DALLAS–(BUSINESS WIRE)–Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter of 2024. Hilltop produced income to common stockholders of $27.7 million, or $0.42 per diluted share, for the first quarter of 2024, compared to $25.8 million, or $0.40 per diluted share, for the first quarter of 2023. Hilltop’s financial results for the first quarter of 2024 included a decline in net interest income, partially offset by a reversal of credit losses due to an improved economic outlook within the banking segment, an increase in net revenues within certain of the broker-dealer segment’s business lines, and a decline in other mortgage production income, partially offset by an increase in net gains from sale of loans within the mortgage origination segment.
Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on May 24, 2024, to all common stockholders of record as of the close of business on May 10, 2024. Additionally, during the first quarter of 2024, Hilltop paid $9.9 million to repurchase an aggregate of 320,042 shares of its common stock at an average price of $31.04 per share pursuant to the 2024 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock.
The impacts of economic headwinds that began in 2022, and 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 U.S. treasury yields and mortgage interest rates, exposure to increasing funding costs, inflationary pressures associated with compensation, occupancy and software costs and labor market conditions, and international armed conflicts and their impact on supply chains.
Jeremy B. Ford, President and CEO of Hilltop, said, “Hilltop’s operating results for the first quarter of 2024 reflect a general continuation in market trends that were experienced throughout 2023. The elevated interest rate environment continues to impact our net interest margin primarily through increased borrowing costs. Additionally, a lack of housing inventory and pressured home buying affordability limited mortgage origination volumes. Despite these pressures, Hilltop’s robust liquidity position allowed for a return of high-cost deposits.
“During the quarter, PlainsCapital Bank produced an annualized return on average assets of 1.20% highlighting the steady earnings power of the franchise. HilltopSecurities delivered a pre-tax margin of 16% on net revenues of $117 million, primarily due to strong results from the structured finance and wealth management business lines. As previously mentioned, PrimeLending’s results remain challenged due to elevated mortgage rates and suboptimal housing inventory across the country. From a consolidated perspective, we will continue to protect our strong balance sheet position and aim to produce results that improve our tangible book value per share over time.”
First Quarter 2024 Highlights for Hilltop:
-
The reversal of credit losses was $2.9 million during the first quarter of 2024, compared to a provision for credit losses of $1.3 million in the fourth quarter of 2023 and a provision for credit losses of $2.3 million in the first quarter of 2023;
- The reversal of credit losses during the first quarter of 2024 reflected a release in the allowance related to improvements to the U.S. economic outlook since the prior quarter, partially offset by increases in specific reserves within the banking segment.
-
For the first quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within the mortgage origination segment was $66.6 million, compared to $68.7 million in the first quarter of 2023, a 3.1% decrease;
- Mortgage loan origination production volume was $1.7 billion during the first quarter of 2024, compared to $1.7 billion in the first quarter of 2023;
- Net gains from mortgage loans sold to third parties increased to 221 basis points during the first quarter of 2024, compared to 189 basis points in the fourth quarter of 2023.
- Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the first quarter of 2024 were 0.74% and 5.23%, respectively, compared to 0.69% and 5.12%, respectively, for the first quarter of 2023;
- Hilltop’s book value per common share increased to $32.66 at March 31, 2024, compared to $32.58 at December 31, 2023;
- Hilltop’s total assets were $16.2 billion and $16.5 billion at March 31, 2024 and December 31, 2023, respectively;
- Loans1, net of allowance for credit losses, were $7.6 billion at each of March 31, 2024 and December 31, 2023, respectively;
-
Non-accrual loans were $64.7 million, or 0.73% of total loans, at March 31, 2024, compared to $68.3 million, or 0.76% of total loans, at December 31, 2023;
- Non-accrual loans at March 31, 2024 included a single non-owner occupied commercial real estate credit relationship within our hotel/motel portfolio industry subsector that was reclassified since the prior period from loans held for investment to loans held for sale.
- Loans held for sale decreased by 10.8% from December 31, 2023 to $0.8 billion at March 31, 2024;
-
Total deposits were $10.9 billion and $11.1 billion at March 31, 2024 and December 31, 2023, respectively;
- Total estimated uninsured deposits were $4.8 billion, or approximately 44% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $360.5 million, were $4.5 billion, or approximately 41% of total deposits, at March 31, 2024.
- Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of 12.49% and a Common Equity Tier 1 Capital Ratio of 19.73% at March 31, 2024;
- Hilltop’s consolidated net interest margin4 decreased to 2.85% for the first quarter of 2024, compared to 2.96% in the fourth quarter of 2023;
- For the first quarter of 2024, noninterest income was $181.6 million, compared to $162.5 million in the first quarter of 2023, an 11.8% increase;
- For the first quarter of 2024, noninterest expense was $250.0 million, compared to $250.5 million in the first quarter of 2023, a 0.2% decrease; and
-
Hilltop’s effective tax rate was 22.5% during the first quarter of 2024, compared to 11.6% during the same period in 2023.
- The effective tax rate for the first 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 $332.6 million and $344.1 million at March 31, 2024 and December 31, 2023, 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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
(in 000’s) |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
Cash and due from banks |
|
$ |
1,710,066 |
|
|
$ |
1,858,700 |
|
|
$ |
1,513,747 |
|
|
$ |
1,584,709 |
|
|
$ |
1,764,081 |
|
Federal funds sold |
|
|
650 |
|
|
|
650 |
|
|
|
3,650 |
|
|
|
650 |
|
|
|
743 |
|
Assets segregated for regulatory purposes |
|
|
70,717 |
|
|
|
57,395 |
|
|
|
47,491 |
|
|
|
50,711 |
|
|
|
36,199 |
|
Securities purchased under agreements to resell |
|
|
91,608 |
|
|
|
80,011 |
|
|
|
123,719 |
|
|
|
143,982 |
|
|
|
144,201 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Trading, at fair value |
|
|
657,700 |
|
|
|
515,991 |
|
|
|
578,901 |
|
|
|
696,649 |
|
|
|
692,908 |
|
Available for sale, at fair value, net (1) |
|
|
1,480,555 |
|
|
|
1,507,595 |
|
|
|
1,456,238 |
|
|
|
1,526,869 |
|
|
|
1,641,571 |
|
Held to maturity, at amortized cost, net (1) |
|
|
790,550 |
|
|
|
812,677 |
|
|
|
825,079 |
|
|
|
847,437 |
|
|
|
862,280 |
|
Equity, at fair value |
|
|
315 |
|
|
|
321 |
|
|
|
264 |
|
|
|
258 |
|
|
|
231 |
|
|
|
|
2,929,120 |
|
|
|
2,836,584 |
|
|
|
2,860,482 |
|
|
|
3,071,213 |
|
|
|
3,196,990 |
|
Loans held for sale |
|
|
842,324 |
|
|
|
943,846 |
|
|
|
1,058,806 |
|
|
|
1,333,044 |
|
|
|
1,040,138 |
|
Loans held for investment, net of unearned income |
|
|
8,062,693 |
|
|
|
8,079,745 |
|
|
|
8,204,052 |
|
|
|
8,354,122 |
|
|
|
8,192,846 |
|
Allowance for credit losses |
|
|
(104,231 |
) |
|
|
(111,413 |
) |
|
|
(110,822 |
) |
|
|
(109,306 |
) |
|
|
(97,354 |
) |
Loans held for investment, net |
|
|
7,958,462 |
|
|
|
7,968,332 |
|
|
|
8,093,230 |
|
|
|
8,244,816 |
|
|
|
8,095,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Broker-dealer and clearing organization receivables |
|
|
1,473,561 |
|
|
|
1,573,931 |
|
|
|
1,460,352 |
|
|
|
1,474,177 |
|
|
|
1,560,246 |
|
Premises and equipment, net |
|
|
165,557 |
|
|
|
168,856 |
|
|
|
172,097 |
|
|
|
176,574 |
|
|
|
180,132 |
|
Operating lease right-of-use assets |
|
|
95,343 |
|
|
|
88,580 |
|
|
|
93,057 |
|
|
|
97,979 |
|
|
|
100,122 |
|
Mortgage servicing assets |
|
|
95,591 |
|
|
|
96,662 |
|
|
|
104,951 |
|
|
|
95,101 |
|
|
|
103,314 |
|
Other assets |
|
|
501,244 |
|
|
|
517,545 |
|
|
|
588,751 |
|
|
|
588,166 |
|
|
|
529,438 |
|
Goodwill |
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
Other intangible assets, net |
|
|
7,943 |
|
|
|
8,457 |
|
|
|
9,078 |
|
|
|
9,772 |
|
|
|
10,544 |
|
Total assets |
|
$ |
16,209,633 |
|
|
$ |
16,466,996 |
|
|
$ |
16,396,858 |
|
|
$ |
17,138,341 |
|
|
$ |
17,029,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing |
|
$ |
3,028,543 |
|
|
$ |
3,007,101 |
|
|
$ |
3,200,247 |
|
|
$ |
3,451,438 |
|
|
$ |
3,807,878 |
|
Interest-bearing |
|
|
7,855,553 |
|
|
|
8,056,091 |
|
|
|
7,902,850 |
|
|
|
7,712,739 |
|
|
|
7,289,269 |
|
Total deposits |
|
|
10,884,096 |
|
|
|
11,063,192 |
|
|
|
11,103,097 |
|
|
|
11,164,177 |
|
|
|
11,097,147 |
|
Broker-dealer and clearing organization payables |
|
|
1,436,462 |
|
|
|
1,430,734 |
|
|
|
1,368,064 |
|
|
|
1,306,646 |
|
|
|
1,383,317 |
|
Short-term borrowings |
|
|
892,574 |
|
|
|
900,038 |
|
|
|
882,999 |
|
|
|
1,628,637 |
|
|
|
1,572,794 |
|
Securities sold, not yet purchased, at fair value |
|
|
60,562 |
|
|
|
34,872 |
|
|
|
51,527 |
|
|
|
74,761 |
|
|
|
51,497 |
|
Notes payable |
|
|
347,273 |
|
|
|
347,145 |
|
|
|
347,020 |
|
|
|
364,531 |
|
|
|
376,410 |
|
Operating lease liabilities |
|
|
114,518 |
|
|
|
109,002 |
|
|
|
114,334 |
|
|
|
119,999 |
|
|
|
122,878 |
|
Other liabilities |
|
|
314,718 |
|
|
|
431,684 |
|
|
|
422,955 |
|
|
|
389,336 |
|
|
|
341,246 |
|
Total liabilities |
|
|
14,050,203 |
|
|
|
14,316,667 |
|
|
|
14,289,996 |
|
|
|
15,048,087 |
|
|
|
14,945,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock |
|
|
653 |
|
|
|
652 |
|
|
|
652 |
|
|
|
651 |
|
|
|
650 |
|
Additional paid-in capital |
|
|
1,049,831 |
|
|
|
1,054,662 |
|
|
|
1,052,867 |
|
|
|
1,050,191 |
|
|
|
1,044,774 |
|
Accumulated other comprehensive loss |
|
|
(119,606 |
) |
|
|
(121,505 |
) |
|
|
(145,083 |
) |
|
|
(131,718 |
) |
|
|
(125,461 |
) |
Retained earnings |
|
|
1,201,013 |
|
|
|
1,189,222 |
|
|
|
1,171,250 |
|
|
|
1,144,624 |
|
|
|
1,136,901 |
|
Deferred compensation employee stock trust, net |
|
|
115 |
|
|
|
228 |
|
|
|
340 |
|
|
|
450 |
|
|
|
446 |
|
Employee stock trust |
|
|
(142 |
) |
|
|
(292 |
) |
|
|
(446 |
) |
|
|
(599 |
) |
|
|
(599 |
) |
Total Hilltop stockholders’ equity |
|
|
2,131,864 |
|
|
|
2,122,967 |
|
|
|
2,079,580 |
|
|
|
2,063,599 |
|
|
|
2,056,711 |
|
Noncontrolling interests |
|
|
27,566 |
|
|
|
27,362 |
|
|
|
27,282 |
|
|
|
26,655 |
|
|
|
27,087 |
|
Total stockholders’ equity |
|
|
2,159,430 |
|
|
|
2,150,329 |
|
|
|
2,106,862 |
|
|
|
2,090,254 |
|
|
|
2,083,798 |
|
Total liabilities & stockholders’ equity |
|
$ |
16,209,633 |
|
|
$ |
16,466,996 |
|
|
$ |
16,396,858 |
|
|
$ |
17,138,341 |
|
|
$ |
17,029,087 |
|
_____________________________ | ||
(1) |
At March 31, 2024, the amortized cost of the available for sale securities portfolio was $1,594,167, while the fair value of the held to maturity securities portfolio was $702,843. |
|
|
Three Months Ended |
|||||||||||||||
Consolidated Income Statements |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||||
(in 000’s, except per share data) |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loans, including fees |
|
$ |
134,331 |
|
|
$ |
138,096 |
|
$ |
142,402 |
|
|
$ |
138,397 |
|
$ |
123,379 |
Securities borrowed |
|
|
20,561 |
|
|
|
18,659 |
|
|
17,683 |
|
|
|
18,515 |
|
|
17,068 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Taxable |
|
|
26,241 |
|
|
|
28,763 |
|
|
27,166 |
|
|
|
26,719 |
|
|
25,602 |
Tax-exempt |
|
|
2,415 |
|
|
|
2,545 |
|
|
2,464 |
|
|
|
2,566 |
|
|
3,188 |
Other |
|
|
26,066 |
|
|
|
28,704 |
|
|
27,040 |
|
|
|
27,229 |
|
|
22,190 |
Total interest income |
|
|
209,614 |
|
|
|
216,767 |
|
|
216,755 |
|
|
|
213,426 |
|
|
191,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deposits |
|
|
69,144 |
|
|
|
68,339 |
|
|
64,290 |
|
|
|
54,726 |
|
|
35,824 |
Securities loaned |
|
|
19,039 |
|
|
|
17,247 |
|
|
16,169 |
|
|
|
16,413 |
|
|
15,346 |
Short-term borrowings |
|
|
11,588 |
|
|
|
13,495 |
|
|
14,212 |
|
|
|
17,706 |
|
|
12,444 |
Notes payable |
|
|
3,590 |
|
|
|
3,596 |
|
|
4,026 |
|
|
|
3,973 |
|
|
3,853 |
Other |
|
|
2,632 |
|
|
|
2,864 |
|
|
2,408 |
|
|
|
2,342 |
|
|
2,255 |
Total interest expense |
|
|
105,993 |
|
|
|
105,541 |
|
|
101,105 |
|
|
|
95,160 |
|
|
69,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net interest income |
|
|
103,621 |
|
|
|
111,226 |
|
|
115,650 |
|
|
|
118,266 |
|
|
121,705 |
Provision for (reversal of) credit losses |
|
|
(2,871 |
) |
|
|
1,265 |
|
|
(40 |
) |
|
|
14,836 |
|
|
2,331 |
Net interest income after provision for (reversal of) credit losses |
|
|
106,492 |
|
|
|
109,961 |
|
|
115,690 |
|
|
|
103,430 |
|
|
119,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net gains from sale of loans and other mortgage production income |
|
|
40,197 |
|
|
|
36,387 |
|
|
47,262 |
|
|
|
48,535 |
|
|
39,966 |
Mortgage loan origination fees |
|
|
26,438 |
|
|
|
32,844 |
|
|
41,478 |
|
|
|
41,440 |
|
|
28,777 |
Securities commissions and fees |
|
|
35,557 |
|
|
|
33,002 |
|
|
28,044 |
|
|
|
29,606 |
|
|
31,223 |
Investment and securities advisory fees and commissions |
|
|
30,226 |
|
|
|
35,780 |
|
|
39,662 |
|
|
|
32,037 |
|
|
26,848 |
Other |
|
|
49,200 |
|
|
|
40,965 |
|
|
40,403 |
|
|
|
39,034 |
|
|
35,680 |
Total noninterest income |
|
|
181,618 |
|
|
|
178,978 |
|
|
196,849 |
|
|
|
190,652 |
|
|
162,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Employees’ compensation and benefits |
|
|
165,830 |
|
|
|
160,390 |
|
|
173,195 |
|
|
|
176,908 |
|
|
167,817 |
Occupancy and equipment, net |
|
|
21,912 |
|
|
|
21,524 |
|
|
21,912 |
|
|
|
23,025 |
|
|
22,865 |
Professional services |
|
|
9,731 |
|
|
|
13,170 |
|
|
12,639 |
|
|
|
12,594 |
|
|
10,697 |
Other |
|
|
52,550 |
|
|
|
55,761 |
|
|
52,271 |
|
|
|
54,450 |
|
|
49,091 |
Total noninterest expense |
|
|
250,023 |
|
|
|
250,845 |
|
|
260,017 |
|
|
|
266,977 |
|
|
250,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Income before income taxes |
|
|
38,087 |
|
|
|
38,094 |
|
|
52,522 |
|
|
|
27,105 |
|
|
31,398 |
Income tax expense |
|
|
8,565 |
|
|
|
7,132 |
|
|
13,211 |
|
|
|
7,167 |
|
|
3,630 |
Net income |
|
|
29,522 |
|
|
|
30,962 |
|
|
39,311 |
|
|
|
19,938 |
|
|
27,768 |
Less: Net income attributable to noncontrolling interest |
|
|
1,854 |
|
|
|
2,291 |
|
|
2,269 |
|
|
|
1,805 |
|
|
1,968 |
Income attributable to Hilltop |
|
$ |
27,668 |
|
|
$ |
28,671 |
|
$ |
37,042 |
|
|
$ |
18,133 |
|
$ |
25,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
0.42 |
|
|
$ |
0.44 |
|
$ |
0.57 |
|
|
$ |
0.28 |
|
$ |
0.40 |
Diluted |
|
$ |
0.42 |
|
|
$ |
0.44 |
|
$ |
0.57 |
|
|
$ |
0.28 |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash dividends declared per common share |
|
$ |
0.17 |
|
|
$ |
0.16 |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
65,200 |
|
|
|
65,136 |
|
|
65,106 |
|
|
|
65,025 |
|
|
64,901 |
Diluted |
|
|
65,214 |
|
|
|
65,138 |
|
|
65,108 |
|
|
|
65,054 |
|
|
64,954 |
|
|
Three Months Ended March 31, 2024 |
||||||||||||||||||||||
Segment Results |
|
|
|
|
|
|
|
Mortgage |
|
|
|
|
All Other and |
|
Hilltop |
|||||||||
(in 000’s) |
|
Banking |
|
Broker-Dealer |
|
Origination |
|
Corporate |
|
Eliminations |
|
Consolidated |
||||||||||||
Net interest income (expense) |
|
$ |
91,606 |
|
|
$ |
12,269 |
|
|
$ |
(4,252 |
) |
|
$ |
(3,103 |
) |
|
$ |
7,101 |
|
|
$ |
103,621 |
|
Provision for (reversal of) credit losses |
|
|
(2,853 |
) |
|
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,871 |
) |
Noninterest income |
|
|
11,903 |
|
|
|
104,578 |
|
|
|
66,700 |
|
|
|
5,785 |
|
|
|
(7,348 |
) |
|
|
181,618 |
|
Noninterest expense |
|
|
56,020 |
|
|
|
97,947 |
|
|
|
78,898 |
|
|
|
17,384 |
|
|
|
(226 |
) |
|
|
250,023 |
|
Income (loss) before taxes |
|
$ |
50,342 |
|
|
$ |
18,918 |
|
|
$ |
(16,450 |
) |
|
$ |
(14,702 |
) |
|
$ |
(21 |
) |
|
$ |
38,087 |
|
|
|
Three Months Ended |
|||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||
Selected Financial Data |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Hilltop Consolidated: |
|
|
|
|
|
|
|
|
|
|
|||||
Return on average stockholders’ equity |
|
5.23 |
% |
|
5.46 |
% |
|
7.11 |
% |
|
3.53 |
% |
|
5.12 |
% |
Return on average assets |
|
0.74 |
% |
|
0.75 |
% |
|
0.94 |
% |
|
0.47 |
% |
|
0.69 |
% |
Net interest margin (1) |
|
2.85 |
% |
|
2.96 |
% |
|
3.02 |
% |
|
3.03 |
% |
|
3.28 |
% |
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|||||
As reported |
|
2.87 |
% |
|
2.98 |
% |
|
3.04 |
% |
|
3.03 |
% |
|
3.28 |
% |
Impact of purchase accounting |
|
4 bps |
|
4 bps |
|
7 bps |
|
9 bps |
|
6 bps |
|||||
Book value per common share ($) |
|
32.66 |
|
|
32.58 |
|
|
31.91 |
|
|
31.71 |
|
|
31.63 |
|
Shares outstanding, end of period (000’s) |
|
65,267 |
|
|
65,153 |
|
|
65,170 |
|
|
65,071 |
|
|
65,023 |
|
Dividend payout ratio (3) |
|
40.06 |
% |
|
36.35 |
% |
|
28.12 |
% |
|
57.37 |
% |
|
40.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|||||
Net interest margin (1) |
|
3.00 |
% |
|
2.94 |
% |
|
3.08 |
% |
|
3.11 |
% |
|
3.40 |
% |
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|||||
As reported |
|
3.00 |
% |
|
2.95 |
% |
|
3.09 |
% |
|
3.11 |
% |
|
3.41 |
% |
Impact of purchase accounting |
|
5 bps |
|
5 bps |
|
8 bps |
|
11 bps |
|
7 bps |
|||||
Accretion of discount on loans ($000’s) |
|
1,299 |
|
|
1,202 |
|
|
2,226 |
|
|
3,334 |
|
|
1,870 |
|
Net recoveries (charge-offs) ($000’s) |
|
(4,311 |
) |
|
(674 |
) |
|
1,556 |
|
|
(2,884 |
) |
|
(419 |
) |
Return on average assets |
|
1.20 |
% |
|
1.12 |
% |
|
1.20 |
% |
|
0.89 |
% |
|
1.44 |
% |
Fee income ratio |
|
11.5 |
% |
|
11.2 |
% |
|
10.5 |
% |
|
10.0 |
% |
|
9.6 |
% |
Efficiency ratio |
|
54.1 |
% |
|
53.2 |
% |
|
51.4 |
% |
|
51.2 |
% |
|
48.4 |
% |
Employees’ compensation and benefits ($000’s) |
|
32,389 |
|
|
29,420 |
|
|
30,641 |
|
|
30,603 |
|
|
32,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Broker-Dealer Segment: |
|
|
|
|
|
|
|
|
|
|
|||||
Net revenue ($000’s) (4) |
|
116,847 |
|
|
119,989 |
|
|
118,703 |
|
|
113,241 |
|
|
104,498 |
|
Employees’ compensation and benefits ($000’s) |
|
69,457 |
|
|
68,746 |
|
|
69,930 |
|
|
65,290 |
|
|
62,429 |
|
Variable compensation expense ($000’s) |
|
35,274 |
|
|
39,435 |
|
|
39,929 |
|
|
34,798 |
|
|
30,821 |
|
Compensation as a % of net revenue |
|
59.4 |
% |
|
57.3 |
% |
|
58.9 |
% |
|
57.7 |
% |
|
59.7 |
% |
Pre-tax margin (5) |
|
16.2 |
% |
|
16.8 |
% |
|
18.2 |
% |
|
16.3 |
% |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage Origination Segment: |
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loan originations – volume ($000’s): |
|
|
|
|
|
|
|
|
|
|
|||||
Home purchases |
|
1,548,941 |
|
|
1,698,009 |
|
|
2,091,444 |
|
|
2,301,007 |
|
|
1,607,330 |
|
Refinancings |
|
127,545 |
|
|
117,018 |
|
|
152,257 |
|
|
150,643 |
|
|
125,423 |
|
Total mortgage loan originations – volume |
|
1,676,486 |
|
|
1,815,027 |
|
|
2,243,701 |
|
|
2,451,650 |
|
|
1,732,753 |
|
Mortgage loan sales – volume ($000’s) |
|
1,749,857 |
|
|
1,874,001 |
|
|
2,395,357 |
|
|
2,115,706 |
|
|
1,661,521 |
|
Net gains from mortgage loan sales (basis points): |
|
|
|
|
|
|
|
|
|
|
|||||
Loans sold to third parties |
|
221 |
|
|
189 |
|
|
199 |
|
|
207 |
|
|
193 |
|
Impact of loans retained by banking segment |
|
(5 |
) |
|
0 |
|
|
(1 |
) |
|
(6 |
) |
|
(7 |
) |
As reported |
|
216 |
|
|
189 |
|
|
198 |
|
|
201 |
|
|
186 |
|
Mortgage servicing rights asset ($000’s) (6) |
|
95,591 |
|
|
96,662 |
|
|
104,951 |
|
|
95,101 |
|
|
103,314 |
|
Employees’ compensation and benefits ($000’s) |
|
52,694 |
|
|
53,766 |
|
|
64,016 |
|
|
70,982 |
|
|
62,355 |
|
Variable compensation expense ($000’s) |
|
22,188 |
|
|
24,085 |
|
|
33,070 |
|
|
36,249 |
|
|
25,573 |
|
_____________________________ | ||
(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) were $0.6 million, $0.6 million, $0.6 million, $0.1 million and $0.1 million, respectively, for the periods presented and for the banking segment were $0.1 million, $0.2 million, $0.2 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. |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||
Capital Ratios |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||
Tier 1 capital (to average assets): |
|
|
|
|
|
|
|
|
|
|
|||||
PlainsCapital |
|
11.00 |
% |
|
10.55 |
% |
|
10.62 |
% |
|
10.28 |
% |
|
10.69 |
% |
Hilltop |
|
12.49 |
% |
|
12.23 |
% |
|
11.92 |
% |
|
11.47 |
% |
|
11.82 |
% |
Common equity Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|||||
PlainsCapital |
|
15.87 |
% |
|
15.44 |
% |
|
15.31 |
% |
|
14.48 |
% |
|
14.97 |
% |
Hilltop |
|
19.73 |
% |
|
19.32 |
% |
|
18.60 |
% |
|
17.61 |
% |
|
17.99 |
% |
Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|||||
PlainsCapital |
|
15.87 |
% |
|
15.44 |
% |
|
15.31 |
% |
|
14.48 |
% |
|
14.97 |
% |
Hilltop |
|
19.73 |
% |
|
19.32 |
% |
|
18.60 |
% |
|
17.61 |
% |
|
17.99 |
% |
Total capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|||||
PlainsCapital |
|
17.06 |
% |
|
16.58 |
% |
|
16.45 |
% |
|
15.56 |
% |
|
15.94 |
% |
Hilltop |
|
22.79 |
% |
|
22.34 |
% |
|
21.54 |
% |
|
20.41 |
% |
|
20.75 |
% |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
Non-Performing Assets Portfolio Data |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
Loans accounted for on a non-accrual basis ($000’s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
|
$ |
34,661 |
|
|
$ |
36,440 |
|
|
$ |
2,375 |
|
|
$ |
2,456 |
|
|
$ |
1,038 |
|
Owner occupied |
|
|
4,846 |
|
|
|
5,098 |
|
|
|
4,964 |
|
|
|
1,096 |
|
|
|
935 |
|
Commercial and industrial |
|
|
12,165 |
|
|
|
9,502 |
|
|
|
10,190 |
|
|
|
21,442 |
|
|
|
10,807 |
|
Construction and land development |
|
|
698 |
|
|
|
3,480 |
|
|
|
760 |
|
|
|
593 |
|
|
|
199 |
|
1-4 family residential |
|
|
12,363 |
|
|
|
13,801 |
|
|
|
13,202 |
|
|
|
13,360 |
|
|
|
14,387 |
|
Consumer |
|
|
3 |
|
|
|
6 |
|
|
|
7 |
|
|
|
9 |
|
|
|
12 |
|
Broker-dealer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-accrual loans ($000’s) |
|
$ |
64,736 |
|
|
$ |
68,327 |
|
|
$ |
31,498 |
|
|
$ |
38,956 |
|
|
$ |
27,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans as a % of total loans ($000’s) |
|
|
0.73 |
% |
|
|
0.76 |
% |
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other real estate owned ($000’s) |
|
|
5,254 |
|
|
|
5,095 |
|
|
|
5,386 |
|
|
|
3,481 |
|
|
|
3,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other repossessed assets ($000’s) |
|
|
472 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets ($000’s) |
|
|
70,462 |
|
|
|
73,422 |
|
|
|
36,884 |
|
|
|
42,437 |
|
|
|
30,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets as a % of total assets ($000’s) |
|
|
0.43 |
% |
|
|
0.45 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans past due 90 days or more and still accruing ($000’s) (1) |
|
|
112,799 |
|
|
|
115,090 |
|
|
|
106,346 |
|
|
|
130,036 |
|
|
|
114,523 |
|
_____________________________ | ||
(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 March 31, |
|
||||||||||||||||
|
|
2024 |
|
2023 |
|
||||||||||||||
|
|
Average |
|
Interest |
|
Annualized |
|
Average |
|
Interest |
|
Annualized |
|
||||||
Net Interest Margin (Taxable Equivalent) Details (1) |
|
Outstanding |
|
Earned |
|
Yield or |
|
Outstanding |
|
Earned |
|
Yield or |
|
||||||
|
Balance |
|
or Paid |
|
Rate |
|
Balance |
|
or Paid |
|
Rate |
|
|||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for sale |
|
$ |
802,098 |
|
|
$ |
11,655 |
|
5.81 |
% |
$ |
815,393 |
|
|
$ |
10,724 |
|
5.26 |
% |
Loans held for investment, gross (2) |
|
|
7,835,647 |
|
|
|
122,676 |
|
6.28 |
% |
|
7,894,668 |
|
|
|
112,655 |
|
5.79 |
% |
Investment securities – taxable |
|
|
2,619,081 |
|
|
|
26,241 |
|
4.01 |
% |
|
2,813,734 |
|
|
|
25,602 |
|
3.64 |
% |
Investment securities – non-taxable (3) |
|
|
293,420 |
|
|
|
2,992 |
|
4.08 |
% |
|
412,543 |
|
|
|
3,286 |
|
3.19 |
% |
Federal funds sold and securities purchased under agreements to resell |
|
|
94,108 |
|
|
|
1,631 |
|
6.95 |
% |
|
163,601 |
|
|
|
2,368 |
|
5.87 |
% |
Interest-bearing deposits in other financial institutions |
|
|
1,458,784 |
|
|
|
19,245 |
|
5.29 |
% |
|
1,480,323 |
|
|
|
16,116 |
|
4.42 |
% |
Securities borrowed |
|
|
1,442,870 |
|
|
|
20,561 |
|
5.64 |
% |
|
1,419,797 |
|
|
|
17,068 |
|
4.81 |
% |
Other |
|
|
39,885 |
|
|
|
5,190 |
|
52.19 |
% |
|
63,219 |
|
|
|
3,706 |
|
23.77 |
% |
Interest-earning assets, gross (3) |
|
|
14,585,893 |
|
|
|
210,191 |
|
5.78 |
% |
|
15,063,278 |
|
|
|
191,525 |
|
5.16 |
% |
Allowance for credit losses |
|
|
(110,583 |
) |
|
|
|
|
|
|
|
(97,060 |
) |
|
|
|
|
|
|
Interest-earning assets, net |
|
|
14,475,310 |
|
|
|
|
|
|
|
|
14,966,218 |
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
1,522,337 |
|
|
|
|
|
|
|
|
1,336,908 |
|
|
|
|
|
|
|
Total assets |
|
$ |
15,997,647 |
|
|
|
|
|
|
|
$ |
16,303,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing deposits |
|
$ |
7,748,633 |
|
|
$ |
69,144 |
|
3.58 |
% |
$ |
7,239,556 |
|
|
$ |
35,824 |
|
2.01 |
% |
Securities loaned |
|
|
1,401,975 |
|
|
|
19,039 |
|
5.45 |
% |
|
1,323,857 |
|
|
|
15,346 |
|
4.70 |
% |
Notes payable and other borrowings |
|
|
1,327,889 |
|
|
|
17,810 |
|
5.38 |
% |
|
1,490,075 |
|
|
|
18,552 |
|
5.05 |
% |
Total interest-bearing liabilities |
|
|
10,478,497 |
|
|
|
105,993 |
|
4.06 |
% |
|
10,053,488 |
|
|
|
69,722 |
|
2.81 |
% |
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest-bearing deposits |
|
|
2,951,357 |
|
|
|
|
|
|
|
|
3,789,757 |
|
|
|
|
|
|
|
Other liabilities |
|
|
420,355 |
|
|
|
|
|
|
|
|
390,107 |
|
|
|
|
|
|
|
Total liabilities |
|
|
13,850,209 |
|
|
|
|
|
|
|
|
14,233,352 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
2,120,494 |
|
|
|
|
|
|
|
|
2,043,157 |
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
26,944 |
|
|
|
|
|
|
|
|
26,617 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
15,997,647 |
|
|
|
|
|
|
|
$ |
16,303,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net interest income (3) |
|
|
|
|
$ |
104,198 |
|
|
|
|
|
|
$ |
121,803 |
|
|
|
||
Net interest spread (3) |
|
|
|
|
|
|
|
1.72 |
% |
|
|
|
|
|
|
2.35 |
% |
||
Net interest margin (3) |
|
|
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
|
3.28 |
% |
Contacts
Investor Relations Contact:
Erik Yohe
214-525-4634
eyohe@hilltop.com