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Hilltop Holdings(HTH) - 2024 Q1 - Quarterly Report
2024-04-22 21:07
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 ...
Why Hilltop Holdings Stock Is Up Today
The Motley Fool· 2024-04-19 17:05
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 ...
Hilltop Holdings(HTH) - 2024 Q1 - Earnings Call Presentation
2024-04-19 12:56
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 | ...
Compared to Estimates, Hilltop Holdings (HTH) Q1 Earnings: A Look at Key Metrics
Zacks Investment Research· 2024-04-18 23:31
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 - ...
Hilltop Holdings (HTH) Beats Q1 Earnings and Revenue Estimates
Zacks Investment Research· 2024-04-18 22:56
Hilltop Holdings (HTH) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this insurance holding compnay would post earnings of $0.40 per share when it actually produced earnings of $0.44, delivering a surprise of 10%.Over the last four quarters, ...
Hilltop Holdings(HTH) - 2024 Q1 - Quarterly Results
2024-04-18 20:30
[First Quarter 2024 Financial Results Overview](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results%20Overview) Hilltop Holdings Inc.'s Q1 2024 financial results, including key performance, operational highlights, and corporate actions are presented [Executive Summary and Highlights](index=1&type=section&id=Executive%20Summary%20and%20Highlights) Hilltop Holdings Inc. reported increased Q1 2024 income and EPS, driven by credit reversal and broker-dealer growth [Key Financial Performance](index=1&type=section&id=Key%20Financial%20Performance) | Metric | Q1 2024 | Q1 2023 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Income to common stockholders | $27.7 million | $25.8 million | +7.4% | | Diluted EPS | $0.42 | $0.40 | +5.0% | | Reversal of credit losses | $2.9 million | ($2.3 million provision) | N/A | | Consolidated ROAA | 0.74% | 0.69% | +0.05 pp | | Consolidated ROAE | 5.23% | 5.12% | +0.11 pp | | Book value per common share | $32.66 | $31.63 | +3.25% | | Noninterest income | $181.6 million | $162.5 million | +11.8% | | Noninterest expense | $250.0 million | $250.5 million | -0.2% | | Effective tax rate | 22.5% | 11.6% | +10.9 pp | [Operational Highlights and Market Trends](index=1&type=section&id=Operational%20Highlights%20and%20Market%20Trends) - Elevated interest rate environment continues to impact net interest margin primarily through increased borrowing costs[5](index=5&type=chunk) - Lack of housing inventory and pressured home buying affordability limited mortgage origination volumes[5](index=5&type=chunk) - PlainsCapital Bank produced an **annualized return on average assets** of **1.20%**, highlighting steady earnings power[12](index=12&type=chunk) - HilltopSecurities delivered a **pre-tax margin** of **16%** on net revenues of **$117 million**, primarily due to strong results from structured finance and wealth management business lines[12](index=12&type=chunk) - PrimeLending's results remain challenged due to elevated mortgage rates and suboptimal housing inventory[12](index=12&type=chunk) [Corporate Actions](index=1&type=section&id=Corporate%20Actions) - Board of Directors declared a **quarterly cash dividend** of **$0.17 per common share**, payable on May 24, 2024[4](index=4&type=chunk) - Repurchased **320,042 shares** of common stock for **$9.9 million** at an **average price** of **$31.04 per share** during Q1 2024[4](index=4&type=chunk) [Selected Financial Metrics](index=5&type=section&id=Selected%20Financial%20Metrics) Detailed financial metrics for Hilltop's consolidated, banking, broker-dealer, and mortgage segments are presented Hilltop Consolidated Selected Financial Data | Metric | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average stockholders' equity | 5.23% | 5.46% | 7.11% | 3.53% | 5.12% | | Return on average assets | 0.74% | 0.75% | 0.94% | 0.47% | 0.69% | | Net interest margin | 2.85% | 2.96% | 3.02% | 3.03% | 3.28% | | Book value per common share ($) | 32.66 | 32.58 | 31.91 | 31.71 | 31.63 | | Dividend payout ratio | 40.06% | 36.35% | 28.12% | 57.37% | 40.25% | Banking Segment Selected Financial Data | Metric | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net interest margin | 3.00% | 2.94% | 3.08% | 3.11% | 3.40% | | Net recoveries (charge-offs) ($000's)| (4,311) | (674) | 1,556 | (2,884) | (419) | | Return on average assets | 1.20% | 1.12% | 1.20% | 0.89% | 1.44% | | Fee income ratio | 11.5% | 11.2% | 10.5% | 10.0% | 9.6% | | Efficiency ratio | 54.1% | 53.2% | 51.4% | 51.2% | 48.4% | Broker-Dealer Segment Selected Financial Data | Metric | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net revenue ($000's) | 116,847 | 119,989 | 118,703 | 113,241 | 104,498 | | Compensation as a % of net revenue | 59.4% | 57.3% | 58.9% | 57.7% | 59.7% | | Pre-tax margin | 16.2% | 16.8% | 18.2% | 16.3% | 12.8% | Mortgage Origination Segment Selected Financial Data | Metric | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total mortgage loan originations - volume ($000's) | 1,676,486 | 1,815,027 | 2,243,701 | 2,451,650 | 1,732,753 | | Net gains from mortgage loan sales (basis points) | 216 | 189 | 198 | 201 | 186 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Hilltop Holdings Inc. reported slight decreases in assets and liabilities, with modest equity growth as of March 31, 2024 Consolidated Balance Sheet Highlights (March 31, 2024 vs. December 31, 2023) | Item | March 31, 2024 ($000's) | December 31, 2023 ($000's) | Change ($000's) | Change (%) | | :----------------------------------- | :---------------------- | :------------------------- | :-------------- | :--------- | | Total assets | 16,209,633 | 16,466,996 | (257,363) | -1.56% | | Cash and due from banks | 1,710,066 | 1,858,700 | (148,634) | -7.99% | | Loans held for sale | 842,324 | 943,846 | (101,522) | -10.76% | | Total deposits | 10,884,096 | 11,063,192 | (179,096) | -1.62% | | Total liabilities | 14,050,203 | 14,316,667 | (266,464) | -1.86% | | Total stockholders' equity | 2,159,430 | 2,150,329 | 9,101 | 0.42% | [Consolidated Income Statements](index=5&type=section&id=Consolidated%20Income%20Statements) Hilltop's Q1 2024 net interest income decreased, offset by credit loss reversal and increased noninterest income Consolidated Income Statement Highlights (Q1 2024 vs. Q4 2023 vs. Q1 2023) | Item | Q1 2024 ($000's) | Q4 2023 ($000's) | Q1 2023 ($000's) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | | Total interest income | 209,614 | 216,767 | 191,427 | | Total interest expense | 105,993 | 105,541 | 69,722 | | Net interest income | 103,621 | 111,226 | 121,705 | | Provision for (reversal of) credit losses | (2,871) | 1,265 | 2,331 | | Total noninterest income | 181,618 | 178,978 | 162,494 | | Total noninterest expense | 250,023 | 250,845 | 250,470 | | Income before income taxes | 38,087 | 38,094 | 31,398 | | Net income | 29,522 | 30,962 | 27,768 | | Income attributable to Hilltop | 27,668 | 28,671 | 25,800 | [Segment Performance Analysis](index=5&type=section&id=Segment%20Performance%20Analysis) [Banking Segment](index=5&type=section&id=Banking%20Segment) The Banking segment showed solid Q1 2024 performance with positive net interest income and credit loss reversal, boosting pre-tax income Banking Segment Performance (Q1 2024) | Item | Amount ($000's) | | :----------------------------------- | :-------------- | | Net interest income | 91,606 | | Provision for (reversal of) credit losses | (2,853) | | Noninterest income | 11,903 | | Noninterest expense | 56,020 | | Income (loss) before taxes | 50,342 | [Broker-Dealer Segment](index=5&type=section&id=Broker-Dealer%20Segment) The Broker-Dealer segment achieved strong Q1 2024 noninterest income and positive pre-tax income despite minor credit loss reversal Broker-Dealer Segment Performance (Q1 2024) | Item | Amount ($000's) | | :----------------------------------- | :-------------- | | Net interest income (expense) | 12,269 | | Provision for (reversal of) credit losses | (18) | | Noninterest income | 104,578 | | Noninterest expense | 97,947 | | Income (loss) before taxes | 18,918 | [Mortgage Origination Segment](index=5&type=section&id=Mortgage%20Origination%20Segment) The Mortgage Origination segment faced Q1 2024 challenges, reporting net interest expense and a pre-tax loss due to difficult market conditions Mortgage Origination Segment Performance (Q1 2024) | Item | Amount ($000's) | | :----------------------------------- | :-------------- | | Net interest income (expense) | (4,252) | | Provision for (reversal of) credit losses | — | | Noninterest income | 66,700 | | Noninterest expense | 78,898 | | Income (loss) before taxes | (16,450) | [Capital and Asset Quality](index=6&type=section&id=Capital%20and%20Asset%20Quality) [Capital Ratios](index=6&type=section&id=Capital%20Ratios) Hilltop and PlainsCapital Bank maintained strong Q1 2024 capital levels, with key ratios showing improvements year-over-year Hilltop Capital Ratios | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Tier 1 capital (to average assets) | 12.49% | 12.23% | 11.82% | | Common equity Tier 1 capital (to risk-weighted assets) | 19.73% | 19.32% | 17.99% | | Total capital (to risk-weighted assets) | 22.79% | 22.34% | 20.75% | PlainsCapital Capital Ratios | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Tier 1 capital (to average assets) | 11.00% | 10.55% | 10.69% | | Common equity Tier 1 capital (to risk-weighted assets) | 15.87% | 15.44% | 14.97% | | Total capital (to risk-weighted assets) | 17.06% | 16.58% | 15.94% | [Net Interest Margin Analysis](index=7&type=section&id=Net%20Interest%20Margin%20Analysis) Hilltop's consolidated net interest margin decreased year-over-year, driven by higher borrowing costs and a narrower net interest spread - Consolidated **Net Interest Margin** (taxable equivalent) decreased to **2.87%** in Q1 2024 from **3.28%** in Q1 2023[15](index=15&type=chunk) - **Annualized yield** on interest-earning assets (gross) increased to **5.78%** in Q1 2024 from **5.16%** in Q1 2023[15](index=15&type=chunk) - **Annualized rate** on total interest-bearing liabilities increased to **4.06%** in Q1 2024 from **2.81%** in Q1 2023[15](index=15&type=chunk) - **Net interest spread** decreased to **1.72%** in Q1 2024 from **2.35%** in Q1 2023[15](index=15&type=chunk) [Non-Performing Assets Portfolio](index=7&type=section&id=Non-Performing%20Assets%20Portfolio) Hilltop's Q1 2024 showed improved asset quality with decreased non-accrual loans and total non-performing assets Non-Performing Assets (March 31, 2024 vs. December 31, 2023) | Item | March 31, 2024 ($000's) | December 31, 2023 ($000's) | | :----------------------------------- | :---------------------- | :------------------------- | | Non-accrual loans | 64,736 | 68,327 | | Non-accrual loans as a % of total loans | 0.73% | 0.76% | | Non-performing assets | 70,462 | 73,422 | | Non-performing assets as a % of total assets | 0.43% | 0.45% | - Non-accrual loans at March 31, 2024, included a reclassified non-owner occupied commercial real estate credit relationship within the hotel/motel portfolio[27](index=27&type=chunk) - Loans past due **90 days or more** and still accruing were **$112.8 million** at March 31, 2024, primarily comprised of loans held for sale and guaranteed by U.S. government agencies[21](index=21&type=chunk) [Company Information and Outlook](index=9&type=section&id=Company%20Information%20and%20Outlook) [About Hilltop Holdings Inc.](index=9&type=section&id=About%20Hilltop%20Holdings%20Inc.) Hilltop Holdings Inc. is a Dallas-based financial holding company with diverse operations in banking, mortgage lending, and securities brokerage - Dallas-based financial holding company with primary lines of business in banking, residential mortgage lending, and broker-dealer services[24](index=24&type=chunk) - Operates through PlainsCapital Bank, PrimeLending, Hilltop Securities Inc., and Momentum Independent Network Inc[24](index=24&type=chunk) - Employed approximately **3,740 people** and operated approximately **325 locations** in **48 states** as of March 31, 2024[24](index=24&type=chunk) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) Hilltop Holdings Inc. will host a conference call and webcast on April 19, 2024, to discuss Q1 2024 financial results - Conference call and live webcast scheduled for Friday, April 19, 2024, at **8:00 AM Central (9:00 AM Eastern)**[23](index=23&type=chunk) - To be hosted by Hilltop President and CEO Jeremy B. Ford and CFO William B. Furr[23](index=23&type=chunk) - Access details provided for dialing in (**800-579-2543 / 785-424-1789, Conference ID HH1Q24**) and webcast (**http://ir.hilltop.com**)[23](index=23&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, potentially causing actual results to differ materially - Contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[25](index=25&type=chunk) - Key risk factors include credit risks of lending activities, effectiveness of data security controls, changes in general economic and market conditions, changes in the interest rate environment, and risks associated with concentration in real estate related loans[25](index=25&type=chunk) - The company does not assume any duty to update forward-looking statements, except as required by law[25](index=25&type=chunk)
Why Earnings Season Could Be Great for Hilltop Holdings (HTH)
Zacks Investment Research· 2024-04-17 13:31
Investors are always looking for stocks that are poised to beat at earnings season and Hilltop Holdings Inc. (HTH) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Hilltop Holdings is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pre ...
Will Hilltop Holdings (HTH) Beat Estimates Again in Its Next Earnings Report?
Zacks Investment Research· 2024-04-12 17:16
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Hilltop Holdings (HTH) , which belongs to the Zacks Banks - Southeast industry.When looking at the last two reports, this insurance holding compnay has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 21.28%, on average, in the last two quarters.For the last reported quarter, Hilltop Holdings came out with earning ...
Hilltop Holdings (HTH) Expected to Beat Earnings Estimates: Should You Buy?
Zacks Investment Research· 2024-04-11 15:06
Wall Street expects a year-over-year decline in earnings on lower revenues when Hilltop Holdings (HTH) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock ...
Hilltop Holdings(HTH) - 2023 Q4 - Annual Report
2024-02-14 21:16
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-31987 Hilltop Holdings Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...