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HILLTOP HOLDINGS INC.

(HTH)
  Report
Real-time Estimate Cboe BZX  -  12:31:36 2023-02-07 pm EST
33.97 USD   +0.40%
01/27Transcript : Hilltop Holdings Inc., Q4 2022 Earnings Call, Jan 27, 2023
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01/26Hilltop Holdings : Q4 Earnings Snapshot
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01/26Hilltop Q4 Net Income, Revenue Falls; Authorizes $75 Million Stock Buyback, Boost Dividend by 7% to $0.16 Per Share
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Hilltop : Announces Financial Results for Second Quarter 2022 - Form 8-K

07/21/2022 | 04:44pm EST

Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2022

DALLAS - (BUSINESS WIRE) July 21, 2022 - Hilltop Holdings Inc. (NYSE: HTH) ("Hilltop") today announced financial results for the second quarter of 2022. Hilltop produced income to common stockholders of $33.3 million, or $0.45 per diluted share, for the second quarter of 2022, compared to $99.1 million, or $1.21 per diluted share, for the second quarter of 2021. Hilltop's financial results for the second quarter of 2022 reflect a significant decrease in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income and an increase in the banking segment's provision for credit losses due to a deteriorating U.S. economic outlook.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per common share payable on August 26, 2022, to all common stockholders of record as of the close of business on August 12, 2022. Additionally, during the second quarter of 2022, Hilltop paid $442.3 million to repurchase approximately 14.87 million shares of its common stock at a price of $29.75 per share pursuant to the tender offer completed in May 2022. These shares were returned to the pool of authorized but unissued shares of common stock. As a result of share repurchases during 2022, Hilltop has no further available share repurchase capacity associated with its previously authorized stock repurchase program.

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 U.S. treasury bond yield and mortgage interest rates, and exposure to increasing funding costs during the first half of 2022 have had, and are expected to continue to have, an adverse impact on our operating results during the remainder of 2022. The COVID-19 pandemic may also continue to adversely impact financial markets and overall economic conditions. The extent of the impact of the pandemic on our operational and financial performance for the remainder of 2022 remains uncertain.

Jeremy B. Ford, President and CEO of Hilltop, said "Our second quarter results demonstrate again the value of the Hilltop business model, despite a challenging economic environment. PlainsCapital Bank performed well with another quarter of solid loan growth and healthy credit metrics across the loan portfolio. Additionally, the Bank realized net interest margin expansion as it prudently manages deposit costs and captures the benefits of the rising rate environment. PrimeLending and HilltopSecurities experienced a continuation of the challenging market faced in the first quarter with elevated and volatile interest rates paired with lower demand for new home purchases. Importantly, both PrimeLending and HilltopSecurities were profitable during these challenging times as a result of strong expense disclipline and experienced management teams.

"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 19% of the outstanding shares while still retaining excess capital for future growth."

Second Quarter 2022 Highlights for Hilltop:

The provision for credit losses was $5.3 million during the second quarter of 2022, compared to a provision for credit losses of $0.1 million in the first quarter of 2022 and a reversal of credit losses of $28.7 million in the second quarter of 2021;
o 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.
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, compared to $241.8 million in the second quarter of 2021, a 42.1% decrease;
o Mortgage loan origination production volume was $3.8 billion during the second quarter of 2022, compared to $5.9 billion in the second quarter of 2021;
o 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.
Hilltop's consolidated annualized return on average assets and return on average equity for the second quarter of 2022 were 0.80% and 5.82%, respectively, compared to 2.29% and 16.42%, respectively, for the second quarter of 2021;
Hilltop's book value per common share increased to $31.43 at June 30, 2022, compared to $31.02 at March 31, 2022;
Hilltop's total assets were $16.7 billion and $18.4 billion at June 30, 2022 and March 31, 2022, respectively;
Loans1, net of allowance for credit losses, increased to $7.4 billion at June 30, 2022 compared to $7.2 billion at March 31, 2022;
Non-performing loans were $35.7 million, or 0.38% of total loans, at June 30, 2022, compared to $44.3 million, or 0.47% of total loans, at March 31, 2022;
Loans held for sale decreased by 9.3% from March 31, 2022 to $1.5 billion at June 30, 2022;
Total deposits were $11.9 billion and $12.7 billion at June 30, 2022 and March 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 of 17.24% at June 30, 2022;
Hilltop's consolidated net interest margin4 increased to 2.75% for the second quarter of 2022, compared to 2.36% in the first quarter of 2022;
o Includes previously deferred interest income of $1.3 million during the second quarter of 2022 related to PPP loan-related origination fees, compared to $5.4 million in the second quarter of 2021.
For the second quarter of 2022, noninterest income was $239.3 million, compared to $339.9million in the second quarter of 2021, a 29.6% decrease;
For the second quarter 2022, noninterest expense was $298.5 million, compared to $343.4 million in the second quarter of 2021, a 13.1% decrease; and
Hilltop's effective tax rate was 25.6% during the second quarter of 2022, compared to 23.5% during the same period in 2021.
o 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 $462.4 million and $506.2 million at June 30, 2022 and March 31, 2022, 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.

3 Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.

4 Net interest margin is defined as net interest income divided by average interest-earning assets.

Consolidated Financial and Other Information

Consolidated Balance Sheets

June 30,

March 31,

December 31,

September 30,

June 30,

(in 000's)

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

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

Goodwill

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

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

June 30,

March 31,

December 31,

September 30,

June 30,

(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 June 30, 2022

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 June 30, 2022

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

June 30,

March 31,

December 31,

September 30,

June 30,

Selected Financial Data

2022

2022

2021

2021

2021

Hilltop Consolidated:

Return on average stockholders' equity

5.82%

3.60%

9.93%

14.96%

16.42%

Return on average assets

0.80%

0.53%

1.41%

2.13%

2.29%

Net interest margin (1)

2.75%

2.36%

2.44%

2.53%

2.62%

Net interest margin (taxable equivalent) (2):

As reported

2.76%

2.37%

2.45%

2.54%

2.63%

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)

33.33%

53.57%

15.19%

10.34%

9.92%

Banking Segment:

Net interest margin (1)

2.97%

2.65%

2.81%

2.99%

3.19%

Net interest margin (taxable equivalent) (2):

As reported

2.98%

2.65%

2.82%

3.00%

3.20%

Impact of purchase accounting

10 bps

8 bps

15 bps

11 bps

20 bps

Accretion of discount on loans ($000's)

3,011

2,510

4,716

3,221

6,001

Net recoveries (charge-offs) ($000's)

(1,223)

(282)

405

62

(510)

Return on average assets

1.09%

0.98%

1.44%

1.36%

1.91%

Fee income ratio

11.0%

12.2%

10.8%

10.5%

8.9%

Efficiency ratio

50.4%

55.7%

54.2%

48.8%

49.7%

Employees' compensation and benefits ($000's)

33,554

33,517

34,415

31,500

33,369

Broker-Dealer Segment:

Net revenue ($000's) (4)

100,229

72,209

94,569

126,570

94,145

Employees' compensation and benefits ($000's)

64,494

55,825

65,301

82,429

62,289

Variable compensation expense ($000's)

37,471

26,625

35,939

53,505

34,409

Compensation as a % of net revenue

64.3%

77.3%

69.1%

65.1%

66.2%

Pre-tax margin (5)

9.1%

(11.9)%

1.8%

13.8%

7.3%

Mortgage Origination Segment:

Mortgage loan originations - volume ($000's):

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 ($000's)

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 ($000's) (6)

121,688

100,475

86,990

110,931

124,497

Employees' compensation and benefits ($000's)

100,206

102,748

121,758

134,814

145,401

Variable compensation expense ($000's)

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 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 $0.4 million, $0.5 million, $0.5 million, $0.6 million, and $0.4 million, respectively, for the periods presented and for the banking segment were $0.2 million for each of 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.

June 30,

March 31,

December 31,

September 30,

June 30,

Capital Ratios

2022

2022

2021

2021

2021

Tier 1 capital (to average assets):

PlainsCapital

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):

PlainsCapital

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):

PlainsCapital

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):

PlainsCapital

15.55%

16.18%

16.77%

16.32%

15.95%

Hilltop

19.90%

23.85%

23.75%

24.00%

23.48%

June 30,

March 31,

December 31,

September 30,

June 30,

Non-Performing Assets Portfolio Data

2022

2022

2021

2021

2021

Loans accounted for on a non-accrual basis ($000's) (1):

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 ($000's)

857

890

922

1,038

1,139

Non-performing loans ($000's)

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 ($000's)

1,516

2,175

2,833

21,605

21,078

Other repossessed assets ($000's)

-

-

-

-

-

Non-performing assets ($000's)

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 ($000's) (2):

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 January 1, 2022. The Bank's COVID-19 payment deferral programs since the second quarter of 2020 allowed for a deferral of principal and/or interest payments with such deferred principal payments due and payable on the maturity date of the existing loan. For the periods presented, the Bank's actions through December 31, 2021 included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $4 million, $17 million and $76 million as of December 31, 2021, September 30, 2021 and June 30, 2021, respectively.
(2) 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 June 30,

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 21% federal income tax rates for the periods presented. The adjustment to interest income was $0.4 million and $0.4 million for the three months ended June 30, 2022 and 2021, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, July 22, 2022. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review second quarter 2022 financial results. Interested parties can access the conference call by dialing 1-844-200-6205 (United States), 1-833-950-0062 (Canada) or 1-929-526-1599 (all other locations) and then using the access code 416063. The conference call also will be webcast simultaneously on Hilltop's Investor Relations website (http://ir.hilltop-holdings.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 June 30, 2022, Hilltop employed approximately 4,650 people and operated approximately 385 locations in 47 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.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 "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 Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.

Source: Hilltop Holdings Inc.

Disclaimer

Hilltop Holdings Inc. published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 20:43:10 UTC.


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Financials (USD)
Sales 2022 1 303 M - -
Net income 2022 105 M - -
Net Debt 2022 - - -
P/E ratio 2022 22,7x
Yield 2022 1,77%
Capitalization 2 188 M 2 188 M -
Capi. / Sales 2022 1,68x
Capi. / Sales 2023 1,77x
Nbr of Employees 4 140
Free-Float 70,2%
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Last Close Price 33,83 $
Average target price 31,33 $
Spread / Average Target -7,38%
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Managers and Directors
Jeremy B. Ford President, Chief Executive Officer & Director
William B. Furr Chief Financial Officer & Executive Vice President
Gerald J. Ford Director
Toby Pennycuff Chief Information Officer
Donald F. Foley Chief Operational Risk & Compliance Officer
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