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Southwest Bancorp slashes quarterly dividend

The Associated Press

STILLWATER, Okla. (AP) — Southwest Bancorp Inc. said Friday it would slash its quarterly dividend by 75 percent to prepare for higher fees expected to be imposed by the Federal Deposit Insurance Corp. to replenish its funds.

The parent of Stillwater National Bank and Trust Company and Bank of Kansas said its first-quarter dividend would be 2.38 cents per share, down from 9.5 cents each quarter in 2008.

It is payable April 1 to shareholders of record as of March 17.

The company said the move accounts for a Feb. 27 decision by the FDIC that it would raise 20 cents for every $100 in insured deposits from banks on Sept. 30. That compares with an average premium of 6.3 cents paid by banks and thrifts last year.

Southwest Bancorp Chief Executive Rick Green said the fee hike would reduce the company's net profit by $3 million after taxes.

On Thursday, however, FDIC Chairman Sheila Bair agreed to halve the fee to 10 cents per $100.

It was unclear if word of that change was considered by Southwest Bancorp. before its announcement Friday. Green said the company would monitor the FDIC's plans carefully and adjust its dividend if necessary each quarter.