The parent of Stillwater National Bank & Trust Co. plans to participate in the U.S. Treasury’s voluntary Capital Purchase Program aimed at building capital in U.S. financial institutions.
The Treasury Department last month announced the program to encourage U.S. financial institutions to build capital to increase the flow of financing to businesses and consumers, as well as to boost the U.S. economy. Under the program, the federal agency will purchase up to $250 billion of senior preferred shares.
Southwest Bancorp plans to sell up to $70 million in preferred shares and related warrants for the purchase of $10.5 million of its common stock under the program.
How will it help?
Chief Executive Rick Green said the move should help the bank holding company "achieve our strategic goal of building long-term shareholder value during these uncertain times.”
"We expect that the additional long-term capital funds now available through the Capital Purchase Program, along with the funds we received from our $34.5 million sale of trust preferred securities in July, will help us take better advantage of opportunities for prudent loan growth while continuing to maintain appropriate capitalization,” Green said in a statement.
Goal is year’s end
Southwest exceeds all applicable regulatory capital requirements and each of its banking subsidiaries meets the criteria for regulatory classification as being well-capitalized, Green said.
Southwest Bancorp expects to issue the preferred shares and warrants under the program by year’s end, the company said.