Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced
financial results for the fourth quarter and full year 2024.
Hilltop produced income to common stockholders of $35.5 million, or
$0.55 per diluted share, for the fourth quarter of 2024, compared
to $28.7 million, or $0.44 per diluted share, for the fourth
quarter of 2023. Income to common stockholders for the full year
2024 was $113.2 million, or $1.74 per diluted share, compared to
$109.6 million, or $1.69 per diluted share, for the full year 2023.
Hilltop’s financial results for the fourth quarter, compared with
the same period in 2023, included an increase in net interest
income and a reversal of credit losses, partially offset by an
increase in noninterest expenses within the banking segment, net
revenues and noninterest expenses increased within the
broker-dealer segment, and the mortgage origination segment had an
increase in noninterest income. Hilltop’s financial results for the
full year 2024, compared with 2023, included a decline in net
interest income, partially offset by a decline in the provision for
credit losses within the banking segment, net revenues and
noninterest expenses increased within the broker-dealer segment,
and the mortgage origination segment had decreases in both
noninterest income and expense.
Hilltop also announced that its Board of Directors declared a
quarterly cash dividend of $0.18 per common share, a 6% increase
from the prior quarter, payable on February 27, 2025, to all common
stockholders of record as of the close of business on February 13,
2025. Additionally, the Hilltop Board of Directors authorized a new
stock repurchase program through January 2026, under which Hilltop
may repurchase, in the aggregate, up to $100.0 million of its
outstanding common stock. During 2024, Hilltop paid $19.9 million
to repurchase an aggregate of 640,042 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.
On January 15, 2025, Hilltop redeemed all of its outstanding 5%
senior notes due April 15, 2025 at a redemption price equal to the
aggregate principal amount of $150 million, plus accrued and unpaid
interest using cash on hand. In addition, on January 27, 2025,
Hilltop announced that its merchant bank subsidiary entered into a
definitive agreement to sell all of the capital stock of Moser
Acquisition, Inc. Our approximate 30% aggregate interest in Moser
Holdings, LLC, which owns Moser Acquisition, Inc., is expected to
result in an estimated net gain on sale of approximately $23
million to $27 million. The closing of the transaction, which is
expected to occur in the first quarter of 2025, is subject to
customary closing conditions.
The extent of the impact of uncertain economic conditions on our
financial performance during 2025 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, changes in the political environment and international
armed conflicts and their impact on supply chains.
Jeremy B. Ford, President and CEO of Hilltop, said, “Over the
course of 2024, Hilltop adapted to a new operating environment as
the Federal Reserve cut interest rates for the first time since the
spring of 2020, and we delivered a year over year increase in
pre-tax profitability. During the fourth quarter, PlainsCapital
Bank grew customer deposit balances and improved loan pipeline pull
through rates. HilltopSecurities capitalized on tailwinds in its
Structured Finance and Wealth Management business lines to deliver
a pre-tax margin of 16%. PrimeLending realized a 24% increase in
origination volume, when compared to the fourth quarter of 2023,
but continued to face a challenging mortgage market due to a lack
of inventory and stressed affordability for potential home
buyers.
“As we enter 2025, we remain focused on protecting our balance
sheet and executing on our strategic plan to further build on
Hilltop’s franchise value by serving our customers and the
communities in which we operate.”
Fourth Quarter 2024 Highlights for Hilltop:
- The reversal of credit losses was $5.9 million during the
fourth quarter of 2024, compared to a reversal of credit losses of
$1.3 million in the third quarter of 2024 and a provision for
credit losses of $1.3 million in the fourth quarter of 2023;
- The reversal of credit losses during the fourth quarter of 2024
was primarily driven by net charge-offs, loan portfolio changes and
changes in the U.S. economic outlook 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 fourth quarter of 2024, net gains from sale of loans
and other mortgage production income and mortgage loan origination
fees was $73.7 million, compared to $69.2 million in the fourth
quarter of 2023, a 6.4% increase;
- Mortgage loan origination production volume was $2.3 billion
during the fourth quarter of 2024, compared to $1.8 billion in the
fourth quarter of 2023;
- Net gains from mortgage loans sold to third parties increased
to 226 basis points during the fourth quarter of 2024, compared to
224 basis points in the third quarter of 2024.
- Hilltop’s consolidated annualized return on average assets and
return on average stockholders’ equity for the fourth quarter of
2024 were 0.92% and 6.50%, respectively, compared to 0.75% and
5.46%, respectively, for the fourth quarter of 2023;
- Hilltop’s book value per common share increased to $33.71 at
December 31, 2024, compared to $33.51 at September 30, 2024;
- Hilltop’s total assets were $16.3 billion and $15.9 billion at
December 31, 2024 and September 30, 2024, respectively;
- Loans1, net of allowance for credit losses, were $7.5 billion
at both December 31, 2024 and September 30, 2024,
respectively;
- Non-accrual loans were $88.1 million, or 1.00% of total loans,
at December 31, 2024, compared to $91.2 million, or 1.02% of total
loans, at September 30, 2024;
- Loans held for sale decreased by 8.0% from September 30, 2024
to $858.7 million at December 31, 2024;
- Total deposits were $11.1 billion and $10.8 billion at December
31, 2024 and September 30, 2024, respectively;
- Total estimated uninsured deposits were $5.7 billion, or
approximately 52% of total deposits, while estimated uninsured
deposits, excluding collateralized deposits of $363.1 million, were
$5.3 billion, or approximately 48% of total deposits, at December
31, 2024.
- Hilltop maintained strong capital levels2 with a Tier 1
Leverage Ratio3 of 12.57% and a Common Equity Tier 1 Capital Ratio
of 21.23% at December 31, 2024;
- Hilltop’s consolidated net interest margin4 decreased to 2.72%
for the fourth quarter of 2024, compared to 2.84% in the third
quarter of 2024;
- For the fourth quarter of 2024, noninterest income was $195.6
million, compared to $179.0 million in the fourth quarter of 2023,
an 9.3% increase;
- For fourth quarter of 2024, noninterest expense was $262.8
million, compared to $250.8 million in the fourth quarter of 2023,
a 4.7% increase; and
- Hilltop’s effective tax rate was 14.2% during the fourth
quarter of 2024, compared to 18.7% during the same period in 2023.
- The effective tax rate for the fourth quarter of 2024 was lower
than the applicable statutory rate primarily due to changes in
accumulated tax reserves, state income tax reductions realized
during the quarter and investments in tax-exempt instruments,
partially offset by the impact of nondeductible expenses,
nondeductible 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 $363.7 million and $340.4 million at December
31, 2024 and September 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. As of January 1, 2025, Hilltop had fully captured the
day-one regulatory capital effects resulting from the
implementation of CECL.
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
December 31,
September 30,
June 30,
March 31,
December 31,
(in 000's)
2024
2024
2024
2024
2023
Cash and due from banks
$
2,298,977
$
1,961,627
$
798,300
$
1,710,066
$
1,858,700
Federal funds sold
650
3,650
5,650
650
650
Assets segregated for regulatory
purposes
70,963
55,628
51,046
70,717
57,395
Securities purchased under agreements to
resell
88,728
81,766
111,914
91,608
80,011
Securities:
Trading, at fair value
524,916
540,836
721,384
657,700
515,991
Available for sale, at fair value, net
(1)
1,396,549
1,405,700
1,433,107
1,480,555
1,507,595
Held to maturity, at amortized cost, net
(1)
737,899
754,824
777,456
790,550
812,677
Equity, at fair value
297
287
254
315
321
2,659,661
2,701,647
2,932,201
2,929,120
2,836,584
Loans held for sale
858,665
933,724
1,264,437
842,324
943,846
Loans held for investment, net of unearned
income
7,950,551
7,979,630
8,173,520
8,062,693
8,079,745
Allowance for credit losses
(101,116
)
(110,918
)
(115,082
)
(104,231
)
(111,413
)
Loans held for investment, net
7,849,435
7,868,712
8,058,438
7,958,462
7,968,332
Broker-dealer and clearing organization
receivables
1,452,366
1,220,784
1,297,175
1,473,561
1,573,931
Premises and equipment, net
148,245
157,803
161,746
165,557
168,856
Operating lease right-of-use assets
90,563
92,041
93,994
95,343
88,580
Mortgage servicing assets
5,723
45,742
52,902
95,591
96,662
Other assets
470,073
528,839
517,811
501,244
517,545
Goodwill
267,447
267,447
267,447
267,447
267,447
Other intangible assets, net
6,633
6,995
7,429
7,943
8,457
Total assets
$
16,268,129
$
15,926,405
$
15,620,490
$
16,209,633
$
16,466,996
Deposits:
Noninterest-bearing
$
2,768,707
$
2,831,539
$
2,845,441
$
3,028,543
$
3,007,101
Interest-bearing
8,296,615
7,959,908
7,528,415
7,855,553
8,056,091
Total deposits
11,065,322
10,791,447
10,373,856
10,884,096
11,063,192
Broker-dealer and clearing organization
payables
1,331,902
1,110,373
1,285,226
1,436,462
1,430,734
Short-term borrowings
834,023
914,645
897,613
892,574
900,038
Securities sold, not yet purchased, at
fair value
57,234
47,773
75,546
60,562
34,872
Notes payable
347,667
347,533
347,402
347,273
347,145
Operating lease liabilities
109,103
110,799
113,096
114,518
109,002
Other liabilities
304,566
397,976
365,140
314,718
431,684
Total liabilities
14,049,817
13,720,546
13,457,879
14,050,203
14,316,667
Common stock
650
650
650
653
652
Additional paid-in capital
1,052,219
1,050,497
1,047,523
1,049,831
1,054,662
Accumulated other comprehensive loss
(111,497
)
(98,168
)
(119,171
)
(119,606
)
(121,505
)
Retained earnings
1,248,593
1,224,117
1,205,467
1,201,013
1,189,222
Deferred compensation employee stock
trust, net
—
—
1
115
228
Employee stock trust
—
—
(1
)
(142
)
(292
)
Total Hilltop stockholders' equity
2,189,965
2,177,096
2,134,469
2,131,864
2,122,967
Noncontrolling interests
28,347
28,763
28,142
27,566
27,362
Total stockholders' equity
2,218,312
2,205,859
2,162,611
2,159,430
2,150,329
Total liabilities & stockholders'
equity
$
16,268,129
$
15,926,405
$
15,620,490
$
16,209,633
$
16,466,996
________________
(1)
At December 31, 2024, the amortized cost
of the available for sale securities portfolio was $1,498,415,
while the fair value of the held to maturity securities portfolio
was $649,872.
Three Months Ended
Year Ended
Consolidated Income Statements
December 31,
September 30,
December 31,
December 31,
December 31,
(in 000's, except per share
data)
2024
2024
2023
2024
2023
Interest income:
Loans, including fees
$
131,726
$
139,821
$
138,096
$
544,505
$
542,274
Securities borrowed
17,492
19,426
18,659
77,785
71,924
Securities:
Taxable
29,212
26,265
28,763
107,007
108,250
Tax-exempt
2,944
2,438
2,545
10,186
10,763
Other
27,216
23,092
28,704
96,906
105,164
Total interest income
208,590
211,042
216,767
836,389
838,375
Interest expense:
Deposits
67,411
70,641
68,339
275,291
223,179
Securities loaned
16,407
18,499
17,247
72,614
65,175
Short-term borrowings
10,992
10,878
13,495
44,134
57,857
Notes payable
3,910
3,555
3,596
14,659
15,448
Other
4,386
2,426
2,864
11,893
9,869
Total interest expense
103,106
105,999
105,541
418,591
371,528
Net interest income
105,484
105,043
111,226
417,798
466,847
Provision for (reversal of) credit
losses
(5,852
)
(1,270
)
1,265
941
18,392
Net interest income after provision for
(reversal of) credit losses
111,336
106,313
109,961
416,857
448,455
Noninterest income:
Net gains from sale of loans and other
mortgage production income
43,553
47,816
36,387
190,021
172,150
Mortgage loan origination fees
30,111
32,119
32,844
123,066
144,539
Securities commissions and fees
35,338
30,434
27,380
125,655
100,532
Investment and securities advisory fees
and commissions
37,514
42,220
35,780
142,952
134,327
Other
49,074
47,854
46,587
189,262
177,425
Total noninterest income
195,590
200,443
178,978
770,956
728,973
Noninterest expense:
Employees' compensation and benefits
173,334
177,987
160,390
687,149
678,310
Occupancy and equipment, net
25,707
22,317
21,524
91,233
89,326
Professional services
12,791
11,645
13,170
44,437
49,100
Other
50,925
52,363
55,761
210,737
211,573
Total noninterest expense
262,757
264,312
250,845
1,033,556
1,028,309
Income before income taxes
44,169
42,444
38,094
154,257
149,119
Income tax expense
6,285
9,539
7,132
31,047
31,140
Net income
37,884
32,905
30,962
123,210
117,979
Less: Net income attributable to
noncontrolling interest
2,365
3,212
2,291
9,997
8,333
Income attributable to Hilltop
$
35,519
$
29,693
$
28,671
$
113,213
$
109,646
Earnings per common share:
Basic
$
0.55
$
0.46
$
0.44
$
1.74
$
1.69
Diluted
$
0.55
$
0.46
$
0.44
$
1.74
$
1.69
Cash dividends declared per common
share
$
0.17
$
0.17
$
0.16
$
0.68
$
0.64
Weighted average shares outstanding:
Basic
64,935
64,928
65,136
65,036
65,043
Diluted
64,943
64,946
65,138
65,046
65,045
Three Months Ended December
31, 2024
Segment Results
Mortgage
All Other and
Hilltop
(in 000's)
Banking
Broker-Dealer
Origination
Corporate
Eliminations
Consolidated
Net interest income (expense)
$
94,946
$
12,046
$
(3,627
)
$
(3,277
)
$
5,396
$
105,484
Provision for (reversal of) credit
losses
(5,665
)
(187
)
—
—
—
(5,852
)
Noninterest income
11,411
114,321
73,740
1,767
(5,649
)
195,590
Noninterest expense
61,426
106,181
80,022
15,379
(251
)
262,757
Income (loss) before taxes
$
50,596
$
20,373
$
(9,909
)
$
(16,889
)
$
(2
)
$
44,169
Year Ended December 31,
2024
Segment Results
Mortgage
All Other and
Hilltop
(in 000's)
Banking
Broker-Dealer
Origination
Corporate
Eliminations
Consolidated
Net interest income (expense)
$
372,546
$
48,942
$
(16,867
)
$
(12,838
)
$
26,015
$
417,798
Provision for (reversal of) credit
losses
992
(51
)
—
—
—
941
Noninterest income
43,295
422,801
313,229
18,515
(26,884
)
770,956
Noninterest expense
232,954
408,283
330,088
63,110
(879
)
1,033,556
Income (loss) before taxes
$
181,895
$
63,511
$
(33,726
)
$
(57,433
)
$
10
$
154,257
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
Selected Financial Data
2024
2024
2023
2024
2023
Hilltop
Consolidated:
Return on average stockholders' equity
6.50
%
5.51
%
5.46
%
5.29
%
5.31
%
Return on average assets
0.92
%
0.84
%
0.75
%
0.78
%
0.71
%
Net interest margin (1)
2.72
%
2.84
%
2.96
%
2.81
%
3.07
%
Net interest margin (taxable equivalent)
(2):
As reported
2.74
%
2.85
%
2.98
%
2.83
%
3.09
%
Impact of purchase accounting
3 bps
2 bps
4 bps
4 bps
6 bps
Book value per common share ($)
33.71
33.51
32.58
33.71
32.58
Shares outstanding, end of period
(000's)
64,968
64,960
65,153
64,968
65,153
Dividend payout ratio (3)
31.08
%
37.17
%
36.35
%
39.06
%
37.97
%
Banking
Segment:
Net interest margin (1)
2.98
%
3.05
%
2.94
%
3.04
%
3.13
%
Net interest margin (taxable equivalent)
(2):
As reported
2.99
%
3.06
%
2.95
%
3.04
%
3.14
%
Impact of purchase accounting
4 bps
3 bps
5 bps
4 bps
7 bps
Accretion of discount on loans
($000's)
1,076
737
1,202
5,057
8,632
Net recoveries (charge-offs) ($000's)
(3,950
)
(2,894
)
(674
)
(11,238
)
(2,421
)
Return on average assets
1.24
%
1.14
%
1.12
%
1.10
%
1.15
%
Fee income ratio
10.7
%
10.3
%
11.2
%
10.4
%
10.3
%
Efficiency ratio
57.8
%
55.2
%
53.2
%
56.0
%
51.0
%
Employees' compensation and benefits
($000's)
33,313
31,920
29,420
130,974
123,345
Broker-Dealer
Segment:
Net revenue ($000's) (4)
126,367
124,258
119,989
471,743
456,432
Employees' compensation and benefits
($000's)
75,150
75,912
68,746
286,700
266,395
Variable compensation expense ($000's)
42,484
42,569
39,435
153,062
144,984
Compensation as a % of net revenue
59.5
%
61.1
%
57.3
%
60.8
%
58.4
%
Pre-tax margin (5)
16.1
%
13.7
%
16.8
%
13.5
%
16.1
%
Mortgage
Origination Segment:
Mortgage loan originations - volume
($000's):
Home purchases
1,909,706
2,096,009
1,698,009
7,759,812
7,701,758
Refinancings
343,400
211,454
117,018
856,541
541,373
Total mortgage loan originations -
volume
2,253,106
2,307,463
1,815,027
8,616,353
8,243,131
Mortgage loan sales - volume ($000's)
2,065,356
2,569,678
1,874,001
8,223,734
8,046,585
Net gains from mortgage loan sales (basis
points):
Loans sold to third parties
226
224
189
226
198
Impact of loans retained by banking
segment
(5
)
0
0
(4
)
(4
)
As reported
221
224
189
222
194
Mortgage servicing rights asset ($000's)
(6)
5,723
45,742
96,662
5,723
96,662
Employees' compensation and benefits
($000's)
56,402
60,573
53,766
231,293
251,119
Variable compensation expense ($000's)
30,784
33,862
24,085
121,720
118,977
________________
(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 $0.7 million, $0.6 million, $0.6
million, $2.5 million and $2.7 million, respectively, for the
periods presented and for the banking segment were $0.2 million,
$0.2 million, $0.2 million, $0.6 million and $0.7 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.
December 31,
September 30,
June 30,
March 31,
December 31,
Capital Ratios
2024
2024
2024
2024
2023
Tier 1 capital (to average assets):
PlainsCapital
9.99
%
10.34
%
11.36
%
11.00
%
10.55
%
Hilltop
12.57
%
12.95
%
12.87
%
12.49
%
12.23
%
Common equity Tier 1 capital (to
risk-weighted assets):
PlainsCapital
15.35
%
14.94
%
15.58
%
15.87
%
15.44
%
Hilltop
21.23
%
20.48
%
19.45
%
19.73
%
19.32
%
Tier 1 capital (to risk-weighted
assets):
PlainsCapital
15.35
%
14.94
%
15.58
%
15.87
%
15.44
%
Hilltop
21.23
%
20.48
%
19.45
%
19.73
%
19.32
%
Total capital (to risk-weighted
assets):
PlainsCapital
16.54
%
16.13
%
16.77
%
17.06
%
16.58
%
Hilltop
24.40
%
23.68
%
22.57
%
22.79
%
22.34
%
December 31,
September 30,
June 30,
March 31,
December 31,
Non-Performing Assets Portfolio
Data
2024
2024
2024
2024
2023
Loans accounted for on a non-accrual basis
($000's):
Commercial real estate:
Non-owner occupied
$
7,166
$
8,042
$
6,894
$
34,661
$
36,440
Owner occupied
6,092
2,410
6,437
4,846
5,098
Commercial and industrial
59,025
66,929
80,755
12,165
9,502
Construction and land development
3,003
2,682
485
698
3,480
1-4 family residential
12,863
11,123
11,092
12,363
13,801
Consumer
—
—
1
3
6
Broker-dealer
—
—
—
—
—
Non-accrual loans ($000's)
$
88,149
$
91,186
$
105,664
$
64,736
$
68,327
Non-accrual loans as a % of total
loans
1.00
%
1.02
%
1.12
%
0.73
%
0.76
%
Other real estate owned ($000's)
2,848
2,744
2,973
5,254
5,095
Other repossessed assets ($000's)
98
413
464
472
—
Non-performing assets ($000's)
91,095
94,343
109,101
70,462
73,422
Non-performing assets as a % of total
assets
0.56
%
0.59
%
0.70
%
0.43
%
0.45
%
Loans past due 90 days or more and still
accruing ($000's) (1)
22,090
140,763
122,451
112,799
115,090
________________
(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 December
31,
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
$
1,011,036
$
13,278
5.25
%
$
841,715
$
13,239
6.29
%
Loans held for investment, gross (2)
7,931,572
118,448
5.93
%
7,902,814
124,857
6.27
%
Investment securities - taxable
2,443,886
29,213
4.78
%
2,629,808
28,763
4.37
%
Investment securities - non-taxable
(3)
360,622
3,666
4.07
%
313,714
3,157
12.08
%
Federal funds sold and securities
purchased under agreements to resell
96,066
1,797
7.42
%
153,785
2,082
5.37
%
Interest-bearing deposits in other
financial institutions
2,033,482
23,052
4.50
%
1,646,885
21,948
5.29
%
Securities borrowed
1,361,481
17,492
5.03
%
1,371,092
18,659
5.33
%
Other
130,624
2,367
7.19
%
48,120
4,675
38.54
%
Interest-earning assets, gross (3)
15,368,769
209,313
5.40
%
14,907,933
217,380
5.79
%
Allowance for credit losses
(110,191
)
(110,832
)
Interest-earning assets, net
15,258,578
14,797,101
Noninterest-earning assets
1,065,783
1,473,839
Total assets
$
16,324,361
$
16,270,940
Liabilities and Stockholders'
Equity
Interest-bearing liabilities
Interest-bearing deposits
$
8,176,034
$
67,411
3.27
%
$
7,966,770
$
68,339
3.40
%
Securities loaned
1,353,195
16,407
4.81
%
1,324,887
17,247
5.16
%
Notes payable and other borrowings
1,399,178
19,288
5.47
%
1,439,297
19,955
5.50
%
Total interest-bearing liabilities
10,928,407
103,106
3.74
%
10,730,954
105,541
3.90
%
Noninterest-bearing liabilities
Noninterest-bearing deposits
2,795,588
3,096,244
Other liabilities
399,964
335,307
Total liabilities
14,123,959
14,162,505
Stockholders’ equity
2,172,640
2,081,833
Noncontrolling interest
27,762
26,602
Total liabilities and stockholders'
equity
$
16,324,361
$
16,270,940
Net interest income (3)
$
106,207
$
111,839
Net interest spread (3)
1.66
%
1.89
%
Net interest margin (3)
2.74
%
2.98
%
Year Ended December
31,
2024
2023
Average
Interest
Annualized
Average
Interest
Annualized
Outstanding
Earned
Yield or
Outstanding
Earned
Yield or
Net Interest Margin (Taxable
Equivalent) Details (1)
Balance
or Paid
Rate
Balance
or Paid
Rate
Assets
Interest-earning assets
Loans held for sale
$
934,983
$
53,073
5.60
%
$
944,470
$
53,736
5.69
%
Loans held for investment, gross (2)
7,921,528
491,432
6.20
%
7,950,878
488,538
6.23
%
Investment securities - taxable
2,537,856
107,007
4.16
%
2,726,763
108,250
3.97
%
Investment securities - non-taxable
(3)
324,684
12,638
3.84
%
363,493
13,463
3.70
%
Federal funds sold and securities
purchased under agreements to resell
98,337
7,232
7.35
%
145,696
8,954
6.15
%
Interest-bearing deposits in other
financial institutions
1,526,748
75,633
4.95
%
1,597,865
79,657
4.99
%
Securities borrowed
1,355,554
77,785
5.66
%
1,409,765
71,924
5.03
%
Other
159,141
14,041
8.82
%
65,912
16,554
25.11
%
Interest-earning assets, gross (3)
14,858,831
838,841
5.65
%
15,204,842
841,076
5.53
%
Allowance for credit losses
(110,123
)
(103,975
)
Interest-earning assets, net
14,748,708
15,100,867
Noninterest-earning assets
1,130,198
1,404,393
Total assets
$
15,878,906
$
16,505,260
Liabilities and Stockholders'
Equity
Interest-bearing liabilities
Interest-bearing deposits
$
7,822,536
$
275,291
3.52
%
$
7,711,570
$
223,179
2.89
%
Securities loaned
1,335,155
72,614
5.44
%
1,331,443
65,175
4.90
%
Notes payable and other borrowings
1,397,313
70,686
5.06
%
1,579,170
83,174
5.27
%
Total interest-bearing liabilities
10,555,004
418,591
3.97
%
10,622,183
371,528
3.50
%
Noninterest-bearing liabilities
Noninterest-bearing deposits
2,824,450
3,441,437
Other liabilities
332,340
351,938
Total liabilities
13,711,794
14,415,558
Stockholders’ equity
2,139,732
2,063,174
Noncontrolling interest
27,380
26,528
Total liabilities and stockholders'
equity
$
15,878,906
$
16,505,260
Net interest income (3)
$
420,250
$
469,548
Net interest spread (3)
1.68
%
2.03
%
Net interest margin (3)
2.83
%
3.09
%
________________
(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 $0.7 million and $0.6 million
for the three months ended December 31, 2024 and 2023,
respectively, and $2.5 million and $2.7 million for the year ended
December 31, 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, January 31, 2025. Hilltop
President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr
will review fourth quarter and full year 2024 financial results.
Interested parties can access the conference call by dialing
800-549-8228 (Toll Free North America) or (+1) 289-819-1520
(International Toll) and then using the conference ID 03956. 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 December 31, 2024, Hilltop
employed approximately 3,650 people and operated 280 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) the effects of
indebtedness on our ability to manage our business successfully,
including the restrictions imposed by the indenture governing our
indebtedness; (vii) disruptions to the economy and financial
services industry, 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; (viii) cost and availability of capital;
(ix) changes in state and federal laws, regulations or policies
affecting one or more of our business segments, including changes
in policies under the new Presidential administration, changes in
regulatory fees, deposit insurance premiums, capital requirements
and the Dodd-Frank Wall Street Reform and Consumer Protection Act
(the “Dodd-Frank Act”); (x) changes in key management; (xi)
competition in our banking, broker-dealer, and mortgage origination
segments from other banks and financial institutions as well as
investment banking and financial advisory firms, mortgage bankers,
asset-based non-bank lenders and government agencies; (xii) legal
and regulatory proceedings; (xiii) risks associated with merger and
acquisition integration; and (xiv) our ability to use excess
capital in an effective manner. 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/20250130136611/en/
Investor Relations Contact: Matt Dunn 214-525-4636
mdunn@hilltop.com
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