Southwest Bancorp, Inc., parent of Stillwater National Bank & Trust Co., announced this month that it had sold over $300 million in nonperforming loans, potential problem loans and other real estate assets. According to an American Banker article, roughly $170 million of the loans are nonperforming; the sale to SW Loan Portfolio Holdings LP and its affiliates will produce a pre-tax loss of $101 million, which it will record in the fourth quarter. The holding company was organized in 1981; on Sept. 30, 2011, it had total assets of $2.6 billion, deposits of $2.0 billion and shareholders' equity of $367.0 million reported Tulsa World.
Rick Green, President and Chief Executive Officer at Southwest, said, "These sales immediately and substantially reduce our nonperforming assets and potential problem loans. We believe this action is a major step toward achieving our goals of reducing problem assets, returning to sustained profitability, resuming dividends, and producing reliable and attractive returns for our shareholders. Southwest's Board of Directors decided to enter these agreements after careful consideration of the potential costs and benefits to Southwest and its shareholders and consultation with financial and legal advisors and management. This included consideration of the estimated costs and benefits of continuing the workout process for these assets over time versus the estimated costs and benefits of their immediate resolution by sale."
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