Southwest Bancorp Reports First Quarter 2008 Earnings per Share of $0.36

STILLWATER, Okla., April 17 /PRNewswire-FirstCall/ -- Southwest Bancorp,
Inc. (Nasdaq: OKSB), ("Southwest"), today reported net income of $5.2 million,
or $0.36 per diluted share for the first quarter 2008, up $0.05 or 16% from
the first and fourth quarter of 2007. At March 31, 2008, total assets were
$2.7 billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011127/SOUTHWESTLOGO)
Rick Green, President and Chief Executive Officer, stated, "Our strategic
vision includes growth from existing and additional offices in Oklahoma and in
carefully selected markets in Texas and other states with emphasis on
healthcare and health professionals, businesses and their managers and owners,
commercial and commercial real estate borrowers, careful expansion of our
community banking operations, and increases in stable funding sources at
reasonable cost.
"Our strategy produced significant loan growth in the first quarter. Our
portfolio loans grew $142.0 million, up 7%, from year-end 2007, led by
increases in healthcare and other commercial real estate lending in Oklahoma
and Texas. A portion of the net growth was the result of a first quarter
reduction in the customary levels of early payoffs of commercial real estate
and commercial loans, which we believe reflected a decrease in competition for
refinancings from conduits and other non-depository lenders. We anticipate
seeing movement toward more traditional unscheduled payoff levels, and
currently expect somewhat slower net loan growth in the remainder of 2008.
"The positive earnings effect of our loan growth continued to be offset by
the significant margin squeeze that began last year. Quarterly net interest
margin of 3.45% was down 89 basis points from first quarter 2007. As a
result, net interest income declined $907,000, or 4%. We also increased our
provision for loan losses by $375,000, or 20%, in the first quarter of 2008
compared to the same quarter in 2007. Other significant factors in the first
quarter comparisons include the VISA USA public offering completed in the
quarter, which added $1.8 million in income before taxes, a $1.1 million
increase in salary and employee benefits expenses, and a $2.6 million decrease
in general and administrative expenses, largely due to last year's ATM-related
write-off.
"The validity of our strategic decision not to rely on any significant
amounts of residential mortgages and not to make subprime loans was reinforced
by market events. Subprime lending has never been a part of our strategy and
one to four family mortgages account for less than 5% of our portfolio."
Please see the following discussion and financial tables and the
disclosures under the heading "Forward-Looking Statements" on page 3.
Financial Overview
Condition. Total assets were $2.7 billion at March 31, 2008, an increase
of 4% from $2.6 billion at December 31, 2007. At March 31, 2008 total loans
were $2.4 billion, versus $2.2 billion at December 31, 2007. Non-performing
assets to total assets were 1.21% at March 31, 2008 compared to 1.43% at
March 31, 2007 and 1.26% at December 31, 2007. Of total non-performing assets,
38.8% are commercial real estate loans, 37.4% are commercial loans, 10.3% is
other real estate owned, 8.4% are real estate construction loans, 4.9% are
residential real estate mortgages, and other consumer loans are less than 1%.
The allowance for loan losses as a percentage of portfolio loans was 1.31% at
March 31, 2008, versus 1.66% at March 31, 2007 and 1.38% at December 31, 2007.
Total deposits were $2.1 billion at March 31, 2008, up $36.3 million from
December 31, 2007. On March 31, 2008, Southwest exceeded all applicable
regulatory capital requirements and each of its banking subsidiaries met the
criteria for regulatory classification as "well-capitalized." Designation as a
well-capitalized institution under regulations does not constitute a
recommendation or endorsement by Federal bank or thrift regulators.
First Quarter Results. Net interest income totaled $21.8 million for the
first quarter of 2008, compared to $22.7 million for the first quarter of
2007. Net interest margin was 3.45% for the first quarter of 2008 compared to
3.89% for the fourth quarter of 2007 and 4.34% for the first quarter of 2007.
The decrease in net interest income and net interest margin is the result of
Southwest's interest rate sensitivity position and the margin squeeze produced
by governmental actions designed to lower market interest rates in the wake of
the subprime and liquidity crisis. Yields on earning assets decreased by
143 basis points from the first quarter 2007, while rates paid on interest
bearing liabilities decreased by only 73 basis points.
The provision for loan losses totaled $2.2 million for the first quarter
of 2008, compared to $1.9 million for the first quarter of 2007. Net charge
offs totaled $1.9 million, or 0.33% (annualized) of portfolio loans at
March 31, 2008, compared to $1.4 million, or 0.35% (annualized) of portfolio
loans at March 31, 2007.
Noninterest income totaled $4.7 million for the first quarter of 2008,
compared to $3.3 million for the same quarter of 2007. The increase in
noninterest income from 2007 was mainly the result of a $1.7 million increase
in gain on investment securities, due mainly from shares redeemed in
connection with the VISA public offering, and a $222,000 increase in service
charges and fees, offset in part by decreases in gains from the sale of loans
of $368,000 and other noninterest income of $173,000.
Noninterest expense decreased $1.0 million from the first quarter 2007 to
the first quarter of 2008 to $15.8 million. The decrease consists of a
$1.1 million increase in salaries and employee benefits, a $330,000 increase
in FDIC and other insurance, a $79,000 increase in other real estate expense,
and a $55,000 increase in occupancy expense, offset by a $2.6 million decrease
in general and administrative expenses, which reflects last year's
$2.5 million ATM-related write-off and includes the provision for unfunded
loan commitments.
The efficiency ratio for the first quarter of 2008 improved to 59.69%,
from 64.60% for the first quarter of 2007.
Certain Legal Matters. As previously disclosed, in December 2006, an
armored transportation company failed to deliver to Stillwater National Bank
and Trust ("Stillwater National") cash due to it from certain ATMs owned by
one of its subsidiaries, Cash Source, Inc. ("CSI"). In the first quarter of
2007, Southwest recorded a write-off of the $2.5 million receivable. The
financial statements also reflect related legal expenses incurred by Southwest
of $61,000 during the first quarter of 2008 and approximately $785,000 during
the year 2007 of which $300,000 was incurred in the first quarter 2007.
Southwest filed its proof of loss with the insurer on August 6, 2007 and has
no further information with which to update its estimate of ultimate recovery.
Stillwater National and other VISA USA member banks are obligated to share
in costs resulting from litigation against VISA USA, including the costs of
the November 9, 2007, settlement of an antitrust lawsuit brought by American
Express and potential costs of certain other pending litigation. In the fourth
quarter of 2007, Southwest recorded approximately $713,000 as its estimated
share of the settlement and other pending litigation expenses relating to
these obligations. In March 2008, VISA completed an initial public offering.
This transaction allowed VISA to place part of the cash proceeds into an
escrow which will be utilized to pay litigation and settlement expenses.
Southwest's portion of this escrow is approximately $566,000 which is
reflected in the first quarter 2008 financial statements as a reduction to
general and administrative expense and related payable established in the
fourth quarter 2007. These amounts are an estimate and further adjustments
may be required.
Southwest Bancorp and Subsidiaries
Southwest Bancorp is the financial holding company for Stillwater
National, Bank of Kansas ("SNB Kansas"), SNB Bank of Wichita ("SNB Wichita"),
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, 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 in Texas,
Oklahoma, and Kansas and a community banking model focused on more traditional
banking operations in those states. Southwest's strategic growth goals
include growth from existing and additional offices in carefully selected
markets in Texas and other states 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.
Southwest's common stock is traded on the NASDAQ Global Select Market
under the symbol OKSB.
Forward-Looking Statements
This Press Release includes forward-looking statements, such as:
statements of Southwest's goals, intentions, and expectations; estimates of
risks and of future costs and benefits; assessments of the amount and timing
of loan growth, performing and problem loan payoffs and loan losses;
off-balance sheet risk and market 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: future
interest rates, market behavior, the effects on general economic conditions in
our market of recent subprime and other consumer lending problems, and other
economic conditions; future laws and regulations; 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
Financial Highlights Table 1
Consolidated Statements of Financial Condition Table 2
Consolidated Statements of Operations Table 3
Average Balances, Yields, and Rates-Quarterly Table 4
Summary Financial Data by Quarter-2008 and 2007 Table 5
Supplemental Analytical Data by Quarter-2008 and 2007 Table 6

SOUTHWEST BANCORP, INC. Table 1
UNAUDITED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share)
First Quarter Fourth Quarter
QUARTERLY HIGHLIGHTS % %
2008 2007 Change 2007 Change
Operations
Net interest income $21,807 $22,714 (4)% $23,507 (7)%
Provision for loan
losses 2,236 1,861 20 2,464 (9)
Noninterest income 4,714 3,340 41 4,100 15
Noninterest expense 15,830 16,831 (6) 17,673 (10)
Income before taxes 8,455 7,362 15 7,470 13
Taxes on income 3,247 2,862 13 2,949 10
Net income 5,208 4,500 16 4,521 15
Diluted earnings per
share 0.36 0.31 16 0.31 16
Balance Sheet
Total assets 2,671,842 2,194,179 22 2,564,537 4
Loans held for sale 66,364 108,025 (39) 66,275 0
Portfolio loans 2,287,606 1,667,195 37 2,145,557 7
Total deposits 2,094,927 1,803,181 16 2,058,818 2
Total shareholders'
equity 225,417 201,777 12 217,609 4
Book value per share 15.52 14.14 10 15.16 2
Key Ratios
Net interest margin 3.45% 4.34% 3.89%
Efficiency ratio
(GAAP-based) 59.69 64.60 64.02
Nonperforming loans to
total loans 1.23 1.66 1.34
Shareholders' equity to
total assets 8.44 9.20 8.49
Return on average assets 0.80 0.83 0.72
Return on average equity 9.42 9.04 8.24

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

March 31, December 31, March 31,
2008 2007 2007
Assets
Cash and due from banks $37,569 $45,678 $29,542
Federal funds sold - - 69,700
Cash and cash equivalents 37,569 45,678 99,242
Investment securities:
Held to maturity. Fair value:
$8,411 $5,838 $4,286 8,339 5,838 4,332
Available for sale. Amortized
cost: $212,937 $236,707
$258,678 216,272 237,358 257,329
Federal Reserve and FHLB Stock,
at cost 13,216 13,116 12,445
Loans held for sale 66,364 66,275 108,025

Loans receivable 2,287,606 2,145,557 1,667,195
Less: Allowance for loan losses (29,950) (29,584) (27,728)
Net loans receivable 2,257,656 2,115,973 1,639,467
Accrued interest receivable 15,631 23,117 21,774
Premises and equipment, net 24,006 24,323 21,945
Other real estate owned 3,328 2,679 1,869
Goodwill 7,071 7,064 1,213
Other intangible assets, net 4,205 4,580 2,981
Other assets 18,185 18,297 23,557
Total assets $2,671,842 $2,564,298 $2,194,179

Liabilities and shareholders' equity
Deposits:
Noninterest-bearing demand $248,315 $257,067 $251,777
Interest-bearing demand 71,450 63,323 63,741
Money market accounts 553,850 541,950 394,668
Savings accounts 13,808 13,032 11,196
Time deposits of $100,000 or more 690,421 690,985 646,668
Other time deposits 517,083 492,222 435,131
Total deposits 2,094,927 2,058,579 1,803,181
Accrued interest payable 8,520 11,441 11,764
Income tax payable 4,647 1,766 -
Other liabilities 9,425 10,154 7,852
Other borrowings 282,513 218,356 123,212
Subordinated debentures 46,393 46,393 46,393
Total liabilities 2,446,425 2,346,689 1,992,402

Shareholders' equity
Common stock - $1 par value;
20,000,000 shares authorized;
14,658,042 shares issued 14,658 14,658 14,658
Paid in capital 45,784 46,478 46,314
Retained earnings 165,318 161,482 148,574
Accumulated other comprehensive
gain (loss) 2,064 408 (826)
Treasury stock, at cost, 133,605
300,833 385,632 shares (2,407) (5,417) (6,943)
Total shareholders' equity 225,417 217,609 201,777
Total liabilities and
shareholders' equity $2,671,842 $2,564,298 $2,194,179

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

For the three months
ended March 31,
2008 2007
Interest income
Loans $40,610 $40,286
Investment securities 2,336 2,679
Other interest-earning assets 28 65
Total interest income 42,974 43,030

Interest expense
Interest-bearing deposits 18,254 17,223
Other borrowings 2,029 2,131
Subordinated debentures 884 962
Total interest expense 21,167 20,316

Net interest income 21,807 22,714

Provision for loan losses 2,236 1,861

Net interest income after provision for
loan losses 19,571 20,853

Noninterest income
Service charges and fees 2,457 2,235
Gain on sales of loans 840 1,208
Gain (loss) on investment securities 1,245 (448)
Other noninterest income 172 345
Total noninterest income 4,714 3,340

Noninterest expense
Salaries and employee benefits 9,222 8,125
Occupancy 2,458 2,403
FDIC and other insurance 453 123
Other real estate, net 10 (69)
General and administrative 3,687 6,249
Total other expenses 15,830 16,831
Income before taxes 8,455 7,362
Taxes on income 3,247 2,862
Net income $5,208 $4,500

Basic earnings per common share $0.36 $0.32
Diluted earnings per common share 0.36 0.31
Cash dividends declared per share 0.0950 0.0925

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

For the three months ended March 31, 2008
Average Average
Balance Interest Yield/Rate
Assets
Loans $2,304,966 $40,610 7.09%
Investment securities 236,575 2,336 3.97
Other interest-earning assets 2,763 28 4.08
Total interest-earning assets 2,544,304 42,974 6.79
Other assets 73,166
Total assets $2,617,470

Liabilities and Shareholders' Equity
Interest-bearing demand deposits $72,734 $141 0.78%
Money market accounts 546,034 4,528 3.34
Savings accounts 13,463 22 0.66
Time deposits 1,208,782 13,563 4.51
Total interest-bearing deposits 1,841,013 18,254 3.99
Other borrowings 238,811 2,029 3.42
Subordinated debentures 46,393 884 7.54
Total interest-bearing
liabilities 2,126,217 21,167 4.00

Noninterest-bearing demand
deposits 247,241
Other liabilities 21,756
Shareholders' equity 222,256
Total liabilities and
shareholders' equity $2,617,470

Net interest income and spread $21,807 2.79%
Net interest margin (1) 3.45%
Average interest-earning assets
to average interest-bearing
liabilities 119.66%

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

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

For the three months ended March 31, 2007
Average Average
Balance Interest Yield/Rate

Assets
Loans $1,846,844 $40,286 8.85%
Investment securities 272,139 2,679 3.99
Other interest-earning assets 5,210 65 5.06
Total interest-earning assets 2,124,193 43,030 8.22
Other assets 81,727
Total assets $2,205,920

Liabilities and Shareholders' Equity
Interest-bearing demand deposits $60,462 $81 0.54%
Money market accounts 371,496 3,962 4.33
Savings accounts 11,106 20 0.73
Time deposits 1,078,439 13,160 4.95
Total interest-bearing deposits 1,521,503 17,223 4.59
Other borrowings 175,514 2,131 4.92
Subordinated debentures 46,393 962 8.29
Total interest-bearing
liabilities 1,743,410 20,316 4.73

Noninterest-bearing demand
deposits 238,532
Other liabilities 22,080
Shareholders' equity 201,898
Total liabilities and
shareholders' equity $2,205,920

Net interest income and spread $22,714 3.49%
Net interest margin (1) 4.34%
Average interest-earning assets
to average interest-bearing
liabilities 121.84%

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

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

2008 2007
Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
OPERATIONS

Interest income:
Loans $40,610 $43,549 $42,346 $39,578 $40,286
Investment securities 2,336 2,713 2,816 2,847 2,679
Other interest-earning
assets 28 35 39 115 65
Total interest income 42,974 46,297 45,201 42,540 43,030

Interest expense:
Interest bearing
demand deposits 141 94 82 98 81
Money market accounts 4,528 5,370 5,589 4,743 3,962
Savings accounts 22 22 24 21 20
Time deposits of
$100,000 or more 7,865 7,873 7,445 7,781 8,132
Other time deposits 5,698 5,840 5,684 5,250 5,028
Total interest-bearing
deposits 18,254 19,199 18,824 17,893 17,223
Other borrowings 2,029 2,620 1,715 1,089 2,131
Subordinated debentures 884 971 986 975 962
Total interest
expense 21,167 22,790 21,525 19,957 20,316
Net interest income 21,807 23,507 23,676 22,583 22,714
Provision for loan
losses 2,236 2,464 2,149 2,107 1,861

Other income:
Service charges and fees 2,457 2,831 2,548 2,306 2,235
Gain on sales of loans 840 783 548 800 1,208
Gain (loss) on
investment securities 1,245 5 108 1,919 (448)
Other noninterest income 172 481 452 429 345
Total other income 4,714 4,100 3,656 5,454 3,340

Other expense:
Salaries and employee
benefits 9,222 9,838 8,966 8,358 8,125
Occupancy 2,458 2,540 2,514 2,388 2,403
FDIC and other insurance 453 225 134 140 123
Other real estate, net 10 64 (12) (41) (69)
Unfunded loan commitment 145 368 675 151 (65)
Other general and
administrative 3,542 4,638 3,885 3,812 6,314
Total other expenses 15,830 17,673 16,162 14,808 16,831
Income before taxes 8,455 7,470 9,021 11,122 7,362
Taxes on income 3,247 2,949 3,505 4,281 2,862
Net income $5,208 $4,521 $5,516 $6,841 $4,500

PER SHARE DATA
Basic earnings per
common share $0.36 $ 0.32 $ 0.38 $0.48 $0.32
Diluted earnings per
common share 0.36 0.31 0.38 0.47 0.31
Cash dividends declared
per share 0.0950 0.0925 0.0925 0.0925 0.0925
Book value per share 15.52 15.16 14.92 14.53 14.14
Tangible book value
per share 15.03 14.66 14.45 14.44 14.05
Weighted average shares
outstanding:
Basic earnings per
common share 14,413,686 14,353,910 14,335,008 14,299,111 14,263,698
Diluted 14,608,190 14,584,878 14,612,732 14,644,863 14,642,913

OTHER FINANCIAL DATA
Investment securities $237,827 $256,312 $293,222 $278,034 $274,106
Loans held for sale 66,364 66,275 78,417 73,011 108,025
Portfolio loans 2,287,606 2,145,557 1,933,223 1,769,528 1,667,195
Total loans 2,353,970 2,211,832 2,011,640 1,842,539 1,775,220
Total assets 2,671,842 2,564,298 2,386,852 2,196,005 2,194,179
Total deposits 2,094,927 2,058,579 1,912,719 1,823,806 1,803,181
Other borrowings 282,513 218,356 190,847 95,561 123,212
Subordinated debentures 46,393 46,393 46,393 46,393 46,393
Total shareholders'
equity 225,417 217,609 213,838 208,185 201,777
Mortgage servicing
portfolio 145,028 141,680 136,294 134,444 134,259

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

2008 2007
Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
PERFORMANCE RATIOS
Return on average
assets 0.80% 0.72% 0.96% 1.28% 0.83%
Return on average
equity 9.42 8.24 10.29 13.26 9.04
Return on average
tangible equity 9.94 8.86 10.88 13.70 9.23
Net interest margin 3.45 3.89 4.23 4.35 4.34
Dividends declared to
net income 26.37 29.37 24.04 19.37 29.32
Effective tax rate 38.40 39.48 38.85 38.49 38.88
Efficiency ratio 59.69 64.02 59.13 52.82 64.60

ASSET QUALITY RATIOS
Nonperforming assets
to total loans and
other real estate
owned 1.37% 1.46% 1.53% 1.40% 1.76%
Nonperforming loans
to total loans 1.23 1.34 1.45 1.32 1.66
Net loan charge-offs
to average total loans 0.33 0.22 0.39 0.40 0.31
Allowance for loan
losses to total loans 1.27 1.34 1.41 1.52 1.56
Allowance for loan
losses to portfolio
loans 1.31 1.38 1.46 1.59 1.66
Allowance for loan
losses to
nonperforming loans 103.49 100.04 97.32 115.65 94.18

CAPITAL RATIOS
Average total
shareholders' equity
to average assets 8.49% 8.80% 9.30% 9.64% 9.15%
Leverage ratio 9.91 10.23 10.92 11.73 11.12
Tier 1 capital to
risk-weighted assets 9.47 9.71 10.49 11.84 12.44
Total capital to
risk-weighted assets 10.72 10.97 11.76 13.13 13.68

SEGMENT LOANS*
Oklahoma banking $943,331 $876,085 $844,859 $804,906 $766,990
Texas banking 797,700 759,389 644,749 567,236 507,384
Kansas banking 287,339 282,846 251,131 198,228 206,405
Other states
banking 259,236 227,237 192,484 199,158 186,416
Subtotal 2,287,606 2,145,557 1,933,223 1,769,528 1,667,195
Secondary market 66,364 66,275 78,417 73,011 108,025
Total loans $2,353,970 $2,211,832 $2,011,640 $1,842,539 $1,775,220

SEGMENT NET INCOME*
Oklahoma banking $2,503 $3,080 $3,759 $4,820 $4,278
Texas banking 2,406 1,701 1,638 1,568 1,643
Kansas banking 458 82 243 326 208
Other states banking 969 225 768 930 240
Subtotal 6,336 5,088 6,408 7,644 6,369
Secondary market (174) 114 33 197 753
Other operations (954) (681) (925) (1,000) (2,622)
Total net income $5,208 $4,521 $5,516 $6,841 $4,500

OFFICES AND EMPLOYEES
FTE Employees 467 489 484 457 443
ATM's 40 43 43 38 39
Branches 17 17 17 15 15
Loan production offices 3 3 3 3 3
Assets per employee $5,721 $5,244 $4,932 $4,805 $4,953

Balance sheet amounts are as of period end unless otherwise noted.
* In first quarter 2008, Southwest changed its segment disclosures to
report Texas, Kansas and Other states separately. Portfolio loans are
allocated based upon the state of the borrower, or the location of the
real estate in the case of real estate loans. Loans included in the
"Other states banking" segment are portfolio loans attributable to
states other than Oklahoma, Texas, or Kansas, and primarily consist of
healthcare and commercial real estate credits. These out of state loans
are administered by offices in Oklahoma, Texas, or Kansas.

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

2008 2007
Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
LOAN COMPOSITION
Real estate mortgage:
Commercial $846,757 $750,047 $608,409 $564,813 $582,440
One-to-four family
residential 110,938 111,085 112,407 90,916 83,312
Real estate
construction 744,090 724,929 659,214 617,993 517,199
Commercial 544,183 521,501 517,658 465,588 457,838
Installment and consumer:
Guaranteed student
loans 63,706 61,555 73,810 68,117 101,905
Other 44,296 42,715 40,142 35,112 32,526
Total loans,
including held
for sale 2,353,970 2,211,832 2,011,640 1,842,539 1,775,220
Less allowance for
loan losses (29,950) (29,584) (28,314) (28,054) (27,728)
Total loans, net $2,324,020 $2,182,248 $1,983,326 $1,814,485 $1,747,492
By statement of
condition category:
Loans held for sale:
Student loans $63,706 $61,555 $73,810 $68,117 $101,905
One-to-four
family
residential 1,417 3,442 3,293 3,382 4,113
Other 1,241 1,278 1,314 1,512 2,007
Total loans held
for sale 66,364 66,275 78,417 73,011 108,025
Portfolio loans 2,287,606 2,145,557 1,933,223 1,769,528 1,667,195
Total loans
before
allowance $2,353,970 $2,211,832 $2,011,640 $1,842,539 $1,775,220

DEPOSIT COMPOSITION
Non-interest
bearing demand $248,315 $257,067 $261,634 $248,285 $251,777
Interest-bearing
demand 71,450 63,323 63,145 63,758 63,741
Money market accounts 553,850 541,950 505,192 487,096 394,668
Savings accounts 13,808 13,032 14,830 11,017 11,196
Time deposits of
$100,000 or more 690,421 690,985 580,850 571,584 646,668
Other time deposits 517,083 492,222 487,068 442,066 435,131
Total deposits $2,094,927 $2,058,579 $1,912,719 $1,823,806 $1,803,181

NONPERFORMING ASSETS
Nonaccrual loans $26,134 $19,534 $26,291 $22,633 $26,978
90 days past due
and accruing 2,807 10,037 2,803 1,625 2,462
Total nonperforming
loans 28,941 29,571 29,094 24,258 29,440
Other real estate
loans 3,328 2,679 1,654 1,508 1,869
Total nonperforming
assets $32,269 $32,250 $30,748 $25,766 $31,309
Potential nonperforming
loans $69,588 $61,633 $70,389 $69,595 $52,335

ALLOWANCE ACTIVITY
Balance, beginning
of period $29,584 $28,314 $28,054 $27,728 $27,293
Charge offs 2,044 1,290 2,105 1,875 1,728
Recoveries 174 96 216 94 302
Net charge offs 1,870 1,194 1,889 1,781 1,426
Provision for loan
losses 2,236 2,464 2,149 2,107 1,861
Balance, end of
period $29,950 $29,584 $28,314 $28,054 $27,728

REGULATORY CAPITAL DATA
Tier I capital $258,272 $251,980 $248,961 $251,460 $244,862
Total capital 292,567 284,730 279,031 278,799 269,513
Total risk adjusted
assets 2,728,622 2,595,090 2,374,152 2,123,862 1,967,001

COMMON STOCK
Issued 14,658,042 14,658,042 14,658,042 14,658,042 14,658,042
Less treasury
shares (133,605) (300,833) (321,991) (329,570) (385,632)
Outstanding shares 14,524,437 14,357,209 14,336,051 14,328,472 14,272,410

INTANGIBLE ASSET DATA
Goodwill $7,071 $7,064 $6,742 $1,213 $1,213
Core deposit
intangible 2,893 3,053 2,879 1,466 1,531
Mortgage servicing
rights 1,290 1,503 1,431 1,428 1,413
Nonmortgage servicing
rights 22 24 25 32 37
Total intangible
assets $11,276 $11,644 $11,077 $4,139 $4,194
Intangible
amortization
expense $257 $159 $161 $165 $162

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

SOURCE Southwest Bancorp, Inc.

Rick Green, President & CEO, or Kerby E. Crowell, EVP & CFO, both of Southwest
Bancorp, Inc., +1-405-372-2230