NYSE$HTH

Hilltop Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Hilltop's financial performance was driven by record mortgage origination, enhanced securities business results, and stable bank credit performance.

Hilltop Holdings Inc. reported strong financial results for the third quarter of 2020, with income from continuing operations to common stockholders reaching $152.5 million, or $1.69 per diluted share. The results reflect a significant increase in mortgage origination segment net gains and stable credit performance at the bank.

  • Net gains from sale of loans and other mortgage production income increased by 96.0% to $307.9 million.
  • Mortgage loan origination production volume was $6.5 billion, compared to $4.8 billion in the third quarter of 2019.
  • The provision for credit losses was a reversal of $(0.6) million.
  • HilltopSecurities generated $149 million of net revenue and a 24% pre-tax margin.

Headline financials

Total Revenue

$605M

Previous: $455M+33.0%
EPS (adj)

$1.69

Previous: $0.86+96.5%
Return on average assets

3.7%

No prior period
Net interest margin

2.6%

No prior period
Tier 1 Leverage Ratio

13.0%

No prior period
Common Equity Tier 1 Capital Ratio

19.9%

No prior period
Free Cash Flow

$153M

Previous: $79.4M+93.0%
Net Income

$153M

Previous: $79.4M+93.0%
Operating Income

$547M

Previous: $360M+51.8%
Gross Profit

$605M

Previous: $440M+37.4%
Cash & Equivalents

$1.28B

Previous: $326M+291.8%
Total Assets

$16.9B

Previous: $14.8B+14.1%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$605M

Q3 2020+33%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Hilltop · $506M total across 3 segments · Q3 2020

  • Mortgage Origination
    $355M
  • Broker-Dealer
    $141M
  • Banking
    $9.82M

Forward guidance

The COVID-19 pandemic is expected to continue to have implications on Hilltop's business and operations for the remainder of 2020.

Headwinds

  • Broader adverse implications of COVID-19 on customers and clients.
  • Potential further disruption and deterioration in the financial services industry, including the mortgage servicing and commercial paper markets.
  • Additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic.
  • Uncertainty in the progression of COVID-19 related loan modifications into non-performing loans during future periods.
  • Changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil.

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 Q3 2020

Historical avgQ3 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%

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