NYSE$HTH

Hilltop Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hilltop's financial performance was marked by a net income of $29.7 million, driven by growth in noninterest income and efficient expense management.

Hilltop Holdings reported a net income of $29.7 million, with diluted EPS at $0.46. The company saw growth in noninterest income and managed to keep noninterest expenses in check. PlainsCapital Bank generated $48.1 million in pre-tax income, while PrimeLending incurred an $8.7 million pre-tax loss. HilltopSecurities generated pre-tax income of $17.0 million.

  • PlainsCapital Bank's pre-tax income was $48.1 million.
  • PrimeLending experienced an $8.7 million pre-tax loss, impacted by a negative valuation adjustment from the sale of MSR value.
  • HilltopSecurities generated $17.0 million in pre-tax income with a pre-tax margin of 13.7%.
  • Company returned $11.0 million to stockholders through dividends.

Headline financials

Total Revenue

$305M

Previous: $312M-2.2%
EPS

$0.46

Previous: $0.57-19.3%
Return on average assets

0.8%

No prior period
Capital Expenditures

-$1.83M

No prior period
Free Cash Flow

$29.7M

Previous: $37M-19.8%
Net Income

$29.7M

Previous: $37M-19.8%
Operating Income

$164M

Previous: $199M-17.6%
Gross Profit

$304M

Previous: $312M-2.6%
Cash & Equivalents

$1.96B

Previous: $1.51B+29.6%
Total Assets

$15.9B

Previous: $16.4B-2.9%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$305M

Q3 2024-2.2%vs Q3 2023
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 2024 outlook, including expectations for bank loan and deposit growth, net interest income, noninterest income and expense, provision expense, and the effective tax rate.

Tailwinds

  • Full year average Bank deposits expected to increase 3% – 5%.
  • Mortgage origination noninterest income – expected to remain relatively stable with prior year.
  • Mortgage origination volume $8 – $9 billion.
  • Broker Dealer fees increase driven by Structured Finance.
  • Non-variable expenses decline 1% – 3%.

Headwinds

  • Full year average Bank loans (excluding retained mortgages and mortgage warehouse lending) to decline modestly (0% – 2%).
  • Migration of NIB deposits expected to continue into IB products.
  • Expecting NIB to comprise 25% – 28% of total deposits at year-end 2024.
  • NII decline of 9% – 11% driven by higher average deposits costs in 2024.
  • Full year provision / average loans HFI: 15 – 25 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 2024

Historical avgQ3 2024

-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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