SWS Group Inc., the parent company of Dallas-based independent broker-dealer SWS Financial Services, said Thursday that its chief executive has resigned to pursue other interests.
Donald W. Hultgren, 53, resigned Wednesday as president, CEO and a member of the board, the company said.
Mr. Hultgren had been with SWS Group for 10 years, taking over as chief executive in August 2002. Before joining SWS, Mr. Hultgren held several senior-level posts at
Raymond James & Associates, including senior managing director of equity research.
SWS spokesman Jim Bowman was unable to offer any additional details about Mr. Hultgren's exit, but confirmed that he left the company immediately.
James H. Ross, 60, president and CEO of Southwest Securities Inc. — and who also oversees SWS Financial — was appointed to the board and will serve as interim CEO of the parent company until a permanent replacement is named. He will retain 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.
Mr. Hultgren's departure follows a disappointing performance by SWS in its most recent quarter. The company in April reported a third-quarter loss of $11.5 million, a loss of 35 cents per share. In contrast, the company generated net income of nearly $4 million, or 15 cents per share, in the same period of 2009. Analysts surveyed by Thomson Reuters had expected a profit of 20 cents per share.
The company's results were dragged down by deterioration in the commercial real estate loan portfolio at its subsidiary bank, Southwest Securities. That led SWS to increase its loan loss provision to $25 million. Revenue for the quarter slid to $83 million from $94.7 million.
SWS Group plans to announce fourth-quarter results on Aug. 30. Analysts expect a profit of 12 cents per share for the quarter.
Associated Press contributed to this article
