Shareholders' Equity

12 Months Ended

Dec. 31, 2012

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 13:  Shareholders’ Equity

On April 29, 2010, we closed a public offering of 4,600,000 shares of common stock, including 600,000 shares pursuant to the underwriter’s over-allotment option, at a price of $12.50 per share resulting in aggregate proceeds of $57.5 million.  The net proceeds of the offering were $54.0 million and were used to increase our working capital and for general corporate purposes, including investment of $25.0 million in our banking subsidiaries, Stillwater National and Bank of Kansas.

On December 5, 2008, we issued to the United States Department of the Treasury (the “Treasury Department”) 70,000 shares of Fixed Rate Cumulative Preferred Stock, Series B, par value $1,000 per share (the “Series B Preferred Stock”), having a liquidation amount per share equal to $1,000, for a total price of $70.0 million.  The Series B Preferred Stock paid cumulative dividends at a rate of 5% per year for the first 5 years and thereafter at a rate of 9% per year. 

As part of its purchase of the Series B Preferred Stock, the Treasury Department received a warrant to purchase 703,753 shares of common stock at an initial per share exercise price of $14.92.  The warrant expires in ten years from the issuance date.  Pursuant to the Securities Purchase Agreement, the Treasury Department has agreed not to exercise voting power with respect to any shares of common stock issued upon exercise of the warrant.

We allocated $66.3 million to the Series B Preferred Stock and $3.7 million to the warrant based on their relative fair values at the issue date.  The amount allocated to the warrant is accreted over the estimated life of the Series B Preferred Stock using five years.  Such accretion for the years ended December 31, 2012 and 2011 were $1.5 million and $0.7 million, respectively.

In July 2011, we determined to defer payment of dividends on our Series B Preferred Securities issued under the U.S. Treasury Department’s Capital Purchase Program, effective for the dividend payments, beginning August 15, 2011. 

In August 2012, we repurchased from the Treasury Department all 70,000 outstanding shares of our Series B Preferred Stock. As a result of the repurchase, we took a one-time, non-cash equity charge of approximately $1.2 million to reflect accelerated accretion of the remaining discount on the Series B Preferred.

We have reserved for issuance 150,000 shares of common stock pursuant to the terms of the Employee Stock Purchase Plan.  The Employee Stock Purchase Plan allows our employees to acquire additional common shares through payroll deductions.  From July 1999 to August 2009, shares issued out of this plan came from treasury shares, subsequent shares issued came from the reserved shares.  As of December 31, 2012, 53,961 new shares had been issuedand 52,500 treasury shares had been reissued under this plan.

We have reserved 1,960,000 shares of common stock pursuant to the terms of the 1999 Plan, which expired during 2008.  The 1999 Plan provided selected key employees with the opportunity to acquire common stock.  As of December 31, 2012, 275,255 new shares had been issued and 1,622,385 treasury shares had been reissued underthe 1999 Plan.  Options issued under the 1999 plan will continue in effect and will be subject to the requirements of the plan, but no new options will be granted under this plan.

We have reserved 800,000 shares of common stock pursuant to the terms of the 2008 Stock Plan.  The 2008 Stock Plan provides selected key employees with the opportunity to acquire common stock.  As of December 31, 2012, 122,881 new shares had been issued and 25,725 treasury shares had been reissued by the 2008 Stock Plan.