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1 ^j-y^'i-'v^j^-^^.tg/.i UTHWEST BANCORP, INC.

2 f 1 oo^n ANNUAL REPORT Q^fii fil _ ^^ ^ -.^ ^ -j^_j_, ^ 1 Letter to Shareholders from the C.E.O. February 24, 2012 \ Dear Shareholders, \i We began 2011 with a high level of, nonperforming and potential problem assets that produced a drag on earnings, [ dividends, and shareholder returns. ' Our primary focus for the year was! resolving those credit quality issues. 1 We took decisive action. We decided that a near-term sale of higher risk assets was in the best interests of Southwest's shareholders. In the fourth quarter we successfully concluded sales of loans and other real estate totaling $.302 million, including $ 169 million of nonperforming assets and $131 million of potential problem loans. We strengthened our credit, loan review, and workout functions under a new organizational structure, a new Chief Banking Officer and a new Chief Credit Officer, and bolstered the credit analysis staff and work-out staff with additional experienced officers. As we approached the third quarter, we faced a critical question: Should we take action to eliminate the pool of higher risk assets by sale, which would immediately reduce the risk and improve our future prospects but create a net loss for the year; or Should we continue to work out these loans over some unknown period and with uncertain earnings impact? We recorded expenses on the sales that contributed to a net loss of $68.3 million for the year. However, the sales meaningfully improved our credit quality and our prospects for 2012 and beyond. Our asset sales and our other work-out efforts produced a 72% reduction in nonperforming assets and a 43% reduction in potential problem loans from year-end At year-end 2011, nonperforming loans to total portfolio loans were 0.80% compared to 4.59% at December 31, 2010.

3 &i -O- We look forward to the future. We started 2012 with improved credit quality, consolidated assets of $2.4 billion, and capital ratios that continued to exceed the standards required for well-capitalized banking organizations. We will continue to focus on our commercial banking operations serving our primary markets, and plan to stabilize loan revenue by generating new loans prudently and profitably. We are committed to a return to sustained profitability, to resumption of dividends for trust preferred securities, preferred stock, and common stock, and to once again produce reliable and attractive returns for our shareholders. We believe in our communities. We also remain committed to the communities we serve. Southwest supports local, state, and national service organizations and the arts financially, by donating many hours of voluntary assistance, and by providing leadership in each of our geographic markets. The Board of Directors joins me in thanking you for your investment and support. We look forward to the future with high energy, a vision for long-term success, and dedication to increase the value of your investment in Southwest. Sincerely, Rick Green Vice Chairman of the Board, President and Chief Executive Officer, Southwest, Stillwater National, arid

4 Five Year Summary of Selected Financial Data For the Year Ended December 31, (Dollars in thousands, except per share data) Operations Data Interest income Interest expense Net interest income Provision for loan losses Gain on sales of loans and securities, net Noninterest income Noninterest expense Income (loss) before taxes Taxes on income Net income (loss) $ 120,745 24,413 96, ,101 1,658 12,360 90,201 (111,952) (43,657) $ (68,295) $ 142,807 35, ,331 35,560 2, ,828 63,633 26,702 9,738 $ 16,964 $ 150,399 51,708 98,691 39,176 5,888 16,048 60,858 20,593 7,611 $ 12,982 $ 162,794 73,075 89,719 18,979 3,566 12,572 62,488 24,390 9,489 $ 14,901 $ 177,068 84,471 92,597 8,947 4,923 11,510 65,108 34,975 13,597 $ 21,378 Net income (loss) available to common shareholders $ (72,548) $ 12,777 $ 8,837 $ 14,658 $ 21,378 Dividends Preferred stock - declared and paid Preferred stock - in arrears Common stock $ 1,750 1,772 $ 3,500 $ 3,500 1,398 $ 243 5,519 $ 0 5,299 Ratio of total dividends to net income Per Common Share Data (5.16)% 20.63% 37.73% 38.67% 24.79% Basic earnings Diluted earnings Cash dividends Book value Weighted average common shares outstanding: $ (3.73) (3.73) $ $ $ $ Basic, net of unvested restricted stock Diluted, net of unvested restricted stock Financial Condition Data 19,414,231 19,433,883 17,848,610 17,894,011 14,625,847 14,689,448 14,471,242 14,641,521 14,291,041 14,606,149 Investment securities $ 275,352 $ 262,525 $ 244,373 $ 245,380 $ 239,369 Noncovered portfolio loans Loans held for sale Total noncovered loans Covered portfolio loans Interest-earning assets Total assets Interest-bearing deposits Total deposits 1,687,178 38,695 1,725,873 37,615 2,238,482 2,382,873 1,520,397 1,921,382 2,331,293 35,194 2,366,487 53,628 2,723,658 2,820,541 1,875,546 2,252,728 2,539,294 43,134 2,582,428 85,405 2,996,849 3,108,291 2,267,901 2,592,730 2,494,506 56,941 2,551,447 2,798,710 2,879,762 1,918,181 2,180,122 2,145,557 66,275 2,211,832 2,461,190 2,564,298 1,801,512 2,058,579 Other borrowings Subordinated debentures Total shareholders' equity 56,479 81, ,186 94,602 81, , ,022 81, , ,138 81, , ,356 46, ,609 Common shareholders' equity Financial Ratios 238, , , , ,609 Return on average assets Return on average total shareholders' eciuity Return on average common equity Net interest margin Efficiency ratio Average assets per employee (2.53)% (18.06) (23.40) $ 6, % $ 6, % $ 6, % $ 6, % : $ 4,661

5 Corporate Offices Southwest Bancorp, Inc S. Main Street Stillwater, OK Stillwater National Bank & Trust Company 608 S. Main Street Stillwater, OK N. Main Street South Hutchinson, KS Oklahoma Stillwater National Bank Stillwater S. Main Street 308 S. Main Street 1102 W. Hall of Fame 1908 S. Sangre Oklahoma City - Waterford Waterford Boulevard, Suite 101 -»* 1>«*, Oklahoma City - South S. Walker Avenue, Suite B S M IS Oklahoma City - OUHSC Loan Production Office - OUHSC 1106 N. Stonewall Edmond - Spring Creek S. Bryant Avenue i i i '^ " ' Tulsa - Utica S. Utica Avenue Tulsa - 61st Street E. 61st Street, Suite 170 Chickasha W. Grand Avenue Texas Dallas - SNB Bank of Dallas - Frisco Town and Country Boulevard, Suite 100 Dallas - SNB Bank of Dallas - Preston Center Berkshire Line, Suite 350 San Antonio - SNB Bank of San Antonio - Medical Hill Huebner Road Austin - SNB Bank ol Austin N. Capital of Texas Highway, Suite 100 Houston - SNB Bank of Houston - Loan Production Office Richmond Avenue, Suite 140 Tilden - SNB McMullen Bank Elm Street Kansas Anthony W. Main Street Harper Central Street -O- Mayfield N. Osborn BANK OP Overland Park Metcalf Avenue South Hutchinson N. Main Street Hutchinson E. 30th Avenue Wichita, East Branch E. 21st Street N., Suite 150 Wichita, West Branch W. 21st Street N. ^ KANSAS Annual Meeting The 2012 Annual Meeting of Shareholders will be held on April 26, 2012 at 11:00 a.m. in the Auditorium (Room 215) at the Stillwater Public Library, 1107 S. Duck, Stillwater, Oklahoma. Annual Report on Form 10-K Southwest's Annual Report on Form 10-K may be obtained, free of charge online at or by writing: Laura Robertson, CFO Southwest Bancorp, Inc. P.O. Box 1988 Stillwater, OK Independent Auditors - Ernst & Young LLP One Williams Center, Suite 1700 Tulsa, OK Special Counsel - james I. Lundy, III, Attorney at Law Suite 300, 1701 Pennsylvania Avenue, NW Washington, D.C General Counsel - Baker, Koemel, Ihrig 222 E. 7th Avenue Stillwater, OK Stock Exchange Listing - Common shares of Southwest Bancorp are traded on the National Association of Security Dealers (NASDAQ) National Market under the symbol OKSB. Transfer Agent and Registrar - Computershare Investor Services, LLC 2 North LaSalle Street Chicago, IL Forward-Looking Statements O The letter to shareholders and other portions of this report include forward-looking statements such as: 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; expectations regarding our ability to utilize tax loss benefits; estimates of value of assets held for sale or available for sale; 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. These other matters include among other things, the direct and indirect effects of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory poucies of banking regulators. 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. Designation as a well-capitalized institution does not constitute a recommendation or endorsement by Federal bank regulators. ^

6 Board of Directors of Southwest Bancorp, Inc. and Stillwater National Bank»&. Trust Company Robert B. Rodgers Joe Berry Cannon David P. Lambert Chairman of the Board Assistant Professor of Management, Chairman of the Board, President, Bob Rodgers Motor Company Oral Roberts University School of Business Lambert Construction Company Rick Green Vice Chairman of the Board President and Chief Executive Officer, Southwest, Stillwater National and James E. Berry II Owner, Pizza Berry, Inc. Tom D. Berry Auctioneer, Real Estate Broker, Oil & Gas Exploration Robert B. Rodgers Chairman of the Board President, Bob Rodgers Motor Company Rick Green Vice Chairman of the Board President and Chief Executive Officer, Southwest, Stillwater National and John Cohlmia Real Estate Broker, Grubb & Ellis/ Levy Beffort David S. Crockett, Jr., CPA Owner, David S. Crockett & Co., CPA's J. Berry Harrison Rancher and Retired Oklahoma State Senator James M. Johnson Self-employed, Small Business Owner -O- Board of Directors of Patrick L. Gearhart President, Wichita Division Kathleen Laubhan Vice President, Wichita Division Anthony W. Martin Retired Dentist Marran H. Ogilvie Independent Advisor Linford R. Pitts President, Stillwater Transfer & Storage, Inc. Russell W Teubner Founder and Chief Executive Officer HostBridge Technology Jon Ott President, Rural Banking David W Pitts Chief Banking Officer Douglas J. Watts President, Overland Park Division Rick Green President and Chief Executive Officer Priscilla Barnes Corporate Chief Credit Officer Brent A. Bates Senior Vice President Officers of Southwest Bancorp, Inc. John T. Danielson Corporate Chief Banking Officer Steven M. Gobel, CPA Chief Accounting and Controls Officer Laura Robertson, CPA Corporate Chief Financial Officer Chuck Westerheide Executive Vice President and Treasurer Executive Management of Stillwater National Bank & Trust Company Rick Green John T. Danielson Kimberly G. Sinclair President and Chief Executive Officer Corporate Chief Banking Officer Chief Administrative Officer Priscilla Barnes Corporate Chief Credit Officer Laura Robertson, CPA Corporate Chief Financial Officer

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8 f^jthwesr 'BANCORP, INC. SOUTHWEST BANCORP, INC ANNUAL REPORT ON FORM 10-K