Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

Southwest Securities, FSB is a premier financial services provider. With highly personalized and professional service, along with broad lending expertise, our goal is to help our customers grow and prosper.

As we maintain our position on the leading edge of a rapidly changing industry, you will find ongoing improvements that enhance our ability to better serve the commercial, SBA and real estate sectors that are our areas of lending expertise. We’re constantly working to attract the best talent to our organization, thus attracting clients who value personal relationships and a banker who is there for the long term. We are strong, stable and pride ourselves on delivering excellent service that far exceeds your expectations.

Biographical Information

Jerry Pavlas
President, Chief Executive Officer
Southwest Securities, FSB

Jerry Pavlas was appointed Chief Executive Officer of Southwest Securities, FSB in 2011 and has served as the Bank's Chief Operating Officer since 2008.

A veteran banker who has served at the executive levels of bank management for more than 30 years, Mr. Pavlas is experienced in banking, commercial finance and specialty lending. Before joining Southwest Securities, FSB, he served as Chief Executive Officer of Presidential Finance Company in Atlanta, Georgia, where his principal strength was overseeing growth while managing credit risk.

As President and Chief Operating Officer for First State Bank of Texas he oversaw a successful four-year growth and acquisition strategy. Earlier in his career, Mr. Pavlas led the turnaround of Hibernia National Bank as its Chief Credit Officer. He was an executive banker with Hibernia Corporation from 1990 to 1998 and also launched Hibernia's specialized commercial lending unit. He was Executive Vice President and Chief Credit Officer for BancTexas Group when that company was acquired by Hibernia in 1990.

Originally from Cleveland, Ohio, where he earned his B.A. Degree in Accounting at Cleveland State University, Mr. Pavlas began his career at Huntington Bank in Cleveland as a Budget Financial Analyst in 1971. He advanced through positions of increasing responsibility and became Vice President of the Special Asset Division in 1979. He left Huntington Bank in 1983 to join Banc Texas in Dallas.

Mr. Pavlas has served as a board member of the Texas Bankers Association, chaired the Advisory Board for the University of North Texas School of Community Service, served as board member and Pacesetter Committee Chairman for the United Way of Denton County, and has been a keynote speaker for the Bank Administration Institute Credit Conference.

History

Southwest Securities, FSB was established in 1986 and became a wholly-owned subsidiary of SWS Group, Inc. in 2000.  Based in Dallas, Texas, Southwest Securities, FSB conducts business nationwide and is involved in all areas of Commercial and Consumer Banking.

Together, SWS Group, Inc. and Southwest Securities, FSB constitute the largest broker/bank in the Southwest United States.  This model yields a genuine competitive advantage in the marketplace and, most importantly, yields significant benefits to our customers.  The result is what we call the Southwest Way of Banking.

With assets exceeding $1.5 billion and a management team assembled pursuant to our model, Southwest Securities, FSB is an established premier Regional Bank and a true leader in our industry.  We invite you to become a part of our story.

Relationships!

That's what we're about at Southwest Securities, FSB.  Whether you are an entrepreneur, a growing company, a mature company, or a consumer, we want to be your preferred banking partner. 

Here at Southwest Securities, FSB, we strive to maximize our relationships with our customers, our employees, our regulators and our stockholders.  Our vision is simple.  We strive to be:

• The best place to bank
• The best place to work
• The best performing bank of any bank our size

Being the best place to bank requires serving our customers on their terms in the manner that best suits each.  Being the best place to work requires recognizing that it is our employees that make the difference to our customers.  Achieving our goal of being the best performing bank of any bank our size requires never growing too fast, never growing beyond our means, and never forgetting who provides us with the opportunity to grow - our customers!

In other words, we value continuous process improvement, sustainable growth, and mutually beneficial relationships that stand the test of time.  That's the Southwest Way of Banking.  We hope our way is consistent with your way.  If it is, please come by and see us ... or better yet, call us and we'll come see you!

Our Management Team

At Southwest Securities, FSB, we have invested heavily in our future beginning with our human capital.  We believe that we have assembled one of the strongest management teams in the region and invite you to get to know us on a personal level.