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Investments
12 Months Ended
Jun. 30, 2014
Investments [Abstract]  
Investments

10.INVESTMENTS

SWS has interests in four investment partnerships that it accounts for under the equity method, which approximates fair value as described in Note 1(x), Fair Value of Financial Instruments.    One is a limited partnership venture capital fund in which SWS has invested $5,000,000.  Based on a review of the fair value of this limited partnership interest, SWS determined that its share of the investments made by the limited partnership should be valued at $530,000 as of June  30, 2014 and $513,000 as of June 30, 2013.  SWS recorded net gains of $17,000 on this investment for fiscal year 2014 and net losses of $640,000 and $620,000 on this investment for fiscal years 2013 and 2012, respectively.  In fiscal 2013, SWS received cash distributions of $341,000 from this investment.  The limited partnership venture capital fund has entered into an agreement with the Small Business Administration (“SBA”) for a self-liquidation plan.

 

Two investments are limited partnership equity funds to which the Bank has commitments of $3,000,000 and $2,000,000, respectively, and are considered cost effective ways of meeting its obligations under the CRA.  As of June  30,  2014 and June 30, 2013, the Bank’s recorded investments in these partnerships were $3,046,000 and $3,782,000, respectively.  During the fiscal years 2014, 2013 and 2012, the Bank recorded a  net loss of $736,000 and net gains of $882,000 and $1,192,000, respectively, related to these investments.  During the fiscal year 2014, the Bank received no cash distributions and during fiscal years 2013 and 2012, the Bank received distributions of $2,400,000 and $517,000, respectively, from these investments. 

 

On January 28, 2009, the Bank executed a $4,500,000 loan agreement with one of the partnerships.  The loan was amended on November 16, 2009 to increase the note amount to $5,000,000.  The loan was renewed on September 26, 2012 with a maturity date of January 2, 2013At December 31, 2012, the loan was paid in full.  Prior to December 31, 2012, for the six-months ended December 31, 2012 and twelve-months ended June 30, 2012, the Bank earned approximately $111,000 and $243,000 in interest income, respectively.  

 

On December 31, 2012, the Bank executed a new $5,000,000 loan agreement with one of the partnerships with a maturity date of December 31, 2015.  At June  30, 2014 and 2013, the outstanding balance was $3,848,000 and $2,549,000, respectively.  The loan bears interest at a rate of 4.25% per annum and interest is due monthly.  The Bank earned approximately $125,000 and $55,000 in interest income for the fiscal year ended June 30, 2014 and the six-months ended June 30, 2013, respectively.

 

In April 2012, the Bank acquired an interest in a private investment fund to obtain additional credit for its obligations under the CRA.  The Bank has committed to invest $3,000,000 in the fund and to date has contributed $480,000 in the fund, including $300,000 invested pursuant to capital calls in November 2013 and March 2014During the fiscal years 2014 and 2013, the Bank recorded net losses of $116,000 and $118,000, respectively, related to this investment.    The recorded investment in this fund was $232,000 and $62,000 at June  30, 2014 and June 30, 2013, respectively.  During fiscal year 2014, the Bank received a cash distribution of $14,000 from this investment.  During fiscal year 2013, the Bank received no cash distribution from this investment.