[GRAPHIC OMITTED] SOUTHWEST BANCORP, INC. REPORTS EARNINGS CONTACT: RICK GREEN, PRESIDENT & C.E.O. KERBY E. CROWELL, EXECUTIVE VICE PRESIDENT & C.F.O. TELEPHONE: (405) 372-2230 RELEASE DATE: APRIL 20, 2004 April 20, 2004, Stillwater, Oklahoma . . . . Southwest Bancorp, Inc. (Nasdaq National Market--OKSB, OKSBO), the Oklahoma-based parent company of the Stillwater National Bank and Trust Company ("Stillwater National") and SNB Bank of Wichita ("SNB Wichita"), today reported net income for the first quarter of 2004 of $4.2 million, a 20% increase from the first quarter of 2003. Diluted earnings per share were $0.34 compared to $0.29 per share for the 2003 period, up 17%. FIRST QUARTER 2004 RESULTS AND FOCUS o Total assets of $1.7 billion; a 7% increase from year-end 2003. o Portfolio loans of $1.1 billion; a 5% increase from year-end 2003. o Book value per share of $9.55; a 4% increase from year-end 2003. o Net Income: $4.2 million; a 20% increase from first quarter 2003. o Diluted earnings per share: $0.34; a 17% increase from first quarter 2003. o Dividends per share: $0.07; a 12% increase from first quarter 2003. o Return on average equity: 14.99% o GAAP-based efficiency ratio: 56.11% STRATEGIC PERSPECTIVE "Southwest Bancorp, Inc. ("Southwest") maintains an intense focus on specific performance goals designed to increase shareholder value. These goals include annual growth in diluted earnings per share and assets of 10% or more and geographic market share growth and expansion," said Rick Green, President and Chief Executive Officer. "In the past two years, Southwest has expanded into Texas and Kansas. For 2003 and the first quarter of 2004, these operations contributed over 12% and 17% of consolidated net income, respectively. Southwest has received regulatory approval to expand further in Texas by opening a second branch office in the Dallas metropolitan area. The office will be located in Preston Center at 5950 Berkshire Lane, Dallas, Texas. Southwest's earnings growth during the first quarter of 2004 is primarily the result of significant loan growth and an increase in net interest income due to improved interest spread and margin. We are continuing to focus on increasing net interest income by prudent loan growth coupled with careful management of interest margins and funding. "At the end of the first quarter of 2004, Southwest had total assets of $1.7 billion, loans of $1.4 billion, and deposits of $1.3 billion. At that date, regulatory capital ratios for Southwest, Stillwater National, and SNB Wichita continued to exceed regulatory requirements for a well-capitalized institution." ADDITIONAL FINANCIAL INFORMATION FOR THE FIRST QUARTER OF 2004 Net income for 2004 was $4.2 million, up $689,000, or 20%, from 2003. Diluted earnings per share for 2004 were $0.34, up 17% from 2003. Net interest income increased 24% from 2003. Non-interest income for 2004 declined $364,000 from 2003 due primarily to a $421,000 reduction in gain on sales of mortgage loans which occurred due to the lower refinancing demand created by slightly higher mortgage interest rates in 2004. The provision for loan losses of $1.6 million declined $73,000, or 4%, from 2003. Noninterest expense of $10.5 million increased $1.6 million, or 18%, primarily as a result of increases in compensation, general and administrative, and occupancy expenses. Southwest recorded a one-time charge relating to executive retirement in the first quarter of 2004 of approximately $294,000 after related tax benefits. FINANCIAL CONDITION At March 31, 2004, total assets were $1.7 billion, a $113.7 million increase from the end of 2003. Total portfolio loans (loans other than those held for sale) at quarter-end 2004 were $1.1 billion, up $49.9 million, or 5%, from year-end 2003, primarily as a result of growth in commercial and commercial real estate lending. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING LOANS Nonaccrual loans totaled $13.5 million at March 31, 2004, compared to $14.5 million at December 31, 2003. This $1.0 million reduction is primarily the result of write-downs on three problem credits classified as nonaccrual at December 31, 2003 and $448,000 in nonaccrual loans that were returned to accrual status. Total nonperforming loans of $15.8 million declined $133,000, or less than 1%, from year-end 2003, and represented 1.11% of total loans, compared to 1.22% of total loans at year-end 2003. At March 31, 2004, $1.1 million, or 7%, of loans classified as nonperforming were guaranteed by United States agencies or U.S. government sponsored entities. Mr. Green said, "Much of our business is commercial lending. As a result, weakness in one or a few large credits can have a significant impact on our nonperforming loan totals. Through the years, however, we have demonstrated the ability to resolve problem commercial loans." The allowance for loan losses of $16.2 million increased $380,000, or 2%, from year-end 2003, due primarily to the $110.4 million growth in loans that occurred during the quarter. At quarter-end 2004, the allowance for loan losses was 1.14% of total loans, compared to 1.21% of total loans at year-end 2003. Management believes the amount of the allowance is appropriate, given its systematic methodology for calculating the allowance. That methodology is designed to estimate inherent losses on total loans in the portfolio, including those on nonperforming loans. SECURITIES Southwest's common stock is traded on the Nasdaq National Market under the symbol OKSB. Trust preferred securities of Southwest's subsidiary, SBI Capital Trust, trade on the Nasdaq National market under the symbol OKSBO. Market makers for Southwest's common stock include Stifel Nicolaus & Co., Goldman Sachs & Co., Keefe Bruyette & Woods Inc., Merrill Lynch, RBC Dain Rauscher, Inc., Schwab Capital Markets, Morgan Stanley & Company, Sandler O'Neill & Partners and FTN Financial Securities Corp. SOUTHWEST BANCORP AND SUBSIDIARIES Southwest is the financial holding company for Stillwater National Bank and Trust Company, SNB Bank of Wichita, Healthcare Strategic Support, Inc., and Business Consulting Group, Inc. Southwest is an independent company, not controlled by other organizations or individuals. Southwest pursues an established strategy of independent operation for the benefit of all of its shareholders. A substantial portion of Southwest's current business and focus for the future are services for local businesses, their primary employees, and other managers and professionals. Southwest seeks to be the premier financial services company for its selected markets. Information regarding Southwest can be retrieved via the Internet, at www.oksb.com. Southwest, Stillwater National, and SNB Wichita offer commercial and consumer lending, deposit, and investment services, and specialized cash management, consulting and other financial services from offices in Stillwater, Tulsa, Oklahoma City, and Chickasha, Oklahoma, Wichita, Kansas and metropolitan Dallas, Texas; loan production offices on the campuses of the University of Oklahoma Health Sciences Center and Oklahoma State University-Tulsa; a marketing presence in the Student Union at Oklahoma State University-Stillwater; and on the Internet. Information regarding products and services of Stillwater National and SNB Wichita, including SNB DirectBanker(R), Southwest's online banking product, can be retrieved via the Internet, at www.oksb.com. The Stillwater National and SNB Wichita web sites and online banking technology are frequently updated in response to the changing needs of the large base of Internet banking customers. 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 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, 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. SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share data) MARCH 31, DECEMBER 31, 2004 2003 ----------- ----------- ASSETS: Cash and cash equivalents ................................................. $ 27,729 $ 33,981 Investment securities: Held to maturity, fair value $12,867 (2004) and $16,144 (2003) ....... 12,736 15,916 Available for sale, amortized cost $185,633 (2004) and $176,470 (2003) 187,141 177,074 Federal Reserve Bank and Federal Home Loan Bank Stock, at cost ....... 11,360 11,276 Loans held for sale ....................................................... 278,927 218,422 Loans receivable, net of allowance for loan losses of $16,228 (2004) and $15,848 (2003) ................................. 1,124,127 1,074,566 Accrued interest receivable ............................................... 11,939 11,321 Premises and equipment, net ............................................... 19,454 19,818 Other assets .............................................................. 21,044 18,351 ----------- ----------- Total assets .................................................. $ 1,694,457 $ 1,580,725 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY: Deposits: Noninterest-bearing demand ........................................... $ 171,350 $ 167,332 Interest-bearing demand .............................................. 61,280 53,955 Money market accounts ................................................ 389,147 376,016 Savings accounts ..................................................... 7,418 6,903 Time deposits of $100,000 or more .................................... 412,659 358,130 Other time deposits .................................................. 249,772 241,789 ----------- ----------- Total deposits ................................................... 1,291,626 1,204,125 Accrued interest payable .................................................. 2,661 3,375 Income tax payable ........................................................ 5,688 2,850 Other liabilities ......................................................... 4,718 4,410 Other borrowings .......................................................... 202,678 183,850 Subordinated Debentures ................................................... 72,180 72,180 ----------- ----------- Total liabilities ............................................. 1,579,551 1,470,790 Shareholders' equity: Common stock - $1 par value; 20,000,000 shares authorized; 12,243,042 shares issued and outstanding ......................... 12,243 12,243 Capital surplus ...................................................... 7,653 6,997 Retained earnings .................................................... 96,017 92,657 Accumulated other comprehensive income ............................... 896 360 Treasury stock, at cost; 205,809 (2004) and 287,410 (2003) shares .... (1,903) (2,322) ----------- ----------- Total shareholders' equity .................................... 114,906 109,935 ----------- ----------- Total liabilities & shareholders' equity ...................... $ 1,694,457 $ 1,580,725 =========== =========== SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands) For the three months ended March 31, -------------------- 2004 2003 ------- -------- Interest income: Interest and fees on loans ........... 20,804 $17,722 Investment securities ................ 1,953 2,073 Other interest-bearing assets ........ 1 4 ------- ------- Total interest income ............ 22,758 19,799 Interest expense: Interest-bearing deposits ............ 4,837 5,327 Other borrowings ..................... 1,222 1,295 Subordinated Debentures .............. 1,081 600 ------- ------- Total interest expense ........... 7,140 7,222 ------- ------- Net interest income ....................... 15,618 12,577 Provision for loan losses ................. 1,649 1,722 Other income: Service charges and fees ............. 2,267 2,251 Gain on sales of loans receivable .... 606 937 Gain on sales of investment securities 1 2 Other noninterest income ............. 244 292 ------- ------- Total other income ............... 3,118 3,482 Other expenses: Salaries and employee benefits ....... 5,159 4,312 Occupancy ............................ 2,231 1,922 FDIC and other insurance ............. 95 78 Other real estate .................... 17 161 General and administrative ........... 3,010 2,421 ------- ------- Total other expenses ............. 10,512 8,894 ------- ------- Income before taxes ....................... 6,575 5,443 Taxes on income ...................... 2,373 1,930 ------- ------- Net income ................................ $ 4,202 $ 3,513 ======= ======= SOUTHWEST BANCORP, INC. AVERAGE BALANCES, YIELDS AND RATES (Dollars in thousands) For the three months ended March 31, 2004 --------------------------------- Interest Average Income/ Average Balance Expense Yield/Rate --------------------------------- ASSETS: Loans receivable $1,379,726 $20,804 6.06% Investment securities 206,834 1,953 3.80 Other interest-earning assets 671 1 0.60 ------------ ------- ----- Total interest-earning assets 1,587,231 22,758 5.77 Noninterest-earning assets 62,751 ----------- Total assets $1,649,982 =========== LIABILITIES AND SHAREHOLDERS' EQUITY: Interest-bearing demand $ 59,614 $ 86 0.58% Money market accounts 385,886 1,354 1.41 Savings accounts 7,330 5 0.27 Time deposits 631,719 3,392 2.16 ----------- ------- ----- Total interest-bearing deposits 1,084,549 4,837 1.79 Other borrowings 212,318 1,222 2.31 Subordinated Debentures 72,180 1,081 5.92 ----------- ------- ----- Total interest-bearing liabilities 1,369,047 7,140 2.10 ------- ----- Noninterest-bearing demand 158,485 Other noninterest-bearing liabilities 9,736 Shareholders' equity 112,714 ---------- Total liabilities and shareholders' equity $1,649,982 ========== Net interest income $15,618 ======= Interest rate spread 3.67% ===== Net interest margin (1) 3.96% ===== Ratio of average interest-earning assets to average interest-bearing liabilities 115.94% =========== Net interest income and margin (tax-equivalent basis) (2) $15,719 3.98% ======= ===== - ------------------- (1) The net interest margin is equal to annualized net interest income divided by average interest-earning assets. In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those (2) In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent on taxable investments and loans, a tax equivalent adjustment is made equally to interest income and income tax expense with no effect on after tax income. The tax equivalent adjustment has been computed using a federal income tax rate of 35%. SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) For the three months ended March 31, -------------------------------- 2004 2003 - ------------------------------------------------------------------------------------------ PER COMMON SHARE DATA: - ------------------------------------------------------------------------------------------ Basic Earnings $ 0.35 $ 0.30 Diluted Earnings 0.34 0.29 Dividends declared 0.07 0.06 Book value (at period end) 9.55 8.51 - ------------------------------------------------------------------------------------------ WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: - ------------------------------------------------------------------------------------------ Basic 11,995,400 11,654,998 Diluted 12,496,253 12,124,972 - ------------------------------------------------------------------------------------------ KEY RATIOS: - ------------------------------------------------------------------------------------------ Return on average assets 1.02% 1.00% Return on average total shareholders' equity 14.99% 14.59% Efficiency ratio 56.11% 55.38% - ------------------------------------------------------------------------------------------ CAPITAL RATIOS AS OF PERIOD END: - ------------------------------------------------------------------------------------------ Leverage ratio 9.21% 8.66% Tier I capital ratio 11.10% 10.07% Total capital ratio 14.63% 11.14% Tier I capital $ 151,818 $ 123,176 Total capital 200,068 136,328 Total risk adjusted assets 1,367,881 1,223,434 - ------------------------------------------------------------------------------------------ LOAN COMPOSITION AS OF PERIOD END: - ------------------------------------------------------------------------------------------ Real estate mortgage: Commercial $ 431,240 $ 381,887 One-to-four family residential 83,897 92,433 Real estate construction 225,727 183,855 Commercial 384,680 397,026 Installment and consumer: Government-guaranteed student loans 268,270 150,213 Other 25,468 24,308 ----------- ----------------- Total loans, including loans held for sale $1,419,282 $1,229,722 Less: Allowance for loan losses (16,228) (13,152) ----------- ----------------- Total loans, net $1,403,054 $1,216,570 =========== ================= SOUTHWEST BANCORP, INC. UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS (CONTINUED) (Dollars in thousands, except per share data) For the three months ended March 31, 2004 2003 --------------------- ASSET QUALITY AS OF PERIOD END: Nonaccrual loans (1) .......................... $ 13,497 $ 11,990 Restructured loans -- -- 90 day past due and accruing (2) .............. 2,284 2,657 -------- -------- Total nonperforming loans (3) ............. $ 15,781 $ 14,647 ======== ======== Other real estate owned ....................... $ 1,938 $ 585 Allowance for loan losses as a percentage of total loans ................................ 1.14% 1.07% Allowance for loan losses as a percentage of nonperforming loans ........................ 102.83% 89.79% Nonperforming loans as a percentage of total loans ................................ 1.11% 1.19% Nonperforming assets as a percentage of total loans and other real estate ................ 1.25% 1.24% Total charge-offs ............................. $ 1,449 $ 649 Total recoveries .............................. 180 191 -------- -------- Net charge-offs ........................... $ 1,269 $ 458 ======== ======== Net charge-offs as a percentage of average loans 0.37% 0.16% OTHER MISCELLANEOUS INFORMATION AS OF PERIOD END: Goodwill ...................................... $ 194 $ 194 Mortgage Servicing Rights ..................... 1,137 957 Non-mortgage Servicing Rights ................. 86 109 -------- -------- Total Intangible Assets ................... $ 1,417 $ 1,260 ======== ======== 1-4 family mortgage loans serviced for others . $122,751 $112,328 Intangible amortization expense ............... 79 67 FTE employees (at period end) ................. 346 323 Number of ATMs ................................ 288 328 Number of branches ............................ 9 8 - ----------------- (1) The government-guaranteed portion of loans included in these totals were $968,000 (2004) and $1.4 million (2003). (2) The government-guaranteed portion of loans included in these totals were $96,000 (2004) and $96,000 (2003). (3) The government-guaranteed portion of loans included in these totals were $1.1 million (2004) and $1.5 million (2003).