Schedule I-Condensed Financial Information Of Registrant (Tables)

12 Months Ended

Jun. 30, 2013

Schedule I - Condensed Statements of Financial Condition



	2013	2012
Assets
Restricted cash and cash equivalents	$ 30,047	$ 30,044
Investment in subsidiaries, at equity	408,954	392,330
Securities available for sale	146	3,782
Deferred compensation asset	17,593	15,912
Loan receivable from Southwest Securities, Inc.	-	20,000
Deferred tax asset	(14,971)	7,803
Other assets	3,273	4,566
	$ 445,042	$ 474,437

Liabilities and Stockholders’ Equity
Long-term debt	$ 83,102	$ 79,076
Stock purchase warrants (“warrants”)	24,197	27,810
Other liabilities	22,457	11,849
Stockholders’ equity	315,286	355,702
	$ 445,042	$ 474,437

Schedule I - Condensed Statements Of Comprehensive Loss And Stockholders'



	2013	2012	2011
Revenue:
Net gains (losses) on principal transactions	$ 3,719	$ (12)	$ 75
Interest revenue	212	225	-
Other revenue	474	(785)	1,253
	4,405	(572)	1,328
Expenses:
Other expense	21,572	19,115	8,690

Other gains (losses):
Unrealized gain (loss) on warrants valuation	3,613	(3,674)	-

Loss before income tax expense (benefit) and equity in earnings (loss) of subsidiaries	(13,554)	(23,361)	(7,362)
Income tax expense (benefit)	24,787	(7,794)	(1,919)
Loss before equity in earnings (loss) of subsidiaries	(38,341)	(15,567)	(5,443)
Equity (loss) in earnings of subsidiaries	4,896	10,838	(17,760)
Net loss	(33,445)	(4,729)	(23,203)
Other comprehensive income (loss):
Net (losses) gains recognized in other comprehensive income of subsidiary, net of tax
of $(3,378) in 2013; $449 in 2012 on available for sale securities	(6,272)	833	-
Realized gain on sale of securities available for sale, net of tax of $(1,277)	(2,373)	-	-
Net gains recognized in other comprehensive income, net of tax of $294 in 2013;
$615 in 2012 and $253 in 2011 on available for sale securities	566	1,147	461
Net (losses) gains recognized in other comprehensive income	(8,079)	1,980	461

Comprehensive loss	(41,524)	(2,749)	(22,742)

Stockholders’ equity at beginning of year	355,702	357,469	383,394
Payment of cash dividends on common stock – registrant	-	-	(3,877)
Restricted stock plan	1,033	1,093	1,073
Shortfall for taxes on vesting of restricted stock	-	(62)	(351)
Deferred compensation plan	75	(49)	(28)
Stockholders’ equity at end of year	$ 315,286	$ 355,702	$ 357,469

Schedule I - Condensed Statements of Cash Flows



	2013	2012	2011
Cash flows from operating activities:
Net loss	$ (33,445)	$ (4,729)	$ (23,203)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount on long-term debt	4,026	3,212	-
Amortization of deferred debt issuance costs	492	451	-
(Decrease) increase in fair value of warrants	(3,613)	3,674	-
Deferred income tax (benefit) expense	(5,178)	(1,584)	377
Allowance for deferred tax asset	29,998	28	844
Deferred compensation for deferred compensation plan and restricted stock plan	(777)	1,516	3,172
Gain on sale of available for sale and investment securities	(3,550)	-	-
Equity in undistributed (loss) earnings of subsidiaries	(22,956)	(39,436)	18,899
Equity in losses of unconsolidated ventures	640	620	180
Dividend received on investments	(3)	(43)	-
Shortfall for taxes on vesting of restricted stock	-	62	351
Change in operating assets and liabilities:
(Increase) decrease in securities owned	(169)	12	(76)
Increase in other assets	(2,792)	(772)	(5,292)
Increase (decrease) in other liabilities	11,599	(695)	(9,978)
Net cash used in operating activities	(25,728)	(37,684)	(14,726)

Cash flows from investing activities:
Payments on notes and other accounts/loans with subsidiaries	-	(50,000)	-
Repayments on notes and other accounts with subsidiaries	20,768	17,766	18,976
Cash received from investments	341	-	-
Proceeds from the sale of securities available for sale	4,464	-	-
Investment of proceeds received from Hilltop Holdings, Inc., Oak Hill Capital
Partners III, L.P. and Oak Hill Capital Management Partners III, L.P. in
restricted fund	-	(30,000)	-
Net cash provided by (used in) investing activities	25,573	(62,234)	18,976

Cash flows from financing activities:
Payment of cash dividends on common stock	-	-	(3,904)
Shortfall for taxes on vesting of restricted stock	-	(62)	(351)
Proceeds related to the deferred compensation plan	276	309	444
Purchase of treasury stock related to deferred compensation plan	(121)	(329)	(439)
Cash proceeds received from Hilltop Holdings, Inc., Oak Hill Capital
Partners III, L.P. and Oak Hill Capital Management Partners III, L.P.	-	100,000	-
Net cash provided by (used in) financing activities	155	99,918	(4,250)
Net change in cash	-	-	-
Cash at beginning of year	-	-	-
Cash at end of year	$ -	$ -	$ -