Southwest Bancorp (OKSB) 8-K Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

Exhibit 99

	For additional information:
		Rick Green
		President & CEO
		Kerby E. Crowell
		EVP & CFO
For Immediate Release		(405) 372-2230

Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

     April 19, 2010, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (NASDAQ Global Select Market—OKSB), (“Southwest”), today reported net income available to common shareholders of $3.3 million, or $0.23 per diluted share for the first quarter 2010, compared to $296,000, or $0.02 per diluted share for the first quarter of 2009, and $2.5 million, or $0.17 per diluted share for the fourth quarter of 2009. At March 31, 2010, total assets were $3.1 billion.

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

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

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

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

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

Financial Overview

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

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

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

	NASDAQ: OKSB
	OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

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

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

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

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

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

     First Quarter Results:

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

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

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

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

	NASDAQ: OKSB
	OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

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

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

Southwest Bancorp and Subsidiaries

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

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

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

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

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

Forward-Looking Statements

     This Press Release includes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include: statements of Southwest’s goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk and interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; and statements of Southwest’s ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties, because they are based upon: the amount and

	NASDAQ: OKSB
	OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

time of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; and a variety of other matters. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest’s past growth and performance do not necessarily indicate its future results.

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

	NASDAQ: OKSB
	OKSBP
Southwest Bancorp Inc. Reports First Quarter 2010 Earnings

Financial Tables

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

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

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

* This is a Non-GAAP financial measure. Please see Table 6 for a reconciliation to the most directly comparable GAAP based measure.

Please see accompanying tables for additional financial information.

SOUTHWEST BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share) Table 2

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

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

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

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

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

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

SOUTHWEST BANCORP, INC.	Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA
(Dollars in thousands except per share)

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

Continued

* This is a Non-GAAP based financial measure.

SOUTHWEST BANCORP, INC.	Table 5
UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA	Continued
(Dollars in thousands except per share)

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

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

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

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

** Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)

Total shareholders’ equity	$	315,341		$	309,778		$	309,118		$	305,416		$	300,406
Less:
Goodwill		6,811			6,811			6,811			6,811			7,071
Preferred stock		67,205			67,037			66,872			66,710			66,549
Tangible common equity	$	241,325		$	235,930		$	235,435		$	231,895		$	226,786
Total assets	$	3,074,923		$	3,108,291		$	3,029,347		$	3,038,985		$	2,928,133
Less goodwill		6,811			6,811			6,811			6,811			7,071
Tangible assets	$	3,068,112		$	3,101,480		$	3,022,536		$	3,032,174		$	2,921,062
Tangible common equity to tangible assets		7.87	%		7.61	%		7.79	%		7.65	%		7.76	%

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