               $75,614        $66      0.35%
    Money market accounts          502,247      1,170      0.92
    Savings accounts                25,388         16      0.25
    Time deposits                1,585,240      7,838      1.96
                                 ---------      -----
      Total interest-bearing
       deposits                  2,188,489      9,090      1.65
    Other borrowings               127,378        625      1.95
    Subordinated debentures         81,963      1,277      6.23
                                    ------      -----
      Total interest-bearing
       liabilities               2,397,830     10,992      1.82
                                               ------      ----
    
      Noninterest-bearing
       demand deposits             316,784
      Other liabilities             20,751
      Shareholders' equity         314,564
                                   -------
          Total liabilities and
           shareholders' equity $3,049,929
                                ==========
    
      Net interest income and
       spread                                 $27,797      3.35%
                                              =======      ====
      Net interest margin (1)                              3.71%
                                                           ====
      Average interest-
       earning assets
        to average interest-
         bearing liabilities        124.07%
                                    ======
    
    
    
                               For the three months ended December 31,
                               ---------------------------------------
                                               2008
                                 ---------------------------------
                                 Average                 Average
                                 Balance     Interest   Yield/Rate
                                 -------     --------   ----------
    Assets
    Noncovered loans            $2,512,425    $36,183      5.73%
    Covered loans                        -          -         -
    Investment securities          249,846      2,693      4.29
    Other interest-earning
     assets                          5,116         19      1.48
                                     -----        ---
      Total interest-earning
       assets                    2,767,387     38,895      5.59
    Other assets                    68,822
                                    ------
      Total assets              $2,836,209
                                ==========
    
    Liabilities and
     Shareholders' Equity
    Interest-bearing
     demand deposits               $76,359       $130      0.68%
    Money market accounts          513,095      2,132      1.65
    Savings accounts                14,375         11      0.30
    Time deposits                1,300,295     10,990      3.36
                                 ---------     ------
      Total interest-bearing
       deposits                  1,904,124     13,263      2.77
    Other borrowings               297,155      1,487      1.99
    Subordinated debentures         81,963      1,731      8.45
                                    ------      -----
      Total interest-bearing
       liabilities               2,283,242     16,481      2.87
                                               ------      ----
    
      Noninterest-bearing
       demand deposits             279,268
      Other liabilities             22,693
      Shareholders' equity         251,006
                                   -------
          Total liabilities and
           shareholders' equity $2,836,209
                                ==========
    
      Net interest income and
       spread                                 $22,414      2.72%
                                              =======      ====
      Net interest margin (1)                              3.22%
                                                           ====
      Average interest-
       earning assets
        to average interest-
         bearing liabilities        121.20%
                                    ======
    
    (1)  Net interest margin = annualized net interest income / average 
         interest-earning assets    
    
    
    
    SOUTHWEST BANCORP, INC.                                           Table 5
    UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES
    (Dollars in thousands)
    
    
    
                                    For the twelve months ended December 31,
                                    ----------------------------------------
                                                       2009
                                        --------------------------------
                                        Average                Average
                                        Balance    Interest   Yield/Rate
                                        -------    --------   ----------
    Assets
    Loans (2)                          $2,667,771  $141,239      5.29%
    Investment securities                 245,456     9,146      3.73
    Other interest-earning assets           5,813        14      0.24
                                            -----       ---
      Total interest-earning assets     2,919,040   150,399      5.15
    Other assets                           68,430
                                           ------
      Total assets                     $2,987,470
                                       ==========
    
    Liabilities and Shareholders'
     Equity
    Interest-bearing demand deposits      $83,813      $476      0.57%
    Money market accounts                 485,383     4,954      1.02
    Savings accounts                       21,010        78      0.37
    Time deposits                       1,518,638    36,811      2.42
                                        ---------    ------
      Total interest-bearing deposits   2,108,844    42,319      2.01
    Other borrowings                      181,682     4,049      2.23
    Subordinated debentures                81,963     5,340      6.52
                                           ------     -----
      Total interest-bearing
       liabilities                      2,372,489    51,708      2.18
                                        ---------    ------      ----
    
      Noninterest-bearing demand
       deposits                           285,184
      Other liabilities                    20,845
      Shareholders' equity                308,952
                                          -------
          Total liabilities and
           shareholders' equity        $2,987,470
                                       ==========
    
      Net interest income and spread                $98,691      2.97%
                                                    =======      ====
      Net interest margin (1)                                    3.38%
                                                                 ====
      Average interest-earning assets
        to average interest-bearing
         liabilities                       123.04%
                                           ======
    
    
    
                                    For the twelve months ended December 31,
                                    ----------------------------------------
                                                      2008
                                        --------------------------------
                                        Average                Average
                                        Balance    Interest   Yield/Rate
                                        -------    --------   ----------
    Assets
    Loans (2)                          $2,429,129  $152,719      6.29%
    Investment securities                 238,653     9,986      4.18
    Other interest-earning assets           3,854        89      2.31
                                            -----       ---
      Total interest-earning assets     2,671,636   162,794      6.09
    Other assets                           71,263
                                           ------
      Total assets                     $2,742,899
                                       ==========
    
    Liabilities and Shareholders'
     Equity
    Interest-bearing demand deposits      $75,950      $584      0.77%
    Money market accounts                 538,148    12,620      2.35
    Savings accounts                       13,930        69      0.50
    Time deposits                       1,253,057    47,749      3.81
                                        ---------    ------
      Total interest-bearing deposits   1,881,085    61,022      3.24
    Other borrowings                      274,106     7,242      2.64
    Subordinated debentures                64,064     4,811      7.51
                                           ------     -----
      Total interest-bearing
       liabilities                      2,219,255    73,075      3.29
                                        ---------    ------      ----
    
      Noninterest-bearing demand
       deposits                           268,770
      Other liabilities                    22,043
      Shareholders' equity                232,831
                                          -------
          Total liabilities and
           shareholders' equity        $2,742,899
                                       ==========
    
      Net interest income and spread                $89,719      2.80%
                                                    =======      ====
      Net interest margin (1)                                    3.36%
                                                                 ====
      Average interest-earning assets
        to average interest-bearing
         liabilities                       120.38%
                                           ======
    
    (1)  Net interest margin = net interest income / average interest-earning
         assets.
    (2)  Information regarding noncovered and covered loans for the period 
         shown is not readily available.
    
    
    
    SOUTHWEST BANCORP, INC.                                      Table 6
    UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
    (Dollars in thousands except per share)
    
    
                                                 2009
                              -------------------------------------------
                              Dec. 31    Sep. 30     Jun. 30     Mar. 31
                              -------    -------     -------     -------
     OPERATIONS
     Interest income:
     Loans                    $36,355    $35,607     $36,009     $33,268
     Investment
      securities                2,433      2,122       2,079       2,512
     Other interest-
      earning assets                1          4           3           6
                                  ---        ---         ---         ---
       Total interest
        income                 38,789     37,733      38,091      35,786
     Interest expense:
       Interest bearing
        demand deposits            66        107         150         153
       Money market
        accounts                1,170      1,220       1,211       1,353
       Savings accounts            16         39          14           9
       Time deposits of
        $100,000 or more        4,340      4,822       5,552       5,980
       Other time deposits      3,498      3,909       4,145       4,565
                                -----      -----       -----       -----
       Total interest-
        bearing deposits        9,090     10,097      11,072      12,060
     Other borrowings             625        960       1,180       1,284
     Subordinated
      debentures                1,277      1,276       1,383       1,404
                                -----      -----       -----       -----
       Total interest
        expense                10,992     12,333      13,635      14,748
                               ------     ------      ------      ------
     Net interest income       27,797     25,400      24,456      21,038
     Provision for loan
      losses                   10,640     10,177       7,477      10,882
     Noninterest income:
     Service charges and
      fees                      3,295      2,992       2,817       2,600
     Gain on sales of
      loans                       933        386         926         718
     Gain (loss) on
      investment
      securities                    3         10          (9)      2,921
     Other noninterest
      income                      257        322       3,527         238
                                  ---        ---       -----         ---
       Total noninterest
        income                  4,488      3,710       7,261       6,477
     Noninterest
      expense:
     Salaries and
      employee benefits         7,349      7,824       6,887       7,239
     Occupancy                  3,159      2,958       2,789       2,731
     FDIC and other
      insurance                 1,101      1,134       2,319         991
     Other real estate,
      net                          39         90         103        (102)
     Provision for
      unfunded loan
      commitments                 147        (79)       (388)         90
     Other general and
      administrative            4,246      3,601       2,980       3,650
                                -----      -----       -----       -----
       Total noninterest
        expenses               16,041     15,528      14,690      14,599
                               ------     ------      ------      ------
     Income before taxes        5,604      3,405       9,550       2,034
       Taxes on income          2,030      1,271       3,605         705
                                -----      -----       -----         ---
     Net income                $3,574     $2,134      $5,945      $1,329
                               ======     ======      ======      ======
     Net income
      available to
      common
      shareholders             $2,534     $1,097      $4,910        $296
                               ======     ======      ======        ====
     PER SHARE DATA
     Basic earnings per
      common share              $0.17      $0.07       $0.34       $0.02
     Diluted earnings
      per common share           0.17       0.07        0.33        0.02
     Common dividends
      declared per share       0.0238     0.0238      0.0238      0.0238
     Book value per
      share                     16.46      16.43       16.30       16.01
     Tangible book value
      per share                 15.99      15.96       15.84       15.52
     COMMON STOCK
     Shares issued         14,750,713 14,748,223  14,658,042  14,658,042
     Less treasury
      shares                        -          -     (15,602)    (49,930)
                                  ---        ---     -------     -------
     Outstanding shares    14,750,713 14,748,223  14,642,440  14,608,112
                           ========== ==========  ==========  ==========
     OTHER FINANCIAL
      DATA
     Investment
      securities             $263,439   $258,790    $243,077    $179,006
     Loans held for sale       43,134     36,526      26,006      76,404
     Noncovered
      portfolio loans       2,539,294  2,572,111   2,587,230   2,526,293
     Total noncovered
      loans                 2,582,428  2,608,637   2,613,236   2,602,697
     Covered portfolio
      loans                    85,405    103,630     117,096           -
     Total assets           3,108,291  3,029,347   3,038,985   2,928,133
     Total deposits         2,592,730  2,473,162   2,452,295   2,330,089
     Other borrowings         103,022    146,449     176,368     193,739
     Subordinated
      debentures               81,963     81,963      81,963      81,963
     Total shareholders'
      equity                  309,778    309,118     305,416     300,406
     Mortgage servicing
      portfolio               237,459    223,226     209,425     179,959
     INTANGIBLE ASSET
      DATA
     Goodwill                  $6,811     $6,811      $6,811      $7,071
     Core deposit
      intangible                4,104      4,240       4,378       2,498
     Mortgage servicing
      rights                    1,670      1,625       1,589       1,362
     Nonmortgage
      servicing rights              5          7           7           8
                                  ---        ---         ---         ---
     Total intangible
      assets                  $12,590    $12,683     $12,785     $10,939
                              =======    =======     =======     =======
     Intangible
      amortization
      expense                    $381       $344        $391        $204
     =============               ====       ====        ====        ====
    
    
                                                2008
                            -------------------------------------------
                            Dec. 31     Sep. 30     Jun. 30     Mar. 31
                            -------     -------     -------     -------
     OPERATIONS
     Interest income:
     Loans                  $36,183     $38,441     $37,485     $40,610
     Investment
      securities              2,693       2,531       2,426       2,336
     Other interest-
      earning assets             19          22          20          28
                                ---         ---         ---         ---
       Total interest
        income               38,895      40,994      39,931      42,974
     Interest expense:
       Interest bearing
        demand deposits         130         147         166         141
       Money market
        accounts              2,132       2,898       3,062       4,528
       Savings accounts          11          17          19          22
       Time deposits of
        $100,000 or more      6,419       6,879       7,051       7,865
       Other time
        deposits              4,571       4,457       4,809       5,698
                              -----       -----       -----       -----
       Total interest-
        bearing deposits     13,263      14,398      15,107      18,254
     Other borrowings         1,487       1,839       1,887       2,029
     Subordinated
      debentures              1,731       1,569         653         858
                              -----       -----         ---         ---
       Total interest
        expense              16,481      17,806      17,647      21,141
                             ------      ------      ------      ------
     Net interest
      income                 22,414      23,188      22,284      21,833
     Provision for loan
      losses                  6,698       6,855       3,190       2,236
     Noninterest
      income:
     Service charges
      and fees                2,908       2,849       2,812       2,457
     Gain on sales of
      loans                     620         601         603         840
     Gain (loss) on
      investment
      securities               (296)        (50)          3       1,245
     Other noninterest
      income                    197         662         541         146
                                ---         ---         ---         ---
       Total noninterest
        income                3,429       4,062       3,959       4,688
     Noninterest
      expense:
     Salaries and
      employee benefits       6,389       8,863       8,856       9,222
     Occupancy                2,844       2,968       2,602       2,458
     FDIC and other
      insurance                 645         469         521         453
     Other real estate,
      net                        31         (92)        197          10
     Provision for
      unfunded loan
      commitments               385          90          15         145
     Other general and
      administrative          3,499       4,235       4,141       3,542
                              -----       -----       -----       -----
       Total noninterest
        expenses             13,793      16,533      16,332      15,830
                             ------      ------      ------      ------
     Income before
      taxes                   5,352       3,862       6,721       8,455
       Taxes on income        2,127       1,556       2,559       3,247
                              -----       -----       -----       -----
     Net income              $3,225      $2,306      $4,162      $5,208
                             ======      ======      ======      ======
     Net income
      available to
      common
      shareholders           $2,982      $2,306      $4,162      $5,208
                             ======      ======      ======      ======
     PER SHARE DATA
     Basic earnings per
      common share            $0.21       $0.16       $0.29       $0.36
     Diluted earnings
      per common share         0.20        0.16        0.28        0.36
     Common dividends
      declared per
      share                  0.0950      0.0950      0.0950      0.0950
     Book value per
      share                   16.18       15.56       15.49       15.43
     Tangible book
      value per share         15.69       15.08       15.00       14.95
     COMMON STOCK
     Shares issued       14,658,042  14,658,042  14,658,042  14,658,042
     Less treasury
      shares                (80,383)   (129,586)   (131,566)   (133,605)
                            -------    --------    --------    --------
     Outstanding shares  14,577,659  14,528,456  14,526,476  14,524,437
                         ==========  ==========  ==========  ==========
     OTHER FINANCIAL
      DATA
     Investment
      securities           $264,166    $241,728    $234,429    $236,059
     Loans held for
      sale                   56,941      72,248      62,892      66,364
     Noncovered
      portfolio loans     2,494,506   2,440,091   2,381,893   2,287,606
     Total noncovered
      loans               2,551,447   2,512,339   2,444,785   2,353,970
     Covered portfolio
      loans                       -           -           -           -
     Total assets         2,879,762   2,832,371   2,773,013   2,670,580
     Total deposits       2,180,122   2,198,719   2,211,001   2,094,927
     Other borrowings       295,138     299,118     265,614     282,513
     Subordinated
      debentures             81,963      81,963      46,393      46,393
     Total
      shareholders'
      equity                302,203     226,123     224,949     224,155
     Mortgage servicing
      portfolio             158,143     153,250     147,672     145,028
     INTANGIBLE ASSET
      DATA
     Goodwill                $7,071      $7,071      $7,071      $7,071
     Core deposit
      intangible              2,596       2,693       2,792       2,893
     Mortgage servicing
      rights                  1,159       1,417       1,354       1,299
     Nonmortgage
      servicing rights            9          10          11          13
                                ---         ---         ---         ---
     Total intangible
      assets                $10,835     $11,191     $11,228     $11,276
                            =======     =======     =======     =======
     Intangible
      amortization
      expense                  $214        $212        $215        $257
     =============             ====        ====        ====        ====
    
    
    
    SOUTHWEST BANCORP, INC.                                          Table 6
    UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA                     CONTINUED
    (Dollars in thousands except per share)
    
    
                                               2009
                            -------------------------------------------
                            Dec. 31     Sep. 30     Jun. 30     Mar. 31
                            -------     -------     -------     -------
     LOAN COMPOSITION
     Noncovered
     ----------
     Real estate
      mortgage:
       Commercial          $1,212,409  $1,221,739  $1,208,819  $1,098,587
       One-to-four family
        residential           114,614     125,034     116,068     114,111
     Real estate
      construction
       Commercial             618,078     612,905     622,298     640,132
       One-to-four family
        residential            41,109      39,009      51,292      79,309
     Commercial               520,505     538,757     554,734     558,834
     Installment and
      consumer:
       Guaranteed student
        loans                  36,163      30,949      18,477      69,792
       Other                   39,550      40,244      41,548      41,932
                               ------      ------      ------      ------
     Total noncovered
      loans, including
      held for sale         2,582,428   2,608,637   2,613,236   2,602,697
     Less allowance for
      loan losses             (62,413)    (57,777)    (51,753)    (46,262)
                              -------     -------     -------     -------
     Total noncovered
      loans, net           $2,520,015  $2,550,860  $2,561,483  $2,556,435
                           ==========  ==========  ==========  ==========
     By statement of
      condition category:
     Covered
     -------
     Real estate
      mortgage:
       Commercial             $39,836     $37,820     $40,411          $-
       One-to-four family
        residential            12,630      17,246      17,889           -
     Real estate
      construction
       Commercial              12,515      14,178      14,277           -
       One-to-four family
        residential             5,324       9,936      13,647           -
     Commercial                13,412      21,475      27,203           -
     Installment and
      consumer:                 1,688       2,975       3,669           -
                                =====       =====       =====         ===
     Total covered loans      $85,405    $103,630    $117,096          $-
                              =======    ========    ========         ===
     DEPOSIT COMPOSITION
     Non-interest
      bearing demand         $324,829    $309,767    $291,014    $274,175
     Interest-bearing
      demand                   74,201      82,622      94,060      85,629
     Money market
      accounts                505,521     506,196     483,162     467,924
     Savings accounts          25,730      25,636      25,660      15,797
     Time deposits of
      $100,000 or more      1,004,439     888,814     905,202     849,814
     Other time deposits      658,010     660,127     653,197     636,750
                              -------     -------     -------     -------
       Total deposits*     $2,592,730  $2,473,162  $2,452,295  $2,330,089
                           ==========  ==========  ==========  ==========
     LOANS BY SEGMENT
     Oklahoma banking        $933,150    $943,982    $967,981    $949,454
     Texas banking          1,054,404   1,042,369   1,037,694     990,135
     Kansas banking           359,633     400,710     412,314     309,774
     Other states banking     277,512     288,680     286,337     276,930
                              -------     -------     -------     -------
       Subtotal             2,624,699   2,675,741   2,704,326   2,526,293
     Secondary market          43,134      36,526      26,006      76,404
                               ------      ------      ------      ------
     Total loans           $2,667,833  $2,712,267  $2,730,332  $2,602,697
                           ==========  ==========  ==========  ==========
     NET INCOME BY
      SEGMENT
     Oklahoma banking          $3,807      $2,529      $3,284      $3,210
     Texas banking              3,591       2,686       3,662       1,119
     Kansas banking            (2,328)     (1,180)      2,405         598
     Other states banking         300          57         (78)     (1,974)
                                  ---         ---         ---      ------
       Subtotal                 5,370       4,092       9,273       2,953
     Secondary market              (3)       (201)        117         (61)
     Other operations          (1,793)     (1,757)     (3,445)     (1,563)
                               ------      ------      ------      ------
     Net income                $3,574      $2,134      $5,945      $1,329
                               ======      ======      ======      ======
     OFFICES AND
      EMPLOYEES
     FTE Employees                466         471         478         425
     ATM's                         44          44          44          40
     Branches                      24          24          24          18
     Loan production
      offices                       3           3           3           3
     Assets per employee       $6,670      $6,432      $6,358      $6,890
    
    *Calculation of Core  Deposits and Core Funding
     (Non-GAAP Financial Measures)
    
       Total deposits      $2,592,730  $2,473,162  $2,452,295  $2,330,089
       Less:
          Brokered time 
           deposits           329,636     274,870     334,880     374,003
          Other time 
           deposits of
           $100,000 
           or more            674,903     614,143     570,617     515,463
                              -------     -------     -------     -------
       Core deposits       $1,588,191  $1,584,149  $1,546,798  $1,440,623
                           ----------  ----------  ----------  ----------
       Plus:
          Other time 
           deposits of
           $100,000 
           or more            674,903     614,143     570,617     515,463
          Sweep  
           repurchase
           agreements          23,259      26,500      35,708      24,963
                               ------      ------      ------      ------
       Core funding        $2,286,353  $2,224,792  $2,153,123  $1,981,049
                           ==========  ==========  ==========  ==========
    
    
                                                 2008
                             -------------------------------------------
                             Dec. 31     Sep. 30     Jun. 30     Mar. 31
                             -------     -------     -------     -------
     LOAN COMPOSITION
     Noncovered
     ----------
     Real estate
      mortgage:
       Commercial          $1,118,828  $1,077,601    $991,679    $846,757
       One-to-four family
        residential           113,665     116,270     118,056     110,938
     Real estate
      construction
       Commercial             579,795     554,496     583,784     654,039
       One-to-four family
        residential            79,565      79,843      82,972      90,051
     Commercial               564,670     574,087     566,830     544,183
     Installment and
      consumer:
       Guaranteed student
        loans                  54,057      67,610      57,413      63,706
       Other                   40,867      42,432      44,051      44,296
                               ------      ------      ------      ------
     Total noncovered
      loans, including
      held for sale         2,551,447   2,512,339   2,444,785   2,353,970
     Less allowance for
      loan losses             (39,773)    (35,807)    (31,341)    (29,950)
                              -------     -------     -------     -------
     Total noncovered
      loans, net           $2,511,674  $2,476,532  $2,413,444  $2,324,020
                           ==========  ==========  ==========  ==========
     By statement of
      condition category:
     Covered
     -------
     Real estate
      mortgage:
       Commercial                  $-          $-          $-          $-
       One-to-four family
        residential                 -           -           -           -
     Real estate
      construction
       Commercial                   -           -           -           -
       One-to-four family
        residential                 -           -           -           -
     Commercial                     -           -           -           -
     Installment and
      consumer:                     -           -           -           -
                                  ===         ===         ===         ===
     Total covered loans           $-          $-          $-          $-
                                  ===         ===         ===         ===
     DEPOSIT COMPOSITION
     Non-interest
      bearing demand         $261,940    $280,453    $299,699    $248,315
     Interest-bearing
      demand                   76,027      70,471      81,415      71,450
     Money market
      accounts                454,250     554,357     548,099     553,850
     Savings accounts          14,135      14,452      13,809      13,808
     Time deposits of
      $100,000 or more        802,244     731,773     740,174     690,421
     Other time deposits      571,526     547,213     527,805     517,083
                              -------     -------     -------     -------
       Total deposits*     $2,180,122  $2,198,719  $2,211,001  $2,094,927
                           ==========  ==========  ==========  ==========
     LOANS BY SEGMENT
     Oklahoma banking        $966,243    $962,611    $965,952    $943,331
     Texas banking            947,603     892,998     857,160     797,700
     Kansas banking           304,855     288,268     277,887     287,339
     Other states banking     275,805     296,214     280,894     259,236
                              -------     -------     -------     -------
       Subtotal             2,494,506   2,440,091   2,381,893   2,287,606
     Secondary market          56,941      72,248      62,892      66,364
                               ------      ------      ------      ------
     Total loans           $2,551,447  $2,512,339  $2,444,785  $2,353,970
                           ==========  ==========  ==========  ==========
     NET INCOME BY
      SEGMENT
     Oklahoma banking          $3,783      $3,295      $2,923      $2,503
     Texas banking              2,036       1,332       1,777       2,406
     Kansas banking              (204)     (1,336)        (40)        458
     Other states banking         (89)        848       1,028         969
                                  ---         ---       -----         ---
       Subtotal                 5,526       4,139       5,688       6,336
     Secondary market             139        (149)         40        (174)
     Other operations          (2,440)     (1,684)     (1,566)       (954)
                               ------      ------      ------        ----
     Net income                $3,225      $2,306      $4,162      $5,208
                               ======      ======      ======      ======
     OFFICES AND
      EMPLOYEES
     FTE Employees                442         458         463         467
     ATM's                         41          41          40          40
     Branches                      18          18          17          17
     Loan production
      offices                       3           3           3           3
     Assets per employee       $6,515      $6,184      $5,989      $5,719
    
    *Calculation of Core Deposits and Core Funding
     (Non-GAAP Financial Measures)
    
         Total deposits    $2,180,122  $2,198,719  $2,211,001  $2,094,927
         Less:
            Brokered time
             deposits         359,793     338,667     369,580     337,330
            Other time
             deposits of
             $100,000 
             or more          445,896     398,337     381,349     365,875
                              -------     -------     -------     -------
         Core deposits     $1,374,433  $1,461,715  $1,460,072  $1,391,722
                           ----------  ----------  ----------  ----------
         Plus:
            Other time
             deposits of
             $100,000 
             or more          445,896     398,337     381,349     365,875
            Sweep repurchase
             agreements        38,034      47,955      41,203      35,087
                               ------      ------      ------      ------
         Core funding      $1,858,363  $1,908,007  $1,882,624  $1,792,684
                           ==========  ==========  ==========  ==========
    
    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)
    
    
                                                    2009
                                -------------------------------------------
                                Dec. 31     Sep. 30     Jun. 30     Mar. 31
                                -------     -------     -------     -------
     PERFORMANCE RATIOS
     Return on average
      assets
      (annualized)                0.46%       0.28%       0.81%       0.18%
     Return on average
      common equity
      (annualized)                4.06        1.78        8.26        1.77
     Return on average
      tangible equity
      (annualized)                4.78        2.87        8.12        1.83
     Net interest
      margin
      (annualized)                3.71        3.39        3.41        3.00
     Total dividends
      declared to net
      income                     34.31       57.46       20.58       92.00
     Effective tax rate          36.22       37.33       37.75       34.66
     Efficiency ratio            49.69       53.34       46.32       53.06
     ASSET QUALITY
      RATIOS
     Noncovered
     ----------
     Nonperforming
      assets to
      portfolio loans
      and
       other real estate
        owned                     4.87%       4.33%       3.41%       3.53%
     Nonperforming
      loans to
      portfolio loans             4.18        4.09        3.19        3.32
     Net loan charge-
      offs to average
      portfolio
       loans (annualized)         0.95        0.62        0.31        0.71
     Allowance for loan
      losses to
      portfolio loans             2.46        2.25        2.00        1.83
     Allowance for loan
      losses to
       nonperforming
        loans                    58.77       54.87       62.64       55.12
     Covered
     -------
     Nonperforming
      assets to
      portfolio loans
      and
       other real estate
        owned                    20.19%      20.55%      12.67%          -
     Nonperforming
      loans to
      portfolio loans            15.76       18.56       10.47           -
     NONPERFORMING
      ASSETS
     Noncovered
     ----------
     Nonaccrual loans         $105,887     $94,715     $74,205     $73,383
     90 days past due
      and accruing                 310      10,578       8,409      10,552
                                   ---      ------       -----      ------
      Total
       nonperforming
       loans                   106,197     105,293      82,614      83,935
     Other real estate
      owned                     18,432       6,389       6,003       5,351
                                ------       -----       -----       -----
      Total
       nonperforming
       assets                 $124,629    $111,682     $88,617     $89,286
                              ========    ========     =======     =======
     Potential problem
      loans                   $258,399    $255,051    $178,081    $133,810
                              ========    ========    ========    ========
     Covered
     -------
     Nonaccrual loans          $12,322     $14,686      $8,607          $-
     90 days past due
      and accruing               1,136       4,544       3,658           -
                                 -----       -----       -----         ---
      Total
       nonperforming
       loans                    13,458      19,230      12,265           -
     Other real estate
      owned                      4,748       2,598       2,938           -
                                 -----       -----       -----         ---
      Total
       nonperforming
       assets                  $18,206     $21,828     $15,203          $-
                               =======     =======     =======         ===
     Potential problem
      loans                     $8,874      $4,421      $5,977          $-
                                ======      ======      ======         ===
     ALLOWANCE ACTIVITY
     Balance, beginning
      of period                $57,777     $51,753     $46,262     $39,773
     Charge offs                 6,756       4,372       2,975       4,810
     Recoveries                    752         219         989         417
                                   ---         ---         ---         ---
      Net charge offs            6,004       4,153       1,986       4,393
     Provision for loan
      losses                    10,640      10,177       7,477      10,882
                                ------      ------       -----      ------
      Balance, end of
       period                  $62,413     $57,777     $51,753     $46,262
                               =======     =======     =======     =======
     CAPITAL RATIOS
     Average total
      shareholders'
      equity to
       average assets            10.31%      10.24%      10.35%      10.47%
     Leverage ratio              12.42       12.39       12.70       12.72
     Tier 1 capital to
      risk-weighted
      assets                     13.28       13.04       12.67       12.85
     Total capital to
      risk-weighted
      assets                     14.55       14.31       13.92       14.11
     Tangible common
      equity to
      tangible assets**           7.61        7.79        7.65        7.76
     REGULATORY CAPITAL
      DATA
     Tier I capital           $377,418    $374,805    $372,713    $369,482
     Total capital             413,438     411,201     409,764     405,613
     Total risk
      adjusted assets        2,841,476   2,873,558   2,942,821   2,875,290
     Average total
      assets                 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                $309,778    $309,118    $305,416    $300,406
       Less:
            Goodwill             6,811       6,811       6,811       7,071
            Preferred stock     67,037      66,872      66,710      66,549
                                ------      ------      ------      ------
       Tangible common
        equity                $235,930    $235,435    $231,895    $226,786
                              ========    ========    ========    ========
       Total assets         $3,108,291  $3,029,347  $3,038,985  $2,928,133
       Less goodwill             6,811       6,811       6,811       7,071
                                 -----       -----       -----       -----
       Tangible assets      $3,101,480  $3,022,536  $3,032,174  $2,921,062
                            ==========  ==========  ==========  ==========
       Tangible common
        equity to
        tangible assets           7.61%       7.79%       7.65%       7.76%
    
    
                                                    2008
                                -------------------------------------------
                                Dec. 31     Sep. 30     Jun. 30     Mar. 31
                                -------     -------     -------     -------
     PERFORMANCE RATIOS
     Return on average
      assets
      (annualized)                0.45%       0.33%       0.62%       0.80%
     Return on average
      common equity
      (annualized)                5.15        3.97        7.38        9.43
     Return on average
      tangible equity
      (annualized)                5.79        4.26        7.86        9.94
     Net interest
      margin
      (annualized)                3.22        3.39        3.38        3.45
     Total dividends
      declared to net
      income                     50.49       59.85       33.16       26.37
     Effective tax rate          39.74       40.29       38.07       38.40
     Efficiency ratio            53.37       60.67       62.23       59.69
     ASSET QUALITY
      RATIOS
     Noncovered
     ----------
     Nonperforming
      assets to
      portfolio loans
      and
       other real estate
        owned                     2.80%       2.72%       1.45%       1.41%
     Nonperforming
      loans to
      portfolio loans             2.56        2.62        1.35        1.27
     Net loan charge-
      offs to average
      portfolio
       loans (annualized)         0.44        0.39        0.31        0.34
     Allowance for loan
      losses to
      portfolio loans             1.59        1.47        1.32        1.31
     Allowance for loan
      losses to
       nonperforming
        loans                    62.16       56.07       97.62      103.49
     Covered
     -------
     Nonperforming
      assets to
      portfolio loans
      and
       other real estate
        owned                        -           -           -           -
     Nonperforming
      loans to
      portfolio loans                -           -           -           -
     NONPERFORMING
      ASSETS
     Noncovered
     ----------
     Nonaccrual loans          $59,310     $61,557     $30,861     $26,134
     90 days past due
      and accruing               4,673       2,299       1,242       2,807
                                 -----       -----       -----       -----
      Total
       nonperforming
       loans                    63,983      63,856      32,103      28,941
     Other real estate
      owned                      6,092       2,685       2,523       3,328
                                 -----       -----       -----       -----
      Total
       nonperforming
       assets                  $70,075     $66,541     $34,626     $32,269
                               =======     =======     =======     =======
     Potential problem
      loans                   $131,516     $86,070     $71,070     $69,588
                              ========     =======     =======     =======
     Covered
     -------
     Nonaccrual loans               $-          $-          $-          $-
     90 days past due
      and accruing                   -           -           -           -
                                   ---         ---         ---         ---
      Total
       nonperforming
       loans                         -           -           -           -
     Other real estate
      owned                          -           -           -           -
                                   ---         ---         ---         ---
      Total
       nonperforming
       assets                       $-          $-          $-          $-
                                   ===         ===         ===         ===
     Potential problem
      loans                         $-          $-          $-          $-
                                   ===         ===         ===         ===
     ALLOWANCE ACTIVITY
     Balance, beginning
      of period                $35,807     $31,341     $29,950     $29,584
     Charge offs                 3,254       2,752       1,892       2,044
     Recoveries                    522         363          93         174
                                   ---         ---         ---         ---
      Net charge offs            2,732       2,389       1,799       1,870
     Provision for loan
      losses                     6,698       6,855       3,190       2,236
                                 -----       -----       -----       -----
      Balance, end of
       period                  $39,773     $35,807     $31,341     $29,950
                               =======     =======     =======     =======
     CAPITAL RATIOS
     Average total
      shareholders'
      equity to
       average assets             8.85%       8.26%       8.35%       8.49%
     Leverage ratio              13.06       10.51        9.66        9.91
     Tier 1 capital to
      risk-weighted
      assets                     13.01       10.49        9.40        9.47
     Total capital to
      risk-weighted
      assets                     14.26       11.88       10.65       10.69
     Tangible common
      equity to
      tangible assets**           7.96        7.75        7.88        8.15
     REGULATORY CAPITAL
      DATA
     Tier I capital           $369,049    $293,141    $261,354    $258,272
     Total capital             404,695     332,012     296,166     291,638
     Total risk
      adjusted assets        2,837,473   2,793,843   2,780,538   2,727,853
     Average total
      assets                 2,826,464   2,787,979   2,705,244   2,605,963
    
     **Calculation of Tangible Capital to Tangible
      Assets (Non-GAAP Financial Measure)
       Total
        shareholders'
        equity                $302,203    $226,123    $224,949    $224,155
       Less:
            Goodwill             7,071       7,071       7,071       7,071
            Preferred stock     66,392           -           -           -
                                ------         ---         ---         ---
       Tangible common
        equity                $228,740    $219,052    $217,878    $217,084
                              ========    ========    ========    ========
       Total assets         $2,879,762  $2,832,371  $2,773,013  $2,670,580
       Less goodwill             7,071       7,071       7,071       7,071
                                 -----       -----       -----       -----
       Tangible assets      $2,872,691  $2,825,300  $2,765,942  $2,663,509
                            ==========  ==========  ==========  ==========
       Tangible common
        equity to
        tangible assets           7.96%       7.75%       7.88%       8.15%
    
    Balance sheet amounts and ratios are as of period end unless otherwise 
     noted.
    

SOURCE Southwest Bancorp, Inc.



RELATED LINKS

http://www.oksb.com