STILLWATER, Okla., April 16 /PRNewswire-FirstCall/ -- Southwest Bancorp, Inc. (NASDAQ:OKSB), ("Southwest"), today reported net income available to common shareholders of $296,000, or $0.02 per diluted share for the first quarter 2009, compared to $5.2 million, or $0.36 per diluted share for the first quarter of 2008, and $3.0 million, or $0.20 per diluted share for the fourth quarter of 2008. At March 31, 2009, total assets were $2.9 billion. (Logo: http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGO) "We know that 2009 will be a challenging year, but we continue to focus on our strategic goal of building long-term shareholder value as we work through these difficult times," stated Rick Green, President and Chief Executive Officer. "During the first quarter, we continued to follow our strategic vision of prudent loan growth in carefully selected markets in Texas, Oklahoma and Kansas; careful expansion of our community banking operations; and continued our focus on building liquidity. In the quarter, we increased portfolio loans by $31.8 million, up 1%, from year-end 2008 and increased our core deposits by $105.3 million, up 8%. "In early 2008, we decided to increase capital resources to support our operations during the uncertain economic conditions ahead. By March 31, 2009, we had increased our shareholders' equity to $300.4 million, up $76.3 million, or 34%, over March 31, 2008, and our capital ratios substantially exceeded the levels for regulatory classification as "well-capitalized". "The decrease in first quarter net income available to common shareholders is the result of an increase in the provision for loan losses, a decrease in net interest income, and dividends on the preferred stock we issued late last year. The changes in net interest income and the provision for loan losses were driven mainly by economic conditions that adversely affect our net interest margin and the value of commercial real estate securing loans. These negative factors were partially offset by decreases in income taxes and personnel expenses and an increase in gains on sale of investment securities." Please review the following "Financial Overview" and the accompanying tables for important additional information regarding our results and plans. Financial Overview Condition: Total assets were $2.9 billion at March 31, 2009, an increase of 2% from December 31, 2008. At March 31, 2009 total loans were $2.6 billion, also an increase of 2% from December 31, 2008. At March 31, 2009, the allowance for loan losses was $46.3 million, up 54% from March 31, 2008 and up 16% from year-end 2008, and represented 1.83% of portfolio loans versus 1.31% at March 31, 2008 and 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. The provision for loan losses increased by $8.6 million, or 387%, over the provision for the first quarter of 2008. Nonperforming assets to portfolio loans and other real estate owned were 3.53% at March 31, 2009 compared to 1.41% at March 31, 2008 and 2.80% at December 31, 2008. A breakdown of portfolio loans and nonperforming assets by type are shown in the following table: Percentage of total Percentage of (dollars in Portfolio portfolio Nonperforming nonperforming thousands) loans loans assets assets ----- ----- ------ ------ Real estate construction $719,056 28.46% $41,213 46.16% Commercial real estate 1,097,923 43.46 28,452 31.87 Commercial 558,834 22.12 13,368 14.97 Other real estate owned - - 5,351 5.99 Residential real estate mortgages 108,548 4.30 466 0.52 Other consumer loans 41,932 1.66 436 0.49 ------ ---- --- ---- Total $2,526,293 100.00% $89,286 100.00% Nonaccrual loans, which are the majority of nonperforming assets, were $73.4 million as of March 31, 2009, an increase of $14.1 million from December 31, 2008. These loans are carried at their estimated collectible amounts and no longer accrue interest. The increase in nonaccrual loans is primarily due to three collateral dependent lending relationships that are secured by real estate. Loans 90 days or more past due, another component of nonperforming assets, increased $5.9 million from December 31, 2008. These loans are deemed to have sufficient collateral and are in the process of being collected. Performing loans considered potential problem loans, which are not included in the past due, nonaccrual, or restructured categories, but for which known information about possible credit problems cause management to be uncertain as to the ability of the borrowers to comply with the present loan repayment terms, amounted to approximately $133.8 million at March 31, 2009, an increase of $2.3 million from December 31, 2008. These loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses. Total deposits were $2.3 billion at March 31, 2009, up $150.0 million from December 31, 2008. Core deposits were 64% of total deposits or $1.5 billion, an increase of $105.3 million, or 8%, from December 31, 2008. At March 31, 2009, wholesale funding accounted for 21% of total funding compared to 24% at December 31, 2008. On March 31, 2009, Southwest exceeded all applicable regulatory capital requirements, having a total risk-based capital ratio of 14.11%, a Tier 1 risk-based capital ratio of 12.85%, and a leverage ratio of 12.72%. 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 $118.1 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 decrease in our net income available to common shareholders from the first quarter of 2008 was the result of an $8.6 million increase in the provision for loan losses, a $795,000 decrease in net interest income, a $538,000 increase in FDIC insurance and other insurance expense, and $875,000 in quarterly dividends on the preferred stock that we issued in December 2008, offset in part by a $2.5 million decrease in income tax expense, a $2.0 million decrease in personnel costs, and a $1.7 million increase in gain on sale of investment securities. Net Interest Income: Net interest income totaled $21.0 million for the first quarter of 2009 compared to $21.8 million for the first quarter of 2008 and $22.4 million for the fourth quarter of 2008. Net interest margin was 3.00% for the first quarter of 2009 compared to 3.45% for the first quarter of 2008, and 3.22% for the fourth quarter of 2008. The yield on earning assets decreased more rapidly than the rates paid on interest bearing liabilities. Provision for Loan Losses: The provision for loan losses totaled $10.9 million for the first quarter of 2009 compared to $2.2 for the first quarter of 2008 and $6.7 million for the fourth quarter of 2008. Net charge offs totaled $4.4 million, or 0.71% (annualized) of average portfolio loans for the first quarter of 2009, compared to $1.9 million, or 0.34% (annualized) and to $2.7 million, or 0.44% (annualized) of average portfolio loans, for the first and fourth quarters of 2008, respectively. Noninterest Income: Noninterest income totaled $6.5 million for the first quarter of 2009 compared to $4.7 million for the first quarter of 2008. The increase in noninterest income from the first quarter of 2008 was the result of a $1.7 million increase in gain on sale of investment securities and a $143,000 increase in service charges and fee income, offset in part by a $122,000 decrease in gain on sale of loans. Noninterest Expense: Noninterest expense decreased $1.2 million from the first quarter 2008 to the first quarter of 2009 to $14.6 million. The decrease consists of a $2.0 million decrease in personnel expense and an $112,000 decrease in other real estate expense, offset by a $538,000 increase in FDIC and other insurance expense, a $273,000 increase in occupancy expense, and a $108,000 increase in other general and administrative expenses. The efficiency ratio for the first quarter of 2009 improved to 53.06% from 59.69% and 53.37% for the first and fourth quarters of 2008, respectively. Southwest Bancorp and Subsidiaries Southwest Bancorp is the financial holding company for Stillwater National Bank and Trust Company, Bank of Kansas, 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 City, Edmond, Stillwater, Tulsa, and Chickasha, Oklahoma; Austin, Dallas, Houston and San Antonio, Texas; and Hutchinson, Kansas City, and Wichita, Kansas, and on the Internet, through SNB DirectBanker(R). Southwest focuses on converting its strategic vision into long-term shareholder value. Our vision includes an established niche banking model focused on healthcare and commercial real estate financial services and a community banking model focused on more traditional banking operations in Texas, Oklahoma, and Kansas. Southwest's strategic growth goals include prudent growth from existing and additional offices in carefully selected markets with concentrations of healthcare and health professionals, businesses, and their managers and owners, and commercial and commercial real estate borrowers, and careful expansion of community banking operations. We plan to reduce the percentage of commercial real estate loans to total portfolio loans in view of current economic conditions. Our plan focuses 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. Southwest's common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest's 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 market risk or interest rate risk; 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. 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-2009 and 2008..........Table 5 Unaudited Supplemental Analytical Data by Quarter-2009 and 2008....Table 6 SOUTHWEST BANCORP, INC. Table 1 UNAUDITED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share) First Quarter Fourth Quarter ---------- ------------- QUARTERLY HIGHLIGHTS % % 2009 2008 Change 2008 Change ---- ---- ------ ---- ------ Operations Net interest income $21,038 $21,833 (4)% $22,414 (6)% Provision for loan losses 10,882 2,236 387 6,698 62 Noninterest income 6,477 4,688 38 3,429 89 Noninterest expense 14,599 15,830 (8) 13,793 6 Income before taxes 2,034 8,455 (76) 5,352 (62) Taxes on income 705 3,247 (78) 2,127 (67) Net income 1,329 5,208 (74) 3,225 (59) Net income available to common shareholders 296 5,208 (94) 3,012 (90) Diluted earnings per share 0.02 0.36 (94) 0.20 (90) Balance Sheet Total assets 2,928,133 2,670,580 10 2,879,762 2 Loans held for sale 76,404 66,364 15 56,941 34 Portfolio loans 2,526,293 2,287,606 10 2,494,506 1 Total deposits 2,330,089 2,094,927 11 2,180,122 7 Total shareholders' equity 300,406 224,155 34 302,203 (1) Book value per share 16.01 15.43 4 16.18 (1) Key Ratios Net interest margin 3.00% 3.45% 3.22% Efficiency ratio (GAAP-based) 53.06 59.69 53.37 Total capital to risk-weighted assets 14.11 10.69 14.26 Nonperforming loans to portfolio loans 3.32 1.27 2.56 Shareholders' equity to total assets 10.26 8.39 10.49 Tangible common equity to total assets 7.75 8.13 7.94 Return on average assets 0.18 0.80 0.45 Return on average equity 1.77 9.43 5.11 SOUTHWEST BANCORP, INC. Table 2 UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share) March 31, December 31, March 31, 2009 2008 2008 ---- ---- ---- Assets Cash and due from banks $50,655 $27,287 $37,569 Investment securities: Held to maturity. Fair value: $7,388 $7,293, $8,411 7,344 7,343 8,339 Available for sale. Amortized cost: $151,686 $233,293, $209,111 152,826 238,037 210,382 Other investments, at cost 18,836 18,786 17,338 Loans held for sale 76,404 56,941 66,364 Loans receivable 2,526,293 2,494,506 2,287,606 Less: Allowance for loan losses (46,262) (39,773) (29,950) ------- ------- ------- Net loans receivable 2,480,031 2,454,733 2,257,656 Accrued interest receivable 10,524 11,512 15,631 Premises and equipment, net 24,098 24,580 24,006 Other real estate owned 5,351 6,092 3,328 Goodwill 7,071 7,071 7,071 Other intangible assets, net 3,868 3,764 4,205 Other assets 91,125 23,616 18,691 ------ ------ ------ Total assets $2,928,133 $2,879,762 $2,670,580 ========== ========== ========== Liabilities and shareholders' equity Deposits: Noninterest-bearing demand $274,175 $261,940 $248,315 Interest-bearing demand 85,629 76,027 71,450 Money market accounts 467,924 454,250 553,850 Savings accounts 15,797 14,135 13,808 Time deposits of $100,000 or more 849,814 802,244 690,421 Other time deposits 636,750 571,526 517,083 ------- ------- ------- Total deposits 2,330,089 2,180,122 2,094,927 Accrued interest payable 6,391 7,018 8,520 Income tax payable 5,938 3,651 4,647 Other liabilities 9,607 9,667 9,425 Other borrowings 193,739 295,138 282,513 Subordinated debentures 81,963 81,963 46,393 ------ ------ ------ Total liabilities 2,627,727 2,577,559 2,446,425 Shareholders' equity Preferred stock, Series B - $1,000 par value; 1,250,000 shares authorized; 70,000 shares issued 66,549 66,392 - Common stock - $1 par value; 20,000,000 shares authorized; 14,658,042 shares issued 14,658 14,658 14,658 Paid in capital 48,851 49,101 45,784 Retained earnings 170,528 170,579 165,318 Accumulated other comprehensive income 720 2,921 802 Treasury stock, at cost, 49,930, 80,383, 133,605 shares (900) (1,448) (2,407) ---- ------ ------ Total shareholders' equity 300,406 302,203 224,155 ------- ------- ------- Total liabilities and shareholders' equity $2,928,133 $2,879,762 $2,670,580 ========== ========== ========== SOUTHWEST BANCORP, INC. Table 3 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except per share) For the three months ended March 31, --------------- 2009 2008 ----- ----- Interest income Loans $33,268 $40,610 Investment securities 2,512 2,336 Other interest-earning assets 6 28 -- -- Total interest income 35,786 42,974 Interest expense Interest-bearing deposits 12,060 18,254 Other borrowings 1,284 2,029 Subordinated debentures 1,404 858 ----- --- Total interest expense 14,748 21,141 ------ ------ Net interest income 21,038 21,833 Provision for loan losses 10,882 2,236 ------ ----- Net interest income after provision for loan losses 10,156 19,597 Noninterest income Service charges and fees 2,600 2,457 Gain on sales of loans 718 840 Gain on investment securities 2,921 1,245 Other noninterest income 238 146 --- --- Total noninterest income 6,477 4,688 Noninterest expense Salaries and employee benefits 7,239 9,222 Occupancy 2,731 2,458 FDIC and other insurance 991 453 Other real estate, net (102) 10 General and administrative 3,740 3,687 ----- ----- Total noninterest expenses 14,599 15,830 ------ ------ Income before taxes 2,034 8,455 Taxes on income 705 3,247 --- ----- Net income $1,329 $5,208 ====== ====== Net income available to common shareholders $296 $5,208 ==== ====== Basic earnings per common share $0.02 $0.36 Diluted earnings per common share 0.02 0.36 Common dividends declared per share 0.0238 0.0950 SOUTHWEST BANCORP, INC. Table 4 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES (Dollars in thousands) For the three months ended March 31, ------------------------------------- 2009 2008 ---- ---- Average Average Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate ------- -------- ------ ------- -------- ------ Assets Loans $2,595,124 $33,268 5.20% $2,304,966 $40,610 7.09% Investment securities 248,499 2,512 4.10 236,848 2,336 3.97 Other interest- earning assets 2,785 6 0.87 2,763 28 4.08 ----- - ----- -- Total interest- earning assets 2,846,408 35,786 5.10 2,544,577 42,974 6.79 Other assets 68,949 72,879 ------ ------ Total assets $2,915,357 $2,617,456 ========== ========== Liabilities and Shareholders' Equity Interest- bearing demand deposits $88,714 $153 0.70% $72,734 $141 0.78% Money market accounts 469,428 1,353 1.17 546,034 4,528 3.34 Savings accounts 15,074 9 0.24 13,463 22 0.66 Time deposits 1,442,587 10,545 2.96 1,208,782 13,563 4.51 --------- ------ --------- ------ Total interest- bearing deposits 2,015,803 12,060 2.43 1,841,013 18,254 3.99 Other borrowings 236,464 1,284 2.20 238,811 2,029 3.42 Subordinated debentures 81,963 1,404 6.85 46,393 858 7.40 ------ ----- ------ --- Total interest- bearing liabilities 2,334,230 14,748 2.56 2,126,217 21,141 4.00 ------ ---- ------ ---- Noninterest- bearing demand deposits 256,493 247,241 Other liabilities 19,405 21,756 Shareholders' equity 305,229 222,242 ------- ------- Total liabilities and share- holders' equity $2,915,357 $2,617,456 ========== ========== Net interest income and spread $21,038 2.54% $21,833 2.79% ======= ==== ======= ==== Net interest margin (1) 3.00% 3.45% ==== ==== Average interest- earning assets to average interest- bearing liabilities 121.94% 119.68% ====== ====== (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) 2009 2008 ------ ---- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 --------- --------- --------- --------- --------- OPERATIONS Interest income: Loans $33,268 $36,183 $38,441 $37,485 $40,610 Investment securities 2,512 2,693 2,531 2,426 2,336 Other interest- earning assets 6 19 22 20 28 - -- -- -- -- Total interest income 35,786 38,895 40,994 39,931 42,974 Interest expense: Interest bearing demand deposits 153 130 147 166 141 Money market accounts 1,353 2,132 2,898 3,062 4,528 Savings accounts 9 11 17 19 22 Time deposits of $100,000 or more 5,980 6,419 6,879 7,051 7,865 Other time deposits 4,565 4,571 4,457 4,809 5,698 ----- ----- ----- ----- ----- Total interest- bearing deposits 12,060 13,263 14,398 15,107 18,254 Other borrowings 1,284 1,487 1,839 1,887 2,029 Subordinated debentures 1,404 1,731 1,569 653 858 ----- ----- ----- --- --- Total interest expense 14,748 16,481 17,806 17,647 21,141 ------ ------ ------ ------ ------ Net interest income 21,038 22,414 23,188 22,284 21,833 Provision for loan losses 10,882 6,698 6,855 3,190 2,236 Noninterest income: Service charges and fees 2,600 2,908 2,849 2,812 2,457 Gain on sales of loans 718 620 601 603 840 Gain (loss) on investment securities 2,921 (296) (50) 3 1,245 Other noninterest income 238 197 662 541 146 --- --- --- --- --- Total noninterest income 6,477 3,429 4,062 3,959 4,688 Noninterest expense: Salaries and employee benefits 7,239 6,389 8,863 8,856 9,222 Occupancy 2,731 2,844 2,968 2,602 2,458 FDIC and other insurance 991 645 469 521 453 Other real estate, net (102) 31 (92) 197 10 Provision for unfunded loan commitments 90 385 90 15 145 Other general and administrative 3,650 3,499 4,235 4,141 3,542 ----- ----- ----- ----- ----- Total noninterest expenses 14,599 13,793 16,533 16,332 15,830 ------ ------ ------ ------ ------ Income before taxes 2,034 5,352 3,862 6,721 8,455 Taxes on income 705 2,127 1,556 2,559 3,247 --- ----- ----- ----- ----- Net income $1,329 $3,225 $2,306 $4,162 $5,208 ====== ====== ====== ====== ====== Net income available to common shareholders $296 $2,982 $2,306 $4,162 $5,208 ==== ====== ====== ====== ====== PER SHARE DATA Basic earnings per common share $0.02 $0.21 $0.16 $0.29 $0.36 Diluted earnings per common share 0.02 0.20 0.16 0.28 0.36 Common dividends declared per share 0.0238 0.9500 0.0950 0.0950 0.0950 Book value per share 16.01 16.18 15.56 15.49 15.43 Tangible book value per share 15.52 15.69 15.08 15.00 14.95 OTHER FINANCIAL DATA Investment securities $179,006 $264,166 $241,728 $234,429 $236,059 Loans held for sale 76,404 56,941 72,248 62,892 66,364 Portfolio loans 2,526,293 2,494,506 2,440,091 2,381,893 2,287,606 Total loans 2,602,697 2,551,447 2,512,339 2,444,785 2,353,970 Total assets 2,928,133 2,879,762 2,832,371 2,773,013 2,670,580 Total deposits 2,330,089 2,180,122 2,198,719 2,211,001 2,094,927 Other borrowings 193,739 295,138 299,118 265,614 282,513 Subordinated debentures 81,963 81,963 81,963 46,393 46,393 Total shareholders' equity 300,406 302,203 226,123 224,949 224,155 Mortgage servicing portfolio 179,959 158,143 153,250 147,672 145,028 Continued SOUTHWEST BANCORP, INC. Table 5 UNAUDITED QUARTERLY SUMMARY FINANCIAL DATA Continued (Dollars in thousands except per share) 2009 2008 ---- ---- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 --------- --------- --------- --------- --------- PERFORMANCE RATIOS Return on average assets (annualized) 0.18% 0.45% 0.33% 0.62% 0.80% Return on average common equity (annualized) 1.77 5.15 3.97 7.38 9.43 Return on average tangible equity (annualized) 1.83 5.79 4.26 7.86 9.94 Net interest margin 3.00 3.22 3.39 3.38 3.45 Total dividends declared to net income available to common shareholders 92.00 50.49 59.85 33.16 26.37 Effective tax rate 34.66 39.74 40.29 38.07 38.40 Efficiency ratio 53.06 53.37 60.67 62.23 59.69 ASSET QUALITY RATIOS Nonperforming assets to portfolio loans and other real estate owned 3.53% 2.80% 2.72% 1.45% 1.41% Nonperforming loans to portfolio loans 3.32 2.56 2.62 1.35 1.27 Net loan charge-offs to average portfolio loans 0.71 0.44 0.39 0.31 0.34 Allowance for loan losses to total loans 1.78 1.56 1.43 1.28 1.27 Allowance for loan losses to portfolio loans 1.83 1.59 1.47 1.32 1.31 Allowance for loan losses to nonperforming loans 55.12 62.16 56.07 97.62 103.49 CAPITAL RATIOS Average total shareholders' equity to average assets 10.47% 8.85% 8.26% 8.35% 8.49% Leverage ratio 12.72 13.06 10.51 9.66 9.91 Tier 1 capital to risk- weighted assets 12.85 13.01 10.49 9.40 9.47 Total capital to risk- weighted assets 14.11 14.26 11.88 10.65 10.69 LOANS BY SEGMENT Oklahoma banking $949,454 $966,243 $962,611 $965,952 $943,331 Texas banking 990,135 947,603 892,998 857,160 797,700 Kansas banking 309,774 304,855 288,268 277,887 287,339 Other states banking 276,930 275,805 296,214 280,894 259,236 ------- ------- ------- ------- ------- Subtotal 2,526,293 2,494,506 2,440,091 2,381,893 2,287,606 Secondary market 76,404 56,941 72,248 62,892 66,364 Total loans $2,602,697 $2,551,447 $2,512,339 $2,444,785 $2,353,970 ========== ========== ========== ========== ========== NET INCOME BY SEGMENT Oklahoma banking $3,210 $3,783 $3,295 $2,923 $2,503 Texas banking 1,119 2,036 1,332 1,777 2,406 Kansas banking 598 (204) (1,336) (40) 458 Other states banking (1,974) (89) 848 1,028 969 ------ --- --- ----- --- Subtotal 2,953 5,526 4,139 5,688 6,336 Secondary market (61) 139 (149) 40 (174) Other operations (1,563) (2,440) (1,684) (1,566) (954) ------ ------ ------ ------ ---- Net income $1,329 $3,225 $2,306 $4,162 $5,208 ====== ====== ====== ====== ====== OFFICES AND EMPLOYEES FTE Employees 425 442 458 463 467 ATM's 40 41 41 40 40 Branches 18 18 18 17 17 Loan production offices 3 3 3 3 3 Assets per employee $6,890 $6,515 $6,184 $5,989 $5,719 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) 2009 2008 --------- ---- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 --------- --------- --------- --------- --------- LOAN COMPOSITION Real estate mortgage: Commercial $1,098,587 $1,118,828 $1,077,601 $991,679 $846,757 One-to-four family residential 114,111 113,665 116,270 118,056 110,938 Real estate construction Commercial 640,132 579,795 554,496 583,784 654,039 One-to-four family residential 79,309 79,565 79,843 82,972 90,051 Commercial 558,834 564,670 574,087 566,830 544,183 Installment and consumer: Guaranteed student loans 69,792 54,057 67,610 57,413 63,706 Other 41,932 40,867 42,432 44,051 44,296 ------ ------ ------ ------ ------ Total loans, including held for sale 2,602,697 2,551,447 2,512,339 2,444,785 2,353,970 Less allowance for loan losses (46,262) (39,773) (35,807) (31,341) (29,950) ------- ------- ------- ------- ------- Total loans, net $2,556,435 $2,511,674 $2,476,532 $2,413,444 $2,324,020 ========== ========== ========== ========== ========== By statement of condition category: Loans held for sale: Student loans $69,791 $54,057 $67,610 $57,413 $63,706 One-to-four family residential 5,563 1,790 3,500 4,283 1,417 Other 1,050 1,094 1,138 1,196 1,241 ----- ----- ----- ----- ----- Total loans held for sale 76,404 56,941 72,248 62,892 66,364 Portfolio loans 2,526,293 2,494,506 2,440,091 2,381,893 2,287,606 --------- --------- --------- --------- --------- Total loans before allowance $2,602,697 $2,551,447 $2,512,339 $2,444,785 $2,353,970 ========== ========== ========== ========== ========== DEPOSIT COMPOSITION Non-interest bearing demand $274,175 $261,940 $280,453 $299,699 $248,315 Interest- bearing demand 85,629 76,027 70,471 81,415 71,450 Money market accounts 467,924 454,250 554,357 548,099 553,850 Savings accounts 15,797 14,135 14,452 13,809 13,808 Time deposits of $100,000 or more 849,814 802,244 731,773 740,174 690,421 Other time deposits 636,750 571,526 547,213 527,805 517,083 ------- ------- ------- ------- ------- Total deposits $2,330,089 $2,180,122 $2,198,719 $2,211,001 $2,094,927 ========== ========== ========== ========== ========== NONPERFORMING ASSETS Nonaccrual loans $73,383 $59,310 $61,557 $30,861 $26,134 90 days past due and accruing 10,552 4,673 2,299 1,242 2,807 ------ ----- ----- ----- ----- Total nonperforming loans 83,935 63,983 63,856 32,103 28,941 Other real estate owned 5,351 6,092 2,685 2,523 3,328 ----- ----- ----- ----- ----- Total nonperforming assets $89,286 $70,075 $66,541 $34,626 $32,269 ======= ======= ======= ======= ======= Potential nonperforming loans $133,810 $131,516 $86,070 $71,070 $69,588 ======== ======== ======= ======= ======= ALLOWANCE ACTIVITY Balance, beginning of period $39,773 $35,807 $31,341 $29,950 $29,584 Charge offs 4,810 3,254 2,752 1,892 2,044 Recoveries 417 522 363 93 174 --- --- --- -- --- Net charge offs 4,393 2,732 2,389 1,799 1,870 Provision for loan losses 10,882 6,698 6,855 3,190 2,236 ------ ----- ----- ----- ----- Balance, end of period $46,262 $39,773 $35,807 $31,341 $29,950 ======= ======= ======= ======= ======= REGULATORY CAPITAL DATA Tier I capital $369,482 $369,049 $293,141 $261,354 $258,272 Total capital 405,613 404,695 332,012 296,166 291,638 Total risk adjusted assets 2,875,286 2,837,473 2,793,843 2,780,538 2,727,853 COMMON STOCK Issued 14,658,042 14,658,042 14,658,042 14,658,042 14,658,042 Less treasury shares (49,930) (80,383) (129,586) (131,566) (133,605) ------- ------- -------- -------- -------- Outstanding shares 14,608,112 14,577,659 14,528,456 14,526,476 14,524,437 ========== ========== ========== ========== ========== INTANGIBLE ASSET DATA Goodwill $7,071 $7,071 $7,071 $7,071 $7,071 Core deposit intangible 2,498 2,596 2,693 2,792 2,893 Mortgage servicing rights 1,362 1,159 1,417 1,354 1,299 Nonmortgage servicing rights 8 9 10 11 13 - - -- -- -- Total intangible assets $10,939 $10,835 $11,191 $11,228 $11,276 ======= ======= ======= ======= ======= Intangible amortization expense $204 $214 $212 $215 $257 ==== ==== ==== ==== ==== Balance sheet amounts are as of period end unless otherwise noted. http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGO http://photoarchive.ap.org/ DATASOURCE: Southwest Bancorp, Inc. CONTACT: Rick Green, President & CEO, or Kerby E. Crowell, EVP & CFO, both of Southwest Bancorp, Inc., +1-405-372-2230 Web Site: http://www.oksb.com/

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