Southwest Bancorp Inc. in Stillwater, Okla., said Tuesday that its third-quarter earnings fell 58% from a year earlier, to $2.3 million, or 16 cents a share, as a result of rising loan delinquencies and a contracting net interest margin.
The earnings were 13 cents below the average estimate of analysts polled by Thomson Reuters.
The $2.8 billion-asset Southwest, which operates primarily in Oklahoma, Kansas, and Texas, said its nonperforming loan ratio nearly doubled from a quarter earlier, to 2.62% of total loans as of Sept. 30.
The company also said that $61.6 million of its loans were nonaccruing, and more than half were real estate construction loans.
Total loans increased 26% from a year earlier, but net interest income declined by 2%, Southwest said. Its net interest margin shrank 86 basis points, to 3.39%.
Southwest's shares fell 10.7% from Monday's close, to $15.37.
