Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2022
Hilltop Holdings (NYSE: HTH) reported a significant decline in Q2 2022 earnings, with net income of $33.3 million ($0.45 per share) compared to $99.1 million ($1.21 per share) in Q2 2021. This decline is attributed to a 42.1% decrease in net gains from mortgage loan sales and increased provisions for credit losses, reflecting a deteriorating economic outlook. Hilltop declared a quarterly cash dividend of $0.15 per share. The company repurchased 14.87 million shares for $442.3 million, indicating confidence in its long-term strategy amidst challenging market conditions.
- Repurchased approximately 14.87 million shares, reflecting confidence in the company's long-term strategy.
- Despite the economic challenges, PlainsCapital Bank reported solid loan growth and net interest margin expansion.
- Book value per common share increased to $31.43, highlighting stability.
- Net income decreased by 66.4% year-over-year, indicating significant financial strain.
- 42.1% decline in net gains from mortgage origination segment, affecting overall revenue.
- Provision for credit losses increased to $5.3 million, signaling heightened risk in lending.
Hilltop also announced that its Board of Directors declared a quarterly cash dividend of
Identified headwinds during 2022, including tight housing inventories on mortgage volumes, declining deposit balances, increases in market interest rates, and uncertainties related to inflationary pressures on expenses, coupled with a declining economic forecast, rapid increases in the 10-year
“We were also pleased to return meaningful capital to stockholders through a successful tender offer in May. This transaction demonstrates our conviction in the long-term strategy of Hilltop, as we bought back almost
Second Quarter 2022 Highlights for Hilltop:
-
The provision for credit losses was
$5.3 million $0.1 million $28.7 million -
The provision for credit losses during the second quarter of 2022 primarily reflected an increase in the expected lifetime credit losses under CECL on collectively evaluated loans within the portfolio attributable to a deteriorating
U.S. economic outlook since the prior quarter, partially offset by decreases in specific reserves and positive risk rating grade migration.
-
The provision for credit losses during the second quarter of 2022 primarily reflected an increase in the expected lifetime credit losses under CECL on collectively evaluated loans within the portfolio attributable to a deteriorating
-
For the second quarter of 2022, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was
$139.9 million $241.8 million 42.1% decrease;-
Mortgage loan origination production volume was
$3.8 billion $5.9 billion - Net gains from mortgage loans sold to third parties decreased to 260 basis points during the second quarter of 2022, compared to 321 basis points in the first quarter of 2022.
-
Mortgage loan origination production volume was
-
Hilltop’s consolidated annualized return on average assets and return on average equity for the second quarter of 2022 were
0.80% and5.82% , respectively, compared to2.29% and16.42% , respectively, for the second quarter of 2021; -
Hilltop’s book value per common share increased to
$31.43 June 30, 2022 , compared to$31.02 March 31, 2022 ; -
Hilltop’s total assets were
$16.7 billion $18.4 billion June 30, 2022 andMarch 31, 2022 , respectively; -
Loans1, net of allowance for credit losses, increased to
$7.4 billion June 30, 2022 compared to$7.2 billion March 31, 2022 ; -
Non-performing loans were
$35.7 million 0.38% of total loans, atJune 30, 2022 , compared to$44.3 million 0.47% of total loans, atMarch 31, 2022 ; -
Loans held for sale decreased by
9.3% fromMarch 31, 2022 to$1.5 billion June 30, 2022 ; -
Total deposits were
$11.9 billion $12.7 billion June 30, 2022 andMarch 31, 2022 , respectively; -
Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of
10.53% and a Common Equity Tier 1 Capital Ratio of17.24% atJune 30, 2022 ; -
Hilltop’s consolidated net interest margin4 increased to
2.75% for the second quarter of 2022, compared to2.36% in the first quarter of 2022;-
Includes previously deferred interest income of
$1.3 million $5.4 million
-
Includes previously deferred interest income of
-
For the second quarter of 2022, noninterest income was
$239.3 million $339.9 million 29.6% decrease; -
For the second quarter 2022, noninterest expense was
$298.5 million $343.4 million 13.1% decrease; and -
Hilltop’s effective tax rate was
25.6% during the second quarter of 2022, compared to23.5% during the same period in 2021.- The effective tax rate for the second quarter of 2022 was higher than the applicable statutory rate primarily due to the impact of non-deductible compensation expense and other permanent adjustments.
| ________________________________________ | |
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 |
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
|
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Consolidated Balance Sheets |
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||||||||||
(in 000's) |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
Cash and due from banks |
|
$ |
1,783,554 |
|
|
$ |
2,886,812 |
|
|
$ |
2,823,138 |
|
|
$ |
2,463,111 |
|
|
$ |
1,372,818 |
|
Federal funds sold |
|
|
381 |
|
|
|
383 |
|
|
|
385 |
|
|
|
406 |
|
|
|
387 |
|
Assets segregated for regulatory purposes |
|
|
120,816 |
|
|
|
128,408 |
|
|
|
221,740 |
|
|
|
269,506 |
|
|
|
207,284 |
|
Securities purchased under agreements to resell |
|
|
139,929 |
|
|
|
256,991 |
|
|
|
118,262 |
|
|
|
155,908 |
|
|
|
202,638 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Trading, at fair value |
|
|
593,273 |
|
|
|
471,763 |
|
|
|
647,998 |
|
|
|
609,813 |
|
|
|
682,483 |
|
Available for sale, at fair value, net |
|
|
1,562,222 |
|
|
|
1,462,340 |
|
|
|
2,130,568 |
|
|
|
1,994,183 |
|
|
|
1,817,807 |
|
Held to maturity, at amortized cost, net |
|
|
920,583 |
|
|
|
953,107 |
|
|
|
267,684 |
|
|
|
277,419 |
|
|
|
288,776 |
|
Equity, at fair value |
|
|
197 |
|
|
|
225 |
|
|
|
250 |
|
|
|
221 |
|
|
|
193 |
|
|
|
|
3,076,275 |
|
|
|
2,887,435 |
|
|
|
3,046,500 |
|
|
|
2,881,636 |
|
|
|
2,789,259 |
|
Loans held for sale |
|
|
1,491,579 |
|
|
|
1,643,994 |
|
|
|
1,878,190 |
|
|
|
2,108,878 |
|
|
|
2,885,458 |
|
Loans held for investment, net of unearned income |
|
|
7,930,619 |
|
|
|
7,797,903 |
|
|
|
7,879,904 |
|
|
|
7,552,926 |
|
|
|
7,645,227 |
|
Allowance for credit losses |
|
|
(95,298 |
) |
|
|
(91,185 |
) |
|
|
(91,352 |
) |
|
|
(109,512 |
) |
|
|
(115,269 |
) |
Loans held for investment, net |
|
|
7,835,321 |
|
|
|
7,706,718 |
|
|
|
7,788,552 |
|
|
|
7,443,414 |
|
|
|
7,529,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||
Broker-dealer and clearing organization receivables |
|
|
1,049,830 |
|
|
|
1,610,352 |
|
|
|
1,672,946 |
|
|
|
1,419,652 |
|
|
|
1,403,447 |
|
Premises and equipment, net |
|
|
195,361 |
|
|
|
198,906 |
|
|
|
204,438 |
|
|
|
210,026 |
|
|
|
212,402 |
|
Operating lease right-of-use assets |
|
|
106,806 |
|
|
|
108,180 |
|
|
|
112,328 |
|
|
|
115,942 |
|
|
|
115,698 |
|
Mortgage servicing assets |
|
|
121,688 |
|
|
|
100,475 |
|
|
|
86,990 |
|
|
|
110,931 |
|
|
|
124,497 |
|
Other assets |
|
|
513,570 |
|
|
|
546,622 |
|
|
|
452,880 |
|
|
|
526,339 |
|
|
|
535,536 |
|
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
Other intangible assets, net |
|
|
13,182 |
|
|
|
14,233 |
|
|
|
15,284 |
|
|
|
16,455 |
|
|
|
17,705 |
|
Total assets |
|
$ |
16,715,739 |
|
|
$ |
18,356,956 |
|
|
$ |
18,689,080 |
|
|
$ |
17,989,651 |
|
|
$ |
17,664,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing |
|
$ |
4,601,643 |
|
|
$ |
4,694,592 |
|
|
$ |
4,577,183 |
|
|
$ |
4,433,148 |
|
|
$ |
4,231,082 |
|
Interest-bearing |
|
|
7,319,143 |
|
|
|
7,972,110 |
|
|
|
8,240,894 |
|
|
|
7,699,014 |
|
|
|
7,502,703 |
|
Total deposits |
|
|
11,920,786 |
|
|
|
12,666,702 |
|
|
|
12,818,077 |
|
|
|
12,132,162 |
|
|
|
11,733,785 |
|
Broker-dealer and clearing organization payables |
|
|
934,818 |
|
|
|
1,397,836 |
|
|
|
1,477,300 |
|
|
|
1,496,923 |
|
|
|
1,439,620 |
|
Short-term borrowings |
|
|
822,649 |
|
|
|
835,054 |
|
|
|
859,444 |
|
|
|
747,040 |
|
|
|
915,919 |
|
Securities sold, not yet purchased, at fair value |
|
|
135,968 |
|
|
|
97,629 |
|
|
|
96,586 |
|
|
|
113,064 |
|
|
|
132,950 |
|
Notes payable |
|
|
389,722 |
|
|
|
395,479 |
|
|
|
387,904 |
|
|
|
395,804 |
|
|
|
396,653 |
|
Operating lease liabilities |
|
|
124,406 |
|
|
|
125,919 |
|
|
|
130,960 |
|
|
|
134,296 |
|
|
|
134,019 |
|
Junior subordinated debentures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
67,012 |
|
Other liabilities |
|
|
329,987 |
|
|
|
347,742 |
|
|
|
369,606 |
|
|
|
468,020 |
|
|
|
348,200 |
|
Total liabilities |
|
|
14,658,336 |
|
|
|
15,866,361 |
|
|
|
16,139,877 |
|
|
|
15,487,309 |
|
|
|
15,168,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock |
|
|
646 |
|
|
|
794 |
|
|
|
790 |
|
|
|
790 |
|
|
|
812 |
|
Additional paid-in capital |
|
|
1,039,261 |
|
|
|
1,275,649 |
|
|
|
1,274,446 |
|
|
|
1,270,272 |
|
|
|
1,302,439 |
|
Accumulated other comprehensive income (loss) |
|
|
(95,279 |
) |
|
|
(80,565 |
) |
|
|
(10,219 |
) |
|
|
367 |
|
|
|
7,093 |
|
Retained earnings |
|
|
1,085,208 |
|
|
|
1,267,415 |
|
|
|
1,257,014 |
|
|
|
1,204,307 |
|
|
|
1,159,304 |
|
Deferred compensation employee stock trust, net |
|
|
695 |
|
|
|
744 |
|
|
|
752 |
|
|
|
751 |
|
|
|
754 |
|
Employee stock trust |
|
|
(954 |
) |
|
|
(104 |
) |
|
|
(115 |
) |
|
|
(116 |
) |
|
|
(121 |
) |
Total Hilltop stockholders' equity |
|
|
2,029,577 |
|
|
|
2,463,933 |
|
|
|
2,522,668 |
|
|
|
2,476,371 |
|
|
|
2,470,281 |
|
Noncontrolling interests |
|
|
27,826 |
|
|
|
26,662 |
|
|
|
26,535 |
|
|
|
25,971 |
|
|
|
26,095 |
|
Total stockholders' equity |
|
|
2,057,403 |
|
|
|
2,490,595 |
|
|
|
2,549,203 |
|
|
|
2,502,342 |
|
|
|
2,496,376 |
|
Total liabilities & stockholders' equity |
|
$ |
16,715,739 |
|
|
$ |
18,356,956 |
|
|
$ |
18,689,080 |
|
|
$ |
17,989,651 |
|
|
$ |
17,664,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
||||||||||||||||
Consolidated Income Statements |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(in 000's, except per share data) |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|
||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans, including fees |
|
$ |
98,728 |
|
$ |
90,408 |
|
$ |
96,104 |
|
|
$ |
99,769 |
|
|
$ |
104,162 |
|
|
Securities borrowed |
|
|
10,498 |
|
|
8,817 |
|
|
8,524 |
|
|
|
8,585 |
|
|
|
15,586 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taxable |
|
|
17,288 |
|
|
15,581 |
|
|
13,916 |
|
|
|
12,341 |
|
|
|
11,125 |
|
|
Tax-exempt |
|
|
2,141 |
|
|
2,419 |
|
|
2,639 |
|
|
|
2,687 |
|
|
|
2,338 |
|
|
Other |
|
|
6,478 |
|
|
2,312 |
|
|
1,872 |
|
|
|
1,796 |
|
|
|
1,607 |
|
|
Total interest income |
|
|
135,133 |
|
|
119,537 |
|
|
123,055 |
|
|
|
125,178 |
|
|
|
134,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deposits |
|
|
5,456 |
|
|
4,193 |
|
|
4,404 |
|
|
|
5,303 |
|
|
|
6,176 |
|
|
Securities loaned |
|
|
8,512 |
|
|
7,472 |
|
|
6,624 |
|
|
|
6,519 |
|
|
|
12,345 |
|
|
Short-term borrowings |
|
|
3,020 |
|
|
2,045 |
|
|
2,279 |
|
|
|
2,400 |
|
|
|
2,374 |
|
|
Notes payable |
|
|
3,809 |
|
|
4,437 |
|
|
5,871 |
|
|
|
5,465 |
|
|
|
5,253 |
|
|
Junior subordinated debentures |
|
|
— |
|
|
— |
|
|
— |
|
|
|
419 |
|
|
|
577 |
|
|
Other |
|
|
2,280 |
|
|
1,399 |
|
|
(417 |
) |
|
|
(18 |
) |
|
|
177 |
|
|
Total interest expense |
|
|
23,077 |
|
|
19,546 |
|
|
18,761 |
|
|
|
20,088 |
|
|
|
26,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
|
112,056 |
|
|
99,991 |
|
|
104,294 |
|
|
|
105,090 |
|
|
|
107,916 |
|
|
Provision for (reversal of) credit losses |
|
|
5,336 |
|
|
115 |
|
|
(18,565 |
) |
|
|
(5,819 |
) |
|
|
(28,720 |
) |
|
Net interest income after provision for (reversal of) credit losses |
|
|
106,720 |
|
|
99,876 |
|
|
122,859 |
|
|
|
110,909 |
|
|
|
136,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net gains from sale of loans and other mortgage production income |
|
|
97,543 |
|
|
110,894 |
|
|
156,103 |
|
|
|
203,152 |
|
|
|
199,625 |
|
|
Mortgage loan origination fees |
|
|
42,378 |
|
|
32,062 |
|
|
35,930 |
|
|
|
38,780 |
|
|
|
42,146 |
|
|
Securities commissions and fees |
|
|
34,757 |
|
|
37,146 |
|
|
32,801 |
|
|
|
34,412 |
|
|
|
38,300 |
|
|
Investment and securities advisory fees and commissions |
|
|
32,002 |
|
|
29,705 |
|
|
42,834 |
|
|
|
49,646 |
|
|
|
32,268 |
|
|
Other |
|
|
32,593 |
|
|
6,621 |
|
|
17,178 |
|
|
|
41,955 |
|
|
|
27,560 |
|
|
Total noninterest income |
|
|
239,273 |
|
|
216,428 |
|
|
284,846 |
|
|
|
367,945 |
|
|
|
339,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Employees' compensation and benefits |
|
|
205,327 |
|
|
200,019 |
|
|
229,717 |
|
|
|
258,679 |
|
|
|
248,486 |
|
|
Occupancy and equipment, net |
|
|
24,231 |
|
|
24,766 |
|
|
25,741 |
|
|
|
25,428 |
|
|
|
25,004 |
|
|
Professional services |
|
|
16,246 |
|
|
10,063 |
|
|
9,904 |
|
|
|
14,542 |
|
|
|
16,239 |
|
|
Other |
|
|
52,739 |
|
|
51,502 |
|
|
56,832 |
|
|
|
56,525 |
|
|
|
53,639 |
|
|
Total noninterest expense |
|
|
298,543 |
|
|
286,350 |
|
|
322,194 |
|
|
|
355,174 |
|
|
|
343,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income before income taxes |
|
|
47,450 |
|
|
29,954 |
|
|
85,511 |
|
|
|
123,680 |
|
|
|
133,167 |
|
|
Income tax expense |
|
|
12,127 |
|
|
5,815 |
|
|
20,715 |
|
|
|
28,257 |
|
|
|
31,234 |
|
|
Net income |
|
|
35,323 |
|
|
24,139 |
|
|
64,796 |
|
|
|
95,423 |
|
|
|
101,933 |
|
|
Less: Net income attributable to noncontrolling interest |
|
|
2,063 |
|
|
1,889 |
|
|
2,611 |
|
|
|
2,517 |
|
|
|
2,873 |
|
|
Income attributable to Hilltop |
|
$ |
33,260 |
|
$ |
22,250 |
|
$ |
62,185 |
|
|
$ |
92,906 |
|
|
$ |
99,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.45 |
|
$ |
0.28 |
|
$ |
0.79 |
|
|
$ |
1.16 |
|
|
$ |
1.21 |
|
|
Diluted |
|
$ |
0.45 |
|
$ |
0.28 |
|
$ |
0.78 |
|
|
$ |
1.15 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cash dividends declared per common share |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
73,693 |
|
|
79,114 |
|
|
78,933 |
|
|
|
80,109 |
|
|
|
81,663 |
|
|
Diluted |
|
|
73,838 |
|
|
79,356 |
|
|
79,427 |
|
|
|
80,542 |
|
|
|
82,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|||||||||||||||||||
Segment Results |
|
|
|
|
|
|
|
Mortgage |
|
|
|
|
All Other and |
|
Hilltop |
||||||
(in 000's) |
|
Banking |
|
Broker-Dealer |
|
Origination |
|
Corporate |
|
Eliminations |
|
Consolidated |
|||||||||
Net interest income (expense) |
|
$ |
101,259 |
|
$ |
12,578 |
|
$ |
(1,291 |
) |
|
$ |
(3,190 |
) |
|
$ |
2,700 |
|
|
$ |
112,056 |
Provision for (reversal of) credit losses |
|
|
5,025 |
|
|
311 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,336 |
Noninterest income |
|
|
12,467 |
|
|
87,651 |
|
|
140,082 |
|
|
|
2,080 |
|
|
|
(3,007 |
) |
|
|
239,273 |
Noninterest expense |
|
|
57,331 |
|
|
90,817 |
|
|
133,169 |
|
|
|
17,561 |
|
|
|
(335 |
) |
|
|
298,543 |
Income (loss) before taxes |
|
$ |
51,370 |
|
$ |
9,101 |
|
$ |
5,622 |
|
|
$ |
(18,671 |
) |
|
$ |
28 |
|
|
$ |
47,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Six Months Ended |
|||||||||||||||||||
Segment Results |
|
|
|
|
|
|
|
Mortgage |
|
|
|
|
All Other and |
|
Hilltop |
||||||
(in 000's) |
|
Banking |
|
Broker-Dealer |
|
Origination |
|
Corporate |
|
Eliminations |
|
Consolidated |
|||||||||
Net interest income (expense) |
|
$ |
193,329 |
|
$ |
24,096 |
|
$ |
(3,127 |
) |
|
$ |
(6,580 |
) |
|
$ |
4,329 |
|
|
$ |
212,047 |
Provision for (reversal of) credit losses |
|
|
4,975 |
|
|
476 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,451 |
Noninterest income |
|
|
25,237 |
|
|
148,341 |
|
|
283,276 |
|
|
|
3,846 |
|
|
|
(4,999 |
) |
|
|
455,701 |
Noninterest expense |
|
|
115,761 |
|
|
171,464 |
|
|
268,027 |
|
|
|
30,354 |
|
|
|
(713 |
) |
|
|
584,893 |
Income (loss) before taxes |
|
$ |
97,830 |
|
$ |
497 |
|
$ |
12,122 |
|
|
$ |
(33,088 |
) |
|
$ |
43 |
|
|
$ |
77,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Financial Data |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
8 bps |
|
|
7 bps |
|
|
12 bps |
|
|
9 bps |
|
|
16 bps |
Book value per common share ($) |
|
|
31.43 |
|
|
31.02 |
|
|
31.95 |
|
|
31.36 |
|
|
30.44 |
Shares outstanding, end of period (000's) |
|
|
64,576 |
|
|
79,439 |
|
|
78,965 |
|
|
78,959 |
|
|
81,153 |
Dividend payout ratio (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of purchase accounting |
|
|
10 bps |
|
|
8 bps |
|
|
15 bps |
|
|
11 bps |
|
|
20 bps |
Accretion of discount on loans ( |
|
|
3,011 |
|
|
2,510 |
|
|
4,716 |
|
|
3,221 |
|
|
6,001 |
Net recoveries (charge-offs) ( |
|
|
(1,223) |
|
|
(282) |
|
|
405 |
|
|
62 |
|
|
(510) |
Return on average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee income ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees' compensation and benefits ( |
|
|
33,554 |
|
|
33,517 |
|
|
34,415 |
|
|
31,500 |
|
|
33,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broker-Dealer Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue ( |
|
|
100,229 |
|
|
72,209 |
|
|
94,569 |
|
|
126,570 |
|
|
94,145 |
Employees' compensation and benefits ( |
|
|
64,494 |
|
|
55,825 |
|
|
65,301 |
|
|
82,429 |
|
|
62,289 |
Variable compensation expense ( |
|
|
37,471 |
|
|
26,625 |
|
|
35,939 |
|
|
53,505 |
|
|
34,409 |
Compensation as a % of net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin (5) |
|
|
|
|
|
(11.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Origination Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan originations - volume ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home purchases |
|
|
3,342,103 |
|
|
2,753,031 |
|
|
3,559,137 |
|
|
3,948,420 |
|
|
4,018,922 |
Refinancings |
|
|
467,117 |
|
|
1,011,452 |
|
|
1,430,369 |
|
|
1,646,208 |
|
|
1,881,121 |
Total mortgage loan originations - volume |
|
|
3,809,220 |
|
|
3,764,483 |
|
|
4,989,506 |
|
|
5,594,628 |
|
|
5,900,043 |
Mortgage loan sales - volume ( |
|
|
3,872,935 |
|
|
3,868,596 |
|
|
4,988,538 |
|
|
6,195,559 |
|
|
5,524,226 |
Net gains from mortgage loan sales (basis points): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans sold to third parties |
|
|
260 |
|
|
321 |
|
|
362 |
|
|
359 |
|
|
376 |
Impact of loans retained by banking segment |
|
|
(7) |
|
|
(9) |
|
|
(15) |
|
|
(13) |
|
|
(12) |
As reported |
|
|
253 |
|
|
312 |
|
|
347 |
|
|
346 |
|
|
364 |
Mortgage servicing rights asset ( |
|
|
121,688 |
|
|
100,475 |
|
|
86,990 |
|
|
110,931 |
|
|
124,497 |
Employees' compensation and benefits ( |
|
|
100,206 |
|
|
102,748 |
|
|
121,758 |
|
|
134,814 |
|
|
145,401 |
Variable compensation expense ( |
|
|
56,525 |
|
|
56,243 |
|
|
73,208 |
|
|
88,153 |
|
|
97,081 |
| ____________________________________________ | |
(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. |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
Tier 1 capital (to average assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
9.67 |
% |
|
|
9.74 |
% |
|
|
10.20 |
% |
|
|
10.02 |
% |
|
|
10.22 |
% |
Hilltop |
|
|
10.53 |
% |
|
|
12.46 |
% |
|
|
12.58 |
% |
|
|
12.64 |
% |
|
|
12.87 |
% |
Common equity Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
14.65 |
% |
|
|
15.37 |
% |
|
|
16.00 |
% |
|
|
15.40 |
% |
|
|
15.00 |
% |
Hilltop |
|
|
17.24 |
% |
|
|
21.27 |
% |
|
|
21.22 |
% |
|
|
21.28 |
% |
|
|
20.22 |
% |
Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
14.65 |
% |
|
|
15.37 |
% |
|
|
16.00 |
% |
|
|
15.40 |
% |
|
|
15.00 |
% |
Hilltop |
|
|
17.24 |
% |
|
|
21.27 |
% |
|
|
21.22 |
% |
|
|
21.28 |
% |
|
|
20.82 |
% |
Total capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
15.55 |
% |
|
|
16.18 |
% |
|
|
16.77 |
% |
|
|
16.32 |
% |
|
|
15.95 |
% |
Hilltop |
|
|
19.90 |
% |
|
|
23.85 |
% |
|
|
23.75 |
% |
|
|
24.00 |
% |
|
|
23.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Performing Assets Portfolio Data |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
Loans accounted for on a non-accrual basis ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate |
|
|
4,947 |
|
|
|
6,153 |
|
|
|
6,601 |
|
|
|
5,705 |
|
|
|
7,211 |
|
Commercial and industrial |
|
|
13,315 |
|
|
|
18,486 |
|
|
|
22,478 |
|
|
|
29,808 |
|
|
|
33,033 |
|
Construction and land development |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
366 |
|
|
|
474 |
|
1-4 family residential |
|
|
16,542 |
|
|
|
18,723 |
|
|
|
21,123 |
|
|
|
25,255 |
|
|
|
27,100 |
|
Consumer |
|
|
19 |
|
|
|
21 |
|
|
|
23 |
|
|
|
24 |
|
|
|
26 |
|
Broker-dealer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
34,824 |
|
|
|
43,384 |
|
|
|
50,227 |
|
|
|
61,158 |
|
|
|
67,844 |
|
Troubled debt restructurings included in accruing loans held for investment ( |
|
|
857 |
|
|
|
890 |
|
|
|
922 |
|
|
|
1,038 |
|
|
|
1,139 |
|
Non-performing loans ( |
|
|
35,681 |
|
|
|
44,274 |
|
|
|
51,149 |
|
|
|
62,196 |
|
|
|
68,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing loans as a % of total loans |
|
|
0.38 |
% |
|
|
0.47 |
% |
|
|
0.52 |
% |
|
|
0.64 |
% |
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other real estate owned ( |
|
|
1,516 |
|
|
|
2,175 |
|
|
|
2,833 |
|
|
|
21,605 |
|
|
|
21,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other repossessed assets ( |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets ( |
|
|
37,197 |
|
|
|
46,449 |
|
|
|
53,982 |
|
|
|
83,801 |
|
|
|
90,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets as a % of total assets |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.29 |
% |
|
|
0.47 |
% |
|
|
0.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans past due 90 days or more and still accruing ( |
|
|
82,410 |
|
|
|
87,489 |
|
|
|
60,775 |
|
|
|
175,734 |
|
|
|
245,828 |
|
_____________________________________ |
|
(1) |
Loans accounted for on a non-accrual basis do not include COVID-19 related loan modifications through |
(2) |
Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by |
|
Three Months Ended |
|
|||||||||||||||||
|
|
2022 |
|
2021 |
|
||||||||||||||
|
|
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 |
|
$ |
1,375,395 |
|
|
$ |
14,302 |
|
4.16 |
% |
$ |
2,450,897 |
|
|
$ |
17,128 |
|
2.80 |
% |
Loans held for investment, gross (2) |
|
|
7,838,090 |
|
|
|
84,426 |
|
4.32 |
% |
|
7,725,906 |
|
|
|
87,034 |
|
4.48 |
% |
Investment securities - taxable |
|
|
2,779,458 |
|
|
|
17,288 |
|
2.49 |
% |
|
2,443,486 |
|
|
|
11,106 |
|
1.82 |
% |
Investment securities - non-taxable (3) |
|
|
250,303 |
|
|
|
2,557 |
|
4.09 |
% |
|
320,685 |
|
|
|
2,731 |
|
3.41 |
% |
Federal funds sold and securities purchased under agreements to resell |
|
|
193,851 |
|
|
|
481 |
|
1.00 |
% |
|
159,400 |
|
|
|
— |
|
0.00 |
% |
Interest-bearing deposits in other financial institutions |
|
|
2,602,154 |
|
|
|
4,984 |
|
0.77 |
% |
|
1,861,861 |
|
|
|
628 |
|
0.14 |
% |
Securities borrowed |
|
|
1,273,368 |
|
|
|
10,498 |
|
3.26 |
% |
|
1,490,097 |
|
|
|
15,586 |
|
4.14 |
% |
Other |
|
|
53,962 |
|
|
|
1,013 |
|
7.53 |
% |
|
49,579 |
|
|
|
994 |
|
8.04 |
% |
Interest-earning assets, gross (3) |
|
|
16,366,581 |
|
|
|
135,549 |
|
3.32 |
% |
|
16,501,911 |
|
|
|
135,207 |
|
3.26 |
% |
Allowance for credit losses |
|
|
(91,619 |
) |
|
|
|
|
|
|
|
(144,105 |
) |
|
|
|
|
|
|
Interest-earning assets, net |
|
|
16,274,962 |
|
|
|
|
|
|
|
|
16,357,806 |
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
1,516,266 |
|
|
|
|
|
|
|
|
1,475,422 |
|
|
|
|
|
|
|
Total assets |
|
$ |
17,791,228 |
|
|
|
|
|
|
|
$ |
17,833,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing deposits |
|
$ |
7,768,772 |
|
|
$ |
5,456 |
|
0.28 |
% |
$ |
7,740,066 |
|
|
$ |
6,176 |
|
0.32 |
% |
Securities loaned |
|
|
1,114,923 |
|
|
|
8,512 |
|
3.06 |
% |
|
1,411,961 |
|
|
|
12,345 |
|
3.51 |
% |
Notes payable and other borrowings |
|
|
1,303,678 |
|
|
|
9,109 |
|
2.80 |
% |
|
1,271,609 |
|
|
|
8,381 |
|
2.64 |
% |
Total interest-bearing liabilities |
|
|
10,187,373 |
|
|
|
23,077 |
|
0.91 |
% |
|
10,423,636 |
|
|
|
26,902 |
|
1.03 |
% |
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest-bearing deposits |
|
|
4,552,424 |
|
|
|
|
|
|
|
|
4,090,425 |
|
|
|
|
|
|
|
Other liabilities |
|
|
731,635 |
|
|
|
|
|
|
|
|
872,916 |
|
|
|
|
|
|
|
Total liabilities |
|
|
15,471,432 |
|
|
|
|
|
|
|
|
15,386,977 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
2,292,816 |
|
|
|
|
|
|
|
|
2,420,436 |
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
26,980 |
|
|
|
|
|
|
|
|
25,815 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
17,791,228 |
|
|
|
|
|
|
|
$ |
17,833,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net interest income (3) |
|
|
|
|
$ |
112,472 |
|
|
|
|
|
|
$ |
108,305 |
|
|
|
||
Net interest spread (3) |
|
|
|
|
|
|
|
2.41 |
% |
|
|
|
|
|
|
2.23 |
% |
||
Net interest margin (3) |
|
|
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
2.63 |
% |
||
| _______________________________________ | |
(1) |
Information presented on a consolidated basis. |
(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
About Hilltop
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 “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “progressing,” “projects,” “seeks,” “should,” “target,” “view,” “well-tuned,” “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; (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) the COVID-19 pandemic and the response of governmental authorities to the pandemic and disruptions in global or national supply chains, which have had, and may continue to have, an adverse impact on the global economy and our business operations and performance; (vi) transitions away from the London Interbank Offered Rate; and (vii) risks associated with concentration in real estate related loans. 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005882/en/
Investor Relations Contact:
214-525-4634
eyohe@hilltop-holdings.com
Source:
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