Southwest Bancorporation of Texas, Inc.
Ticker:SWBT 4400 Post Oak Parkway
Exchange:NASDAQ-National Market Houston, TX 77027
Industry:Financial (SIC Code 6712) (713) 235-8800

Offering Information
Type of Shares:Common Shares Filing Date:11/20/96
U.S. Shares:1,334,753 Offer Date:1/27/97
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:1,150,000 Offer Price:$16.50
Secondary Shares:184,753 Gross Spread:$1.14
Offering Amount: $20,021,295 Selling:$0.68
Expenses:$350,000 Reallowance:$0.10
Shares Out After:9,131,595

Primary Underwriting Group
ManagerTierPhone
Keefe, Bruyette & Woods, Inc.Lead Manager (212) 323-8470
Legg Mason Wood Walker, Inc.Co-manager (410) 539-4038

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Vinson & Elkins
Bank's Law Firm: Skadden, Arps, Slate, Meagher & Flom
Auditor: Coopers & Lybrand

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$32.40$29.77$23.26Assets:$839.11
Net Income:$0.92$7.39$5.59Curr Assets:
EPS:$0.70$0.87$0.66Liabilities:$791.15
Prior EPS:$0.43$10.64$5.94Curr Liabilities:
Cash Flow/Oper:$8.33Equity:$47.96
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a bank holding company headquartered in Houston, Texas. As of December 31, 1996, the company had assets of $1.0 billion, net loans of $595.5 million, total deposits of $833.6 million and total shareholders' equity of $54.6 million. Substantially all of the company's revenue and income is derived from the operation of its bank subsidiary, Southwest Bank of Texas National Association, a national bank with seven full service banking facilities in the Houston area. The Bank provides a full range of commercial and private banking services, including financial planning and investment management, to small and middle market businesses and individuals in the Houston metropolitan area. Based on total assets as of September 30, 1996, the company is the largest independent bank holding company headquartered in the Houston metropolitan area.

Competition
The banking business is highly competitive, and the profitability of the company will depend principally upon the company's ability to compete in its market area. The company competes with other commercial and savings banks, savings and loan associations, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms, asset-based non-bank lenders and certain other non-financial institutions, including certain governmental organizations which may offer subsidized financing at lower rates than those offered by the company.

Use of Proceeds
The proceeds from the proposed offering will be used to redeem preferred stock issued by the bank and the remainder will be used for general corporate purposes.

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