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Southwestern Financial Corporation Employee Stock Ownership Plan


Plan Information

  • Plan Year01/01/2018 — 12/31/2018
  • Date of Plan01/01/1994
  • Net Assets as of 12/31/2018 $60,051,833
  • Plan Number3
  • Plan Type Single Employer
  • Is the plan collectively bargained? No
  • Did the plan file for an extension of time or the DFVC Program?Yes
  • Plan Funding ArrangementInsurance Trust
  • Plan Benefit Arrangement Trust

Participant Information as of 12/31/2018

  • Active (Eligible) Participants148
  • Retired or separated participants receiving benefits9
  • Other retired or separated participants entitled to future benefits18
  • Subtotal175
  • Deceased participants whose beneficiaries are receiving or are entitled to receive benefits1
  • Total176
  • Total number of participants as of 01/01/2018178
  • Number of participants with account balances173
  • Number of participants that terminated employment during the plan year with accrued benefits that were less than 100% vested10


  • Total Benefit Payments$0
  • Corrective Distributions$0
  • Administrative Service Providers$0
  • Other Expenses$0
  • Total Expenses$0
  • Total Transfers$0

Sponsor Information

  • Address1835 S. Extension Rd.
  • CityMESA
  • StateAZ
  • Zip85210
  • Telephone(480) 730-4920
  • EIN86-0224638
  • Industry Code524210
  • Named AdministratorBrad Rucker

Audit Information

  • Audit StatusAudited
  • AuditorHenry & Horne LLP
  • Auditor EIN86-0133881
  • Audit Opinion Disclaimer
  • Audit TypeLimited Scope Audit

Benefits Provided Under the Plan

Code Benefit Description
2I Stock bonus A stock bonus plan is a type of profit-sharing by which a corporation uses its own stock to make contributions and distributions.
2P Leveraged ESOP An Employee Stock Ownership Plan (ESOP) that acquires employer securities with borrowed money or other debt-financing techniques.
2Q S Corporation ESOP The employer maintaining this Employee Stock Ownership Plan (ESOP) is an S Corporation.
3I Employer Securities Limitations Plan requiring that all or part of employer contributions be invested and held, at least for a limited period, in employer securities.

Questions and Answers

Question Answer Amount
During the plan year did the employer fail to transmit to the plan any participant contributions within the time period described in 29 CFT 2510.3-102? No
Were any loans by the plan or fixed income obligations due the plan in default as of the close of plan year or classified during the year as uncollectible? Disregard participant loans secured by participant's account balance. No
Were any leases to which the plan was a party in default or classified during the year as uncollectible? No
Were there any nonexempt transactions with any party-in-interest? No
Was this plan covered by a fidelity bond? Yes $1,000,000
Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty? No
Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser? No
Did the plan receive any noncash contributions whose value was neither readily determinable on an established market nor set by an independent third party appraiser? No
Did the plan have assets held for investment? Yes
Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? No
Were all the plan assets either distributed to participants or beneficiaries, transferred to another plan, or brought under the control of the PBGC? No
Has the plan failed to provide any benefit when due under the plan? No
If this is an individual account plan, was there a blackout period? No
If there was a blackout period, have you either provided the required notice or one of the exceptions to providing the notice applied under 29 CFR 2520.101-3? No


Income and Expense Statement

Income $12,326,878
Contributions $849,059
Cash Contributions $849,059
Cash from Employers $849,059
Cash from Participants $0
Others (including rollovers) $0
Noncash Contributions $0
Total Earnings on Investments $11,182,918
Total Interest $0
Interest-Bearing Cash $0
U.S. Government Securities $0
Corporate Debt Instruments $0
Loans (other than to participants) $0
Participant Loans $0
Interest from Other Investments $0
Total Dividends $3,732,720
Preferred Stock $0
Common Stock $3,732,720
Rents $0
Net gain (loss) on sale of assets $0
Aggregate Proceeds $0
Aggregate Carrying Amount $0
Total Unrealized Appreciation (depreciation) of assets $7,450,198
Real Estate $0
Other $7,450,198
Net investment gain (loss) from common/collective trusts $0
Net investment gain (loss) from pooled separate accounts $0
Net investment gain (loss) from master trust investment accounts $0
Net investment gain (loss) from 103-12 investment entities $0
Net investment gain (loss) from registered investment companies $0
Other Income $294,901
Expenses $3,513,358
Total Benefit Payments $3,468,668
Directly to participants or beneficiaries, including direct rollovers $3,468,668
To insurance carriers for the provision of benefits $0
Other Benefit Payment Fees $0
Corrective Distributions $0
Certain deemed distributions of participant loans $0
Interest expense $44,690
Total Administrative Expenses $0
Professional Fees $0
Contract Administrator Fees $0
Investment Advisory and management fees $0
Other Administrative Fees $0
Net Income $8,813,520
Transfers of Assets to this Plan $0
Transfers of Assets from this Plan $0

Asset and Liability Statement

12/31/2018 12/31/2017 Change YOY
Total Assets $62,974,084 $57,988,371 8.60%
Total noninterest-bearing cash $0 $0 0.0%
Receivables $849,059 $810,700 4.73%
Employer Contributions $849,059 $810,700 4.73%
Participant Contributions $0 $0 0.0%
Other Contributions $0 $0 0.0%
General Investments $1,799,876 $2,755,754 -34.69%
Interest-bearing cash $1,799,876 $2,755,754 -34.69%
U.S. Government Securities $0 $0 0.0%
Corporate Debt Instruments $0 $0 0.0%
Preferred $0 $0 0.0%
All Other $0 $0 0.0%
Corporate Stocks $0 $0 0.0%
Preferred $0 $0 0.0%
Common $0 $0 0.0%
Partnership/joint venture interests $0 $0 0.0%
Real estate (other than employer real property) $0 $0 0.0%
Loans (other than to participants) $0 $0 0.0%
Participants Loans $0 $0 0.0%
Value of interest in common/collective trusts $0 $0 0.0%
Value of interest in pooled separate accounts $0 $0 0.0%
Value of interest in master trust investment accounts $0 $0 0.0%
Value of interest in 103-12 investment entities $0 $0 0.0%
Value of interest in registered investment companies $0 $0 0.0%
Value of funds held in insurance co. general account $13,440,673 $14,987,638 -10.32%
Other Investments $0 $0 0.0%
Employer-related Investments $46,884,476 $39,434,279 18.89%
Employer Securities $46,884,476 $39,434,279 18.89%
Employer Real Property $0 $0 0.0%
Buildings and other property used in plan operation $0 $0 0.0%
Total Liabilities $2,922,251 $6,750,058 -56.71%
Benefit Claims Payable (1) $0 $2,916,619 -100.00%
Operating Payables (1) $0 $429,776 -100.00%
Acquisition Indebtedness (1) $2,922,251 $3,403,663 -14.14%
Other liabilities (1) $0 $0 0.0%
Net Assets $60,051,833 $51,238,313 17.20%

Service Providers

Persons Receiving Only Eligible Indirect Compensation

There is no information on eligible indirect compensation for this plan.

Other Service Providers Receiving Direct or Indirect Compensation

There are no service providers listed for this plan.

Indirect Compensation

There are no service providers with indirect compensation listed for this plan.

Service Providers Who Fail or Refuse to Provide Information

There are no service providers who failed or refused to provide information.

Termination Information on Accountants and Enrolled Actuaries

There is no termination information for this plan.



No investments information available for this plan.

Insurance Information

Insurance Information

Insurance Carrier Summary Persons Covered
EIN 71-0294708
Industry Code 86509
Contract Number ZH1736
Contract Year 01/01/2018 — 12/31/2018
Value in General Account at Year End $0
Value in Separate Accounts at Year End $0
Insurance Fees and Commissions $6,980
Persons Receiving Commissions and Fees
Agent/Broker Organization Code Commissions Paid Fees Paid Purpose of Fees Paid
Financial Focus Retirement Plan Ser 2705 S Alma School Rd Ste 2 Chandler, AZ 85286 Third Party Administrator $0 $6,980 SERVICE PROGRAM FEES
Allocated Funds
Type of Contract Unspecified
Basis of premium rates
Premiums paid to carrier $0
Premiums due but unpaid at the end of the year $0
If the carrier, service, or other organization incurred any specific costs in connection with the acquisition or retention of the contract or policy, enter amount $0
Specify the nature of the costs
Unallocated Funds
Type of Contract Unspecified
Balance at the end of the previous year $14,987,638
Additions $4,838,322
Contributions Deposited during the year $4,543,417
Dividends and credits $0
Interest credited during the year $294,905
Transferred from separate account $0
Other $0
Total of Balance and Additions $19,825,960
Deductions $6,385,286
Disbursed from fund to pay benefits or purchase annuities during the year $6,385,286
Administration charge made by carrier $0
Transferred to Separate Account $0
Other $0
Balance at the end of the current year $13,440,674