VTHWEST BANCORP, INC. oos^^

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1 VTHWEST BANCORP, INC. oos^^

2 IM ANNUAL REPORT Letter to Shareholders from the C.E.O. February 26, 2010 Dear Shareholders, The year 2009 was marlced by the continued difficult national economy, which had widespread effects on banking industry profits, balance sheets, and stock prices. In these uncertain times, we are maintaining clear focus on stability and building long-term value for our shareholders. We have continued to generate core earnings and net income while increasing capital and booking substantial increases in our allowance for loan losses. Key achievements in 2009 included: A 10% increase in net interest income; A 57% increase in our allowance for loan losses; A 23% increase in core funds; A 12% decrease in human resource costs; Acquisition of deposits and assets of First National Bank of Anthony ("FNBA"), Anthony, Kansas, in an FDIC-assisted transaction; and Increased regulatory capital and maintenance of regulatory capital ratios well in excess of the general "well-capitalized" minimums. The year 2009 also had its challenges for Southwest. Our net income available to common shareholders was $8.8 million, a 40% decrease from 2008, as a result of current economic conditions that have rec uired increases in our allowance for loan leases. Our levels of problem assets increased significantly, which led to our entering into a regulatory agreement. Your Board of Directors and management are clearly focused on achieving full compliance with our regulatory commitments and reducing our levels of problem assets while controlling operating costs and producing consistent net interest income. Strategic Vision and Initiatives Over the last seven years, our strategic vision has produced substantial growth in selected markets in Texas, Oklahoma, and Kansas. These markets generally have fared better in the recession than many others. At year end, our Texas portfolio loans totaled $1.1 billion, or 40% ofthe total. Our total Texas and Kansas operations together account for over 50% our portfolio loans. We continue to focus on selected markets in nearby states with concentrations of healthcare and health professionals, businesses and their managers and owners; building our community banking operations, and maintaining stable funding sources at reasonable cost. We have banking relationships with physicians and dentists in 37 states and are constantly evaluating technologies that deliver financial services to the healthcare

3 2009 ANNUAL REPORT industry, professionals and managers, and businesses. These include our advanced document imaging and management and cash management products. The outcome of the healthcare legislative proposals is not clear, but regardless of legislation, the future of healthcare demand in our aging society and demand by the market for efficiency in healthcare operations are certain. There is strong demand for rural healthcare facilities, focusing c:)n areas and cities with populations of less than 100,000. Southwest is providing funding for three new hospitals now under construction in rural areas of three different states under a United States Department of Agriculture ("USDA") program that provides a USDA guarantee upon completion of each project. We see this important new business opportunity evolving to position our company with a recurring source of new revenue as our population grows older, lives longer, and prefers staying in their home communities for life. Services that "make our customers money." Our services include SNB Digital Lockbox, Document Imaging, and Cash Management/Treasury Services. All these services are designed for the healthcare industry and other document-intensive businesses for use in providing measurable office management and cash management benefits, while allowing our customers to improve the equality of service to their patients, clients, and customers. They contribute to Southwest's ability to gain new noninterest-bearing deposits and to differentiate Southwest from its competitors. 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 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, Vice Chairman of the Board, President and Chief Executive Officer, Southwest and Stillwater National

4 I Kansas Cits Hutchinson Overland Park South jhfutchinson Eclmond fz10[c[ahomaat7 Chickasha I ^ > SNB ^'Dallas I Austin Houston San Antonio (^TiUen Kansas Oklahoma Texas

5 m Board of Directors of Southwest Bancorp, Inc. and Stillwater National Bank & Trust Compan r Robert B. Rodgers Chairman of the Board President, Bob Rodgers Motor Company Vice Chairman of tlie Board President and Chief Executive Officer, Southwest and Stillwater National James E. Berry II Owner, Shading Concepts Tom D. Berry Auctioneer, Real Estate Broker, Oil & Gas Exploration Joe Berry Cannon Assistant Professor of Management, Oral Roberts University School of Business 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 David P. Lambert Chairman of the Board, Lambert Construction Company Linford R. Pitts President, Stillwater Transfer & Storage, Inc. Russell W. Teubner Founder and Chief Executive Officer HostBridge Technology Bocird of Directors of Robert B. Rodgers Chairman of the Board President, Bob Rodgers Motor Company Vice Chairman of the Board President and Chief Executive Officer, Southwest and Stillwater National Patrick L. Gearhart President, Wichita Division Jerry Lanier President and Chief Executive Officer David Lesperance President, Hutchinson Division Anthony W. Martin Retired Dentist David W. Pitts Executive Vice President, Regional Dir4ctor Douglas J. Watts President, Stillwater National Bank Kansas City, Kansas Officers of Southwest Bancorp, Inc. President and Chief Executive Officer Kerby E. Crowell, CPA Chief Financial Officer and Secretary Steven M. Gobel, CPA Chief Accounting and Controls Officer and Associate Chief Financial Officer Laura Robertson, CPA Senior Vice President Public Company Reporting and Tax Manager Chuck Westerheide Executive Vice President and Treasurer Executive Management of Stillwater National Bank & Trust Company President and Chief Executive Officer Priscilla Barnes Executive Vice President, Regulatory Risk Management and Human Resources Kerby E. Crowell, CPA Chief Financial Officer and Secretary David Dietz Chief Information Officer Steven M. Gobel, CPA Chief Accounting and Controls Officer and Associate Chief Financial Officer Jerry Lanier Chief Lending Officer Laura Robertson, CPA Senior Vice President Public Company Reporting and Tax Manager Kimberly G. Sinclair Chief Administrative Officer Chuck Westerheide Executive Vice President and Treasurer

6 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 before taxes Taxes on income Net income $ 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 $ 169,760 76,808 92,952 12,187 3,689 12,973 56,021 41,406 15,409 $ 25,997 $ 137,344 52,115 85,229 16,155 4,915 12,368 51,503 34,854 13,840 $ 21,014 Net income available to common shareholders $ 8,837 $ 14,658 $ 21,378 $ 25,997 $ 21,014 Dividends Preferred Stock Common stock Ratio of total dividends to net income Per Share Data $ 3,500 1, % $ 243 5, % $ 5, % $ 4, % $ 4, % Basic earnings per common share Diluted earnings per common share Common stock cash dividends Book value per common share Weighted average common shares outstanding: $ $ $ $ $ Basic, net of unvested restricted stock Diluted, net of unvested restricted stock Financial Condition Data 14,625,847 14,689,517 14,471,242 14,641,521 14,291,041 14,606,149 14,151,624 14,483,941 13,155,742 13,559,885 Investment securities Noncovered portfolio loans Loans held for sale Total noncovered loans Covered portfolio loans Interest-earning assets Total assets Interest-bearing deposits Total deposits Other borrowings Subordinated debentures Total shareholders' equity Common shareholders' equity Mortgage servicing portfolio Selected Ratios $ 263,439 2,539,294 43,134 2,582,428 85,405 2,933,856 3,108,291 2,267,901 2,592, ,022 81, , , ,459 $ 264,166 2,494,506 56,941 2,551,447-2,817,496 2,879,762 1,918,181 2,180, ,138 81, , , ,143 $ 256,608 2,145,557 66,275 2,211,832-2,478,429 2,564,298 1,801,512 2,058, ,356 46, , , ,680 $ 270,519 1,602, ,464 1,791,190-2,079,380 2,170,628 1,511,196 1,765, ,094 46, , , ,904 $ 268,763 1,352, ,447 1,735,880-2,007,248 2,099,639 1,433,265 1,657, ,508 46, , , ,470 Return on average assets Return on average total shareholders' equity Return on average common equity Tangible common equity to tangible assets Net interest margin Efficiency ratio Average assets per employee 0.43% $ 6, % $ 6, % $ 4, % $ 5, % $ 5,448

7 Corporate Offices Southwest Bancorp, Inc S. Main Street Stillwater, OK Stillwater National Bank & Trust Company S. Main Street Stillwater, OK N. Main Street South Hutchinson, KS Stillwater National Bank Okiahomia Stillwater 608 S. Main Street Stillwater, OK Oklahoma City - Waterford 6301 Waterford Blvd., Suite 101 Oklahoma City, OK Oklahoma City - South 8101 S.Walker Ave., Suite B Oklahoma City, OK Oklahoma City - OUHSC Loan Production Office The University of Oklahoma Health Sciences Center 1106 N. Stonewall Oklahoma City, OK Edmond - Spring Creek 1440 S. Bryant Avenue Edmond, OK Tulsa - Utica 1500 S. Utica Avenue Tulsa, OK Tulsa - 61st Street 2431 E. 61st, Suite 170 Tulsa, OK Chickasha 500 W. Grand Avenue Chickasha, OK Texa.i Dallas SNB Bank of Dallas - Frisco 5300 Town and Country Blvd., Suite 100 Frisco, TX SNB Bank of Dallas - Preston Center 5950 Berkshire Lane, Suite 350 Dallas, TX San Antonio SNB Bank of San Antonio - Stone Oak 777 E. Sonterra Blvd., Suite 190 San Antonio, TX SNB Bank of San Antonio - Medical Hill 9324 Huebner Road San Antonio, TX Kansas - Anthony Branch 203 W Main Street Anthony, KS Harper Branch 1002 Central Street Harper, KS Mayfield Branch 102 N. Osborn Mayfield, KS Au.stin SNB Bank of Austin 3900 N. Capital of Texas Highway, Suite 100 Austin, TX Houston SNB Bank of Houston Loan Production Office Richmond Avenue, Suite 132 Houston, TX Tilden SNB McMullen Bank 205 Elm Street Tilden, TX Overland Park Branch Metcalf Avenue Overland Park, KS South Hutchinson Branch 524 N. Main Street South Hutchinson, KS Hutchinson Branch 100 E. 30th Avenue Hutchinson, KS Kansas Kansas City Loan Production Office Tomahawk Creek Parkway Suite 100 Leawood, KS East Wichita Branch 8415 E. 21st Street N., Suite 150 Wichita, KS West Wichita Branch W. 21st Street N. Wichita, KS Annual Meeting The 2010 Annual Meeting of Shareholders will be held on April 22, 2010 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, by writing: Kerby E. Crowell, CFO Southwest Bancorp, Inc. RO. Box 1988 Stillwater, OK or online at 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 Hert, Baker & Koemel 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 St. Chicago, IL Forward-Looking Statements The letter to shareholder.s 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 quauty, probable loan losses, and the amount and timing of loan payoffs; Uquidity, 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 othet 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, 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 its future results.

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