Hilltop Holdings(HTH) - 2024 Q4 - Annual Results

Financial Performance - Hilltop reported Q4 2024 income to common stockholders of $35.5 million, or $0.55 per diluted share, up from $28.7 million, or $0.44 per diluted share in Q4 2023[1]. - For the full year 2024, income to common stockholders was $113.2 million, or $1.74 per diluted share, compared to $109.6 million, or $1.69 per diluted share in 2023[1]. - Net income attributable to Hilltop for Q4 2024 was $35.52 million, up from $29.69 million in Q3 2024, representing a 19.0% increase[12]. - Basic earnings per share for Q4 2024 was $0.55, up from $0.46 in Q3 2024[12]. - Net interest income for the year ended December 31, 2024, was $420.250 million, down from $469.548 million in 2023[20]. Income and Revenue - Noninterest income for Q4 2024 was $195.6 million, a 9.3% increase from $179.0 million in Q4 2023[10]. - Total interest income for Q4 2024 was $208.59 million, a decrease of 1.1% from $211.04 million in Q3 2024[12]. - Noninterest income totaled $195.59 million in Q4 2024, slightly down from $200.44 million in Q3 2024[12]. - The adjustment to interest income for Q4 2024 was $0.7 million, compared to $0.6 million for Q4 2023[1]. - For the year ended December 31, 2024, the adjustment to interest income was $2.5 million, down from $2.7 million in 2023[1]. Asset and Deposit Growth - Total assets increased to $16.3 billion at December 31, 2024, compared to $15.9 billion at September 30, 2024[11]. - Total deposits rose to $11.1 billion at December 31, 2024, up from $10.8 billion at September 30, 2024[11]. - Total assets increased to $16.324 billion as of December 31, 2024, compared to $16.271 billion at the end of the previous year[19]. Loan Performance - The reversal of credit losses in Q4 2024 was $5.9 million, compared to a reversal of $1.3 million in Q3 2024 and a provision for credit losses of $1.3 million in Q4 2023[10]. - Mortgage loan origination production volume increased to $2.3 billion in Q4 2024, up from $1.8 billion in Q4 2023, representing a 27.8% increase[10]. - Total mortgage loan originations volume for Q4 2024 was $2.25 billion, a decrease from $2.31 billion in Q3 2024[13]. - Non-accrual loans amounted to $88.149 million, representing 1.00% of total loans as of December 31, 2024, compared to 1.02% in the previous quarter[18]. - Non-performing assets totaled $91.095 million, accounting for 0.56% of total assets as of December 31, 2024[18]. Capital and Ratios - The Tier 1 capital ratio for Hilltop was 12.57% as of December 31, 2024, down from 12.95% in the previous quarter[17]. - The total capital ratio for Hilltop was 24.40% as of December 31, 2024, up from 23.68% in the previous quarter[17]. - Return on average stockholders' equity improved to 6.50% in Q4 2024 from 5.51% in Q3 2024[13]. - The net interest spread for the year ended December 31, 2024, was 1.68%, compared to 2.03% in the previous year[20]. Operational Efficiency - Hilltop's consolidated net interest margin decreased to 2.72% in Q4 2024, down from 2.84% in Q3 2024[10]. - The efficiency ratio for the banking segment was 57.8% in Q4 2024, compared to 55.2% in Q3 2024, indicating increased operational costs[13]. - Net interest income after provision for credit losses was $111.34 million for Q4 2024, compared to $106.31 million in Q3 2024, reflecting a 4.8% increase[12]. Dividends and Stock Repurchase - The Board of Directors declared a quarterly cash dividend of $0.18 per common share, a 6% increase from the prior quarter[2]. - Cash dividends declared per common share remained stable at $0.17 for both Q4 2024 and Q3 2024[12]. - Hilltop authorized a new stock repurchase program of up to $100 million through January 2026[2]. Company Overview and Future Outlook - Hilltop Holdings will host a live webcast and conference call on January 31, 2025, to review Q4 and full year 2024 financial results[22]. - As of December 31, 2024, Hilltop employed approximately 3,650 people and operated 280 locations across 48 states[23]. - Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH"[23]. - The company provides business and consumer banking services through PlainsCapital Bank and residential mortgage lending via PrimeLending[23]. - Hilltop's broker-dealer subsidiaries offer a full range of securities brokerage and investment banking services[23]. Risks and Security - The company faces various risks including credit risks, changes in interest rates, and competition in its banking and mortgage segments[24]. - Hilltop's forward-looking statements are subject to known and unknown risks that may cause actual results to differ materially[24]. - The company emphasizes the importance of effective data security controls to mitigate risks from cyber attacks[24].