This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

10 Community Bank M&A Targets, Revisited

7. Southwest Bancorp

Shares of Southwest Bancorp (OKSB)Stillwater, Okla. closed at $4.43 Wednesday, for a year-to-date decline of 64%.

The company had $2.7 billion in total assets as of June 30, and owes $70 million in TARP money.

Stephens, Inc. analyst Matt Olney in January listed Southwest Bancorp as "a small takeout target in Oklahoma," adding that he didn't think the company had "plans to sell in the near term but they were in an attractive area so they would get offers." He also said that the Texas market is "the most attractive part of the country" for acquirers.

The company reported a second-quarter net loss to common shareholders of $4 million, or 21 cents a share, compared to earnings of $3.4 million, or 19 cents a share, during the second quarter of 2010.

The second-quarter loss sprang from a $20.1 million provision for loan losses, which Southwest Bancorp's CEO Rick Green said was taken "as a result of new appraisals received on collateral dependent commercial real estate loans from states outside of our home markets of Oklahoma, Texas, and Kansas."

Nonperforming assets totaled $190.1 million, or 7.15% of total assets as of June 30, increasing from 4.64% a year earlier. The second-quarter net charge-off ratio was 4.76%, and reserves covered 2.53% of portfolio loans as of June 30.

Southwest Bancorp's regulatory capital ratios remained strong, with a Tier 1 leverage ratio of 16.25% and a total risk-based capital ratio of 20.20% as of June 30, although the company in July "determined to defer future payments of interest on our debentures and dividends on related trust preferred securities," and also deferred dividend payments on the preferred shares held by the U.S. Treasury for the TARP assistance.

The shares trade for less than a third of tangible book value, according to SNL.

While Southwest Bancorp clearly has its work cut out for it as the company works through a late-cycle decline in credit quality, and the consensus among analysts polled by FactSet is for the company to lose nine cents a share in 2012, some analysts think the market has over-reacted.

The four analysts covering Southwest Bancorp are evenly split between buy ratings and neutral ratings.

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.39 -0.84%
BXS $23.22 -0.17%
COF $78.82 -0.48%
FMBI $17.37 -0.17%
SBCF $14.27 -0.35%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs