Affiliate Transactions

12 Months Ended

Jun. 30, 2014

Affiliate Transactions [Abstract]

Affiliate Transactions

25.AFFILIATE TRANSACTIONS

Clients and correspondents of SWS have the option to invest in a savings account called Bank Insured Deposits at the Bank.  These funds are FDIC insured up to $250,000.  The funds are considered core deposits and are the primary funding source for the Bank.  The Bank’s total core deposits were $1,000,597,000 and $993,871,000 at June 30, 2014 and June 30, 2013, respectively.  At June 30, 2014 and June 30, 2013, clients of Southwest Securities had invested $873,136,000 and $878,434,000, respectively, in Bank Insured Deposits at the Bank.

In the ordinary course of business, the Bank has transactions, including borrowings and deposits, with its executive officers, directors and their affiliates.  It is the policy of the Bank that such transactions are on the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unaffiliated persons.  There were $3,245,000 at June 30, 2014 and $3,358,000 at June 30, 2013 of such borrowings outstanding.  The Bank recorded $197,000 and $203,000 of interest income on affiliate loans in fiscal years 2014 and 2013, respectively, and no interest income on affiliate loans in fiscal 2012.  Aggregate deposits from affiliates totaled approximately $1,097,000 and $1,664,000 at June 30, 2014 and 2013, respectively.