Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2024
Hilltop Holdings Inc. (NYSE: HTH) reported financial results for Q2 2024, with income to common stockholders of $20.3 million, or $0.31 per diluted share, compared to $18.1 million, or $0.28 per diluted share, in Q2 2023. Key highlights include:
- Provision for credit losses of $10.9 million
- Mortgage loan origination production volume of $2.4 billion
- Net gains from mortgage loans sold to third parties increased to 233 basis points
- Consolidated annualized return on average assets of 0.59%
- Book value per common share increased to $32.86
- Total assets of $15.6 billion
- Loans, net of allowance for credit losses, of $7.7 billion
- Total deposits of $10.4 billion
The company maintained strong capital levels with a Tier 1 Leverage Ratio of 12.87% and a Common Equity Tier 1 Capital Ratio of 19.45%.
Hilltop Holdings Inc. (NYSE: HTH) ha riportato i risultati finanziari per il secondo trimestre del 2024, con un reddito per gli azionisti comuni di 20,3 milioni di dollari, ovvero 0,31 dollari per azione diluita, rispetto ai 18,1 milioni di dollari, o 0,28 dollari per azione diluita, nel secondo trimestre del 2023. I punti salienti includono:
- Accantonamento per perdite su crediti di 10,9 milioni di dollari
- Volume della produzione di prestiti ipotecari di 2,4 miliardi di dollari
- Aumenti netti dai prestiti ipotecari venduti a terzi a 233 punti base
- Rendimento annualizzato consolidato medio degli attivi pari a 0,59%
- Valore contabile per azione comune aumentato a 32,86 dollari
- Attivi totali di 15,6 miliardi di dollari
- Prestiti, al netto delle svalutazioni per perdite su crediti, di 7,7 miliardi di dollari
- Depositi totali di 10,4 miliardi di dollari
L'azienda ha mantenuto solidi livelli di capitale con un rapporto di leva Tier 1 di 12,87% e un rapporto di capitale Common Equity Tier 1 di 19,45%.
Hilltop Holdings Inc. (NYSE: HTH) informó los resultados financieros para el segundo trimestre de 2024, con ingresos para los accionistas comunes de 20,3 millones de dólares, o 0,31 dólares por acción diluida, en comparación con 18,1 millones de dólares, o 0,28 dólares por acción diluida, en el segundo trimestre de 2023. Los aspectos destacados incluyen:
- Provisión para pérdidas crediticias de 10,9 millones de dólares
- Volumen de producción de originación de préstamos hipotecarios de 2,4 mil millones de dólares
- Ganancias netas de préstamos hipotecarios vendidos a terceros aumentaron a 233 puntos base
- Rendimiento anualizado consolidado sobre los activos promedio de 0,59%
- Valor contable por acción común aumentó a 32,86 dólares
- Activos totales de 15,6 mil millones de dólares
- Préstamos, netos de provisiones para pérdidas crediticias, de 7,7 mil millones de dólares
- Depósitos totales de 10,4 mil millones de dólares
La empresa mantuvo niveles de capital sólidos con un Ratio de Apalancamiento de Nivel 1 de 12,87% y un Ratio de Capital Común de Nivel 1 de 19,45%.
힐탑 홀딩스 주식회사 (NYSE: HTH)는 2024년 2분기 재무 결과를 보고하였으며, 보통주 주주에게 2030만 달러의 수익, 즉 희석 주당 0.31달러를 기록했습니다. 이는 2023년 2분기의 1810만 달러 또는 희석 주당 0.28달러에 비해 증가한 수치입니다. 주요 사항은 다음과 같습니다:
- 신용 손실에 대한 충당금 1090만 달러
- 모기지 대출 원활화 생산량 24억 달러
- 제3자에게 판매된 모기지 대출의 순이익 증가 233 기준 포인트
- 평균 자산에 대한 연간화된 총수익률 0.59%
- 보통주당 장부 가치 32.86 달러로 증가
- 총 자산 156억 달러
- 신용 손실 충당금을 제외한 대출 77억 달러
- 총 예치금 104억 달러
회사는 Tier 1 레버리지 비율 12.87% 및 일반 주식 Tier 1 자본 비율 19.45%로 강한 자본 수준을 유지했습니다.
Hilltop Holdings Inc. (NYSE: HTH) a publié les résultats financiers pour le deuxième trimestre 2024, avec un revenu pour les actionnaires ordinaires de 20,3 millions de dollars, soit 0,31 dollar par action diluée, contre 18,1 millions de dollars, soit 0,28 dollar par action diluée, au deuxième trimestre 2023. Les faits marquants comprennent :
- Provision pour pertes de crédit de 10,9 millions de dollars
- Volume de production des prêts hypothécaires de 2,4 milliards de dollars
- Gains nets des prêts hypothécaires vendus à des tiers augmentés à 233 points de base
- Rendement annualisé consolidé sur les actifs moyens de 0,59%
- Valeur comptable par action ordinaire augmentée à 32,86 dollars
- Actifs totaux de 15,6 milliards de dollars
- Prêts, nets des provisions pour pertes de crédit, de 7,7 milliards de dollars
- Dépôts totaux de 10,4 milliards de dollars
L'entreprise a maintenu des niveaux de capitaux solides avec un ratio de levier de niveau 1 de 12,87% et un ratio de capital de niveau 1 de fonds propres ordinaires de 19,45%.
Hilltop Holdings Inc. (NYSE: HTH) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht, mit Einkünften für die Stammaktionäre von 20,3 Millionen Dollar oder 0,31 Dollar pro verwässerter Aktie, verglichen mit 18,1 Millionen Dollar oder 0,28 Dollar pro verwässerter Aktie im 2. Quartal 2023. Zu den wichtigsten Punkten gehören:
- Rückstellung für Kreditausfälle von 10,9 Millionen Dollar
- Produktionsvolumen bei der Vergabe von Hypothekendarlehen von 2,4 Milliarden Dollar
- Nettogewinne aus an Dritte verkauften Hypothekendarlehen stiegen auf 233 Basispunkte
- Konsolidierte annualisierte Rendite auf durchschnittliche Vermögenswerte von 0,59%
- Buchwert pro Stammaktie stieg auf 32,86 Dollar
- Gesamtvermögen von 15,6 Milliarden Dollar
- Darlehen, netto der Rückstellungen für Kreditausfälle, von 7,7 Milliarden Dollar
- Gesamteinlagen von 10,4 Milliarden Dollar
Das Unternehmen hielt solide Kapitalniveaus mit einem Tier 1 Leverage Ratio von 12,87% und einer Common Equity Tier 1 Capital Ratio von 19,45%.
- Income to common stockholders increased to $20.3 million from $18.1 million year-over-year
- Net gains from mortgage loans sold to third parties increased to 233 basis points
- Book value per common share increased to $32.86
- Maintained strong capital levels with Tier 1 Leverage Ratio of 12.87% and Common Equity Tier 1 Capital Ratio of 19.45%
- Consolidated net interest margin increased to 2.90% from 2.85% in Q1 2024
- Provision for credit losses increased to $10.9 million compared to a reversal of $2.9 million in Q1 2024
- Non-accrual loans increased to $105.7 million, or 1.12% of total loans, from $64.7 million, or 0.73% of total loans, in Q1 2024
- Total deposits decreased to $10.4 billion from $10.9 billion in Q1 2024
- Total assets decreased to $15.6 billion from $16.2 billion in Q1 2024
As a Financial Analyst, I see several key points in Hilltop Holdings' Q2 2024 results:
- Income to common stockholders was $20.3 million ($0.31 per diluted share), up from $18.1 million ($0.28 per share) in Q2 2023.
- Net interest margin increased slightly to 2.90% from 2.85% in Q1 2024.
- The provision for credit losses was $10.9 million, compared to a $2.9 million reversal in Q1 2024.
- Non-accrual loans increased to $105.7 million (1.12% of total loans) from $64.7 million (0.73%) in Q1 2024.
- The company maintained strong capital levels with a Tier 1 Leverage Ratio of 12.87% and Common Equity Tier 1 Capital Ratio of 19.45%.
While income improved year-over-year, the increase in non-accrual loans and credit loss provisions suggests some deterioration in loan quality. The company's strong capital position provides a buffer, but investors should monitor credit trends closely in coming quarters.
Hilltop also announced that its Board of Directors declared a quarterly cash dividend of
The impacts of economic headwinds that began in 2022, and have continued into 2024, remain uncertain and will depend on developments outside of our control, including, among others, the timing and significance of further changes in
Jeremy B. Ford, President and CEO of Hilltop, said, “Despite the continuation of a challenging environment for our operating businesses, Hilltop generated
Second Quarter 2024 Highlights for Hilltop:
-
The provision for credit losses was
during the second quarter of 2024, compared to a reversal of credit losses of$10.9 million in the first quarter of 2024 and a provision for credit losses of$2.9 million in the second quarter of 2023;$14.8 million -
The provision for credit losses during the second quarter of 2024 reflected a build in the allowance related to specific reserves and loan portfolio changes within the banking segment since the prior quarter, slightly offset by an improved
U.S. economic outlook.
-
The provision for credit losses during the second quarter of 2024 reflected a build in the allowance related to specific reserves and loan portfolio changes within the banking segment since the prior quarter, slightly offset by an improved
-
For the second quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was
, compared to$92.9 million in the second quarter of 2023, a$90.0 million 3.2% increase;-
Mortgage loan origination production volume was
during the second quarter of 2024, compared to$2.4 billion in the second quarter of 2023;$2.5 billion - Net gains from mortgage loans sold to third parties increased to 233 basis points during the second quarter of 2024, compared to 221 basis points in the first quarter of 2024.
-
Mortgage loan origination production volume was
-
Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the second quarter of 2024 were
0.59% and3.84% , respectively, compared to0.47% and3.53% , respectively, for the second quarter of 2023; -
Hilltop’s book value per common share increased to
at June 30, 2024, compared to$32.86 at March 31, 2024;$32.66 -
Hilltop’s total assets were
and$15.6 billion at June 30, 2024 and March 31, 2024, respectively;$16.2 billion -
Loans1, net of allowance for credit losses, were
and$7.7 billion at June 30, 2024 and March 31, 2024, respectively;$7.6 billion -
Non-accrual loans were
, or$105.7 million 1.12% of total loans, at June 30, 2024, compared to , or$64.7 million 0.73% of total loans, at March 31, 2024;- Non-accrual loans at June 30, 2024 increased primarily due to the addition of two commercial and industrial credit relationships within our auto note financing industry subsector, partially offset by the sale of a single non-owner occupied commercial real estate credit relationship within our hotel/motel portfolio industry subsector that was classified in loans held for sale.
-
Loans held for sale increased by
50.1% from March 31, 2024 to at June 30, 2024;$1.3 billion -
Total deposits were
and$10.4 billion at June 30, 2024 and March 31, 2024, respectively;$10.9 billion -
Total estimated uninsured deposits were
, or approximately$4.8 billion 46% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of , were$325.4 million , or approximately$4.5 billion 43% of total deposits, at June 30, 2024.
-
Total estimated uninsured deposits were
-
Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of
12.87% and a Common Equity Tier 1 Capital Ratio of19.45% at June 30, 2024; -
Hilltop’s consolidated net interest margin4 increased to
2.90% for the second quarter of 2024, compared to2.85% in the first quarter of 2024; -
For the second quarter of 2024, noninterest income was
, compared to$193.3 million in the second quarter of 2023, a$190.7 million 1.4% increase; -
For second quarter of 2024, noninterest expense was
, compared to$256.5 million in the second quarter of 2023, a$267.0 million 3.9% decrease; and -
Hilltop’s effective tax rate was
22.5% during the second quarter of 2024, compared to26.4% during the same period in 2023.- The effective tax rate for the second quarter of 2024 was higher than the applicable statutory rate primarily due to the impact of nondeductible expenses, nondeductible compensation expense and other permanent adjustments, partially offset by the discrete impact of restricted stock vesting during the quarter and investments in tax-exempt instruments.
1 |
“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of |
2 |
Capital ratios reflect Hilltop’s decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period through December 31, 2024. |
3 |
Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets. |
4 |
Net interest margin is defined as net interest income divided by average interest-earning assets. |
Consolidated Financial and Other Information |
|||||||||||||||
|
|||||||||||||||
Consolidated Balance Sheets |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
(in 000's) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
Cash and due from banks |
|
$ |
798,300 |
|
$ |
1,710,066 |
|
$ |
1,858,700 |
|
$ |
1,513,747 |
|
$ |
1,584,709 |
Federal funds sold |
|
|
5,650 |
|
|
650 |
|
|
650 |
|
|
3,650 |
|
|
650 |
Assets segregated for regulatory purposes |
|
|
51,046 |
|
|
70,717 |
|
|
57,395 |
|
|
47,491 |
|
|
50,711 |
Securities purchased under agreements to resell |
|
|
111,914 |
|
|
91,608 |
|
|
80,011 |
|
|
123,719 |
|
|
143,982 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading, at fair value |
|
|
721,384 |
|
|
657,700 |
|
|
515,991 |
|
|
578,901 |
|
|
696,649 |
Available for sale, at fair value, net (1) |
|
|
1,433,107 |
|
|
1,480,555 |
|
|
1,507,595 |
|
|
1,456,238 |
|
|
1,526,869 |
Held to maturity, at amortized cost, net (1) |
|
|
777,456 |
|
|
790,550 |
|
|
812,677 |
|
|
825,079 |
|
|
847,437 |
Equity, at fair value |
|
|
254 |
|
|
315 |
|
|
321 |
|
|
264 |
|
|
258 |
|
|
|
2,932,201 |
|
|
2,929,120 |
|
|
2,836,584 |
|
|
2,860,482 |
|
|
3,071,213 |
Loans held for sale |
|
|
1,264,437 |
|
|
842,324 |
|
|
943,846 |
|
|
1,058,806 |
|
|
1,333,044 |
Loans held for investment, net of unearned income |
|
|
8,173,520 |
|
|
8,062,693 |
|
|
8,079,745 |
|
|
8,204,052 |
|
|
8,354,122 |
Allowance for credit losses |
|
|
(115,082) |
|
|
(104,231) |
|
|
(111,413) |
|
|
(110,822) |
|
|
(109,306) |
Loans held for investment, net |
|
|
8,058,438 |
|
|
7,958,462 |
|
|
7,968,332 |
|
|
8,093,230 |
|
|
8,244,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broker-dealer and clearing organization receivables |
|
|
1,297,175 |
|
|
1,473,561 |
|
|
1,573,931 |
|
|
1,460,352 |
|
|
1,474,177 |
Premises and equipment, net |
|
|
161,746 |
|
|
165,557 |
|
|
168,856 |
|
|
172,097 |
|
|
176,574 |
Operating lease right-of-use assets |
|
|
93,994 |
|
|
95,343 |
|
|
88,580 |
|
|
93,057 |
|
|
97,979 |
Mortgage servicing assets |
|
|
52,902 |
|
|
95,591 |
|
|
96,662 |
|
|
104,951 |
|
|
95,101 |
Other assets |
|
|
517,811 |
|
|
501,244 |
|
|
517,545 |
|
|
588,751 |
|
|
588,166 |
Goodwill |
|
|
267,447 |
|
|
267,447 |
|
|
267,447 |
|
|
267,447 |
|
|
267,447 |
Other intangible assets, net |
|
|
7,429 |
|
|
7,943 |
|
|
8,457 |
|
|
9,078 |
|
|
9,772 |
Total assets |
|
$ |
15,620,490 |
|
$ |
16,209,633 |
|
$ |
16,466,996 |
|
$ |
16,396,858 |
|
$ |
17,138,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
2,845,441 |
|
$ |
3,028,543 |
|
$ |
3,007,101 |
|
$ |
3,200,247 |
|
$ |
3,451,438 |
Interest-bearing |
|
|
7,528,415 |
|
|
7,855,553 |
|
|
8,056,091 |
|
|
7,902,850 |
|
|
7,712,739 |
Total deposits |
|
|
10,373,856 |
|
|
10,884,096 |
|
|
11,063,192 |
|
|
11,103,097 |
|
|
11,164,177 |
Broker-dealer and clearing organization payables |
|
|
1,285,226 |
|
|
1,436,462 |
|
|
1,430,734 |
|
|
1,368,064 |
|
|
1,306,646 |
Short-term borrowings |
|
|
897,613 |
|
|
892,574 |
|
|
900,038 |
|
|
882,999 |
|
|
1,628,637 |
Securities sold, not yet purchased, at fair value |
|
|
75,546 |
|
|
60,562 |
|
|
34,872 |
|
|
51,527 |
|
|
74,761 |
Notes payable |
|
|
347,402 |
|
|
347,273 |
|
|
347,145 |
|
|
347,020 |
|
|
364,531 |
Operating lease liabilities |
|
|
113,096 |
|
|
114,518 |
|
|
109,002 |
|
|
114,334 |
|
|
119,999 |
Other liabilities |
|
|
365,140 |
|
|
314,718 |
|
|
431,684 |
|
|
422,955 |
|
|
389,336 |
Total liabilities |
|
|
13,457,879 |
|
|
14,050,203 |
|
|
14,316,667 |
|
|
14,289,996 |
|
|
15,048,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
650 |
|
|
653 |
|
|
652 |
|
|
652 |
|
|
651 |
Additional paid-in capital |
|
|
1,047,523 |
|
|
1,049,831 |
|
|
1,054,662 |
|
|
1,052,867 |
|
|
1,050,191 |
Accumulated other comprehensive loss |
|
|
(119,171) |
|
|
(119,606) |
|
|
(121,505) |
|
|
(145,083) |
|
|
(131,718) |
Retained earnings |
|
|
1,205,467 |
|
|
1,201,013 |
|
|
1,189,222 |
|
|
1,171,250 |
|
|
1,144,624 |
Deferred compensation employee stock trust, net |
|
|
1 |
|
|
115 |
|
|
228 |
|
|
340 |
|
|
450 |
Employee stock trust |
|
|
(1) |
|
|
(142) |
|
|
(292) |
|
|
(446) |
|
|
(599) |
Total Hilltop stockholders' equity |
|
|
2,134,469 |
|
|
2,131,864 |
|
|
2,122,967 |
|
|
2,079,580 |
|
|
2,063,599 |
Noncontrolling interests |
|
|
28,142 |
|
|
27,566 |
|
|
27,362 |
|
|
27,282 |
|
|
26,655 |
Total stockholders' equity |
|
|
2,162,611 |
|
|
2,159,430 |
|
|
2,150,329 |
|
|
2,106,862 |
|
|
2,090,254 |
Total liabilities & stockholders' equity |
|
$ |
15,620,490 |
|
$ |
16,209,633 |
|
$ |
16,466,996 |
|
$ |
16,396,858 |
|
$ |
17,138,341 |
(1) |
At June 30, 2024, the amortized cost of the available for sale securities portfolio was |
|
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
Consolidated Income Statements |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|||||
(in 000's, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
138,627 |
|
$ |
134,331 |
|
$ |
138,096 |
|
$ |
142,402 |
|
$ |
138,397 |
|
Securities borrowed |
|
|
20,306 |
|
|
20,561 |
|
|
18,659 |
|
|
17,683 |
|
|
18,515 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
25,289 |
|
|
26,241 |
|
|
28,763 |
|
|
27,166 |
|
|
26,719 |
|
Tax-exempt |
|
|
2,389 |
|
|
2,415 |
|
|
2,545 |
|
|
2,464 |
|
|
2,566 |
|
Other |
|
|
20,532 |
|
|
26,066 |
|
|
28,704 |
|
|
27,040 |
|
|
27,229 |
|
Total interest income |
|
|
207,143 |
|
|
209,614 |
|
|
216,767 |
|
|
216,755 |
|
|
213,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
68,095 |
|
|
69,144 |
|
|
68,339 |
|
|
64,290 |
|
|
54,726 |
|
Securities loaned |
|
|
18,669 |
|
|
19,039 |
|
|
17,247 |
|
|
16,169 |
|
|
16,413 |
|
Short-term borrowings |
|
|
10,676 |
|
|
11,588 |
|
|
13,495 |
|
|
14,212 |
|
|
17,706 |
|
Notes payable |
|
|
3,604 |
|
|
3,590 |
|
|
3,596 |
|
|
4,026 |
|
|
3,973 |
|
Other |
|
|
2,449 |
|
|
2,632 |
|
|
2,864 |
|
|
2,408 |
|
|
2,342 |
|
Total interest expense |
|
|
103,493 |
|
|
105,993 |
|
|
105,541 |
|
|
101,105 |
|
|
95,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
103,650 |
|
|
103,621 |
|
|
111,226 |
|
|
115,650 |
|
|
118,266 |
|
Provision for (reversal of) credit losses |
|
|
10,934 |
|
|
(2,871) |
|
|
1,265 |
|
|
(40) |
|
|
14,836 |
|
Net interest income after provision for (reversal of) credit losses |
|
|
92,716 |
|
|
106,492 |
|
|
109,961 |
|
|
115,690 |
|
|
103,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains from sale of loans and other mortgage production income |
|
|
58,455 |
|
|
40,197 |
|
|
36,387 |
|
|
47,262 |
|
|
48,535 |
|
Mortgage loan origination fees |
|
|
34,398 |
|
|
26,438 |
|
|
32,844 |
|
|
41,478 |
|
|
41,440 |
|
Securities commissions and fees and other |
|
|
67,460 |
|
|
84,757 |
|
|
73,967 |
|
|
68,447 |
|
|
68,640 |
|
Investment and securities advisory fees and commissions |
|
|
32,992 |
|
|
30,226 |
|
|
35,780 |
|
|
39,662 |
|
|
32,037 |
|
Total noninterest income |
|
|
193,305 |
|
|
181,618 |
|
|
178,978 |
|
|
196,849 |
|
|
190,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees' compensation and benefits |
|
|
169,998 |
|
|
165,830 |
|
|
160,390 |
|
|
173,195 |
|
|
176,908 |
|
Occupancy and equipment, net |
|
|
21,297 |
|
|
21,912 |
|
|
21,524 |
|
|
21,912 |
|
|
23,025 |
|
Professional services |
|
|
10,270 |
|
|
9,731 |
|
|
13,170 |
|
|
12,639 |
|
|
12,594 |
|
Other |
|
|
54,899 |
|
|
52,550 |
|
|
55,761 |
|
|
52,271 |
|
|
54,450 |
|
Total noninterest expense |
|
|
256,464 |
|
|
250,023 |
|
|
250,845 |
|
|
260,017 |
|
|
266,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
29,557 |
|
|
38,087 |
|
|
38,094 |
|
|
52,522 |
|
|
27,105 |
|
Income tax expense |
|
|
6,658 |
|
|
8,565 |
|
|
7,132 |
|
|
13,211 |
|
|
7,167 |
|
Net income |
|
|
22,899 |
|
|
29,522 |
|
|
30,962 |
|
|
39,311 |
|
|
19,938 |
|
Less: Net income attributable to noncontrolling interest |
|
|
2,566 |
|
|
1,854 |
|
|
2,291 |
|
|
2,269 |
|
|
1,805 |
|
Income attributable to Hilltop |
|
$ |
20,333 |
|
$ |
27,668 |
|
$ |
28,671 |
|
$ |
37,042 |
|
$ |
18,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.31 |
|
$ |
0.42 |
|
$ |
0.44 |
|
$ |
0.57 |
|
$ |
0.28 |
|
Diluted |
|
$ |
0.31 |
|
$ |
0.42 |
|
$ |
0.44 |
|
$ |
0.57 |
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.17 |
|
$ |
0.17 |
|
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
65,085 |
|
|
65,200 |
|
|
65,136 |
|
|
65,106 |
|
|
65,025 |
|
Diluted |
|
|
65,086 |
|
|
65,214 |
|
|
65,138 |
|
|
65,108 |
|
|
65,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
||||||||||||||||
Segment Results |
|
|
|
|
|
|
|
Mortgage |
|
|
|
|
All Other and |
|
Hilltop |
|||
(in 000's) |
|
Banking |
|
Broker-Dealer |
|
Origination |
|
Corporate |
|
Eliminations |
|
Consolidated |
||||||
Net interest income (expense) |
|
$ |
92,458 |
|
$ |
12,218 |
|
$ |
(4,571) |
|
$ |
(3,153) |
|
$ |
6,698 |
|
$ |
103,650 |
Provision for (reversal of) credit losses |
|
|
10,950 |
|
|
(16) |
|
|
— |
|
|
— |
|
|
— |
|
|
10,934 |
Noninterest income |
|
|
9,255 |
|
|
92,053 |
|
|
92,867 |
|
|
6,001 |
|
|
(6,871) |
|
|
193,305 |
Noninterest expense |
|
|
57,950 |
|
|
97,062 |
|
|
86,946 |
|
|
14,716 |
|
|
(210) |
|
|
256,464 |
Income (loss) before taxes |
|
$ |
32,813 |
|
$ |
7,225 |
|
$ |
1,350 |
|
$ |
(11,868) |
|
$ |
37 |
|
$ |
29,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
||||||||||||||||
Segment Results |
|
|
|
|
|
|
|
Mortgage |
|
|
|
|
All Other and |
|
Hilltop |
|||
(in 000's) |
|
Banking |
|
Broker-Dealer |
|
Origination |
|
Corporate |
|
Eliminations |
|
Consolidated |
||||||
Net interest income (expense) |
|
$ |
184,064 |
|
$ |
24,486 |
|
$ |
(8,823) |
|
$ |
(6,255) |
|
$ |
13,799 |
|
$ |
207,271 |
Provision for (reversal of) credit losses |
|
|
8,097 |
|
|
(34) |
|
|
— |
|
|
— |
|
|
— |
|
|
8,063 |
Noninterest income |
|
|
21,158 |
|
|
196,631 |
|
|
159,567 |
|
|
11,785 |
|
|
(14,218) |
|
|
374,923 |
Noninterest expense |
|
|
113,970 |
|
|
195,008 |
|
|
165,843 |
|
|
32,101 |
|
|
(435) |
|
|
506,487 |
Income (loss) before taxes |
|
$ |
83,155 |
|
$ |
26,143 |
|
$ |
(15,099) |
|
$ |
(26,571) |
|
$ |
16 |
|
$ |
67,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
Selected Financial Data |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilltop Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of purchase accounting |
|
|
6 bps |
|
|
4 bps |
|
|
4 bps |
|
|
7 bps |
|
|
9 bps |
Book value per common share ($) |
|
|
32.86 |
|
|
32.66 |
|
|
32.58 |
|
|
31.91 |
|
|
31.71 |
Shares outstanding, end of period (000's) |
|
|
64,953 |
|
|
65,267 |
|
|
65,153 |
|
|
65,170 |
|
|
65,071 |
Dividend payout ratio (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of purchase accounting |
|
|
7 bps |
|
|
5 bps |
|
|
5 bps |
|
|
8 bps |
|
|
11 bps |
Accretion of discount on loans ( |
|
|
1,945 |
|
|
1,299 |
|
|
1,202 |
|
|
2,226 |
|
|
3,334 |
Net recoveries (charge-offs) ( |
|
|
(83) |
|
|
(4,311) |
|
|
(674) |
|
|
1,556 |
|
|
(2,884) |
Return on average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee income ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees' compensation and benefits ( |
|
|
33,352 |
|
|
32,389 |
|
|
29,420 |
|
|
30,641 |
|
|
30,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broker-Dealer Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue ( |
|
|
104,271 |
|
|
116,847 |
|
|
119,989 |
|
|
118,703 |
|
|
113,241 |
Employees' compensation and benefits ( |
|
|
66,181 |
|
|
69,457 |
|
|
68,746 |
|
|
69,930 |
|
|
65,290 |
Variable compensation expense ( |
|
|
32,734 |
|
|
35,274 |
|
|
39,435 |
|
|
39,929 |
|
|
34,798 |
Compensation as a % of net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Origination Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan originations - volume ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home purchases |
|
|
2,205,157 |
|
|
1,548,941 |
|
|
1,698,009 |
|
|
2,091,444 |
|
|
2,301,007 |
Refinancings |
|
|
174,141 |
|
|
127,545 |
|
|
117,018 |
|
|
152,257 |
|
|
150,643 |
Total mortgage loan originations - volume |
|
|
2,379,298 |
|
|
1,676,486 |
|
|
1,815,027 |
|
|
2,243,701 |
|
|
2,451,650 |
Mortgage loan sales - volume ( |
|
|
1,838,841 |
|
|
1,749,857 |
|
|
1,874,001 |
|
|
2,395,357 |
|
|
2,115,706 |
Net gains from mortgage loan sales (basis points): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans sold to third parties |
|
|
233 |
|
|
221 |
|
|
189 |
|
|
199 |
|
|
207 |
Impact of loans retained by banking segment |
|
|
(5) |
|
|
(5) |
|
|
0 |
|
|
(1) |
|
|
(6) |
As reported |
|
|
228 |
|
|
216 |
|
|
189 |
|
|
198 |
|
|
201 |
Mortgage servicing rights asset ( |
|
|
52,902 |
|
|
95,591 |
|
|
96,662 |
|
|
104,951 |
|
|
95,101 |
Employees' compensation and benefits ( |
|
|
61,624 |
|
|
52,694 |
|
|
53,766 |
|
|
64,016 |
|
|
70,982 |
Variable compensation expense ( |
|
|
34,886 |
|
|
22,188 |
|
|
24,085 |
|
|
33,070 |
|
|
36,249 |
(1) |
Net interest margin is defined as net interest income divided by average interest-earning assets. |
|
(2) |
Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable |
|
(3) |
Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share. |
|
(4) |
Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income. |
|
(5) |
Pre-tax margin is defined as income before income taxes divided by net revenue. |
|
(6) |
Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
Capital Ratios |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
Tier 1 capital (to average assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PlainsCapital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilltop |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PlainsCapital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilltop |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PlainsCapital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilltop |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PlainsCapital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilltop |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
Non-Performing Assets Portfolio Data |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
Loans accounted for on a non-accrual basis ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
$ |
6,894 |
|
$ |
34,661 |
|
$ |
36,440 |
|
$ |
2,375 |
|
$ |
2,456 |
Owner occupied |
|
|
6,437 |
|
|
4,846 |
|
|
5,098 |
|
|
4,964 |
|
|
1,096 |
Commercial and industrial |
|
|
80,755 |
|
|
12,165 |
|
|
9,502 |
|
|
10,190 |
|
|
21,442 |
Construction and land development |
|
|
485 |
|
|
698 |
|
|
3,480 |
|
|
760 |
|
|
593 |
1-4 family residential |
|
|
11,092 |
|
|
12,363 |
|
|
13,801 |
|
|
13,202 |
|
|
13,360 |
Consumer |
|
|
1 |
|
|
3 |
|
|
6 |
|
|
7 |
|
|
9 |
Broker-dealer |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Non-accrual loans ( |
|
$ |
105,664 |
|
$ |
64,736 |
|
$ |
68,327 |
|
$ |
31,498 |
|
$ |
38,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as a % of total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned ( |
|
|
2,973 |
|
|
5,254 |
|
|
5,095 |
|
|
5,386 |
|
|
3,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other repossessed assets ( |
|
|
464 |
|
|
472 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets ( |
|
|
109,101 |
|
|
70,462 |
|
|
73,422 |
|
|
36,884 |
|
|
42,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a % of total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more and still accruing ( |
|
|
122,451 |
|
|
112,799 |
|
|
115,090 |
|
|
106,346 |
|
|
130,036 |
(1) |
Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
||||||||||||||
|
|
2024 |
|
2023 |
|
||||||||||||
|
|
Average |
|
Interest |
|
Annualized |
|
Average |
|
Interest |
|
Annualized |
|
||||
|
|
Outstanding |
|
Earned |
|
Yield or |
|
Outstanding |
|
Earned |
|
Yield or |
|
||||
Net Interest Margin (Taxable Equivalent) Details (1) |
|
Balance |
|
or Paid |
|
Rate |
|
Balance |
|
or Paid |
|
Rate |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
$ |
934,445 |
|
$ |
13,494 |
|
5.78 |
% |
$ |
1,043,526 |
|
$ |
14,125 |
|
5.41 |
% |
Loans held for investment, gross (2) |
|
|
7,892,879 |
|
|
125,133 |
|
6.36 |
% |
|
8,033,095 |
|
|
124,272 |
|
6.21 |
% |
Investment securities - taxable |
|
|
2,612,049 |
|
|
25,284 |
|
3.87 |
% |
|
2,776,375 |
|
|
26,719 |
|
3.85 |
% |
Investment securities - non-taxable (3) |
|
|
321,928 |
|
|
2,965 |
|
3.68 |
% |
|
412,609 |
|
|
2,410 |
|
2.34 |
% |
Federal funds sold and securities purchased under agreements to resell |
|
|
105,520 |
|
|
1,944 |
|
7.39 |
% |
|
123,219 |
|
|
2,190 |
|
7.13 |
% |
Interest-bearing deposits in other financial institutions |
|
|
1,057,783 |
|
|
13,572 |
|
5.15 |
% |
|
1,711,945 |
|
|
21,273 |
|
4.98 |
% |
Securities borrowed |
|
|
1,358,425 |
|
|
20,306 |
|
5.91 |
% |
|
1,477,502 |
|
|
18,515 |
|
4.96 |
% |
Other |
|
|
39,758 |
|
|
5,016 |
|
50.60 |
% |
|
82,608 |
|
|
3,766 |
|
18.29 |
% |
Interest-earning assets, gross (3) |
|
|
14,322,787 |
|
|
207,714 |
|
5.82 |
% |
|
15,660,879 |
|
|
213,270 |
|
5.46 |
% |
Allowance for credit losses |
|
|
(104,551) |
|
|
|
|
|
|
|
(97,387) |
|
|
|
|
|
|
Interest-earning assets, net |
|
|
14,218,236 |
|
|
|
|
|
|
|
15,563,492 |
|
|
|
|
|
|
Noninterest-earning assets |
|
|
1,332,959 |
|
|
|
|
|
|
|
1,355,997 |
|
|
|
|
|
|
Total assets |
|
$ |
15,551,195 |
|
|
|
|
|
|
$ |
16,919,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
7,617,862 |
|
$ |
68,095 |
|
3.59 |
% |
$ |
7,736,582 |
|
$ |
54,726 |
|
2.84 |
% |
Securities loaned |
|
|
1,338,825 |
|
|
18,669 |
|
5.59 |
% |
|
1,373,435 |
|
|
16,413 |
|
4.79 |
% |
Notes payable and other borrowings |
|
|
1,253,394 |
|
|
16,729 |
|
5.35 |
% |
|
1,861,063 |
|
|
24,021 |
|
5.18 |
% |
Total interest-bearing liabilities |
|
|
10,210,081 |
|
|
103,493 |
|
4.07 |
% |
|
10,971,080 |
|
|
95,160 |
|
3.48 |
% |
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
2,814,179 |
|
|
|
|
|
|
|
3,540,643 |
|
|
|
|
|
|
Other liabilities |
|
|
377,516 |
|
|
|
|
|
|
|
320,706 |
|
|
|
|
|
|
Total liabilities |
|
|
13,401,776 |
|
|
|
|
|
|
|
14,832,429 |
|
|
|
|
|
|
Stockholders’ equity |
|
|
2,122,144 |
|
|
|
|
|
|
|
2,060,677 |
|
|
|
|
|
|
Noncontrolling interest |
|
|
27,275 |
|
|
|
|
|
|
|
26,383 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
15,551,195 |
|
|
|
|
|
|
$ |
16,919,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3) |
|
|
|
|
$ |
104,221 |
|
|
|
|
|
|
$ |
118,110 |
|
|
|
Net interest spread (3) |
|
|
|
|
|
|
|
1.75 |
% |
|
|
|
|
|
|
1.98 |
% |
Net interest margin (3) |
|
|
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
3.03 |
% |
(1) |
Information presented on a consolidated basis (dollars in thousands). |
|
(2) |
Average balance includes non-accrual loans. |
|
(3) |
Presented on a taxable-equivalent basis with annualized taxable equivalent adjustments based on the applicable |
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, July 26, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review second quarter 2024 financial results. Interested parties can access the conference call by dialing 800-245-3047 (
About Hilltop
Hilltop Holdings is a
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “aim,” “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “steady,” “target,” “view,” “will” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: (i) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber attacks and any legal, reputational and financial risks following a cybersecurity incident; (iii) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (iv) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans and (vi) disruptions to the economy and financial services industry, and (vii) risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments. For further discussion of such factors, see the risk factors described in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other reports that are filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725968264/en/
Investor Relations Contact:
Matt Dunn
214-525-4636
mdunn@hilltop.com
Source: Hilltop Holdings Inc.
FAQ
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