Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $20 million, or $0.31 per diluted share, with a return on average assets of 0.6% and return on average equity of 3.8% [32] - The consolidated net interest income decreased by 12% year-over-year, totaling $104 million, primarily due to higher yields on deposits and declining earning assets [38][42] - The allowance for credit losses increased by $11 million to $115 million, driven by specific reserves on two auto lending relationships [39][106] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $33 million of pretax income on $12.7 billion of assets, with average loans rising by $44 million, mainly from mortgage warehouse lending [33] - PrimeLending saw positive pretax results with higher origination volumes during the normal buying season, achieving a gain on sale to third parties' rate of 233 basis points, which was 12 basis points higher than in Q1 [35] - Hilltop Securities generated pretax income of $7 million on net revenues of $104 million, with public finance services experiencing a 3% increase in net revenues [36] Market Data and Key Metrics Changes - Average total deposits for the second quarter were approximately $10.4 billion, a decline of about $845 million, or 7%, compared to the same quarter in 2023 [18] - Non-interest income for the second quarter equated to $193 million, with mortgage revenues remaining stable despite modestly lower origination volumes [46] - The bank's net interest margin increased by 10 basis points from the first quarter to 3.1% [8] Company Strategy and Development Direction - The company is focused on balancing competitive positioning with long-term customer relationships while managing net interest income prudently [20] - Cost-cutting measures have continued to benefit the business, with non-variable compensation and segment operating costs declining by $11 million compared to the second quarter of 2023 [9] - The company anticipates challenges in profitability for PrimeLending as origination volumes follow normal seasonal trends through the end of the year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing uncertainties in the market regarding interest rates, inflation, and overall economic health [25] - The company expects loan growth to be challenged in the second half of the year as commercial clients remain cautious and new transactions require higher equity investments [64] - Management noted that the Texas economy remains strong relative to the national economy, but structural issues and cautiousness will continue to pressure overall loan growth [69] Other Important Information - The common equity Tier 1 capital ratio stands at 19.5%, and tangible book value per share increased from year-end 2023 by $0.28 to $28.63 [11] - The company returned $21 million to shareholders through dividends and share repurchases during the period [11] Q&A Session Summary Question: Can you talk about the shift in loan growth guidance? - Management indicated that while pipelines are up on a linked quarter basis, they are down year-on-year, and the current structures require higher equity investments before loan facilities are accessed [52][64] Question: What drove the decrease in non-owner occupied office portfolio ACL? - A significant credit that had not stabilized reached stabilization and exceeded overall covenant levels, allowing for an upgrade [82] Question: Can you provide color on the guidance for deposits? - Management noted that while non-interest-bearing deposits are expected to decline, core deposits have shown growth, and they anticipate continued growth in non-brokered, non-broker/dealer areas [86] Question: What is the outlook for gain on sale margins as rates potentially decrease? - Historically, as rates decrease, gain on sale margins would increase, but the current market dynamics may lead to a muted impact on refinance activity [91]

Hilltop Holdings (HTH) reported $296.96 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.9%. EPS of $0.31 for the same period compares to $0.28 a year ago. The reported revenue represents a surprise of +6.12% over the Zacks Consensus Estimate of $279.83 million. With the consensus EPS estimate being $0.24, the EPS surprise was +29.17%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

This quarterly report represents an earnings surprise of 29.17%. A quarter ago, it was expected that this insurance holding compnay would post earnings of $0.28 per share when it actually produced earnings of $0.42, delivering a surprise of 50%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Hilltop Holdings has underperformed the market so far this ye ...

Investor Relations Contact: Matt Dunn 214-525-4636 mdunn@hilltop.com Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on August 30, 2024, to all common stockholders of record as of the close of business on August 16, 2024. Additionally, during the second quarter of 2024, Hilltop paid $9.9 million to repurchase an aggregate of 320,000 shares of its common stock at an average price of $30.98 per share pursuant to the 2024 stock repurchase ...

Hilltop Holdings Inc.’s (HTH) poor asset quality, weak Mortgage Origination segment performance and elevated expense base are major headwinds. Nonetheless, a sound balance sheet, high rates and restructuring initiatives offer support to some extent. HTH’s deteriorating asset quality is a concern. The company witnessed a provision benefit in the first quarter of 2024 after a significant rise in provision for credit losses in 2023 and 2022. Amid the ongoing tough economic backdrop, provisions are anticipated ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-31987 6565 Hillcrest Avenue Dallas, TX 75205 (Address of principal executive offices) (Zip Code) (214) 855-2177 (Registrant's telephone number, including area co ...

The bank's diverse business was able to offset continued mortgage weakness.Texas lender Hilltop Holdings (HTH 3.82%) was able to offset continued weakness in the mortgage market with strong gains elsewhere, leading to an earnings beat for the first quarter, it reported Thursday. Investors are buying in, sending shares of Hilltop up about 5% as of noon ET Friday.Finding ways to offset mortgage weaknessHilltop earned $0.42 per share in the quarter, beating Wall Street's $0.25-per-share consensus estimate, des ...

Financial Data and Key Metrics Changes - Hilltop reported consolidated income attributable to common stockholders of approximately $28 million, equating to $0.42 per diluted share, with a return on average assets of 0.7% and return on average equity of 5.2% [124] - The allowance for credit losses decreased by $7.2 million, which includes $4.3 million of net charge-offs and a net $2.9 million release of the allowance, largely driven by improved economic scenarios [94] - Net interest income for the first quarter was $104 million, a decrease of $18 million or 15% compared to the prior year, primarily due to rising deposit costs [52] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $50 million of pre-tax income on $13.1 billion of assets, representing a return on average assets of 1.2% [8] - PrimeLending reported a pre-tax loss of $16.5 million for the period, negatively impacted by low housing inventory, escalating home prices, and higher mortgage rates [10] - Hilltop Securities generated pre-tax income of $19 million on net revenues of $170 million, marking a 12% increase in revenue over the same period last year, driven by the mortgage trading business [27] Market Data and Key Metrics Changes - Average total deposits were approximately $10.7 billion, declining by approximately $363 million or 3% versus the fourth quarter of 2023 [57] - The average interest-bearing deposit cost increased to 358 basis points as of March 31, up from 340 basis points at the end of the previous quarter [59] - The commercial lending market is experiencing a pullback due to a higher interest rate environment and increased equity requirements, which is expected to pressure loan growth in the near future [24] Company Strategy and Development Direction - The company aims to maintain a moderate risk profile while delivering long-term shareholder value through strategic initiatives and cost management efforts [23] - Hilltop plans to continue retaining originated mortgages on the balance sheet, with future retention driven by the return profile of held mortgages and commercial loan demand [67] - The company is focused on enhancing sales distribution capabilities while upholding strong culture and risk management practices [29] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic headwinds but expressed optimism about the potential for recovery in the mortgage business, citing pent-up demand for housing [97] - The company expects continued pressure on net interest income and net interest margin due to competitive deposit rates and the current economic environment [110] - Management highlighted that while the next few quarters may remain challenging, there are signs of optimism within the mortgage business [27] Other Important Information - Hilltop maintains a common equity Tier 1 capital ratio of 19.7% and a tangible book value per share of $28.44, reflecting a $0.09 increase from year-end 2023 [14] - The company returned $21 million to shareholders during the period, including $11 million in dividends and $10 million in share repurchases [14] - The company is experiencing a shift in the timing of the predicted economic recession, now expected to begin in Q1 2025 instead of Q1 2024 [2] Q&A Session Summary Question: Reserve release this quarter - Management explained that the reserve release was due to a shift in the timing of the predicted recession, which allowed for a $4.1 million release in allowance for credit losses [36][37] Question: Margin expectations - Management indicated that net interest margin is expected to be pressured in the coming quarters due to rising deposit costs, but they anticipate stabilization and potential improvement in the fourth quarter [110][112] Question: Mortgage business outlook - Management noted that there is a significant amount of pent-up demand for housing, and if mortgage rates decline below 6.5%, they expect increased activity in the mortgage market [97] Question: Non-interest-bearing deposits - Management expects a steady but modest movement of deposits into interest-bearing products, with continued pressure on non-interest-bearing deposits [89][91] Question: Share repurchase strategy - Management stated they are mindful of share repurchase opportunities and will operate within their authorization of around $75 million, evaluating market conditions [79]

Hilltop Holdings Inc. Preface Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop.com The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Hilltop Holdings does not undertake an obligation to, and disclaims any duty to, update any of the information herein. • PlainsCapital Bank generated $50.3 million in pre-tax income during Q1 2024 | ...

Hilltop Holdings (HTH) reported $285.24 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.4%. EPS of $0.42 for the same period compares to $0.40 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $275.39 million, representing a surprise of +3.58%. The company delivered an EPS surprise of +50.00%, with the consensus EPS estimate being $0.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...