NYSE$HTH

Hilltop Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Hilltop's performance was driven by diversified growth and managed risk during the first quarter of 2020.

Hilltop Holdings reported a net income of $28.1 million and EPS of $0.51. Mortgage origination volume grew by 48% compared to the same quarter in the prior year. The Broker-Dealer segment reported a pre-tax margin of 18.3%.

  • Net charge-offs in Q1 2020 equated to $1.5 million, or 9 basis points of average loans HFI.
  • Mortgage origination volume of $3.6 billion in Q1 2020 grew by $1.2 billion, or 48%, compared to the same quarter in the prior year as rates declined.
  • The Broker-Dealer segment reported a pre-tax margin of 18.3% compared to 15.8% during the first quarter 2019 as Fixed Income and Wealth Management businesses partially offset a decline in Structured Finance revenues.
  • Book value per share at March 31, 2020 grew by 12% versus March 31, 2019 to $23.71, and tangible book value per share increased 12% during the same period to $20.16.

Headline financials

Total Revenue

$382M

Previous: $361M+5.7%
EPS (adj)

$0.51

Previous: $0.41+24.4%
Return on average assets

0.9%

No prior period
Tier 1 Leverage Ratio

13.0%

No prior period
Common Equity Tier 1 Capital Ratio

16.0%

No prior period
Free Cash Flow

$49.6M

Previous: $38.8M+28.0%
Net Income

$49.6M

Previous: $38.8M+28.0%
Operating Income

$327M

Previous: $272M+20.3%
Gross Profit

$382M

Previous: $346M+10.3%
Cash & Equivalents

$524M

Previous: $313M+67.4%
Total Assets

$15.7B

Previous: $13.5B+15.9%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$382M

Q1 2020+5.7%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Hilltop · $176M total across 3 segments · Q4 2022

  • Broker-Dealer
    $92.8M
  • Mortgage Origination
    $71.4M
  • Banking
    $11.9M

Forward guidance

Hilltop Holdings provided commentary on loan growth, deposit growth, net interest income, noninterest income, noninterest expense, provision expense and effective tax rate for 2020.

Tailwinds

  • PPP loan originations expected to provide majority of loan growth
  • Commercial loan pipelines remain solid, clients delaying pricing and funding until further economic clarity emerges
  • Deposit inflows expected to remain positive
  • Non-variable expenses to remain stable

Headwinds

  • Suspending the retention of single family mortgage loans at PlainsCapital Bank
  • Purchase accounting accretion expected to decline by 20 - 30% versus 2019 levels
  • Negative impact on annualized Net Interest Income from falling rates and relatively flat yield curve
  • Normalization of mortgage origination volumes once pandemic restrictions are removed, economic certainty can be assessed and citizens are comfortable that they can safely evaluate homes
  • Expect further increases in credit reserves pursuant to changes in economic outlook

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+17.4%

Q3 2013

Best reaction

-11.3%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%-0.8%-2.0%
Q4 2025+2.2%+6.6%+1.7%
Q3 2025+4.6%+0.1%+4.6%
Q2 2025-2.4%+0.8%+5.7%
Q1 2025-1.1%+0.8%+1.1%
Q4 2024-0.5%+8.3%+7.3%
Q3 2024+2.5%+1.5%+5.6%
Q2 2024-6.3%-5.2%-5.1%
Q1 2024+4.4%+5.1%+10.5%
Q4 2023-1.5%-3.7%-9.4%
Q3 2023-1.3%-2.0%+10.3%
Q2 2023-10.9%-7.9%-8.6%
Q1 2023+6.2%+2.7%+4.9%
Q4 2022+7.1%+8.0%+10.4%
Q3 2022+11.6%+14.0%+15.3%
Q2 2022+0.6%+0.5%+1.5%
Q1 2022-11.3%-12.9%+1.5%
Q4 2021-2.7%-6.1%-11.5%
Q3 2021+5.4%+8.5%+0.0%
Q2 2021-1.3%-1.5%+3.6%
Q1 2021+4.5%+3.0%+10.7%
Q4 2020-4.4%-2.4%+5.2%
Q3 2020-2.3%-2.8%+8.7%
Q2 2020+0.6%-0.3%+6.7%
Q1 2020-6.7%-15.6%-3.2%
Q4 2019-6.1%-4.6%-13.6%
Q3 2019+3.1%+5.9%+3.8%
Q2 2019+0.0%+2.4%+1.6%
Q1 2019+3.5%+4.8%+0.6%
Q4 2018-3.6%-3.9%+2.7%
Q3 2018+9.5%+15.6%+11.6%
Q2 2018-4.0%-5.4%-3.9%
Q1 2018-5.6%-8.5%-3.5%
Q4 2017+2.5%-2.2%-6.8%
Q3 2017+0.1%-7.1%-9.3%
Q2 2017+1.5%+1.8%-3.0%
Q1 2017+2.1%-1.2%-8.5%
Q4 2016-0.4%-3.5%-1.1%
Q3 2016-0.3%-0.1%+15.4%
Q2 2016-1.0%-1.7%+0.9%
Q1 2016-1.7%
Q4 2015+2.1%
Q3 2015-1.7%
Q2 2015-6.7%
Q1 2015+1.8%
Q4 2014-2.6%
Q3 2014-5.5%
Q2 2014-0.1%
Q1 2014-3.7%
Q4 2013+1.3%
Q3 2013+17.4%
Q2 2013-4.2%
Q1 2013+6.5%
Q4 2012+1.4%
Q3 2012-1.1%
Q2 2012-0.9%
Q1 2011-1.1%
Q1 2012+0.8%
Q4 2009+4.9%
Q4 2011+4.9%
Q3 2011+2.1%
Q3 2010+2.1%
Q2 2010-9.7%
Q4 2010-9.7%
Q2 2011-9.7%
Q1 2010+0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro