Southwest Securities, FSB

Dallas, TX · Cert 32460

FDIC · 8 branches

Q4 2014

$1.2BAssets

$628.0MLoans

$938.3MDeposits

$174.6MEquity

Loan mix

Deposit mix

NIM

Market Position · Dallas-Fort Worth-Arlington, TX · 2014 SOD (annual) · 0.5% share · #26 of 168 inst. · $1.0B of $206.1B

0.7% Dallas

0.1% Tarrant

6.3% Stephens

1.1% Johnson

Earnings: ROA of 0.26%, down 34 bps year over year; NIM at 2.89%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 0.08%.
Funding: loans stand at 66.93% of deposits as of Q4 2014.

Return on Assets (YTD, annualized)

0.26%-34 bps YoY

Net Interest Margin (YTD, annualized)

2.89%+3 bps YoY

Efficiency Ratio (YTD, annualized)

94.87%+9 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	YoY Δ	Trend
Earnings
Return on Assets	0.60%	0.32%	0.31%	0.32%	0.26%	-34 bps
Return on Equity	4.52%	2.38%	2.32%	2.37%	1.89%	-262 bps
Net Interest Margin	2.86%	2.69%	2.76%	2.79%	2.89%	+3 bps
Efficiency Ratio	94.78%	110.12%	101.31%	94.59%	94.87%	+9 bps
Non-Interest Burden	2.70%	2.94%	2.80%	2.64%	2.74%	+5 bps
Growth
Asset Growth (YoY)	-1.55%	-1.12%	-0.91%	-2.96%	-5.75%	-419 bps
Loan Growth (YoY)	-34.74%	-14.31%	0.22%	21.48%	16.80%	+5,153 bps
Deposit Growth (YoY)	-4.94%	-4.82%	0.68%	-1.76%	-5.70%	-76 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	-0.07%	-0.16%	-0.18%	-0.08%	-0.08%	-1 bps
Allowance / Loans	1.76%	1.43%	1.28%	1.16%	1.23%	-53 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	27.43%	27.37%	25.58%	25.62%	27.21%	-22 bps
Equity / Assets	13.22%	13.47%	13.82%	14.18%	14.65%	+142 bps
Liquidity & Funding
Loans / Deposits	54.04%	56.85%	62.19%	67.69%	66.93%	+1,289 bps
Liquid Assets / Assets	8.91%	5.96%	7.16%	7.94%	9.04%	+12 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a