This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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