NYSE$HTH

Hilltop Holdings Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Hilltop reported strong Q4 results driven by mortgage origination segment and record earnings.

Hilltop Holdings Inc. announced strong financial results for the fourth quarter and full year 2020, marked by a significant increase in mortgage origination segment net gains from sale of loans and other mortgage production income. The company's income from continuing operations to common stockholders was $112.7 million, or $1.30 per diluted share, for the fourth quarter of 2020, compared to $43.7 million, or $0.48 per diluted share, for the fourth quarter of 2019.

  • Income from continuing operations to common stockholders increased to $112.7 million, or $1.30 per diluted share.
  • Mortgage origination segment net gains from sale of loans and other mortgage production income significantly increased.
  • Mortgage loan origination production volume was $6.8 billion.
  • The Board of Directors declared a quarterly cash dividend of $0.12 per common share, a 33% increase from the prior quarter.

Headline financials

Total Revenue

$107M

Previous: $111M-3.5%
EPS (adj)

$1.30

Previous: $0.54+140.7%
Return on average assets

2.8%

Previous: 1.4%+102.1%
Net interest margin

2.7%

Previous: 3.3%-17.9%
Tier 1 Leverage Ratio

12.6%

Previous: 12.7%-0.6%
Common Equity Tier 1 Capital Ratio

19.0%

Previous: 16.7%+13.7%
Net Income

$121M

Previous: $51.7M+133.8%
Operating Income

$117M

Previous: $66.7M+75.5%
Cash & Equivalents

$1.06B

Previous: $643M+65.3%
Total Assets

$16.9B

Previous: $15.2B+11.6%

Revenue & EPS history

Hilltop · Revenue · Quarterly

$107M

Q4 2020-3.5%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Hilltop · $107M total across 5 segments · Q4 2020

  • Banking
    $106M+11.4%
  • Broker-Dealer
    $8.91M-33.2%
  • Eliminations
    $3.59M-34.5%
  • Corporate
    -$4.71M-214.8%
  • Mortgage Origination
    -$6.84M-233.9%

Forward guidance

Hilltop believes it is well-positioned with established businesses, synchronized leadership, and robust capital as they embark upon 2021. The dividend increase and share repurchase authorization demonstrate the strength and momentum of the franchise.

Tailwinds

  • Established businesses
  • Synchronized leadership
  • Robust capital
  • Dividend increase
  • Share repurchase authorization

Headwinds

  • COVID-19 pandemic impact on financial markets
  • COVID-19 impact on overall economic conditions
  • Adverse implications of COVID-19 on customers and clients
  • Potential disruption in the financial services industry
  • Extended government orders and regulations in response to the pandemic

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 Q4 2020

Historical avgQ4 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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