Hilltop Holdings(HTH) - 2025 Q1 - Quarterly Results

Financial Performance - Hilltop Holdings Inc. reported income to common stockholders of $42.1 million, or $0.65 per diluted share, for Q1 2025, compared to $27.7 million, or $0.42 per diluted share, in Q1 2024, representing a 52.5% increase in income[1]. - Noninterest income for Q1 2025 was $213.3 million, a 17.5% increase from $181.6 million in Q1 2024[6]. - Net income attributable to Hilltop for the three months ended March 31, 2025, was $42.116 million, representing a 18.25% increase from $35.519 million in the previous quarter[8]. - Net interest income for the first quarter of 2025 was $105,757,000, an increase from $104,198,000 in the first quarter of 2024[14]. Credit Losses and Provisions - The provision for credit losses was $9.3 million in Q1 2025, compared to a reversal of credit losses of $2.9 million in Q1 2024, indicating a significant shift in credit loss expectations[4]. - Non-accrual loans decreased to $81,477,000 as of March 31, 2025, down from $88,149,000 in the previous quarter, representing a reduction of approximately 0.8%[13]. - Non-performing assets totaled $89,159,000 as of March 31, 2025, slightly down from $91,095,000 in the previous quarter, indicating a decrease of about 2.1%[13]. Assets and Deposits - Total assets decreased to $15.8 billion at March 31, 2025, down from $16.3 billion at December 31, 2024[6]. - Total deposits were $10.8 billion at March 31, 2025, compared to $11.1 billion at December 31, 2024, reflecting a decrease of 2.7%[6]. - Total assets as of March 31, 2025, were $15,934,658,000, a slight decrease from $15,997,647,000 in the previous quarter[14]. Returns and Margins - Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for Q1 2025 were 1.13% and 7.82%, respectively, compared to 0.74% and 5.23% in Q1 2024[6]. - Return on average stockholders' equity improved to 7.82% from 6.50% in the previous quarter[9]. - The company reported a net interest margin of 2.84%, slightly up from 2.72% in the previous quarter[9]. - The net interest margin for the three months ended March 31, 2025, was 2.86%, compared to 2.87% for the same period in 2024[14]. Stock and Shareholder Actions - Hilltop's book value per common share increased to $34.29 at March 31, 2025, up from $33.71 at December 31, 2024[6]. - The company repurchased 1,046,540 shares of common stock for $33.3 million at an average price of $31.80 per share during Q1 2025[2]. - The dividend payout ratio decreased to 27.62% from 31.08% in the previous quarter, indicating a more conservative approach to dividend distribution[9]. Operational Highlights - The mortgage loan origination production volume remained stable at $1.7 billion for both Q1 2025 and Q1 2024[4]. - Total mortgage loan originations volume for the three months ended March 31, 2025, was $1.742 billion, a decrease of 22.6% from $2.253 billion in the previous quarter[9]. - Hilltop employed approximately 3,640 people and operated 316 locations across 47 states as of March 31, 2025[17]. - The company plans to continue focusing on expanding its business and consumer banking services throughout Texas and beyond[18]. Capital Ratios - PlainsCapital's Tier 1 capital ratio increased to 10.22% as of March 31, 2025, up from 9.99% in the previous quarter[12]. - Hilltop's Common Equity Tier 1 capital ratio reached 21.29% as of March 31, 2025, compared to 21.23% in the previous quarter[12]. Taxation - Hilltop's effective tax rate for Q1 2025 was 22.7%, slightly higher than 22.5% in the same period of 2024[6]. Interest Income - Total interest income for the three months ended March 31, 2025, was $192.799 million, a decrease of 7.57% from $208.590 million in the previous quarter[8]. - Net interest income after provision for credit losses was $95.779 million, compared to $111.336 million in the previous quarter, reflecting a decrease of 14%[8]. - Noninterest income increased to $213.340 million, up 9.06% from $195.590 million in the previous quarter[8]. Loan Sales - The company experienced a net gain from the sale of loans of $45.281 million, an increase from $43.553 million in the previous quarter[8].