Southwest Bancorp reports profit
BY LAURIE WINSLOW World Staff Writer
Thursday, January 24, 2013
1/24/13 at 4:23 AM
Results have turned around at Southwest Bancorp Inc., which Wednesday reported profits for the fourth quarter and full year compared with losses in 2011.
For 2012, the parent of Stillwater National Bank and Trust Co. and Bank of Kansas reported net income available to common shareholders of $12.4 million, or 64 cents per diluted share, compared with a net loss of $72.5 million, or $3.73 per share, for 2011.
The bank company said its fourth-quarter net income was $1.0 million, or 5 cents per diluted share, compared with a net loss of $59.3 million, or $3.05 per share, for the 2011 fourth quarter.
"The company returned to profitability in 2012. Obviously, the prior couple of years were pretty difficult, particularly 2011 with the bulk asset sale," said Mark Funke, president and CEO. "The board made some very bold steps to get the company righted."
Those steps cleared up regulatory issues and restored the paying of dividends to shareholders.
Southwest has a strong balance sheet, is well capitalized, has good liquidity and is positioned to move in the right direction in 2013, Funke said.
In August, the company announced that it had repaid the federal government for capital obtained in 2008 under the Troubled Assets Relief Program, which bailed out banks burdened by that year's financial crisis. Southwest completed the repurchase of all $70 million of its preferred securities that it sold to the Treasury Department in December 2008.
The Series B preferred was issued under the Treasury's Capital Purchase Program.
A restructuring of the management team also has been positive, said Funke, who became president and CEO in October after serving as the market president for Bank of Oklahoma-Oklahoma City. Among other management changes, Joe Shockley Jr., who previously was executive vice president and chief financial officer at BancFirst Corp., became Southwest's CFO in December.
"While income for the fourth quarter was less than anticipated, we are aggressively identifying potential problem loans and assets and establishing appropriate reserves and values," Funke said, additionally, in written comments. "For the year, common shareholders' equity increased to $246.1 million, an increase of 5.5 percent."
Southwest reported fourth-quarter net interest income of $17.3 million, compared with $21.9 million in the 2011 fourth quarter. It also reported noninterest income for the quarter of $4.9 million, up from $3.6 million a year earlier at the same time.
The provision for loan losses was $3.1 million for the quarter compared with $78.3 million for the same period a year earlier.
Nonperforming assets totaled $49.7 for the fourth quarter, up from $41.6 million in the third quarter but below the $33.4 million recorded a year earlier.
Nonperforming loans, a component of nonperforming assets, were $38.4 million for the quarter, up from $13.5 million a year earlier at the same time.
Total potential problem loans were $94.4 million, down from $133.0 million a year earlier.
Original Print Headline: Bank reports turnaround
Laurie Winslow 918-581-8466
Mark Funke: Southwest is positioned to move in the right direction in 2013, the CEO said.