updated 4/19/2011 8:46:03 AM ET 2011-04-19T12:46:03

STILLWATER, Okla., April 19, 2011 (GLOBE NEWSWIRE) -- Southwest Bancorp, Inc. (Nasdaq:OKSB) (Nasdaq:OKSBP), ("Southwest"), today reported net income available to common shareholders of $1.4 million, or $0.07 per diluted share for the first quarter of 2011, compared to $3.3 million, or $0.23 per diluted share for the first quarter of 2010, and $3.3 million, or $0.17 per diluted share for the fourth quarter of 2010.

Rick Green, Southwest Bancorp's President and Chief Executive Officer, stated, "Our first quarter of the new year continued to be profitable after a significant provision for loan losses. The Board of Directors and management are dedicated to the resolution of problem credits, the maintenance of capital and liquidity, stability in net interest income, and control of operating expenses.

"Credits and Concentrations. We continue to manage our loan portfolio with our ongoing, disciplined workout process focused on addressing the challenges of the commercial real estate construction and commercial mortgage sectors. Our noncovered nonperforming assets were slightly up from year-end, primarily due to an increase in other real estate. The dollar amount of nonperforming loans was essentially unchanged from year-end. However, the composition has changed as our resolution process continues. We placed $26.5 million on nonaccrual, but returned $8.4 million to accrual status, charged-off $10.7 million, and received $2.8 million in resolutions and payments on nonperforming loans. At quarter-end our potential problem loans were $204.8 million, down $28.3 million, or 12%, from year-end, and $71.1 million, or 26%, from March 31, 2010. We believe that levels of nonperforming loans and potential problem loans are likely to fluctuate up and down as the process continues. 

"Our noncovered loans decreased by $86.0 million, or 4%, from year-end and $261.5 million, or 10%, from March 31, 2010.  This decrease allowed us to reduce our commercial real estate mortgage and construction concentration to $1.7 billion, or 75%, of noncovered loans at March 31, 2011. Our healthcare credits at quarter-end totaled $684.7 million, or 30%, of noncovered loans, including $414.3 million of healthcare related commercial real estate mortgage and construction loans. Nonperforming healthcare assets at quarter-end were $17.4 million, or 12%, of total nonperforming assets. Approximately 80% of our nonperforming assets are in Texas, Oklahoma, and Kansas. 

"At March 31, 2011, the allowance for loan losses was 2.82% of noncovered portfolio loans, compared to 2.80% at year-end 2010 and 2.59% at March 31, 2010.

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

"Capital Base. Southwest and its banking subsidiaries have maintained capital levels that substantially exceed the minimums for regulatory "well-capitalized" status. At March 31, 2011, Southwest's total regulatory capital was $478.7 million, for a total risk-based capital ratio of 19.77%, and Tier 1 capital was $447.8 million, for a Tier 1 risk-based capital ratio of 18.49%.

"Liquidity. During the first quarter, we continued to reduce our use of brokered deposits and other non-core funding.

"Earnings. Earnings for the first quarter were driven by stable net interest income and controlled noninterest expense, partially offset by an increase in the provision for loan losses and a decrease in gain on sale of loans. Our net interest margin of 3.78% for the quarter was down slightly from the fourth quarter of 2010, but increased 19 basis points over the first quarter of 2010. The decrease in net interest income from the fourth quarter of 2010 was a combination of both rate and volume changes, primarily related to loans, while the decrease from the first quarter of 2010 was due mainly to lower loan volume. 

"Our efficiency ratio for the first quarter remained strong at 54.50%, helped by stable salaries and employee benefits and occupancy costs."

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

Financial Overview

Condition: Total assets were $2.8 billion and total loans were $2.3 billion at March 31, 2011, a decrease of 1% and 4%, respectively, from December 31, 2010.

At March 31, 2011 the allowance for loan losses was $63.3 million, a decrease of 3% from December 31, 2010, and represented 2.82% of noncovered portfolio loans versus 2.80% at December 31, 2010. The methodology used to determine the appropriate amount of the allowance for loan losses at a particular time includes consideration of risk factors related to Southwest and to our markets including regular assessments of national and local economic conditions and trends. Provisions for loan losses are recorded in the amount necessary to maintain the allowance at the level management deems appropriate. 

Excluding assets subject to loss sharing agreements with the FDIC ("covered assets"), nonperforming assets, consisting of nonaccrual loans, loans past due by 90 days or more and still accruing, and other real estate, were $148.9 million and 6.52% of portfolio loans and other real estate as of March 31, 2011, up $4.1 million from December 31, 2010. A breakdown of noncovered portfolio loans and noncovered nonperforming assets at March 31, 2011 by type is shown in the following table:

  Noncovered Noncovered Percentage of 
  portfolio nonperforming total noncovered
(dollars in thousands) loans assets nonperforming assets
Real estate construction  $ 416,868  $ 56,523 37.96%
Commercial real estate  1,287,123  30,988 20.81
Commercial  417,812  17,622 11.83
Residential real estate mortgages  84,809  2,672 1.80
Other consumer loans  36,493  27 0.02
Other real estate  --   41,067 27.58
Total   $ 2,243,105  $ 148,899 100.00%
       

Excluding covered loans, nonaccrual loans were $107.3 million as of March 31, 2011, an increase of $0.7 million, or less than 1%, from December 31, 2010, and an increase of $9.4 million, or 10%, from March 31, 2010. These loans are carried at their estimated collectible amounts and no longer accrue interest. Noncovered loans 90 days or more past due and still accruing were $0.5 million as of March 31, 2011. These loans are deemed to have sufficient collateral and are in the process of collection. 

Impaired loans, which include nonaccrual and restructured loans, are evaluated on an individual basis using the discounted present value of expected cash flows, the fair value of collateral, or the market value of the loan, and a specific allowance is recorded to reflect the appropriate net realizable value. Collateral dependent loans are evaluated for impairment based upon the fair value of the collateral. Charge-offs against the allowance for impaired loans are made when and to the extent amounts are deemed uncollectible. 

Performing loans that have been restructured to provide a reduction or deferral of interest or principal due to a weakening in the financial position of the borrower were $2.2 million at both March 31, 2011 and December 31, 2010.  Restructured nonperforming loans were $7.1 million at March 31, 2011, compared to $6.0 million at December 31, 2010.

Excluding covered loans, performing loans considered potential problem loans, which are not included in the past due or nonaccrual categories but for which known information about possible credit problems cause management to be uncertain as to the continued ability of the borrowers to comply with the present loan repayment terms in future periods, amounted to $204.8 million at March 31, 2011, a decrease of $28.3 million from December 31, 2010 and $71.1 million from March 31, 2010. Potential problem loans are subject to continuing management attention and are considered by management in determining the level of the allowance for loan losses. 

On February 11, 2011, Southwest entered into a seven year interest rate swap agreement with the objective of converting the variable interest rate on a $25.0 million subordinated debenture to a fixed interest rate based upon our expectation of rising interest rates over the swap term. The swap agreement requires Southwest to pay a fixed rate of interest at 6.15% and receive a variable rate of interest equal to the three-month LIBOR plus 285 basis points, or 3.16% at March 31, 2011.

First Quarter Results:

Summary: Net income available to common shareholders was $1.4 million in the first quarter of 2011, compared to $3.3 million in the fourth quarter of 2010 and $3.3 million in the first quarter of 2010. The decrease from the fourth quarter of 2010 was the result of a $1.8 million increase in the provision for loan losses, a $1.5 million decrease in net interest income, and a $0.8 million decrease in noninterest income, offset in part by a $1.2 million decrease in noninterest expense and a $1.1 million decrease in income taxes. The decrease from the first quarter of 2010 was the result of a $1.4 million decrease in net interest income, a $0.9 million decrease in noninterest income, a $0.5 million increase in the provision for loan losses, and a $0.4 million increase in noninterest expense, offset in part by a $1.3 million decrease in income taxes. 

Net Interest Income: Net interest income totaled $25.4 million for the first quarter of 2011, compared to $27.0 million for the fourth quarter of 2010, a decrease of $1.5 million, or 6%, and $26.8 million for the first quarter of 2010, a decrease of $1.4 million, or 5%.  Net interest margin was 3.78% for the first quarter of 2011, compared to 3.82% for the fourth quarter of 2010 and 3.59% for the first quarter of 2010.  Included in the first quarter of 2011 net interest margin was a net recovery of $0.1 million from the quarterly adjustment of the discount accretion on loans and the loss share receivable offset by interest reversals on nonaccrual loans. Included in the fourth quarter 2010 net interest margin was a net recovery of $0.5 million from the resolution of nonperforming loans and the quarterly adjustment of the discount accretion on loans and the loss share receivable. Included in the first quarter 2010 net interest margin was a net recovery of $0.4 million from the resolution of a nonperforming loan and the quarterly adjustment of the discount accretion on loans and the loss share receivable, offset by interest reversals on nonaccrual loans. The net effects of these adjustments on net interest margin were a 1 basis point increase, a 7 basis point increase, and a 5 basis point increase for each quarter, respectively.     

Provision for Loan Losses and Net Charge-Offs: The provision for loan losses totaled $9.1 million for the first quarter of 2011, compared to $7.3 million for the fourth quarter of 2010 and $8.5 million for the first quarter of 2010.  Net charge-offs totaled $11.0 million, or 1.90% (annualized) of average portfolio loans for the first quarter of 2011, compared to $14.5 million, or 2.35% (annualized) of average portfolio loans for the fourth quarter of 2010 and $5.8 million, or 0.90% (annualized) of average portfolio loans for the first quarter of 2010.

Noninterest Income: Noninterest income totaled $3.2 million for the first quarter of 2011, compared to $4.1 million for the fourth quarter of 2010 and $4.2 million for the first quarter of 2010.  The decrease in noninterest income from the fourth quarter of 2010 was primarily the result of a $0.5 million decrease in gain on sale of loans, mainly from declined mortgage loan sales, and a $0.3 million decrease in service charges and fees. The decrease from the first quarter of 2010 was primarily the result of a $0.8 million decrease in gain on sale of loans, mainly from declined student loan sales, and a $0.2 million decrease in service charges and fees. 

Noninterest Expense: Noninterest expense totaled $15.6 million for the first quarter of 2011, compared to $16.8 million for the fourth quarter of 2010 and $15.3 million for the first quarter of 2010.  The decrease from fourth quarter 2010 consisted of a $0.8 million decrease in other real estate expense and a $0.6 million decrease in other general and administrative expense, primarily from decreased legal fees related to other real estate and other loan costs. The increase from first quarter 2010 consisted of a $0.3 million increase in other real estate expense and a $0.4 million increase in the provision for unfunded loan commitments, offset in part by a $0.3 million decrease in FDIC and other insurance expense. 

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Stillwater National Bank and Trust Company ("Stillwater National") and Bank of Kansas. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At March 31, 2011 we had total assets of $2.8 billion, deposits of $2.2 billion, and shareholders' equity of $379.7 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, 2011, approximately $684.7 million, or 30%, of our noncovered loans were loans to individuals and businesses in the healthcare industry. 

We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or "spec" residential property credits. Additionally, subprime 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, 2011 approximately $1.7 billion, or 75%, of our noncovered loans were commercial real estate mortgage and construction loans, including $414.3 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.

We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At March 31, 2011 our Texas segment accounted for $954.6 million, or 42% of total portfolio loans, followed by $838.5 million, or 36%, from our Oklahoma segment, $272.7 million, or 12%, from our Kansas segment, and $226.5 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.

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

Forward-Looking Statements

This earnings release includes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include: statements of Southwest's goals, intentions, and expectations; estimates of risks and of future costs and benefits; expectations regarding future financial performance of Southwest and its operating segments; assessments of loan quality, probable loan losses, and the amount and timing of loan payoffs; liquidity, contractual obligations, off-balance sheet risk, and interest rate risk; estimates of value of acquired assets, deposits, and other liabilities; and statements of Southwest's ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties, because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws and regulations and accounting principles; and a variety of other matters. Because of these uncertainties, the actual future results may be materially different from the results indicated by these forward-looking statements. In addition, Southwest's past growth and performance do not necessarily indicate our future results.

Southwest is required under generally accepted accounting principles to evaluate subsequent events and their impact, if any, on its financial statements as of March 31, 2011 through the date its financial statements are filed with the Securities and Exchange Commission. The March 31, 2011 financial statements included in this release will be adjusted if necessary to properly reflect the impact of subsequent events on estimates used to prepare those statements. 

Financial Tables
Unaudited Financial Highlights Table 1
Unaudited Consolidated Statements of Financial Condition Table 2
Unaudited Consolidated Statements of Operations Table 3
Unaudited Average Balances, Yields, and Rates-Quarterly Table 4
Unaudited Quarterly Summary Financial Data  Table 5
Unaudited Quarterly Supplemental Analytical Data  Table 6
   
 SOUTHWEST BANCORP, INC.           Table 1 
 UNAUDITED FINANCIAL HIGHLIGHTS           
 (Dollars in thousands, except per share)           
   First Quarter   Fourth Quarter 
 QUARTERLY HIGHLIGHTS       %     % 
  2011 2010  Change  2010  Change 
 Operations           
 Net interest income  $ 25,421 $ 26,801  (5)% $ 26,970  (6)%
 Provision for loan losses   9,050  8,531  6  7,265  25
 Noninterest income   3,249  4,178  (22)  4,089  (21)
 Noninterest expense   15,625  15,258  2  16,811  (7)
 Income before taxes   3,995  7,190  (44)  6,983  (43)
 Taxes on income   1,534  2,818  (46)  2,675  (43)
 Net income   2,461  4,372  (44)  4,308  (43)
 Net income available to common           
 shareholders   1,408  3,329  (58)  3,257  (57)
 Diluted earnings per share   0.07  0.23  (70)  0.17  (59)
 Balance Sheet           
 Total assets   2,778,833  3,074,923  (10)  2,820,541  (1)
 Loans held for sale   37,348  25,586  46  35,194  6
 Noncovered portfolio loans   2,243,105  2,516,397  (11)  2,331,293  (4)
 Covered portfolio loans   49,117  76,909  (36)  53,628  (8)
 Total deposits   2,218,571  2,554,165  (13)  2,252,728  (2)
 Total shareholders' equity   379,668  315,341  20  377,812  --
 Book value per common share   16.04  16.79  (4)  15.97  --
 Key Ratios           
 Net interest margin  3.78% 3.59%   3.82%  
 Efficiency ratio   54.50  49.25    54.13  
 Total capital to risk-weighted assets   19.77  15.28    19.06  
 Nonperforming loans to portfolio loans - noncovered   4.81  3.89    4.59  
 Shareholders' equity to total assets   13.66  10.26    13.40  
 Tangible common equity to tangible assets*   11.00  7.87    10.78  
 Return on average assets (annualized)   0.35  0.57    0.59  
 Return on average common equity (annualized)   1.81  5.42    4.11  
 Return on average tangible common equity (annualized)**   1.85  5.58    4.21  
 
 Balance sheet amounts and ratios are as of period end unless otherwise noted.         
 * This is a Non-GAAP financial measure. Please see Table 7 for a reconciliation to the most directly comparable GAAP based measure.   
 ** This is a Non-GAAP financial measure.           
           
 Please see accompanying tables for additional financial information.           
       
 SOUTHWEST BANCORP, INC.       Table 2 
 UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION     
 (Dollars in thousands, except per share)       
       
   March 31,   December 31,   March 31, 
  2011 2010 2010
 Assets       
 Cash and due from banks  $ 28,034 $ 26,478  $ 22,196
 Interest-bearing deposits   89,529  41,018  124,129
 Cash and cash equivalents   117,563  67,496 146,325
 Securities held to maturity (fair values of $12,903, $14,029, $6,750, respectively)   13,042  14,304 6,670
 Securities available for sale (amortized cost of $243,556, $246,649, $230,522, respectively)   245,394  248,221 235,023
 Loans held for sale   37,348  35,194 25,586
 Noncovered loans receivable   2,243,105  2,331,293 2,516,397
 Less: Allowance for loan losses   (63,310)  (65,229) (65,168)
 Net noncovered loans receivable   2,179,795  2,266,064 2,451,229
 Covered loans receivable (includes loss share: $12,617, $14,370, and $21,060, respectively)   49,117  53,628  76,909
 Net loans receivable   2,228,912  2,319,692 2,528,138
 Accrued interest receivable   8,789  8,590 10,271
 Premises and equipment, net   23,555  23,772 25,996
 Noncovered other real estate   41,067  37,722 18,809
 Covered other real estate   4,016  4,187  4,489
 Goodwill   6,811  6,811 6,811
 Other intangible assets, net   5,141  5,371 5,575
 Other assets   47,195  49,181 61,230
 Total assets  $ 2,778,833 $ 2,820,541  $ 3,074,923
       
 Liabilities       
 Deposits:       
 Noninterest-bearing demand  $ 369,013 $ 377,182  $ 317,896
 Interest-bearing demand   112,731  92,584 119,757
 Money market accounts   486,770  495,253 506,659
 Savings accounts   28,440  26,665 25,871
 Time deposits of $100,000 or more   669,817  694,565 944,871
 Other time deposits   551,800  566,479 639,111
 Total deposits   2,218,571  2,252,728 2,554,165
 Accrued interest payable   1,805  1,577 2,993
 Income tax payable   3,510  2,878  6,761
 Other liabilities   7,471  8,981 10,080
 Other borrowings   85,332  94,602 103,620
 Subordinated debentures   82,476  81,963 81,963
 Total liabilities   2,399,165  2,442,729 2,759,582
       
 Shareholders' equity       
 Serial preferred stock; 2,000,000 shares authorized;       
 70,000 shares issued and outstanding   67,902  67,724  67,205
 Common stock -- $1 par value; 40,000,000 shares authorized;       
 19,438,290, 19,421,900, 14,779,711 shares issued and outstanding, respectively   19,438  19,422 14,780
 Additional paid-in capital   98,994  98,894 49,229
 Retained earnings   192,200  190,793 181,344
 Accumulated other comprehensive income   1,134  979 2,783
 Total shareholders' equity   379,668  377,812 315,341
 Total liabilities and shareholders' equity  $ 2,778,833 $ 2,820,541  $ 3,074,923
       
 SOUTHWEST BANCORP, INC.     Table 3 
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS 
 (Dollars in thousands, except per share)     
     
   For the three months 
   ended March 31, 
  2011 2010
 Interest income     
 Loans  $ 30,539 $ 34,372
 Investment securities   1,746  2,170
 Other interest-earning assets   140  217
 Total interest income   32,425  36,759
     
 Interest expense     
 Interest-bearing deposits   5,133  8,174
 Other borrowings   497  517
 Subordinated debentures   1,374  1,267
 Total interest expense   7,004  9,958
     
 Net interest income   25,421  26,801
     
 Provision for loan losses   9,050  8,531
     
 Net interest income after provision for loan losses   16,371  18,270
     
 Noninterest income     
 Service charges and fees   2,878  3,096
 Gain on sales of loans   194  985
 Gain on investment securities   --  7
 Other noninterest income   177  90
Total noninterest income  3,249  4,178
     
 Noninterest expense     
 Salaries and employee benefits   7,515  7,580
 Occupancy   2,804  2,783
 FDIC and other insurance   1,243  1,587
 Other real estate, net   436  106
 General and administrative   3,627  3,202
 Total noninterest expense   15,625  15,258
 Income before taxes   3,995  7,190
 Taxes on income   1,534  2,818
 Net income  $ 2,461 $ 4,372
 Net income available to common shareholders  $ 1,408 $ 3,329
     
 Basic earnings per common share  $ 0.07 $ 0.23
 Diluted earnings per common share   0.07  0.23
 Common dividends declared per share   --  --
     
 SOUTHWEST BANCORP, INC.            Table 4
 UNAUDITED AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY     
 (Dollars in thousands)            
             
   For the three months ended March 31,
  2011 2010
  Average   Average Average   Average
  Balance Interest Yield/Rate Balance Interest Yield/Rate
Assets            
Noncovered loans  $ 2,326,882 $ 29,655 5.17% $ 2,587,603 $ 32,981 5.17%
Covered loans  51,494  884  6.96  82,043  1,391  6.88
Investment securities  256,384  1,746  2.76  241,276  2,170  3.65
Other interest-earning assets  92,692  140  0.61  115,374  217  0.76
Total interest-earning assets  2,727,452  32,425  4.82  3,026,296  36,759  4.93
Other assets  91,807      79,238    
Total assets $ 2,819,259     $ 3,105,534    
             
Liabilities and Shareholders' Equity            
Interest-bearing demand deposits $ 112,441 $ 124 0.45% $ 107,510 $ 132 0.50%
Money market accounts  491,306  677  0.56  504,486  1,013  0.81
Savings accounts  27,741  16  0.23  25,628  16  0.25
Time deposits  1,248,152  4,316  1.40  1,649,888  7,013  1.72
Total interest-bearing deposits  1,879,640  5,133  1.11  2,287,512  8,174  1.45
Other borrowings  90,198  497  2.23  97,297  517  2.15
Subordinated debentures  81,969  1,374  6.70  81,963  1,267  6.18
Total interest-bearing liabilities  2,051,807  7,004  1.38  2,466,772  9,958  1.64
             
Noninterest-bearing demand deposits  365,161      303,684    
Other liabilities  19,789      19,032    
Shareholders' equity  382,502      316,046    
Total liabilities and shareholders' equity $ 2,819,259     $ 3,105,534    
             
Net interest income and spread   $ 25,421 3.44%   $ 26,801 3.29%
Net interest margin (1)     3.78%     3.59%
Average interest-earning assets            
to average interest-bearing liabilities 132.93%     122.68%    
             
             
 (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)           
   
  2011 2010
   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
 OPERATIONS           
 Interest income:           
 Loans  $ 30,539 $ 32,831 $ 32,824 $ 33,891 $ 34,372
 Investment securities   1,746  1,724  2,079  2,175  2,170
 Other interest-earning assets   140  131  180  213  217
 Total interest income   32,425  34,686  35,083  36,279  36,759
 Interest expense:           
 Interest bearing demand deposits   124  85  111  140  132
 Money market accounts   677  885  976  1,037  1,013
 Savings accounts   16  17  15  16  16
 Time deposits of $100,000 or more   2,349  2,703  3,128  3,517  4,024
 Other time deposits   1,967  2,230  2,572  2,661  2,989
 Total interest-bearing deposits   5,133  5,920  6,802  7,371  8,174
 Other borrowings   497  514  524  524  517
 Subordinated debentures   1,374  1,282  1,305  1,276  1,267
 Total interest expense   7,004  7,716  8,631  9,171  9,958
 Net interest income   25,421  26,970  26,452  27,108  26,801
 Provision for loan losses   9,050  7,265  11,988  7,776  8,531
 Noninterest income:           
 Service charges and fees   2,878  3,144  2,994  3,170  3,096
 Gain on sales of loans   194  682  653  416  985
 Gain on investment securities   --  15  2,605  34  7
 Other noninterest income   177  248  83  342  90
 Total noninterest income   3,249  4,089  6,335  3,962  4,178
 Noninterest expense:           
 Salaries and employee benefits   7,515  7,516  7,183  7,637  7,580
 Occupancy   2,804  2,717  2,835  2,836  2,783
 FDIC and other insurance   1,243  1,333  1,347  1,521  1,587
 Other real estate, net   436  1,255  228  629  106
 Provision for unfunded loan commitments   (55)  (332)  (294)  (512)  (465)
 Other general and administrative   3,682  4,322  4,119  4,035  3,667
 Total noninterest expense   15,625  16,811  15,418  16,146  15,258
 Income before taxes   3,995  6,983  5,381  7,148  7,190
 Taxes on income   1,534  2,675  1,508  2,737  2,818
 Net income  $ 2,461 $ 4,308 $ 3,873 $ 4,411 $ 4,372
 Net income available to common shareholders  $ 1,408 $ 3,257 $ 2,825 $ 3,366 $ 3,329
 PER SHARE DATA           
 Basic earnings per common share  $ 0.07 $ 0.17 $ 0.15 $ 0.19 $ 0.23
 Diluted earnings per common share   0.07  0.17  0.15  0.19  0.23
 Book value per common share   16.04  15.97  15.93  15.88  16.79
 Tangible book value per share*   15.69  15.62  15.58  15.53  16.33
 COMMON STOCK           
 Shares issued and outstanding   19,438,290  19,421,900  19,395,675  19,388,797  14,779,711
 OTHER FINANCIAL DATA           
 Investment securities  $ 258,436 $ 262,525 $ 240,844 $ 247,108 $ 241,693
 Loans held for sale   37,348  35,194  34,868  25,615  25,586
 Noncovered portfolio loans   2,243,105  2,331,293  2,412,796  2,475,348  2,516,397
 Total noncovered loans   2,280,453  2,366,487  2,447,664  2,500,963  2,541,983
 Covered portfolio loans   49,117  53,628  60,558  68,006  76,909
 Total assets   2,778,833  2,820,541  2,905,275  3,010,835  3,074,923
 Total deposits   2,218,571  2,252,728  2,345,648  2,444,939  2,554,165
 Other borrowings   85,332  94,602  82,506  93,036  103,620
 Subordinated debentures   82,476  81,963  81,963  81,963  81,963
 Total shareholders' equity   379,668  377,812  376,576  375,319  315,341
 Mortgage servicing portfolio   281,271  278,146  261,266  249,632  241,224
 INTANGIBLE ASSET DATA           
 Goodwill  $ 6,811 $ 6,811 $ 6,811 $ 6,811 $ 6,811
 Core deposit intangible   3,420  3,557  3,693  3,830  3,967
 Mortgage servicing rights   1,718  1,810  1,661  1,589  1,603
 Nonmortgage servicing rights   3  4  4  5  5
 Total intangible assets  $ 11,952 $ 12,182 $ 12,169 $ 12,235 $ 12,386
 Intangible amortization expense  $ 361 $ 402 $ 392 $ 350 $ 359
 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)           
   
  2011 2010
   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
 LOAN COMPOSITION           
 Noncovered           
 Real estate mortgage:           
 Commercial  $ 1,302,254 $ 1,310,464 $ 1,271,278 $ 1,251,709 $ 1,230,009
 One-to-four family residential   87,324  89,800  109,980  106,814  111,185
 Real estate construction           
 Commercial   403,954  441,265  527,773  589,590  630,472
 One-to-four family residential   26,758  27,429  30,527  35,129  34,996
 Commercial   417,970  452,626  463,132  471,004  487,074
 Installment and consumer:           
 Guaranteed student loans   5,700  5,843  5,960  7,389  10,199
 Other   36,493  39,060  39,014  39,328  38,048
 Total noncovered loans, including held for sale   2,280,453  2,366,487  2,447,664  2,500,963  2,541,983
 Less allowance for loan losses   (63,310)  (65,229)  (72,418)  (67,055)  (65,168)
 Total noncovered loans, net  $ 2,217,143 $ 2,301,258 $ 2,375,246 $ 2,433,908 $ 2,476,815
 Covered           
 Real estate mortgage:           
 Commercial  $ 28,929 $ 30,997 $ 33,428 $ 36,107 $ 37,487
 One-to-four family residential   8,192  9,122  10,071  10,277  10,843
 Real estate construction           
 Commercial   6,144  6,840  7,464  8,190  11,173
 One-to-four family residential   281  439  1,823  3,853  5,273
 Commercial   5,021  5,554  6,816  8,487  10,807
 Installment and consumer:   550  676  956  1,092  1,326
 Total covered loans  $ 49,117 $ 53,628 $ 60,558 $ 68,006 $ 76,909
 DEPOSIT COMPOSITION           
 Non-interest bearing demand  $ 369,013 $ 377,182 $ 329,655 $ 326,721 $ 317,896
 Interest-bearing demand   112,731  92,584  86,153  102,218  119,757
 Money market accounts   486,770  495,253  518,422  510,549  506,659
 Savings accounts   28,440  26,665  25,556  25,321  25,871
 Time deposits of $100,000 or more   669,817  694,565  795,303  861,110  944,871
 Other time deposits   551,800  566,479  590,559  619,020  639,111
 Total deposits**  $ 2,218,571 $ 2,252,728 $ 2,345,648 $ 2,444,939 $ 2,554,165
 LOANS BY SEGMENT           
 Oklahoma banking  $ 838,464 $ 871,393 $ 890,598 $ 914,004 $ 926,870
 Texas banking   954,584  982,845  1,024,863  1,041,228  1,063,511
 Kansas banking   272,685  289,642  309,240  329,157  342,596
 Other states banking   226,489  241,041  248,653  258,965  260,329
 Subtotal   2,292,222  2,384,921  2,473,354  2,543,354  2,593,306
 Secondary market   37,348  35,194  34,868  25,615  25,586
 Total loans  $ 2,329,570 $ 2,420,115 $ 2,508,222 $ 2,568,969 $ 2,618,892
 NET INCOME BY SEGMENT           
 Oklahoma banking  $ 3,435 $ 4,205 $ 3,399 $ 4,387 $ 2,857
 Texas banking   1,079  4,001  (1,801)  757  1,685
 Kansas banking   131  293  (306)  940  (322)
 Other states banking   (924)  (3,674)  494  (477)  1,750
 Subtotal   3,721  4,825  1,786  5,607  5,970
 Secondary market   (13)  444  173  83  310
 Other operations   (1,247)  (961)  1,914  (1,279)  (1,908)
 Net income  $ 2,461 $ 4,308 $ 3,873 $ 4,411 $ 4,372
 OFFICES AND EMPLOYEES           
 FTE Employees   424  432  440  447  455
 Branches   23  23  23  23  24
 Loan production offices   2  2  2  2  2
 Assets per employee  $ 6,554 $ 6,529 $ 6,603 $ 6,736 $ 6,758
 ____________________           
 **Calculation of Non-brokered Deposits and Core Funding (Non-GAAP Financial Measures)     
 Total deposits  $ 2,218,571 $ 2,252,728 $ 2,345,648 $ 2,444,939 $ 2,554,165
 Less:           
 Brokered time deposits   122,124  145,240  226,238  279,027  359,571
 Other brokered deposits   112,033  117,532  129,096  126,643  124,969
 Non-brokered deposits  $ 1,984,414 $ 1,989,956 $ 1,990,314 $ 2,039,269 $ 2,069,625
 Plus:           
 Sweep repurchase agreements   27,214  26,492  22,211  22,700  33,192
 Core funding  $ 2,011,628 $ 2,016,448 $ 2,012,525 $ 2,061,969 $ 2,102,817
           
 Balance sheet amounts are as of period end unless otherwise noted.   
         
 SOUTHWEST BANCORP, INC.         Table 6 
 UNAUDITED QUARTERLY SUPPLEMENTAL ANALYTICAL DATA       
 (Dollars in thousands, except per share)           
   
  2011 2010
   Mar. 31   Dec. 31   Sep. 30   Jun. 30   Mar. 31 
 PERFORMANCE RATIOS           
 Return on average assets (annualized)  0.35% 0.59% 0.52% 0.58% 0.57%
 Return on average common equity (annualized)   1.81  4.11  3.57  4.64  5.42
 Return on average tangible common equity           
 (annualized)*   1.85  4.21  3.65  4.75  5.58
 Net interest margin (annualized)   3.78  3.82  3.63  3.65  3.59
 Total dividends declared to net income   35.56  20.31  22.59  19.84  20.02
 Effective tax rate   38.40  38.31  28.02  38.29  39.19
 Efficiency ratio   54.50  54.13  47.02  51.97  49.25
 NONPERFORMING ASSETS           
 Noncovered           
 Nonaccrual loans  $ 107,303 $ 106,566 $ 135,209 $ 111,871 $ 97,858
 90 days past due and accruing   529  517  452  333  4
 Total nonperforming loans   107,832  107,083  135,661  112,204  97,862
 Other real estate   41,067  37,722  35,723  27,634  18,809
 Total nonperforming assets  $ 148,899 $ 144,805 $ 171,384 $ 139,838 $ 116,671
 Performing restructured  $ 2,166 $ 2,177 $ 5,334 $ 5,525 $ 5,650
 Potential problem loans  $ 204,834 $ 233,140 $ 236,844 $ 242,217 $ 275,912
 Covered           
 Nonaccrual loans  $ 9,809 $ 10,806 $ 7,906 $ 14,504 $ 16,192
 90 days past due and accruing   --  --  1,871  130  356
 Total nonperforming loans   9,809  10,806  9,777  14,634  16,548
 Other real estate   4,016  4,187  4,448  4,352  4,489
 Total nonperforming assets  $ 13,825 $ 14,993 $ 14,225 $ 18,986 $ 21,037
 Potential problem loans  $ 3,444 $ 3,495 $ 6,413 $ 6,184 $ 6,620
 ALLOWANCE ACTIVITY           
 Balance, beginning of period  $ 65,229 $ 72,418 $ 67,055 $ 65,168 $ 62,413
 Charge offs   11,367  14,720  7,006  6,168  6,545
 Recoveries   398  266  381  279  769
 Net charge offs   10,969  14,454  6,625  5,889  5,776
 Provision for loan losses   9,050  7,265  11,988  7,776  8,531
 Balance, end of period  $ 63,310 $ 65,229 $ 72,418 $ 67,055 $ 65,168
 ASSET QUALITY RATIOS           
 Net loan charge-offs to average portfolio           
 loans (annualized)  1.90% 2.35% 1.05% 0.92% 0.90%
 Noncovered           
 Nonperforming assets to portfolio loans and           
 other real estate  6.52% 6.11% 7.00% 5.59% 4.60%
 Nonperforming loans to portfolio loans   4.81  4.59  5.62  4.53  3.89
 Allowance for loan losses to portfolio loans   2.82  2.80  3.00  2.71  2.59
 Allowance for loan losses to           
 nonperforming loans   58.71  60.91  53.38  59.76  66.59
 Covered           
 Nonperforming assets to portfolio loans and           
 other real estate  26.02% 25.93% 21.88% 26.24% 25.84%
 Nonperforming loans to portfolio loans   19.97  20.15  16.14  21.52  21.52
 CAPITAL RATIOS           
 Average total shareholders' equity to           
 average assets  13.57% 13.24% 12.85% 11.78% 10.18%
 Leverage ratio   15.95  15.55  14.96  14.48  12.32
 Tier 1 capital to risk-weighted assets   18.49  17.78  17.17  16.50  14.00
 Total capital to risk-weighted assets   19.77  19.06  18.45  17.78  15.28
 Tangible common equity to tangible assets***   11.00  10.78  10.43  10.02  7.87
 REGULATORY CAPITAL DATA           
 Tier I capital  $ 447,803 $ 445,966 $ 442,188 $ 438,973 $ 381,280
 Total capital   478,736  477,930  475,040  472,971  415,955
 Total risk adjusted assets   2,421,580  2,507,867  2,574,746  2,659,886  2,722,628
 Average total assets   2,807,518  2,867,114  2,955,779  3,032,328  3,094,756
 ____________________           
 *This is a Non-GAAP based financial measure.           
 ***Calculation of Tangible Capital to Tangible Assets (Non-GAAP Financial Measure)       
 Total shareholders' equity  $ 379,668 $ 377,812 $ 376,576 $ 375,319 $ 315,341
 Less:           
 Goodwill   6,811  6,811  6,811  6,811  6,811
 Preferred stock   67,902  67,724  67,548  67,375  67,205
 Tangible common equity  $ 304,955 $ 303,277 $ 302,217 $ 301,133 $ 241,325
 Total assets  $ 2,778,833 $ 2,820,541 $ 2,905,275 $ 3,010,835 $ 3,074,923
 Less goodwill   6,811  6,811  6,811  6,811  6,811
 Tangible assets  $ 2,772,022 $ 2,813,730 $ 2,898,464 $ 3,004,024 $ 3,068,112
 Tangible common equity to tangible assets  11.00% 10.78% 10.43% 10.02% 7.87%
           
 Balance sheet amounts and ratios are as of period end unless otherwise noted.       
CONTACT: Rick Green
         President & CEO
         Laura Robertson
         EVP & CFO
         (405) 372-2230

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