NYSE$HTH

Hilltop Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Hilltop Holdings' financial performance increased in Q3 2023, driven by growth in net income and EPS.

Hilltop Holdings reported a net income of $37 million and EPS of $0.57 for Q3 2023. The results reflect an increase compared to the previous quarter, driven by improved revenues from sweep deposits offsetting challenging fixed income markets.

  • PlainsCapital Bank generated $53.2 million in pre-tax income, but net interest margin decreased slightly.
  • PrimeLending experienced an $8.2 million pre-tax loss, but non-interest expense declined significantly.
  • HilltopSecurities generated a pre-tax income of $21.6 million, driven by improved revenues from sweep deposits.
  • Consolidated net revenue increased by $4.5 million year-over-year, benefiting from higher short-term interest rates.

Headline financials

Total Revenue

$312M

Previous: $330M-5.4%
EPS (adj)

$0.57

Previous: $0.50+14.0%
Free Cash Flow

$37M

Previous: $32.1M+15.5%
Net Income

$37M

Previous: $32.1M+15.5%
Operating Income

$199M

Previous: $275M-27.6%
Gross Profit

$312M

Previous: $330M-5.2%
Cash & Equivalents

$1.51B

Previous: $1.78B-14.8%
Total Assets

$16.4B

Previous: $16.6B-1.3%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$312M

Q3 2023-5.4%vs Q3 2022
Beat estimate in 10 of 14 quarters(71%)
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 its outlook for the full year 2023, including expectations for loan and deposit growth, net interest income, noninterest income and expense, provision expense, and effective tax rate.

Tailwinds

  • Full year average bank loan growth 2% – 4% (excluding retained mortgages from PrimeLending and mortgage warehouse lending)
  • NII growth 2% – 5% driven by higher interest rates
  • Mortgage gain on sale margins full year average 195 – 205 bps (third party sales)
  • Broker Dealer fees increase 10% – 15%
  • Non-variable expenses decrease 5% – 7%

Headwinds

  • Full year average total deposits to decline 7% to 10%
  • Outlook assumes Fed Funds rate peaks during second half 2023
  • Deposit betas 60 – 70% (through the cycle)
  • Full year mortgage origination volume $8 – $9 billion
  • Full year provision/ total loans HFI: 20 – 30 basis points

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 2023

Historical avgQ3 2023

-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