Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2024

Rhea-AI Summary

Hilltop Holdings (NYSE: HTH) reported Q3 2024 income of $29.7 million, or $0.46 per diluted share, down from $37.0 million ($0.57 per share) in Q3 2023. The decline was attributed to lower net interest income in banking, partially offset by increased revenues in structured finance. The company's mortgage origination segment saw declines in noninterest income and expenses. Key metrics include: mortgage loan origination volume of $2.3 billion, total assets of $15.9 billion, and a quarterly cash dividend of $0.17 per share. The company maintained strong capital levels with a Tier 1 Leverage Ratio of 12.95% and Common Equity Tier 1 Capital Ratio of 20.48%.

Positive

• Strong capital position with Tier 1 Leverage Ratio of 12.95%
• Increased profitability in PlainsCapital Bank and HilltopSecurities segments
• Total deposits increased to $10.8 billion from $10.4 billion in previous quarter
• Reversal of credit losses of $1.3 million compared to provision of $10.9 million in Q2 2024

Negative

• Net income decreased 19.7% YoY to $29.7 million from $37.0 million
• Net interest margin declined to 2.84% from 3.02% YoY
• Non-accrual loans increased to 1.02% of total loans vs 0.34% YoY
• Mortgage origination segment experienced declining revenues and negative MSR valuation

Insights

Financial Analyst

HTH's Q3 2024 results show mixed performance with some concerning trends. Net income declined to $29.7 million ($0.46 per share) from $37.0 million ($0.57 per share) year-over-year. Key concerns include:

• Net interest margin compressed to 2.84% from 3.02% YoY
• Return on equity declined to 5.51% from 7.11% YoY
• Non-performing loans increased significantly to 1.02% of total loans vs 0.34% YoY

However, there are some positive indicators: strong capital ratios with CET1 at 20.48%, deposit growth of 3.8% QoQ and a $1.3 million reversal of credit losses. The mortgage business remains challenged with origination revenue down 9.9% YoY amid high rates.

Banking Expert

The banking segment's fundamentals show some deterioration but maintain resilience. While net interest margin declined to 3.05% from 3.08% YoY, the segment's return on assets at 1.14% remains solid. Concerning trends include:

• Net charge-offs of $2.89 million vs net recoveries of $1.56 million YoY
• Non-accrual loans nearly tripled YoY to $91.2 million
• Commercial & industrial non-accruals spiked to $66.9 million

The efficiency ratio deteriorated to 55.2% from 51.4% YoY, suggesting cost pressures. However, strong capital levels and stable core deposits provide important buffers against credit risks.

DALLAS--(BUSINESS WIRE)-- Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the third quarter of 2024. Hilltop produced income to common stockholders of $29.7 million, or $0.46 per diluted share, for the third quarter of 2024, compared to $37.0 million, or $0.57 per diluted share, for the third quarter of 2023. Hilltop’s financial results for the third quarter of 2024, compared with the same period in 2023, included a decline in net interest income, partially offset by changes in the provision for credit losses within the banking segment, an increase in net revenues in the structured finance and fixed income services business lines, a decline in net revenues in the wealth management business line and higher noninterest expenses within the broker-dealer segment, while the mortgage origination segment had declines in both noninterest income and expense.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on November 22, 2024, to all common stockholders of record as of the close of business on November 8, 2024.

The extent of the impacts of uncertain economic conditions on our financial performance for the remainder of 2024 will depend in part on developments outside of our control, including, among others, the timing and significance of further changes in U.S. Treasury yields and mortgage interest rates, changes in funding costs, inflationary pressures, and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, President and CEO of Hilltop, said, “Hilltop continues to demonstrate operational strength despite challenging mortgage conditions and the transitioning interest rate environment. During the quarter, PlainsCapital Bank and HilltopSecurities both increased profitability on a sequential basis, while PrimeLending’s results were impacted by lower origination volume and a negative mortgage servicing rights asset fair value mark to market adjustment. As we enter the anticipated rate cutting cycle, we are focused on strategically lowering funding costs, managing asset yields and optimizing total earning assets. We will continue to execute on our long-term strategy of serving our customers, compounding stockholder value and prudently stewarding our capital.”

Third Quarter 2024 Highlights for Hilltop:

• The reversal of credit losses was $1.3 million during the third quarter of 2024, compared to a provision for credit losses of $10.9 million in the second quarter of 2024 and a reversal of credit losses of $40 thousand in the third quarter of 2023;
  • The reversal of credit losses during the third quarter of 2024 was primarily driven by net charge-offs and loan portfolio changes, including a change in the macroeconomic outlook scenario utilized, associated with collectively evaluated loans, partially offset by a build in the allowance related to specific reserves within the banking segment since the prior quarter.
• For the third quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $79.9 million, compared to $88.7 million in the third quarter of 2023, a 9.9% decrease;
  • Mortgage loan origination production volume was $2.3 billion during the third quarter of 2024, compared to $2.2 billion in the third quarter of 2023;
  • Net gains from mortgage loans sold to third parties decreased to 224 basis points during the third quarter of 2024, compared to 233 basis points in the second quarter of 2024.
• Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the third quarter of 2024 were 0.84% and 5.51%, respectively, compared to 0.94% and 7.11%, respectively, for the third quarter of 2023;
• Hilltop’s book value per common share increased to $33.51 at September 30, 2024, compared to $32.86 at June 30, 2024;
• Hilltop’s total assets were $15.9 billion and $15.6 billion at September 30, 2024 and June 30, 2024, respectively;
• Loans¹, net of allowance for credit losses, were $7.5 billion and $7.7 billion at September 30, 2024 and June 30, 2024, respectively;
• Non-accrual loans were $91.2 million, or 1.02% of total loans, at September 30, 2024, compared to $105.7 million, or 1.12% of total loans, at June 30, 2024;
• Loans held for sale decreased by 26.2% from June 30, 2024 to $0.9 billion at September 30, 2024;
• Total deposits were $10.8 billion and $10.4 billion at September 30, 2024 and June 30, 2024, respectively;
  • Total estimated uninsured deposits were $5.3 billion, or approximately 49% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $312.3 million, were $5.0 billion, or approximately 46% of total deposits, at September 30, 2024.
• Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.95% and a Common Equity Tier 1 Capital Ratio of 20.48% at September 30, 2024;
• Hilltop’s consolidated net interest margin⁴ decreased to 2.84% for the third quarter of 2024, compared to 2.90% in the second quarter of 2024;
• For the third quarter of 2024, noninterest income was $200.4 million, compared to $196.8 million in the third quarter of 2023, a 1.8% increase;
• For third quarter of 2024, noninterest expense was $264.3 million, compared to $260.0 million in the third quarter of 2023, a 1.7% increase; and
• Hilltop’s effective tax rate was 22.5% during the third quarter of 2024, compared to 25.2% during the same period in 2023.
  • The effective tax rate for the third 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 $340.4 million and $348.3 million at September 30, 2024 and June 30, 2024, respectively.
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		September 30,				June 30,				March 31,				December 31,				September 30,
(in 000's)		2024				2024				2024				2023				2023
Cash and due from banks		$	1,961,627			$	798,300			$	1,710,066			$	1,858,700			$	1,513,747
Federal funds sold			3,650				5,650				650				650				3,650
Assets segregated for regulatory purposes			55,628				51,046				70,717				57,395				47,491
Securities purchased under agreements to resell			81,766				111,914				91,608				80,011				123,719
Securities:
Trading, at fair value			540,836				721,384				657,700				515,991				578,901
Available for sale, at fair value, net (1)			1,405,700				1,433,107				1,480,555				1,507,595				1,456,238
Held to maturity, at amortized cost, net (1)			754,824				777,456				790,550				812,677				825,079
Equity, at fair value			287				254				315				321				264
			2,701,647				2,932,201				2,929,120				2,836,584				2,860,482
Loans held for sale			933,724				1,264,437				842,324				943,846				1,058,806
Loans held for investment, net of unearned income			7,979,630				8,173,520				8,062,693				8,079,745				8,204,052
Allowance for credit losses			(110,918	)			(115,082	)			(104,231	)			(111,413	)			(110,822	)
Loans held for investment, net			7,868,712				8,058,438				7,958,462				7,968,332				8,093,230
Broker-dealer and clearing organization receivables			1,220,784				1,297,175				1,473,561				1,573,931				1,460,352
Premises and equipment, net			157,803				161,746				165,557				168,856				172,097
Operating lease right-of-use assets			92,041				93,994				95,343				88,580				93,057
Mortgage servicing assets			45,742				52,902				95,591				96,662				104,951
Other assets			528,839				517,811				501,244				517,545				588,751
Goodwill			267,447				267,447				267,447				267,447				267,447
Other intangible assets, net			6,995				7,429				7,943				8,457				9,078
Total assets		$	15,926,405			$	15,620,490			$	16,209,633			$	16,466,996			$	16,396,858
Deposits:
Noninterest-bearing		$	2,831,539			$	2,845,441			$	3,028,543			$	3,007,101			$	3,200,247
Interest-bearing			7,959,908				7,528,415				7,855,553				8,056,091				7,902,850
Total deposits			10,791,447				10,373,856				10,884,096				11,063,192				11,103,097
Broker-dealer and clearing organization payables			1,110,373				1,285,226				1,436,462				1,430,734				1,368,064
Short-term borrowings			914,645				897,613				892,574				900,038				882,999
Securities sold, not yet purchased, at fair value			47,773				75,546				60,562				34,872				51,527
Notes payable			347,533				347,402				347,273				347,145				347,020
Operating lease liabilities			110,799				113,096				114,518				109,002				114,334
Other liabilities			397,976				365,140				314,718				431,684				422,955
Total liabilities			13,720,546				13,457,879				14,050,203				14,316,667				14,289,996
Common stock			650				650				653				652				652
Additional paid-in capital			1,050,497				1,047,523				1,049,831				1,054,662				1,052,867
Accumulated other comprehensive loss			(98,168	)			(119,171	)			(119,606	)			(121,505	)			(145,083	)
Retained earnings			1,224,117				1,205,467				1,201,013				1,189,222				1,171,250
Deferred compensation employee stock trust, net			—				1				115				228				340
Employee stock trust			—				(1	)			(142	)			(292	)			(446	)
Total Hilltop stockholders' equity			2,177,096				2,134,469				2,131,864				2,122,967				2,079,580
Noncontrolling interests			28,763				28,142				27,566				27,362				27,282
Total stockholders' equity			2,205,859				2,162,611				2,159,430				2,150,329				2,106,862
Total liabilities & stockholders' equity		$	15,926,405			$	15,620,490			$	16,209,633			$	16,466,996			$	16,396,858

(1)

At September 30, 2024, the amortized cost of the available for sale securities portfolio was $1,489,070, while the fair value of the held to maturity securities portfolio was $690,846.

		Three Months Ended
Consolidated Income Statements		September 30,				June 30,			March 31,				December 31,			September 30,
(in 000's, except per share data)		2024				2024			2024				2023			2023
Interest income:
Loans, including fees		$	139,821			$	138,627		$	134,331			$	138,096		$	142,402
Securities borrowed			19,426				20,306			20,561				18,659			17,683
Securities:
Taxable			26,265				25,289			26,241				28,763			27,166
Tax-exempt			2,438				2,389			2,415				2,545			2,464
Other			23,092				20,532			26,066				28,704			27,040
Total interest income			211,042				207,143			209,614				216,767			216,755
Interest expense:
Deposits			70,641				68,095			69,144				68,339			64,290
Securities loaned			18,499				18,669			19,039				17,247			16,169
Short-term borrowings			10,878				10,676			11,588				13,495			14,212
Notes payable			3,555				3,604			3,590				3,596			4,026
Other			2,426				2,449			2,632				2,864			2,408
Total interest expense			105,999				103,493			105,993				105,541			101,105
Net interest income			105,043				103,650			103,621				111,226			115,650
Provision for (reversal of) credit losses			(1,270	)			10,934			(2,871	)			1,265			(40	)
Net interest income after provision for (reversal of) credit losses			106,313				92,716			106,492				109,961			115,690
Noninterest income:
Net gains from sale of loans and other mortgage production income			47,816				58,455			40,197				36,387			47,262
Mortgage loan origination fees			32,119				34,398			26,438				32,844			41,478
Securities commissions and fees			30,434				29,510			30,373				27,380			22,864
Investment and securities advisory fees and commissions			42,220				32,992			30,226				35,780			39,662
Other			47,854				37,950			54,384				46,587			45,583
Total noninterest income			200,443				193,305			181,618				178,978			196,849
Noninterest expense:
Employees' compensation and benefits			177,987				169,998			165,830				160,390			173,195
Occupancy and equipment, net			22,317				21,297			21,912				21,524			21,912
Professional services			11,645				10,270			9,731				13,170			12,639
Other			52,363				54,899			52,550				55,761			52,271
Total noninterest expense			264,312				256,464			250,023				250,845			260,017
Income before income taxes			42,444				29,557			38,087				38,094			52,522
Income tax expense			9,539				6,658			8,565				7,132			13,211
Net income			32,905				22,899			29,522				30,962			39,311
Less: Net income attributable to noncontrolling interest			3,212				2,566			1,854				2,291			2,269
Income attributable to Hilltop		$	29,693			$	20,333		$	27,668			$	28,671		$	37,042
Earnings per common share:
Basic		$	0.46			$	0.31		$	0.42			$	0.44		$	0.57
Diluted		$	0.46			$	0.31		$	0.42			$	0.44		$	0.57
Cash dividends declared per common share		$	0.17			$	0.17		$	0.17			$	0.16		$	0.16
Weighted average shares outstanding:
Basic			64,928				65,085			65,200				65,136			65,106
Diluted			64,946				65,086			65,214				65,138			65,108

		Three Months Ended September 30, 2024
Segment Results									Mortgage								All Other and				Hilltop
(in 000's)		Banking				Broker-Dealer			Origination				Corporate				Eliminations				Consolidated
Net interest income (expense)		$	93,536			$	12,409		$	(4,417	)		$	(3,303	)		$	6,818			$	105,043
Provision for (reversal of) credit losses			(1,440	)			170			—				—				—				(1,270	)
Noninterest income			10,726				111,849			79,922				4,962				(7,016	)			200,443
Noninterest expense			57,557				107,094			84,223				15,631				(193	)			264,312
Income (loss) before taxes		$	48,145			$	16,994		$	(8,718	)		$	(13,972	)		$	(5	)		$	42,444

		Nine Months Ended September 30, 2024
Segment Results								Mortgage								All Other and				Hilltop
(in 000's)		Banking			Broker-Dealer			Origination				Corporate				Eliminations				Consolidated
Net interest income (expense)		$	277,600		$	36,896		$	(13,240	)		$	(9,560	)		$	20,618			$	312,314
Provision for (reversal of) credit losses			6,657			136			—				—				—				6,793
Noninterest income			31,884			308,480			239,489				16,747				(21,234	)			575,366
Noninterest expense			171,527			302,102			250,067				47,731				(628	)			770,799
Income (loss) before taxes		$	131,300		$	43,138		$	(23,818	)		$	(40,544	)		$	12			$	110,088

		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
Selected Financial Data		2024				2024				2024				2023				2023
Hilltop Consolidated:
Return on average stockholders' equity			5.51	%			3.84	%			5.23	%			5.46	%			7.11	%
Return on average assets			0.84	%			0.59	%			0.74	%			0.75	%			0.94	%
Net interest margin (1)			2.84	%			2.90	%			2.85	%			2.96	%			3.02	%
Net interest margin (taxable equivalent) (2):
As reported			2.85	%			2.92	%			2.87	%			2.98	%			3.04	%
Impact of purchase accounting			2 bps				6 bps				4 bps				4 bps				7 bps
Book value per common share ($)			33.51				32.86				32.66				32.58				31.91
Shares outstanding, end of period (000's)			64,960				64,953				65,267				65,153				65,170
Dividend payout ratio (3)			37.17	%			54.42	%			40.06	%			36.35	%			28.12	%
Banking Segment:
Net interest margin (1)			3.05	%			3.10	%			3.00	%			2.94	%			3.08	%
Net interest margin (taxable equivalent) (2):
As reported			3.06	%			3.10	%			3.00	%			2.95	%			3.09	%
Impact of purchase accounting			3 bps				7 bps				5 bps				5 bps				8 bps
Accretion of discount on loans ($000's)			737				1,945				1,299				1,202				2,226
Net recoveries (charge-offs) ($000's)			(2,894	)			(83	)			(4,311	)			(674	)			1,556
Return on average assets			1.14	%			0.81	%			1.20	%			1.12	%			1.20	%
Fee income ratio			10.3	%			9.1	%			11.5	%			11.2	%			10.5	%
Efficiency ratio			55.2	%			57.0	%			54.1	%			53.2	%			51.4	%
Employees' compensation and benefits ($000's)			31,920				33,352				32,389				29,420				30,641
Broker-Dealer Segment:
Net revenue ($000's) (4)			124,258				104,271				116,847				119,989				118,703
Employees' compensation and benefits ($000's)			75,912				66,181				69,457				68,746				69,930
Variable compensation expense ($000's)			42,569				32,734				35,274				39,435				39,929
Compensation as a % of net revenue			61.1	%			63.5	%			59.4	%			57.3	%			58.9	%
Pre-tax margin (5)			13.7	%			6.9	%			16.2	%			16.8	%			18.2	%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases			2,096,009				2,205,157				1,548,941				1,698,009				2,091,444
Refinancings			211,454				174,141				127,545				117,018				152,257
Total mortgage loan originations - volume			2,307,463				2,379,298				1,676,486				1,815,027				2,243,701
Mortgage loan sales - volume ($000's)			2,569,678				1,838,841				1,749,857				1,874,001				2,395,357
Net gains from mortgage loan sales (basis points):
Loans sold to third parties			224				233				221				189				199
Impact of loans retained by banking segment			0				(5	)			(5	)			0				(1	)
As reported			224				228				216				189				198
Mortgage servicing rights asset ($000's) (6)			45,742				52,902				95,591				96,662				104,951
Employees' compensation and benefits ($000's)			60,573				61,624				52,694				53,766				64,016
Variable compensation expense ($000's)			33,862				34,886				22,188				24,085				33,070

(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 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) was $0.6 million for each of the periods presented and for the banking segment were $0.2 million, $0.1 million, $0.1 million, $0.2 million and $0.2 million, respectively, for the periods presented.
(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.

		September 30,				June 30,				March 31,				December 31,				September 30,
Capital Ratios		2024				2024				2024				2023				2023
Tier 1 capital (to average assets):
PlainsCapital			10.34	%			11.36	%			11.00	%			10.55	%			10.62	%
Hilltop			12.95	%			12.87	%			12.49	%			12.23	%			11.92	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital			14.94	%			15.58	%			15.87	%			15.44	%			15.31	%
Hilltop			20.48	%			19.45	%			19.73	%			19.32	%			18.60	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital			14.94	%			15.58	%			15.87	%			15.44	%			15.31	%
Hilltop			20.48	%			19.45	%			19.73	%			19.32	%			18.60	%
Total capital (to risk-weighted assets):
PlainsCapital			16.13	%			16.77	%			17.06	%			16.58	%			16.45	%
Hilltop			23.68	%			22.57	%			22.79	%			22.34	%			21.54	%

		September 30,				June 30,				March 31,				December 31,				September 30,
Non-Performing Assets Portfolio Data		2024				2024				2024				2023				2023
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate:
Non-owner occupied		$	8,042			$	6,894			$	34,661			$	36,440			$	2,375
Owner occupied			2,410				6,437				4,846				5,098				4,964
Commercial and industrial			66,929				80,755				12,165				9,502				10,190
Construction and land development			2,682				485				698				3,480				760
1-4 family residential			11,123				11,092				12,363				13,801				13,202
Consumer			—				1				3				6				7
Broker-dealer			—				—				—				—				—
Non-accrual loans ($000's)		$	91,186			$	105,664			$	64,736			$	68,327			$	31,498
Non-accrual loans as a % of total loans			1.02	%			1.12	%			0.73	%			0.76	%			0.34	%
Other real estate owned ($000's)			2,744				2,973				5,254				5,095				5,386
Other repossessed assets ($000's)			413				464				472				—				—
Non-performing assets ($000's)			94,343				109,101				70,462				73,422				36,884
Non-performing assets as a % of total assets			0.59	%			0.70	%			0.43	%			0.45	%			0.22	%
Loans past due 90 days or more and still accruing ($000's) (1)			140,763				122,451				112,799				115,090				106,346

(1)

Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending.

		Three Months Ended September 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		$	990,902			$	14,645		5.91	%	$	1,075,518			$	15,649		5.82	%
Loans held for investment, gross (2)			8,024,771				125,176		6.19	%		7,972,604				126,753		6.31	%
Investment securities - taxable			2,477,014				26,264		4.24	%		2,690,977				27,166		4.04	%
Investment securities - non-taxable (3)			323,479				3,020		3.73	%		315,294				3,069		3.89	%
Federal funds sold and securities purchased under agreements to resell			97,686				1,845		7.49	%		142,324				2,313		6.45	%
Interest-bearing deposits in other financial institutions			1,373,051				17,800		5.14	%		1,550,991				20,320		5.20	%
Securities borrowed			1,260,420				19,426		6.03	%		1,371,625				17,683		5.04	%
Other			137,105				3,447		9.97	%		69,827				4,407		25.04	%
Interest-earning assets, gross (3)			14,684,428				211,623		5.72	%		15,189,160				217,360		5.68	%
Allowance for credit losses			(115,113	)								(110,398	)
Interest-earning assets, net			14,569,315									15,078,762
Noninterest-earning assets			1,070,833									1,448,834
Total assets		$	15,640,148								$	16,527,596
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits		$	7,744,588			$	70,641		3.62	%	$	7,893,384			$	64,290		3.23	%
Securities loaned			1,247,392				18,499		5.88	%		1,303,883				16,169		4.92	%
Notes payable and other borrowings			1,333,671				16,859		5.02	%		1,527,371				20,646		5.36	%
Total interest-bearing liabilities			10,325,651				105,999		4.07	%		10,724,638				101,105		3.74	%
Noninterest-bearing liabilities
Noninterest-bearing deposits			2,737,942									3,347,752
Other liabilities			405,768									362,133
Total liabilities			13,469,361									14,434,523
Stockholders’ equity			2,143,252									2,066,564
Noncontrolling interest			27,535									26,509
Total liabilities and stockholders' equity		$	15,640,148								$	16,527,596
Net interest income (3)						$	105,624								$	116,255
Net interest spread (3)									1.65	%								1.94	%
Net interest margin (3)									2.85	%								3.04	%

(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 21% federal income tax rate for the periods presented. The adjustment to interest income was $0.6 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, October 25, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review third quarter 2024 financial results. Interested parties can access the conference call by dialing 800-267-6316 (North America) or 203-518-9856 (International) and then using the conference ID HH3Q24. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop.com).

About Hilltop

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At September 30, 2024, Hilltop employed approximately 3,650 people and operated approximately 310 locations in 48 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange under the symbol “HTH.” Find more information at Hilltop.com, PlainsCapital.com, PrimeLending.com and HilltopSecurities.com.

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; (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/20241024859859/en/

Investor Relations Contact:

Matt Dunn

214-525-4636

mdunn@hilltop.com

Source: Hilltop Holdings Inc.

FAQ

What was Hilltop Holdings (HTH) earnings per share in Q3 2024?

Hilltop Holdings reported earnings of $0.46 per diluted share in Q3 2024.

What was HTH's total mortgage loan origination volume in Q3 2024?

Hilltop Holdings' mortgage loan origination volume was $2.3 billion during Q3 2024.

What dividend did HTH declare for Q3 2024?

Hilltop Holdings declared a quarterly cash dividend of $0.17 per common share, payable on November 22, 2024.

What was HTH's net interest margin in Q3 2024?

Hilltop Holdings' consolidated net interest margin was 2.84% for Q3 2024.