Investment and financial services company SWS Group Inc. said Wednesday that Kenneth R. Hanks resigned as its chief financial officer and treasurer after eight years on the job.
Stacy M. Hodges, chief financial officer since 1997 of Southwest Securities Inc., the company's principal broker-dealer subsidiary, was named interim CFO. Ms. Hodges began her career with SWS Group as controller in 1994 and now serves as executive vice president and principal accounting officer.
Mr. Hanks exit is the latest shakeup at the Dallas-based company. In August, Donald W. Hultgren, resigned as president, CEO and director of SWS Group. Mr. Hultgren had been with the company for ten years, taking over as chief executive in 2002. Before joining SWS, Mr. Hultgren held several senior-level posts at
Raymond James & Associates, including senior managing director of equity research.
At the time of Mr. Hultgren's departure, SWS spokesman Jim Bowman was unable to offer any specific details about the exit, but confirmed that the CEO left the company immediately.
James H. Ross, president and CEO of the brokerage subsidiary, became interim CEO of parent SWS. Mr Ross, president and CEO of Southwest Securities — and who also oversees independent broker-dealer SWS Financial — was also appointed to the board. He retained his role as the top officer of Southwest Securities.
Mr. Ross, in total, oversees more than 500 reps in SWS's combined retail brokerage units. Three-hundred of those reps are part of SWS's independent brokerage entity, which ranked as the 59th largest in the 2009 InvestmentNews independent broker-dealer rankings.
It's been a rough twelve months for the parent company, however. SWS in August reported a 2010 fiscal year net loss of $2.9 million, on net revenues of $367 million. In 2009, the company recorded net income of $23.6 million on net revenues of $381.6 million.
“Our brokerage segments performed well and all showed improved results from the third quarter in spite of very difficult economic conditions," Mr. Ross noted when the company issued its 10-K. He blamed the losses on SWS' banking segment, which has been hit hard by declines in commercial real estate values.
[The Associated Press contributed to this article]
