NYSE$HTH

Hilltop Holdings Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Hilltop's financial performance significantly improved, driven by growth in net income and earnings per share.

Hilltop Holdings reported a strong first quarter in 2021, marked by significant growth in net income and diluted earnings per share. The company benefited from increased mortgage origination volume and gain-on-sale margins, as well as a reversal of provision for credit losses. Strong capital levels were maintained, and book value per share saw substantial growth.

  • Net income increased to $120.3 million, reflecting a substantial rise from the previous year.
  • Earnings per share (EPS) diluted rose to $1.46, showcasing strong profitability.
  • Mortgage origination volume increased by 71% compared to Q1 2020, contributing to revenue growth.
  • A $5.1 million reversal of provision for credit losses boosted banking pre-tax income.

Headline financials

Total Revenue

$523M

Previous: $382M+37.0%
EPS (adj)

$1.46

Previous: $0.51+186.3%
Tier 1 Leverage Ratio

13.0%

Previous: 13.0%-0.2%
Common Equity Tier 1 Capital Ratio

19.6%

Previous: 16.0%+23.0%
Free Cash Flow

$120M

Previous: $49.6M+142.5%
Net Income

$120M

Previous: $49.6M+142.5%
Operating Income

$474M

Previous: $327M+45.1%
Gross Profit

$523M

Previous: $382M+37.0%
Cash & Equivalents

$1.56B

Previous: $524M+198.4%
Total Assets

$17.7B

Previous: $15.7B+12.6%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$523M

Q1 2021+37%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
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 expected performance for the full year 2021, including loan and deposit growth, net interest income, noninterest income, noninterest expense, provision expense, and effective tax rate.

Tailwinds

  • Expects 0-3% HFI loan growth.
  • Deposit growth expected to align with loan growth, excluding PPP and government stimulus.
  • Deposit costs expected to improve slowly as Consumer CDs mature and reset.
  • Non-variable expenses to remain stable with 2020 levels.
  • Variable expenses will follow revenue contribution from fee businesses.

Headwinds

  • Loan yields expected to remain under pressure, excluding accelerated PPP fees.
  • Purchase accounting accretion expected to decline by >40% versus 2020 levels.
  • Gain on Sale margins pressured as volumes decline across the industry, expecting FY Average margin of 360 – 385 bps.
  • Provision expense expected to be elevated in the second half of the year as charge-offs expected to increase.
  • Mortgage volume shifting to a “purchase” focused market during last three quarters of 2021

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 2021

Historical avgQ1 2021

-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%

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